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HomeMy WebLinkAboutAgenda Packet_2026-04-07 DRAFT Minutes of the Regular Meeting of the City Council City of Santa Ana, California March 17, 2026 CLOSED SESSION MEETING – 4:00 P.M. REGULAR OPEN MEETING – 5:30 P.M. (Immediatelyfollowing theClosed Session Meeting) CITY COUNCIL CHAMBER 22 Civic CenterPlazaSanta Ana, CA92701 CLOSED SESSION CALL TO ORDER MINUTES:Mayor AmezcuacalledtheClosedSessionmeeting to order at 4:07 P.M. ATTENDANCE Council Members Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez Thai Viet Phan Benjamin Vazquez Mayor Pro Tem David Penaloza Mayor Valerie Amezcua CityManager Alvaro Nuñez CityAttorneySonia R. Carvalho City ClerkJenniferL.Hall CITY COUNCIL 1 MARCH 17, 2026 ROLL CALL MINUTES:CityClerk Jennifer L. Hall conductedroll call. Councilmembers Bacerra, Phan, and Vazquez, Mayor Pro Tem Penaloza, and Mayor Amezcua were present. Councilmembers Hernandez and Lopez joined during Closed Session. ADDITIONS\\DELETIONS TO CLOSED SESSION MINUTES: None. PUBLIC COMMENTS – Members of the public may address the City Council on Closed Sessionitems. MINUTES: City Clerk Jennifer L. Hall reported out the summary of email comments received: (1) Closed Session Agenda Item No. 2 and there were no in person or teleconference speakers. RECESS – City Councilwill recess to Closed Sessionfor the purpose of conducting regularCity business. MINUTES:Mayor Amezcua recessedto consider theClosedSessionitemsat 4:08P.M. CLOSED SESSION ITEMS – The Brown Act permits legislative bodies to discuss certain matterswithoutmembers of the public present. The City Council finds, based on advice from the City Attorney, that discussion inopensession of the following matters will prejudice theposition 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. Frank Rocha v. City of Santa Ana, WCAB Case No.: ADJ15955468; ADJ18623576; ADJ17697034 B. Stephen Hahm v. City of Santa Ana, WCAB Case No.: ADJ19377542; ADJ19377509; ADJ19885630 2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: A. Anthony Cardenal v. City of Santa Ana, Orange County Superior Court Case No. 30-2022-01293127 B. John Kachirisky v. City of Santa Ana, Orange County Superior Court Case No. 30-2023-01348299 C. Nelson Menendez v. City of Santa Ana, Orange County Superior Court Case No. 30-2023-01339537 CITY COUNCIL 2 MARCH 17, 2026 D. Manuel Moreno v. City of Santa Ana, Orange County Superior Court Case No. 30-2024-01372127 E. Rita Ramirez v. City of Santa Ana, Orange County Superior Court Case No. 30-2022-01287702 F. Judith Valdez v. City of Santa Ana, Orange County Superior Court Case No. 30-2023-01359457 3. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Peter Brown Employee Organizations: 1. Service Employees International Union, Full-Time Employees Unit (SEIU- FT) 2. Service Employees International Union, Part-Time Non-Civil Service Employees Unit (SEIU-PTNCS) RECONVENE – City Council will reconvene to continue regularCitybusiness. CITY COUNCIL REGULAR OPEN SESSION CALL TO ORDER MINUTES:Mayor Amezcuareconvened the CityCouncil Meeting to order at 5:50 P.M. ATTENDANCE Councilmembers Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez ThaiVietPhan Benjamin Vazquez Mayor ProTem David Penaloza Mayor ValerieAmezcua City ManagerAlvaro Nuñez City AttorneySoniaR.Carvalho City Clerk Jennifer L. Hall ROLL CALL MINUTES:City Clerk Jennifer L. Hall conducted roll call. Councilmembers Bacerra, Hernandez, Lopez (arrived at 5:56 P.M.), Phan, and Vazquez, Mayor Pro Tem Penaloza, and Mayor Amezcua were present. PLEDGE OF ALLEGIANCE Julia Mesquita WORDS OF INSPIRATIONRev. Derrell Durley, Brown Temple CITY COUNCIL 3 MARCH 17, 2026 ADDITIONS\\DELETIONS TO THE AGENDA MINUTES: City Clerk Jennifer L. Hall announced the removal of Agenda Item Nos. 16 and 18 from Council consideration and the cancellation of Public Hearing Agenda Item No. 23. CEREMONIAL PRESENTATIONS AGENDA ITEM NO. 1 WAS MOVED OUT OF ORDER AND HEARD AFTER AGENDA ITEM NO. 4. 2. Certificates of Recognition presented by Mayor Amezcua to the Santiago TK– 8 Elementary School Drama Program for Outstanding Performance Achievements and Contributions to the Arts Community MINUTES: Mayor Amezcua presented certificates of recognition to the Santiago TK-8 Elementary School Drama Program for outstanding performance achievements and contributions to the arts community. 3. Certificates of Recognition presented by Councilmember Bacerra to Segerstrom High School Girls’ Soccer Team for Outstanding Athletic Achievements MINUTES: Councilmember Bacerra presented certificates of recognition to Segerstrom High School Girls’ Soccer Team for outstanding athletic achievements. 4. Certificates of Recognition presented by Councilmember Vazquez to Valley High School Women’s Volleyball Team in Honor of Women’s History Month MINUTES: Councilmember Vazquez presented certificates of recognition to Valley High School Women’s Volleyball Team in honor of Women’s History Month. AGENDA ITEM NO. 1 MOVED OUT OF ORDER 1. Proclamation presented by Councilmember Lopez to Lupe Lopez declaring May 2026 as Murdered and Missing Indigenous Women Month MINUTES: Councilmember Lopez presented a proclamation to Lupe Lopez declaring May 2026 as Murdered and Missing Indigenous Women Month. STAFF PRESENTATIONS 5. Public Works Agency – Priority Projects Update MINUTES: Acting Public Works Director Rodolfo Rosas provided a presentation regarding Public Works Agency – Priority Projects Update. Councilmember Bacerra thanked staff for the presentation. CITY COUNCIL 4 MARCH 17, 2026 Councilmember Hernandez thanked staff for the presentation and the City Manager’s Office for their dedication to kick-starting the upgrades at El Salvador Park. Councilmember Vazquez thanked staff for their hard work on all of the projects. Councilmember Penaloza asked for clarification regarding utility poles along Bristol Street. Acting Director Rosas provided an update regarding the expected completion date for the work on utility poles along Bristol Street. Mayor Amezcua thanked staff for all their hard work and efforts in completing City projects. CLOSED SESSION REPORT – The City Attorney will report on any action(s) from Closed Session. MINUTES: City Attorney Sonia Carvalho reported for Closed Session Item No. 1A, Frank Rocha v. City of Santa Ana, the City Council voted 7-0 to settle the case for $169,482. PUBLIC COMMENTS – Public comments will be held during the beginning of the meeting forALLcomments on agenda and non-agenda items. MINUTES:City Clerk Jennifer L. Hall reported out the summary of email comments received: (28) non-agenda comments. Thefollowingspeakersaddressed CityCouncil in-person: 1. Manuel Avila spoke regarding success and funding. 2. Jocelyn Pacheco demanded justice for Noe Rodriguez and spoke regarding Noe Rodriguez, Henry Gonzalez, and Mario Diaz’s incidents. 3. Matthew Compton demanded justice for Noe Rodriguez, spoke regarding Noe Rodriguez’s incident, an altercation with a Santa Ana police officer, and Councilmember Bacerra’s comments related to the Coach Royal Mobile Home Park tenant eviction. 4. David Pulido demanded justice for Noe Rodriguez, spoke regarding Noe Rodriguez, Mario Diaz, and Freddy Washington’s incidents, and requested accountability and transparency. 5. Abraham Quintana demanded justice for Noe Rodriguez, spoke regarding Noe Rodriguez and Freddy Washington’s incidents, and requested accountability and transparency and an increased budget for the Police Oversight Commission. CITY COUNCIL 5 MARCH 17, 2026 6. Jair spoke regarding working together to combat evil, accountability for police officer actions, and the Coach Royal Mobile Home Park tenantseviction. 7. Stef Pacheco demanded justice for Noe Rodriguez, spoke regarding Noe Rodriguez, Henry Gonzalez, Freddy Washington, and Mario Diaz’s incidents, and requested accountability. 8. Grace Arzola spoke in support of the families who have lost a loved one at the hands of police officers and requested the Council maintain decorum when listening to their constituent’s public comments. 9. Dale Helvig spoke regarding the special event policy and public records requested related to the policy. 10. Rain Mendoza spoke regarding the Coach Royal Mobile Home Parks tenant eviction and Santa Ana Police officers, and requested Council help address the eviction situation. 11. Diana Terreros spoke regarding the Coach Royal Mobile Home Parks tenant eviction and requested justice for Noe Rodriguez. 12. Karla Barragan spoke regarding the Coach Royal Mobile Home Parks tenant eviction and requested Council assist regarding the eviction. 13. Victor Mendez suggested a conduct policy for property managers and enforcement along First Street, and spoke regarding the status of the East First Street Project. The following speaker addressed City Council via teleconference: 14. Mark Lopez spoke regarding the Pacific Park community advisory team, red zone parking in downtown, and code enforcement of street food vendors. Mayor Amezcua asked the city attorney to address the Coach Royal Mobile Home Park situation. City Attorney Sonia Carvalho acknowledged residents’ concerns and stated the City is actively enforcing the ordinance, with an anticipated hearing in late April regarding the 17 petitions received. She encouraged residents to seek assistance through the State’s Housing and Community Development (HDC) program, and reiterated staff’s commitment to the voter-approved process and ongoing enforcement efforts. Mayor Amezcua requested HDC program information be placed on the City’s website for mobile home residents to access. CITY COUNCIL 6 MARCH 17, 2026 CONSENT CALENDAR RECOMMENDEDACTION: Approve staff recommendations on the following ConsentCalendarItems: 6 through 22and waive reading of all resolutions and ordinances. MINUTES: At 7:55 P.M., the Consent Calendar was considered. Councilmember Bacerra pulled Agenda Item Nos. 11 and 14 for separate discussion and consideration. Councilmember Lopez pulled Agenda Item No. 8 for separate discussion and consideration. MOTION: Councilmember Hernandez moved to approve Consent Calendar Item Nos. 6 through 22, with the exception of Agenda Item Nos. 8, 11, and 14 pulled for separate discussion and consideration and Agenda Item Nos. 16 and 18 removed from consideration, seconded by Councilmember Vazquez. The motion carried, 7-0, by the following roll call vote: AYES:COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ, MAYOR PRO TEM PENALOZA, MAYOR AMEZCUA NOES: NONE ABSTAIN:NONE ABSENT: NONE Status:7 –0 – Pass 6. Excused Absences Department(s): City Clerk’s Office Recommended Action: Excuse the absent members. 7. Minutes from the Regular Meeting of March 3, 2026 Department(s): City Clerk’s Office Recommended Action: Approve minutes. CITY COUNCIL 7 MARCH 17, 2026 8. Ballot Measure Polling Results Department(s): City Manager’s Office Recommended Action: Direct staff to prepare public information materials, develop a November 2026 ballot measure for City Council consideration, and conduct a tracking survey. MINUTES: Councilmember Lopez requested a special session on the item to allow for transparency to the community regarding the City’s budget and requested staff return with a revised proposed budget reflecting the removal of $30 million and its impacts. Mayor Amezcua requested the item be explained. City Manager Alvaro Nuñez explained the item was brought forward to prepare a ballot measure, initiate updates, and begin providing preliminary informational materials to the community. Councilmember Phanrequested a presentation on the item. Assistant City Manager Kathryn Downs provided a presentation regarding the ballot measure polling results. Mayor Amezcua inquired regarding staff’s plan when bringing back budget plans to Council. Councilmember Bacerra requested a presentation with Measure X not being a part of the City’s budget and its full impact during the budget process as opposed to a standalone meeting. Councilmember Phanasked what materials would be prepared and what is permissible for Council and staff in terms of advocating for ballot measures, and requested the City provide a budget presentation at a time that would allow for greater community attendance. Assistant City Manager Downs stated the item is to prepare informational materials for the public and the Council, and a possible measure ballot. City Attorney Sonia Carvalho explained the advocating ballot measure terms. Mayor Amezcua reiterated the item is only to prepare materials, and whether the measure passes is up to the voters. Councilmember Bacerra requested staff also include information on the City’s economic development strategic plan concurrent with the Measure X budget presentation. CITY COUNCIL 8 MARCH 17, 2026 Councilmember Vazquezspoke regarding economic development. MOTION: Councilmember Vazquezmoved to approve the recommended action for Agenda Item No. 8, seconded by Mayor Amezcua. The motion carried, 5-2, by the following roll call vote: AYES:COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ, MAYOR AMEZCUA NOES: COUNCILMEMBER LOPEZ, MAYOR PRO TEM PENALOZA ABSTAIN:NONE ABSENT:NONE Status:5 –2 – Pass 9. Purchase Order Contract to Southern Computer Warehouse, Inc. for Computer Tablets for Police Motorcycles (Specification No. 26-006) (General Fund) Department(s): Police Department Recommended Action: Authorize a Purchase Order to Southern Computer Warehouse, Inc. for mobile data refresh for Police motorcycles, in an amount not to exceed $175,091. 10. Aggregate Purchase Order Contracts to Classic Collision Santa Ana and Kelly’s Body Shop Inc. for Vehicle Body Repair Services (Spec No. 25-139) (Non-General Fund) Department(s): Public Works Agency Recommended Action: Award aggregate purchase order contracts to Classic Collision Santa Ana and Kelly’s Body Shop, Inc. for vehicle body repair services for $500,000, for the term beginning March 17, 2026 and expiring March 16, 2027, with provisions for four, one-year renewals, in a total aggregate amount not-to-exceed $2,500,000. 11. Pre-Authorization of Purchase Order Contracts for Various City Vehicles (Spec No. 25-133) (General & Non-General Fund) Department(s): Public Works Agency Recommended Action: 1. Approve an appropriation adjustment to recognize $574,594 of prior-year fund balance in the Refuse Collection Revenue, Prior Year Carryforward revenue account and appropriate the same amount to the Refuse Collection Service, Machinery & Equipment expenditure account(Requires five affirmative votes). CITY COUNCIL 9 MARCH 17, 2026 2. Approve an appropriation adjustment to recognize $574,594 of prior-year fund balance in the Federal Clean Water Protection Enterprise, Prior Year Carryforward revenue account, and appropriate to the Federal Clean Water Protection Enterprise, Machinery & Equipment expenditure account (Requires five affirmative votes). 3. Approve an appropriation adjustment to recognize $684,952 of prior-year fund balance in the Special Gas Tax Fund, Prior Year Carryforward revenue account, and appropriate to the Roadway Maintenance, Machinery & Equipment expenditure account(Requires five affirmative votes). 4. Approve an appropriation adjustment to recognize $68,250 of prior-year fund balance in the Equipment Maintenance-Garage Operation, Prior Year Carryforward revenue account, and appropriate to the Equipment Maintenance- Garage Operation, Machinery & Equipment expenditure account (Requires five affirmative votes). 5. Pre-authorize the City Manager to issue purchase orders for various City vehicles described herein for the Fiscal Year 2025-26, in a total amount not-to- exceed $7,305,578. MINUTES: Councilmember Bacerra requested to include an in-custody transportation vehicle for the Quality of Life Team (QOLT) for more efficiency in calls for service within the community. MOTION: Councilmember Bacerra moved to approve the recommended action for Agenda Item No. 11, as amended to include an in-custody transportation vehicle for QOLT,seconded by Councilmember Hernandez. The motion carried, 7-0, by the following roll call vote: AYES:COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ, MAYOR PRO TEM PENALOZA, MAYOR AMEZCUA NOES: NONE ABSTAIN:NONE ABSENT:NONE Status:7 –0 – Pass 12. Agreements with Commonwealth Land Title Company and Chicago Title Company for On-Call Real Estate Title and Escrow Services (Non-General Fund) Department(s): Public Works Agency CITY COUNCIL 10 MARCH 17, 2026 Recommended Action: Award and authorize the City Manager to execute agreements with Chicago Title Company and Commonwealth Land Title Company to provide on-call real estate title and escrow servicesfor the term beginning March 17, 2026 and expiring March 16, 2027 for a total amount of $60,000, with provisions for four, one-year renewals, in a total aggregate amount not-to-exceed $300,000 (Core Agreement No. A-2026-028). 13. Agreement for Legal Counsel Services with Meyers Nave, APC (General Fund) Department(s): City Attorney’s Office Recommended Action:Authorize the City Manager to execute a legal services agreement with the law firm of Meyers Nave, APC for appellate and litigation legal services for the period of March 17, 2026 until March 16, 2028, with an option to extend for up to one year, in an amount not to exceed $300,000 (Agreement No. A-2026-029). 14. Agreement with Am-Tec Total Security, Inc. for the Santa Ana Zoo Video Surveillance Project (Specification No. 25-082) (General Fund) (Cannabis Public Benefit Fund) Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize the City Manager to execute an agreement with Am-Tec Total Security, Inc. to provide the Santa Ana Zoo Video Surveillance Project in an amount not to exceed $231,138, for a three-year term beginning March 17, 2026 and expiring March 31, 2029, with provisions for two, one-year extensions (Agreement No. A-2026-030). MINUTES: Councilmember Bacerra spoke in support of the item and requested staff include funding in the upcoming budget to support active video monitoring along the Alton Bike Corridor. MOTION: Councilmember Bacerra moved to approve the recommended action for Agenda Item No. 14, seconded by Councilmember Hernandez. The motion carried, 6-0-0-1, by the following roll call vote: AYES:COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER VAZQUEZ, MAYOR PRO TEM PENALOZA,MAYOR AMEZCUA NOES: NONE ABSTAIN:NONE ABSENT:COUNCILMEMBER PHAN Status:6 –0 – 0 –1 – Pass CITY COUNCIL 11 MARCH 17, 2026 15. Memorandum of Understanding Establishing the Terms and Conditions of Employment for Classifications Represented by the Service Employees International Union Local 721, Part-Time Non-Civil Service Employee Unit Department(s): Human Resources Recommended Action:Authorize the City Manager to execute a Memorandum of Understanding with the Service Employees International Union Local 721, Part- Time Non-Civil Service Employee Unit (“SEIU PTNCS”) regarding wages, hours, and other terms and conditions of employment effective May 16, 2025 through December 31, 2025 (Agreement No. A-2026-031). AGENDA ITEM NO. 16 WAS REMOVED FROM CONSIDERATION 16.Revised Memorandum of Understanding Establishing the Terms and Conditions of Employment for Classifications Represented by the Santa Ana Police Officers Association (POA) Department(s): Human Resources Recommended Action: Authorize the City Manager to execute a revised Memorandum of Understanding (MOU) between the City of Santa Ana and the Santa Ana Police Officers Association (POA) for the period of January 1, 2024 through June 30, 2027, modifying and delineating specific articles of the MOU (Agreement No. A-2026-XXX). 17. Resolution Retroactively Approving Corrected Salary Schedules for the Santa Ana Police Management Association (“PMA”) Department(s): Human Resources Recommended Action: Adopt a Resolution to retroactively update Salary Schedule for PMA as requested by California Public Employees’ Retirement System (CalPERS), and in compliance with CalPERS California Code of Regulations (CCR) Title 2, Section 570.5. RESOLUTION NO. 2026-005 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO EFFECT CERTAIN CHANGES TO THE CITY’S CLASSIFICATION AND COMPENSATION PLAN AGENDA ITEM NO. 18 WAS REMOVED FROM CONSIDERATION 18. Resolution Amending the Classification and Compensation Plan for Classifications of Employment Designated as Unrepresented Executive Management Department(s): City Manager’s Office CITY COUNCIL 12 MARCH 17, 2026 Recommended Action: Adopt a resolution that amends the City’s Classification and Compensation Plan for classifications of employment designated as unrepresented Executive Management (EM) to update benefits and provide for future salary range adjustments. RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA RESTATING AND AMENDING THE CITY’S CLASSIFICATION AND COMPENSATION PLAN FOR CLASSIFICATIONS DESIGNATED AS UNREPRESENTED EXECUTIVE MANAGEMENT (EM) 19. Resolution Acknowledging Judgment in a Case Challenging the Rent Stabilization and Just Cause Eviction Ordinance Department(s): City Clerk’s Office Recommended Action: Adopt a resolution acknowledging judgment and order by the Court tosever the last sentence of Section 8-3180(a) of the Santa Ana Municipal Code, as provided in Ordinance No. NS-3073, establishing the composition of the Rental Housing Board. RESOLUTION NO. 2026-006 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACKNOWLEDGING JUDGMENT IN CASE CHALLENGING THE RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCE 20. Application for the State of California Department of Housing and Community Development Prohousing Incentive Program Grant Funds Department(s): Community Development Agency Recommended Action: 1. Adopt a Resolution authorizing the City Manager to apply for up to $1.42 million in grant funding from the State of California Department of Housing and Community Development (HCD) Prohousing Incentive Program. RESOLUTION NO. 2026-007 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING APPLICATION FOR, AND RECEIPT OF, PROHOUSING INCENTIVE PROGRAM FUNDS 2. If awarded Prohousing Incentive Program grant funding from HCD, authorize the City Manager to execute an agreement with the State of California for receipt of the Prohousing Incentive Program grant funding for an amount up to $1.42 million, and any other documents required by HCD to secure the grant, approved as to form by the City Attorney. CITY COUNCIL 13 MARCH 17, 2026 21. Second Reading and Adoption of Zoning Ordinance Amendment No. 2026-01 to Amend Portions of Chapter 41 (Zoning) of the Santa Ana Municipal Code Relating to Smoke Shops First reading March 3, 2026 City Council Meeting and approved by a vote of (7-0). Legal notice published in the OC Reporter on March 6, 2026. Department(s): Planning and Building Agency Recommended Action: 1. Conduct a second reading and adopt an ordinance approving Zoning Ordinance Amendment No. 2026-01 to amend several sections of Chapter 41 (Zoning) of the Santa Ana Municipal Code (SAMC) relating to definitions, location, permitting, development standards, and operational requirements for smoke shop establishments; and ORDINANCE NO. NS-3091 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING PORTIONS OF CHAPTER 41 (ZONING) OF THE SANTA ANA MUNICIPAL CODE RELATING TO SMOKE SHOP ESTABLISHMENTS AND FINDING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER STATE CEQA GUIDELINES SECTION 15060(c)(2), SECTION 15060(c)(3), AND SECTION 15061(b)(3) 2. Determine that, pursuant to the California Environmental Quality Act (CEQA), the project is exempt from CEQA pursuant to sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the CEQA Guidelines. 22. Second Reading and Adoption of Ordinance Amendment Application (AA) No. 2025- 02 for the Santa Ana Zoo Overflow Parking Lot Rezone (1801 East Chestnut Avenue) First reading March 3, 2026 City Council Meeting and approved by a vote of (7-0). Legal notice published in the OC Reporter on March 6, 2026. Department(s): Public Works Agency, Planning and Building Agency Recommended Action: Conduct a second reading and adopt an ordinance approving Amendment Application No. 2025-02. ORDINANCE NO. NS-3092 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2025- 02 TO CHANGE THE ZONING DESIGNATION FOR THE PROPERTY LOCATED AT 1801 EAST CHESTNUT AND RECOGNIZED AS ASSESSOR PARCEL NUMBER 402-212-01 FROM GENERAL AGRICULTURAL (A-1) TO GENERAL COMMERCIAL (C-2) **END OF CONSENT CALENDAR** CITY COUNCIL 14 MARCH 17, 2026 PUBLIC HEARING PUBLIC HEARING AGENDA ITEM NO. 23 WAS CANCELLED AND REMOVED FROM CONSIDERATION 23. Public Hearing - Consider Proposed Water and Sewer Rate Adjustments in Accordance with Proposition 218 (Non-General Fund) Legal notice published in the OC Reporter on March 6, 2026. Mailed notices sent on January 23, 2026. Department(s): Public Works Agency Recommended Action:Conduct a public hearing in accordance with the requirements of Proposition 218 and adopt a resolution to adjust City water and sewer rates effective May 1, 2026; July 1, 2027; July 1, 2028; July 1, 2029; and July 1, 2030. RESOLUTION NO. 2026- -XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITYOF SANTA ANA ADJUSTING RATES FOR WATER AND SEWER SERVICES PROVIDED BY THE CITY OF SANTA ANA COUNCILMEMBER REQUESTED ITEM 24. Discussand ConsiderProviding Direction to the City Manager to Direct Staff to Review the City’s Standards and Practices for Stop Line Placement Relative to Crosswalks and Evaluate Whether Setback Stop Lines Could Improve Pedestrian Visibility and Safety—Particularly Along the High Injury Network and Near Schools, Parks, and Transit—in Support of the City’s Vision Zero Goals and Consistent with the California Manual on Uniform Traffic Control Devices – Councilmember Lopez MINUTES: Councilmember Lopez gave a brief presentation regarding reviewing the City’s standards and practices for stop line placement relative to crosswalks and evaluating whether setback stop lines could improve pedestrian visibility and safety—particularly along the high injury network and near schools, parks, and transit—in support of the City’s Vision Zero goals and consistent with the California manual on uniform traffic control devices. Councilmember Hernandez spoke in support of the item. Councilmember Vazquez spoke in support of the item. Mayor Pro Tem Penaloza spoke in support of the item. Mayor Amezcua spoke in support of the item, requested a report within 60-90 days, and asked about pedestrian and vehicle fatality rates within the city. CITY COUNCIL 15 MARCH 17, 2026 Deputy Police Chief Roland Andrade reported a total of 34 fatalities and 29 collisions in 2025 andfivefatal collisions this year regarding pedestrian and vehicle fatality rates. Acting Public Works Director Rodolfo Rosas stated the requested item is identified in the City’s Vision Zero Plan, including new projects aimed at improving intersections and staff could report back within 90 days with a comprehensive update on intersection safety and proposed improvements. Councilmember Bacerra voiced concerns regarding a comprehensive report due to the Vision Zero Plan being active and inquired regarding the movement of loop detectors within crosswalks and traffic signals. Acting Director Rosas explained a majority of traffic signals need to be updated with loop detector technology and movement of loops would improve safety at intersections. Mayor Amezcua inquired whether the Police Department had received laptops to assist traffic officers to regulate speeding and, if so, when would they be implemented, and emphasized the need for more traffic officers and glow-in-the- dark stop signs for public safety regarding speeding and racing within the City. Deputy Chief Andrade stated the department received approval for laptops and explained how the department restructured their traffic division to improve traffic related collisions implemented by Police Chief Robert Rodriguez. City Manager Alvaro Nuñez further elaborated on Deputy Chief Andrade’s comments. Councilmember Lopez expressed the importance of public safety regarding the item. RECESS MINUTES: Mayor Amezcua recessed the City Council meeting to convene the Housing Authority meeting at 9:01P.M. RECONVENE MINUTES: Mayor Amezcua reconvened the City Council meeting at 9:03 P.M. CITY MANAGER COMMENTS MINUTES: City Manager Alvaro Nuñez announced the Parks and Recreation hiring fairs for seasonal positions on March 19, 2026 and April 9, 2026 at Jerome Recreation Center, the OC United Way tax preparation event at the Santa Ana Work Center on March 20, 2026, the Santa Ana and Sauyaho Business Expo on March 27-29, 2026, the Apprenticeship Career Fair on April 3, 2026, the Centennial Park park improvements ribbon-cutting on April 4, 2026, CITY COUNCIL 16 MARCH 17, 2026 and the Santa Ana Fun Run on April 11, 2026. COUNCIL COMMENTS AB1234 DISCLOSURE – If the City paid for travel or other expenses this is the time for members of the Councilto provide a brief oral report on attendance of any regional board or commission meeting or any conference, meeting or event attended. MINUTES: Councilmember Vazquezthanked the Pacific Park Neighborhood Association for inviting him to their meeting, announced he is looking forward to the Santa Ana and Sauyaho Business Expo, and invited everyone to come out to his school’s open house in honor of Lisa Solomon, Vicki Sarimento, Sandra De Anda, and Erica Robles on April 2, 2026 at 5:00 P.M. th Councilmember Phan wished everyone a Happy St. Patrick’s Day, celebrated the 74 Anniversary of the Santa Ana Zoo, and invited all to the visit the Zoo. Councilmember Bacerra announced the Segerstrom High School’s boys and girls soccer teams won the state championships, his community office hour at Adams Park on Saturday, April 4, 2026 at 12:00 P.M., spoke regarding the Coach Royal Mobile Home Park tenants evictions, and wished everyone a Happy St. Patrick’s Day. Councilmember Hernandez thanked staff for all their hard work and efforts, wished th everyone a Happy St. Patrick’s Day, highlighted Chapter One’s 15 Year Anniversary, expressed condolences for Jessica Coghill’s family on her passing, addressed mobile home residents’ concerns, and emphasized First Amendment free speech. Mayor Pro Tem Penaloza announced the Transportation Corridor Agency (TCA) signed a master and operating agreement to advance the 241/91 Express Connector Project and congratulated the California Department of Transportation, Orange County Transportation Authority, Riverside County Transportation Commission, and TCA. He thanked staff for their efforts with the Santa Ana and Sauyaho Business Expo and stated he looks forward to the expo, invited residents to the Build Your Own Easter Basket at Memorial Park on March 29, 2026, and wished his father-in-law and son a Happy Birthday. Mayor Amezcua thanked staff for their efforts regarding Coach Royal Mobile Home Park tenants, addressed her recent absence and the need to support staff, requested the video made by Police Chief Rodriguez highlighting the City’s successin 2025 and the Chief’s accomplishments since becoming chief on a future agenda, announced Coffee with the Mayor and the Festival of the Niño with Mosaic at George Upton Park at 10:00 A.M. on April 18, 2026, thanked staff for putting together the Apprenticeship Career Fair, and stated she looks forward to the Santa Ana and Sauyaho Business Expo. CITY COUNCIL 17 MARCH 17, 2026 ADJOURNMENT – Adjourn the City Council meeting. MINUTES:MayorAmezcua adjourned the City CouncilMeeting at 9:36 P.M. Respectfully submitted: __________________________ Jennifer L. Hall, CMC City Clerk CITY COUNCIL 18 MARCH 17, 2026 Library www.santa-ana.org/library Item # 7 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: California State Library Funding AGENDA TITLE Appropriation Adjustment Recognizing $8,171 in California State Library Funding (General Fund) RECOMMENDED ACTION Approve an appropriation adjustment to recognize $8,171 in California State Library California Library Services Act funds in the Library Miscellaneous Income revenue account and appropriate the same into the Library Tech & Support Services, Computer Software Subscriptions expenditure account, to apply toward Library e-resources. (Requires five affirmative votes) GOVERNMENT CODE §84308 APPLIES: No DISCUSSION As a full member of the Santiago Library System, which is a consortium of libraries in Orange County, the Santa Ana Library is eligible to receive California State Library California Library Services Act funding. The Library was notified that it would receive $8,170.41 to apply toward e-resources provided by Overdrive, Inc. (“Overdrive”). On October 17, 2023, the City Council approved an agreement with Overdrive, Inc. (“Overdrive”) to provide content hosting services and digital content such as e-books, e- audiobooks, e-magazines, and video streaming. The agreement ends June 30, 2026 with an option for up to two one-year renewals. In recent years, electronic content such as e-books, e-audiobooks, e-magazines, and streaming content have become very popular and an essential part of the Library’s digital services platform. Library patrons can access Overdrive content through various methods that include the Santa Ana Public Library’s website, Libby app (by Overdrive), or on e-reader devices. Using Overdrive, patrons can browse the Library’s digital collection and check out materials with a valid Santa Ana Public Library card. From there, users can easily download books, magazines, videos, or audiobooks to their California State Library Funding April 7, 2026 Page 2 computers or mobile devices. Titles will automatically expire at the end of the lending period. Downloadable titles offer library patrons of all ages a convenient way to access information and materials from home or anywhere there is an internet connection. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The appropriation adjustment will recognize $8,170.41 in Library Miscellaneous Income revenue account (01111002-57990), and appropriate the same to Library Tech & Support Services, Computer Software Subscriptions expenditure account (01111190- 66511) as follows: Accounting AU, Fiscal Fund Unit-Account Amount YearDescription Account #Description Tech & Support 01111190 –Services, Computer FY 25-26General Fund$8,170.41 66511Software Subscriptions TOTAL $8,170.41 EXHIBIT(S) N/A Submitted By: Brian Sternberg, Executive Director of Library Services Approved By: Alvaro Nuñez, City Manager City Manager’s Office www.santa-ana.org/cm Item # 8 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: River View Golf Course Land Lease with Orange County Flood Control District AGENDA TITLE Approve Lease Agreement with the Orange County Flood Control District for River View Golf Course Property Located at 1800 W. Santa Clara Avenue RECOMMENDED ACTION Authorize the City Manager to execute a 25-year lease agreement with the Orange County Flood Control District for the River View Golf Course, located at 1800 W. Santa Clara Avenue (Santa Ana River Channel Facility Nos. E01-1008, 1008.1, 1051.01, 1052.01 and 1053), beginning May 1, 2026, with provisions for five optional five-year extensions, with an annual lease payment of $200,000, increasing by CPI capped at 3% per year. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The original 9-hole Riverview Golf Course was constructed on City-owned land in the early 1960’s. On September 2, 1969, River View Golf LLC entered into an agreement with the Orange County Flood Control District (District) for use of approximately 70 acres of District land along the Santa Ana River Channel to expand the golf course into an 18-hole facility. The District’s land is used for nine (9) of the 18 golf course holes. The driving range, putting green, clubhouse, pro shop, cart barn, parking lot, and remaining nine (9) holes are located on City-owned land. The land lease agreement between the District and River View Golf LLC expired January 26, 2026. The District and River View Golf LLC have extended the agreement on a month-to-month basis while awaiting a long-term agreement with the City. The current lease payment to the District is a share of net golf course income, an approximate total of $288,000 for the 2025 calendar year. On March 3, 2026, City Council approved an agreement with CourseCo, Inc. to operate the River View golf course for the City, as the current operator agreement with River View Golf LLC expires on April 30, 2026. The City has negotiated a proposed land lease agreement with the District to continue using its 70 acres for the golf course (Exhibit 1). River View Golf Course Land Lease with Orange County Flood Control District April 7, 2026 Page 2 The term of the proposed agreement is 25 years with five (5) additional, 5-year extensions at the City’s option. The proposed annual lease payment to the District is $200,000, to be paid in 12 equal monthly installments, increasing by CPI capped at 3% annually. If City Council approves the proposed agreement, it will be presented to the Orange County Board of Supervisors for approval on April 14, 2026 to become effective on May 1, 2026. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the Project is categorically exempt from further review per Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines. Class 1 exemption applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The Project involves execution of a 25-year lease agreement with the Orange County Flood Control District for the River View Golf Course, an existing golf course with ancillary supportive facilities, beginning May 1, 2026. No site alteration, expansion of service, or other activity is proposed that would have a physical effect on the environment, and any future improvements to the site following execution of the lease would be reviewed pursuant to the CEQA Guidelines for any project-specific impacts. Based on this analysis, a Notice of Exemption will be filed for this Project. FISCAL IMPACT Lease payments totaling $200,000 in the first year of the agreement will be made from the River View golf course operating account as part of the City Council approved budget each year, and will be recorded in the River View golf course enterprise fund account 11213200-62500. EXHIBIT(S) 1.Lease Agreement with Orange County Flood Control District Submitted By: Kathryn Downs and Minh Thai, Assistant City Managers Approved By: Alvaro Nuñez, City Manager Lease Number 2026- Facility Number E01-1008, 1008.1, 1051.01, 1052.01 and 1053 th Location Name: Santa Ana River channel between 22 Fwy and 17 St. Premises Address 1800 W. Santa Clara Avenue, Santa Ana, CA 92706 LEASE THIS IS A LEASE (hereinafter referred to as Lease___________________, 2026, Effective Date ORANGE COUNTY FLOOD CONTROL DISTRICT, a body corporate and politic (DistrictLessor) and CITY OF SANTA ANA, a municipal corporation and charter city, (City). District and City PartyParties RECITALS A. Pursuant to that certain agreement between the District and River View Golf LLC dated September 2, 1969 as amended (District Agreement), River View Golf LLC has operated River View Golf Course, a public golf course, on a portion of the DistrictSanta Ana River Channel, identified as Facility Nos. E01-1008, 1008.1, 1051.01, 1052.01 and 1053 collectively containing approximately 70 acres District Property located along the Santa th Ana River between the 22 freeway and 17 Street in the City of Santa Ana, California. The District Agreement expired on January 26, 2026, and is in holdover status for the termination of the District Agreement to be coterminous with the City Agreement, as defined below. B. Pursuant to that certain agreement between the City and River View Golf LLC dated August 21, 1961 as amended (City Agreement), River View Golf LLC also operates portions of the golf course, the driving range, a pro shop, parking, a bar and a restaurant on City owned property adjacent to the District Property, that is identified as 1800 W. Santa Clara Avenue, Santa Ana, CA. The City Agreement is set to expire April 30, 2026. C. At the expiration of both the District Agreement and City Agreement, River View Golf LLC will cease operations, and the City will take over operation of the golf course, as more fully set forth below. The City has requested that the District lease its District Property to the City to allow the continued the operation of River View Golf Course as an 18 hole public golf course. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the District and the City agree as follows: 1. DEFINITIONS (1.0 SR) The following words in this Lease shall have the significance attached to them in this Clause (DEFINITIONS), unless otherwise apparent from context: 3/2/2026 Page 1 of 41 Lease Number Agency/Program Standard Revenue Lease Form Board of Supervisors County of Orange, a political subdivision of the State of California. CEO/Office of Risk Management means the Risk Manager, County Executive Office, Risk Management, County of Orange, or designee, or upon written notice to City, such other person or entity as shall be designated by the County Executive Officer or the Board of Supervisors. Chief Real Estate Officer County Executive Office, County of Orange, or upon written notice to City, such other entity as shall be designated by the County Executive Officer. Chief Engineer OC Public Works and/or District, County of Orange, or designee, upon written notice to City, such other person or entity as shall be designated by Director. County Counsel County Counsel, County of Orange, or designee, or upon written notice to City, such other person or entity acting in a similar capacity as shall be designated by the Board of Supervisors. County Executive Officer County Executive Officer, County Executive Office, County of Orange, or designee, or upon written notice to City, such other person or entity as shall be designated by the Board of Supervisors. Director of OC Public WorksDirector of Orange County Public Works or designee. - means the Treasurer-Tax Collector, County of Orange, or designee, or upon written notice to City, such other person or entity as shall be designated by the Board of Supervisors. 2. PREMISES (1.1 SR) District hereby leases to City, and the City leases from the District, the District Property located within the Santa Ana River Channel, commonly known as River View Golf Course in Santa Ana, CA, as described in Exhibit A and shown on Exhibit B, Premises) which exhibits are attached hereto and by this reference made a part hereof. The Premises are accepted by City, subject to any and all existing easements and encumbrances. 3. USE (1.2 SR) Citys use of the Premises shall be limited to continuation of the existing golf course facility and operations, including operation of an eighteen-hole public golf course and landscape improvements (e.g., grading, landscape architecture, cart paths, tees, plantings, irrigation systems and any repair and maintenance related thereto. No additional landscaping, trees, shrubbery or plantings shall be added to the Premises and landscaping will not be allowed to expand outside of the existing greens, without a county permit and prior written approval of the District. Permitted activities shall include public golfing, the sale of food and beverages consistent with golf course 3/2/2026 Page 2 of 41 Lease Number Agency/Program Standard Revenue Lease Form operations, golf lessons, tournaments, events, and similar functions including the use of golf equipment and motorized golf carts. The above listed uses are the only uses permitted. City agrees not to use the Premises for any other purpose, nor to engage in or authorize any other activity within or from the Premises, without prior District approval. District approval is subject to negotiation by the Parties and may result in additional charges for Rent and/or Additional Rent as those terms are defined and used in Clause 9 (RENT) below; however, District shall have sole discretion to authorize or deny any additional activity requested by City consistent with the flood control purposes of the Facilities, as defined below. Additionally, the City shall not use the Premises or any portion thereof for any illegal or unlawful purpose and will not cause or permit a nuisance or waste to be created or maintained thereon. City agrees that no new improvements shall be erected, placed upon, operated, or maintained within the Premises without the District. City agrees that no business shall be conducted or carried on therein or therefrom, in violation of the terms of this Lease, or of any regulation, order of law, statute, bylaw, or ordinance of a governmental agency having jurisdiction. 4. DISTRICTUSE RESERVATIONS AND RIGHT OF ENTRY (1.3 SR) The Premises lie within an area required for the maintenance and operation of the Santa Ana River and the Santiago Creek flood control and water conservation facilities Facilities. These Facilities are an integral part of a flood control and water conservation system that District operates to fulfill its primary function of protecting life and property in Orange County. Use of the Premises by City shall be at all times subordinate to use by the District for activities related to flood control or water conservation. District reserves the right for itself, and the U.S. Army Corps of Engineers (USACE) from time to time, without unreasonable interference, to access, enter and use the Premises. City shall cooperate with District and/or any of the persons or entities acting for, on behalf of or cooperating with the District, during scheduled operations or unanticipated events that require access to the Premises. District shall make best efforts to plan and notify City in advance of its intent to access the Premises. All rights reserved to the District in this Lease shall be exercised by District at its sole and absolute discretion. District shall incur no liability to City or others whose interest in the Premises stems from that of City for any action undertaken while accessing the Premises including construction, reconstruction, maintenance, operation, improvement, enlargement or modification of said Facilities by District or any of the persons or entities acting for, on behalf of or cooperating with the District. City further waives all claims and recourse against District, including the right of contribution for loss or damage of persons or property arising from growing out of or in any way connected with this Lease, including each and every type of damage caused by flooding, erosion or otherwise to the Premises that may result from the District Premises, except claims arising from the concurrent active or sole negligence or willful misconduct of the District. 3/2/2026 Page 3 of 41 Lease Number Agency/Program Standard Revenue Lease Form 5. PARKING (1.4 SR) owned property. Other than golf carts in the process of play, no parking shall be permitted upon the Premises without written approval of the District. 6. TERMINATION OF PRIOR AGREEMENTS (1.5 SR) Intentionally Deleted 7. TERM (1.6 SR) The initial term of this Lease shall be for Twenty Five (25) years (Term), commencing May 1, 2026 at 12:01AM (Commencement Date), unless otherwise modified by mutual written consent of the Parties, and upon the conditions that both the District Agreement and City Agreement are no longer in effect and the prior tenant, River View Golf LLC, has vacated the Premises. The Parties agree that the Commencement Date of this Lease will be confirmed in writing by either Party upon demand by the other. Either Party may terminate this agreement at any time, without cause by giving the other Party one (180) advance notice of such termination. 8. OPTION TO EXTEND TERM (1.7 SR) Provided City is not in and has not been in Default under this Lease or any approved Extension Term of this Lease, as defined in Clause 32 (DEFAULTS AND REMEDIES), City may exercise its right to extend the Lease for up to five (5) additional, five- (5) year terms (Extension Term s). A request from the City for an extension shall be in writing and must be made no later than one hundred and twenty (120) days prior to the expiration of this Lease or preceding Extension Term. 9. RENT (1.8 SR) A. Base Rent. The City shall initially pay to the District annual rent in the amount of Two Hundred Thousand Dollars ($200,000) for the first 12 months of the Term of this Agreement, payable in twelve (12) equal monthly installments. Thereafter, the City shall adjust its rent in accordance with subdivision (B) of this Clause. The first installment shall be due on the Commencement Date of this Lease. th B. CPI Adjustment. Beginning with the thirteenth (13) month of the Term, and annually thereafter, the Rent shall be increased by an amount equal to the percentage increase in the Consumer Price Index for all urban consumers, Los Angeles-Anaheim-Riverside statistical area, all items (1982-84 = 100) published by the United States Department of Labor, Bureau of Labor Statistics ("CPI") for the preceding 12-month period, if any such increase has occurred. Said CPI adjustment will be capped at a maximum increase of three percent (3%) each adjustment. The adjusted rent shall be effective with the payment due at the start of each adjustment period. C. Additional Rent. In the event that City uses or permits the Premises to be used for any activity not expressly permitted herein, City shall pay to District the greater of Five Hundred Dollars ($500) 3/2/2026 Page 4 of 41 Lease Number Agency/Program Standard Revenue Lease Form or a sum equal to one hundred percent (100%) of the gross revenue derived from such unpermitted activity. The existence of this charge or the payment or receipt of money under this Clause does not constitute authorization for City to continue such activity nor does it constitute a waiver of damages in the event of such a breach of this Lease would be extremely difficult or impossible to determine; therefore, an amount equal to the greater of Five Hundred Dollars ($500) or a sum equal to one hundred percent (100%) of the gross revenue derived from such activity has been The Parties agree that Rent and Additional Rent shall be absolutely net to District and that, except as otherwise provided herein, City will pay all costs, charges, insurance premiums, taxes, utilities, expenses and assessments of every kind and nature incurred for, against or in connection with the Premises which arise or become due during the Term or any Extension Term as a result of City use and occupancy of the Premises. Under no circumstances is District obligated or required to make any payment of any kind whatsoever or be under any other obligation or liability under this Lease except as expressly provided in Clause 15 (OBLIGATIONS OF THE DISTRICT). 10. RENT PAYMENT PROCEDURE (2.0 SR) Rent payments shall be identified within the payment instrument as River View Lease Payment along with the Lease number as shown in the header or footer of this document and shall include the month and year such payment applies to. Rent payments shall be delivered to: Orange County Treasurer-Tax Collector Revenue Recovery/Accounts Receivable Unit P.O. Box 4005 Santa Ana, California 92702-4005 All sums due under this Lease shall be paid in lawful money of the United States of America, without offset or deduction or prior notice or demand. Rent payments must be made by check payable to the Orange County Flood Control District. District may change the designated place of payment and filing at any time upon ten (10) calendar days' written notice to City. City assumes all risk of late payments if checks are unidentified, or lost, if payments are made by mail. No payment by City or receipt by District of a lesser amount than the payment due shall be deemed to be other than on account of the payment due, nor shall any endorsement or statement on any check or any letter accompanying any check or payment be deemed an accord and satisfaction, and District shall accept such check or payment without prejudice to District's right to recover the balance of the amount due or pursue any other remedy in this Lease. Nor shall District acceptance of a lesser amount due or delay in pursuing full payment act as a legal bar against District 11. CHARGE FOR LATE PAYMENT (2.1 SR) City hereby acknowledges that the late payment of Rent or any other sums due hereunder will cause District to incur costs not contemplated by this Lease, the exact amount of which will be 3/2/2026 Page 5 of 41 Lease Number Agency/Program Standard Revenue Lease Form extremely difficult to ascertain. Such costs include but are not limited to costs such as administrative processing of delinquent notices, increased accounting costs, etc. Accordingly, if any payment of Rent as specified in Clause 9 (RENT) or if any other sum due District under this Lease is not received by District within fifteen (15) days after the due date, a late charge of Two Hundred Dollars ($200) shall be added to the payment, and the total sum shall become immediately due and payable to District. An additional charge of Two Hundred Dollars ($200) shall accrue monthly for each additional month that said payment remains unpaid. City and District hereby agree that such late charges represent a fair and reasonable estimate of the costs that District will incur by reason of City's late payment. Acceptance of such late charges (and/or any portion of the overdue payment) by District shall in no event constitute a waiver of City's Default (as defined in Clause 32 (DEFAULTS AND REMEDIES)) with respect to such overdue payment or prevent District from exercising any of the other rights and remedies granted hereunder. 12. LEASE ADMINISTRATIVE COSTS (SRLic-2.2 SR) Intentionally Deleted 13. SECURITY DEPOSIT (2.3 SR) Intentionally Deleted 14. RECORDS AND ACCOUNTS (2.4 SR) Intentionally Deleted 15. OBLIGATIONS OF THE DISTRICT District shall maintain the Facilities adjacent to or within the Premises consistent with comparable , which shall not be subject to the discretion of the City. D istrict may provide routine inspections of the Premises and Facilities and shall provide the City a copy of the most current inspection report, upon request. D istrict reserves the right unto itself and to USACE to perform any flood control work, including but not limited to the repair, removal, construction or reconstruction of said Facilities or to do any other work necessary at any time for purposes of flood control and water conservation, which are a higher public use than the recreational purposes contemplated by the City. The District may require the City to close a portion of the Premises as necessary to ensure safety during construction, maintenance or repair activities involving the Facilities, however, Ci abated using a daily pro rata formula based on the current rent applicable to the percentage of the golf course holes closed, using the formula below: 3/2/2026 Page 6 of 41 Lease Number Agency/Program Standard Revenue Lease Form Annual Rent Closed Holes Total Abated Rent = x Inoperable Days x 365 Total Holes D istrict shall review and respond to all City requests for modifications or construction through the D istrict as set forth in Clause 16 (MAINTENANCE OBLIGATIONS OF CITY), below. 16. MAINTENANCE OBLIGATIONS OF CITY CONDITIONS AND CARE OF PREMISES (2.5 SR) A. City shall, to the satisfaction of D istrict, keep and maintain, or cause to be kept and maintained, the Premises and all City Improvements (as that term is defined in Clause 19, below) of any kind in place and used, occupied, or otherwise operated or maintained by the City on the Premises prior to the Commencement Date, or which may be erected, installed, or made thereon by City or its Licensee or Licensees, during the Term or any Extension Term of this Lease, in good condition and in substantial repair, provided that in the event of (i) substantial damage to any such City Improvements it shall be at City (provided that if the improvements are not to be repaired or replaced, then they shall be placed into a safe condition or removed), as provided in Clause 20 (OPERATIONAL REQUIREMENTS OF CITY) below; or (ii) City or its Licensee(s) ceases to use any improvements, it shall be at City option to not repair or replace any such improvement so long as the improvement is maintained in a safe condition or removed. Subject to the foregoing, it shall be City's responsibility to take all steps necessary or appropriate to maintain such a standard of condition and repair. B. City shall at its sole cost and expense, keep the Premises clean and in good repair at all times during the entire term of this Lease including clean-up of any trash or debris that migrates into the adjacent Facilities from the Premises. Except as otherwise expressly set forth in this Lease, City shall be responsible for all costs relating to the operation and maintenance of the Premises. C. City shall be solely responsible for all costs and expenses for any maintenance and repairs necessitated by the actions of City, or Licensee(s), resulting in an extraordinary load imposed on underground utilities outside the Premises which actually causes damage or contamination of Flood Control facilities or property. D. If City fails to maintain or make repairs or replacements as required herein, D istrict shall notify City in writing of said failure. Should City fail to correct the situation within ten (10) days after receipt of written notice specifying the condition to be corrected (provided that such 10-day period may be extended accordingly if a longer time is reasonably necessary to correct the condition and City promptly commences such cure and diligently prosecutes it to completion), D istrict may make the necessary correction or cause it to be made and the cost thereof, including but not limited to the cost of labor, materials, equipment, shall be paid by City within ten (10) days of receipt of a statement, including reasonable supporting documentation, of said cost from D istrict. E. If City receives an inspection notice or a deficiency notice following an inspection by any public or regulatory agency having jurisdiction, City agrees to make any and all corrections in the manner required immediately upon receipt of such notice, provided such items and/or corrections . City's failure to comply with 3/2/2026 Page 7 of 41 Lease Number Agency/Program Standard Revenue Lease Form the provisions of this Clause 16 shall constitute a City Default and the D istrict may proceed with any and all D istrict Remedies as defined in Clause 32 (DEFAULTS AND REMEDIES), and this Lease shall be subject to termination at District's option. F. D istrict shall have no obligation or responsibility to dredge, remove debris, or to maintain, repair, or replace improvements constructed within the Premises, except as otherwise required by applicable law, including but not limited to the Orange County Flood Control Act. City shall have no obligation to dredge the Premises nor to maintain, supervise, repair or replace any improvements installed by D istrict. G. City shall be responsible for routine and detailed inspections of the Premises to self-identify, maintain and repair the Premises and any Facilities impacted by golf play, to its current condition, as shown depicted in Exhibit B, attached hereto. This includes, but is not limited to, removal of all trash, removal of all trespassers, vegetation trimming to maintain existing vegetation limits to prevent vegetation migration into the drainage outlets, herbicide spray program for slopes and invert, rodent control, hazardous spill cleanup, minor slope erosion, bridge abutment washouts, riprap repairs, removing obstructions, graffiti abatement, irrigation and landscaping repairs or modifications, BMPs (as defined hereafter) for sediment and erosion, signage, and any other maintenance deficiencies identified in writing by D istrict or the USACE. The difference between minor slope erosion and major slope erosion shall be determined at the reasonable discretion of , who shall provide such support for such determination and collaborate with the City in good faith when making such determination. H. City shall also conduct inspections prior, during, and post rain events to ensure the Premises and Facilities are fully functional and free of obstructions. I. -storm activities using the formula set forth in Clause 15 (OBLIGATIONS OF THE DISTRICT). J. District agrees to continue maintaining the surrounding flood control channel as required by law and/or regulation. 17. CONSTRUCTION AND/OR ALTERATIONS BY CITY (2.6 SR) A. D istrict No grading shall take place, nor any construction, structures, improvements, additional vegetation or landscaping or facilities be built, erected, altered, or made within the Premises without prior written consent of D istrict and obtaining a permit through the County and/or United States Army Corps of Engineers permitting processes, as applicable. No pumping equipment shall be installed upon the Premises without first obtaining prior approval of such installation from the Chief Engineer. Any conditions relating to the manner, method, design, and construction of said structures, improvements, or facilities required by the D istrict as a condition to grant such consent, shall be conditions hereof as though originally stated herein. City may, at any time, at its sole expense, install, and replace business fixtures and equipment constructed by City, within the Premises. 3/2/2026 Page 8 of 41 Lease Number Agency/Program Standard Revenue Lease Form B. Strict Compliance with Plans and Specifications. All improvements constructed by City within the Premises shall be constructed in strict compliance with detailed plans and specifications approved by D istrict and to the extent applicable, in compliance with the requirements of California Public Contract Code Section 22000 et seq., which requires those improvements to be constructed as if such improvements had been constructed under the direction and supervision, or under the authority, of D istrict. C. Permits. All D istrict-approved improvements to the Premises installed or constructed by City shall be constructed in accordance with valid permits and all applicable laws and in a good and workmanlike manner, including, but not limited to, (a) City shall be required to secure the faithful performance of construction and completion of construction of the improvement by appropriate contractor or contractors to pay the prevailing rate of per diem wages for work of a similar character in the locality of the D istrict and not less than the general prevailing rate of per diem wages for holiday and overtime work, as provided in Clause 33 (LABOR CODE COMPLIANCE) of this Lease; and (b) To the extent required by applicable law, City shall comply, and shall cause any of its Sublessees, licensees, contractors and subcontractors to comply, with all County of Orange ordinances and public contracting laws regarding public works contracts, including, but not limited to, the bidding requirements under the California Public Contracts Code. City shall publicly advertise for bids for such improvements and shall provide D istrict a list of all bids received for the contract; and (c) thereafter, with the prior written approval of D istrict as to the winning bid, City shall award the contract or contracts for such improvements. All preparation and processing for environmental clearance shall be at Cityand expense. In the event that the environmental process results in any required mitigation measures, performance of such mitigation measures, including all associated costs and expenses shall be the sole responsibility of City. D istrict has no obligation to notify City regarding requirements for permits, licenses, approvals or other consents from governmental agencies, including the County of Orange in its regulatory capacity, nor shall D istrict have any obligation to obtain permits, licenses, approvals or other consents from governmental agencies on behalf of City. D istrict agrees to give its consent as property owner to any application made with regard to any such permits, licenses, approvals or other consents that may be required by any governmental agency or by the County of Orange in its regulatory capacity related to activities or design and construction of improvements approved by D istrict in accordance with this Lease. Any such consent given by D istrict as the property owner is not to be interpreted to obligate D istrict to pay any fees related to the application or issuance of any such permit, license, approvals or other consents, nor shall such consent be deemed a waiver of any fee that may be charged by CountyProperty Permit department. Any conditions placed on Cityand construction or operation of the Premises as a result of the issuance of permits, licenses, approvals or other consents shall be the sole obligation of City with regard to performance responsibilities, cost and expense. Any approvals or consents given by D istrict under this Lease, as a party to this Lease, shall not be deemed approval as to compliance or conformance with applicable governmental codes, laws, rules and/or regulations or approval from the standpoint of structural safety, suitability for purpose or conformance with building or other codes or other governmental requirements nor shall D istrict, 3/2/2026 Page 9 of 41 Lease Number Agency/Program Standard Revenue Lease Form as a party to this Lease be responsible for permitting of any construction and/or maintenance, design, assumptions or accuracy of City All planning and architectural/design costs required to complete the construction shall be City responsibility and shall be approved by the Director. Such approvals will not be unreasonably withheld or delayed and shall not relieve City of the responsibility for complying with all applicable codes and construction requirements, nor of obtaining necessary permits or approvals from the authorities of proper jurisdiction. 18. "AS-BUILT" PLANS AND CONSTRUCTION COSTS (PMD5.1 N) Within 60 days following completion of any City Improvement within the Premises, City shall furnish Chief Engineer with a complete set of digitally reproducible files and two sets of Record Drawings ("As-Built") plans. Record Drawings: All CAD files are to be converted to Acrobat Reader (*.pdf format), which shall constitute the digitally reproducible files, and shall be in accordance with OC Public Works CAD Standards Manual. City must obtain Chief Engineer's approval of "As-Built" plans, and the form and content of the itemized statement corresponding to the approval. City shall also furnish the Chief Engineer with all CAD data files, which shall be in the following software format: AutoCAD format; Microsoft Windows based system: Submission of all CAD data files shall be in accordance with OC Public Works CAD Standards Manual No other formats are acceptable. Chief Engineer reserves the right to reject CAD files delivered in any other formats not specified above. In addition, City, shall furnish Chief Engineer the recorded Notice of Completion (NOC) and an itemized statement of the actual construction costs of such improvement. The statement of cost shall be sworn to and signed by City or his responsible agent under penalty of perjury. City -Built" plans, and the form and content of the itemized statement. 19. OWNERSHIP OF IMPROVEMENTS (2.7 SR) City shall provide all equipment necessary for use of the Premises consistent with this Lease. All improvements, and facilities, exclusive of trade fixtures, constructed or placed within the Premises by City City Improvements must, upon completion, be free and clear of all liens, claims, or liability for labor or material and, at District's option shall, become property of District at the expiration of this Lease or upon earlier termination hereof. Alternatively, District retains the right to require City, at City's cost, to remove all City Improvements located on the Premises at the expiration or termination hereof. In the event that City fails to remove said City Improvements within fifteen (15) days following receipt of written notice from District to do so, such City Improvements will be deemed abandoned, and City shall lose all right, title and interest in and the or all of such items, or (ii) sell or make use of any or all such items. 3/2/2026 Page 10 of 41 Lease Number Agency/Program Standard Revenue Lease Form 20. OPERATIONAL REQUIREMENTS OF CITY (2.8 SR) A. Quality and Service Standards. City shall at all times operate the Premises in a manner consistent with Clause 3 (USE) and Clause 16 (MAINTENANCE OBLIGATIONS OF CITY CONDITIONS AND CARE OF PREMISES). B. Standards of Operation. City shall operate the Premises in a manner similar to other comparable facilities in Southern California that offer similar services and amenities. City shall, at its sole expense, take reasonable steps to provide security measures for the protection of persons and property within the Premises. C. Protection of Environment. City shall not permit: 1. Littering within the Premises. 2. Excessive noise emanating from the Premises. 3. Excessive light and glare from light fixtures within the Premises that could affect the safe operation of automobiles and aircraft in the area. 4. Discharge or runoff of pollutants, including fertilizer, petroleum products, waste and debris from any source on the Premises into the waters within or adjacent to the Premises or other activities that are harmful to water quality. 5. City shall immediately report any spillage, leakage, or discharge of any toxic, hazardous or polluting materials to the proper authorities and to D istrict. Failure by City to comply with A, B and C of this Clause shall result in City Default and D istrict shall have the right to exercise any remedy available to it by virtue of such City Default in addition to any D istrict Remedies defined in Clause 32 (DEFAULTS AND REMEDIES). D. On-Site Management 1. City shall employ and designate to D istrict Facility Manager who shall be responsible for the day-to-day operation and maintenance, cleanliness, and general order of the Premises. Facility Manager shall be vested with the authority of City with respect to the supervision over the operation and maintenance of the Premises, including the authority to enforce compliance by City subcontractors, concessionaires, or licensees with the terms and conditions of this Lease and any and all rules and regulations adopted hereunder. City shall notify D istrict in writing of the name of the Facility Manager currently employed, as well as successor managers, in the manner as provided in Clause 64 (NOTICES) below. 2. City agrees to obey, abide by, and be in conformance with all applicable governmental codes, laws, rules and/or regulations, now or hereafter promulgated, concerning operations on the Premises. 21. MECHANICS LIENS OR STOP-NOTICES (2.9 SR) City shall at all times indemnify, defend with counsel approved in writing by D istrict and save District harmless from all claims, losses, demands, damages, cost, expenses, or liability costs for labor or materials in connection with construction, repair, alteration, or installation of structures, improvements, equipment, or facilities within the Premises, and from the cost of defending against 3/2/2026 Page 11 of 41 Lease Number Agency/Program Standard Revenue Lease Form such claims, including attorney fees and costs, unless such claims, losses, demands, damages, costs, expenses, or liability costs arise from the negligence or willful misconduct of District. In the event a lien or stop-notice is imposed upon the Premises as a result of such construction, repair, alteration, or installation, City shall either: A. Record a valid Release of Lien, or B. Procure and record a bond in accordance with Section 3143 of the Civil Code, which frees the Premises from the claim of the lien or stop-notice and from any action brought to foreclose the lien. Should City fail to accomplish either of the two optional actions above within fifteen (15) days after the filing of such a lien or stop-notice, the City shall be in City Default and shall be subject to immediate termination of this Lease. 22. INSURANCE (3.0 SR) City agrees to purchase all required insurance or maintain a program of self-insurance at City expense and to deposit with the D istrict certificates of insurance, including all endorsements required herein, necessary to satisfy the D istrict that the insurance provisions of this Lease have been complied with and to keep such insurance coverage and the certificates and endorsements therefore on deposit with the D istrict during the entire term of this Lease. City agrees that City shall not operate on the Lease Area at any time the required insurance is not in full force and effect as evidenced by a certificate of insurance and necessary endorsements or, in the interim, an official binder being in the possession of the D istrict. In no case shall assurances by City, its employees, agents, including any insurance agent, be construed as adequate evidence of insurance. D istrict will only accept valid certificates of insurance and endorsements, or in the interim, an insurance binder as adequate evidence of insurance. City also agrees that upon cancellation, termination, or expiration of City's insurance, D istrict may take whatever steps are necessary to interrupt any operation from or on the Premises until such time as the D istrict reinstates the Lease. If City fails to provide D istrict with a valid certificate of insurance and endorsements, or binder at any time during the term of the Lease, D istrict and City agree that this shall constitute a material breach of the Lease. Whether or not a notice of default has or has not been sent to City, said material breach shall permit D istrict to take whatever steps necessary to interrupt any operation from or on the Premises, and to prevent any persons, including, but not limited to, members of the general public, and City's employees and agents, from entering the Premises until such time as D istrict is provided with adequate evidence of insurance required herein. City further agrees to hold D istrict harmless for any damages resulting from such interruption of business and possession, including, but not limited to, damages resulting from any loss of income or business resulting from the D istrict's action. City may occupy the Premises only upon providing to D istrict the required insurance stated herein and maintain such insurance for the entire term of this Lease. D istrict reserves the right to terminate this Lease at any time City 3/2/2026 Page 12 of 41 Lease Number Agency/Program Standard Revenue Lease Form days of said cancellation or termination. City shall pay D istrict a fee of $1000.00 for processing the reinstatement of the Lease. City shall provide to D istrict immediate notice of said insurance cancellation or termination. All contractors performing work on behalf of City pursuant to this Lease shall obtain insurance subject to the same terms and conditions as set forth herein for City. City shall not allow contractors or subcontractors to work if contractors have less than the level of coverage required by the D istrict from the City under this Lease. It is the obligation of the City to provide written notice of the insurance requirements to every contractor and to receive proof of insurance prior to allowing any contractor to begin work within the Premises. Such proof of insurance must be maintained by City through the entirety of this Lease and be available for inspection by a D istrict representative at any reasonable time. All self-insured retentions (SIRs) shall be clearly stated on the Certificate of Insurance. Any self- insured retention (SIR) in an amount in excess of Fifty Thousand Dollars ($50,000) shall specifically be approved by the District. The District reserves the right to require current audited financial reports from City. If City is self-insured, City will indemnify and defend District for any and all claims resulting or arising from City Premises or performance in accordance with the indemnity provision stated in this Lease. Qualified Insurer The policy or policies of insurance must be issued by an insurer with a minimum rating of A- (Secure A.M. Best's Rating) and VIII (Financial Size Category as determined by the most current edition of the Best's Key Rating Guide/Property-Casualty/United States or ambest.com). It is preferred, but not mandatory, that the insurer be licensed to do business in the state of California (California Admitted Carrier). The policy or policies of insurance must be issued by an insurer with a minimum rating of A- (Secure A.M. Best's Rating) and VIII (Financial Size Category as determined by the most current edition of the Best's Key Rating Guide/Property-Casualty/United States or ambest.com). If the insurance carrier does not have an A.M. Best Rating of A-/VIII, the CEO/Office of Risk Management retains the right to approve or reject a carrier after a review of the company's performance and financial ratings. The policy or policies of insurance maintained by the City shall provide the minimum limits and coverage as set forth below: Coverages Minimum Limits Commercial General Liability $5,000,000 per occurrence $5,000,000 aggregate Automobile Liability including coverage $1,000,000 combined single limit each for owned, non-owned and hired vehicles accident 3/2/2026 Page 13 of 41 Lease Number Agency/Program Standard Revenue Lease Form Coverages Minimum Limits Workers' Compensation Statutory Employers' Liability Insurance $1,000,000 per occurrence Pollution Liability $1,000,000 per claims made or occurrence 100% of the Replacement Cost Value and no coinsurance provision covering all, contents and any City improvements including Business Interruption/Loss of Rents with a 12-month limit. Required Coverage Forms The Commercial General Liability coverage shall be written on Insurance Services Office (ISO) form CG 00 01, or a substitute form providing liability coverage at least as broad. The Business Auto Liability coverage shall be written on ISO form CA 00 01, CA 00 05, CA 00 12, CA 00 20, or a substitute form providing liability coverage at least as broad. Required Endorsements The Commercial General Liability policy shall contain the following endorsements, which shall accompany the Certificate of insurance: 1) An Additional Insured endorsement using ISO form CG 20 26 04 13or a form at least as broad naming the Orange County Flood Control District and the County of Orange, its elected and appointed officials, officers, employees, agents as Additional Insureds. Blanket coverage may also be provided which will state- As Required By Written Agreement. 2) A primary non-contributing endorsement using ISO form CG 20 01 04 13, or a form at least as broad, evidencing that the insurance is primary, and any insurance or self-insurance maintained by the D istrict and the County of Orange shall be excess and non-contributing. all rights of subrogation against the D istrict and the County of Orange, its elected and appointed officials, officers, agents and employees. Blanket coverage may also be provided which will state- As Required By Written Agreement. 3/2/2026 Page 14 of 41 Lease Number Agency/Program Standard Revenue Lease Form The Pollution Liability policy shall contain the following endorsements, which shall accompany the Certificate of Insurance: 1) An Additional Insured endorsement naming the Orange County Flood Control District, County of Orange, its elected and appointed officials, officers, employees, and agents, and as Additional Insureds. 2) A primary non-contributory endorsement evidencing that C źƷǤ insurance is primary, and any insurance or self-insurance maintained by the County of Orange shall be excess and non-contributing. Pollution Liability insurance must include coverage for bodily injury and property damage, including coverage for loss of use and/or diminution in property value, and for clean-up costs arising out of, pertaining to, or in any way related to the actual or alleged discharge, dispersal, seepage, migration, release or escape of contaminants or pollutants resulting from any services or work performed by, or behalf of, TENANT, including the transportation of hazardous waste, hazardous materials, or contaminants. If City-made policy, City shall agree to the following: 1) The retroactive date must be shown and must be before the date of the contract or the beginning of the Lease. 2) Insurance must be maintained, and evidence of insurance must be provided for at least three (3) years after expiration or earlier termination of Lease. 3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the effective date of the contract services, TENANT must purchase an extended reporting period for a minimum of three (3) years after expiration of earlier termination of the Lease. All insurance policies required by this lease shall waive all rights of subrogation against the D istrict and the County of Orange, its elected and appointed officials, officers, agents and employees when acting within the scope of their appointment or employment. The Commercial Property policy shall contain a Loss Payee endorsement naming the D istrict as respects the D istrict The Commercial General Liability policy shall contain a severability of interests clause, also Insurance certificates should be forwarded to the D istrict address provided in Clause 65 (NOTICES) below or to an address provided by Director. City has ten (10) business days to provide adequate evidence of insurance, or this Lease may be cancelled. D istrict expressly retains the right to require City to increase or decrease insurance of any of the above insurance types throughout the term of this Lease. Any increase or decrease in insurance 3/2/2026 Page 15 of 41 Lease Number Agency/Program Standard Revenue Lease Form will be as deemed by County of Orange Risk Manager as appropriate to adequately protect D istrict. D istrict shall notify City in writing of changes in the insurance requirements. If City does not deposit copies of acceptable certificates of insurance and endorsements with D istrict incorporating such changes within thirty (30) days of receipt of such notice, this Lease may be in breach without further notice to City, and D istrict shall be entitled to all legal remedies. The procuring of such required policy or policies of insurance shall not be construed to limit City's liability hereunder nor to fulfill the indemnification provisions and requirements of this Lease, nor in any way to reduce the policy coverage and limits available from the insurer. 23. INDEMNIFICATION (3.1 SA) City hereby agrees to indemnify, hold harmless, and defend County District, their elected and appointed officials, officers, agents, employees, and those special districts and agencies which the Board of Supervisors acts as the governing board, with counsel approved by District, against any and all claims, loss, demands, damages, cost, expenses or liability arising out of the ownership, maintenance, or use of the Premises, except for liability arising out of the negligence of District, its elected and appointed officials, officers, agents, or employees, including the cost of defense of any lawsuit arising therefrom. In the event the County or District is named as co-defendant, City shall notify District of such fact and shall represent the County and District, with counsel approved by District, in such legal action unless the County and/or District undertakes to represent itself as co-defendant in such legal action, in which event City shall pay District In the event judgment is entered against District because of the concurrent negligence of City, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither Party shall request a jury apportionment. District hereby agrees to indemnify, hold harmless, and defend City, its officers, agents, and employees, against any and all claims, loss, demands, damages, cost, expenses or liability arising out of the use of the Premises, except for liability arising out of the negligence of Lessee, its officers, agents, or employees, including the cost of defense of any lawsuit arising therefrom. 24. HAZARDOUS MATERIALS (3.2 SR) A. Definition of Hazardous Materials. Hazardous Materials waste that is or shall become regulated by any governmental entity, including, without limitation, District, acting in its governmental capacity, the State of California or the United States government. B. Use of Hazardous Materials. Except for those Hazardous materials which are customarily used in connection with any permitted use of the Premises, hereunder (which Hazardous Materials shall be used in compliance with all applicable laws and regulations), City or City City Parties Hazardous Materials to be brought upon, stored, kept, used, generated, released into the environment or disposed of on, under, from or about the Premises (which for purposes of this 3/2/2026 Page 16 of 41 Lease Number Agency/Program Standard Revenue Lease Form Clause shall include the subsurface soil and ground water). Notwithstanding the foregoing, City and City Parties may keep on or about the Premises small quantities of Hazardous Materials that are used in the ordinary, customary, and lawful cleaning of and business operations on the Premises. Said permitted Hazardous Materials shall be stored in a safe location and shall be disposed of in a manner provided by law. C. City Obligations. If the presence of any Hazardous Materials on, under or about the Premises caused or authorized by City or City Parties results in (i) injury to any person, (ii) injury to or contamination of the Premises (or a portion thereof), or (iii) injury to or contamination or any real or personal property wherever situated, City, at its sole cost and expense, shall promptly take all actions necessary or appropriate to return the Premises to the condition existing prior to the introduction of such Hazardous Materials to the Premises and to remedy or repair any such injury or contamination. Without limiting any other rights or remedies of D istrict under this Lease, City shall pay the cost of any such cleanup or remedial work performed on, under, or about the Premises as required by this Lease or by applicable laws in connection with the removal, disposal, neutralization or other treatment of such Hazardous Materials caused or authorized by City or City Parties to be introduced on, under or about the Premises. Notwithstanding the foregoing, City shall not take any remedial action in response to the presence, discharge or release, of any Hazardous Materials on, under or about the Premises caused or authorized by City or City Parties, or enter into any settlement agreement, consent decree or other compromise with any governmental or quasi¬-governmental entity without first obtaining the prior written consent of the Director, which consent shall not be unreasonably withheld, conditioned or delayed. All work performed or caused to be performed by City as provided for above shall be done in good and workmanlike manner and in compliance with plans, specifications, permits and other requirements for such work approved by Director, which approval shall not be unreasonably withheld, conditioned or delayed. 25. BEST MANAGEMENT PRACTICES (3.3 SR) A. City shall conduct operations under this Lease so as to assure that pollutants do not enter municipal storm drain systems which systems are comprised of but are not limited to curbs and Stormwater Drainage System Receiving Waters but are not limited to, rivers, creeks, streams, estuaries, lakes, harbors, bays and oceans). B. The Santa Ana Regional Water Quality Control Board has issued National Pollutant Discharge NPDESStormwater Permits County, Orange County Flood Control District and cities within Orange County, as co-permittees (hereinafter collectively D istrict Parties the DISTRICT, including the Premises leased under this Lease. The D istrict Parties have enacted water quality ordinances that prohibit conditions and activities that may result in polluted runoff being discharged into the Stormwater Drainage System. C. BMP Fact Sheets that apply to uses authorized under this Lease include the BMP Fact Sheets that are attached hereto as Exhibit C. These BMP Fact Sheets may be modified during the term of the Lease; and D istrict shall provide City with any such modified BMP Fact Sheets. City, Citys agents, contractors, representatives and employees and all persons authorized by City to conduct activities on the Premises shall, throughout the term of this Lease, comply with the BMP Fact 3/2/2026 Page 17 of 41 Lease Number Agency/Program Standard Revenue Lease Form Sheets as they exist now or are modified, and shall comply with all other requirements of the Stormwater Permits, as they exist at the time this Lease commences or as the Stormwater Permits may be modified. City agrees to maintain current copies of the BMP Fact Sheets on the Premises throughout the term of this Lease. The BMPs applicable to uses authorized under this Lease must be performed as described within all applicable BMP Fact Sheets. D. City may propose alternative BMPs that meet or exceed the pollution prevention performance of the BMP Fact Sheets. Any such alternative BMPs shall be submitted to D istrict for review and approval prior to implementation. E. D istrict may enter the Premises and/or review City conducted on the Premises comply with the requirements of this Clause. City may be required to implement a self-evaluation program to demonstrate compliance with the requirements of this Clause. F. Among other requirements, the industrial NPDES permit requires periodic stormwater inspections by the State and/or D istrict and/or OC Watersheds staff to ensure facility compliance, which may include annual inspections of the Facilities and Premises, with follow up inspections as a result of observed violations requiring corrective actions. G. Dependent upon the reuse of the Premises, the Premises shall have a clarifier drain that captures low flow runoff from throughout the site, which ensures all flows are properly drained without any unacceptable runoff. City shall conduct their work throughout the site and any resultant low flow discharges shall work their way to the clarifier. In regard to City Improvements, City shall designate operational zones minimally affected by storm flows that allow drainage to the clarifier, and the non-operational portions of the site are to have normal storm discharges going through the storm drain system. As the site undergoes a new NPDES Industrial Permit application process, these conditions may get re-examined. H. The BMPs shall stipulate the process for the City to take corrective actions and state the consequences of non-compliance or D istrict options under the Lease to self-remedy the matter. The Santa Ana and San Diego Regional Water Quality Control Boards have established penalties/consequences for non-compliance and those are to be included in this Lease. D istrict to have the option to terminate the Lease if the City does not correct a non-compliance situation in a timely manner. I. Work activities are to be conducted in a controlled area where pollutants shall be contained, and any heavy metals detected at significantly higher levels than the benchmarks set by the Regional Board shall be addressed. All applicable BMPs are to be properly implemented, including any and all future modifications, updates, or replacement BMPs that may be issued from time to time, shall be used by City. J. Site modifications, such as distinctly designated work areas with controls to prevent pollutants from escaping and wastewater drain, will be required to be segregated from stormwater drain. K. In the event City fails to comply with all applicable BMPs, D istrict, in addition to any and all remedies available in Clause 32 (DEFAULTS AND REMEDIES), shall have the right to self-help remedies or terminate the Lease as follows: 3/2/2026 Page 18 of 41 Lease Number Agency/Program Standard Revenue Lease Form 1. Terminate the Lease due to non-compliance with the BMPs incorporated in the Lease and as BMPs may change from time to time, or; 2 Remedy a non-compliance situation with a chargeback to the City for the cost. The details regarding notification, timeline, and procedure are to be drafted and mutually agreed upon by both Parties to ensure all water quality issues are addressed within the Lease. In the event the CityCity allows a prohibitive discharge to occur, then the Regional Board will only take enforcement action against D istrict. Therefore, this Lease must establish a BMP compliance partnership with the City and the Lease must ensure the protection of water quality is inherent in the City-to-day operations. 26. BUILDING AND SAFETY REQUIREMENTS (3.4 SR) During the Term and any Extension Term(s) of this Lease, City, at City maintain the Premises in compliance with all applicable laws, rules, regulations, building codes, statutes, and orders as they are applicable on the date of this Lease, and as they may be subsequently amended, including but not limited to the California Building Code, Title 24, Seismic Code, Fire and Life Safety requirements and, if applicable, California Green Building Standard Code. Included in this provision is compliance with the Americans with Disabilities Act ) and all other federal, state, and local codes, statutes, and orders relating to disabled access as they are applicable on the dates of this Lease, and as they may be subsequently amended, and all regulations issued by the U. S. Attorney General or other agencies under the authorization of the ADA. However, City shall not be responsible for any ADA violations resulting from alterations made by D istrict or the placement of fixtures or equipment by D istrict. City shall use commercially reasonable efforts to repair and maintain the Premises Labor Code, Division 5, Part 1, Chapter 3, beginning with Section 6400) and the Federal Occupational Safety and Health Act, where the provisions of such Act exceed, or supersede, the California Act, as the provisions of such Act are applicable on the date of this Lease, and as they may be subsequently amended. D istrict agrees to notify City of any repair or maintenance necessary within the Premises to comply with such Act and City agrees to diligently act to repair or maintain appropriately. In the event City neglects, fails, or refuses to maintain said Premises as aforesaid, following thirty (30) days after written notice from D istrict to City providing notice of such neglect, failure or refusal, District may, notwithstanding any other termination provisions contained herein: A. Thirty (30) days following a second written notice of such neglect or failure or refusal, D istrict may terminate this Lease with written notice to the City; or B. At D istrict City Default by performance of any act, including payment of money, and add the cost thereof plus reasonable administrative costs (ten percent (10%)) to the Rent. 3/2/2026 Page 19 of 41 Lease Number Agency/Program Standard Revenue Lease Form City agrees to reimburse and indemnify, and defend D istrict for any expenses incurred because of the failure of the Premises to conform with any and all applicable laws, rules, regulations, building codes, statutes, and orders, including the costs of making any alterations, renovations, or accommodations required by the ADA, or any governmental enforcement agency, or any court, any and all fines, civil penalties, and damages awarded against D istrict resulting from a violation or violations of the above-cited laws, rules, regulations, building codes, statutes, and orders and regulations, and all reasonable legal expenses incurred in defending claims made under the above- referenced laws, rules, regulations, building codes, statutes, and orders, including reasonable City fail to comply with the provisions of this Clause 26, City may be found in City Default and the D istrict may exercise those remedies set forth in Clause 32 (DEFAULTS AND REMEDIES). 27. DAMAGE TO OR DESTRUCTION OF CITY IMPROVEMENTS (3.5 SR) City Improvements shall be maintained at the sole risk of the City, and District shall not be liable for any loss of or damage to said property resulting from any cause whatsoever unless such loss or damage is the result of D istrict pursuant to Clause 4 RIGHT OF ENTRY) above. As a result of use by the City and in the event of damage to or destruction of City Improvements located within the Premises or in the event City Improvements located within the Premises are declared unsafe or unfit for use or occupancy by a public entity with the authority to make and enforce such declaration, City shall, within thirty (30) days, commence and diligently pursue to completion the repair, replacement, or reconstruction of City Improvements to the same size and area as they existed immediately prior to the event causing the damage or destruction, as necessary to permit full use and occupancy of the Premises for the purposes required by the Lease. Repair, replacement, or reconstruction of City Improvements within the Premises shall be accomplished in a manner and according to plans approved by the Director. Except as otherwise provided herein, termination of this Lease shall not reduce or nullify City's obligation under this paragraph. With respect to damage or destruction to be repaired by D istrict or which D istrict elects to repair, City waives and releases its rights under California Civil Code Sections 1932 (2) and 1933 (4). D istrict shall not be liable for any damage to City Improvements located on the Premises, nor for the loss of or damage to any improvements of City or others by theft or otherwise. All improvements of City located or kept on the Premises shall be so kept or located at the risk of City unless such damage is caused by D istrict willful misconduct or gross negligence. 28. CITY PERSONAL PROPERTY City personal property kept or stored on the Premises shall be kept or stored and maintained at the risk of City and District shall not be liable for any loss of or damage to said property resulting from any cause whatsoever unless such loss or damage is the result of D istrict misconduct and not otherwise waived pursuant to Clause 4 AND RIGHT OF ENTRY) above. If City abandons or quits the Premises or is dispossessed thereof by process of law or otherwise, title to any personal property belonging to and left on the Premises fifteen (15) days after such 3/2/2026 Page 20 of 41 Lease Number Agency/Program Standard Revenue Lease Form event shall, at D istrict's option, be deemed to have been transferred to D istrict. D istrict shall have the right to remove and to dispose of such property without liability therefor to City or to any person claiming under City and shall have no need to account therefor. 29. ASSIGNMENT AND SUBLETTING (3.5 SR) Subject to prior review and approval by D istrict, City may allow for the rental, licensing, permitting, or subletting of the Premises when doing so results in providing for the uses permitted in Clause 3 (USE) above. Any mortgage, pledge, hypothecation, encumbrance, transfer, sublease, license, permit, or assignment (hereinafter in this Clause referred to collectively as Encumbrance City written approval of D istrict is prohibited. All Encumbrances are subject to D istrict iew and approval, including those Encumbrances that result in providing for the uses permitted in Clause 3 (USE) above. D istrict approval is subject to negotiation by the Parties and may result in additional charges for Rent and/or Additional Rent as those terms are defined and used in Clause 9 (RENT) above. D istrict may reasonably withhold such approval. Should D istrict consent to any Encumbrance, such consent shall not constitute a waiver of any of the terms, covenants, or conditions of this Lease or be construed as D istrict's consent to any further Encumbrance. Such terms, covenants or conditions shall apply to each and every Encumbrance hereunder and shall be severally binding upon each and every party thereto. Any document to mortgage, pledge, hypothecate, encumber, transfer, sublet, or assign the Premises or any part thereof shall not be inconsistent with the provisions of this Lease and in the event of any such inconsistency, the provisions of this Lease shall control. City may, with prior notice, engage the services of a professional management company and such employment shall not be construed to be an assignment or transfer of the Lease. Any license, sublease, permit, etc. issued by City shall be consistent with and subject to the terms and conditions of this Lease and shall be subject to review and approval by the D istrict, whose approval shall not be unreasonably withheld. Each license, sublease, permit, etc. issued by City shall require adequate insurance, as determined by the D istrict, with D istrict and the County of Orange named as additional insured, and the Licensees shall indemnify the D istrict and the County of Orange, its elected officials, agents, officers, and employees. 30. TAXES AND ASSESSMENTS (3.6 SR) If applicable, all taxes and assessments including, but not limited to, possessory interest tax, if any, which become due and payable upon the Premises shall be the full responsibility of City, and City shall cause said taxes and assessments to be paid prior to the due date. Should City fail to pay taxes and assessments due upon the Premises prior to the due date, District may pay such amount due and add the cost thereof, including overhead, to the Base Rent thereafter payable. 31. ESTOPPEL CERTIFICATE (3.7 SR) City shall furnish upon receipt of a written request from District an estoppel certificate on D istrict standard form Estoppel Certificate (attached hereto in Exhibit D containing information as to the current status of the Lease. Said standard form Estoppel Certificate shall be completed by City in 3/2/2026 Page 21 of 41 Lease Number Agency/Program Standard Revenue Lease Form a timely manner. The Estoppel Certificate shall be approved by Chief Real Estate Officer and County Counsel. 32. DEFAULTS AND REMEDIES (3.8 SR) A. City Default. City shall be deemed in default of this Lease if: (a) in the event of any monetary breach of this Lease by City, District shall notify City in writing of such breach, and City shall have three (3) days from such notice in which to cure said breach or (b) in the event of any non- monetary breach of this Lease, City fails within fifteen (15) days after receipt by City of written notice specifying wherein such obligation of City has not been performed; provided however, that if the nature of City's obligation is such that more than fifteen (15) days after such notice are reasonably required for its performance, then City shall not be in breach of this Lease if performance is commenced as soon as reasonably possible within such fifteen (15) day period and City Default"). B. District Default. District shall be deemed in breach of this Lease if District fails within fifteen (15) days after receipt by District of written notice specifying wherein such obligation of District has not been performed; provided however, that if the nature of District's obligation is such that more than fifteen (15) days after such notice are reasonably required for its performance, then District shall not be in breach of this Lease if performance is commenced as soon as reasonably possible within such fifteen (15) day period and thereafter diligently pursued to completion (each, District Default"). C. City Remedies. In the event of a District Default, the City may, at the City terminate the Lease, or shall have the right to injunctive relief, and/or any other rights at law or in equity City Remedies City to exercise any right or remedy shall be construed as a waiver of such right or remedy or of any District Default hereunder.. D. D istrict Remedies. If the City Default is a result of a monetary breach by City in the payment of the Rent or Additional Rent, pursuant to Clause 9 (RENT), D istrict may, at the D istrict discretion, (a) declare all Rent payments to the end of City any delinquent rent from prior budget years or, (b) terminate the Lease. D istrict result of City Default for monetary or non-monetary breach shall be the right to damages, injunctive relief, and/or any other rights at law or in equity. No delay or omission of D istrict to exercise any right or remedy shall be construed as a waiver of such right or remedy or of any City Default hereunder. 33. LABOR CODE COMPLIANCE (3.9 SR) City acknowledges and agrees that any and all improvements or modifications required to be performed by Lessor at the request of D istrict shall be governed by, and performed in accordance with, the provisions of Article 2 of Chapter 1, Part 7, Division 2 of the Labor Code of the State of California (Sections 1770, et seq.), as applicable. These provisions may be applicable to improvements or modifications costing more than $1,000, unless an exception applies, including but not limited to the exception to the definition of public works under § 1720.2. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the Orange D istrict Board of Supervisors has obtained the general prevailing rate of per diem wages and the 3/2/2026 Page 22 of 41 Lease Number Agency/Program Standard Revenue Lease Form general prevailing rate for holiday and overtime work in the locality applicable to this Lease for each craft, classification, or type of workman needed to execute the aforesaid improvements or modifications from the State Department of Industrial Relations. Copies of said prevailing wage rates may be obtained from the State of California, Department of Industrial Relations. City hereby agrees to pay or cause its contractors and/or subcontractors to pay said prevailing wage rates at all times for all improvements or modifications to be completed for City within the Premises, and City herein agrees that City shall post, or cause to be posted, a copy of the most current, applicable prevailing wage rates at the site where the improvements or modifications are performed. Prior to commencement of any improvements or modifications, City shall provide Director with the applicable certified payroll records for all workers that will be assigned to the improvements or modifications. Said payroll records shall contain, but not be limited to, the complete name, address, telephone number, social security number, job classification, and prevailing wage rate for each worker. City shall provide Director bi-weekly updated, certified payroll records for all workers including, but not be limited to, the weekly hours worked, prevailing hourly wage rates, and total wages paid. If City fails to comply with this Clause, such occurrence may constitute an event of default of this Lease and D istrict may, notwithstanding any other termination provisions contained herein: A. Terminate this Lease upon written notice to City; or B. At D istrict D istrict may deduct from City for such non-compliance of paying prevailing wage, which Security Deposit deduction would be D istrict by City. Except as expressly set forth in this Lease, nothing herein is intended to grant authority for City to perform improvements or modifications on space currently leased by D istrict or for which D istrict has entered into a lease or lease amendment. 34. RIGHT TO WORK AND MINIMUM WAGE LAWS (4.0 SR) In accordance with the United States Immigration Reform and Control Act of 1986, City shall require its employees that directly or indirectly service the Premises or terms and conditions of this Lease, in any manner whatsoever, to verify their identity and eligibility for employment in the United States. City shall also require and verify that its contractors or any other persons servicing the Premises or terms and conditions of this Lease, in any manner whatsoever, verify the identity of their employees and their eligibility for employment in the United States. Pursuant to the United States of America Fair Labor Standard Act of 1938, as amended, and State of California Labor Code, Section 1178.5, City shall pay no less than the greater of the Federal or California Minimum Wage to all its employees that directly or indirectly service the Premises, in any manner whatsoever. City shall require and verify that all its contractors or other persons servicing the Premises on behalf of the City also pay their employees no less than the greater of the Federal or California Minimum Wage. 3/2/2026 Page 23 of 41 Lease Number Agency/Program Standard Revenue Lease Form City shall comply and verify that its contractors comply with all other Federal and State of California laws for minimum wage, overtime pay, record keeping, and child labor standards pursuant to the servicing of the Premises or terms and conditions of this Lease. Notwithstanding the minimum wage requirements provided for in this Clause, City, where applicable, shall comply with the prevailing wage and related requirements, as provided for in Clause 33 (LABOR CODE COMPLIANCE) of this Lease. 35. SIGNAGE (4.2 SR) City may install and maintain wayfinding and golf course signs upon or in front of the Premises. Such signage must comply with all applicable laws, zoning, and site plan requirements. All other signs to be placed on the Premises require prior review and approval by D istrict. 36. AUTHORITY (4.3 SR) The persons executing this Lease on behalf of District and City warrant that they have the power and authority to bind District or City, as applicable, to this Lease. 37. LEASE ORGANIZATION (4.4 SR) The various headings in this Lease, the numbers thereof, and the organization of the Lease into separate sections and paragraphs are for purposes of convenience only and shall not be considered otherwise. 38. SUCCESSORS IN INTEREST (4.5 SR) Unless otherwise provided in this Lease, the terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the Parties hereto, all of whom shall be jointly and severally liable hereunder. 39. AMENDMENT (4.6 SR) This Lease sets forth the entire agreement between District and City regarding the Premises and no other prior or contemporaneous agreement or understanding, written or oral, shall be effective. Any modification of this Lease must be in the form of a written amendment. 40. PARTIAL INVALIDITY (4.7 SR) If any term, covenant, condition, or provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. 41. WAIVER OF RIGHTS (4.8 SR) The failure of City or District to insist upon strict performance of any of the terms, conditions, 3/2/2026 Page 24 of 41 Lease Number Agency/Program Standard Revenue Lease Form and covenants in this Lease shall not be deemed a waiver of any right or remedy that City or District may have and shall not be deemed a waiver of any right or remedy for a subsequent breach or default of the terms, conditions, and covenants herein contained. 42. HOLDING OVER (4.9 SR) In the event City shall continue in possession of the Premises after the term of this Lease, such possession shall not be considered a renewal of this Lease but a tenancy from month to month and shall be governed by the conditions and covenants contained in this Lease, subject to termination by the District as provided herein. 43. EARTHQUAKE SAFETY (5.0 SR) City District offers no warranties or representations whatsoever that the Premises is or has been in compliance with applicable seismic safety regulations and building codes at the time of construction. All such seismic, safety and building regulation compliance is the responsibility of the City. 44. QUIET ENJOYMENT (5.1 SR) District agrees that, subject to the terms, covenants and conditions of this Lease, City may, upon observing and complying with all terms, covenants and conditions of this Lease, peaceably and quietly occupy the Premises. 45. GOVERNING LAW AND VENUE (5.3 SR) This agreement has been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the Parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure section 394. 46 SA) In the event of a dispute between City and District concerning claims arising out of this Lease, or in any action or proceeding brought to enforce or interpret any provision of this Lease or where any provision hereof is validly asserted as a defense, each Party shall bear its own attorney fees and costs. 47. TIME (5.5 SR) Time is of the essence of this Lease. Failure to comply with any time requirements of this Lease shall constitute a material breach of this Lease. 48. INSPECTION OF PREMISES BY A CERTIFIED ACCESS SPECIALIST (5.6 SR) A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards 3/2/2026 Page 25 of 41 Lease Number Agency/Program Standard Revenue Lease Form under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or Lessor may not prohibit the City from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of City, if requested by the City. The Parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the Premises. Pursuant to California Civil Code 1938, District hereby represents that the Premises has not undergone an inspection by a certified access specialist, and no representations are made with respect to compliance with accessibility standards. If it is determined during this tenancy that a violation of handicapped access laws (including the Americans with Disabilities Act) exists at the Premises, City shall correct such non-compliance at Citycost. 49. FORCE MAJEURE (5.7 SR) Force Majeure are beyond the control of either Party: act of God, unavailability of equipment or materials (but only if such equipment and materials were ordered in a timely fashion), enemy or terrorist act, act of war, riot or civil commotion, strike, lockout or other labor disturbance, fire, earthquake, explosion, governmental delays (including nonstandard delays in issuance of any permit or other necessary governmental approval or the scheduling of any inspections or tests), and nonstandard delays by third party utility providers beyond the reasonable control of the Party delayed or failing Best Efforts such event (a) as it is occurring and (b) after it has occurred, to prevent or minimize any resulting delay to the greatest extent possible. Force Majeure shall not include inability to obtain financing or other lack of funds. Lessor and District shall be excused for the period of any delay in the performance of any obligation hereunder when such delay is occasioned by causes beyond its control. 50. CONDEMNATION (5.8 SR) If the Premises or any portion thereof are taken under the power of eminent domain or sold under Condemnation terminate as to the part of the Premises taken as of the date the condemning authority takes title or possession, whichever first occurs. If all or a material portion of the rentable area of the Premises are taken by Condemnation, City may, at City ten (10) days after District shall have given City written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. District shall also have the right to terminate this Lease if there is a taking by Condemnation of any portion of the building or property that would have a material adverse effect on District operate the remainder of the building. If neither Party terminates this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of District, whether such award shall be made as compensation for diminution in value 3/2/2026 Page 26 of 41 Lease Number Agency/Program Standard Revenue Lease Form of the leasehold, the value of the part taken or severance damages. City hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure, or any similar or successor Laws. 51. CONSENT OR APPROVAL (5.9 SR) Unless expressly stated otherwise, where the consent or approval of a Party is required, such consent or approval will not be unreasonably withheld, conditioned or delayed. 52. UNENFORCEABLE PROVISIONS (6.0 SR) If any paragraph or clause hereof shall be determined illegal, invalid or unenforceable, it is the express intention of the Parties hereto that the remainder of the Lease shall not be affected thereby, and it is also the express intentions of the Parties hereto that in lieu of each paragraph or clause of this Lease which may be determined to be illegal, invalid or unenforceable, there may be added as a part of this Lease a paragraph or clause as similar in terms to such illegal or invalid or unenforceable paragraph or clause as may be possible and may be legal, valid and enforceable. City shall at all times comply with restrictions on operational hours established by local ordinances or regulations. City agrees that when alternate forms of packaging are available, only items packaged in a manner most compatible with the goals of reducing litter and preserving the environment shall be sold. Sale of beverages in pop-top cans or in non-returnable metal or glass containers shall not be permitted. Recyclable, push-top type beverage containers may be permitted subject to approval by the Director. City agrees that it will operate and manage the services and facilities offered in a competent and efficient manner at least comparable to other well managed operations of similar type. CityClause shall constitute a City Default of this Lease and District may immediately terminate this Lease. 54. LIMITATION OF THE LEASEHOLD (6.2 SR) This Lease and the rights and privileges granted City in and to the Premises are subject to all covenants, conditions, restrictions, and exceptions of record or apparent. Nothing contained in this Lease or in any document related hereto shall be construed to imply the conveyance to City of rights in the Premises, which exceed those, owned by District, or any representation or warranty, either express or implied, relating to the nature or condition of the Premises or District therein. City has accepted the Premises in its 55. PERMITS AND LICENSES (6.3 SR) City shall be required to obtain any and all approvals, permits and/or licenses which may be required in connection with the operation of the Premises as set out herein. No permit, approval, or consent given hereunder by District, in its governmental capacity, shall affect or limit City obligations hereunder, nor shall any approvals or consents given by District, as a party to this Lease, be deemed approval as to compliance or conformance with applicable governmental codes, laws, rules, or regulations. 3/2/2026 Page 27 of 41 Lease Number Agency/Program Standard Revenue Lease Form 56. PAYMENT CARD COMPLIANCE (6.4 SR) Should City conduct credit/debit card transactions in conjunction with their business with the District, on behalf of the District, or as part of the business that they conduct, City covenants and warrants that it is currently Payment Card Industry Data Security Standard () and Payment Application Data Security Standard () compliant and will remain compliant during the entire duration of this Lease. City agrees to immediately notify District in the event City should ever become non-compliant and will take all necessary steps to return to compliance and shall be compliant within ten (10) days of the commencement of any such interruption. 57. NONDISCRIMINATION (6.5 SR) City agrees not to discriminate against any person or class of persons by reason of sex, age, race, color, creed, physical handicap, or national origin in employment practices and in the activities conducted pursuant to this Lease. City shall make its accommodation and services available to the public on fair and reasonable terms. 58. CONDITION OF PREMISES UPON TERMINATION (6.6 SR) Except as otherwise agreed to herein, upon termination of this Lease, City shall re-deliver possession of said Premises to District in substantially the same condition that existed upon execution of this lease, reasonable wear and tear, County approved construction or modifications, flood, earthquakes, war, and any act of war, excepted. References to the "termination of the Lease" in this Lease shall include termination by reason of the expiration of the lease term. 59. QUITCLAIM OF CITY'S INTEREST UPON TERMINATION (6.8 SR) Intentionally deleted 60. DISTRICTS RIGHT TO RE-ENTER (PMGE23.1 S) City agrees to yield and peaceably deliver possession of the Premises to District on the date of termination of this Lease, whatsoever the reason for such termination. Upon giving written notice of termination to City, District shall have the right to re-enter and take possession of the Premises on the date such termination becomes effective without further notice of any kind and without institution of summary or regular legal proceedings. Termination of the Lease and re-entry of the Premises by District shall in no way alter or diminish any obligation of City under the lease terms and shall not constitute an acceptance or surrender. 61. PUBLIC RECORDS (6.9 SR) Any and all written information submitted to and/or obtained by District from City or any other person or entity having to do with or related to this Lease and/or the Premises, either pursuant to this Lease or otherwise, at the option of District, may be treated as a public record open to inspection by the public pursuant to the California Records Act (Government Code Section 6250, et seq.) as now in force or hereafter amended, or any Act in substitution thereof, or otherwise made available to the public and City hereby waives, for itself, its agents, employees, and any person 3/2/2026 Page 28 of 41 Lease Number Agency/Program Standard Revenue Lease Form claiming by, through or under City, any right or claim that any such information is not a public record or that the same is a trade secret or confidential information and hereby agrees to indemnify and hold District harmless from any and all claims, demands, liabilities, and/or obligations arising out of or resulting from a claim by City or any third party that such information is a trade secret, or confidential, or not subject to inspection by the public, including without limitation reasonable attorneys' fees and costs. 62. RELATIONSHIP OF PARTIES (7.0 SR) The relationship of the Parties hereto is that of Lessor and Lessee, and it is expressly understood and agreed that District does not in any way or for any purpose become a partner of or a joint venturer with City in the conduct of City and the agreements relating to rent payable hereunder are included solely for the purpose of providing a method by which rental payments are to be measured and ascertained. 63. NO BROKERS USED (7.1 SR) Neither Party has employed any broker or finder or incurred any liability for any brokerage fee, contemplated by this Lease. 64. NOTICES (7.2 SR) All written notices pursuant to this Lease shall be addressed as set forth below or as either Party may hereafter designate by written notice and shall be deemed received upon personal delivery, delivery by facsimile machine, electronic mail, or seventy-two (72) hours after deposit in the United States Mail. TO: CITY TO: DISTRICT City of Santa Ana Orange County Flood Control District Attn: City Clerk Attn: Director, Flood Programs 200 S. Santa Ana Blvd. c/o County of Orange rd Santa Ana, CA 92805 601 N. Ross Street 3 Floor Santa Ana, CA 92701 With a copy to: With a copy to: City of Santa Ana County Executive Office/Real Estate Attn: Director of Community Services County of Orange th 200 S. Santa Ana Blvd, 4 Floor 400 W. Civic Center Drive, 5th Floor Santa Ana, CA 92805 Santa Ana, CA 92701 Attn: Chief Real Estate Officer OC Operations & Maintenance Attn: Maintenance Programs 2301 N. Glassell St. Orange, CA 92865 3/2/2026 Page 29 of 41 Lease Number Agency/Program Standard Revenue Lease Form 65. ATTACHMENTS TO LEASE (7.3 SR) This Lease includes the following, which are attached hereto and made a part hereof: I. Exhibit A Legal Description of Premises II. Exhibit B Map Depicting Premises III. Exhibit C Best Management Practices IV Exhibit D Estoppel Certificate 3/2/2026 Page 30 of 41 Lease Number Agency/Program Standard Revenue Lease Form IN WITNESS WHEREOF, the Parties have executed this Lease the day and year first above written. CITY City of Santa Ana, a municipal corporation and charter city Date By: Alvaro Nunez City Manager APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY SANTA ANA, CALIFORNIA By Jonathan T. Martinez Assistant City Attorney Date 3/2/2026 Page 31 of 41 Lease Number Agency/Program Standard Revenue Lease Form APPROVED AS TO FORM: DISTRICT OFFICE OF DISTRICT COUNSEL Orange County Flood Control District ORANGE DISTRICT, CALIFORNIA By: Name: Thomas A. Miller By Per M.O. _________________________ Deputy Date 3/2/2026 Page 32 of 41 Lease Number Agency/Program Standard Revenue Lease Form EXHIBIT A LEGAL DESCRIPTION OF PREMISES 3/2/2026 Page 33 of 41 Lease Number Agency/Program Standard Revenue Lease Form 3/2/2026 Page 34 of 41 Lease Number Agency/Program Standard Revenue Lease Form 3/2/2026 Page 35 of 41 Lease Number Agency/Program Standard Revenue Lease Form 3/2/2026 Page 36 of 41 Lease Number Agency/Program Standard Revenue Lease Form 3/2/2026 Page 37 of 41 Lease Number Agency/Program Standard Revenue Lease Form NOT TO BE RECORDED 3/2/2026 Page 38 of 41 Lease Number Agency/Program Standard Revenue Lease Form EXHIBIT B The Premises leased here under are described in the legal description attached hereto as Exhibit A. The aerial map attached hereto as Exhibit B depicts a boundary outlining the general area associated with the Premises for operational and maintenance purposes only. City shall be responsible for maintenance, repair, and upkeep of all the land and improvements located within the boundary shown on Exhibit B including areas that may fall outside the legal description of the Premises in Exhibit A Notwithstanding the foregoing City shall have no maintenance, repair, or operational responsibility for that portion of the public trail located within the boundary shown on Exhibit B which shall remain the responsibility of Orange County Parks. 3/2/2026 Page 39 of 41 Lease Number Agency/Program Standard Revenue Lease Form EXHIBIT C Best Management Practices ("BMPs" Fact Sheets) City shall be responsible for implementing and complying with all BMP Fact Sheet requirements that apply to this Citys operations. City is to be aware that the BMP Clause within this Lease, along with all related BMP Exhibits, may be revised, and may incorporate more than what is initially being presented in this Lease. Suggested BMPs Fact Sheets may include, but may not be limited to, the following list shown below and can befound at: http://ocwatersheds.com/documents/bmp (website may change from time to time): SC42 Building Repair and Construction SC40 Contaminated or Erodible Surface Areas SC41 Building and Grounds Maintenance SC30 Outdoor Loading/ Unloading SC32 Outdoor Equipment Operations SC33 Outdoor Storage of Raw Materials SC43 Parking / Storage Area Maintenance SC11 Spill Prevention Control and Clean up SC34 Waste Handling and Disposal SC10 Non Stormwater Discharges 3/2/2026 Page 40 of 41 Lease Number Agency/Program Standard Revenue Lease Form EXHIBIT D Facility Number Location Name: River View Golf Course, ESTOPPEL CERTIFICATE TO: As of the date of this Estoppel Certificate the undersigned, as a lessee under that lease dated _________________________, between Orange County Flood Control District ("L essor") and the __________________________________________________ (City, does hereby acknowledge the following: 1. The aforesaid lease, subject to article 2 below, constitutes the entire agreement between L essor and City and is in full force and effect. 2. (Check One) The aforesaid lease has not been modified, altered, or amended. The aforesaid lease has been modified pursuant to that document(s) attached hereto. 3. The term of the lease is Twenty Five (25) years. The lease commenced on ______________________ and will expire on _________________________. 4. The term of the lease is subject to City option to terminate/extend as follows: Five (5) Five-year (5) year mutual options. Termination Upon by either Party without cause upon 180 day advance notice to the other Party. 5. The lease rental rate is $200,000 per year, plus additional rent as described in Clause 9 (RENT) no rent has been paid in advance except as set forth in the lease, and City has received no notice of a prior assignment, hypothecation, or pledge of the lease from L essor. 6. City has accepted and is now in possession of the leased premises. 7. The addresses for notices to be sent to City are set forth in Clause 64 (NOTICES) of the lease. 8. City has no charge, lien, or claim of offset under this lease against rents or other charges due or to become due and, to the actual knowledge of City is not now in default under the lease. CITY City of Santa Ana, a municipal corporation and charter city By: Its:_____________________________________ Certificate Date: 3/2/2026 Page 41 of 41 Lease Number Agency/Program Standard Revenue Lease Form Parks, Recreation, and Community Services www.santa-ana.org/parks Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Golf Course Equipment AGENDA TITLE Purchase Order to River View Golf, LLC for Existing River View Golf Course Equipment in Connection with the River View Golf Course Management Transition (General Fund) RECOMMENDED ACTION Authorize a Purchase Order to River View Golf, LLC for the existing River View Golf Course equipment in an amount not to exceed $154,825. GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION As part of the City’s transition of operations at River View Golf Course to Santa Ana Golf, LLC (a wholly owned subsidiary of CourseCo, Inc.), staff evaluated the existing golf course equipment to ensure uninterrupted golf course maintenance and operations upon the operational transition on May 1, 2026. The current operator has offered to sell the existing golf course equipment fleet “as-is” for $154,825. Staff, in coordination with the incoming management company CourseCo, industry equipment vendors including Toro representatives, and additional outreach to equipment suppliers and industry professionals, reviewed the equipment inventory and market resale benchmarks to confirm that the agreed-upon sale price reflects fair market value. The estimated replacement cost for a comparable new equipment fleet is approximately $1.9 million to $2.0 million. Based on resale benchmarks for comparable Toro, John Deere, Cushman, Ryan, and other specialty turf equipment units, the offered price represents approximately 8% of full new replacement value and is estimated to be $100,000 to $150,000 below conservative secondary market value if sold individually. Based on staff inspection of the equipment, consultation with the incoming management company, and a review of the fleet’s preventive maintenance history, staff anticipates Golf Course Equipment April 7, 2026 Page 2 that the majority of the equipment will remain operational for several additional years before phased replacement becomes necessary. While portions of the fleet may require phased replacement over time, the purchase price remains significantly below conservative market resale value and well below the estimated cost of replacing the fleet with new equipment. To mitigate operational and financial risk, staff will implement: Mechanical inspections in coordination with the incoming management company Detailed equipment condition and usage reports Identification of immediate and near-term replacement priorities Development of a structured five-year capital replacement plan The incoming management company will participate directly in inspection validation and replacement planning to ensure the fleet supports operational standards from day one. Santa Ana Municipal Code, Section 2-807(a), authorizes the City to make non-bid purchases of services, supplies, materials, and equipment whenever it shall appear that there is only one reasonably available source or where solicitation of bids would for any reason be an idle act. ENVIRONMENTAL IMPACT The proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 – Existing Facilities), as the purchase of maintenance equipment involves no expansion of use and supports ongoing operation of an existing public facility. FISCAL IMPACT Funds are available and budgeted in the following account for the specified year: Fiscal YearAccounting Unit-Fund Accounting Unit, Amount Account #DescriptionAccount Description FY 25-2601113017-66400General FundPRCSA-Service $154,825 Enhancement, Machinery & Equipment EXHIBIT(S) 1.Equipment Inventory and Valuation Summary (FFE Spreadsheet) Submitted By: Hawk Scott, Executive Director of Parks, Recreation, and Community Services Approved By: Alvaro Nuñez, City Manager FF&E List GOLF COURSE ItemApplicationSerial NumberPrice Toro GroundsMaster 3200Rough Mower31901-407862173$ 10,000.00 Toro ReelMaster 6500Fairway Mower03803-80232$ 2,500.00 Toro Sand ProSand Trap Rake08705-26000217$ 2,000.00 Toro Multi Pro 1100Primary Sprayer41105-70173$ 1,000.00 Cushman 1200XMaintenance CartEZGLBAZACK 06393$ 2,500.00 Cushman 1200XRange CartEZGLEABACJ3329952$ 1,500.00 Cushman 1200XMaintenance CartEZGLEVABACK3406393$ 2,500.00 Toro WorkmanMaintenance Cart07279-312000783$ 500.00 Cushman Hauler 800Irrigator Cart 2785565$ 1,750.00 Toro WorkmanMaintenance Cart (Ful)07279-31000817$ 300.00 Toro WorkmanMaintenance Cart (Tony)07279-312060781$ 500.00 Toro WorkmanMaintenance Cart (Eberto)07253-200000536$ 2,000.00 Honda Rancher4WD ATV General Maintenance/Fertilizing1HFTE40E7M4700006$ 4,000.00 Ryan Greensaire 24Greens Aerifier90500951$ 2,000.00 Toro GreensMaster 3150Greens (Non-Op) Parts Machine$ 500.00 Toro GreensMaster 315011 Blade Greens Mower04357-230001824$ 7,000.00 Toro GreensMaster 3150Tee Mower04357-260000932$ 7,000.00 Toro ReelMaster 6500Fairway Mower03807-240000317$ 1,000.00 Toro GroundsMaster 328DRough Mower30627-220000277$ 1,500.00 Simon MP60 60' Aerial LiftNet and Lighting Maintenance 60' Boom LiftD404$ 2,500.00 Toro ReelMaster 3100DGreen Surrounds and Approaches Mower03170-314000145$ 4,000.00 Toro Verticutting Units 5 Units for Toro Reelmaster 6500D03872-250000321$ 2,500.00 Massey Ferguson 50EXRiver Grading Loader/Grader Tractor585761936$ 8,000.00 Massey Ferguson 50EXRiver Grading Loader/Grader Tractor (IDLE)515752326$ 2,000.00 John Deere 210LELoader/Scraper TractorTO210LE885892$ 20,000.00 John Deere 300Fairway Implement TractorT4P3C117953T$ 2,500.00 FMC John Bean Towable Landscape Sprayer$ 250.00 John Deere Blower3-point Hitch Leaf Blower$ 250.00 Toro Walking Rotary MowerCommercial Mower for Clubhouse Turf22289-407222894$ 250.00 Mete-R-Matic F15BTopDresser85417 E02103$ 4,000.00 Ryan Walking AerifierCollar Aerifier$ 500.00 Ryan SodcutterSodcutter544845$ 500.00 Lily SpreaderTowable Fairway Spreader$ 250.00 Ryan RenovaireTowable Tine Fairway Aerifier544317$ 2,000.00 Ryan RenovaireTowable Knife Fairway Aerifier$ 250.00 Toro GreensMaster 1000Walking Greens Mower04052-210002897$ 2,500.00 Toro Greensmaster 1000Walking Greens Mower04052-210002846$ 2,200.00 EZ-GO TXTElectric Mechanics Cart2591292$ 1,000.00 Turbo VacSweeper (tees)$ 500.00 TrueSurfaceVibratory Greens Rollers$ 1,500.00 Neary 500SRSpin/Relief Grinder563$ 3,000.00 Foley United 3084 ABedKnife Grinder19A38401035$ 2,500.00 Schmeiser 4' CultipackerTow Behind Cultipacker$ 1,500.00 Schmeiser 8' CultipackerTow Behind Cultipacker$ 500.00 Lincoln K1170Stick Welder AC225$ 150.00 Ford F800Dump Truck (off-road only)1FDXK84NXFVA19031$ 2,000.00 IngersolRandShop CompressorS16101111$ 500.00 Honda 4500WPortable Generator$ 500.00 ECHO CS355TChain Saw 12"$ 200.00 ECHO CS303TChain Saw 12"$ 175.00 ECHO CS450Chain Saw 18"$ 250.00 ECHO CS600PChain Saw 28"$ 300.00 ECHO SRM280TString Trimmer$ 200.00 TMC TLE33FAString Trimmer88622$ 150.00 BigM245G2-Stroke Hedge Trimmer$ 175.00 Rigid R7102Hand Drill$ 50.00 Drill Press5 Speed Bench Drill Press$ 50.00 GordonMetal Detector$ 50.00 Whites PRL-1Metal Detector$ 50.00 Fimco SprayerATV Mount Sprayer$ 50.00 MultiQuip4" Trash Pump$ 200.00 FF&E List GOLF COURSE ItemApplicationSerial NumberPrice MultiQuip2" Trash Pump$ 100.00 DeWalt DCF8991/2" 3-Speed Impact Driver$ 175.00 Dewalt DCF8091/4" Impact Driver$ 75.00 BoosterPac ES5000Portable 12V Power Supply/Jumper$ 75.00 Napa 85-1250Battery Charger$ 50.00 Oxygen/Acetylene Gas PlantWeld and Cut Steel$ 150.00 DynaGloPortable Space Heater$ 100.00 RainBird 70 Irrigation SprinklersMultiple 1" Brass Impacts Full and Part Circle$ 1,500.00 Monster Mat - Quantity 26Golf Range Mats purchased new 12/19/2025$ 10,000.00 MISCELLANEOUS MECHANICS TOOLS R&RHeight of Cut Gauges$ 50.00 ToroSpecial Tools for Toro Mowers$ 200.00 R&RRoller Bearing Puller$ 100.00 Socket SetExtra Large Socket Set$ 50.00 Carlyle/NapaFloor Jack$ 50.00 CART BARN/RANGE Carry-All IIBeverage CartEG9844-710560$ 2,500.00 LIV ProsperLithium Marshall Cart 100Ah$ 1,000.00 LIV ProsperLithium Staff Cart 60Ah10060$ 3,000.00 P2 P2BWRange Ball Washer$ 500.00 P2 Picker PlusRange Ball Picker$ 1,000.00 Boyce Pressure WasherCart Pressure Washer$ 600.00 NIBLICK RESTAURANT Star Broil-O-Dog 8A-175CBAHot Dog BroilerHB175A1219G0276$ 1,000.00 True T-232 Door Reach-in Cooler8657982$ 2,500.00 Arctic Air Model CF133Commercial FreezerWB13902053$ 100.00 Ice-O-Matic CIM0836HACommercial Ice Maker18051280010333$ 2,000.00 True TSSU-48-12-ADAFood Prep Table7835853$ 1,400.00 Delfield 7048-MRefridgerated Display Case$ 250.00 Supera G1M-23-B-1Glass-Front Cooler12193100001$ 1,000.00 True GDM-23-H2-TSL01Glass-Front Cooler10701565$ 1,200.00 Caravel 195-937Ice Cream Display Freezer93252163$ 100.00 Hobart Model 1612Meat Slicer56-808-033$ 750.00 Cooler Depot 40024-60-HCBeer Keg Cooler/Tapper6190332118060610$ 1,000.00 CCH YPF1-12CPortable Air Conditioner11111291-0184-170225$ 50.00 Desktop PCTouchscreen F&B POS$ 350.00 OFFICE/GOLF SHOP Desktop PC x 33 POS PC's with monitors$ 600.00 ENS9 Camera Digital Video Security System$ 700.00 Callaway XR8 Rental Golf Club Sets$ 500.00 Total$ 154,825.00 Parks, Recreation, and Community Services www.santa-ana.org/parks Item # 10 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Approve the Facility Use Agreement with Orange County Gold (“OC Gold”) for Aquatics Programming at City Aquatic Facilities AGENDA TITLE Facility Use Agreement with Orange County Gold for Competitive Youth Swim Team Programming at Designated City Aquatics Facilities RECOMMENDED ACTION Authorize the City Manager to execute a facility use agreement with Orange County Gold (“OC Gold”) for aquatics programming at designated City aquatic facilities, for a term beginning May 1, 2026, and expiring April 30, 2027, with provisions for two (2), one-year extensions (Agreement A-2026-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The City of Santa Ana Parks, Recreation and Community Services Agency (PRCSA) operates public aquatic facilities that provide recreational and instructional swimming opportunities for the community. In addition to City-operated programs, PRCSA periodically partners with qualified aquatics organizations to expand programming opportunities for youth and enhance utilization of City aquatic facilities. OC Gold is a nonprofit aquatics organization serving youth throughout Orange County. Founded in 1989 and previously known as Orange Regional Competitive Aquatics (ORCA), the organization provides year-round aquatic programming including competitive swim team training, swim technique development, and private competitive swimming instruction. OC Gold has extensive experience operating competitive youth swim programs throughout Orange County and is affiliated with USA Swimming, providing structured training opportunities for swimmers of varying skill levels. Partnering with an established aquatics organization allows the City to expand competitive swimming opportunities for youth without the additional staffing, administrative oversight, and operational resources that would be required to develop and manage a City-operated competitive swim team. This approach enables PRCSA to continue focusing on providing broad community Facility Use Agreement with Orange County Gold (“OC Gold”) April 7, 2026 Page 2 aquatics programming, including swim lessons, recreational swim, and water safety education, while leveraging the expertise of a specialized organization to deliver competitive training opportunities. The proposed agreement would allow OC Gold to conduct structured year-round swim team practices and private instructional opportunities at designated City aquatic facilities during scheduled times approved by PRCSA staff. Programming would focus on youth participants and emphasize swimming skill development, water safety, physical conditioning, and sportsmanship. This pilot program will commence in May 2026 at Jerome Pool until the team is able to transition to the new Memorial Park Aquatics Center, once construction is complete. This partnership supports activation of the newly constructed Memorial Park Aquatics Center by introducing structured programming that increases facility utilization and expands recreational opportunities for youth in the community. OC Gold will be responsible for staffing bilingual coaches, participant registration, and program administration. All coaches will be required to meet applicable safety, certification, and insurance requirements established by the City. Additionally, the agreement prohibits OC Gold from conducting unauthorized commercial activities at City facilities. OC Gold will charge monthly dues of $85/participant, in comparison to their $110-$150/month dues in Tustin, Villa Park, and Orange, in order to provide financially accessible programming to the Santa Ana community. The monthly $500 fee assessed by the City will permit OC Gold to use three (3) swimming lanes at either Jerome Pool or Memorial Park Aquatics Center, once available, for approximately 28 hours per month. Additional lanes may be requested at a rate of $17.57 per lane per hour. The proposed rate for non-exclusive use is consistent with industry standards and ensures the City has the flexibility to schedule additional users concurrently under the same framework. Approval of this agreement will expand youth aquatics opportunities, particularly at the newly constructed Memorial Park Aquatics Center, while supporting the City’s ongoing efforts to promote water safety, youth recreation, and community wellness. As this agreement is structured as a proof of concept, the agreement term is limited to a maximum of three (3) years, allowing the City to evaluate demand, participation levels, and overall program viability. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The agreement will generate revenue to the City through established facility use fees, at a base rate of $6,000/year. Additional revenue may be generated based on participation levels and additional facility use times and dates beyond those initially established. Facility Use Agreement with Orange County Gold (“OC Gold”) April 7, 2026 Page 3 The fees charged for permitting facility use will be deposited into the General Fund to help offset related City costs. EXHIBIT(S) 1.Agreement Executive Summary 2.Facility Use Agreement with Orange County Gold (A-2026-XXX) Submitted By: Hawk V. Scott, Executive Director of Parks, Recreation, and Community Services Agency Approved By: Alvaro Nuñez, City Manager Parks, Recreation, and Community Services Agency (PRCSA) Agreement Executive Summary OC Gold Swim Team Facility Use Agreement Highlight of Agreement: One-year pilot agreement with OC Gold Swim Team for the initial development of a homegrown OC Gold-Santa Ana Swim Team PRCSA’s Facility Use agreement with OC GOLD Swim Team will provide the following outcomes: Purpose: Establish a pilot partnership with OC Gold Aquatics to introduce competitive youth swim programming in Santa Ana, with the long-term goal of developing a sustainable, homegrown swim team pipeline while activating the Memorial Park Aquatics Center. Scope of Services: OC Gold will provide structured competitive swim team programming, including coaching, athlete development, and program administration for youth participants at designated City aquatic facilities. The City will provide access to facilities, while maintaining oversight of scheduling and compliance. Compensation / Fiscal Impact: The agreement generates base annual revenue of $6,000/yr, with potential for additional revenue based on expanded facility use and participation levels. Revenues will be deposited into the General Fund to offset operational costs, while minimizing City staffing and program delivery expenses. Term: Initial one-year term (May 1, 2026 – April 30, 2027) with provisions for two one-year extensions, allowing the City to evaluate the program as a scalable pilot. Compliance & Protections: OC Gold is responsible for staffing, certifications, insurance, and program administration, and must meet all City safety and operational requirements. The agreement includes controls on facility use and restrictions on unauthorized commercial activity, ensuring alignment with City policies and risk management standards. Human Resources Department www.santa-ana.org/HR Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Revised Memorandum of Understanding Between the City of Santa Ana and the Santa Ana Police Officers Association AGENDA TITLE Revised Memorandum of Understanding Establishing the Terms and Conditions of Employment for Classifications Represented by the Santa Ana Police Officers Association (POA) RECOMMENDED ACTION Authorize the City Manager to execute a revised Memorandum of Understanding (MOU) between the City of Santa Ana and the Santa Ana Police Officers Association (POA) for the period of January 1, 2024 through June 30, 2027, modifying and delineating specific articles of the MOU (Agreement No. 2026-XXX). GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The City Council approved a Memorandum of Understanding (MOU) between the City of Santa Ana and the Santa Ana Police Officers Association (POA) on June 16, 2024. The City and POA now desire to alter a few items in the MOU. Articles 5.0 and 6.0 of the MOU outlines assignment and other special pay additives. On May 28, 2025, Council approved the creation of the Correctional Officer II classification. To reflect the new classification, the City and POA have agreed to update Article 5.0. This would create a promotional opportunity for Correctional Officers to advance from Correctional Officer I to Correctional Officer II. Also, the City and POA have agreed to provide a new pay premium of 2.5% for Jail Transportation Officers. Correctional Officers are required at times to transport inmates; the City and POA desire to provide additional pay for those Correctional Officers that obtain the certification required and who are regularly assigned to this duty. In addition, this revised MOU language will clarify that the current pilot premium would also apply to fixed wing aircraft pilots. The City has received multiple letters from CalPERS questioning if specific assignment pays and special additives should be considered pensionable. The proposed changes would clarify the various requirements for the assignment pays and special additives where applicable and clarify the language to meet CalPERS questions matching the intent Revised Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Officers Association April 7, 2026 Page 2 of both the City and the POA. The updated language does not alter the intent of the MOU nor the past practice of implementing the MOU. ENVIRONMENTAL IMPACT There is no environmental impact associated with these actions. FISCAL IMPACT The estimated annual cost of the agreement for FY25-26 is $18,886 for the jail transport premium and fixed wing pilot premium. Funds are available for expenditure in the Fiscal Year 2025-2026 budget. Funding for subsequent years will be included in the proposed budgets for City Council consideration. EXHIBIT 1.Revised Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Officers Association Submitted By:Lori Schnaider, Executive Director of Human Resources Approved By:Alvaro Nuñez, City Manager MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA POLICE OFFICERS ASSOCIATION JANUARY 1, 2024 – JUNE 30, 2027 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA POLICE OFFICERS ASSOCIATION FOR 2024-2027 TABLE OF CONTENTS ARTICLE I ..................................................................................................................................... 1 1.0 RECOGNITION ................................................................................................................... 1 ARTICLE II .................................................................................................................................... 2 2.0 NON-DISCRIMINATION CLAUSE ................................................................................... 2 ARTICLE III ................................................................................................................................... 3 3.0 ATTENDANCE, WORK PERIOD, WORK SCHEDULE & WORKDAY ........................ 3 ARTICLE IV .................................................................................................................................. 8 4.0 SALARIES ........................................................................................................................... 8 ARTICLE V .................................................................................................................................. 12 5.0 ASSIGNMENT AND OTHER SPECIAL PAY ADDITIVES .......................................... 12 ARTICLE VI ................................................................................................................................ 20 6.0 CAREER DEVELOPMENT PROGRAM ......................................................................... 20 ARTICLE VII ............................................................................................................................... 24 7.0 TRAINING AND EDUCATIONAL ASSISTANCE PROGRAM .................................... 24 ARTICLE VIII .............................................................................................................................. 27 8.0 OVERTIME ........................................................................................................................ 27 ARTICLE IX ................................................................................................................................ 35 9.0 HOLIDAYS ........................................................................................................................ 35 ARTICLE X .................................................................................................................................. 38 10.0 VACATION ...................................................................................................................... 38 ARTICLE XI ................................................................................................................................ 42 11.0 OTHER LEAVES OF ABSENCE.................................................................................... 42 ARTICLE XII ............................................................................................................................... 49 12.0 EMPLOYEE INSURANCE ............................................................................................. 49 ARTICLE XIII .............................................................................................................................. 51 13.0 RETIREMENT ................................................................................................................. 51 ARTICLE XIV.............................................................................................................................. 55 14.0 ASSOCIATION LEAVE .................................................................................................. 55 ARTICLE XV ............................................................................................................................... 58 15.0 RESIDENCY .................................................................................................................... 58 i ARTICLE XVI.............................................................................................................................. 59 16.0 DISCIPLINE ..................................................................................................................... 59 ARTICLE XVII ............................................................................................................................ 62 17.0 GRIEVANCE REVIEW PROCEDURE .......................................................................... 62 ARTICLE XVIII........................................................................................................................... 64 18.0 DUES DEDUCTION AND INDEMNIFICATION......................................................... 64 ARTICLE XIX.............................................................................................................................. 65 19.0 CITY RIGHTS .................................................................................................................. 65 ARTICLE XX............................................................................................................................... 67 20.0 STRIKES AND WORK STOPPAGES ............................................................................ 67 ARTICLE XXI.............................................................................................................................. 68 21.0 LAYOFFS ......................................................................................................................... 68 ARTICLE XXII ............................................................................................................................ 69 22.0 SOLE AND ENTIRE AGREEMENT .............................................................................. 69 ARTICLE XXIII........................................................................................................................... 70 23.0 WAIVER OF BARGAINING DURING THE TERM OF THIS MOU .......................... 70 ARTICLE XXIV ........................................................................................................................... 71 24.0 SEPARABILITY PROVISION ........................................................................................ 71 ARTICLE XXV ............................................................................................................................ 72 25.0 TERM OF MOU ............................................................................................................... 72 EXHIBIT A ................................................................................................................................... 75 MONTHLY WAGE RATE SCHEDULE ................................................................................ 75 EXHIBIT B................................................................................................................................... 79 UNIFORM ALLOWANCE BY CLASSIFICATION .............................................................. 79 EXHIBIT C................................................................................................................................... 80 HEALTH PLAN AGREEMENT ............................................................................................. 80 ii ARTICLE I 1.0 RECOGNITION 1.1 Pursuant to the provisions of the Meyers-Milias-Brown Act, Government Code Section 3500, et seq., the City of Santa Ana (hereinafter called the "City") has recognized the Santa Ana Police Officers Association (herein called the "Association" or “SAPOA”) as the recognized representative of the bargaining unit which includes full-time police department employees in the sworn, "safety-member" classifications and full-time police department employees in the non-sworn, "miscellaneous-member" classifications listed in Exhibit A, as well as such classifications as may be added hereafter by resolution of the City Council. All other classifications not specifically listed in Exhibit A or added to this Association via resolution to the City Council are excluded from representation by the Association. 1 ARTICLE II 2.0 NON-DISCRIMINATION CLAUSE 2.1 The City and Association agree that they shall not discriminate against any employee in violation of State or Federal law. The City and the Association shall meet and modify any provisions of this MOU that are inconsistent with the law. 2 ARTICLE III 3.0 ATTENDANCE, WORK PERIOD, WORK SCHEDULE & WORKDAY 3.1 Attendance. Employees covered by this MOU shall be in attendance at their work location during hours prescribed by the Police Chief or theirdesignee(s) and shall not absent themselves during prescribed hours without approval of the Police Chief or their designee(s). 3.2 Definitions. A. Standard Work Period. The Standard Work Period shall consist of a consecutive seven (7) day, one hundred sixty-eight (168) hour period. B.Alternative Work Period-207(k) Exempt Employees. TheAlternative Work Period shall apply to all members of the Association who are peace officers, Correctional Officers I and II or Correctional Supervisors who are subject to the partial overtime exemption provided by the Fair Labor Standards Act (FLSA) pursuant to Section 207(k). The 207(k) employees’ Work Period shall consist of a consecutive twenty- eight (28) day, six hundred seventy-two (672) hour time period. In conformance with the FLSA, members who are peace officers, Correctional Officers I and II, or correctional supervisors shall not be eligible for FLSA overtime, as defined under the FLSA for employees assigned to the Alternate Work Period until they have worked in excess of one hundred seventy-one (171) hours in the Alternate Work Period. Nothing in this section shall prevent a peace officer, Correctional Officer I and II or correctional supervisor from earning overtime and being compensated for overtime based on the overtime provisions as stated in Article VIII of this MOU. All overtime shall be paid at one and one-half (1 1/2) times the regular rate of pay. Regular Rate of Pay: Shall mean the base rate of pay and any Assignment and Other Special Pay Additives, Career Development Program Pay, Call-Back-Duty and Court Appearance pay as listed in Article V, VI and VIII. C.Work Hours. Work hours are the regularly scheduled hours of work as determined by the Police Chief or theirdesignee. A “day” is defined as any consecutive twenty- four (24) hour period. D. Work Schedules. The Police Chief has established the following work schedules. These schedules may be changed by the Police Chief based on operational need. The City will negotiate over any impacts of schedule changes. 1. Standard Work Period Schedules. a. 5/40 Work Schedule. Employees shall work five (5) eight(8) hour workdays per seven (7) consecutive days, one hundred sixty-eight (168) hour Standard Work Period. Each workday shall consist of eight (8) hours of work and a thirty (30) minute unpaid meal period. 5/40 work schedules for employees may be an option if approved by their supervisor/manager. 3 b. 4/10 Work Schedule. Employees shall work four (4) ten (10) hour days per seven (7) consecutive days, one hundred sixty-eight (168) hour Standard Work Period. Each workday shall consist of ten (10) hours of work, and either a thirty (30) minute or one (1) hour unpaid meal period. The determination as to a thirty (30) minute or one (1) hour unpaid meal period shall be made by the Police Chief or their designee. c. 9/80 Work Schedule. Employees shall work alternate weeks of four (4) consecutive workdays nine (9) consecutive hours each followed by five (5) consecutive workdays, four (4) of which consist of nine (9) consecutive hours each and one (1) day of eight (8) consecutive hours during each one hundred sixty-eight (168) hour Standard Work Period. Each nine (9) hour workday shall consist of nine (9) hours of work and either a thirty (30) minute or one (1) hour unpaid meal period. For employees who work a 9/80 work schedule, their FLSA work period shall begin exactly four (4) hours after the start time of their eight (8) hour workday. The eight (8) hour workday shall be divided by either a thirty (30) minute or one (1) hour unpaid meal period. The determination as to a thirty (30) minute or one (1) hour unpaid meal period shall be made by the Police Chief or their designee. d. 12/40 Work Schedule. Employees shall work three (3) twelve (12) hour and thirty (30) minute workdays and one (1) four hour workday in each seven (7) consecutive day, one hundred sixty-eight (168) hour Standard Work Period. Each workday shall consist of eleven (11) hours and thirty (30) minutes of work, and a one (1) hour meal period, thirty (30) minutes of which shall be paid and thirty (30) minutes of which shall be unpaid, for a total of twelve (12) hours and thirty (30) minutes. The four (4) hour workday shall consist of four (4) hours of work. Employees who work this shift actually work an eight (8) hour shift where their FLSA work period shall end exactly four (4) hours after the start time of their shift. This way the second four (4) hours of the shift is worked in the next FLSA work period. This ensure that the employee is schedule to work forty (40) hours in each work period. 2. Alternate Work Period Schedules-207(k) Exempt Employees. a. 207(k) 3/12.5 Work Schedule – Patrol/Canine. Employees shall work thirteen (13) twelve (12) hour and thirty (30) minute workdays in each twenty eight (28) day FLSA Work Period. Of the thirteen (13) workdays, an employee assigned to this schedule shall be required to work one (1) twelve (12) hour and thirty (30) minute “payback” day each twenty-eight (28) day FLSA Work Period, scheduled or assigned pursuant to the Department’s work schedule 4 policy. Each workday shall consist of twelve (12) hours of work and a thirty (30) minute paid meal period. During each twenty-eight (28) day FLSA Work Period, employees shall work one hundred sixty- two and one half (162.5) hours. Upon completion of this work schedule, employees will earn an additional two (2) hours and thirty (30) minutes of vacation time, provided they do not take leave without pay during that Work Period. Employees assigned to this schedule are compensated for their meal periods. Consequently, if an employee is unable to take their meal period, or is interrupted during their meal period, they shall not receive further compensation. b. 207(k) 7/12.5 Work Schedule - Detention. Employees shall work three (3) twelve (12) hour and thirty (30) minute workdays in one (1) seven(7) day period and four (4) twelve (12) hour and thirty (30) minute workdays in the next seven (7) day period, or alternatively, four (4) twelve (12) hour and thirty (30) minute workdays in the first seven (7) day period and three (3) twelve (12) hour and thirty (30) minute workdays in the following seven (7) day period. This cycle shall be repeated twice each twenty-eight (28) day FLSA Work Period. Each workday shall consist of eleven (11) hours and thirty (30) minutes of work and a one (1) hour meal period, thirty (30) minutes of which shall be paid and thirty (30) minutes of which shall be unpaid, for a total of twelve (12) hours and thirty (30) minutes. During each twenty-eight (28) day FLSA Work Period, employees assigned to the 207(k) 7/12.5 Work Schedule shall earn one (1) hour of vacation time if they do not take leave without pay during that Work Period. Correctional Officers I and II will be compensated at the time and a half overtime rate for all time worked in excess of their regular work shift of twelve and one half (12.5) hours per workday. The overtime compensation will apply only to actual time worked beyond the regular shift. c. 207(k) 4/10.5 Work Schedule-Detention Administration. Employees shall work seven (7) ten (10) hour and thirty (30) minute workdays and one (1) ten (10) hour workday during each two (2) week period. This pattern will recur twice during the twenty-eight (28) day FLSA Work Period. Each ten (10) hour and thirty (30) minute workday shall consist of ten (10) hours and thirty (30) minutes of work and either a thirty (30) minute or one (1) hour unpaid meal period. The ten (10) hour workday shall consist of ten (10) hours of work and either a thirty (30) minute or one (1) hour unpaid meal period. The determination as to a thirty (30) minute or one (1) hour unpaid meal period shall be made by the Police Chief or their designee. d. 207(k) 4/10 Work Schedule. Employees shall work sixteen (16) ten hour workdays in each twenty-eight (28) day FLSA Work Period. 5 Each workday shall consist of ten (10) hours of work and either a thirty (30) minute or one (1) hour unpaid mealperiod. The determination as to a thirty (30) minute or one (1) hour unpaid meal period shall be made by the Police Chief or their designee. e. 207(k) 9/80 Work Schedule. Employees shall work five (5) nine(9) hour workdays in one (1) seven (7) day period and three (3) nine(9) hour workdays and one (1) eight (8) hour workday in the second seven (7) day period, or alternatively three (3) nine (9) hour workdays and one (1) eight (8) hour workday in the first seven (7) day span and five (5) nine (9) hour workdays in the second span. This cycle shall be repeated twice each twenty-eight (28) day FLSA Work Period. Each nine (9) hour workday shall consist of nine (9) hours of work and either a thirty (30) minute or one (1) hour unpaid meal period. The eight (8) hour workday shall consist of eight (8) hours of work and either a thirty (30) minute or one (1) hour unpaid meal period. The determination as to a thirty (30) minute or one (1) hour unpaid meal period shall be made by the Police Chief or their designee. f.207(k) 9/81 Work Schedule. Employees shall work eighty-one (81) hours in a consecutive fourteen (14) day, three hundred thirty-six (336) hour period. This cycle shall be repeated twice each twenty- eight (28) day FLSA Work Period. Employees shall work five (5) nine (9) hour workdays in one (1) seven (7) day span and four (4) nine (9) hour workdays in the second seven (7) day span. Each nine (9) hour workday shall consist of nine (9) hours of work and either a thirty (30) minute or one (1) hour unpaid meal period. While assigned to the 9/81 schedule, an officer shall earn two (2) hours of overtime during each twenty-eight (28) day FLSA Work Period, unless they take leave without pay during the twenty-eight (28) day, six hundred seventy-two (672) hour period. 3.3 Meal Periods. Except for those employees assigned to Patrol, other employees who do not receive a paid meal period whose meal periods are interrupted by the performance of job related duties, will receive another full, uninterrupted meal period or will be compensated for their meal period at their overtime rate of pay at time and one-half (1.5) their regular rate of pay. For purposes of this section, “interrupted” shall mean a significant interruption of more than a few minutes (de minimis). For employees who receive a one (1) hour lunch period (half (0.5) of which is paid) overtime compensation shall apply only to the unpaid half (0.5) hour. Unless exigent circumstances exist beyond the Department’s control, employees assigned to Patrol shall be provided a thirty (30) minute paid meal period. 3.4 Detective Redeployment. All employees assigned as detectives (investigators) shall work one (1) day per month in the patrol function of the Field Operations Bureau pursuant to a schedule as determined by the Chief of Police or their designee. 6 Once each calendar year the Chief of Police shall conduct a review of the organization of the Police Department to determine whether positions and assignments currently in the Investigations Bureau represent a deployment of resources that best enables the department to provide police services to the city.Effective the first day of the month following City Council approval of this 2024-2027 MOU, the Chief of Police on a monthly basis shall conduct a review of the organization of the Police Department to determine whether positions and assignments currently in the Investigations Bureau represents a deployment of resources that best enables the department to provide police services to the city. The Chief of Police may, as a result of this review, remove positions and assignments from the Investigations Bureau and assign them, and the individuals who occupy them, to other bureaus or eliminate them and assign the individuals who occupy them to other positions and assignments in the department. The annual review and any re-assignment made as a result of the review shall be completed, including the appeal thereof outlined below, sufficiently in advance of the annual patrol deployment sign-up to enable those who will be assigned to Patrol to make use of their seniority when choosing patrol shifts and days off. Any employee who is informed that they will be removed from the Investigations Bureau and lose the Investigations assignment pay differential may appeal per Article 16 to the Chief of Police. This appeal constitutes the sole administrative appeal of the Chief’s decision, shall be conducted in an informal manner and the decision of the Chief shall be final. 3.5 Field Operations shifts and requests for time off shall be based on seniority in job classification and rank held within the employee’s assigned Bureau. 7 ARTICLE IV 4.0 SALARIES 4.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all members of the Association who are now employed or will in the future be employed in any of the designated classifications of employment listed in this MOU and its attachments. 4.2 Salary Schedule. The basic salary schedule, attached hereto as Exhibit “A”, and made a part hereof as though set forth in full herein, provides salary ranges, each comprised of five (5) steps or rates of pay. The steps within each range are identified by the letters "A" through "E" inclusive, with the "A" step being the lowest step in the range. The purpose of each step and the length of service required for advancement to the next higher step within a particular salary range is summarized as follows: Step A Normal beginning pay rate Step B After 6 months’ service at Step “A” and the receipt of a “meets standards” performance evaluation. Also optional hiring rate Step C After 12 months’ service in next lower step and the receipt of a “meets standards” performance evaluation. Also maximum hiring rate. Step D After 12 months’ service in next lower step and the receipt of a “meets standards” performance evaluation. Step E After 12 months’ service in next lower step and the receipt of a “meets standards” performance evaluation. After the salary of an employee has been first established, the employee shall be advanced from Step "A" to Step "B" or from Step "B" to Step "C" or from Step "C" to Step "D," or from Step "D" to Step "E," whichever is the next higher step to that on which the employee has been previously paid, effective the first day of the month following completion of the required length of service at each step. Employees shall be advanced from one step to the next effective the first day of the pay period following completion of the required length of service at each step. This assumes the employee has received at least a “meets standards” performance evaluation which is a condition of moving to the next step. For employees who are not at top step who receive their performance evaluation after the first day of the month following their anniversary date, they shall move to the next step retroactive to the first day of the month following their anniversary date. For employees who are not at top step who receive their performance evaluation after the first day of the pay period following their anniversary date, they shall move to the next step retroactive to the first day of the pay period following their anniversary date. If an employee who is not at top step receives an evaluation that is less than a “meets standards” evaluation, they will be re-evaluated three (3) months after their anniversary date. If they achieve a meets standards evaluation, they will then move to the next step on the first day of the following pay period. If they do not receive at least a “meets standards” 8 evaluation, they will not move to the next step and need to wait until the following year for their next evaluation. 4.3 Salary Adjustments. Effective the first full pay period following July 1, 2024, the base salary of employees covered by this MOU shall be increased by four percent (4.0%). Effective the first full pay period following July 1, 2025, the base salary of employees covered by this MOU shall be increased by four percent (4.0%). Effective the first full pay period following July 1, 2026, the base salary of employees covered by this MOU shall be increased by four percent (4.0%). 4.4 Longevity Pay. Longevity pay, as presented in the table below, is calculated as the listed percentage of the employee’s base monthly salary step. Each of the service year levels are stackable. Sworn Employees – longevity for employees in the classifications of Police Officer and Police Sergeant is defined as, total years of law enforcement service. Non-Sworn Employees – longevity is defined as, total years of City service. Effective First Full Service Effective Pay Period Effective First Full Employee Years January 1, Following July 1, Pay Period Following Type Completed 2024 2025 July 1, 2026 Sworn Employees 10 N/A5% 5% 15 5% Additional 5% Additional 5% 20 Additional 5% Additional 5% Additional 5% Non-Sworn Employees 15 N/A2.5% 5% 20 2.5%Additional 2.5% Additional 5% 4.5 Application of Basic Compensation Plan. The salary steps contained in Exhibit A are monthly salary rates. All officers and employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate, except that an employee hired for temporary work in a position which has an anticipated duration of less than six (6) months shall be paid at a rate per hour for actual time spent in the performance of the duties of their employment. An employee’s base rate of pay, which is also known as their hourly rate of pay is computed by taking their monthly rate of pay and dividing it by one hundred seventy-three and thirty-three hundredths (173.33). In determining the hourly rate as herein provided, computation shall be made to the nearest whole cent and a computation resulting in exactly one-half cent or higher shall fix the rate at the next higher whole cent. 9 4.6 Beginning Rates. A new employee of the City of Santa Ana shall be paid the rate shown as Step "A" in the salary range allocated to the class of employment for which they have been hired. In special instances where such new employee possesses unique and exceptional education, training and/or experience qualifications, the department head under whom the employee will serve, may submit a written request and justification to the City Manager for authorization to place such new employee on any other Step within the allocated salary range, provided that such employee shall be assigned such salary step upon the commencement of their service in the classification of employment to which the salary range applies and such assignment having once been made shall remain in effect until the employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article. 4.7 Service. The word "service" as used in this MOU shall be deemed to mean continuous, full-time service in the classification in which the employee is being considered for salary advancement, service in the higher classification or service in a classification allocated to the same salary range and having generally similar duties and requirements. Employees hired after the first (1st) working day of the month shall not be credited with "time-in- service" for that month when determining the length of service required for salary step advancement. A lapse of service by an employee for a period of time longer than thirty (30) calendar days by reason of resignation or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purpose of this MOUand any such employee reentering the service of the City shall be considered as a new employee, except that they may be reappointed within one (1) year and may be placed in the same salary step in the appropriate salary range as they was at the time of termination of employment. 4.8 Promotional Salary Advancement. When an employee is promoted to a position in a higher classification from a position in a lower classification in the same occupational job family series, they shall be reassigned to Step "A" in the appropriate salary range for the higher classification; provided however, that if the base salary step currently being paid to the employee is already equal to or higher than said Step "A," they will be placed in the lowest step in the appropriate salary range as will grant the employee an increase of at least one (1) salary step over their current base salary step including assignment pays, shift differential and bilingual pay being paid at the time of promotion. 4.9 Demotion. When an employee is demoted to a position in a lower classification, their salary rate shall be fixed in the appropriate salary range for the lower classification in accordance with the following provisions: A. The salary rate shall be reducedby at least one (1) step. B.The new salary rate must be within the appropriate salary range. C.The new salary rate shall not be higher than the salary step to which the employee would have been entitled had their service time in the higher classification been spent in the lower classification. 10 4.10 Reallocation of Salary Ranges. Any employee who is employed in a classification which is reallocated to a different salary range from that previously assigned shall be retained in the same salary step in the new salary range as they had previously held in the prior range and shall retain credit for length of service in such step towards advancement to the next higher step. 11 ARTICLE V 5.0 ASSIGNMENT AND OTHER SPECIAL PAY ADDITIVES 5.1 Assignment Pay Differentials. Assignment pay differentials, as listed herein and throughout the MOU, will, in each case, be added individually and separately to the employee’s base salary. In no event shall one (1) assignment pay differential be added to the employee’s base salary as a basis for the calculation of an additional pay differential. 5.2 Lead Worker/Supervisory Premium Employees who are routinely and consistently assigned to lead (“lead” is defined in Lexipol Policy 1039) a functional unit which includes positions in the same or lower classifications as the incumbent, shall be compensated as provided below: A. Employees in the class of Police Services Dispatcher who are routinely and consistently assigned to and actually performing in a lead capacity over an assigned shift of Police Services Dispatchers will be paid assignment pay equal to five percent (5.0%) of base pay for all hours paid. A leave of absence for an entire pay period will result in the employee not receiving the pay for being a lead. B. Employees in the class of Forensic Specialist I, who are routinely and consistently assigned to and actually performing duties in a lead capacity over a primary functional unit of Forensic Specialist I employees, will be paid assignment pay equal to five percent (5.0%) of base pay for all hours paid. C. Employees in the class of Police Officer who are assigned as a Corporal (i.e., who are routinely and consistentlyassignedlead other employees) will be paid at a rate of two and one half percent (2.5%) of base pay. If an employee in the assignment of Corporal is assigned to lead a work unit without a Sergeant, they will be paid an additional two and one half percent (2.5%) (for a total of five percent (5%)) of base pay. At the present time,Directed Patrols and Civic Center Patrol units are examples of such assignments. D. Employees in the class of CorrectionalOfficer I (and effective March 22, 2026 for Correctional Officer II) who are routinely and consistently assignedto and actually performing in a lead capacity assigned to and actually performing duties of the assignment of Senior Correctional Officer will be paid two and one half percent (2.5%) of base pay for all hours paid. E. Employees in the class of Firearms Examiner who are routinely and consistently assigned to and actually performing duties in a lead capacity, will be paid five percent (5.0%) of base pay. 12 F. Notwithstanding the specific provisions of Article V, Section 5.2, A – E, employees who are routinely and consistently assigned to and actually performing duties in a lead capacity of a functional unit which includes positions in the same or lower classifications as the incumbent, may be compensated up to five percent (5%) of base pay for all hours paid for said duties upon mutual agreement of the City and POA. The parties agree that to the extent permitted by law, the pay in this section is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Lead Worker/Supervisory Premium. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 5.3 Training Premium A. Employees in the class of Police Services Dispatcher who are routinely and consistently assigned to train employees will be paid assignment pay equal to five percent (5.0%) of base pay when assigned to train employees. B.Employees who are routinely and consistently assigned to train as a Training Officer working in Field Operations, in the Detention facility, as a Forensic Specialist II, or as the Training Coordinator will be paid two and one half percent (2.5%) of base pay. C.Employees who are routinely and consistently assigned to perform training functions as a Parking Control Officer will be paid two and one half percent (2.5%) of base pay. The parties agree that to the extent permitted by law, this pay in this section is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Training Premium. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 5.4 Detective Division Premium Employees who are routinely and consistently assigned to an investigative unit who are performing duties of an Internal Affairs Officer will be paid two and one half percent (2.5%) of base pay. The parties agree that to the extent permitted by law, the pay in this section is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Detective Division Premium. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 5.5 Police Investigator Premium A. Sworn employees identified by the Police Department, who are routinely and consistently assigned to analyze crimes or investigative accidents and actually 13 performing duties of a Detective/Investigator assigned to the Investigations Division or Special Investigations Units will be paid two and one half percent (2.5%) of base pay. B.Sworn employees identified by the Police Department, who are routinely and consistently assigned to a detective or intelligence division and who are actually performing duties of a Background Investigator will be paid two and one half percent (2.5%) of base pay. The parties agree that to the extent permitted by law, the pay in this section is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Police Investigator Premium. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 5.6 Motorcycle Patrol Premium Police Officers or Police Sergeants who areroutinely and consistentlyassigned to and actually performing duties of a Motor Officer assigned to the Traffic Division who are routinely and consistently assigned to operate and/or patrol on motorcycle will be paid two and one half percent (2.5%) of base pay.Motor Officers shall maintain their motorcycle on duty. The parties agree that to the extent permitted by law, the pay in this section is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Motorcycle Patrol Premium. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 5.7 Aircraft/Helicopter Premium Employees in the class of Police Officer who are routinely and consistently assigned as a helicopter or fixed wing aircraft pilot will be paid five percent (5.0%) of base pay. This pay does not apply to individuals who pilot a drone. The parties agree that to the extent permitted by law, this pay is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Aircraft/Helicopter Premium. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 5.8 Search Pay Premium Effective March 22, 2026, employees in the classifications of a Correctional Officer I, Correctional Officer II, or Correctional Supervisor who are routinely and consistently assigned to search and process prisoners in the induction area of jails as a Jail Transport Officer will be paid two and one half percent (2.5%) of base pay. The parties agree that to the extent permitted by law, this pay is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Search Pay Premium. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 14 5.9 Shift Differential Pay A. Non-Sworn Personnel. Employees in the classes of Animal Service Officer I, Animal Service Officer II, Forensic Specialist I, Crime Research Analyst, Forensic Specialist II, Police Communications Supervisor, Police Investigative Specialist, Police Property & Evidence Specialist, Police Service Officer, Police Evidence and Supply Specialist, Police Services Dispatcher, Communications Services Officer, Correctional Officer, (effective March 22, 2026 for Correctional Officer II), Correctional Supervisor and Parking Control Officer who are routinely and consistently assigned to a schedule of work which requires that they actually work a minimum of four and one-half (4 1/2) hours between the hours of 5:00 P.M. and 7:00 A.M. will be paid a shift differential at a rate of five percent (5.0%) of base pay. B.Sworn employees covered by this MOU who are routinely and consistently assigned to a schedule of work that requires that they actually work a minimum of four and one-half (4 ½) hours between the hours of 5:00 P.M. and 7:00 A.M. will be paid a shift differential at a rate of five percent (5.0%) of base pay. The parties agree that to the extent permitted by law, pay for shift differential is special compensation and shall be reported as such, pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Shift Differential. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 5.10 Bilingual Pay. Qualified employees who meet the following criteria shall be paid a monthly pay differential, above their base monthly salary step, as follows: A. Assignment by the Police Chief or their designee to a position requiring bilingual capability in both English and any other language and American Sign Language; and B.Certification is determined by an employee’s passing score on a bilingual proficiency examination. . Employees must recertify for this pay every three (3) years. C. Sworn: Street Level Proficiency in Spanish. A Police Officer or Sergeant who successfully demonstrates the required level of bilingual fluency as determined by determined by an employee’s passing score on a bilingual proficiency examination shall be paid bilingual pay of equal to the product obtained by multiplying the Step “E” base salary rate of Police Officer by two and one half percent (2.5%) of base pay. D. Sworn: Complex Level Proficiency in Designated Languages. A Police Officer or Police Sergeant who successfully demonstrates the required level of bilingual fluency as determined by an employee’s passing score on a bilingual proficiency examination shall be paid a bilingual pay equal to the product obtained by multiplying the Step “E” base salary rate of Police Officer by five percent (5%) of base pay. 15 E. Non-Sworn: Secondary Level Proficiency in Designated Languages. An employee who is routinely and consistently assigned to a position requiring communication skills in languages other than English. where regular and frequent bilingual usage is necessary to the performance of duties, but not a major, essential, or integral element of the work and who successfully demonstrates the required level of bilingual fluency as determined by an employee’s passing score on a bilingual proficiency examination shall be paid seventy-five dollars ($75) per month. F. Non-Sworn: Primary Level Proficiency in Designated Languages. An employee who is routinely and consistently assigned to a position requiring communication skills in languages other than English where bilingual proficiency is essential to carry out duties and responsibilities of a critical and/or emergency nature without ready access to backup assistance, or positions where bilingual public contact is a major, essential, or integral element of the work being performed, will be designated as Primary Bilingual Assignments. A non-sworn employee assigned to such a position who successfully demonstrates the required level of bilingual fluency shall be paid three hundred dollars ($300) per month. The parties agree that to the extent permitted by law, bilingual pay is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Bilingual Premium. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 5.11 Temporary Upgrade Assignment Pay. The parties acknowledge that from time to time it may be necessary for the department to fill a temporarily vacant, full-time budgeted, higher-level position due to the temporary absence of the incumbent or if the higher-level position becomes vacant (up to 960 hours). The parties agree that such a position may be filled by an eligible unit member (this means an employee must meet the minimum qualifications for the higher-level position and shall be responsible for performing the full range of duties and responsibilities of the higher-level classification) for an initial period of up to six (6) months, and at the discretion of the Chief of Police, for an additional six (6) months; and that the employee assigned to fill such a position shall receive Temporary Upgrade Assignment Pay as set forth below: A. Eligibility. Full-time employees shall be assigned to fill a vacant, full-time budgeted, higher- level position, and shall receive Temporary Upgrade Assignment Pay for filling that position, when the occupier of that position is not performing the duties of that position for a period of two (2) consecutive calendar weeks or more. An employee filling a position under this section who is absent for two (2) days or less during the two (2) consecutive calendar week period will not lose their eligibility for Temporary Upgrade Assignment Pay; however, the days of absence shall not be counted in the computation of the two (2) week period. In computing qualifying service or temporary upgrade assignment pay, only full days of actual duty shall be included. Partial days shall not be combined to make full days unless they are holiday hours. Holiday timeoff will be included in 16 computing actual duty days. Employees holding the position immediately subordinate to the vacant, full-time, budgeted, higher-level position to be filled shall be given first consideration to said position consistent with the operational needs of the department. When there is more than one (1) employee holding the position immediately subordinate to the vacant, full-time, budgeted, higher-level position to be filled, the most senior employee holding one (1) of the immediately subordinate positions shall be assigned to said position consistent with the operational needs of the department. Non-permanent employees (probationary, part-time, seasonal, etc.) and employees performing work above their regular class in a training capacity shall not be assigned to a vacant, full-time, budgeted, higher-level position in accordance with this section unless specifically authorized by the City Manager. B. Compensation. 1. After an employee has served two (2) consecutive calendar weeks in a vacant, full-time, budgeted, higher-level position, they shall be compensated at the Temporary Upgrade Assignment Pay rate for each full day that they are assigned to the higher-level position, retroactive to the first st (1) day of said assignment. 2. An employee serving in a Temporary Upgrade Assignment will be paid within the pay range of the higher-level position. The employee will receive the higher of: 1) the minimum step of the higher-level position or; 2) five percent (5%) of base pay inclusive of assignment pays which the employee is receiving. 3. An employee assigned to a vacant, full-time budgeted, higher-level position not represented by this bargaining unit (e.g., a Sergeant temporarily assigned to act as a Lieutenant) will receive the Temporary Upgrade Pay described above, but will remain a member of this bargaining unit. 4. An employee assigned to a vacant, full-time, budgeted, higher-level position will continue to be eligible for salary step increases in their regular position. The parties agree that to the extent permitted by law, Temporary Upgrade Assignment Pay is special compensation and shall be reported pursuant to Title 2, CCR 571(a)(3) as Temporary Upgrade Pay. This pay is only reportable to CalPERS as special compensation for those who qualify as classic members as described by the Public Employees’ Pension Reform Act of 2013 – PEPRA. This pay is not reportable as special compensation for employees defined as “new members” under PEPRA. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 17 5.12 Compensation for Canine Officers for Off-Duty Activities Police Officers who are routinely and consistently assigned as a Canine Officer will be paid five percent (5%) of base pay. This pay shall be considered compensation for the care and feeding of the dog off-duty and is for the thirty (30) minutes of time each dayfor such purpose. The City and the Association understand and agree that this additional compensation is intended to compensate canine officers for all off duty hours spent caring, grooming, feeding and otherwise maintaining their canine unit, in compliance with the FLSA. The parties acknowledge that the FLSA, which governs the entitlement to compensation for canine duties, entitles the parties to agree to a reasonable number work hours for the performance of off duty canine duties. The work hours (thirty (30) minutes per day) derived at in this agreement were determined after an actual inquiry of the officers assigned th in the canine assignment as addressed by Leever v. City of Carson City, 360 F.3d 1014 (9 Cir. 2004). It is the intent of the parties through the provisions of this section to fully comply with the requirements of the FLSA. In addition, both parties believe that this section of the MOU does comply with the requirements of the FLSA. 5.13 Standby Pay The Police Chief at their discretion and based on the department's need may assign sworn officers to standby status for non-workdays or other days as determined by the Police Chief. Officers thus assigned will be compensated at the rate of two (2) hours of straight time per day of standby duty. Officers assigned to standby status on non-workdays will not lose their standby pay when called to duty, if they have been on call for at least six (6) hours when called. If officers on standby status are called to duty after having been on call for less than six (6) hours, they will be paid for their response to work, but not for their standby status. Employees on standby status shall provide the department with a telephone number at which they can be reached. The employee must be able to return to the department within the amount of time they would be able to return if traveling from home. An employee on standby/on-call shall remain fit for duty. Employees on standby are also subject to the requirements of the Department Procedure # 6003, which sets forth the guidelines for standby status. 5.14 Compensation for Briefing Time Employees in the class of Correctional OfficerI, Correctional Officer II or Correctional Supervisor, who are continuously and regularly assigned to either the 207(k) 7/12.5 Corrections Work Schedule, or the 4/10.5 Corrections Administration Work Schedule, shall be paid three percent (3%) of base pay. This assignment pay is compensation for the additional thirty (30) minutes work or briefing time each day. 5.15 Non-Sworn Investigator Pay Non-sworn employeesidentified by the Police Department, who are routinely and consistently assigned as a Police Investigative Specialist, Background Investigator, and Collision Investigator, 18 will be paid two and one half percent (2.5%) of base pay. 5.16 Correctional Officer Assignments Correctional Officer (I and II) shift assignments shall be made whenever shift change sign- ups occur and based on seniority in the classifications of Correctional Officer I and II. The assignment of Correctional Officer is recognized as a special assignment. If the parties to this MOU mutually agree, additional special assignments for the classification of Correctional Officer I and II (following the meet and confer process) can be created. 19 ARTICLE VI 6.0 CAREER DEVELOPMENT PROGRAM 6.1 Definitions. For the purpose of clarifying the criteria for the Police Career Development Program designations set forth in Sections 6.2 through 6.8 of this Article, the following definitions apply. It is the responsibility of the employee regardless of rank or classification, to notify the police department human resources of the completion of any Career Development Pay requirements and to provide the required proof of completion or eligibility. Any Career Development pay additive shall not commence until the department is notified by the employee of obtaining eligibility and all required proof of eligibility is received by the department. A. Educational Units. One (1) completed "semester" unit in an academic course of instruction approved by the Police Chief and in an accredited college or university shall equal one (1) educational unit. One (1) "quarter" unit achieved in an educational institution as above shall equal two-thirds (2/3) of an educational unit. "Trimester" units or other standards of measurement used as a basis in awarding scholastic credits will be accorded the same evaluation and weight as provided by the respective accredited college or university. Only completed coursework credited with a letter grade "C" or better or a grade of "Pass" when evaluated by the "Pass/Fail" method will be accepted. If such ratings are not rendered for a specific course, then a certificate of successful completion must be submitted. B. Training Units. Twenty (20) classroom hours or its equivalent of approved police training shall equal one unit. Regular, periodic, on-the-job training programs shall not be considered as fulfilling this requirement. Neither shall the special training required for Crime Scene Investigators and Advanced Officers or other similar mandatory training (e.g., First Aid, C.P.R. Recertification, etc.) nor the basic introductory training or similar training given an employee during their probationary period be given credit for the awarding of training units. 1. When college credit is awarded for special training in police work, such units of credit may be counted for either training units or educational units as the officer may select. 2. Training units may be earned by the assignment to and performance of sworn police officer duties (other than uniformed field patrol work in Field Operations Division) with one (1) full and continuous month of such assignment equal to one (1) training unit. Credit for experience in assignments other than patrol work in Field Operations shall not be given, unless at least three (3) full and continuous months of such assignment have been completed. Not more than six (6) units of training through assignment to non-patrol duties may be earned in any one (1) year and not more than fifteen (15) such training units by assignment shall be used in meeting the 20 criteria for the Police Career Development Program designations as set out in this Article. C.The Senior Police Officer I-III and Senior Police Sergeant I-III provisions set forth in sections 6.3 – 6.8 below apply to sworn employees in the bargaining unit hired by the City of Santa Ana into a sworn position prior to January 1, 2014. The Career Development Pay provided for in section 6.10 below is for sworn members of the bargaining unit hired into a sworn position with the City of Santa Ana on or after January 1, 2014. 6.3 Senior Police Officer I. Any sworn, safety-member Police Officer, regardless of duty assignment, who completes (acquires) at least sixty (60) educational/training units fulfills the requirements established in this section shall be designated as a Senior Police Officer I and shall, upon approval of the Police Chief, be paid seven and one half percent (7.5%) of base pay. 6.4 Senior Police Officer II. Any sworn, safety-member Police Officer, regardless of duty assignment, who completes (acquires) at least ninety (90) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional thirty (30) or more educational/training units shall be designated as a Senior Police Officer II and shall, upon approval of the Police Chief, be paid twelve and one half percent (12.5%) of base pay. 6.5 Senior Police Officer III. Any sworn, safety-member Police Officer, regardless of duty assignment, who completes (acquires) at least one hundred and twenty (120) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional sixty (60) or more educational/training units shall, upon approval of the Police Chief, be designated as a Senior Police Officer III and shall be paid fifteen percent (15%) of base pay. 6.6 Senior Police Sergeant I. Any officer holding the rank of Police Sergeant in the Santa Ana Police Department, regardless of duty assignment, who completes (acquires) at least sixty (60) educational/training units; shall be designated as a Senior Police Sergeant I and shall, upon approval of the Police Chief, be paid seven and one half percent (7.5%) of base pay. 6.7 Senior Police Sergeant II. Any officer holding the rank of Police Sergeant in the Santa Ana Police Department, regardless of duty assignment, who completes(acquires) at least ninety (90) educational/training units; or possession of an Associate of Arts degree from an accredited college with anadditional thirty (30) or more educational/training units shall, upon approval of the Police Chief, be designated as a Senior Police Sergeant II and shall be paid twelve and one half percent (12.5%) of base pay. 6.8 Senior Police Sergeant III. Any officer holding the rank of Police Sergeant in the Santa Ana Police Department, regardless of duty assignment, who completes (acquires) at least one hundred and twenty (120) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional sixty (60) or more educational/training units shall, upon approval of the Police Chief, be designated as a 21 Senior Police Sergeant III and shall be paid fifteen percent (15%) of base pay. 6.9 Education Incentive Pay - Non-Sworn. An incumbent in one of the classes designated as “non-sworn” covered by this MOU shall earn an additional amount as follows: A. Upon attainment of an Associate in Arts Degree, employee will be paid at a rate of five percent (5%) above their then current base monthly salary step. For employees hired after July 1, 2017, the pay in this paragraph shall only apply to employees in classifications which do not require a degree. B. Upon attainment of a Bachelor of Arts or Science Degree, an employee will be paid seven and one half percent (7.5%) of base pay above their then current base monthly salary step. If the employee obtains a Bachelor’s Degree without attaining an Associate in Arts Degree, they will be paid five percent (5%) of base pay. For employees hired after July 1, 2017, the pay in this paragraph shall only apply to employees in classifications which do not require a degree for any employee hired after July 1, 2017. C. Upon attainment of a Masters in Arts Degree, an employee will be paid ten percent (10%) of base pay. This pay is not stacked with the pay in paragraphs A and B above. For employees hired after July 1, 2017, the pay in this paragraph shall only apply employees in classifications which do not require a degree. 6.10 Career Development Pay-Sworn Sworn employees hired on or after January 1, 2014 shall be eligible to receive Career Development Pay as follows: A. Level One - Upon attainment of anAssociate in Arts Degree employees will be paid five percent (5%) of base pay. B. Level Two - Upon attainment of an Associate in Arts Degree and an additional thirty (30) educational units toward a declared Bachelor’s degree, employees will be paid five percent (5%) of base pay for a total of ten percent (10%) of base pay. If such employee obtains a Bachelor's Degree without attaining an Associate in Arts Degree, they will be paid ten percent (10%) of base pay . C. Level Three - Upon attainment of a Bachelor of Arts or Science Degree employees will be paid five percent (5%) of base pay for a total of fifteen percent (15%) of base pay. The parties agree that to the extent permitted by law, the pay in Sections 6.3 through 6.10 is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) as Educational Incentive. The City has a system in place to evaluate and approve acceptable courses. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 6.11 Advanced POST Certificate. Sworn employees who obtain and possess an Advanced 22 POST Certificate will be paid two percent (2%) of base pay.The Advanced POST Certificate pay will be provided effective the first pay period after the date it is issued but not earlier than the first full pay period following City Council approval of this MOU. The parties agree that to the extent permitted by law, thispay is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) as Peace Officer Standard Training (POST) Certificate Pay. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 6.12 Fingerprint Training Pay Employees in the class of Forensic Specialist I or Forensic Specialist II who complete 80 hours of fingerprint training from the Department’s approved course list as well as 16 additional hours of City-qualified court testimony training shall be paid two and one half percent (2.5%) of base pay. If these employees complete an additional 96 hours of fingerprint training (for a total of 176 hours) from the Department’s approved course list as well as 16 additional hours (for a total of 32 hours) of City-qualified court testimony training, they shall be paid an additional two and one half percent (2.5%) of base pay, for a total of five percent (5.0%) of base pay. This training enhances employees’ ability to do their job. A system is in place to evaluate and approve acceptable courses. The parties agree that to the extent permitted by law, the pay for fingerprinting training is special compensation and shall be reported pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) as Educational Incentive. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 23 ARTICLE VII 7.0 TRAINING AND EDUCATIONAL ASSISTANCE PROGRAM 7.1 Purpose. A. To encourage the employees of the City of Santa Ana to take college courses and special training courses, which will better enable them to perform their present duties and prepare them for increased responsibilities. B. To provide financial assistance to eligible employees for education and training. C. To establish eligibility requirements, conditions and procedures whereby such assistance may be provided. 7.2 Eligibility. A. Applications for tuition reimbursement will be considered only from full-time, permanent City employees who have completed probation. B. Reimbursement is not authorized for courses for which the employee is receiving financial assistance from other sources such as G.I. Bill, scholarships, etc. C. Applications will be approved only for courses directly related to the employee's job or directly related to a promotional position in the employee's occupational specialty. D. Courses not ostensibly related to the employee's job, but which are required to qualify for a degree that is directly related to their job may be reimbursable only after all required occupationally related courses have been completed. E. Prior to receiving tuition reimbursement, employees must submit documentary proof of having received a grade of not less than "C" for the course. If objective ratings are not rendered for a specific course, then a certificate of successful completion must be submitted. F. Approval will be limited to courses given by accredited colleges and universities, city colleges or adult education courses under the sponsorship of the various Boards of Education. Workshops, seminars, conferences and similar activities not identifiable as a formal course of instruction within the curriculum of a recognized educational institution, do not fall within the purview of this program but may be authorized and funded by the interested department without coordination with the Human Resources Department. G. When an employee is required by the Police Chief to attend a particular course or seminar, the expense shall be borne entirely by the City. 24 H. For specifics regarding this Article, please refer to Santa Ana Police Department Training Bulletin 02-07 - Scheduling of Training Days and Travel Time Compensation. 7.3 Reimbursement. A. Reimbursement will be based on the cost of tuition or registration fees and all required texts, eBooks and related material for each course. Additional expenses such as meals and parking fees are not reimbursable. B. Costs for required texts and eBooks are eligible for one hundred percent (100%) reimbursement subject to the following conditions: 1. For textbooks: a duplicate of the required textbook(s) was unavailable for loan from the departmental libraries prior to the commencement of coursework; 2. For textbooks: any textbook(s) purchased by the City shall be submitted to the employee's respective departmental library in order that such text(s) may be made available to all employees. C. Tuition or registration costs of one hundred dollars ($100.00) or less are eligible for one hundred percent (100%) reimbursement. Tuition costs in excess of one hundred dollars ($100.00) are eligible for seventy-five percent (75%) reimbursement. Maximum tuition reimbursement per semester is five hundred dollars ($500.00) with a maximum of one thousand five hundred dollars ($1,500) a year. NOTE: Summer and winter sessions shall be counted as separate "semesters" for purposes of the program. D. Employees shall be limited, for purposes of tuition reimbursement, to a maximum of two (2) collegiate level courses of not more than a total number of units which is equivalent to six (6) "semester" units per semester. One (1) "quarter" unit shall equal two-thirds (2/3) of one (1) "semester" unit. 7.4 Procedures. A. An employee who desiresto seek tuition reimbursement under the provisions of this Article must complete an Application for Training and Educational Assistance form and submit it to the Police Chief. B. The Police Chief will recommend approval or disapproval and forward the application to the Human Resources Department. It is advisable that the applicant accomplish the procedures so far described prior to the inception of the course or disbursement of personal funds in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy. C. Within three (3) months after they have completed the course and received their final grade, the employee must include official verification of theirfinal grade with 25 appropriate receipts for tuition and textbook costs to the Human Resources Department.These will be returned to the employee upon request. Applications not submitted to the Human Resources Department within three(3)months following completion of the course become void. D. Upon receipt of the required documentation, the Human ResourcesDepartment will determine whether the completed course of instruction is compatible with the provisions of Sections 2 and 3 of this Article. If found to be compatible, the Human Resources Department will compute the amount of reimbursement, authenticate the application, and forward it to the Police Chief. E. The Police Chief will then authorize the Finance and Management Services Department to reimburse the employee the approved amount out of the budget of the Police Department. 26 ARTICLE VIII 8.0 OVERTIME 8.1 General Policy for Overtime Work. Whenever it shall be determined to be in the public interest for employees to perform overtime work, or in an emergency situation, the City Manager, the Police Chief, or an authorized representative of the City Manager or Police Chief, may require an employee to perform overtime work. 8.2 Definition. A. Standard Work Period Overtime. Overtime for those employees assigned to the Standard Work Period shall be authorized or required time worked in excess of those hours assigned to their particular Standard Work Period Schedule workday or hours in excess of forty (40) hours per Work Period. However, subject to Article 8.3 below, if an employee uses sick leave or personal necessity leave as provided for in this MOU in the same Standard Work Period in which they works hours in addition to their regular hours, the sick leave and/or personal necessity leave shall not count as work hours which shall mean that the additional hours worked shall be paid at straight time if they are less than or equal to the number of sick leave or personal necessity leave hours used in the Standard Work Period. The use of such leave hours shall not affect overtime earned in accordance with Article 8.14 of this MOU. B.Alternative Work Period Overtime. Pursuant to this MOU, employees assigned to the Alternate Work Period (the twenty-eight (28) day FLSA work period per Section 7(k) of the FLSA) shall earn overtime for authorized or required time worked in excess of those hours assigned to their particular Alternative Work Period Schedule workday or hours in excess of their Alternative Work Period Schedule hours in a consecutive twenty-eight (28) day, six hundred seventy-two (672) hour period. However, subject to Article 8.3 below, if an employee uses sick leave or personal necessity leave as provided for in this MOU in the same Alternative Work Period in which they works hours in addition to their regular hours, the sick leave and/or personal necessity leave shall not count as work hours which shall mean that the additional hours worked shall be paid at straight time if they are less than or equal to the number of sick leave or personal necessity leave hours used in the Alternative Work Period. The use of such leave hours shall not affect overtime earned in accordance with Article 8.14 of this MOU. 8.3 Computation of a Workday and Work Period. Paid leave for holidays, vacation, and other time off with pay (including approved workers’ compensation leave), except for sick leave and personal necessity, shall be credited towards the total time worked in computing a regular workday, and/or a work period, as defined herein. Sick leave and personal necessity shall not count as hours worked towards the total time worked in computing a regular workday and/or a work period. 27 Unit members shall record hours worked in one-tenth (1/10) of an hour increments of time. This is illustrated by the following: 0-3 Minutes – No additional time should be recorded 4-9 Minutes = .1 of an hour 10-15 Minutes = .2 of an hour 16-21 Minutes = .3 of an hour 22-27 Minutes = .4 of an hour 28-33 Minutes = .5 of an hour 34-39 Minutes = .6 of an hour 40-45 Minutes = .7 of an hour 46-51 Minutes = .8 of an hour 52-57 Minutes = .9 of an hour 58-60 Minutes = 1.0 full hour For example, if an employee whose work schedule is 7:30 a.m. to 5:30 p.m. works until 5:48 p.m. they would record 9.3 hours for the day. Leave without pay shall not be credited towards the total time worked in computing a regular workday, and/or a work period, as defined herein. 8.4 Compensation for Overtime. A. The preferable method by which overtime shall be compensated is by monetary payment, at one and one-half (1 1/2) times the employee's regular rate of pay. B. Should the Police Chief determine that the best interests of the City will be served thereby, theirdesignee may permit an employee to be compensated for overtime work by earning compensatory time off at the rate of one and one-half (1 1/2) hours for each hour of overtime worked. This time, hereinafter identified as “comp time” shall be accrued as set forth below. C. There are two (2) Comp Time banks. The first bank is the Non-FLSA Comp-Time Bank established under the 2013-2015 MOU. Those employees hired after July 1, 2015 or those employees with less than one hundred (100) hours of Comp-Time at the time the banks were created will not have a Non-FLSA Comp-Time Bank. The second bank is the FLSA Comp-Time Bank. 1. The Non-FLSA Comp Time Bank can never have hours added to it. The hours in that bank can only be used as leave time and when using such leave will not cause the City to have to pay another employee overtime to fill behind the employee using the leave. The comp time in this bank cannot be cashed out during employment, only at the time the employee leaves City employment. If an employee uses the comp time in this bank during employment and exhausts the entire accrual in this bank, the employee’s Non-FLSA Comp Time Bank will be closed as no additional hours may accrue into this bank. 28 2.The FLSA Comp Time Bank has a maximum accrual of one-hundred (100) hours. An employee who has one hundred (100) hours in this bank will earn overtime paid at time and one-half the employee’s regular rate of pay for overtime earned in accordance with this MOU and the FLSA. An employee who works overtime and who has less than one hundred (100) hours in their FLSA Comp Time Bank may be able to accrue hours (at the rate of one and one half (1.5) hours for each hour of overtime worked) in accordance with subdivision (B) above. By December 15 of each year, employees may make an irrevocable election to cash out up to eighty (80) hours of FLSA Comp Time which they may earn in the following calendar year. In the following year, the employee can receive the cash for FLSA Comp Time they irrevocably elected to cash out in either two (2) separate increments of up to forty (40) hours or one (1) increment of eighty (80) hours. The employee would be paid one half of what they irrevocably elected to cash out hours on both the second pay day in July and the first pay day in December (assuming they have earned it) or the employee can elect to be paid their full amount they elected to cash out on the first pay day in December. However, if the employee’s FLSA Comp Time balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of FLSA Comp Time the employee has earned at the time of the cash out. D. Use of Comp Time from the FLSA Comp Time Bank. 1. When an employee submits a request for time off using accrued compensatory time, and that employee has found a qualified replacement, the time off request will be granted. A qualified replacementmeans that the replacement officer or employee is able to fulfill the requirements of the position to which the requesting officer is assigned. a. Compensatory time off requests made for consideration during the monthly scheduling meetings will be treated as any other time off and granted only on the basis of seniority. b. Pursuant to the 3-12 Operating Rules, officers may trade work days with other officers within the twenty-eight (28) day deployment period. Any trades must be approved by the affected Commanders and the Field Operations Bureau Commander. 2. When an employee submits a request to take time off using accrued compensatory time and the officer deployment is above minimum staffing for the day requested, then the request will be granted without further conditions. However, if the number of officers scheduled to work on the day(s) of the request is at or below minimum staffing as defined by the department, the compensatory time off request will be granted only if a 29 qualified replacement has volunteered and committed to work the assignment left open by the request for time off. The volunteer may exchange days off with the requesting employee within the twenty-eight (28) day deployment period, whichever applies, or may elect to receive overtime compensation. 3. Requests for use of compensatory time off during holidays as defined by this MOU, must be submitted in time to be considered during the monthly scheduling meeting held by bureau and division commanders for the upcoming month. These requests will be considered by seniority and will be granted only if officer deployment is above minimum staffing. Compensatory time off requested during a City-designated holiday will be treated as any other time off request and will be granted in order of seniority as long as minimum staffing levels are met. The replacement policy in Section 8.4(D)(4) below will not apply to compensatory time off requests submitted for consideration during monthly scheduling meetings. 4. Although it is always preferable for the employee to find a qualified replacement when requesting the use of compensatory time off, if provided sufficient notice of a request for time off, the department will work with employees to find a qualified replacement. Sufficient notice and reasonable period will be defined as follows: a. Seventy-two (72) hours’ notice for one (1) day or less of time off requested. b. Five (5) calendar days’ notice for more than one (1) workday up to one (1) workweek. c. Fourteen (14) calendar days’ notice for more than one (1) week compensatory time off request. 5. If an employee has provided sufficient notice to use compensatory time off, the department will work with the employee to find a qualified replacement in the following manner: a. The watch commander will maintain a calendar of time off that has been requested in accordance with the guidelines listed above. Qualified employees will be allowed to volunteer to work these shifts. b. If an employee volunteers and signs up to work for another employee who has requested compensatory time off, that volunteering employee will be held responsible for working that full shift without further reminder. Employees who do not show up to work, or retract their offer to replace another officer, may be subject to disciplinary action and may not be permitted to volunteer to work in this manner in the future. 30 6. The watch commander shall send out an e-mail message to all officers requesting a volunteer to cover the shift by switching days off or working on overtime. 7. When a compensatory time off request is made in a manner that does not comply with this policy, and granting that request would unduly disrupt the operations of the department, the department may deny that request. 8.5 Incremental Usage. Compensatory time off may be taken in increments as small as one- half (1/2) hour. 8.6 No Effect on Other Benefits. Overtime is not pensionable, employees do not earn additional leave accruals and it does not count toward the completion of the probationary period or progression to the next salary step. 8.7 Overtime Work to be Apportioned. To the extent that they are reasonably able to do so, the Police Chief shall arrange work programs to minimize overtime work; necessary overtime work shall be apportioned among employees of like classification and assignment. 8.8 Advance Compensation for Overtime. Compensatory time off earned within a pay period cannot be used within the same pay period. 8.9 Compensation for Overtime: Overtime pay or comp time shall be allowed an employee for attendance at conventions, conferences, seminars or the like, as long as prior authorization is received. Overtime pay or comp time pay shall be permitted only for attendance which is ordered on such employee’s normal days off or for time beyond a normal workday’s duration. Please refer to Santa Ana Police Department Training Bulletin 02-07 for details. 8.10 Call-Back and On-Call. A. Employees who are on call during their off-duty time due to their assignment (i.e., Homicide Investigators, Internal Affairs Sergeants, Crimes Against Persons Sergeants, etc.) and are called back to work will be paid for their travel time at the overtime rate from the time they leave their home until the time they return home, or until their regularly scheduled shift begins. Only that period of time devoted to work will be compensated. If employees are not home when they are called back to duty, they will receive their normal home to work travel time or if closer to City than their home, travel to that location and back. 1. Employees who are on-call are subject to the following: Employees are required to promptly return to work after being called and be fit for duty and able to respond. Employees on call are not permitted to drink alcohol or use any substance that will affect their ability to return to work. 31 Being on call does not constitute hours worked since employees are off-duty and permitted to engage in personal pursuits. Employees are required to respond to a phone call as quickly as possible. Upon responding, the employee will be instructed as to whether they are required to return to work (it is possible that the issue could be resolved by talking to the employee on the phone or using a computer to resolve the issue) and if so, will be informed of the location to which they must respond. Response time will generally be the employee’s normal commute time and any additional minimal time necessary to get ready to return to work. B.Employees who are ordered back to work while off-duty because of an emergency or other unforeseen event will be paid for travel time at the overtime rate from the time they leave their home until they return home, or until their regularly scheduled shift begins. Only that period of time devoted to work will be compensated. C.Employees who are called at home and offered voluntary overtime work, and elect to accept the offer, will not be compensated for travel time in any manner. Similarly, employees who sign up for voluntary overtime, or who have advance notice that they will have to work during their off-duty time on an overtime basis, will not be compensated for travel time. 8.11 Accrued Compensatory Time Off Paid Upon Promotions or Upon Separation. Upon an employee's appointment to a position in which overtime may not be earned or upon an employee's separation from employment with the City they shall be compensated for accrued compensatory time on the next payday. 8.12 Court Appearance. Compensation for court appearance shall be as follows: A. For each required court appearance made by an employee during their off-duty time regarding City business, employees shall be paid overtime for the period of time from their arrival at court until they are released from court or the court session closes for that day. However, in no case, shall an employee receive less than two (2) hours overtime for a court appearance. If court appearances are made both in the morning and afternoon of a particular day, the employee shall receive a minimum of two (2) hours overtime for each session attended. Employees who appear in court in the morning and are required to stay until through the court’s meal break into the afternoon session will be considered to be in paid status during the court’s meal break. The employee must provide a copy of the subpoena requiring their attendance to initiate payroll procedures. B. A subpoenaed employee scheduled to appear in court on City business during off- duty time may be placed on on-call status by the Police Chief or their authorized representative if the employee can respond to the court, if called, within sixty (60) minutes of the employee’s notification. In the event such off-duty employee is on on-call status during any court session and is not required to appear in court, such 32 employees shall be compensated two (2) hours at straight time, for each court session. Such employee may elect, in lieu of paid time, to earn two (2) hours of comp time off for standby time and not appearing in court, with the approval of the Police Chief. C.Employees assigned to the 3/12.5-7/12.5, or 3/12-4/12 Work Schedule who appear in court during their regularly scheduled workweek, and who, as a result, do not receive adequate rest (because of the hours of the day they work), will be allowed to flex their scheduled shift start time up to four (4) hours, with the approval of the employee's immediate supervisor and watch commander, or immediate supervisor and section commander. Alternatively, the employee may be allowed to use up to four (4) hours from their "Comp Time Banks" at the beginning of their scheduled shift to ensure adequate rest. 1. An employee whose work shift ends or starts within thirty (30) minutes of a mandatory court appearance shall be compensated for those thirty (30) minutes at an overtime rate. 2. Employees assigned to a Watch 3 (6:00 p.m. to 6:30 a.m.) who are required to appear in court following the end of their shift will have the option of remaining on duty or ending their shift. Employees that continue active duty will be compensated at time and one-half while on duty. Employees that end their shift will be unpaid prior to their court appearance. D. Employees who are on call for court during off-duty time, and who are called to testify, will be paid at the overtime rate of time and a half of their regular hourly rate, to include actual travel time from their home to court and back, or until their regularly scheduled shift begins. Travel time will be limited to a maximum of one (1) hour each way. Only that period of time devoted to work will be compensated. Time spent on personal pursuits or other non-work related activity will not be compensated. E. Those employees who have advance notice of their required appearance in court, have arranged an appearance time with the District Attorney’s Office, or who otherwise have advance notice of mandatory court appearances, will not be compensated for travel time in any manner. F. Employees who appear in court during off-duty hours may elect to start their normal work shift early as specified herein. G. A subpoenaed employee scheduled to appear in court on City business during off- duty time and placed on-call by the Police Chief or their authorized representative will be compensated two (2) hours at straight time if they are not advised of the cancellation of their appearance within five (5) Court business days of said appearance. 33 8.13 Creation of Association Comp Time Bank. A. Any member of the Association who works overtime, or has accrued but unused holidays, can designate that they will contribute the value of such time to a bank for use by members of the Association for the purposes and subject to the restrictions provided herein. B.Any member of the Association may receive time off for the welfare of officers, community service andany lawful activity of the Association with pay drawn from the bank described in Subsection A of this Section, provided that said employee first gains approval for said use by the executive board of the Association in the manner specified by its rules as adopted from time to time, and subject to the approval or disapproval of the Police Chief consistent with the operational needs of the Police Department. C. No withdrawal or use of such bank may be made by or on behalf of an employee ordered to take time off without pay for discipline imposed by the Police Chief or their designee. D. The City agrees to provide the SAPOA with a quarterly accounting (at the end of March, June, September and December) of all Association Comp Time accrued and used. 8.14 Compensation of Voluntary Contract Overtime. Exclusive of other provisions of this Article, except Section 8.6 (No Effect on Other Benefits), Police Officers and Police Sergeants who voluntarily agree to perform contract security services at games, parades, dances and similar public events for a separate and independent employer shall be compensated at the rate of one and one-half (1 1/2) times the employee's regular rate of pay. However, the hours worked do not constitute hours worked under the FLSA. The Police Chief shall determine how many off-duty police officers should serve as security officers at each event. Police Officers and Sergeants represented by the Association shall be given first opportunity to volunteer for such off-duty assignments. If, after a reasonable period of time, an insufficient number of police officers have volunteered to work such assignments, the Police Chief may offer the remaining "openings" to any person(s) they deem capable of performing the work at whatever straight-time pay rate the City considers to be appropriate. 34 ARTICLE IX 9.0 HOLIDAYS 9.1 Legal holidays observed by full-time permanent and probationary employees covered by this MOU are as follows: January 1- New Year's Day. Third (3rd) Monday in January - Martin Luther King Jr.'s Birthday. Third (3rd) Monday in February - Presidents’ Day. March 31 – Cesar Chavez Day (effective the first holiday after City Council approval of this 2024-2027 MOU). Last Monday in May - Memorial Day. July 4 - Independence Day. First (1st) Monday in September -Labor Day. November 11 - Veteran's Day. Fourth (4th) Thursday in November -Thanksgiving Day. The Friday immediately following Thanksgiving Day. December 25 -Christmas Day. Last working day before Christmas Day, unless Christmas falls on a Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof. One (1) Floating Holiday -Any workday selected by the employee with prior permission of the employee's supervisor. Every day proclaimed by the Mayor of the City as a holiday for City employees. Any holiday which falls on a Sunday will be observed on the following Monday. Any holiday, which falls on a Saturday, will be observed on the Friday preceding the Holiday. 9.2Employees shall receive ninety-six (96) holiday hours each year (twelve (12) eight (8) hour holidays – which includes the floating holiday) in lieu of the holidays specified in Section 9.1. However, the floating holiday in Section 9.1 shall be donated back to the City to pay for the Association President’s Leave per Section 14.3. 35 Effective January 1, 2025, employees shall receive one hundred and four (104) holiday hours each year (thirteen (13) eight (8) hour holidays). These amounts include the floating holiday on the list in Section 9.1. However, the floating holiday plus four (4) additional holiday hours (for a total of twelve (12) hours)shall be donated back to the City to pay for the Association President’s Leave per Section 14.3. For each of the holidays, employees have the following two (2) options: A. Option 1 - Employees can use their holidayhours (eighty-eight (88) hours in 2024, which is increased to ninety two (92) hours effective January 1, 2025) during the calendar year by scheduling it as time off. If this option is chosen, the following provisions apply: 1. The employee will not be cashed out for any of the eighty-eight (88) holiday hours which is increased to ninety-two (92) hours effective January 1, 2025 at the end of the year if any of the hours are not used. 2. If an employee leaves City employment during the year and has not used all of the holiday hours earned during the year at the date of separation the remaining holiday hours earned to date will be paid to the employee on their final check. This pay will not be reported to CalPERS as Special Compensation. 3. If an employee leaves City employment during the year and has used more holiday hours in the calendar year than they have earned as of that date, they must pay the City the cash value for such used but unearned holiday time off benefits prior to or at the time of separation. 4. Employees can use holiday leave in increments as small as one-half (1/2) hour with fractional usage rounded upward to the next higher multiple of one-half (1/2) hour. B.Option 2 –Employees may make an irrevocable election to receive holiday pay in lieu (paid at the regular rate of pay at straight time) of time off for the holiday. If this option is chosen, employees must submit their irrevocable election by December 15 of each calendar year to the Police Department Human Resources Division who will then forward it to City Payroll. Employees will receive eight (8) hours and effective January 1, 2025, seven and two thirds (7.67) hours of holiday pay in lieu for each holiday. The employee will receive the pay on the payday following when each of the twelve (12) holidays occur. If this option is chosen, the parties agree that to the extent permitted by law, this holiday pay in lieu is special compensation and shall be reported to CalPERS pursuant to Title 2 CCR, Section 571(a)(5) and 571.1(b)(4) Holiday Pay. An employee who does not irrevocably elect Option 2 by December 15 of the previous calendar year will receive holidays per Option 1. 36 9.3 Allemployeesmust actually work at least one (1) day preceding the day a holiday listed in Section 9.1, actually occurs in order to receive credit for such holiday. The employee will then be credited with all remaining holidays in the year occurring after the appointment. An employee separating from the service of the City must actually work at least one (1) day following the day a holiday listed in Section 9.1, actually occurs in order to receive credit for that holiday. A newly appointed employee must complete six (6) months of continuous, full-time service in order to receive credit for the Floating Holiday listed in Section 9.1 above. 37 ARTICLE X 10.0 VACATION 10.1 Purpose. It is the policy of the City to grant employees vacation leave in order to provide them with a break in their regular work schedule, and this purpose will be used as a guide in the administration of the provisions of this Article. 10.2 Vacation. A. Members shall accrue vacation with pay on a monthly basis as set forth in the following table. Annual Monthly Beginning Vacation Accrual YearsAccrued Rate 1 806.67 2 806.67 3 120 10.00 4 120 10.00 5 120 10.00 6 124 10.33 7 128 10.67 8 132 11.00 9 136 11.33 10 140 11.67 11 144 12.00 12 148 12.33 13 152 12.67 14 156 13.00 15 160 13.33 16 168 14.00 17 176 14.67 18 184 15.33 19 192 16.00 20 or more 200 16.67 B. An employee who has completed less than one(1) year's serviceduring the calendar year shall receive a proportionate fraction in accordance with the amount of service to their credit during the year; provided, however, no employee shall be entitled to use any vacation until they has completed six (6) months of continuous service. C. On or after the first (1st) day of the month following completion of six (6) months of continuous full-time service, an employee may be allowed to take all or a proportionate fraction of theirearned vacation, subject to scheduling approval of the employee's supervisor. 38 D. Absence on sick leave for a period in excess of fifteen (15) consecutive calendar days shall not be considered as service for vacation accrual purposes. E. Computation of Vacation. 1. If a holiday listed in Article 9 occurs during an employee’s vacation, vacation hours will not be deducted. For employees who choose to earn holiday in lieu pay, they are already being paid for the holiday. If an employee qualifies for sick leave while on vacation, the time will be deducted from sick leave, not vacation. 2. With the exception of military leave, an employee who has a break in service of one (1) year or less will continue to accrue vacation per Section 10.2(A). If an employee has a break in service of one (1) year or more, they shall be considered a first year employee for purposes of accruing vacation. F. Vacation Buy-Back. By December 15 of each year, employees may make an irrevocable election to cash out up to sixty (60) hours (one hundred twenty (120) hours if they used eighty (80) hours in the calendar year they are making the election) of vacation which they can accrue per year which will be earned in the following calendar year at the employee’s base rate of pay. In the following year, the employee can receive the cash for the vacation they irrevocably elected to cash out in either two (2) separate increments of up to thirty (30) hours (sixty (60) hours if they if they used eighty (80) hours in the calendar year they are making the election) hours or one (1) increment of up sixty (60) hours (one hundred twenty (120) hours if they if they used eighty (80) hours in the calendar year they are making the election) they can accrue in a year. The employee would be paid one-half of what they irrevocably elect to cash out hours on both the second pay day in July and the first pay day in December or the employee can elect to be paid sixty (60) hours (one hundred twenty (120) hoursif they if they used eighty (80) hours in the calendar year they are making the election) on the first pay day in December. However, if the employee’s vacation balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of vacation the employee has accrued at the time of the cash out. If an employee makes an irrevocable election to cash out vacation in the following calendar year and uses vacation in that subsequent year, the vacation used will come from vacation the employee had earned prior to January 1 of the year the employee has elected to cash out vacation. This is to ensure that assuming an employee had a vacation balance prior to January 1, the vacation used will not result in a reduction in the amount of vacation the employee will be eligible to cash out. 39 10.3 Limitation on Vacation. With the exception of a retiring employee, no employee is granted, and no employee shall be allowed to take, any vacation leave with pay in excess of four hundred (400) hours in any one (1) year. 10.4 Vacation Carry-Over. A. Noemployee may carry over from one (1) calendar year to the next, more than the maximum vacation carryover as set forth in the following table. Any vacation not used beyond the maximum carryover amount from year to year will be paid off by the City at the end of the calendar year at the employee’s base rate of pay so that at the beginning of the following calendar year, the employee will have the maximum carryover amount of vacation in their vacation bank. Completed Years Max Carryover 1 80 2 160 3 280 4 320 5 360 6 364 7 372 8 380 9 388 10 396 11 404 12 412 13 420 14 428 15 436 16 448 17 464 18 480 19 496 20 512 21 520 22 520 23 520 24 520 25 520 40 10.5 Use of Accrued Vacation. Vacation, may be taken in increments as small as one-half (1/2) hour. Each affected employee shall be afforded the opportunity to submit selection(s) for use of accrued vacation, and the Police Chief or their designee shall make every reasonable effort to accommodate the employee's preference(s). The time at which an employee shall take their vacation, shall be determined by the Police Chief, with due regard for the wishes of the employee and particular regard for the needs of the service. 41 ARTICLE XI 11.0 OTHER LEAVES OF ABSENCE 11.1 Sick Leave. A. Definition. Except as otherwise provided below, sick leave shall be deemed to mean absence from duty of an employee because of illness or injury that prevents the employee from performing the duties of theirposition and shall be deemed to include time in quarantine resulting from non-duty related exposure to a contagious disease. B. Accrual. Each employee shall earn eight (8) hours of sick leave for each full calendar month of service in which they are employed by the City with full pay. However, any absence on sick leave for a period of time greater than fifteen (15) consecutive calendar days in any one (1) calendar month shall not be considered to be service entitling an employee to earn sick leave as aforesaid. Employees on leave of absence for service-connected illness or injury who are covered by the provisions of Labor Code Section 4850, shall continue to accumulate eight (8) hours of sick leave for each full calendar month of service for which they are employed by the City with full pay during said absence for service-connected illness or injury. C. Authorized Only When Necessary. Use of sick leave by City employees shall be authorized as follows: 1. Sick leave is not a right which an employee may use at their discretion, but shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Subsection J below. 2. For miscellaneous-member employees covered by this MOU, when such an employee's absence is caused by an industrial illness or injury, for which benefits are required to be provided under the State Workers' Compensation Insurance and Safety Act, the City shall pay one hundred percent (100%) of salary for the first three (3) days of such absence and sick leave shall not be debited. D. Limit. The maximum total accumulation of sick leave shall be one thousand six hundred (1,600) hours. Sick leave usage of less than a full day shall be charged in minimum increments of one-half (1/2) hour. For employees who are newly hired from outside the City into classifications represented by the Association following Council approval of this MOU: 1. Maximum accumulation of seven hundred (700) sick leave hours; and 2. Any annual accrual over the seven hundred (700) hours (up to ninety-six (96) hours) would be cashed out into an employee’s RHS during the first pay period in January of each year. 42 E. Extended. The City Manager may grant leave up to six (6) months without pay to an employee who has exhausted all of their accrued sick leave if a licensed physician indicates that the employee will be sufficiently recovered to return to their employment within a six (6) month period. Prior to the expiration of the additional time, the employee may return to their position provided that they have a certificate from their physicians stating that the employee is able to perform all the duties of their position without qualification. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year without pay. F. Extension by Use of Vacation. After an employee's sick leave has been exhausted, they may be granted permission to take any earned vacation they may have accrued. G. Notice. The employee taking sick leave shall notify their immediate supervisor not less than one (1) hour prior to the time they are scheduled to report for duty. If after three (3) consecutive days of sick leave usage and if sick leave abuse is suspected based on articulable facts, an employee may be required to produce a physician certificate verifying that the employee was sick. H. Denial. No employee shall be entitled to sick leave with pay while absent from duty because of sickness or injury purposely self-inflicted or caused by willful misconduct for monetary gain or other compensation, or by reason of engaging in business or activity for monetary gain or other compensation. I. Excess Usage. If sick leave is used in excess of that due and available to an employee, such excess sick leave, will first be deducted from any available compensatory time off benefit; second, from any available vacation leave benefit; third, from any available holiday leave benefits; and finally, will be considered leave without pay. J. Personal Necessity Leave (Family Sick Leave per Labor Code section 233). Each employee shall be afforded the opportunity to use up to forty-eight (48) hours of sick leave per calendar year, on a non-cumulative basis. This leave may be used to attend to an illness of a child, parent, spouse, registered domestic partner, grandchild, grandparent, parent in law, or sibling of the employee. It can also be used for a “designated person”. A “designated person” is a person identified by the employee at the time they request sick leave. An employee may designate one(1) person per twelve (12) month period. As used in this section, “child” means a biological, foster, or adopted child, a stepchild, a legal ward, or a child of a person standing in loco parentis; and “parent” means a biological, foster, adoptive parent, a stepparent, or a legal guardian. Up to three (3) days of this personal necessity leave may be used: (a) to attend to a serious accident to members of the employee’s immediate family; (b) childbirth; (c) to cope with imminent danger to the employee’s home or other valuable property; or (d) when the existence of external circumstances beyond the employee’s control make it impractical for them to report for duty. For the purposes 43 of this section only, a “day” shall be defined as the number of hours of work that an employee is required to work according to their specific workday schedule. K. Payment for Unused Sick Leave. Definition. All employeeshired or appointed into the bargaining unit on or prior to December 20, 2022 (as this section does not apply to employees hired or appointed into the bargaining unit after December 20, 2022), except for those involved in disciplinary termination, shall be entitled to payment under the following provisions: 1. After ten (10) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for one-third (1/3) of the total sick leave benefit credited to their 457 account or cash upon the effective date of such termination, not to exceed a maximum limit of four hundred twenty-seven (427) hours, at the rate of pay in effect on the date of such termination. a. At their option, an employee may convert the above lump sum payment option into the retiree health account fund, held by the SAPOA for the purposes of retiree health insurance or long term care insurance premiums to the extent necessary to provide the employee and their designated eligible dependents, if any, with benefits under the health insurance program maintained by the Association. For unused sick leave benefits had this option not been elected, not to exceed a maximum of six hundred forty (640) hours. 2. After fifteen (15) years ofservice, employees shall be entitled to one hundred percent (100%) of the amount of unused sick leave benefits credited to their 457 account or cash upon the effective date of separation, up to a maximum of one thousand six hundred (1,600) hours. 3. A lump sum payment shall be made to the beneficiaries of any eligible employee whose death occurs while such employee is an active employee of the City, such payment to be in the amount of one-third (1/3) of the total sick leave benefit credited to the employee’s account at the time of their death, and at the rate of pay effective on the date of death. 4. Upon the death of any retired employee receiving a benefit under this provision, said benefit will continue to be provided through the Association on behalf of said retired employee to their beneficiary. 11.2 Bereavement Leave. An employee shall be granted up to three (3) days leave without loss of pay in case of death of a member of the employee's immediate family. For purposes of this Section only, a "day" shall be defined as the number of hours of work that an employee is required to work according to their specific workday schedule. Such leave is designated as bereavement leave. "Immediate family" as used in this section is limited to: 44 A. Any relative by blood or marriage who is a member of the employee's household; B. A parent, parent-in-law, stepparent, spouse, registered domestic partner, child, brother, stepbrother, sister, stepsister, grandparent, or grandchild of the employee, regardless of residence. C. An employee (who has worked for the City for at least thirty (30) days) shall be granted up to five (5) days of leave for the death of a member of the employee’s immediate family, as specified in this Section. Three (3) of the days will be paid bereavement leave and the remaining two (2) days of leave may be unpaid, except that an employee may use accrued vacation, sick leave, or compensatory time off that is otherwise available to the employee for this purpose. This leave must be used within three (3) months from the date of death of the family member. 11.3 Military Leave. A. Proof of Orders and Reinstatements. An employee shall be granted military leave if they furnishes the Executive Director of Human Resources or designee satisfactory proof of their orders to report for duty. Upon return and upon showing proof of actual service pursuant to such orders, they will be reinstated as provided in Section 9-143 of the Santa Ana Municipal Code. B. Temporary. Members of the reserve forces of the United States, or the National Guard, granted temporary military leave when ordered to duty, in accordance with the Military and Veterans Code and Section 9-144 of the Santa Ana Municipal Code, will be granted leave with pay not to exceed thirty (30) working days in each calendar year after one (1) year's service with the City upon presenting satisfactory proof of orders to and from such temporary active duties. 11.4 Jury and Witness Leave. When an on-duty employee is called to serve as a juror or a non- party witnessin any court action they shall be allowed leave for the time actually required for such service, without loss of pay. Each on-duty employee called for such service shall present to the Police Chief for examination the subpoena calling them to such service. Refer to Departmental Order 396 - Jury Duty for specifics. 11.5 Examination Leave. Employees participating in examinations conducted during their normal working hours for positions in the competitive service of the City of Santa Ana will be granted leave with pay for the time actually required, without loss of any accrued vacation or compensatory time off benefits. 11.6 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. Absence from duty without leave for five (5) consecutive working days shall be deemed a resignation from the service; provided, however, if upon return to duty the person so absenting themselves makes an explanation satisfactory to the Police Chief of the cause of their absence, the Police Chief may restore them to their position, with the City Manager's approval. 11.7 Authorized Absence Without Pay. Absence without pay not to exceed five (5) consecutive 45 working days’ may be authorized by the Police Chief. Absence without pay not to exceed fifteen (15) calendar days may be authorized by the department with the approval of the City Manager. Such absences may be authorized only if in the judgment of the Police Chief they serve the best interest of the City. 11.8 Authorized Absence Without Pay - Long Term. Upon receipt of a written request from an employee having permanent status plus action by the Police Chief recommending approval of the request, the City Manager may grant a leave of absence for up to six (6) months. An employee returning to duty with the City shall inform the Police Chief and the Executive Director of Human Resources or designee of their intention at least thirty (30) calendar days prior to the expiration of the six (6) months period or shorter period if the full six (6) months is not taken. Upon receipt of such notice, the Police Chief will take steps necessary to restore the employee to their former position. 11.9 Administrative Leave. The City Manager is authorized to grant, at their discretion, administrative leave with or without pay (without pay if the employee requests)for permanent employees if, in their opinion, such a leave is in the interests of the City. 11.10 Industrial Leave. A. Each "safety member" employee covered by the provisions of Labor Code Section 4850 who is compelled to be absent from duty because of an illness or injury covered by the State of California Workers' Compensation Insurance and Safety Act shall, in lieu of temporary disability compensation payable under the aforementioned Act, continue to be paid their normal salary and accrue other benefits in accordance with the provisions of Labor Code Section 4850. B. Any period of time during which an employee is required to be absent from their position by reason of an industrial injury or industrial illness for which they are entitled to receive compensation shall not be considered a break in continuous service for the purpose of theirright to salary adjustment or tothe accrual of vacation and seniority. 11.11 Catastrophic Leave Donation. In order to assist employees otherwise granted leave of absence without pay by the City Manager because of a catastrophic, non-industrial medical condition or injury, the following Catastrophic Leave Donation Program applies: A. Guidelines. It shall be understood that all donations under this procedure are voluntary and subject to taxation for the recipient. 1. Employees may donate vacation or compensatory time or holiday leave time to the eligible employee. In no event shall sick leave be donated. 2. Employees shall be provided a two (2) week period to submit donations. Donations received after this two (2) week period shall not be processed. The two(2) week period for each case shall be designated by the Police Chief or theirdesignee as provided herein below. If all previous time 46 donated has been exhausted, the recipient may request a new donation period be designated by the Police Chief or their designee as provided herein below. 3. All vacation, compensatory time or holiday leave time donations must be made in two (2) hour increments. There is no limit on the amount of the donation that can be made. 4. Any authorization of donations not made in accordance with the procedures outlined in Section 11.11(C)(2), will not be processed. 5. All donations shall be irrevocable. 6. In the event the recipient returns to work before leave donations have been exhausted, any balance on the books shall be accrued by the recipient and designated as sick leave and may be used pursuant to Article XI, Sections 11.1(A) through 11.1(K) above. B.Eligibility. Full-time employees shall be eligible for catastrophic leave donations if the following criteria are met: 1. When it is reasonably foreseeable that all accrued time on the books, such as sick leave, compensatory time, vacation, and in lieu holidays, will be exhausted and the employee’s illness will continue past the time when the employee will be on paid status. 2. The Police Chief or their designee has approved a written request for donations accompanied by a medical statement from the employee’s attending physician. The attending physician’s statement must verify the employee’s need for an extended medical leave and an estimate of the time the employee will be unable to work. C. Procedure. 1. Upon receipt of a valid request for donations from an eligible employee, the Police Chief or their designee shall post a notice of the eligible employee’s need for donations on bulletin boards accessible to employees. No confidential medical information shall be included in the posted notice. 2. Employees wishing to donate time to an eligible employee must sign their authorization of the transfer of such donated time and provide: a. Their name, department name, and employee number; b. The number of hours of compensatory, holiday or vacation time of the donation within the limitations of Section 11.11(A)(3); c. The name, department, and employee number of the recipient; 47 d. A statement indicating that the donor understands such donation of time is irrevocable. 3. At the close of the two(2) week donation period, the department shall verify that each donating employee has accrued vacation, holiday and/or comp time balances sufficient to cover the designated donation. 4. The department shall submit all approved donation authorizations for an eligible employee at one time for processing. No donation authorizations for the eligible employee will be processed after this period. However, employees who receive donations under this procedure and who exhaust all donated hours may request an additional donation period subject to the provisions of Section A, herein. 5. The City shall add the donated time to the recipient’s sick leave account. D. Upon the death of any active employee receiving a benefit under this provision, the City agrees to pay any unused Catastrophic Leave Donations remaining on the books to the surviving beneficiary. E. For those current employees with unused catastrophic leave on the books, the City agrees to convert said unused catastrophic leave to sick leave for use in accordance with the provisions of Article XI, Sections 11.1(A) through 11.1(K) above. 11.12 Assignment Departmental Seniority Employees who are authorized to be on an unpaid medical leave for twelve (12) weeks or less shall continue to accrue seniority related to their particular assignment, as it relates to the badge number list or for any other purpose concerning Police Department Operations for which seniority is considered. Once such leave of absence exceeds twelve (12) weeks, the employee will no longer accrue seniority (for all purposes, including, but not limited to their classification, assignment or rank). While such employee will not lose any of the seniority they have previously earned, by not continuing to accrue seniority at that point, others who previously were less senior may become more senior than such employee for seniority purposes in the Department. 48 ARTICLE XII 12.0 EMPLOYEE INSURANCE 12.1 The City will contribute toward the 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 follows: A. Medical Insurance. The City will contribute one thousand five hundred seventy- five dollars ($1,575.00) per month to the Santa Ana Police Officers Association Medical Insurance Trust Fund for each affected employee enrolled in medical insurance plans provided by the Association for its bargaining unit members and their eligible dependents. Any contributions necessary to maintain benefits under the plans in excess of the aforementioned amount per month shall be borne entirely by the Association and/or the enrollee. Members of the bargaining unit who are not Association members and therefore not eligible to purchase insurance through the Trust will receive from the City up to one thousand five hundred seventy-five dollars ($1,575.00) per month to be used only for the purchase of medical insurance for themselves and eligible dependents. The Association will provide the City with proof that each of the employees in the Association who have enrolled in insurance are receiving insurance. The Association will also provide the City (once each quarter) with a list of the group insurance plan and rates for medical, dental and Long Term Disability. The Association shall provide and administer health benefit plans for employees in accordance with the terms and conditions of the Health Plan Agreement attached as Exhibit C to this MOU. The parties agree to reopen this 2024-2027 MOU to consider the City’s health insurance contribution after receiving the results of the 2024 Association Medical Insurance Trust Fund audit. B. Life Insurance. The City shall provide term life insurance coverage for each affected employee in the amount of thirty thousand dollars ($30,000), plus thirty thousand dollars ($30,000) accidental death and dismemberment (AD + D) coverage, subject to carrier contract, terms, and conditions. 12.2 Retiree Health Contribution. All employees covered by this MOU will contribute two percent (2%) of their regular rate of pay through payroll deduction to a fund maintained by the Santa Ana Police Officers Association for the purpose of providing retiree health insurance premium reduction assistance. On October 1 of each year, the City shall contribute an amount equal to two percent (2%) of each employee’s regular rate of payof each active employee who is covered by this MOU as of October 1 of each year to a fund maintained by the Santa Ana Police Officers 49 Association for the purpose of providing retiree health insurance premium reduction assistance. 12.3 If an employee is on an unpaid leave of more than fifteen (15) calendar days in a calendar month the City will not contribute toward any insurance coverage for the following calendar month. The Police Department will notify the Association of all employees on unpaid leave or who separate from City employment within three (3) working days. The City will continue the payment of contribution for insurance coverage until the end of the month in which the Association had received notice from the City of the employee's separation from employment. 50 ARTICLE XIII 13.0 RETIREMENT 13.1 General. The City shall continue to make contributions to the California Public Employees' Retirement System (CalPERS) in accordance with its contract with CalPERS for employees covered by said contract as amended. 13.2 Deferred Retirement. The City shall continue to make payment to CalPERS on behalf of each employee covered by this MOU in accordance with the following schedule: A. For Safety employees covered by this MOU who do not qualify as “New Members” under the California Public Employees’ Pension Reform Act of 2013 (PEPRA), the City shall pay the nine percent (9%) member contribution and report it to CalPERS as compensation earnable. B. For Miscellaneous employees covered by this MOU who do not qualify as “New Members” under the California Public Employees’ Pension Reform Act of 2013 (PEPRA) the City shall pay the eight percent (8%) member contribution and report it to CalPERS as compensation earnable. Such payments shall be credited to the individual employee’s CalPERS account. Such payments are not increases in base salary and no salary range applicable to any of the employees covered by this MOU shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and thus, will not withhold federal or state income tax from said payments as permitted by IRS Code section 414(h)(2). For the purpose of reporting an employee’s compensation to CalPERS, the City shall include these payments as if they were a part of the employee’s base salary. The parties agree that to the extent permitted by law the value of the Employer Paid Member Contribution is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(1). This pay is only reportable to CalPERS as special compensation for those who qualify as classic members as described by the Public Employees’ Pension Reform Act of 2013 – PEPRA. This pay is not reportable as special compensation for employees defined as “new members” under PEPRA. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 13.3 CalPERS Fourth Level of 1959 Survivors Benefits. The City will provide CalPERS fourth level of 1959 Survivors Benefit to all eligible employees in the unit. Employees pay the employee contribution for this benefit. 13.4 CalPERS Pre-Retirement Optional Settlement 2 Death Benefit. The City shall provide the CalPERS Pre-Retirement Optional Settlement 2 Death Benefit to all employees covered by this MOU. 51 13.5 Military Service Credit as Public Service. Employees may elect (per Government Code 21024) to purchase up to four (4) years of service credit for any continuous active military or merchant marine service prior to employment. The employee must contribute an amount equal to the contribution for current and prior service that the employee and the employer would have made with respect to that period of service. 13.6 3% at 50 Service Retirement Benefit for Safety employees. The City contractswith CalPERS to provide Safety employees who do not qualify as “New Members” under PEPRAwith the 3% at 50 Service Retirement benefit. All Safety employees who do not qualify as “New Members” under PEPRA shall pay twelve percent (12%) compensation earnable to pay for the employer portion of the City’s CalPERS contribution. This payment shall be paid in accordance with Government Code Section 20516(f). If, at any time in the future, the Association informs the City that it no longer agrees to this cost sharing agreement, effective on the date of the elimination of the cost sharing (which would need to coincide with the expiration date of the MOU) these employees’ base salary would be reduced by twelve percent (12%). Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.7 2.7% @ 57 Service Retirement Benefit for “New Member” Safety employees. The City agrees to provide Safety employees who are defined as “New Members” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA) of 2013 with the 2.7% @ 57 Service Retirement benefit. Final compensation will be based on the highest annual average compensation earnable during the thirty-six (36) consecutive months immediately preceding the effective date of their retirement, or some other thirty-six (36) consecutive month period designated by the member. Employees covered under the 2.7% @ 57 retirement formula shall pay one-half of the normal cost rate as established each year by CalPERS. Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.8 2.7% at 55 Service Retirement Benefit for Miscellaneous employees. The City contracts with CalPERS to provide Miscellaneous employees who do not qualify as “New Members” under PEPRA with the 2.7% at 55 Service Retirement benefit. The employee’s contribution rate for Miscellaneous employees who do not qualify as “New Members” under PEPRA is eight percent (8%) compensation earnable. All employee contributions for retirement benefits are paid to the employer portion of the City’s CalPERS contribution. This payment shall be paid in accordance with Government Code section 20516(f). If, at any time in the future, the Association informs the City that it no longer agrees to this cost sharing agreement, effective on the date of the elimination 52 of the cost sharing (which would need to coincide with the expiration date of the MOU) these employees’ base salary would be reduced by eight percent (8%). Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.9 2% @ 62 Service Retirement Benefit for “New Member” Miscellaneous employees. The City agrees to provide Miscellaneous employees covered by this MOU who are defined as “New Members” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA) of 2013with the 2%@ 62 Service Retirement benefit Final compensation will be based on the highest annual average compensation earnable during the thirty-six (36) consecutive months immediately preceding the effective date of their retirement, or some other thirty-six (36) consecutive month period designated by the member. Employees covered under the 2% @ 62 retirement formula shall pay one half of the normal cost rate as established each year by CalPERS Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.10 Credit for Unused Sick Leave. All sworn and non-sworn employees can have unused accumulated sick leave at the time of retirement converted to additional service credit. The maximum total unused sick leave that can be converted shall be ten (10) eight (8) hour working days equal to eighty (80) hours. This section applies to members whose effective date of retirement is within four (4) months or one hundred twenty (120) days of separation from employment. (Government Code Section 20965). The City may amend it contract with CalPERS to eliminate this benefit for employees hired after the effective date of the contract amendment. Employees hired on or after a contract amendment between the City and CalPERS to eliminate this benefit shall not be eligible to convert unused sick leave to CalPERS for service credit. 13.11 Uniform Allowance. With respect to Safety and Miscellaneous employees who do not qualify as “New Members” under the California Public Employees’ Pension Reform Act (PEPRA), the City shall report to CalPERS the monetary value of uniforms and uniform maintenance for those employees required to wear uniforms. The monetary value (as of the first date of the MOU) by classification is listed in Exhibit B, entitled “Uniform Allowance by Classification.” The monthly amounts listed in Exhibit B may be adjusted (either upward or downward) as the cost of the uniforms and/or their maintenance changes. The value of the Uniform Allowance shall be determined by the City (based on the current cost of the uniforms and/or their maintenance at the time of the report to CalPERS) and will be reported to the California Public Employees’ Retirement System (CalPERS) for retirement purposes only. Under CCR 571(a), Uniform allowance is defined as “Compensation paid or the monetary value for the purchase, rental and/or maintenance of required clothing, including clothing made from specially designed protective fabrics, which is a ready substitute for personal 53 attire the employee would otherwise have to acquire and maintain. This excludes items that are solely for personal health and safety such as protective vests, pistols, bullets and safety shoes. The parties agree that to the extent permitted by law, Uniform Allowance is special compensation and shall be reported pursuant to Title 2, CCR 571(a)(5) as Uniform Allowance. This is only reportable to CalPERS as special compensation for those who qualify as classic members as described by the Public Employees’ Pension Reform Act of 2013 –PEPRA. This pay is not reportable as special compensation for employees defined as “new members” under PEPRA. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation. 54 ARTICLE XIV 14.0 ASSOCIATION LEAVE 14.1 The City agrees to grant full-time release from duty for the Association President subject to the following: A. The Association President shall be: 1. Required to attend POST training and maintain qualifications (training, certifications, weapons, etc.) to work as a sworn peace officer; 2. Eligible to work overtime assignments with prior approval of the Chief of Police; 3. Required to report to duty in the event of a declared emergency as determined by the Chief of Police; and 4. Assigned to a 5/40 work schedule and shall report time off usage (vacation, sick, etc.) in accordance with City and department policies and procedures. 14.2 The City shall pay the Association President the percentage difference between what the Association President receives in base pay plus other forms of special compensation (with the exception of Employer Paid Member Contribution identified in Title 2 California Code of Regulations Section 571), and four and three-fourths percent (4.75%) over the top step pay of the next higher rank including base pay plus other forms of special compensation available to the next higher rank (with the exception of Employer Paid Member Contribution identified in Title 2 California Code of Regulations Section 571). During the time that an employee is the Association President, it is CalPERS’ determination as to whether any form of special compensation being paid to the POA President can be reported as compensation earnable or pensionable compensation. If CalPERS concludes that any form of special compensation cannot be reported as compensation earnable or pensionable compensation it will not be reported. If CalPERS concludes that any form of special compensation can be reported as compensation earnable or pensionable compensation it will be reported. 14.3 All employees shall donate the one (1) floating holiday (set forth in Section 9.1), and effective January 1, 2025, an additional four (4) holiday hours (for a total of twelve (12) hours) annually to pay for the Association President’s Leave. The floating holiday, which would otherwise accrue in January, will not accrue so that its value can be used throughout the calendar year to pay for the Association President’s Leave. Effective January 1, 2025, the additional four (4) hours of holiday pay will be reduced from each holiday so that per Section 9.2, employees shall accrue 7.67 hours (instead of eight (8) hours) of holiday pay or leave per holiday. Per Section 9.3 of this MOU, newly appointed employees who become employees of the bargaining unit after January 1 must wait six (6) months to receive credit for the floating holiday. As such, for employees hired between January 1 and June 30 of each calendar 55 year, their floating holiday will not accrue, but will be used by the City to pay for Association President’s Leave in the same calendar year six (6) months after being hired. Employees hired on or after July 1 will not earn a floating holiday in the same calendar year. These employees will earn their floating holidaysix (6) months after being hired. At that time, the floating holiday they would have otherwise accrued will not accrue, but rather be used by the City to pay for Association President’s Leave. For the annual calculation described in Section 14.4, for employees hired between January 1 and June 30, the City will include the eight (8) hours of their holiday leave. For employees hired between July 1 and December 31, since they will not be earning a floating holiday in the year they are hired, the City will not use any hours in the same calendar year hired in calculating the annual value of the floating holiday leave from employees. 14.4 Accounting for Association Representative Leave. A. At the end of each calendar year by January 31 of the following year, the City will provide the Association with an accounting of the value of the Association President’s Leave used in the prior calendar year. The purpose of this accounting will be to compare the value of the floating holiday leave (and effective January 1, 2025 the value of the floating holiday and four (4) additional hours - for a total of twelve (12) hours) that was not earned by the employees in the calendar year to the value of the Association President’s Leave used by the Association. B. In conducting this accounting, the value of the floating holiday leave will be determined by the hourly total cost of each employee (base pay, any additional special pay additives and all employer benefits costs (including, but not limited to, health allowances and employer total cost of retirement – employer normal cost plus Employer Paid Member Contribution) who, in the calendar year, donated their eight (8) hour floating holiday (and effective January 1, 2025 the value of the floating holiday and four (4) additional hours - for a total of twelve (12) hours). C. In determining the value of the Association President’s Leave, the City will take the total cost of the Association President (base pay, any additional special pay additives and all employer benefit costs, including, but not limited to, health allowances and employer cost of retirement – employer normal cost plus Employer Paid Member Contribution) and divide it by two thousand eighty (2,080) hours. That will determine the hourly value of total cost of the Association President’s Leave. The City will then review the number of hours of Association President’s Leave used and determine the cost of the leave hours used by multiplying the number of leave hours by the hourly value of total cost the Association President. In evaluating the total cost of the Association President, it shall include the cost of all wages and benefits including, but not limited to, health and retirement benefits. D. If the value of the floating holiday leave (and effective January 1, 2025 the value of the floating holiday and four (4) additional hours - for a total of twelve (12) hours)) that was donated exceeds the value of the Association President’s Leave, the City will issue a check to the Association for the difference in value, which will be used for the Association’s general fund. The Association may instead elect to 56 convert the difference in value (up to one thousand (1,000) hours) to be used as Association Leave in that fiscal year, as long as the City captures the cost of the person using the leave as well as the cost of any other person who is working as a result of the person using the leave. Such non-cumulative Association Leave would be in addition to the Association Leave provided for in Section 14.6. The terms in Section 14.6 would apply to Association Leave provided in this section. Similarly, if the value of the floating holiday leave (and effective January 1, 2025 the value of the floating holiday and four (4) additional hours - for a total of twelve (12) hours)) that was donated is less than the value of the Association President’s Leave, the Association will issue a check to the City for the difference in value. This provision will ensure that employees represented by the Association will pay for the precise cost of the Association President’s Leave used in the calendar year. 14.5 The Police Chief shall allow on-duty time, up to three (3) days for five (5) board members, once per year, to attend the Peace Officers’ Memorial. The Police Chief shall allow on- duty time, up to four (4) days for five (5) board members, once per year, to attend the Fraternal Order of Police (“FOP”) training. The Association will pay for all costs for the board members’ attendance at said events, including per diem, travel, hotel, etc. If the Memorial or FOP falls on a board member’s normal day off, they will not receive on-duty pay for attendance. 14.6 The City agrees to grant up to a total of one hundred ninety (190) hours per fiscal year on a non-cumulative basis to enable Association members, officers, worksite leaders/stewards, to conduct union business and assist other bargaining unit employees in processing grievances under the Grievance Review Procedure; provided, however, that such Association members, officers, worksite leaders/stewards, and aggrieved employees shall make advance arrangement with their supervisors prior to absenting themselves for such purpose. The officers, worksite leaders/stewards, and aggrieved employees shall be required by the City to record and report to their supervisors the work time spent in assisting other bargaining unit employees pursuant to this provision of the MOU. 57 ARTICLE XV 15.0 RESIDENCY 15.1 At the discretion of the Police Chief, selected special duty assignments may be designated as rapid response assignments. In those instances, the Police Chief may apply specific requirements upon members assigned to those positions to live within a certain distance of City Hall. 58 ARTICLE XVI 16.0 DISCIPLINE 16.1 Pre-Disciplinary Procedure If an employee is to be suspended without pay, receive a reduction in pay, transferred for purposes of discipline, demoted, or discharged, the employee shall: A. Receive written notice of the intended action at least ten (10) calendar days before the date it is intended to become effective, stating the specific grounds and the particular facts upon which the intended action is based. B. Receive copies of any known materials, reports, transcripts, statements, or other documents upon which the intended action is based. C.Be accorded the right to respond to the intended charges in writing or in person with the Chief of Police or designee within a reasonable period of time, not to exceed ten (10) business days unless the Chief of Police or designee authorizes a longer time. D. Be given the written decision of the Chief of Police or designee prior to the effective date of the disciplinary action. 16.2 Disciplinary Appeals Procedure The following appeals procedures are adopted by the parties pursuant to Government Code section 3304.5 of the Public Safety Officers’ Procedural Bill of Rights Act. A. Punitive Action - The term “punitive action” means any action defined by Government Code section 3303, i.e., “any action that may lead to dismissal, demotion, suspension, reduction in salary, written reprimand, or transfer for purposes of punishment.” B. Formal Appeals Procedures – For Punitive Action not Covered by the Informal Hearing Process 1. Filing an appeal: If an employee desires to appeal a disciplinaryaction not covered by the informal process, they (or their representative) shall submit a written notice of appeal to the Executive Director of Human Resources or designee. A representative of the City shall contact either the employee or their identified representative within ten (10) calendar days of receipt of the notice of appeal to determine whether the parties can agree on an arbitrator to hear the appeal. If the parties cannot reach agreement on an arbitrator, the Executive Director of Human Resources or designee will send a letter to the State Mediation and Conciliation Service requesting a list of seven (7) arbitrators. Once the list is received, the representatives of the parties shall strike names until an arbitrator is chosen. The parties shall toss a coin to determine who shall 59 strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. 2. Hearing process: During the hearing, the formal rules of evidence do not apply. The cost of the list of arbitrators, the arbitrator themselves, and the court reporter shall be split evenly (50% and 50%) between the City and the Association. Once the arbitrator issues their advisory recommendation, the Executive Director of Human Resources or designee will submit the advisory recommendation to the City Manager. a. The Arbitrator’s Recommendation: The arbitrator shall issue their advisory recommendation within thirty (30) calendardays from the conclusion of the hearing. 3. The City Manager’s Role: Within thirty-five (35) calendardays of receipt of the advisory arbitrator’s recommendation, the City Manager shall issue and send their final written decision to the parties. The City Manager may accept, reject, or modify the arbitrator's advisory recommendation or any part thereof. In no case, however, may the City Manager increase the penalty above that imposed by the Chief of Police. The City Manager's decision shall be final and binding. In reaching their decision, the City Manager shall review the arbitrator's advisory recommendation and the evidence, both documentary and testimonial, and arguments presented duringthe advisory arbitration. 4. Right to File in Court: The employee has the right to appeal the City Manager’s decision in accordance with California Code of Civil Procedure section 1094.6 that provides a ninety (90) day statute of limitations. 16.3 Informal Appeals Procedures The Informal Appeals Procedure, as opposed to the formal procedures, will be used for written reprimands. A. Appeal to the Chief of Police 1. The appeal is an opportunity for the employee to present information and arguments why a punitive action should not occur or offer alternatives to the action. 2. Notice of Appeal: Within ten (10) calendardays of receipt by an employee of the written reprimand, the employee shall notify the Executive Director of Human Resources or Designee in writing that they intend to appeal the written reprimand. The Executive Director of Human Resources or designee shall contact either the employee or their identified representative within ten (10) calendar days of receipt of the notice of appeal to schedule the appeal. 60 3. Hearing Officer: The Chief of Police shall act as the hearing officer. The meeting shall take place within twenty-one (21) calendar days of the date the employee filed the appeal or such other time as may be agreeable by the parties. 4. Decision: After the meeting, a decision will be submitted in writing within thirty (30) calendar days and provided to the employee. The decision is final. The decision shall advise the employee that the time within which judicial review of the decision may be sought as governed by Code of Civil Procedure § 1094.6. 16.4 The appeal of performance evaluations shall be subject to a one (1) step appeal to the Chief of Police or City Manager or designee (depending on who made the decision) as determined by the Executive Director of Human Resources or designee. Such requests for appeal shall be submitted in writing to the Executive Director of Human Resources or designee within ten (10) calendar days from the date the employee received the performance evaluation. The Chief of Police or City Manager or designee shall meet with the employee within ten (10) calendar days after submission of the appeal. The Chief of Police or City Manager or designee shall deliver the written response to the employee within ten (10) calendar days after meeting with the employee. The decision of the Chief of Police or City Manager or designee shall be final and binding. 16.5 Employees may be represented by up to two (2) representatives of their choice when entitled to a representative by law (for example, one (1) attorney and one (1) Association representative, or two (2) Association representatives). 16.6 The parties can mutually agree to extend any deadlines in this Article. 61 ARTICLE XVII 17.0 GRIEVANCE REVIEW PROCEDURE 17.1 Definition of Grievance. A grievance shall be defined as a timely complaint by an employee, a group of employees or the Association concerning the interpretation or application of specific provisions of this MOU, or of the rules and regulations governing personnel practices or working conditions of the City; except, however, those matters specifically assigned to the jurisdiction of the City Personnel Board by provisions of the City Charter and the Civil Service Rules and Regulations. No employee shall suffer any reprisal for filing or processing a grievance or participating in the Grievance Review Procedure. 17.2 Step 1. A. An employee or the Association must first attempt to resolve the grievance at Step 1 with the Executive Director of Human Resources or designee without undue delay, but in no case, beyond a period of ten (10) calendar days after the occurrence of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance. The parties can mutually agree to extend any deadlines in this section. B. The Executive Director of Human Resources or designee will respond to the grievance within fourteen (14) calendar days of receiving the grievance. C. Every effort shall be made to find an acceptable solution to the grievance at Step 1. D. If the grievant is not satisfied with the response from the Executive Director of Human Resources or designee, the grievant, within ten (10) calendar days of receiving the response must submit the grievance in writing to Step 2 (advisory arbitration) by emailing the Executive Director of Human Resources or designee. Should the grievant fail to file a written grievance at Step 2, within ten (10) calendar days after receiving the response at Step 1, the grievance shall be barred and waived. 17.3 Step 2. A. A representative of the City shall contact the grievant within ten (10) calendar days of receipt of the Step 2 grievance to determine whether the parties can agree on an arbitrator to hear it. If the parties cannot reach agreement on an arbitrator, the Executive Director of Human Resources or designee will send a letter to the State Mediation and Conciliation Service requesting a list of seven (7) arbitrators. Once the list is received, the representatives of the parties shall strike names until an arbitrator is chosen. The parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. 62 B.Hearing Process: During the hearing, the formal rules of evidence do not apply. The cost of the list of arbitrators, the arbitrator themselves, and the court reporter shall be split evenly (50% and 50%) between the City and the Association. Once the arbitrator issues their advisory recommendation, the Executive Director of Human Resources or Designee will submit the advisory recommendation to the City Manager. 1. The Arbitrator’s Decision: The arbitrator shall issue their advisory recommendation withinthirty (30) calendar days from the conclusion of the hearing. C.The City Manager’s Role: Within thirty-five (35) calendar days of receipt of the advisory arbitrator’s recommendation, the City Manager shall issue and send their final written decision to the parties. The City Manager may accept, reject, or modify the arbitrator's advisory recommendation or any part thereof. The City Manager's decision shall be final and binding. In reaching their decision, the City Manager shall review the arbitrator's advisory recommendation and the evidence, both documentary and testimonial, and arguments presented at the advisory arbitration. D. Right to File in Court: The employee has the right to appeal the City Manager’s decision in accordance with California Code of Civil Procedure section 1094.6 that provides a ninety (90) day statute of limitations. 17.4 Alleged violations of City Rules, Regulations, and Policies If an employee, group of employees or the Association (grievant) believes there has been a violation, misapplication or misinterpretation of a City rule, regulation or policy, the grievant may, file a grievance within ten (10) calendar days of the alleged violation, misapplication or misinterpretation or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance. The parties may mutually agree to extend the timeline to file a grievance per this section. Such a grievance should be filed with the Executive Director of Human Resourcesor designee. The grievant may request a meeting with either the Chief of Police or City Manager (depending on who made decision). The decision of Chief of Police or City Manager’s shall be final. 63 ARTICLE XVIII 18.0 DUES DEDUCTION AND INDEMNIFICATION 18.1 Dues Deduction. The City shall deduct dues, on a regular basis, from the pay of all employees recognized to be represented by the Association, who voluntarily authorize such deduction, in writing, on a form to be provided for this purpose by the City. The City shall remit such funds to the Association within thirty (30) days following their deduction. 18.2 Indemnification. The Association agrees to hold the City harmless and indemnify the City against any claims, causes of actions, or lawsuits instituted by a member or members of the Association arising out of the deductions or transmittal or such funds to the Association, except the intentional failure of the City to transmit, to the Association, monies deducted from the employees pursuant to this Article. 64 ARTICLE XIX 19.0 CITY RIGHTS 19.1 The City reserves, retains, and is vested with, solely and exclusively, all rights of Management which have not been expressly abridged by specific provision of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of Management, as they are not abridged by this MOU or by law, shall include but not be limited to the following rights: A. To manage the City generally and to determine the issues of policy. B. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services. C. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. D. To determine methods of financing. E. To determine types of equipment or technology to be used. F. To determine and/or change the facilities, methods, technology, means, and size of the work force by which the City operations are to be conducted. G. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City. H. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments. I. To relieve employees from duties for lack of work or similar non-disciplinary reason, subject to the provisions of the City Charter, Municipal Code, federal and state law and this MOU. J. To establish and modify productivity and performance programs and standards. K. To discharge, suspend, demote, or otherwise discipline employees for proper cause in accordance with the provisions and procedures set forth in the City Charter and Santa Ana Municipal Code. L. To determine job classifications and to reclassify employees as well as to determine minimum qualifications for entry level classifications. 65 M. To hire, transfer, promote, and demote employees for non-disciplinary reasons in accordance with this MOU. N. To determine policies, procedures, and standards for selection, training, and promotion of employees. O. To establish employee performance standards including, but not limited to, quality and quantity standards and to require compliance therewith. P. To maintain order and efficiency in its facilities and operations. Q. To establish and promulgate and/or modify rules and regulations to maintain order and safety in the City which are not in contravention with this MOU. R. To take any and all necessary action to carry out the mission of the City. 19.2 Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of Management's rights shall impact on a significant number of employees of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in the MOU. The City and Association agree that upon the expiration of this MOU and during the good faith negotiations for a subsequent contract, salary and benefits shall continue at the then current rate. 66 ARTICLE XX 20.0 STRIKES AND WORK STOPPAGES 20.1 Prohibited Conduct. A. The Association, its officers, agents, representatives, and/or members agree that during the term of this MOU, they will not cause or condone any unlawful strike, walkout, slowdown, sick-out or any other unlawful job action by withholding or refusing to perform services. B. Any employee who participates in any conduct prohibited in Subsection A above shall be subject to suspension, demotion or dismissal by the appointing authority. C. In addition to any other lawful remedies or disciplinary actions available to the City, if the Association fails, in good faith, to perform all responsibilities listed below in Section 20.2, Association Responsibility, the City may suspend any and all rights and privileges, accorded to the Association in this MOU, including but not limited to suspension of the Grievance Review Procedure and dues deduction. 20.2 Association Responsibility. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 20.1(A) of this Article, Prohibited Conduct, the Association shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this MOU and unlawful, and they must immediately cease engaging in conduct prohibited in said Section 20.1(A), and return to work. 67 ARTICLE XXI 21.0 LAYOFFS 21.1 All layoffs within the competitive service occasioned by abolishment of a position, the combination of duties of two (2) or more positions, or the reduction in numbers of employees in a given class, shall be governed by seniority in the class. Reemployment shall be in reverse order of layoff. 21.2 Any promotional probationary employee laid off under these procedures who held permanent status in a lower class shall retain seniority rights in the previously held classification provided that it is still listed in the City's current basic classification and compensation plan. 21.3 Any permanent, full-time employee laid off under the above provisions may request a demotion to a position in a lower class provided they meets reasonably related qualifications required for placement in the class and the position is vacant. 21.4 In lieu of layoff, an employee may elect to work in a lower level classification, in which they has served, providing that classification is within the same job family/career ladder. In that event, the employee’s length of service in the next lower classification will be added to their length of service in the affected classification, and said combined seniority shall be used to bump down into the next lower classification. This method of combining seniority shall be applied to subsequent lower classifications. 21.5 For positions that were advertised in the Police Department as “open and promotional” or “promotional only” which are open to Police Department employees only, there will be created a “job ladder” such that those employees in positions to be eliminated through layoff shall be entitled to return to the POA job classification in the Police Department from which they promoted, “bumping” any employee in that job class with less cumulative years of service in that job class than the bumping employee had in that job class prior to promotion. 21.6 Notice of Service. On request, a laid off employee shall receive a statement certifying that their services have been satisfactory. Layoff shall not be used in lieu of a disciplinary dismissal. 68 ARTICLE XXII 22.0 SOLE AND ENTIRE AGREEMENT 22.1 It is the intent of the parties hereto that the provisions of this MOU shall supersede all prior agreements and memoranda of agreement, or memoranda of understanding, or contrary salary and/or personnel rules and regulations or administrative codes, provisions of the City, oral and written, expressed or implied, between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be asserted hereunder. This MOU is not intended to conflict with federal or state law or the City Charter. 22.2 The City will continue to administer its employee relations and its personnel policies and procedures in accordance with duly-adopted ordinances and resolutions, and the affected employees will continue to be governed thereby during the term of this MOU. 69 ARTICLE XXIII 23.0 WAIVER OF BARGAINING DURING THE TERM OF THIS MOU 23.1 During the term of this MOU, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours, and terms and conditions of employment, whether or not covered by the MOU or in the negotiations leading thereto, unless required by specific provisions of this MOU, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this MOU. 70 ARTICLE XXIV 24.0 SEPARABILITY PROVISION 24.1 Should any provision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this MOU shall remain in full force and effect for the duration of this MOU, provided that if any such affected provisions invalidate or void any benefits of employees covered hereunder, the parties shall forthwith commence negotiations to discuss the impact of the invalidation. 71 ARTICLE XXV 25.0 TERM OF MOU 25.1 The term of this MOU shall be from January 1, 2024 through June 30, 2027. 72 EXHIBIT A MONTHLY WAGE RATE SCHEDULE EFFECTIVE JANUARY 1, 2024 TO JULY 13, 2024 SWORN CLASSIFICATIONS JOB JOB TITLE CODE STEP ASTEP B STEP C STEP D STEP E Police Officer 032008,1538,560 8,989 9,439 9,911 Police Sergeant0330010,059 10,562 11,090 11,644 12,227 NON-SWORN CLASSIFICATIONS JOB JOB TITLE CODE STEP ASTEP B STEP C STEP D STEP E Animal Service Officer I039205,7656,0536,3576,6747,008 Animal Service Officer II 03930 6,6747,008 7,359 7,726 8,112 Background Investigator 06170 6,2036,514 6,838 7,180 7,540 Communications Services Officer 07660 5,6275,908 6,203 6,514 6,838 Correctional Officer 00310 6,2036,514 6,838 7,180 7,540 Correctional Supervisor 00370 7,8808,274 8,688 9,123 9,579 Crime Research Aide 03995 6,5466,872 7,215 7,576 7,956 Crime Research Analyst03990 7,4317,803 8,194 8,603 9,033 Emergency Operations Coordinator02705 8,6889,123 9,579 10,059 10,562 Firearms Examiner 07600 8,1538,560 8,989 9,439 9,911 Forensic Services Supervisor 01360 9,4859,960 10,458 10,981 11,530 Forensic Specialist I 03970 6,5466,872 7,215 7,576 7,956 Forensic Specialist II 03980 7,1807,540 7,918 8,314 8,730 Parking Control Officer 03900 4,8575,103 5,359 5,627 5,908 Police Athletic / Activities League 03600 5,5995,879 6,173 6,482 6,805 Assistant Director Police Communications Supervisor 06180 7,7268,112 8,518 8,945 9,393 Police Community Services 00780 6,2036,514 6,838 7,180 7,540 Specialist Police Evidence and Supply 00799 5,7095,995 6,295 6,610 6,940 Specialist Police Evidence and Supply 00801 6,2956,610 6,940 7,287 7,650 Supervisor Police Investigative Specialist 00790 6,2036,514 6,838 7,180 7,540 Police Photo / Video Specialist01100 6,0536,357 6,674 7,008 7,359 Police Property and Evidence 00800 6,2956,610 6,940 7,287 7,650 Supervisor Police Recruit 03870 6,4826,805 7,145 7,504 7,880 Police Service Officer 03800 5,6275,908 6,203 6,514 6,838 Police Services Dispatcher03680 6,3576,674 7,008 7,359 7,726 Rangemaster 03820 5,6275,908 6,203 6,514 6,838 Senior Parking Control Officer 01270 5,3595,627 5,908 6,203 6,514 Traffic Services Specialist 00860 6,2036,514 6,838 7,180 7,540 75 MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 14, 2024 TO JULY 12, 2025 SWORN CLASSIFICATIONS JOB JOB TITLE CODE STEP ASTEP B STEP C STEP D STEP E Police Officer 032008,4798,902 9,349 9,817 10,307 Police Sergeant0330010,461 10,984 11,534 12,110 12,716 NON-SWORN CLASSIFICATIONS JOB JOB TITLE CODE STEP ASTEP B STEP C STEP D STEP E Animal Service Officer I039205,9966,295 6,611 6,941 7,288 Animal Service Officer II 039306,9417,288 7,653 8,035 8,436 Background Investigator 061706,4516,775 7,112 7,467 7,842 Communications Services Officer076605,8526,1446,4516,7757,112 Correctional Officer 003106,4516,775 7,112 7,467 7,842 Correctional Supervisor 003708,1958,605 9,036 9,488 9,962 Crime Research Aide 039956,8087,147 7,504 7,879 8,274 Crime Research Analyst039907,7288,115 8,522 8,947 9,394 Emergency Operations Coordinator027059,0369,488 9,962 10,461 10,984 Firearms Examiner 076008,4798,902 9,349 9,817 10,307 Forensic Services Supervisor 013609,86410,358 10,876 11,420 11,991 Forensic Specialist I 039706,8087,147 7,504 7,879 8,274 Forensic Specialist II 039807,4677,842 8,235 8,647 9,079 Parking Control Officer 039005,0515,307 5,573 5,852 6,144 Police Athletic / Activities League 036005,8236,114 6,420 6,741 7,077 Assistant Director Police Communications Supervisor 061808,0358,436 8,859 9,303 9,769 Police Community Services 007806,4516,775 7,112 7,467 7,842 Specialist Police Evidence and Supply 007995,9376,235 6,547 6,874 7,218 Specialist Police Evidence and Supply 008016,5476,874 7,218 7,578 7,956 Supervisor Police Investigative Specialist 007906,4516,775 7,112 7,467 7,842 Police Photo / Video Specialist011006,2956,611 6,941 7,288 7,653 Police Property and Evidence 008006,5476,874 7,218 7,578 7,956 Supervisor Police Recruit 038706,7417,077 7,431 7,804 8,195 Police Service Officer 038005,8526,144 6,451 6,775 7,112 Police Services Dispatcher036806,6116,941 7,288 7,653 8,035 Rangemaster 038205,8526,144 6,451 6,775 7,112 Senior Parking Control Officer 012705,5735,852 6,144 6,451 6,775 Traffic Services Specialist 008606,4516,775 7,112 7,467 7,842 76 MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 13, 2025 TO JULY 11, 2026 SWORN CLASSIFICATIONS JOB JOB TITLE CODE STEP ASTEP B STEP C STEP D STEP E Police Officer 032008,8189,258 9,723 10,210 10,719 Police Sergeant0330010,879 11,423 11,995 12,594 13,225 NON-SWORN CLASSIFICATIONS JOB JOB TITLE CODE STEP ASTEP B STEP C STEP D STEP E Animal Service Officer I039206,2366,547 6,875 7,219 7,580 Animal Service Officer II 039307,2197,580 7,959 8,356 8,773 Background Investigator 061706,7097,046 7,396 7,766 8,156 Communications Services Officer076606,0866,3906,7097,0467,396 Correctional Officer 003106,7097,046 7,396 7,766 8,156 Correctional Supervisor 003708,5238,949 9,397 9,868 10,360 Crime Research Aide 039957,0807,433 7,804 8,194 8,605 Crime Research Analyst039908,0378,440 8,863 9,305 9,770 Emergency Operations Coordinator027059,3979,868 10,360 10,879 11,423 Firearms Examiner 076008,8189,258 9,723 10,210 10,719 Forensic Services Supervisor 0136010,259 10,772 11,311 11,877 12,471 Forensic Specialist I 039707,0807,433 7,804 8,194 8,605 Forensic Specialist II 039807,7668,156 8,564 8,993 9,442 Parking Control Officer 039005,2535,519 5,796 6,086 6,390 Police Athletic / Activities League 036006,0566,359 6,677 7,011 7,360 Assistant Director Police Communications Supervisor 061808,3568,773 9,213 9,675 10,160 Police Community Services 007806,7097,046 7,396 7,766 8,156 Specialist Police Evidence and Supply 007996,1746,484 6,809 7,149 7,507 Specialist Police Evidence and Supply 008016,8097,149 7,507 7,881 8,274 Supervisor Police Investigative Specialist 007906,7097,046 7,396 7,766 8,156 Police Photo / Video Specialist011006,5476,875 7,219 7,580 7,959 Police Property and Evidence 008006,8097,149 7,507 7,881 8,274 Supervisor Police Recruit 038707,0117,360 7,728 8,116 8,523 Police Service Officer 038006,0866,390 6,709 7,046 7,396 Police Services Dispatcher036806,8757,219 7,580 7,959 8,356 Rangemaster 038206,0866,390 6,709 7,046 7,396 Senior Parking Control Officer 012705,7966,086 6,390 6,709 7,046 Traffic Services Specialist 008606,7097,046 7,396 7,766 8,156 77 MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 12, 2026 SWORN CLASSIFICATIONS JOB JOB TITLE CODE STEP ASTEP B STEP C STEP D STEP E Police Officer 032009,1719,628 10,112 10,618 11,148 Police Sergeant0330011,314 11,880 12,475 13,098 13,754 NON-SWORN CLASSIFICATIONS JOB JOB TITLE CODE STEP ASTEP B STEP C STEP D STEP E Animal Service Officer I039206,4856,809 7,150 7,508 7,883 Animal Service Officer II 039307,5087,883 8,277 8,690 9,124 Background Investigator 061706,9777,328 7,692 8,077 8,482 Communications Services Officer076606,3296,6466,9777,3287,692 Correctional Officer 003106,9777,328 7,692 8,077 8,482 Correctional Supervisor 003708,8649,307 9,773 10,263 10,774 Crime Research Aide 039957,3637,730 8,116 8,522 8,949 Crime Research Analyst039908,3588,778 9,218 9,677 10,161 Emergency Operations Coordinator027059,77310,263 10,774 11,314 11,880 Firearms Examiner 076009,1719,628 10,112 10,618 11,148 Forensic Services Supervisor 0136010,669 11,203 11,763 12,352 12,970 Forensic Specialist I 039707,3637,730 8,116 8,522 8,949 Forensic Specialist II 039808,0778,482 8,907 9,353 9,820 Parking Control Officer 039005,4635,740 6,028 6,329 6,646 Police Athletic / Activities League 036006,2986,613 6,944 7,291 7,654 Assistant Director Police Communications Supervisor 061808,6909,124 9,582 10,062 10,566 Police Community Services 007806,9777,328 7,692 8,077 8,482 Specialist Police Evidence and Supply 007996,4216,743 7,081 7,435 7,807 Specialist Police Evidence and Supply 008017,0817,435 7,807 8,196 8,605 Supervisor Police Investigative Specialist 007906,9777,328 7,692 8,077 8,482 Police Photo / Video Specialist011006,8097,150 7,508 7,883 8,277 Police Property and Evidence 008007,0817,435 7,807 8,196 8,605 Supervisor Police Recruit 038707,2917,654 8,037 8,441 8,864 Police Service Officer 038006,3296,646 6,977 7,328 7,692 Police Services Dispatcher036807,1507,508 7,883 8,277 8,690 Rangemaster 038206,3296,646 6,977 7,328 7,692 Senior Parking Control Officer 012706,0286,329 6,646 6,977 7,328 Traffic Services Specialist 008606,9777,328 7,692 8,077 8,482 78 EXHIBIT B MONTHLY UNIFORM ALLOWANCE BY CLASSIFICATION Job Title Rounded to .10 POA-NSAnimal Services Officer I $ 27.50 POA-NSAnimal Services Officer II$ 27.50 POA-NSCommunications Services Officer $ 28.40 POA-NSCorrectional OfficerI $ 27.50 POA-NSCorrectional Officer II $ 27.50 POA-NSCorrectional Supervisor $ 27.50 POA-NSForensic Specialist I $ 27.50 POA-NSForensic Specialist II $ 27.50 POA-NSForensic Specialist Supervisor $ 27.50 POA-NSParking Control Officer $ 27.50 POA-NSPolice Communications Supervisor $ 27.50 POA-NSPolice Community Services Specialist $ 27.50 POA-NSPolice Evidence & Supply Specialist $ 27.50 POA-NSPolice Evidence & Supply Supervisor $ 27.50 POA-NSPolice Investigative Specialist $ 27.50 POA-SWORNPolice Officer $ 27.50 POA-SWORNPolice Officer (with Motor Officer Premium)$ 38.60 POA-NSPolice Property & Evidence Supervisor$ 28.40 POA-NSPolice Recruit $ 27.50 POA-SWORNPolice Sergeant$ 27.50 POA-SWORNPolice Sergeant (with Motor Officer Premium)$ 38.60 POA-NSPolice Service Officer$ 27.50 POA-NSPolice Services Dispatcher $ 28.40 POA-NSSenior Parking Control Officer $ 27.50 POA-NSTrafficServices Specialist $ 27.50 79 EXHIBIT C HEALTH PLAN AGREEMENT by and between The City of Santa Ana and The Santa Ana Police Officers Association IN CONSIDERATION OF the mutual covenants, promises, and conditions set forth herein below and pursuant to Article XII of the Parties’ 2024-2027 Memorandum of Understanding (“MOU”), the City of Santa Ana (“City”) and Santa Ana Police Officers Association (“Association”) agree as follows: 1. The term of this Agreement shall begin on January 1, 2024. 2. Employees’ required contributions towards health plan premiums shall be determined by the Association. To the extent that the Affordable Care Act (“ACA”) is still the law, such employee contribution must fall below such threshold in order to meet the ACA’s affordability threshold under the Federal Poverty Line Safe Harbor. This means that the employee’s required contribution toward premiums for the lowest cost plan that offers minimum essential coverage shall not exceed nine and twelve hundredths percent (8.39%) (or the applicable percentage set by the ACA for the year) of the monthly Federal Poverty Line for a single individual that is in effect during the six (6) months prior to the start of the plan year (For example, in 2024, the monthly Federal Poverty Line for a single individual is one thousand two hundred fourteen dollars and ninetycents ($1,214.90); eight and thirty-nine one hundredths percent (8.39%) of one thousand two hundred and fourteen dollars and ninety cents ($1,214.90) is one hundred and one dollars and ninety-threecents ($101.93). This means that an employee’s required contribution toward the lowest cost plan for 2024 must not exceed one hundred and one dollars and ninety-three cents ($101.93). For employees who are on approved Family Leave pursuant to applicable law, the Association shall continue to pay health insurance premiums to the same extent the City would be required under applicable law or as long as the employee is considered full- time for Internal Revenue Service’s (“IRS”) ACA reporting by the City. 3. The City shall contribute to the Association medical insurance trust fund the following amounts for provision and administration of health and related benefits: The City shall contribute toward health benefits (including medical, dental, and long-term disability insurance benefits) one thousand five hundred seventy-five dollars ($1,575) per month for each actively employed enrollee member of the bargaining unit. a. Employees are not entitled to cash out any of the one thousand five hundred seventy-five dollars ($1,575) per month. b. The Association shall ensure that for purposes of the ACA’s affordability determination, the portion of the one thousand five hundred seventy-five dollars ($1,575) that makes the lowest cost plan affordable under the Federal Poverty Line 80 Safe Harbor is applied only to health premiums and cannot be applied to other insurance. 4. The Association shall maintain a medical insurance trust fund for the sole purpose of providing and administering health/dental/long-term disability benefit plans, which may include medical prescriptions, vision care, and/or long-term disability insurance, (“Health Benefit Plans”), for employees in the bargaining unit. Said medical insurance trust fund shall be administered by medical insurance trustee(s) designated by Association. Funds in said medical insurance trust shall not be co-mingled with other Association funds. It is intended that the administration of the Health Benefit Plans by the trust fund shall not survive the expiration of this Agreement without mutual written consent of the Parties. 5. Beginning with the calendar year ending December 31, 2023 and every year thereafter, the City shall reduce future monthly contributions towards health benefits for any excess fund balance being held in the Trust as of December 31. “Excess fund balance” shall be defined as any amount that exceeds four (4) times the total insurance premiums minus the employee's share of the premium contribution paid for the month ofDecember for the year just ended. The amount of the “excess fund balance” shall be determined following completion of an annual audit conducted by auditors that are agreed to by the City and the Association of the Association Medical Insurance Trust. Oncethe “excess fund balance” is determined for the prior calendar year, the City shall reduce its monthly contribution for the next six (6) months by one-sixth (1/6) of the “excess fund balance”. The application of these reductions for “excess fund balance” will begin to occur thirty (30) days after completion of the final audit report (e.g., if the determination of the “excess fund balance” occurs in February, then starting in March). 6. Health Benefit Plans provided through the medical insurance trust fund shall be made available by the Association to all employees in the bargaining unit. Employees must sign a written authorization for deductions. Annual predetermined rate increases shall be automatically adjusted with the approval of the Association, without arequirement for new payroll deduction forms. 7.The level of benefits for each type of plan shall be substantially similar to those provided to employees not represented by the Association under the Public Employees’ Medical & Hospital Care Act (“PEMHCA”) that governs the California Public Employees’ Retirement System (“CalPERS”) Health Insurance programs during the twelve (12) month period immediately preceding this Agreement. 8.Health Benefit Plans must receive prior approval from the Executive Director of Human Resources or designee whose approval shall not be unreasonably withheld. Group policies must be designated as such in the California Insurance Code and issuance must be lawful in this state. The Association shall offer health plans that constitute minimum essential coverage and provide minimum value under the ACA’s employer shared responsibility provisions. The Association shall not offer reimbursement of premiums for health coverage obtained through Covered California, as this constitutes an impermissible employer payment plan under the ACA. 81 9. All costs of providing and administering the Health Benefit Plans shall be the sole responsibility of the Association. The City shall not be responsible for any cost of providing or administering said plans in excess of the amounts specified in this Agreement. The use of City contributions to cover the administrative costs of the program shall not exceed fifty thousand dollars ($50,000) during calendar year 2023. Each calendar year thereafter, the maximum amount of administrative costs funded using City contributions will be adjusted by the annual percentage change in the Medical Care Services Consumer Price Index (“CPI”) for all urban consumers as of November for the preceding year (i.e., the 2024 administrative fee will be adjusted by the annual change in CPI between November 2022 and November 2023). Administrative costs are defined as costs incurred as a result of administering said plans exclusive of premium payments. The City shall continue to take deductions from employees’ pre-taxed earnings in accordance with Article XII of the parties’ 2024-2027 Memorandum of Understanding. 10. The Association will be responsible for ensuring that best investment practices shall be used in accordance with applicable laws and regulations when investing the Trust’s funds. 11. The Association will be responsible for all accounting practices relating to the disbursement of all trust funds. Accounting practices will be in accordance with industry standards. 12. Upon completion of the annual audit, the Association shall provide the City with a copy of the annual audit within thirty (30) days of the report’s issuance. The annual audit report shall include actual cost of Health Benefit Plan premiums, total amount of contributed funds spent on all plans, and details of how all remaining contributed funds are spent or administered. As used in this Agreement, “remaining contributed funds” means any part of the City’s contribution that has not been spent on health benefit premiums. All books and records related to the administration and provision of such plans shall be available to audit and/or inspection by the City upon request and a thirty (30)-day notice. 13. All regular and probationary full-time employees in classifications represented by the Association and members of the Association shall be eligible and offered an opportunity to enroll in the Association plan options. No employee shall be eligible for City-provided Health Benefit Plans unless they are not a member of the Association. 14. The Association shall have an open enrollment at least once a year. 15. The waiting period for Health Benefit Plan coverage may not exceed sixty (60) days. 16. The Association may not terminate its Health Benefit Plans during the term of this Agreement. If the Association or health provider terminates Health Benefit Plan coverage, the City will terminate its contribution for the medical benefit trust fund thirty (30) days prior to plan termination unless the Association provides a suitable replacement plan approved by the Executive Director of Human Resources or designee whose approval shall not be unreasonably withheld. 17. Employees eligible for coverage under an Association plan as a result of change of City representation unit shall be enrolled without regard to pre-existing conditions of illness or 82 injury for plan benefits for themselves and their enrolled dependents. Employees eligible for coverage under a City health plan as a result of change of City representation unit shall be enrolled without regard to pre-existing conditions of illness or injury for plan benefits for themselves and their enrolled dependents. 18.In the administration and provision of health care plans, the Association shall comply with COBRA, HIPAA, ACA, and all other applicable state and federal laws and regulations to the same extent the City would be required to comply. 19. Association shall comply with all laws applicable to health and welfare benefit, and/or medical or similar benefit, trust funds and the administration and management thereof. 20. The Association shall take all steps necessary to ensure the confidentiality of Health Benefit Plan user information. 21. Except as provided below, plan eligibility shall terminate at the end of the calendar month in which any of the following occur: a. Employee terminates. However, this will not interfere with a former employee’s right to continue insurance coverage at their option as provided for under law. b. Change of bargaining unit. c. Disenrollment of a dependent (for the dependent). However, upon any of the above occurrences, if the employee would still be reported to the IRS as full-time under the ACA, then that employee’s Plan eligibility shall continue until the end of the stability period as reported by the City, or until coverage by the new City representation unit begins, whichever comes first. 22. The provisions of this Agreement shall not be subject to the grievance and arbitration provisions of the Parties’ separate Memorandum of Understanding. 23. The Association shall defend, indemnify and hold the City harmless from any claims or legal action arising out of, or in any way related to, Health Benefit Plans administered and/or provided pursuant to this Agreement, including any IRS penalties assessed as a result of the ACA’s employer shared responsibility provisions. This obligation shall not arise with respect to any claim or legal action brought by Association or employees concerning coverage overlap between the respective City and Association plans. 24. This Agreement is the entire, integrated agreement with respect to the subject matter hereof, and supersedes all prior and contemporaneous oral and written agreements and discussions. The Parties also agree that no modification of this Agreement shall be valid unless it is in writing and signed by all of the Parties to this Agreement. 25.This Agreement shall not be construed in favor or against any party, regardless of which party drafted or participated in the drafting of its terms. 83 26. The parties agree to reopen negotiations if any of the following occurs: a. If changes to the ACA occur which modify this Agreement, including additions or potential repeal; b. If there are other legislative changes that modify this Agreement. 84 Information Technology www.santa-ana.org/IT Item # 12 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Website ADA Access Software Subscription AGENDA TITLE Agreement with CivicPlus, LLC for DocAccess Software Subscription (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with CivicPlus, LLC for a DocAccess software license subscription for a one-year term, beginning April 7, 2026 through April 6, 2027, in an amount of $49,618, with two (2) optional one (1) year extensions for a total not to exceed amount of $169,621. (Agreement No. A-2026-XXX) GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION On April 24, 2024, the U.S. Department of Justice (DOJ) published a final rule updating regulations under Title II of the Americans with Disabilities Act (ADA) to establish specific requirements for the accessibility of web content and mobile applications provided by state and local government entities. The rule is intended to ensure that individuals with disabilities have equal access to digital services, programs, and activities offered by public agencies. The final rule adopts the Web Content Accessibility Guidelines (WCAG) Version 2.1, Level AA, as the technical standard for compliance. WCAG 2.1 Level AA is a globally recognized set of accessibility criteria that addresses a wide range of disabilities, including visual, auditory, cognitive, and motor impairments. These standards require that digital content be perceivable, operable, understandable, and robust. Examples of compliant practices include providing text alternatives for images, ensuring sufficient color contrast, enabling full keyboard navigation, offering captions for multimedia content, and maintaining consistent and predictable website functionality. Under the rule, local governments with populations of 50,000 or more, which includes the City of Santa Ana, are required to comply with these accessibility standards by April 24, 2026. Website ADA Access Software Subscription April 7, 2026 Page 2 The DOJ’s update reflects the increasing reliance on digital platforms for accessing government services and information. Ensuring compliance not only reduces legal risk but also promotes inclusivity, enhances user experience, and improves overall service delivery to the community. Staff has been working to make the City website ADA accessible. However, the extensive use of Adobe PDF documents on the website has been particularly challenging. PDF documents are often exported from print tools and lack HTML’s dynamic tagging. Retrofitting scanned or untagged PDFs is labor-intensive and costly. The DocAccess solution by CivicPlus can batch process, remediate, and publish accessible versions of all City PDF documents on the City’s website by utilizing a website plug-in. DocAccess utilizes a proprietary AI-driven process to remediate PDFs in bulk as well as monitor in real-time for ongoing compliance of PDFs on City websites. City staff has not identified any other solutions that can perform these functions and recommends approval of a sole source agreement with DocAccess. Failure to comply with the updated ADA requirements may expose the City to legal challenges and limit access to essential services for individuals with disabilities. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding is available in the current FY 2025-26 budget. Future fiscal year funding will be included in the proposed budgets for City Council consideration. Estimated amounts expended per fiscal year are shown in the table below. Fiscal Accounting Unit Fund Accounting Unit –Amount Year- Account No.DescriptionAccount No. Description 2025-2610920141-66511Information Enterprise Systems– $49,618 TechnologySoftware Maintenance & Support 2026-2710920141-66511Information Enterprise Systems– $58,538 TechnologySoftware Maintenance & Support 2027-2810920141-66511Information Enterprise Systems– $61,465 TechnologySoftware Maintenance & Support Total$169,621 Website ADA Access Software Subscription April 7, 2026 Page 3 EXHIBIT(S) 1.CivicPlus DocAccess Agreement Submitted By: Jack Ciulla, Chief Technology Innovations Officer Approved By: Alvaro Nuñez, City Manager Accessible Document Service Proposal Transform Your PDFs into Fully Accessible, Searchable, and Translatable Documents PREPARED FOR PREPARED BY Demi Perez Mariah Herschelman Administrator Business Development Representative DocAccess by CivicPlus City of Santa Ana, CA dperez10@santa-ana.orgmariah.herschelman@getstreamline.com (916) 900-6619 DocAccess Service Proposal for City of Santa Ana, CA Page 1 of 15 ExecutiveSummary City of SantaAna, CA faces a critical deadline for PDF accessibility compliance. After analyzing 18,373 links across its web properties, the DocAccess tool discovered at least 485 documents that can—and need to be—served in an accessible format. Withthis agreement, DocAccess will ensure all publicly available documents are served in an accessible format. Traditional remediation of just the documents identified would costapproximately $45,143 or could take 27 weeks of dedicated staff time. significantly less than traditional remediation in the first yearalone, with instant deploymentand ongoing compliance. DocAccess Service Proposal for City of Santa Ana, CA Page 2 of 15 The Accessibility Challenge Under the Americans with Disabilities Act (ADA) and recent Department of Justice guidelines, all public-facing digital content must be accessible to people with disabilities. This includes: Meeting WCAG2.1 AA standardsfor all PDF documents Providingequal access to information for allusers Avoiding costly lawsuits and compliance penalties Servingyourcommunity's 15-20%ofresidentswithdisabilities According to the U.S. Census Bureau American Community Survey (ACS) for Santa Ana, a large majorityofresidentsspeakalanguageotherthanEnglishathome—primarilySpanish—witha substantial share reporting that they speak English less than "very well." This indicates that multilingual access to public documents is important for effective communication with residents. DocAccessServiceProposalforCity of Santa Ana, CA Page3of15 TheDocAccessSolution DocAccess transforms your existing PDFs into fully accessible documents without changing your files or websitestructure.Ourcloud-basedsolutionprovides: Accessibility Automatic conversion to screen-reader Real-time translation powered by Google compatible HTML with proper semantic Translate, prioritizinglanguagesspoken in structure andWCAG 2.1AA compliance. 24/7 access to professional interpreters via Users can searchwithindocumentsand ask Aira for users who need additional questions in plain language, getting instant assistance - included at no extra cost. answers in their preferred language. Responsive design ensures perfect viewing AI-generated comprehensive alt-text for all on all devices, from smartphones to desktop images,charts,maps, anddiagrams computers. following WCAG best practices. DocAccess Service Proposal for City of Santa Ana, CA Page 4 of 15 Standards & Laws We Help You Meet Federal accessibility standard required for Disabilities Act requirements for public WCAG 2.1 AA International Web Content Accessibility International standardfor universally Guidelines—the gold standard for digital accessibility. Every Plan Includes Unlimited document views —No per-view charges, ever Automatic new document processing — New PDFsareprocessed as they're published 250 language translation — Real-timetranslationpoweredbyGoogleTranslate AI-powered Q&A — Users canask questions about document content in plain language Live visualinterpretation— 24/7 Aira access for users who need additional assistance Compliance dashboard — Monitor youraccessibility status in real-time DocAccess Service Proposal for City of Santa Ana, CA Page 5 of 15 No setup fees — Simple installation, no hidden costs How DocAccess Compares to Other Municipal Services Annual cost per resident comparison Fire Protection (avg) Parks & Recreation(avg) Library Services (avg) Elections Administration Why Not Traditional Remediation? $7-15+ per page, one-time Predictable annualpricing 20+ minutes of staff time per page Instant processing—no staff time Requires reprocessing when documents required update Automatically handles document No translation or search functionality updates Includes translation, search, andQ&A You own thecompliance burden forever We handle compliance—you focuson your mission DocAccess Service Proposal for City of Santa Ana, CA Page 6 of 15 Technical Excellence & Compliance DocAccess is built onindustry-leading standards and partnerships: Testing PDFs for WCAG 2.1 AA and PDF/UA compliance verified by VeraPDF validation Section 508 and ADA Title II & III compliance ISO 14289 (PDF/UA) standard adherence Tested with all majorscreen readers (JAWS, NVDA, VoiceOver) Regular audits by accessibility experts Continuous improvement through user and community feedback DocAccess Service Proposal for City of Santa Ana, CA Page 7 of 15 SimpleImplementationProcess Add one line of code to your website - similar to Google Analytics.Workswith any CMS or 1 platform. DocAccess scans and processes all yourPDFs, creating accessible versions without 2 touching your original files. Your PDFs are now served in an accessible, translatable, and mobile-friendly format.New 3 documents are processed automatically. Full dashboard for monitoring. DocAccess Service Proposal for City of Santa Ana, CA Page 8 of 15 Investment&Value What's Included: Unlimited documents on santa-ana.org Unlimited documentviews and downloads Automatic processing ofnewdocuments All accessibility features (translation, Q&A, live assistance) Compliancemonitoringdashboard Regular accuracyreviews by experts No setup fees or hidden costs DocAccess Service Proposal for City of Santa Ana, CA Page 9 of 15 FrequentlyAsked Questions No. DocAccesscreates WCAG2.1 AA compliant HTML formats that are the gold standard for ADA requirements. Your original PDFs remain unchanged as an alternative format for printing. Most organizations are fully operational within 24-48 hours of installing the DocAccess code. Complex documents may take slightly longer for our quality review process. DocAccess uniquely handles external PDFs youlink to, ensuring your users have an accessible experience even with third-party documents. DocAccess meets all federal ADA requirements and state-specific regulations for accessible document creation. No customer using DocAccess has paid even a dollar for any ADA lawsuit, claim,orfinerelatedtoitsdocuments.Ifyouencounteranissue,contactusimmediatelysowecan assist you with our unlimited accessibility and legal support program. DocAccess Service Proposal for City of Santa Ana, CA Page 10 of15 Service Agreement This Software as a Service Agreement ("Agreement") is entered into on , 2026, between CivicPlus, LLC ("Provider") and City of Santa Ana, CA ("Customer"). Services Provided DocAccess is a subscription-based accessibility solution that includes: Automated document accessibility compliance Real-time translation to 250 languages AI-poweredsearchandQ&Afunctionality 24/7 live visual interpretation services Compliance monitoring and reporting Subscription Metropolitan-305,000Population Plan-PubliclyAvailablePDFsonsanta-ana.org Terms List Price: $55,750 per year Discounted Fee: $49,618 first year (11% discount), then $55,750 per year Contract Term: , 2026 - , 2027 - 5% annual uplift starting Year 2 Payment Schedule: Every year, beginning April 1, 2026 PaymentTerms:Net45 Renewal Procedure: Upon mutual agreement of the parties 60 days prior to any renewal term Example Payment Schedule Invoice Dates ofService Rate Amount Complimentary Service 3/3/2026 - 3/31/2026 Free $0 First Invoice 4//2026 - /2027 $55,750/year (11% first year discount applied) $49,618 Future Invoice 4//2027 - /2028 $55,750/year + 5% uplift $58,538 This Service Agreement is governed by the terms and conditions of the Master Services Agreement and the DocAccess Terms and Conditions, both available at: https://www.civicplus.help/docs/legal-terms-and-conditions- for-services (collectively, the "Agreement"). By executing this Service Agreement, Customer acknowledges and DocAccess Service Proposal for City of Santa Ana, CA Page 11 of15 agrees to be bound by all terms and conditions set forth in the Agreement referenced above. In the event a Master Services Agreement is already executed between the parties, the existing agreement shall take precedence over the linked Master Services Agreement. Customer may issue purchase orders for its internal, administrative use only, and not to impose any contractual terms. Any terms contained in any such purchase orders issued by the Customer are considered null and will not alter the Binding Terms, the Agreement, or this service agreement. CivicPlus, LLC City of Santa Ana, CA Name: Mac Clemmens Name: Jack Ciulla Title: Title: SVP, DocAccess Co-Founder Date: 03-23-2026 Date: W-9 available at getstreamline.com/w9 | Fed Tax ID: 48-1202104 CITY OF SANTA ANAATTEST: _______________________ _______________________ ALVARO NUÑEZ JENNIFER L. HALL City ManagerCity Clerk APPROVED AS TO FORM: CivicPlus, LLC SONIA R. CARVALHO City Attorney By: _______________________ _______________________ JONATHAN T. MARTINEZ By: Mac Clemmens Assistant City AttorneyTitle:SVP, DocAccess Co-Founder RECOMMENDED FOR APPROVAL: ________________________ JACK CIULLA Chief Technology Innovations Officer Information Technologies Department DocAccess Service Proposal for City of Santa Ana, CA Page 12 of15 Company shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, and damages to property (including computer equipment), theft, or other misuse of Customer’s data, infringement of intellectual property, invasion of privacy and breach of data, which may arise from or in connection with the performance of the work hereunder by Company, its agents, representatives, or employees. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: 1.Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence and $2,000,000 general aggregate. 2.Cyber Liability (CL): Insurance, with limits not less than $2,000,000 per occurrence or claim and $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Company in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, and release of private information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses. 3.Technology Professional Liability Errors and Omissions Insurance (E&O): appropriate to the Company’s profession and work hereunder, with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Company in this agreement and shall include, but not be limited to, claims involving business interruption, damage to or destruction of electronic information, and alteration of electronic information. The policy shall provide coverage for Company’s failure to provide professional services and/or products under this Agreement. The Policy shall include, or be endorsed to include, damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of Customer in the care, custody, or control of Company. 4.Workers’ Compensation (WC): As required by the State of California, with statutory limits, and Employer’s Liability insurance with limits of no less than $1,000,000 per accident, policy, employee, for bodily injury or disease. If Company maintains broader coverage and/or higher limits than the minimums shown above for any line of coverage, Customer requires and shall be entitled to the broader coverage and/or the higher limits maintained by Company. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to Customer. Other Insurance Provisions The above required insurance policies are to contain or be endorsed to contain the following provisions: 1.City of Santa Ana, its City Council, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds, under Company’s CGL policy, with respect to any liability arising out of work or operations performed by or on behalf of the Company including materials, parts, equipment, and personnel furnished in connection with such work or operations. 2.Company’s Insurance companies agree to waive all rights of subrogation against City of Santa Ana, its City Council, its officers, officials, employees, agents, and volunteers for losses paid under the terms of the Company’s CGL, CL, and WC policies which arise from work performed by Company under this Agreement. DocAccessServiceProposalforCity of Santa Ana, CA Page13 of15 3. For any claims related to this contract, Company’s insurance coverage shall be primary and any insurance maintained by City of Santa Ana, its City Council, its officers, officials, employees, agents, or volunteers shall not contribute with it. 4. A severability of interest provision must apply for all the additional insureds, ensuring that Company’s insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer’s limits of liability. 5. Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non-renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non-renewal due to non-payment of premium. 6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: (Name of Department Staff Responsible for Agreement), Address of Department Responsible for Agreement, M-XX, Santa Ana, CA 92701. The name and location of project must be included in the Description of Operations section of each certificate. Self-Insured Retentions Self-insured retentions must be declared to and approved by Customer. Customer may require Company to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the state of California with a current A.M. Best rating of no less than A-:VII, unless otherwise acceptable to Customer. Claims Made Policies If any of the required policies provide coverage on a claims-made basis: 1. The retroactive date must be shown and must be before the date of the contract. 2. Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of work. 3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective date, Company must purchase “extended reporting” coverage for a minimum of three (3) years after completion of work. Verification of Coverage Company shall furnish Customer with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause). Failure to obtain the required documents prior to the work beginning shall not waive Company’s obligation to provide them. Customer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Subcontractors Company shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. Special Risks or Circumstances DocAccessServiceProposalforCity of Santa Ana, CA Page14 of15 Customer reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Failure to Maintain Insurance Coverage If Company, for any reason, fails to maintain insurance coverage, which is required pursuant to this Agreement, for the entire term of this contract, the same shall be deemed a material breach of Agreement. Customer, at its sole option, may terminate this Agreement at any time and obtain damages from Company resulting from said breach. DocAccessServiceProposalforCity of Santa Ana, CA Page15 of15 Planning and Building Agency www.santa-ana.org/pb Item # 13 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Approval of Historic Property Preservation Agreements AGENDA TITLE Historic Property Preservation Agreements for the Properties Located at 1402 S. Birch Street and 2424 N. Oakmont Avenue RECOMMENDED ACTION Authorize the City Manager or designee to execute the attached Mills Act agreements with the below-referenced property owners for the identified structures (Agreements No. A-2026-XXX and No. A-2026-XXX). Includes determination that the proposed projects are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption/Environmental Review Nos. 2025-114 and 2024-86 will be filed for the project. Table 1: Mills Act Agreements Approved by the Historic Resources Commission (HRC) Historic Property Property OwnerPreservation Address/HouseVote by HRC Agreement No. Nicholas Steven Timmons and Laura Michelle Trudeau, 7:0:0:1 (Commissioner 2025-12 1402 S. Birch Street Husband and Wife as Christy absent) Community Property with Right of Survivorship Lance Uradomo and Tilly Gurman, husband and 2424 N. Oakmont 7:0:0:1 (Commissioner wife as community 2024-13 AvenueChristy absent) property with right of survivorship GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION On January 29, 2026, the Historic Resources Commission (HRC) recommended that the City Council authorize the City Manager to execute the Mills Act agreements listed in Table 1, above, with the identified property owners for historic structures in the City, subject to non-substantive changes approved by the City Manager and City Attorney. This Approval of Historic Property Preservation Agreements April 7, 2026 Page 2 action allows for the approval of Historic Property Preservation Agreements (HPPA/Mills Act Contract) which provide a property tax reduction whereby property owners agree to reinvest the tax savings towards the maintenance of the historic property. Additionally, the agreements prevent inappropriate alterations to the protected historic structures. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed project is exempt from further review. Categorical Exemption, Environmental Review Nos. 2025- 114 and 2024-86 will be filed for this project. FISCAL IMPACT The Historic Property Preservation Agreements will reduce the Property Tax revenue account 01102002-50011 to the City by an estimated $3,078 annually, as noted below, for a period of not less than ten years. HPPA No.AddressEstimateExhibit No. 2025-12 1402 S. Birch Street$1,0161-2 2024-132424 N. Oakmont Avenue$2,0613-4 Total:$3,078 EXHIBITS 1.Mills Act Agreement – 1402 S. Birch Street 2.HRC Staff Report – 1402 S. Birch Street 3.Mills Act Agreement – 2424 N. Oakmont Avenue 4.HRC Staff Report – 2424 N. Oakmont Avenue Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building Agency Approved By: Alvaro Nuñez, City Manager Planning and Building Agency City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Historic Resources CommissionStaff Report January 29, 2026 Topic: HRCA No. 2025-14, HRC No. 2025-11, HPPA No. 2025-12 – The Joy House (1402 S. Birch Street) RECOMMENDED ACTIONS 1. Adopt a resolution approving Historic Resources Commission Application No. 2025- 14 and Historic Register Categorization No. 2025-11; and 2. Recommend that the City Council authorize the City Manager and City Clerk to execute the attached Mills Act agreement with Laura Trudeau and Nicholas Timmons, for the property located at 1402 S. Birch Street, subject to non-substantive changes approved by the City Manager and City Attorney. EXECUTIVE SUMMARY Laura Trudeau and Nicholas Timmons are requesting approval to designate an existing Minimal Traditional-style residence located at 1412 S. Birch Street to the Santa Ana Register of Historical Properties, as well as approval to execute a Mills Act agreement with the City of Santa Ana. The property qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Minimal Traditional-style house. It is worthy of “Contributive” categorization as it has a distinctive architectural style and quality reflective of the Minimal Traditional style, including its gable-on-hip roof, exposed rounded rafters, and two-over-two wood-sash windows, among other features. DISCUSSION Project Location and Site Description The subject property is located on a corner lot with Birch Street to the east and Borchard Avenue to the north, in the Wilshire Square neighborhood in Santa Ana. The site contains a 1,598-square-foot, Minimal Traditional-style residence and attached garage on an approximately 6,100-square-foot residential lot (Exhibits 3 and 4). HRCA No. 2025-12, HRC No. 2025-08, HPPA No. 2025-07– The Joy House (1402 S. Birch Street) January 29, 2026 Page 2 Analysis of the Issues Historical Listing In March 1999, the City Council approved Ordinance No. NS-2363 establishing the Historic Resources Commission and the Santa Ana Register of Historical Properties. The Historic Resources Commission may, by resolution and at a noticed public hearing, designate as a historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in Section 30-2 of the Santa Ana Municipal Code (SAMC). This project entails applying the selection criteria established in Chapter30 of the SAMC (Places of Historical and Architectural Significance) to determine if this structure is eligible for historic designation to the Santa Ana Register of Historical Properties. The first criterion for selection requires that the structures be 50 or more years old. The structure identified meets the selection criteria for inclusion on the Santa Ana Register of Historical Properties pursuant to criteria contained in Section 30-2 of the SAMC, as the structure is 78 years old and is a sound example of period architecture. No known code violations exist on record for this property. The Joy House is architecturally significant as an intact example of a Minimal Traditional- style house in Santa Ana. The original building permit indicates the property was constructed in 1947 as a house consisting of six rooms and a detached garage at a cost of $8,000.00. The original building permit does not identify an architect or contractor, though the property may have been constructed by Coast Construction Company, which is indicated as the original owner. The earliest known occupants are Carroll H. and Donna Aloen (née Miller) Joy, who, city directory listings show, lived at the address by 1949 (Ancestry.com 2011). Prior to the Joy family's acquisition of the subject property, Carroll was a decorated pilot during World War II and, in civilian life, owned a service station, before entering a career as an insurance agent (Santa Ana Register July 8, 1944; Santa Ana Register November 20, 1947; The Register August 7, 1955 ). In 1953, the Joys constructed an addition to the rear (north) of the residence. Donna served as president of the Spurgeon Parent Teacher Association in Santa Ana in 1959 (The Register March 7, 1959). In June 1966, Donna passed away (The Register June 6, 1966). Within three years of Donna's passing, the property was owned by the family of Charles R. Bryan. City building permits show the Bryan family constructed an addition to the detached garage in 1972. The property remained in the possession of the Bryan family until at least as recently as 2016, when city building permit records show Dolly Bryan was the owner. The current owners, Laura Trudeau and Nicholas Timmons, acquired the property in 2024. Located on a corner parcel in the Wilshire Square neighborhood, the Joy House consists of a one-story, single-family residence and detached garage constructed in the Minimal Traditional style. The parcel is bounded on the west by Birch Street and on the north by HRCA No. 2025-12, HRC No. 2025-08, HPPA No. 2025-07– The Joy House (1402 S. Birch Street) January 29, 2026 Page 3 Borchard Avenue. The residence is L-planned, with exterior walls sheathed in horizontal plank siding and stucco and a principally gable–on-hip roof clad in asphalt shingles. The open, moderately wide roof overhangs include exposed rafters with rounded ends. Facing S. Birch Street to the west, the asymmetrical main façade is characterized by its recessed front porch, which includes a north-facing glazed wood front door and paired 2-over-2 wood-sash double-hung windows situated under the main slope of the roof. Most windows throughout the house are of a similar design. The secondary north façade, which fronts W.Borchard Avenue, consists mainly of a rear addition to the residence. Clad entirely in stucco, the exterior on this façade is punctuated by a series of 2-over-2 double-hung wood-sash windows, in addition to a small glass block light. Two windows are situated in a recess near the junction of the addition with the historic portion of the house. The south and west façades face the property’s backyard, where they form a court. The façades facing the backyard feature stucco siding and wood sash windows in 2-over-2 hung and inwardly opening hopper configurations. Entrances are located near the juncture of the west and south facades, where two glazed wood doors face west and south, respectively. In addition, a non-original sliding glass door covers most of the west side of the rear addition. Situated at the far northern end of the parcel, the detached garage complements the historic appearance of the property (Figure 9). It is rectangular in plan, sheathed in stucco, and capped with gable-on-hip rood with exposed rafters and asphalt shingles. The non- original metal roll-up garage door faces a short driveway to the north, accessing Borchard Avenue. The property is landscaped with a front lawn, shrubs, palms, and various flowering plants. Character-defining features of the Minimal Traditional style exhibited by the house include, but are not necessarily limited to, its asymmetrical main facade composition; horizontal plank and stucco siding; gable-on-hip roof form; open eaves with exposed rounded rafters; historic glazed wood front door; recessed front porch; and 2-over-2 wood-sash hung windows. The Joy House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Minimal Traditional- style home in Santa Ana. The recommended categorization is Contributive because it contributes to the overall character and history of its neighborhood and is a good example of period architecture. Mills Act Agreement Ordinance No. NS-2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 2). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The Historic Resources Commission Application and Historic Register Categorization actions proposed for this HRCA No. 2025-12, HRC No. 2025-08, HPPA No. 2025-07– The Joy House (1402 S. Birch Street) January 29, 2026 Page 4 site authorize the listing of the property on the local register. The agreement provides monetary incentives to the property owner in the form of a property tax reduction in exchange for the owner’s voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property’s assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: Long term preservation of the property and visual improvement to the neighborhood A mechanism to provide for property rehabilitation Incentives for potential buyers to purchase historic structures Discouraging inappropriate alterations to the property The property has no identified unauthorized modifications. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement subject to a completion of future improvements as described in an attached Work Plan. Overall, future improvements (Work Plan) proposed by the homeowner and Planning Division staff during the initial ten years of the Mills Act Agreement include the following: 1) assess plank siding for cracking and other damage and replace or repair in-kind with Planning Division staff approval; 2) assess condition of windows and replace in-kind, as necessary and with Planning Division staff approval; 3) trim vegetation on street-facing sides of the property to maintain a clear view of the property from the sidewalk; 4) reroof in-kind, with Planning Division staff approval; assess condition of exposed rafters and repair, as necessary with Planning Division staff approval; 5) assess paint and stucco throughout the residence and repair or replace, as necessary and with Planning Division staff approval; and 6) assess condition of hardscaping, including walkways, steps, porch, and other areas, and repair or replace with Planning Division staff approval. As part of the Mills Act approval process, staff will work with the applicant to ensure that a bronze plaque is installed honoring and recognizing the structure. The plaque will include the historic name, address, year built, and local historic register designation. Lastly, the site will be subject to general maintenance and upkeep requirements including, but not limited to, replacement or restoration of damaged character-defining features, landscaping upkeep, painting, etc. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement to enable the Mills Act. HRCA No. 2025-12, HRC No. 2025-08, HPPA No. 2025-07– The Joy House (1402 S. Birch Street) January 29, 2026 Page 5 Public Notification The subject site is located within the Wilshire Square Neighborhood Association. The president of this Neighborhood Association was notified by mail 10 days prior to this public hearing. In addition, the project site was posted with a notice advertising this public hearing, a notice was published in the Orange County Reporter and mailed notices were sent to all property owners within 500 feet of the project site. At the time of this printing, no correspondence, either written or electronic, has been received from any members of the public. ENVIRONMENTAL IMPACT Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review pursuant to Section 15331 of the CEQA Guidelines (Class 31 – Historical Resource Restoration/Rehabilitation) as these actions are designed to preserve historic resources. Based on this analysis, a Notice of Exemption, Environmental Review No. 2025-114, will be filed for this project. FISCAL IMPACT The Historic Property Preservation Agreement will reduce the Property Tax revenue account 01102002-50011 to the City by an estimated $1,016.40 annually, for a period of not less than ten years. EXHIBITS 1. Resolution 2. Mills Act Agreement – 1402 S. Birch Street 3. 500-Foot Radius Map – 1402 S. Birch Street 4. Copy of Public Notice – 1402 S. Birch Street Submitted By: James Williams, Contract Planner Approved By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building Agency FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 RESOLUTION NO. 2026-XX A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2025-14 TO PLACE THE PROPERTY LOCATED AT 1402 S. BIRCH STREET, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2025-11 PLACING SAID PROPERTY WITHIN THE CONTRIBUTIVE CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the City of Santa Ana hereby finds, determines, and declares as follows: A. On January 29, 2026, the Historic Resources Commission held a duly noticed public hearing for the placement on the Santa Ana Register of Historical Properties (Historic Resources Commission Application No. 2025-14) and categorization (Historic Resources Commission Categorization No. 2025-11) of the Joy House located at 1402 S. Birch Street, Santa Ana. B. The Joy House has distinctive architectural features of the Minimal Traditional style and was built in 1947. C. The Joy House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Minimal Traditional style home in Santa Ana. The house displays characteristics of the Minimal Traditional style through its use ofits asymmetrical main façade, gable-on- hip roof, and two-over-two windows, among other original features. The recommended categorization is “Contributive” because it has a distinctive architectural style and quality reflective of the Minimal Traditional style. Character-defining features of the Joy Houseinclude but may not be limited to: its asymmetrical main facade composition; horizontal plank and stucco siding; gable-on-hip roof form; open eaves with exposed rounded rafters; two glass block windows along north facade; and historic glazed wood front door. D. The legal owners of the propertyare Nicholas Steven Timmons and Laura Michelle Trudeau, Husband and Wife as Community Property with Right of Survivorship. E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. Resolution No. 2026-xx Page 1 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 F. The subject property meets the standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimum standards for placement in the Contributive category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code. H. In addition to meeting the standards for placement in the Contributive category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code, the applicant has agreed, as part of the requested Mills Act agreement Work Plan, to restoration of select elements described therein within the first five years of the Agreement’s term, including: assess plank siding for cracking and other damage and replace or repair in-kind with Planning Division staff approval; assess condition of windows (two glass block windows and 2- over-2 double hung wood windows) and replace in-kind, as necessary and with Planning Division staff approval; reroof in-kind, with Planning Division staff approval; assess condition of exposed rafters and repair as necessary, with Planning Division staff approval; and assess paint and stucco throughout the residence and repair or replace, as necessary and with Planning Division staff approval. Section 2. In accordance with the California Environmental Quality Act (CEQA), the recommended actions are exempt from further review under CEQA Guidelines Section 15331, Class 31, as these actions are designed to preserve historical resources. Categorical Exemption No. ER-2025-114 will be filed for this project. Section 3. The Historic Resources Commission of the City of Santa Ana, after conducting the public hearing, hereby approves: A. Historic Resources Commission Application No. 2025-14 to place the Joy House located at 1402 S. Birch Street, Santa Ana, 92707 on the historical register, as conditioned in Exhibit B, attached hereto and incorporated herein, and B. Historic Register Categorization No. 2025-11 placing the Joy House located at 1402 S. Birch Street, Santa Ana, 92707 within the Contributive category, as conditioned in Exhibit B, attached hereto and incorporated herein. These decisions are based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Staff report and exhibits attached thereto, the report entitled “Historical Property Description,” and the public testimony, all of which are incorporated herein by this reference. Section 4. For the subject property, a report entitled “Historical Property Description” is on file with the Planning Division, and is hereby approved and adopted, and together with the staff report and this Resolution, justify the findings for placement on the City of Santa Ana Register of Historical Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this Resolution in the City of Santa Ana Register of Historical Properties. Resolution No. 2026-xx Page 2 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorder’s Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. th ADOPTED this 29 day of January, 2026. __________________________ Edward Murashie Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:________________________ Brandon Salvatierra Assistant City Attorney AYES:Commissioners: NOES: Commissioners: ABSENT: Commissioners: ABSTENTIONS: Commissioners: Resolution No. 2026-xx Page 3 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Gema Zapien, Historic Resources Commission Secretary, do hereby attest to and certify the attached Resolution No. 2026-XX to be the original resolution adopted by Historic Resources Commission of the City of Santa Ana on January 29, 2026. Date: ________________ ____________________________________ Gema Zapien Commission Secretary City of Santa Ana Resolution No. 2026-xx Page 4 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 EXHIBIT A LEGAL DESCRIPTION APNAddressLegal Description Owner Names 013-171-15 1402 S. Birch Street THE LAND REFERRED TO Nicholas Steven HEREIN BELOW IS SITUATED Timmons and IN THE CITY OF SANTA ANA, Laura Michelle COUNTY OF ORANGE, Trudeau, STATE OF CALIFORNIA AND Husband and IS DESCRIBED AS FOLLOWS: Wife as Community LOT 2 OF TRACT NUMBER Property with 1170, IN THE CITY OF CITY OF Right of SANTA ANA, COUNTY OF Survivorship ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 38, PAGE 36 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Resolution No. 2026-xx Page 5 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 EXHIBIT B Conditions of Approval for Historic Resources Commission Application No. 2025-14 and Historic Resources Commission Categorization No. 2025-11 The Applicant must comply with each conditionlisted below prior to exercising the rights conferred by the Historic Resource Commission’s approval and the City of Santa Ana Register of Historic Properties pursuant to Section 30-6 of the Santa Ana Municipal Code. The Applicant must remain in compliance with all condition(s) listed below: 1. Within 180-days of execution of this resolution, the applicant shall install a bronze plaque as per a template on file with the Planning Division honoring and recognizing the structure at 1402 S. Birch Street, historically known as the Joy House. The plaque shall include the historic name, address, year built, and local historic register designation. The final dimensions, location, text and description on the plaque shall be reviewed and approved by Planning Division staff. 2. The applicant shall regularly maintain all landscaping in the front yard area (pruning and thinning trees and shrubs) so that the historic building and its character defining features (including but not limited to itsasymmetrical main facade composition; horizontal plank and stucco siding; gable-on-hip roof form; open eaves with exposed rounded rafters; historic glazed wood front door) are visible from the public right-of-way. Resolution No. 2026-xx Page 6 of 6 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 _________________________________________________________________________ HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement (“Agreement”) is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as “City”), and Nicholas Steven Timmons and Laura Michelle Trudeau, Husband and Wife as Community Property with Right of Survivorship (hereinafter collectively referred to as “Owner”), owner of real property located at 1402 South Birch Street, Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the “Mills Act”) to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 1402 South Birch Street, Santa Ana, CA, 92707 and more particularly described in Exhibit “A,” attached hereto and incorporated herein by reference, and hereinafter referred to as the “Historic Property.” C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. MILLS ACT AGREEMENT 1402 South Birch Street Santa Ana, CA 92707 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: 1. Effective Date and Terms of Agreement. This Agreement shall be effective and commence on April 8, 2026, and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. c. Within 30 days from receipt of City’s notice of nonrenewal, the Owner may file a written protest of City’s decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character- defining features described in the“Executive Summary” and “Historical Property Description” attached hereto, marked collectively as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. - 2 - MILLS ACT AGREEMENT 1402 South Birch Street Santa Ana, CA 92707 b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior’s Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. c. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character-defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior’s Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner’s compliance with the terms and provisions of this Agreement. As part of the periodic inspection, Owner shall supply information in a format determined acceptable by the representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization information required to determine compliance with the terms of this Agreement. f. Owner shall implement the rehabilitation and restoration work items as discussed in detail in Exhibit D, “Proposed Structure Improvements” or “Work Plan”and the City Council Historic Property Preservation Agreement (HPPA No. 2025-12) staff report dated April 7, 2026. All work items shall be completed within the first ten years of the Mills Act Agreement, with specific items completed within the first five years including assessing horizontal plank siding for cracking and other damage and replacing or repairing in-kind with Planning Division staff approval; assessing condition of windows (two glass block windows and 2-over-2 double hung sash wood windows) and replacing in-kind, as necessary and with Planning Division staff approval; reroofing in-kind, with Planning Division staff approval; assessing condition of exposed rafters and repairing as necessary, with Planning Division staff approval; and assessing paint and stucco throughout the residence and repairing or replacing, as necessary and with Planning Division staff approval. Proof of completion, as requested by the City of Santa Ana, will be required in order to satisfy and maintain the Mills Act Agreement. Staff approval is required before items are amended or removed/replaced from the improvements list. - 3 - MILLS ACT AGREEMENT 1402 South Birch Street Santa Ana, CA 92707 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner have failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 ½) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. c. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City’s regulations governing historic properties are available to City to - 4 - MILLS ACT AGREEMENT 1402 South Birch Street Santa Ana, CA 92707 pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 1402 South Birch Street, Assessor Parcel Number, 013-171-15, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. c. This property is listed in the Santa Ana Register of Historical Properties (Register). In any real property transaction, the owner of this property or the owner’s representative shall provide the buyer of this property with notice that the property is listed on the City’s historic Register. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the account of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: City Clerk - 5 - MILLS ACT AGREEMENT 1402 South Birch Street Santa Ana, CA 92707 Owner: Nicholas Timmons and Laura Trudeau 1402 South Birch Street Santa Ana, CA 92707 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. c. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney’s fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. - 6 - MILLS ACT AGREEMENT 1402 South Birch Street Santa Ana, CA 92707 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature page follows} - 7 - MILLS ACT AGREEMENT 1402 South Birch Street Santa Ana, CA 92707 ATTEST: CITY OF SANTA ANA ________________________ _________________________ JENNIFER L. HALL ALVARO NUÑEZ City Clerk City Manager OWNER Date: ___________________ By:__________________ NCHOLAS S. TIMMONS Date: ___________________ By:__________________ LAURA M. TRUDEAU APPROVED AS TO FORM: RECOMMENDED FOR APPROVAL: SONIA CARVALHO City Attorney By: _____________________ _____________________ BRANDON SALVATIERRA ALI PEZESHKPOUR Assistant City Attorney Executive Director Planning and Building Agency - 8 - MILLS ACT AGREEMENT 1402 South Birch Street Santa Ana, CA 92707 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT 2 OF TRACT NUMBER 1170, IN THE CITY OF CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 38, PAGE 36 OF MISCELLANEOUS MAPS, IN THE OFFICE OFTHE COUNTY RECORDER OF SAID COUNTY. Assessor’s Parcel Number: 013-171-015 - 9 - Exhibit B EXECUTIVE SUMMARY Joy House 1402 South Birch Street Santa Ana, CA 92707 NAME Joy House REF. NO. ADDRESS 1402 South Birch Street CITY Santa Ana ZIP 92707 ORANGE COUNTY YEAR BUILT 1947 LOCAL REGISTER CATEGORY: Contributive N/A HISTORIC DISTRICT NEIGHBORHOOD Wilshire Square CALIFORNIA REGISTER CRITERIA FOR EVALUATION CALIFORNIA REGISTER STATUS CODE C/3 5S3 Location: Not for Publication Unrestricted Prehistoric Historic Both ARCHITECTURAL STYLE: Minimal Traditional During the Great Depression through the immediate postwar years, the Minimal Traditional home rose in popularity as the preferred style for middle-class housing in the United States. This basic house type fulfilled both aesthetic and social needs: in terms of aesthetics, the form represented a stripped-down version of the historic-eclectic styles popular in the 1920s, in particular the Tudor and English Revival styles. In social terms, the Minimal Traditional home satisfied requirements in square footage and plan by the Federal Housing Administration (FHA), which launched a campaign in this period to expand home ownership. The Minimal Traditional home served as the prototype used by the FHA in its efforts to codify and manufacture “a standard, low-cost, minimum house that the majority of American wage earners could afford” (Greg Hise, Magnetic Los Angeles, p. 57). Minimal Traditional homes are typically rectangular in plan and one- story in height, often with a front-gabled wing and prominent attached chimney. In contrast with the English and Tudor Revival styles the one-story version sometimes mimics, the Minimal Traditional home is capped with a low or intermediate pitch roof with a hipped or side gable. Sheathing materials include stucco, brick, or wood, often accompanied by stone veneer accents. Fenestration generally consists of multi-light casement, double-hung, and picture windows with wood frames. The eaves and rakes of the Minimal Traditional home are typically shallow (in a departure from the later Ranch House style, which they often resemble). Although they have little applied ornament, many Minimal Traditional homes often display decorative wood shutters and porch-roof supports. SUMMARY/CONCLUSION: The Joy House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Contemporary Modern-style home in Santa Ana. The recommended categorization is “Contributive” because it is a good example of the style and contributes to the historical and architectural character of its neighborhood. (Santa Ana Municipal Code, Section 30-2.3). EXPLANATION OF CODES: California Register Criteria for Evaluation: (From California Office of Historic Preservation, Technical Assistance Series # 7, “How to Nominate Resources to the California Register of Historical Resources,” September 4, 2001.) 3: It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. 5S3: Appears to be individually eligible for local listing or designation through survey evaluation. Exhibit B State of California The Resources Agency Primary #______________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI #__________________________________________________ PRIMARY RECORD Trinomial______________________________________________ NRHP Status Code____5S3_______________________________ Other Listings_____________________________________________________________________ Review Code________ Reviewer________________________ Date_______________ Page _1_ of _6_ Resource name(s) or number (assigned by recorder) Joy House P1. Other Identifier: *P2. Location: Not for Publication Unrestricted *a. County Orange County *b. USGS 7.5’ Quad: Tustin, CA 7.5-Minute Series Date: 2022 *c. Address 1402 S. Birch Street City: Santa Ana Zip: 92707 *e. Other Locational Data: Assessor’s Parcel Number 013-171-15 *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries) Located on a corner parcel in the Wilshire Square neighborhood, the Joy House consists of a one-story, single-family residence and detached garage constructed in the Minimal Traditional style (Figure 1). The parcel is bounded on the west by Birch Street and on the north by West Borchard Avenue. The residence is L-planned, with exterior walls sheathed in horizontal plank siding and stucco and a principally gable–on-hip roof clad in asphalt shingles. The open, moderately wide roof overhangs include exposed rafters with rounded ends (Figure 2). Facing South Birch Street to the west, the asymmetrical main façade is characterized by its recessed front porch (Figure 3), which includes a north-facing glazed wood front door (Figure 4) and paired 2-over-2 wood-sash double-hung windows situated under the main slope of the roof. Most windows throughout the house are of a similar design. (See Continuation Sheet 3 of 6.) *P3b. Resource Attributes: (list attributes and codes) HP2. Single-Family Residence *P4. Resources Present: Building Structure Object Site District Element of District Other P5a. Photo P5b. Photo: (view and date) (Figure 1) Primary (east) facade, view southwest, October 2025 *P6. Date Constructed/Age and Sources: historic 1947, Assessor data *P7. Owner and Address: Laura Trudeau and Nicholas Timmons 1402 S. Birch Street Santa Ana, CA 92707 *P8. Recorded by: James Williams City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: January 29, 2026 *P10. Survey Type: Intensive Survey Update (Cite survey *P11. Report Citation: report and other sources, or enter “none”) None *Attachments: None Location Map Sketch Map Continuation Sheet Building, Structure, and Object Record Archaeological Record District Record Linear Feature Record Milling Station Record Rock Art Record Artifact Record Photograph Record Other (list) DPR 523A (1/95) *Required information State of California The Resources Agency Primary #__________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI#______________________________________________ BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 6 *NRHP Status Code_5S3_________________________ *Resource Name or #: Joy House B1. Historic Name: Joy House B2. Common Name: Same B3. Original Use: Single-family residence B4. Present Use: Single-family residence *B5. Architectural Style: Minimal Traditional *B6. Construction History: (Construction date, alterations, and date of alterations): December 11, 1947: property constructed as a 6 room residence and garage for Coast Construction Company, valued at $8,000 August 14, 1953: Addition of a room and ½ bath, for C. Joy by Adams and Helm, valued at $3,000. February 2, 1972: Addition to garage by owner, Charles R. Bryan, valued at $100. *B7. Moved? No Yes Unknown Date:__________ Original location:_______ _______ *B8. Related Features: N/A B9a. Architect: Unknown b. Builder: likely Coast Construction Company *B10. Significance: Theme Residential Architecture Area Santa Ana Period of Significance: 1947 Property Type: Single-family residence Applicable Criteria: C/3 (Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Joy House is architecturally significant as an intact example of a Minimal Traditional-style house in Santa Ana. The original building permit indicates the property was constructed in 1947 as a house consisting of six rooms and a detached garage at a cost of $8,000.00. The original building permit does not identify an architect or contractor, though the property may have been constructed by Coast Construction Company, which is indicated as the original owner. The earliest known occupants are Carroll H. and Donna Aloen (nee Miller) Joy, who, city directory listings show, lived at the address by 1949 (Ancestry.com 2011). Prior to the Joy family's acquisition of the subject property, Carroll was a decorated pilot during World War II and, in civilian life, owned a service station, before entering a career as an insurance agent (Santa Ana Register July 8, 1944; Santa Ana Register November 20, 1947; The Register August 7, 1955 ). In 1953, the Joys constructed an addition to the rear (north) of the residence. Donna served as president of the Spurgeon Parent Teacher Association in Santa Ana in 1959 (The Register March 7, 1959). In June 1966, Donna passed away (The Register June 6, 1966). Within three years of Donna's passing, the property was owned by the family of Charles R Bryan. City building permits show the Bryan family constructed an addition to the detached garage in 1972. The property remained in the possession of the Bryan family until at least as recently as 2016, when city building permit records show Dolly Bryan was the owner. The current owners, Laura Trudeau and Nicholas Timmons acquired the property in 2024. (See Continuation Sheet 3). B11. Additional Resource Attributes: (List attributes and codes) *B12. References: (See Continuation Sheet 4 of 6.) B13. Remarks: None *B14. Evaluator: James Williams, City of Santa Ana. Sketch Map *Date of Evaluation: January 29, 2026 AVENUE (This space reserved for official comments.) Joy House 1402 S. Birch Street State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 3_ of 6_ Resource Name: «Name_of_Structure» *Recorded by James Williams *Date January 29, 2026 Continuation Update DPR 523B (1/95) *Required information *P3a. Description (continued): The secondary north façade, which fronts West Borchard Avenue, consists mainly of a rear addition to the residence (Figure 5). Clad entirely in stucco, the exterior on this façade is punctuated by a series of 2-over-2 double-hung wood-sash windows, in addition to a small glass block light (Figure 6). Two windows are situated in a recess near the junction of the addition with the historic portion of the house (Figure 7). The south and west façades face the property’s backyard, where they form a court. The façades facing the backyard feature stucco siding and wood sash windows in 2-over-2 hung and inwardly opening hopper configurations. Entrances are located near the juncture of the west and south facades, where two glazed wood doors face west and south, respectively (Figure 8). In addition, a non-original sliding glass door covers most of the west side of the rear addition (Figure 9). Situated at the far northern end of the parcel, the detached garage complements the historic appearance of the property (Figure 10). It is rectangular in plan, sheathed in stucco, and capped with gable-on-hip rood with exposed rafters and asphalt shingles. The non-original metal roll-up garage door faces a short driveway to the north, accessing W. Borchard Avenue. The property is landscaped with a front lawn, shrubs, palms, and various flowering plants. *B10. Significance (continued): The Joy House is located in Wilshire Square, a neighborhood located south of the city center and bounded by West McFadden Avenue on the north, West Edinger Avenue on the south, South Main Street on the east, and South Flower Street on the west. This area remained agricultural in use into the early twentieth century, the landscape dotted with walnut and orange groves. The 1912 plat map of Santa Ana showed South Main Street and Fairview Avenue (now McFadden Avenue) as the only streets in the area, with the majority of the property held by a few landowners: N. Palmer, H. K. Hanson, O’Brien, and Lewis. Development of Wilshire Square began circa 1923, when newspaper advertisements for newly subdivided lots costing between $635.00 and $1,875.00 boasted “five foot sidewalks, curbs, electricity, gas, sewer, city water and ornamental trees.” By 1923, all of Flower, Garnsey, Van Ness, Ross, and Borchard and portions of the remaining streets had been laid out. Lathrop Junior High School, designed by architect Frederick Eley in 1921 (demolished circa 1970), was constructed on the southwest corner of Fairview and Main and became an anchor of the neighborhood. In 1925, over 65 homes had been built in Wilshire Square, according to a count of addresses listed in the city directories. A 1927 map indicated that the area was zoned for single-family residences, except the east side of Sycamore, which was set aside for “courts and apartments,” apparently as a buffer for the “neighborhood business” zone on South Main Street. By 1930, maps of the City showed that, with the exception of a gap between Borchard and Edinger Avenues on Birch, Broadway, and Sycamore, all the streets in Wilshire Square were in place. Mapped by the Sanborn Company between 1931 and 1940, the neighborhood was substantially developed prior to the beginning of World War II. Built in three phases, Wilshire Square primarily showcases the revival architectural styles popular during the first phase, circa 1923 to 1931, when 326 homes were built: variations of the Tudor Revival, the Spanish Colonial Revival, and the Colonial Revival. A handful of Craftsman bungalows completed the picture. A second phase, from 1935 to 1942, marked the recovery from the Great Depression and the war preparation years, and resulted in another 171 homes. The post World War II building boom added 91 homes, many in the newly popular California Ranch style. Enhanced by the canopies of mature trees that line many of the streets, Wilshire Square developed as a middle class neighborhood of white and blue collar workers. Homes were both owner and speculator built, and, regardless of style, are unified by their one-story height, scale, common setbacks, and the placement of detached garages in the rear of each property. Retaining these qualities today (2003), the neighborhood was recognized for excellence in urban design by the Orange County Chapter of the American Institute of Architects in 1997. The Joy House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Minimal Traditional-style home in Santa Ana. Located in Wilshire Square, the house was constructed in 1947. The recommended categorization is “Contributive” because it contributes to the overall character and history of its neighborhood and is a good example of period architecture (Santa Ana Municipal Code, Section 30-2.3). Character-defining features of the house’s original 1947 Minimal Traditional-style construction include, but are not necessarily limited to, its asymmetrical main (south) facade composition; horizontal plank and stucco siding; gable-on-hip roof form; open eaves with exposed rounded rafters; historic glazed wood front door; recessed front porch; two glass block windows along north facade; and 2-over-2 wood-sash hung windows. DPR 523L State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 4_ of 6_ Resource Name: «Name_of_Structure» *Recorded by James Williams *Date January 29, 2026 Continuation Update *B12. References (continued): Advertisement for Allstate Insurance Company. The Register. August 7, 1955. https://www.newspapers.com/image/995296705/?match=1&terms=%22carroll%20joy%22. Ancestry.com. U.S., City Directories, 1822-1995 \[database on-line\]. Lehi, UT, USA: Ancestry.com Operations, Inc., 2011. Col. Joy on Two Weeks Duty with Air Reserve, Santa Ana Register, November 20, 1947. https://www.newspapers.com/image/998137844/?match=1&terms=%22carroll%20joy%22. “Donna Aloen Joy,” The Register, June 6, 1966. https://www.newspapers.com/image/996955189/?terms=%221402%20s%20birch%22. “Fighter Pilot Wins Air Medal,” Santa Ana Register, July 8, 1944, p. 2. https://www.newspapers.com/image/1001577973/?match=1&terms=%22carroll%20joy%22. Marsh, Diann. Santa Ana: An Illustrated History. Encinitas, Heritage Publishing, 1994. “Mrs. Joy Heads Spurgeon PTA,” The Register. March 7, 1959. https://www.newspapers.com/image/996559394/?match=1&terms=%22carroll%20joy%22. DPR 523L State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 5_ of 6_ Resource Name: «Name_of_Structure» *Recorded by James Williams *Date January 29, 2026 Continuation Update Additional Figures: Figure 3. Located on the primary (east) façade, the recessed front porch features 2-over-2 hung wood-sash windows and a glazed front door. Facing northwest. Figure 2. The roof overhang on the primary (south) façade is generally representative of the same element throughout the property. Figure 5. North and west façades of the 1953 addition to the residence. Facing southwest. Figure 4. Front patio as viewed from the porch. Facing north. DPR 523L State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 6_ of 6_ Resource Name: «Name_of_Structure» *Recorded by James Williams *Date January 29, 2026 Continuation Update Figure 6. Glass block window on the north façade. Figure 7. On the north façade, 2-over-2 hung wood-sash windows open from a recess at the junction of the Facing east. house’s historic plan and the 1953 addition windows. Facing southeast. Figure 8. At the junction of the west and south façades, Figure 9. A non-original sliding glass door opens from the rear porch exhibits two glazed wood doors and two the interior-facing west side of the 1953 addition. Facing 2-over-2 hung wood-sash windows. Facing northeast. northeast. Figure 10. Located at the property’s northeast corner, the detached garage many elements in common with the residence, including a hip-on-gable roof, exposed rafters, and stucco siding. Facing southwest. DPR 523L MILLS ACT AGREEMENT 1402 N. Birch Street Santa Ana, CA 92707 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior’s Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, and such design is compatible with - 1 - MILLS ACT AGREEMENT 1402 N. Birch Street Santa Ana, CA 92707 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. - 2 - Exhibit D: Proposed Structure Improvements (“Work Plan”) 1402 S. Birch Street Item Year Improvement 1 2026Assess horizontal plank siding for cracking and other damage; replace or repair in- kind with staff approval. 2 2026Assess condition of windows (two glass block windows and 2-over-2 double hung sash windows); replace in-kind, as necessary and with staff approval. 3 2026Trim vegetation on street-facing sides of the property to maintain a clear view of the property from the sidewalk. 4 2029Reroof in-kind, with staff approval; assess condition of exposed rafters and repair as necessary, with staff approval. 5 2031Assess paint and stucco throughout the residence and repair or replace, as necessary and with staff approval. 6 2032Assess condition of hardscaping, including walkways, steps, porch, and other areas, and repair or replace with staff approval. SITE HRCA NO. 2025-14, HRC NO. 2025-11, HPPA NO. 2025-12 JOY HOUSE 1402 N. BIRCH STREET P L A N N I N G AND B U I L D I N G A G E N C Y EXHIBIT 3 P!S!B!O!H!F!!!D!P!V!O!U!Z!!!S!F!Q!P!S!U!F!S TJODF!2:32 Mailing Address : 600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701 Telephone (714) 543-2027 / Fax (714) 542-6841 Visit us @ www.LegalAdstore.com GEMA ZAPIEN CITY OF SANTA ANA/PLANNING & BUILDING AGENCY 20 CIVIC CENTER PLAZA 2ND FLR OR# SANTA ANA, CA 92702 4002170 NOTICEOFPUBLICHEARINGelseraisedatthepublichearing BEFORETHESANTAANAHISTORICdescribedinthisnotice,orinwritten RESOURCESCOMMISSIONcorrespondencedeliveredtotheHistoric TheCityofSantaAnaencouragestheResourcesCommissionorCityCouncilof publictoparticipateinthedecision-theCityofSantaAnaat,orpriorto,the makingprocess.Weencourageyoutopublichearing. contactuspriortothePublicHearingifSitienepreguntasenespañol,favorde youhaveanyquestions.llamaraGemaZapienal(714)667- DPQZ!PG!OPUJDF HistoricResourcesCommission2732. Action:TheHistoricResourcesNucnliênlcbngtingVit, CommissionwillholdaPublicHearingtoxininthoichoKristieHa(714) receivepublictestimony,andwilltake667-2206. actionontheitemdescribedbelow.Their1/16/26 decisionisfinalunlessappealedtotheOR-4002170# CityCouncilwithin10daysofthedecision Notice Type: GPN GOVT PUBLIC NOTICE byanyinterestedpartyorgroup. ProjectLocation:1402SouthBirch Ad Description StreetlocatedwithintheSingle-Family Residence(R1)zoningdistrict. 1402 S. Birch St. ProjectApplicant:LauraTrudeauand NicholasTimmons(PropertyOwner& Applicant) ProjectDescription:Requestfor To the right is a copy of the notice you sent to us for publication in the approvalofHistoricResources CommissionApplication(HRCA)No. ORANGE COUNTY REPORTER. Thank you for using our newspaper. Please 2025-14,HistoricRegisterCategorization (HRC)No.2025-11,andHistoricProperty read this notice carefully and call us with any corrections. The Proof of PreservationApplication(HPPA)No. Publication will be filed with the County Clerk, if required, and mailed to you 2025-12toallowtheplacementand categorizationofthesubjectsiteinthe after the last date below. Publication date(s) for this notice is (are): SantaAnaRegisterofHistorical Propertiesas“Contributive”andto 01/16/2026 executeaHistoricPropertyPreservation AgreementwiththeCityofSantaAna. EnvironmentalImpact:Pursuanttothe CaliforniaEnvironmentalQualityAct (CEQA)andtheCEQAGuidelines,the projectisexemptfromfurtherreview underSection15331(Class31),asthese actionsaredesignedtopreservehistoric The charge(s) for this order is as follows. An invoice will be sent after the last resources.ACategoricalExemption,ER No.2025-114willbefiledforthisproject. date of publication. If you prepaid this order in full, you will not receive an MeetingDetails:Thismatterwillbe invoice. heardonThursday,January29,at4:30 p.m.intheCityCouncilChamber,22 CivicCenterPlaza,SantaAna,CA92701. Publication$146.15 Membersofthepublicmayattendthis meetingin-personorjoinviaZoom.For www.capublicnotices.com$20.00 themostuptodateinformationonhowto participatevirtuallyinthismeeting,please visitwww.santa-ana.org/pb/meeting- Total$166.15 participation. WrittenComments:Ifyouareunableto participateinthemeeting,youmaysend writtencommentsbye-mailto PBAeComments@santa-ana.org (referencethetopicinthesubjectline)or Daily Journal Corporation mailtoGemaZapien,Recording Secretary,CityofSantaAna,20Civic Serving your legal advertising needs throughout California. CenterPlaza–M20,SantaAna,CA 92701.Efbemjofuptvcnjuxsjuufo ORANGE COUNTY REPORTER, SANTA ANA(714) 543-2027 dpnnfoutjt4;41q/n/pouifebzpg uifnffujoh/Commentsreceivedafter (951) 784-0111 BUSINESS JOURNAL, RIVERSIDE thedeadlinemaynotbedistributedtothe Commissionbutwillbemadepartofthe (213) 229-5300 DAILY COMMERCE, LOS ANGELES record. WhereToGetMoreInformation: (213) 229-5300 LOS ANGELES DAILY JOURNAL, LOS ANGELES Additionaldetailsregardingtheproposed SAN FRANCISCO DAILY JOURNAL, SAN FRANCISCO(800) 640-4829 action(s),includingthefulltextofthe discretionaryitem,maybefoundonthe (408) 287-4866 SAN JOSE POST-RECORD, SAN JOSE Citywebsite72hourspriortothepublic hearingat:https://santa- (916) 444-2355 THE DAILY RECORDER, SACRAMENTO ana.primegov.com/public/portal. WhoToContactForQuestions:Should THE DAILY TRANSCRIPT, SAN DIEGO(619) 232-3486 youhaveanyquestions,pleasecontact THE INTER-CITY EXPRESS, OAKLAND(510) 272-4747 caseplannerJamesWilliamswiththe PlanningandBuildingAgencybyemailat JWilliams@santa-ana.orgorbyphoneat 714-647-5899,orPedroGomezbyemail atPGomez@santa-ana.orgorbyphone at714-667-2790. Note:Ifyouchallengethedecisiononthe abovematter,youmaybelimitedto raisingonlythoseissuesyouorsomeone !A000007289941! CITY OF SANTA ANA Planning and Building Agency -/pba NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA HISTORIC RESOURCES COMMISSION Historic Resources Commission Action: Project Location: - Project Applicant: Project Description: -- - Environmental Impact: - Meeting Details:Thursday, January 29, at 4:30 p.m. Members of the public may attend this meeting in-person or join via Zoom. -- Written Comments: -ta- Zapien– Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Where To Get More Information: at: - Who To Contact For Questions: - --- -- Note:I Si tiene preguntas en español, favor de llamar a Gema Zapien al (714) 667-2732. Nu cn liên lc bng ting Vin thoi cho Kristie Ha (714) 667-2206. 500’ RADIUS NOTIFICATION MAP Planning and Building Agency City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Historic Resources CommissionStaff Report January 29, 2026 Topic: HRCA No. 2024-11, HRC No. 2024-09, HPPA No. 2024-13 – Halsell House (2424 N. Oakmont Avenue) RECOMMENDED ACTIONS 1. Adopt a resolution approving Historic Resources Commission Application No. 2024-11 and Historic Register Categorization No. 2024-09; and 2. Recommend that the City Council authorize the City Manager and City Clerk to execute the attached Mills Act agreement with Lance Uradomo and Tilly Gurman, for the property located at 2424 North Oakmont Avenue, subject to non-substantive changes approved by the City Manager and City Attorney. EXECUTIVE SUMMARY Lance Uradomo and Tilly Gurman (property owners and applicants) are requesting approval to designate an existing Colonial Revival-style residence located at 2424 N. Oakmont Avenue to the Santa Ana Register of Historical Properties, as well as approval to execute a Mills Act agreement with the City of Santa Ana. The property qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of Colonial Revival-style house and under Criterion 4, due to its associations with real estate developer Oliver L. Halsell, who was notable for playing a central role in the establishment of Fairhaven Memorial Park. The property is worthy of “Key” categorization because it has a distinctive architectural style and quality as a Colonial Revival-style residence and is associated with a significant person in Santa Ana’s history. The property’s character-defining features relate to the original construction of the residence and include, but are not necessarily limited to, itstwo-story massing, hipped roof, horizontal wood-plank and stucco siding, existing original windows, molded Classically inspired details at the front entrance and elsewhere on the primary (east) elevation. HRCA No. 2024-11, HRC No. 2024-09, HPPA No. 2024-13 – Halsell House (2424 N. Oakmont Avenue) January 29, 2026 Page 2 DISCUSSION Project Location and Site Description The subject property is located on the west side of the 2400 block of N. Oakmont Avenue in the ParkSantiago neighborhood in Santa Ana. The site contains a 2,600-square-foot residence, in addition to a detached garage and detached shop building, on an 18,700- square-foot residential lot (Exhibit 3). Analysis of the Issues Historical Listing In March 1999, the City Council approved Ordinance No. NS-2363 establishing the Historic Resources Commission and the Santa Ana Register of Historical Properties. The Historic Resources Commission may, by resolution and at a noticed public hearing, designate as a historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in Section 30-2 of the Santa Ana Municipal Code (SAMC). This project entails applying the selection criteria established in Chapter 30 of the Santa Ana Municipal Code (Places of Historical and Architectural Significance) to determine if this structure is eligible for historic designation to the Santa Ana Register of Historical Properties. The first criterion for selection requires that the structures be 50 or more years old. The structure identified meets the selection criteria for inclusion on the Santa Ana Register of Historical Properties pursuant to criteria contained in Section 30-2 of the Santa Ana Municipal Code, as the structureis 88 years old, is a sound example of period architecture, and is associated with a significant individual in Santa Ana history. No known code violations exist on record for this property. The Halsell House is architecturally significant as an intact example of a Colonial Revival- style house in Santa Ana. The original building permit is dated May 25, 1937, and indicates the property was developed as a residence and garage for owner Oliver L. Halsell, at a value of $7,000. The original architect and contractor are unknown. Halsell played a central role in the development of Santa Ana's Fairhaven Memorial Park, which at the time of its opening in 1911, was notable locally for its park-like planning. In the 1920s and 1930s, Halsell served an officer of the Santora Company, a Santa Ana- based land development firm responsible for constructing numerous commercial properties and establishing many residential subdivisions in Santa Ana and Orange County. Among his duties with Santora, Halsell served as "tract manager" of the Oakmont Park tract, in which the Halsell House is located. Originally platted for residential development in 1923, the tract was touted at the time of its initial development as one of HRCA No. 2024-11, HRC No. 2024-09, HPPA No. 2024-13 – Halsell House (2424 N. Oakmont Avenue) January 29, 2026 Page 3 a few areas of “high class residence construction” in the city (Santa Ana Daily Register November 8, 1923). Halsell remained at the subject property until his death in 1954. Upon his passing, Halsell's estate was transferred to the Halsell Foundation, which he established “for the cultural and religious benefit of the people of Orange County” (The Register October 26, 1954). The Halsell Foundation remains in operation to this day. City directories and newspaper articles show that by 1960, F.H. Schroeder lived at this address, followed by David Schroeder. Gordon and Maureen Bricken acquired and moved into the property by 1973, living there into the 21st century. Gordon had a two- decade career in local politics, serving on the City's Planning Commission from 1964 to 1974, on the City Council in the 1970s and 1980s, and as mayor from 1981 to 1983. During his tenure as mayor, his leadership was linked to such projects as the Orange County World Trade Center, Santa Ana Train Station, and more generally, the "revitalization” of the Civic Center area (Los Angeles Times June 28, 2013). City planning records show the property's current owners and residents Tilly Gurman Lance and Uradomo took ownership of the property in 2023. The Halsell House is a highly intact example of a one-to-two-story, Colonial Revival-style, single-family residence with two detached ancillary buildings. The residence is characterized by a rough L-plan, hipped roof with asphalt shingles and slight eaves, and principally stucco exterior cladding, augmented with wood lap siding on the second story of the primary (east) façade. Architectural detailing is concentrated on the primary façade, as typified by the recessed main entrance. At that location, a Classically inspired molded surround features fluted pilasters appearing to support a broken pediment with prominent dentils and a finial. Within the recess the walls are embellished with a simple rectangular molding, while operable sidelights flank the wood-panel front door and a wrought iron lamp is suspended from the ceiling. Other details include Classically inspired molding on the bay window to the left of the entrance, a small balconet on the wood-clad second story, and a fluted belt course. Windows on the primary façade are varied; in addition to the aforementioned bay window, the main exterior includes a multi-light porthole window, segmental arch multi-light window with ornamental shutters, and multi-light double-hung wood sash and casement windows. The rear and side elevations are comparatively restrained in appearance. These areas are characterized by stucco cladding and multi-light double-hung wood-sash windows. At the rear court, a trio of non-original glazed double doors opens from the west façade of the single-story mass. The adjacent patio is enclosed with a four-foot-high stuccoed wall with wood-plank gates at three locations. There are two buildings at the rear of the property, the original detached garage and a shop building constructed circa 1991. The detached garage was constructed in a style similar to the residence (Figure 8). It has a rectangular plan, hipped roof with asphalt shingles and slight eaves, and stucco siding. A non-original metal roll-up garage door is located on the main (east) façade, opening toward a concrete-paved driveway leading to HRCA No. 2024-11, HRC No. 2024-09, HPPA No. 2024-13 – Halsell House (2424 N. Oakmont Avenue) January 29, 2026 Page 4 Oakmont Avenue. There are three additional entrances, which feature two glazed wood- panel doors and one glazed solid wood door. A double-hung wood-sash window is located on the west façade. The shop building has a rectangular plan, flat roof, and stucco siding (Figure 9). It is accessed via a metal roll-up garage door (south façade) and a glazed wood standard door (east elevation). Two horizontally sliding aluminum-sash windows are located on the east elevation. A flat-roof shelter extends from the shop’s east elevation, covering nearly all the concrete-paved area between the shop building and detached garage.The front yard is landscaped with a broad lawn and various shrubs and mature trees, while the back-yard features lawns, ornamental plants, and a citrus tree. The Halsell House qualifies for listing in the Santa Ana Register of Historical Properties under Criteria 1 and 4. Under Criterion 1, the property is eligible as an intact example of a Colonial Revival-style house in Santa Ana. Located in Park Santiago, the house cost $7,000 to build in 1937 and retains most of its original features. The recommended categorization is “Key” because it has a distinctive architectural style and quality as a Colonial Revival-style residence (SAMC Section 30-2.2.2). The Halsell House also qualifies for listing under Criterion 4, due to its associations with its original owner, Oliver L. Halsell. Halsell is credited as a central figure in the 1911 founding of Fairhaven Memorial Park, whose park-like landscape design reflected a new and influential approach in the development ofcemeteries in the United States in the early twentieth century. The property remains in use for burials, its longevity a testament to Halsell’s forward-looking mindset. Although Halsell enjoyed a highly successful career in real estate development, no information uncovered in research for this evaluation found that his contributions within the Santora Company stand out as individually significant or outweigh those of other officers of the company; as such his accomplishments with the Santora Company do contribute to the property’s significance under Criterion 4. The recommended categorization for the property under this criterion is also “Key” because the property is associated with a significant person in the city (SAMC Section 30-2.2.2). The character-defining features of the Halsell House are those of the original construction of the residence and which convey the property’s Colonial Revival-style design. They include, but may not be limited to: L-plan; one-to-two-story massing; asymmetrical primary (west) façade; moderately-pitched hipped roof; original wood-sash windows of multiple configurations (double-hung, casement, fixed, and porthole); stucco and wood- plank wall cladding; entrance featuring Classically inspired molded surround featuring fluted pilasters, broken pediment with prominent dentils, and finial; wood-panel front door with operable sidelights; and wrought iron porch lamp, Classically inspired molding on the bay windows and other primary-elevation locations; second-story balconet; and a fluted belt course; deep setback with a large front lawn. HRCA No. 2024-11, HRC No. 2024-09, HPPA No. 2024-13 – Halsell House (2424 N. Oakmont Avenue) January 29, 2026 Page 5 Mills Act Agreement Ordinance No. NS-2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 2). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The Historic Resources Commission Application and Historic Register Categorization actions proposed for this site authorize the listing of the property on the local register. The agreement provides monetary incentives to the property owner in the form of a property tax reduction in exchange for the owner’s voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property’s assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: Long term preservation of the property and visual improvement to the neighborhood A mechanism to provide for property rehabilitation Incentives for potential buyers to purchase historic structures Discouraging inappropriate alterations to the property The property has no identified unauthorized modifications. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement subject to a completion of future improvements as described in an attached Work Plan. Overall, future improvements (Work Plan) proposed by the homeowner during the initial ten years of the Mills Act Agreement include the following: 1) trim and maintain landscaping as necessary to maintain a view of the primary (east) façade from the public right-of-way, including the large trees adjacent to the east elevation; 2) repair or replace damaged rain gutter on the east façade of the detached garage; 3) replace non-original metal roll-up garage door with a garage door of stylistically appropriate material, subject to Planning Division staff approval; 4) assess condition of windows and window trim throughout the property and repair or replace in-kind, as necessary with Planning Division staff approval; 5) assess condition of wall cladding throughout the property and repair or replace in-kind as necessary with Planning Division staff approval; and 6) assess condition of roofs of residence and ancillary buildings and re-roof in-kind as necessary with Planning Division staff approval. Staff will ensure that the proposed work will be done sensitively and will maintain the property’s character-defining features as part of the Mills Act Agreement for this property. As part of the Mills Act approval process, staff will work with the applicant to ensure that a bronze plaque is installed honoring and recognizing the structure. The plaque will include the historic name, address, year built, and local historic register designation. HRCA No. 2024-11, HRC No. 2024-09, HPPA No. 2024-13 – Halsell House (2424 N. Oakmont Avenue) January 29, 2026 Page 6 Lastly, the site will be subject to general maintenance and upkeep requirements including, but not limited to, replacement or restoration of damaged character-defining features, landscaping upkeep, painting, etc. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement to enable the Mills Act. Public Notification The subject site is located within the Park Santiago Neighborhood Association. The president of this Neighborhood Association was notified by mail 10 days prior to this public hearing. In addition, the project site was posted with a notice advertising this public hearing, a notice was published in the Orange County Reporter and mailed notices were sent to all property owners within 500 feet of the project site. At the time of this printing, no correspondence, either written or electronic, has been received from any members of the public. ENVIRONMENTAL IMPACT Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review pursuant to Section 15331 of the CEQA Guidelines (Class 31 – Historical Resource Restoration/Rehabilitation) as these actions are designed to preserve historic resources. Based on this analysis, a Notice of Exemption, Environmental Review No. 2024-86 will be filed for this project. FISCAL IMPACT The Historic Property Preservation Agreement will reduce the Property Tax revenue account 01102002-50011 to the City by an estimated $2,061.68 annually, for a period of not less than ten years. EXHIBITS 1. Resolution 2. Mills Act Agreement 3. 500-Foot Radius Map 4. Copy of Public Notice Submitted By: James Williams, Contract Planner Approved By: Ali Pezeshkpour, Executive Director of Planning and Building Agency FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 RESOLUTION NO. 2026-XX A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2024-11 TO PLACE THE PROPERTY LOCATED AT 2424 N. OAKMONT AVENUE, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2024-9 PLACING SAID PROPERTY WITHIN THE LANDMARK CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the City of Santa Ana hereby finds, determines, and declares as follows: A. On January 29, 2026, the Historic Resources Commission held a duly noticed public hearing for the placement on the Santa Ana Register of Historical Properties (Historic Resources Commission Application No. 2024-11) and categorization (Historic Resources Commission Categorization No. 2024-9) of the Halsell-Bricken House located at 2424 N. Oakmont Avenue, Santa Ana. B. The Halsell-Bricken House is a good example of the Colonial Revival style and was built in 1937. C. The Halsell-Bricken House is associated with its first owner Oliver L. Halsell, a real estate developer who was significant in the history of the city as a central figure in the founding of Fairhaven Memorial Park. D. The Halsell-Bricken House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of American Colonial-style home in Santa Ana and under Criterion 4, due to its associations with Oliver L. Halsell. The house displays characteristics of the American Colonial Revival style through its use of hipped roof, stucco and wood-plank siding, molded Classically inspired details, recessed entry, and varied windows including bay, double-hung, casement, porthole configurations, and Hollywood driveway, among other original features. The recommended categorization is “Landmark” because it has a distinctive architectural style and quality as a Colonial Revival-style residence and is associated with a significant person in the city’s history, real estate developer Oliver L. Halsell (Santa Ana Municipal Code, Section 30-2.2). Character-defining features of the Halsell-Bricken House are those of its original construction and which convey its Colonial Revival-style design. They include, but may not be limited to: L-plan; one-to-two-story massing; asymmetrical primary (west) façade; moderately-pitched hipped roof; original wood-sash windows of multiple configurations (double-hung, Resolution No. 2026-XX Page 1 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 casement, fixed, and porthole); stucco and wood-plank wall cladding; entrance featuring Classically inspired molded surround featuring fluted pilasters, broken pediment with prominent dentils, and finial; wood-panel front door with operable sidelights; and wrought iron porch lamp, Classically inspired molding on the bay windows; second-story balconet; a fluted belt course; deep setback with a large front lawn; and Hollywood driveway. E. The legal owners of the property are Lance Uradomo and Tilly Gurman, husband and wife as community property with right of survivorship. F. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. G. The subject property meets the standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. H. The subject property meets the minimum standards for placement in the Landmark category pursuant to Section 30-2.2(1) of the Santa Ana Municipal Code. I. In addition to meeting the standards for placement in the Landmark category pursuant to Section 30-2.2(1) of the Santa Ana Municipal Code, the applicant has agreed, as part of the requested Mills Act Agreement Work Plan, to restoration of select elements described therein within the first five years of the Agreement’s term, trimming landscaping at the front of the property to improve visibility of the primary (east) façade and repainting as a matter of general maintenance. Section 2. In accordance with the California Environmental Quality Act (CEQA), the recommended actions are exempt from further review under CEQA Guidelines Section 15331, Class 31, as these actions are designed to preserve historical resources. Categorical Exemption No. ER-2024-86will be filed for this project. Section 3. The Historic Resources Commission of the City of Santa Ana, after conducting the public hearing, hereby approves: A. Historic Resources Commission Application No. 2024-011 to place the Halsell-Bricken House located at 2424 N. Oakmont Avenue, Santa Ana, 92706 on the historical register, and B. Historic Register Categorization No. 2024-09 placing the Halsell-Bricken House, located at 2424 N. Oakmont Avenue, Santa Ana, 92706, within the Landmark category, as conditioned in Exhibit B, attached hereto and incorporated herein. These decisions are based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Staff report and exhibits attached thereto, the report entitled “Historical Property Description,” and the public testimony, all of which are incorporated herein by this reference. Section 4. For the subject property, a report entitled “Historical Property Description” is on file with the Planning Division, and is hereby approved and adopted, and Resolution No. 2026-XX Page 2 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 together with the staff report and this Resolution, justify the findings for placement on the City of Santa Ana Register of Historical Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this Resolution in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorder’s Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. th ADOPTED this 29 day of January, 2026. __________________________ Edward Murashie Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:________________________ Brandon Salvatierra Assistant City Attorney AYES: Commission members____________________________________ NOES: Commission members___________________________________ ABSTAIN: Commission members___________________________________ NOT PRESENT: Commission members: ______________________________ Resolution No. 2026-XX Page 3 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, GEMA ZAPIEN, Historic Resources Commission Secretary, do hereby attest to and certify the attached Resolution No. 2026-XX to be the original resolution adopted by Historic Resources Commission of the City of Santa Ana on January 29, 2026. Date: ________________ ____________________________________ Gema Zapien Commission Secretary City of Santa Ana Resolution No. 2026-XX Page 4 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 EXHIBIT A LEGAL DESCRIPTION APNAddressLegal Description Owner Names 003-092-40 2424 North Oakmont THE LAND REFERRED TO Lance Uradomo Avenue HEREIN BELOW IS SITUATED and Tilly IN THE COUNTY OF ORANGE, Gurman, STATE OF CALIFORNIA AND husband and IS DESCRIBED AS FOLLOWS: wife as community LOTS 20 AND 21, AND THE property with NORTH 5 FEET OF LOT 22 right of AND THE EASTERLY 25 FEET survivorship. OF LOTS 2, 3 AND 4 IN BLOCK A OF TRACT NO. 378, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 16, PAGE 4 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA Resolution No. 2026-XX Page 5 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 EXHIBIT B Conditions of Approval for Historic Resources Commission Application No. 2024-11 and Historic Resources Commission Categorization No. 2024-09 The Applicant must comply with each condition listed below prior to exercising the rightsconferred by the Historic Resource Commission’s approval and the City of Santa Ana Register of Historic Properties pursuant to Section 30-6 of the Santa Ana Municipal Code. The Applicant must remain in compliance with all condition(s) listed below: 1. Within 180-days of execution of this resolution, the applicant shall install a bronze plaque as per a template on file with the Planning Division honoring and recognizing the structure at 2424 N. Oakmont Avenue, historically known as the Halsell-Bricken House. The plaque shall include the historic name, address, year built, and local historic register designation. The final dimensions, location, text and description on the plaque shall be reviewed and approved by Planning Division staff. 2. The applicant shall regularly maintain all landscaping in the front yard area (pruning and thinning trees and shrubs) so that the historic building and its character defining features (including but not limited to L-plan; one-to-two- story massing; asymmetrical primary (west) façade; moderately-pitched hipped roof; original wood-sash windows of multiple configurations (double-hung, casement, fixed, and porthole); stucco and wood-plank wall cladding; entrance featuring Classically inspired molded surround featuring fluted pilasters, broken pediment with prominent dentils, and finial; wood-panel front door with operable sidelights; and wrought iron porch lamp, Classically inspired molding on the bay windows; second-story balconet; and a fluted belt course; deep setback with a large front lawn; and Hollywood driveway) are visible from the public right-of-way. Resolution No. 2026-XX Page 6 of 6 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 _________________________________________________________________________ HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement (“Agreement”) is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as “City”), and Lance Uradomo and Tilly Gurman, husband and wife as community property with right of survivorship (hereinafter collectively referred to as “Owner”), owner of real property located at 2424 North Oakmont Avenue, Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the “Mills Act”) to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 2424 North Oakmont, Santa Ana, CA, 92706 and more particularly described in Exhibit “A,” attached hereto and incorporated herein by reference, and hereinafter referred to as the “Historic Property.” C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. MILLS ACT AGREEMENT 2424 North Oakmont Drive Santa Ana, CA 92706 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: 1. Effective Date and Terms of Agreement. This Agreement shall be effective and commence on April 8, 2026,and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. c. Within 30 days from receipt of City’s notice of nonrenewal, the Owner may file a written protest of City’s decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character- defining features described in the “Executive Summary” and “Historical Property Description” attached hereto, marked collectively as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, - 2 - MILLS ACT AGREEMENT 2424 North Oakmont Drive Santa Ana, CA 92706 textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior’s Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. c. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character-defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior’s Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner’s compliance with the terms and provisions of this Agreement. As part of the periodic inspection, Owner shall supply information in a format determined acceptable by the representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization information required to determine compliance with the terms of this Agreement. f. Owner shall implement the rehabilitation and restoration work items as discussed in detail in Exhibit D, "Proposed Structure Improvements" and the City Council Historic Property Preservation Agreement (HPPA No. 2024-13) staff report dated April 7, 2026. All work items shall be completed within the first ten years of the Mills Act Agreement, with specific items completed within the first five years including: trim and maintain landscaping as necessary to maintain a view of the primary (east) façade from the public right-of-way, including the large trees adjacent to the east (primary) elevation; repair or replace damaged rain gutter on the front (east) façade of the detached garage; replace non-original metal roll-up garage door with a garage door of stylistically appropriate material, subject to Planning Division staff approval; assess condition of windows and window trim throughout the property and repair or replace in- kind, as necessary with Planning Division staff approval; assess condition of wall cladding throughout the property and repair or replace in-kind as necessary with Planning Division staff - 3 - MILLS ACT AGREEMENT 2424 North Oakmont Drive Santa Ana, CA 92706 approval; and assess condition of Hollywood driveway of residence and repair or replace in-kind with Planning Division staff approval. Proof of completion, as requested by the City of Santa Ana, will be required in order to satisfy and maintain the Mills Act Agreement. Staff approval is required before items are amended or removed/replaced from the improvements list. 4. Furnishing of Information. The Owner hereby agreesto furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Ownerhave failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 ½) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. c. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the - 4 - MILLS ACT AGREEMENT 2424 North Oakmont Drive Santa Ana, CA 92706 obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City’s regulations governing historic properties are available to City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 2424 North Oakmont Avenue, Assessor Parcel Number, 003-092-40, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. c. This property is listed in the Santa Ana Register of Historical Properties (Register). In any real property transaction, the owner of this property or the owner’s representative shall provide the buyer of this property with notice that the property is listed on the City’s historic Register. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the account of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City: City of Santa Ana - 5 - MILLS ACT AGREEMENT 2424 North Oakmont Drive Santa Ana, CA 92706 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: City Clerk Owners: Lance Uradomo and Tilly Gurman 2424 North Oakmont Avenue Santa Ana, CA 92706 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. c. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney’s fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. - 6 - MILLS ACT AGREEMENT 2424 North Oakmont Drive Santa Ana, CA 92706 g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature page follows} - 7 - MILLS ACT AGREEMENT 2424 North Oakmont Drive Santa Ana, CA 92706 ATTEST: CITY OF SANTA ANA ________________________ _________________________ JENNIFER L. HALL ALVARO NUÑEZ City Clerk City Manager OWNERS Date: ___________________ By:__________________ LANCE URADOMO Date: ___________________ By:__________________ TILLY GURMAN APPROVED AS TO FORM: RECOMMENDED FOR APPROVAL: SONIA CARVALHO City Attorney By: _____________________ _____________________ BRANDON SALVATIERRA ALI PEZESHKPOUR Assistant City Attorney Executive Director Planning and Building Agency - 8 - MILLS ACT AGREEMENT 2424 North Oakmont Drive Santa Ana, CA 92706 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOTS 20 AND 21, AND THE NORTH 5 FEET OF LOT 22 AND THE EASTERLY 25 FEET OF LOTS 2, 3 AND 4 IN BLOCK A OF TRACT NO. 378, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 16, PAGE 4 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. Assessor’s Parcel Number:003-092-40 - 9 - Exhibit B EXECUTIVE SUMMARY Halsell-Bricken House 2424 North Oakmont Avenue Santa Ana, CA 92706 NAME Halsell-Bricken House REF. NO. ADDRESS 2424 North Oakmont Avenue CITY Santa Ana ZIP 92706 ORANGE COUNTY YEAR BUILT 1937 LOCAL REGISTER CATEGORY: Landmark N/A HISTORIC DISTRICT NEIGHBORHOOD Park Santiago B/2, CALIFORNIA REGISTER CRITERIA FOR EVALUATION CALIFORNIA REGISTER STATUS CODE 5S3 C/3 Location: Not for Publication Unrestricted Prehistoric Historic Both ARCHITECTURAL STYLE: Colonial Revival The most universal of all American domestic building styles, the Colonial Revival has been popular since the 1876 Centennial celebration in Philadelphia stimulated a patriotic interest in the American architectural past. Beginning in the second half of the 1930s, and continuing in the two decades following World War II, the late Colonial Revival departed from the more literal historicism of the previous half-century and was often reduced to a few signature elements. These features include stylized door surrounds; pseudo-quoined corners; multi-paned casement or double-hung sash windows, often framed by decorative shutters; circular, oval, or octagonal accent windows; and eaves nearly flush with the exterior walls. A hipped roof subtype sometimes contained Regency references such as bow and bay windows. Another popular subtype was split-level, ranch, or Cape Cod in appearance and plan, and normally topped by gabled roofs. The materials used in the late Colonial Revival were similar to those of the earlier period—wood, brick, stone, and stucco—although stucco came to be used more frequently than before. SUMMARY/CONCLUSION: The Halsell-Bricken House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Coloial Revival-style home in Santa Ana and under Criterion 4, due to associations with the property’s original owner, Oliver L.Halsell, who is significant as a central figure in the founding of Santa Anas Fairhaven Memorial Park. The recommended categorization is “Landmark” because it hass a distinctive architectural style and quality and is is associated with a significant person in the city (Santa Ana Municipal Code, Section 30-2.2). EXPLANATION OF CODES: California Register Criteria for Evaluation: (From California Office of Historic Preservation, Technical Assistance Series # 7, “How to Nominate Resources to the California Register of Historical Resources,” September 4, 2001.) 2:It is associated with the lives of persons significant in our past. 3: It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. Appears to be individually eligible for local listing or designation through survey evaluation. 5S3: Exhibit B State of California The Resources Agency Primary #______________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI #__________________________________________________ PRIMARY RECORD Trinomial______________________________________________ NRHP Status Code__5S3________________________________ Other Listings_____________________________________________________________________ Review Code________ Reviewer________________________ Date_______________ Page _1_ of _7_ Resource name(s) or number (assigned by recorder) Halsell-Bricken House P1. Other Identifier: *P2. Location: Not for Publication Unrestricted *a. County Orange County *b. USGS 7.5’ Quad: Orange Quadrangle California-Orange County 7.5-Minute Series Date: 2022 *c. Address 2424 N. Oakmont Avenue City: Santa Ana Zip: 92706 *e. Other Locational Data: Assessor’s Parcel Number 003-092-40 *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries) The Halsell-Bricken House is a highly intact example of a one-to-two-story, Colonial Revival-style, single-family residence with two detached ancillary buildings and a Hollywood driveway (Figure 1). The residence is characterized by a rough L-plan, hipped roof with asphalt shingles and slight eaves, and principally stucco exterior cladding, augmented with wood lap siding on the second story of the primary (east) façade. Architectural detailing is concentrated on the primary façade, as typified by the recessed main entrance. At that location,a Classically inspired molded surround features fluted pilasters appearing to support a broken pediment with prominent dentils and a finial (Figure 2). Within the recess the walls are embellished with a simple rectangular molding, while operable sidelights flank the wood-panel front door and a wrought iron lamp is suspended from the ceiling. Other details include Classically inspired molding on the bay window to the left of the entrance (Figure 3), a small balconet on the wood-clad second story (Figure 4), and a fluted belt course. Windows on the primary façade are varied; in addition to the aforementioned bay window, the main exterior includes a multi-light porthole window, segmental arch multi-light window with ornamental shutters, and multi-light double hung wood sash and casement windows (Figure 5). The rear and side elevations are comparatively restrained in appearance (Figure 6). These areas are characterized by stucco cladding and multi-light double-hung wood-sash windows. At the rear court, a trio of non-original glazed double doors opens from the west façade of the single-story mass (Figure 7). The adjacent patio is enclosed with a four-foot-high stuccoed wall with wood-plank gates at three locations. (See Continuation Sheet 3 of 4.) *P3b. Resource Attributes: (list attributes and codes) HP2. Single-Family Residence and HP4. Ancillary building *P4. Resources Present: Building Structure Object Site District Element of District Other P5a. Photo P5b. Photo: (view and date) (Figure 1) Primary (east) facade, view northwest, November 18, 2026 *P6. Date Constructed/Age and Sources: historic 1937/Original Building Permit *P7. Owner and Address: Tilly Gurman & Lance Uradomo 2424 North Oakmont Avenue Santa Ana, CA 92706 *P8. Recorded by: James Williams City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: January 29, 2026 *P10. Survey Type: Intensive Survey *P11. Report Citation: (Cite survey report and other sources, or enter “none”) None *Attachments: None Location Map Sketch Map Continuation Sheet Building, Structure, and Object Record Archaeological Record District Record Linear Feature Record Milling Station Record Rock Art Record Artifact Record Photograph Record Other (list) DPR 523A (1/95) *Required information State of California The Resources Agency Primary #__________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI#______________________________________________ BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 7 *NRHP Status Code_5S3_________________________ *Resource Name or #: Halsell-Bricken House B1. Historic Name: Halsell-Bricken House B2. Common Name: Same B3. Original Use: Single-Family Residence B4. Present Use: Single-Family Residence *B5. Architectural Style: American Colonial Revival *B6. Construction History: (Construction date, alterations, and date of alterations): 1937. Residence and garage costructed. $7000. 1991. Construction of shop building. $12,500. 1993. Residence and garage re-roofed in-kind. $6,500. 2024: Non-historic pergola demolished. 2025: Rear sliding glass doors replaced with galzed double doors; two rear windows restored; one rear window replaced. *B7. Moved? No Yes Unknown Date:__________ Original location:______________ *B8. Related Features: Detached garage, shop building B9a. Architect: Unknown b. Builder: Charles Lawrence (contractor) *B10. Significance: Theme Residential Architecture Area Santa Ana Period of Significance: 1937 Property Type: Single-family Residence Applicable Criteria: C/3 (Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Halsell-Bricken House is architecturally significant as an intact example of a Colonial Revival-style house in Santa Ana. The original building permit is dated May 25, 1937, and indicates the property was developed as a residence and garage for owner Oliver L. Halsell, at a value of $7,000. The original architect and contractor are unknown. Halsell played a central role in the development of Santa Ana's Fairhaven Memorial Park, which at the time of its opening in 1911, was notable locally for its park-like planning (Tours Through History 2024). In the 1920s and 1930s, Halsell served an officer of the Santora Company, a Santa Ana-based land development firm responsible for constructing numerous commercial properties and establishing many residential subdivisions in Santa Ana and Orange County. In his duties with Santora, Halsell served as "tract manager" of the Oakmont Park tract, in which the Halsell-Bricken House is located. Originally platted for residential development in 1923, the tract was touted at the time of its initial development as one of a few areas of “high class residence construction” in the city (Santa Ana Daily Register November 8, 1923). Halsell remained at the subject property until his death in 1954. Upon his passing, Halsell's estate was transferred to the Halsell Foundation, which he established “for the cultural and religious benefit of the people of Orange County” (The Register October 26, 1954). The Halsell Foundation remains in operation to this day. (Continued on page 3 of 6.) B11. Additional Resource Attributes: (List attributes and codes) Sketch Map *B12. References: Ancestry.com. U.S., City Directories, 1822-1995 \[database on- line\]. Lehi, UT, USA: Ancestry.com Operations, Inc., 2011. (See Continuation Sheet 4 of 6.) Halsell-Bricken House B13. Remarks: None 2424 N. Oakmont Avenue *B14. Evaluator: James Williams, City of Santa Ana. *Date of Evaluation: January 29, 2026 (This space reserved for official comments.) N DPR 523B (1/95) *Required information State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 3_ of 7_ Resource Name: Halsell-Bricken House *Recorded by James Williams *Date January 29, 2026 Continuation Update *P3a. Description (continued): There are two buildings at the rear of the property, the original detached garage and a shop building constructed circa 1991. The detached garage was constructed in a style similar to the residence (Figure 8). It has a rectangular plan, hipped roof with asphalt shingles and slight eaves, and stucco siding. A non-original metal roll-up garage door is located on the main (east) façade, opening toward a concrete-pavedHollywooddriveway leading to Oakmont Avenue(Figure 9). There are three additional entrances, which feature two glazed wood-panel doors and one glazed solid wood door. A double-hung wood-sash window is located on the west façade. The shop building has a rectangular plan, flat roof, and stucco siding (Figure 10). It is accessed via a metal roll-up garage door (south façade) and a glazed wood standard door (east elevation). Two horizontally sliding aluminum-sash windows are located on the east elevation. A flat-roof shelter extends from the shop’s east elevation, covering nearly all the concrete- paved area between the shop building and detached garage. The front yard is landscaped with a broad lawn and various shrubs and mature trees, while the back yard features lawns, ornamental plants, and a citrus tree. B10. Significance (continued): * City directories and newspaper articles show that by 1960, F.H. Schroeder lived at this address, followed by David Schroeder (The Tustin News January 23, 1969). Gordon and Maureen Bricken acquired and moved onto the property by 1973, living there into the twenty-first century. Gordon had a two-decade career in local politics, serving on the City's Planning Commission from 1964 to 1974, the City Council in the 1970s and 1980s, and as mayor from 1981 to 1983 (Los Angeles Times June 28, 2023). During his tenure as mayor, his leadership was linked to such projects as the Orange County World Trade Center, Santa Ana Train Station, and more generally, the "revitalization” of the Civic Center area (Los Angeles Times June 28, 2013). City planning records show, the property's current owners and residents Tilly Gurman and Lance Uradomo took ownership of the property in 2023. The Halsell-Bricken House is located in the Park Santiago neighborhood. The neighborhood is bounded by Santiago Creek and Park on the north, East Seventeenth Street on the south, North Lincoln Avenue on the east, North Main Street on the west, and the I-5 freeway on the southwest. In large part these boundaries reflect the transportation lines that were constructed towards the end of the nineteenth century and at the beginning of the twentieth century, when the Pacific Electric interurban railroad ran up Main Street; the Atchison, Topeka, and Santa Fe tracks followed Lincoln; and the Southern Pacific Railroad right-of-way mirrored the freeway route. This area remained primarily agricultural well into the 1920s. As of 1905, the city directories listed around twenty households on East Santa Clara, Twentieth Street, “C Street” (now North Santiago Street), North Bush Street and North Main Avenue, the only streets in the area at the time. The vast majority of the residents were ranchers. By 1911, the number of households had increased to about thirty, and Edgewood Road and Valencia Street had been partially laid out, but most residents continued to list “rancher” or “fruit grower” as their occupation in the city directories. This pattern of land use was evident on the 1912 plat map of the City, which illustrated two small, Craftsman era subdivisions along Bush north of Santa Clara and on Valencia and Poinsettia south of Twentieth Street, with the remaining area divided into larger, agricultural parcels held by approximately forty landowners. While the area east of Santiago Street was not subdivided until after the mid-1920s, most of the present day streets west of Santiago had been laid out when the City was mapped in 1923. Ranching continued to be the most prevalent occupation in the neighborhood, but increasing numbers of professionals, small business owners, merchants, and people in service professions such as painters, electricians, and ca rpenters made their homes in the western half of the neighborhood during the 1920s and 1930s. The area also attracted several city and county officials, including the City Attorney (Z. B. West, Jr., 321 East Santa Clara Avenue), County Supervisor, First District (C. H. Chapman, 2315 North Santiago Street), County Surveyor (E. H. Irwin, 2407 North Santiago Street), and County Auditor (William C. Jerome, 2422 Poinsettia Street). By April 1942, when the Sanborn Company first mapped the western half of the area, most of the lots had been improved with single-family homes, many in the revival styles popular during the 1920s and 1930s. Subsequent development of the eastern half of the neighborhood and infill construction in the western half displayed the simplified ranch style that emerged following World War II. The Halsell-Bricken House qualifies for listing in the Santa Ana Register of Historical Properties under Criteria 1 and 4. Under Criterion 1, the property is eligible as a good and intact example of a Colonial Revival-style house in Santa Ana. Located in Park Santiago, the house cost $7,000 to build in 1937. The recommended categorization is “landmark” because it has a distinctive architectural style and quality as a Colonial Revival-style residence (Santa Ana Municipal Code, Section 30-2.2.1). DPR 523L State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 4_ of 7_ Resource Name: Halsell-Bricken House *Recorded by James Williams *Date January 29, 2026 Continuation Update *B10. Significance (continued): The Halsell-Bricken House also qualifies for listing under Criterion 4, due to its associations with its original owner, Oliver L. Halsell. Halsell is credited as a central figure in the 1911 founding of Fairhaven Memorial Park, whose park-like landscape design reflected a new and influential approach in the development of cemeteries in the United States in the early twentieth century. The property remains in use for burials, its longevity a testament to Halsell’s forward-looking mindset. Although Halsell enjoyed a highly successful career in real estate development, no information uncovered in research for this evaluation found that his contributions within the Santora Company stand out as individually significant or outweigh those of other officers of the company; as such his accomplishments with the Santora Company do contribute to the property’s significance under Criterion 4. The recommended categorization for the property under this criterion is also “Landmark” because the property is associated with a significant person in the city (Santa Ana Municipal Code, Section 30-2.2.1). Regarding the potential historical significance of Gordon Bricken, although his career in public service is connected to such major projects as the Orange County World Trade Center and the Santa Ana Train Station, there is not sufficient secondary source material pertaining to his career to ascertain the details of his participation in these projects or the importance of the projects themselves. While future research may find that the Halsell-Bricken House is also significant for its associations with Bricken, no definitive conclusions can be made at the time of this evaluation. The character-defining features of the Halsell-Bricken House are those of the original construction of the residence and which convey the property’s Colonial Revival-style design. They include, but may not be limited to: L-plan; one-to-two-story massing; asymmetrical primary (west) façade; moderately-pitched hipped roof; original wood-sash windows of multiple configurations (double-hung, casement, fixed, and porthole); stucco and wood-plank wall cladding; entrance featuring Classically inspired molded surround featuring fluted pilasters, broken pediment with prominent dentils, and finial; wood- panel front door with operable sidelights; and wrought iron porch lamp, Classically inspired molding on the bay windows and other primary-elevation locations; second-story balconet; and a fluted belt course; deep setback with a large front lawn; and Hollywood driveway. *B12. References (continued): City of Santa Ana Building Permits City of Santa Ana, Public Library. City directory collection. Los Angeles Times, via newspapers.com Marsh, Diann. Santa Ana, An Illustrated History. Encinitas, Heritage Publishing, 1994. McAlester, Virginia Savage. A Field Guide to American Houses. New York: Alfred A. Knopf, 2013. Newspapers.com (Sana Ana Register, Tustin News, The Register) Office of Historic Preservation. “Instructions for Recording Historical Resources.” Sacramento: March 1995. Register, The, via newspapers.com Santa Ana Daily Register, via newspapers.com Tours Through History, “Fairhaven Cemtery Lantern Light Tour,” 2024, https://toursthroughhistory.com/fairhaven-cemetery/ Tustin News, via newspapers.com DPR 523L State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 5_ of 7_ Resource Name: Halsell-Bricken House *Recorded by James Williams *Date January 29, 2026 Continuation Update Additional Figures: Figure 3. The bay window on the primary (east) elevation includes mullions molded as fluted columns. facing southwest. Figure 2. The recessed main entrance is marked with a Classically inspired surround with fluted columns and a broken pediment featuring a finial. facing west. Figure 4. On the upper level of the main (east) façade, a Figure 5. The lower level of the primary façade also small wood balconet is situated beneath multi-light wood features a porthole window (left) and a multi-light casement windows, facing northeast. segmental arch window with ornametnal shutters, facing west. DPR 523L State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 6_ of 7_ Resource Name: Halsell-Bricken House *Recorded by James Williams *Date January 29, 2026 Continuation Update Figure 6. The rear of the residence is comparatively Figure 7. Three non-original glazed double doors front retrained in its appearance and features simple stucco the rear patio, facing northeast. surfaces and multi-light double-hung windows, facing northeast. Figure 8. The detached garage, located northwest of the Figure 9. Ribbon driveay in the foreground leading to primary residence, has a hipped roof with moderate garage in the background, facing south. overhangs and asphalt shingle cladding to match the residence, facing southeast. DPR 523L State of California The Resources Agency Primary # _____________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________________________ CONTINUATION SHEET Trinomial _____________________________________________ Page 7_ of 7_ Resource Name: Halsell-Bricken House *Recorded by James Williams *Date January 29, 2026 Continuation Update Figure 9. The shop building, directly west of the detached garage, has a stuccoed exterior, flat roof, and large open- frame shelter, facing north. DPR 523L MILLS ACT AGREEMENT 2424 North Oakmont Avenue Santa Ana, CA 92706 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior’s Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, and such design is compatible with - 1 - MILLS ACT AGREEMENT 2424 North Oakmont Avenue Santa Ana, CA 92706 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. - 2 - Exhibit D: Proposed Structure Improvements (“Work Plan”) 2424 North Oakmont Avenue Item Year Improvement 1 2026 Trim and maintain landscaping as necessary to maintain a view of the primary (east) façade from the public right-of-way, including the large trees adjacent to the east (primary) elevation. 2 2026 Repair or replace damaged rain gutter on the front (east) façade of the detached garage. 3 2027 Replace non-original metal roll-up garage door with a garage door of stylistically appropriate material, subject to Planning Division staff approval. 4 2029 Assess condition of windows and window trim throughout the property and repair or replace in-kind, as necessary with Planning Division staff approval. 5 2031 Assess condition of wall cladding throughout the property and repair or replace in- kind as necessary with Planning Division staff approval. 6 2033 Assess condition of roofs of residence and ancillary buildings and re-roof in-kind as necessary with Planning Division staff approval. 7 2035 Assess condition of Hollywood driveway of residence and repair or replace in-kind with Planning Division staff approval. SITE 500’ RADIUS HRCA NO. 2024-11, HRC NO. 2024-09, HPPA NO. 2024-13 HALSELL HOUSE 2424 N. OAKMONT AVENUE P LA N N I N G AND B U I L D ING A G E N C Y EXHIBIT 3 P!S!B!O!H!F!!!D!P!V!O!U!Z!!!S!F!Q!P!S!U!F!S TJODF!2:32 Mailing Address : 600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701 Telephone (714) 543-2027 / Fax (714) 542-6841 Visit us @ www.LegalAdstore.com GEMA ZAPIEN CITY OF SANTA ANA/PLANNING & BUILDING AGENCY 20 CIVIC CENTER PLAZA 2ND FLR OR# SANTA ANA, CA 92702 4002168 NOTICEOFPUBLICHEARINGelseraisedatthepublichearing BEFORETHESANTAANAHISTORICdescribedinthisnotice,orinwritten RESOURCESCOMMISSIONcorrespondencedeliveredtotheHistoric TheCityofSantaAnaencouragestheResourcesCommissionorCityCouncilof publictoparticipateinthedecision-theCityofSantaAnaat,orpriorto,the makingprocess.Weencourageyoutopublichearing. contactuspriortothePublicHearingifSitienepreguntasenespañol,favorde youhaveanyquestions.llamaraGemaZapienal(714)667- DPQZ!PG!OPUJDF HistoricResourcesCommission2732. Action:TheHistoricResourcesNucnliênlcbngtingVit, CommissionwillholdaPublicHearingtoxininthoichoKristieHa(714) receivepublictestimony,andwilltake667-2206. actionontheitemdescribedbelow.Their1/16/26 decisionisfinalunlessappealedtotheOR-4002168# CityCouncilwithin10daysofthedecision Notice Type: GPN GOVT PUBLIC NOTICE byanyinterestedpartyorgroup. ProjectLocation:2424NorthOakmont Ad Description AvenuelocatedwithintheSingle-Family Residence(R1)zoningdistrict. 2424 N. Oakmont Ave. ProjectApplicant:LanceUradomoand TillyGurman(PropertyOwner& Applicant) ProjectDescription:Requestfor To the right is a copy of the notice you sent to us for publication in the approvalofHistoricResources CommissionApplication(HRCA)No. ORANGE COUNTY REPORTER. Thank you for using our newspaper. Please 2024-11,HistoricRegisterCategorization (HRC)No.2024-09,andHistoricProperty read this notice carefully and call us with any corrections. The Proof of PreservationApplication(HPPA)No. Publication will be filed with the County Clerk, if required, and mailed to you 2024-13toallowtheplacementand categorizationofthesubjectsiteinthe after the last date below. Publication date(s) for this notice is (are): SantaAnaRegisterofHistorical Propertiesas“Key”andtoexecutea 01/16/2026 HistoricPropertyPreservationAgreement withtheCityofSantaAna. EnvironmentalImpact:Pursuanttothe CaliforniaEnvironmentalQualityAct (CEQA)andtheCEQAGuidelines,the projectisexemptfromfurtherreview underSection15331(Class31),asthese actionsaredesignedtopreservehistoric The charge(s) for this order is as follows. An invoice will be sent after the last resources.ACategoricalExemption,ER No.2024-86willbefiledforthisproject. date of publication. If you prepaid this order in full, you will not receive an MeetingDetails:Thismatterwillbe invoice. heardonThursday,January29,at4:30 p.m.intheCityCouncilChamber,22 CivicCenterPlaza,SantaAna,CA92701. Publication$146.15 Membersofthepublicmayattendthis meetingin-personorjoinviaZoom.For www.capublicnotices.com$20.00 themostuptodateinformationonhowto participatevirtuallyinthismeeting,please visitwww.santa-ana.org/pb/meeting- Total$166.15 participation. WrittenComments:Ifyouareunableto participateinthemeeting,youmaysend writtencommentsbye-mailto PBAeComments@santa-ana.org (referencethetopicinthesubjectline)or Daily Journal Corporation mailtoGemaZapien,Recording Secretary,CityofSantaAna,20Civic Serving your legal advertising needs throughout California. CenterPlaza–M20,SantaAna,CA 92701.Efbemjofuptvcnjuxsjuufo ORANGE COUNTY REPORTER, SANTA ANA(714) 543-2027 dpnnfoutjt4;41q/n/pouifebzpg uifnffujoh/Commentsreceivedafter (951) 784-0111 BUSINESS JOURNAL, RIVERSIDE thedeadlinemaynotbedistributedtothe Commissionbutwillbemadepartofthe (213) 229-5300 DAILY COMMERCE, LOS ANGELES record. WhereToGetMoreInformation: (213) 229-5300 LOS ANGELES DAILY JOURNAL, LOS ANGELES Additionaldetailsregardingtheproposed SAN FRANCISCO DAILY JOURNAL, SAN FRANCISCO(800) 640-4829 action(s),includingthefulltextofthe discretionaryitem,maybefoundonthe (408) 287-4866 SAN JOSE POST-RECORD, SAN JOSE Citywebsite72hourspriortothepublic hearingat:https://santa- (916) 444-2355 THE DAILY RECORDER, SACRAMENTO ana.primegov.com/public/portal. WhoToContactForQuestions:Should THE DAILY TRANSCRIPT, SAN DIEGO(619) 232-3486 youhaveanyquestions,pleasecontact THE INTER-CITY EXPRESS, OAKLAND(510) 272-4747 caseplannerJamesWilliamswiththe PlanningandBuildingAgencybyemailat JWilliams@santa-ana.orgorbyphoneat 714-647-5899,orPedroGomezbyemail atPGomez@santa-ana.orgorbyphone at714-667-2790. Note:Ifyouchallengethedecisiononthe abovematter,youmaybelimitedto raisingonlythoseissuesyouorsomeone !A000007289934! CITY OF SANTA ANA Planning and Building Agency -/pba NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA HISTORIC RESOURCES COMMISSION Historic Resources Commission Action: Project Location: - Project Applicant: Project Description: -- - Environmental Impact: - Meeting Details: Thursday, January 29, at 4:30 p.m. Members of the public may attend this meeting in-person or join via Zoom. -- Written Comments: --(ref Zapien– Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Where To Get More Information: at: - Who To Contact For Questions: - --- -- Note:I Si tiene preguntas en español, favor de llamar a Gema Zapien al (714) 667-2732. Nu cn liên lc bng ting Vin thoi cho Kristie Ha (714) 667-2206. 500’ RADIUS NOTIFICATION MAP Planning and Building Agency www.santa-ana.org/pb Item # 14 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Agreements for On-Call Building Safety Division Services AGENDA TITLE Agreements for On-Call Building Safety Division Services (Specification No. 25-130) (General Fund & Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute agreements with the fifteen (15) firms listed below to provide On-Call Building Safety Division Services in a total amount not to exceed $1,900,000 for an initial term beginning May 17, 2026 and ending June 30, 2027, with provisions for two (2), one-year extensions for a total aggregate amount not to exceed $4,900,000 (Core Agreement No. A-2026-XXX). ConsultantLocation 4LEAF, Inc.Pleasanton, CA BPR Consulting Group Granite Bay, CA Bureau Veritas North America, Inc.Costa Mesa, CA CSG Consultants, Inc.Orange, CA Interwest Consulting GroupSan Diego, CA JAS PacificUpland, CA JLee Engineering, Inc.Alhambra, CA Scott Fazekas & AssociatesIrvine, CA Shums Coda Associates, Inc.Pleasanton, CA The Code Group, Inc. (VCA Code)Orange, CA Transtech Engineers, Inc.Chino, CA TRB & Associates, Inc.Long Beach, CA True North Compliance Services, Inc.Long Beach, CA West Coast Code Consultants, Inc.Oceanside, CA Willdan EngineeringAnaheim, CA GOVERNMENT CODE §84308 APPLIES: Yes On-Call Building Safety Division Services April 7, 2026 Page 2 DISCUSSION Background On May 17, 2022, the City Council approved fourteen (14) consulting firms to provide the City with as-needed Building Safety Division services with an aggregated not to exceed amount of $4,900,000, for a period of three years ending May 16, 2025, with the option to renew for up to one additional year. Development activity in the City has been trending upward since the COVID-19 pandemic to present with many large transformative projects such as the Rafferty and The Row for residential mixed-use projects, as well as commercial/industrial projects such as the South Coast Technology Center. Continuing into the future, the City anticipates many large developments such as the Related Bristol and The Village Santa Ana Specific Plan projects to continue the development trends. Just these two proposed projects would include over 5,600 residential units, 250 hotel room keys, 200 units of senior continuum of care units, and 430,000 square feet of retail and restaurant uses. Overview of Scope of Services Building activity in the City remains at a high level and the approval of this consultant on- call list would allow for expedited customer services through plan check services that the building industry demands as services from the City. Maintaining a list of on-call consultants for building plan checks, contract inspection staff, and similar services provides a means to expeditiously service projects and reduce response time for plan reviews and inspection of general construction workload by permanent in-house staff. For example, projects for which the applicant has requested accelerated plan reviews complete the reviews within 10 business days, which is often a reduction of review time of up to two-thirds. Moreover, the on-call list would allow for the City to retain other specialized services, including meeting with applicants to resolve complex, specialty plan-check issues, peer- reviewing structural calculations, digitizing of plans and permits to allow for easier public access to property records, specialty inspection services, and temporary in-house staffing for plan reviews, inspections, and permit services as needed. Together, these services maintain service levels for the community during times of heavy project loads and when large-scale projects are submitted, minimizing review disruptions to other projects. The Planning and Building Agency has continued to improve customer service by streamlining review processes, including the introduction of a electronic plan review system, migration to a digital environment through scanning of all building permit and plan records, working to implement an online portal permitting system through a new comprehensive land management system, launching over-the-counter permit services known as PBx, and introducing a new concurrent plan check for same-day reviews known On-Call Building Safety Division Services April 7, 2026 Page 3 as the Pod. In order to meet continued construction activity and the associated Building Safety services demand, staff requests a new agreement to allow continuity of timely and high-quality customer service through the on-call consultants. Request for Qualifications Request for Qualifications (RFQual) No. 25-130 was issued on November 14, 2025 on the City’s online bid management and publication system. A summary of vendor participation and results is as follows: 966 Vendors notified 1 Santa Ana vendor notified 37 Vendors downloaded the RFQual packet 15 Responsive submissions received 0 Responsive submissions received from Santa Ana vendors Submissions were solicited, opened on December 16, 2025, and evaluated. Fifteen submissions were received by the RFQual deadline and were determined to be responsive to the specifications and met the City's requirements. While one Santa Ana- based vendor was notified of the RFQual submission opportunity, that vendor did not submit a proposal. Staff recommends awarding agreements to all 15 qualified vendors. The selected vendors will provide on-call Building Safety Division services including plan review, technical, inspection services, and expedited services for the Planning and Building Agency. Placement on the pre-approved list does not guarantee work to a consultant. When services are required, firms will be selected based upon their ability to perform the required work within the specified timeframe and budget. Approval of the recommended bench list will allow the Building Safety Division to timely engage services from experienced consultants for task specific projects. Staff will be better able to respond quickly to fluctuating demands and ultimately provide better service to the City of Santa Ana. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Accelerated plan check fees and expedited inspection fees paid to the City by the applicant for each project contracted out for Building Safety services will fully fund the consultants’ cost to perform the respective plan check and inspections. Other services provided that are non-applicant funded, such as digitizing of plans and permits and temporary in-house staffing, are paid through approved budgets for contractual services. On-Call Building Safety Division Services April 7, 2026 Page 4 Funding is available in the current FY 2025/26 budget and funding for subsequent fiscal years will be included in the proposed budgets for City Council consideration. Proposed Budget FY 2026 - 2029 Fiscal YearAccounting Fund DescriptionAccount Unit, Amount UnitAccount Description 2025-2605316021-Non-General FundPlanning & Building – $400,000 62318Accelerated Plan Check 2026-2705316021-Non-General FundPlanning & Building – $100,000 62323Expedited Inspections 2026-2701116520-General FundContract Services-$300,000 62300Professional 2026-2705316021-Non-General FundPlanning & Building – $1,000,000 62318Accelerated Plan Check 2026-2701116530-General FundContract Services-$100,000 62300Professional 2027-2805316021-Non-General FundPlanning & Building – $100,000 62323Expedited Inspections 2027-2801116520-General FundContract Services-$300,000 62300Professional 2027-2805316021-Non-General FundPlanning & Building – $1,000,000 62318Accelerated Plan Check 2027-2801116530-General FundContract Services-$100,000 62300Professional 2028-2905316021-Non-General FundPlanning & Building – $100,000 62323Expedited Inspections 2028-2901116520-General FundContract Services-$300,000 62300Professional 2028-2905316021-Non-General FundPlanning & Building – $1,000,000 62318Accelerated Plan Check 2028-2901116530-General FundContract Services-$100,000 62300Professional TOTAL $4,900,000 On-Call Building Safety Division Services April 7, 2026 Page 5 EXHIBIT(S) 1.Exhibit 1 – Template Agreement 2.Exhibit 2 – Scope of Services and Fees 3.Exhibit 3 – Insurance Requirements Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building Agency Approved By: Alvaro Nuñez, City Manager AGREEMENT TOPROVIDE ON-CALL BUILDINGSAFETYINSPECTION SERVICES THIS AGREEMENT is made and entered into this 7th day of , 2026 by and between________________sultantCityof SantaAna,achartercityand municipalcorporationorganizedandexistingunderthe Constitutionandlawsof theStateof RECITALS OnNovember14,2025, the City issued Request for Qualification No.25-130, by whichit sought Consultants toprovide on-call building safety consultant services for thePlanning and Building Agency of the Cityof Santa Ana. The scope of work may include any and all work efforts related toCity projects toprovide Plan Check and Building Inspection services and customer assistance for theCityofSanta Ana.The intent is to minimize response time and improve customer services by supplementingin-housestaff with consulting serviceson an as-needed basis. Consultant submitted a responsive proposal thatwas among thoseselected by the City. Consultant represents thatit is able and willing toprovidetheservices described inthe scope of work that was included in RFQ No.25-130 and attached hereto as Exhibit A. Consultant has been selected as one ofthefifteen(15) vendors which qualified for this engagement.Onlythoseconsultants approved by the City Council on7, 2026 shallbeeligibleto be engaged by the City for theseservices. In undertaking theperformanceofthis Agreement, Consultant represents thatit is knowledgeableinits field and thatany services performed by Consultant under this Agreement will be performed incompliancewithsuch standards as may reasonably be expected from a professional contracting 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 a.On an as-needed basis, and at the solediscretion of City, Consultantshall perform the services thatare described in Exhibit A, attached and incorporated by reference as though fully set forth herein. 2.COMPENSATION a.As Consultant is one of fifteen(15)selected vendors selected by the City, City neither warrants nor guarantees any minimum or maximum compensation to Page 1of 7 Consultant under this Agreement. Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit. The total amount to beexpended during the term of this Agreement, asapproved by Council amongst the fifteen (15) selected vendors, shall not exceed Four Million Nine Hundred Thousand Dollars and Zero Cents ($4,900,000). .Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. City and Consultant agree that all payments due and owing under this Agreement shall be made through Automated Clearing House (ACH) transfers. Consultant provide required documentation. Upon verification of the data provided, the City will be authorized to deposit payments financial institutions. 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 ThisAgreementshallcommenceonMay17, 2026 andcontinuefora()yearterm untilMay16,202withtheoptionforthe City to grant uptotwo (2) one(1)yearextension(s), exercisable by a writingby theCity Managerand theCity Attorney, unlessterminatedearlierin accordance with Section 16, below. 4.INDEPENDENTCONTRACTOR Consultantshall,duringthe entiretermof thisAgreement,beconstruedto bean independent contractor and not an employee of the City. This Agreement is not intended nor shall itbeconstruedto createanemployer-employeerelationship,ajointventurerelationship,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 securitytaxes,unemploymentinsuranceandsimilartaxesrelatingto employeesandshallbe responsible for all applicable withholding taxes. 5.OWNERSHIP OF MATERIALS This Agreementcreatesanon-exclusiveandperpetuallicenseforCitytocopy,use, modify,reuse,or sublicenseanyandallcopyrights,designs,andotherintellectualproperty embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorshipfixedin anytangiblemedium of expression,including but notlimitedto, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or causedtobepreparedbyConsultantConsultant shallrequireallsubcontractorsto agreein writingthat Cityis grantedanon-exclusiveand perpetuallicenseforanyDocuments& DatathesubcontractorpreparesunderthisAgreement. Page 2of 7 Consultantrepresentsandwarrantsthat Consultanthasthelegalrightto licenseanyandall Documents & Data. Consultantmakes no such representation and warranty in regard to Documents & Data which were provided to Consultantby 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 INSURANCE Insurancerequirements are attached hereto as Exhibit. INDEMNIFICATION Consultant agrees todefend, and shall indemnify and hold harmless theCity, its officers, agents, employees, consultants, 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 Consultantor its Consultants, subcontractors, agents, employees, or other persons acting on their 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 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 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 Consultantfurther 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 Consultant Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 8.INTELLECTUAL PROPERTY INDEMNIFICATION Consultantshall defend, indemnify and hold harmless the City, its officers, agents, ntained in the work product or documents provided by Consultantto the City pursuant to this Agreement. 9.RECORDS Consultantshall keep records and invoices in connection with the work to be performed under this Agreement. Consultantshall maintain complete and accurate records with respect to Page 3of 7 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 Consultantunder this Agreement. All such records and invoices shall be clearly identifiable. Consultantshall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documentscreated pursuant to this Agreement during regular business hours. Consultantshall 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 Consultantunder this Agreement. 10.CONFIDENTIALITY If Consultantreceives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultantagrees that it shall not use or disclose such 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 hall include 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 Consultantdisclosed 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 (e) is independently developed by the Consultantwithout reference to information disclosed by the City. 11.CONFLICT OF INTEREST CLAUSE Consultantcovenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services. 12.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:City Clerk City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax:714-647-6956 Executive Director Planning and BuildingAgency Page 4of 7 Cityof Santa Ana 20 Civic CenterPlaza(M-21) P.O. Box 1988 Santa Ana, CA 92702 ToConsultant:\[insert company name\] Attn: \[insert name and title\] \[insertaddress\] \[insert City, State, Zip Code\] \[insert email or fax #\] 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. 13.EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultantregarding the subject matter herein, 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 Consultant.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 Consultantor 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 are not embodied herein. 14.ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultantmay 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 shall be construed to limit this Agreement performed by City personnel or by other consultants retained by City. 15.WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or Page 5of 7 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 ofany 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.TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultantshall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultantprior to receipt of such notice of termination, subject to the following conditions: a.As a condition of such payment, the Executive Director may require Consultantto deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultantconsents 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. 17.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. 18.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. 19.PROFESSIONAL LICENSES Consultantshall, 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 Page 6of 7 Santa Ana and all other governmental agencies. Consultantshall 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 Agreement. 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 e event that such authority or power is not, in fact, 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. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST:CITY OF SANTA ANA _________________________________________________ JENNIFER L. HALLALVARO NUÑEZ City ClerkCity Manager APPROVED AS TO FORMCONSULTANT SONIA R. CARVALHO City Attorney By: _________________________________________________ MELISSA M.CROSTHWAITEBy: Senior AssistantCity AttorneyTitle: RECOMMENDED FOR APPROVAL ____________________________ ALI PEZESHKPOUR Executive Director Planning and BuildingAgency Page 7of 7 EXHIBIT 2 EXHIBIT A SCOPE OF SERVICES AND FEES General Description The Planning and Building Agency’s Building Safety Division of the City of Santa Ana foresees the submittal of many construction projects in the near future resulting from the adoption of new specific plans, sustained economic and market interest in the community, and the pending Zoning Code Update. Therefore, the City is seeking the services of professional consultants to support the efforts of City staff in the area of Building Safety Services that include Plan Check Services, Inspection Services, and Technical Services. Scope of Services A.Plan Review Services Consultant shall perform the following services for each assigned building plan review. 1.Detailed review of the mechanical, plumbing, electrical and building (architectural and structural) plans. Review supporting documents for industrial, commercial, residential and public buildings and determine compliance with applicable building standards as related to existing and proposed buildings. 2.Review the plans for compliance with California state-mandated regulations for energy conservation, disabled access, green building standards and City adopted ordinances. 3.Review the plans for compliance with Federal Flood Plain regulations for projects in the special flood hazard area designated on the flood insurance rate map (FIRM) as Flood Zone A or AE. 4.Recheck and approval of final plans and supporting documents to be provided without additional charge for recheck. 5.Submittal of approved plans and all supporting documents to the City of Santa Ana. 6.Provide all necessary liaison and meetings with applicants via phone, e-mail or in person to expedite the review process and consult on complex code issues with City of Santa Ana Building Official. 7. to City and the applicant. 8.Structural portion of the plans to be reviewed by California Licensed Civil or Structural Professional Engineer. 9.Plan reviewer to be consistent, accurate, available, and responsive to the City and the applicant via phone, e-mail, and meetings. Also, the plan reviewer shall be available to the Building Official and his staff to help answer Code questions arising from the review. Plan reviewer shall provide assistance in evaluation of alternate materials, design and methods of construction proposed by applicant. 10.Plan reviewer shall be available, at no expense to the City of Santa Ana, to meet at the City office with owners, architects, engineers and contractors to discuss the Plan Check issues. 11.Plan reviewer to verify that the job description, scope of work, square footages, occupancy classifications and type of construction, on the permit application agrees with the plans and specifications. Plan reviewer will also verify the building valuation based upon valuation costs used by the City of Santa Ana. 12.Initial Plan review to be complete within ten (10) working days and recheck within five (5) working days. 13.Consultant fee for review services to be 60% of the City of Santa Ana Standard Plan Check Fee, excluding any accelerated plan check fee. 14.Hourly projects including revisions, deferred submittals, trusses, stairs, curtain walls, mechanical, plumbing and electrical plan reviews will be checked on an hourly rate of $120.00/hour when performed by a Certified Plans Examiner and a rate of $150.00/hour when performed by a registered Senior Plan Check Engineer. 15.Expedited Plan Review will be provided when requested for an individual project and will be an additional 30% of the plan review fees above. For Expedited Plan Review, the initial plan review to be complete within five (5) to seven (7) working days and recheck within five (5) working days. 16.Fee(s) are charged in conformance with the City's Miscellaneous Fee Schedule. 17.Provide in-house temporary staff as approved by the Executive Director of the Planning and Building Agency. 18.Courier service for pickup and delivery of plans to the City shall be provided at no additional cost. 19.Plan review shall be performed electronically using the City’s electronic plan review system when requested by the City. No additional fees shall be charged for electronic plan review. B.Building Inspection Services Consultant shall perform the following services. 1.Building inspection services for industrial, commercial, residential and public buildings to determine compliance with approved plans and documents as well as applicable building standards as related to existing and proposed buildings. 2.Building inspection services for compliance with California state-mandated regulations for energy conservation, disabled access, green building standards and City adopted ordinances. 3.Building inspection services for compliance with Federal Flood Plain regulations for projects in the special flood hazard area designated on the flood insurance rate map (FIRM) as Flood Zone A or AE. 4.Building inspectors shall be certified to perform inspections for compliance with applicable California Building Standards Codes. 5.Building inspectors shall complete all necessary City forms and documents, enter results, and follow the City’s workflow when an inspection is conducted. Inspectors will provide accurate correction notices and inspection records. 6.Building inspections shall be charged at an hourly rate of $100.00/hour when performed by a Certified Building Inspector and a rate of $125.00/hour when performed by a Senior Certified Building Inspector. Mileage will not be reimbursed by the City. 7.Provide accelerated building inspection services on an as-needed basis. 8.Provide in-house temporary staff. C.Technical Services Consultant shall perform the following services. 1.Technical services shall be provided as-needed at hourly rates listed in Sections A and B above, based on the qualifications of the consultant that will provide the service. Technical services shall include training and technical studies with reporting with rates ranging from $80.00/hour to $150.00/hour, and document management system administration services with rates ranging from $25.00/hour to $45.00/hour based on experience. 2.Permit technical services shall be charged at an hourly rate of $70.00/hour when performed by non-certified permit technicians and $85.00/hour when performed by Certified Permit Technician. 3.Structural Peer Review services shall be performed by a California registered Structural Engineer who has expertise in the current edition of ASCE 41 and performance-based structural design methodologies. Peer reviewer shall have technical expertise in the evaluation and retrofit of buildings similar to the one being reviewed and shall be familiar with the technical issues and regulations governing the work to be reviewed. Consultant shall provide a lump sum fixed fee for the structural peer review services based on the scope and complexities of the project. This fee shall be subject to the approval of the project applicant as a pass-through fee and shall be paid by the project applicant in conformance with the City's Miscellaneous Fee Schedule. EXHIBIT INSURANCE REQUIREMENTS Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require any subcontractors to obtain and maintain insurance as described below for the entire Term of this Agreement against claims for injuries to persons or damage to property which may arise from or in connection with services, products and materials supplied to City. Total cost of such insurance shall be borne by Consultant. MINIMUM SCOPE AND LIMIT OF INSURANCE 1.Commercial General Liability (CGL): Insurance Services Office Form CG 00 property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000per occurrence and $4,000,000 aggregate. Required policy limits can be met with primary and umbrella/excess insurance policies. 2.Automobile Liability (AL): Insurance Services Office Form CA 00 01 covering Code 1 (any auto), with limits no less than $1,000,000 combined single limits. In the event Consultant does not maintain commercial automobile liability insurance, City will accept evidence of personal automobile insurance, provided that such policy is endorsed for business use and provides coverage with a minimum limit of $1,000,000. Required policy limits can be met with primary and umbrella/excess insurance policies. 3.: as required by the State of California, with Statutory $1,000,000per accident, policy or employee, for bodily injury or disease. Coverage is not required if Consultant has no employees and signs request to waive such insurance. 4.Professional Liability (PL):with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 aggregate. If Consultant maintains broader coverage and/or higher limits than the minimum requirements for each line of coverage shown above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City. Other Insurance Provisions The above required insurance policies are to contain or be endorsed to contain the following provisions: 1.City, its City Council, its officers, officials, employees, agents, and volunteers are to be ct to any liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, equipment, and personnel furnished in connection with such work or operations. 2.all rights of subrogation against City, its City Council, its officers, officials, employees, agents, and volunteers for losses performed by Consultant under this Agreement. 3. and any insurance maintained by City, its City Council, its officers, officials, employees, agents, or volunteers shall not contribute with it. 4. A severability of interest provision must apply for all the additional insureds, ensuring 5. Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non-renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non-renewal due to non-payment of premium. 6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: (Name of Department Staff Responsible for Agreement), Address of Department Responsible for Agreement, M-XX, Santa Ana, CA 92701. The name and location of project must be included in the Description of Operations section of each certificate. Self-Insured Retentions Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the State of California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to City. Verification of Coverage Consultant shall furnish City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements before work begins. However, failure to obtain the required City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Special Risks or Circumstances City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Police Department www.santa-ana.org/pd Item # 15 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Forensic Imaging System for the Santa Ana Police Department AGENDA TITLE Purchase Order to Foster + Freeman for DISCOVER Imaging System with Included Crime-lite AUTO Kit and Accessories (Specification No. 26-038) (Non-General Fund) RECOMMENDED ACTION Authorize a Purchase Order to Foster + Freeman for DISCOVER imaging system with included Crime-lite AUTO Kit and accessories in an amount not to exceed $99,177. GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION In November 2004, California voters passed Proposition 69, the DNA Fingerprint, Unsolved Crime, and Innocence Protection Act of 2004, to expand and modify state law regarding the collection and use of criminal offender DNA samples and palm print impressions. Proposition 69 established a guaranteed funding source for costs associated with the collection, verification, and/or management of DNA evidence. On November 12, 2024, the County of Orange Prop 69 Committee approved the allocation of 2024 DNA Identification Fund revenues and estimated funding totaling $747,000. The Committee voted to allocate $742,472 county-wide in one-time funding requests to enhance the DNA program for local law enforcing entities and County Departments. The Santa Ana Police Department (SAPD) was awarded $100,000 to purchase a complete DISCOVER Imaging System for the Department’s Forensic Services Division. The County Board of Supervisors approved the Prop 69 Committee’s recommendations at their January 28, 2025 meeting. The DISCOVER system is a modular forensic imaging docking station designed to operate with the Crime-lite AUTO system previously acquired by SAPD. It enhances laboratory capabilities for latent fingerprint and DNA collection by improving the detection, imaging, and collection of print impression, trace, and DNA evidence. Forensic Imaging System for the Santa Ana Police Department April 7, 2026 Page 2 The DISCOVER imaging system is a sophisticated forensic imaging and analysis modular docking system designed to assist with the examination of various types of evidence, particularly trace evidence. Utilizing an embedded Crime-lite AUTO, it specializes in the detection, documentation, and analysis of fingerprints, trace evidence, and biological samples. The enhanced detection and visualization of latent fingerprints or biological materials facilitated by the DISCOVER system supports improved identification of potential DNA sources. These advanced capabilities help ensure possible DNA, print impression, and trace evidence can be best preserved, documented, and collected by forensic staff. The DISCOVER forensic imaging workstation combines specialty photography and light-based detection methods to facilitate the development and collection of vital print, DNA, and trace evidence. Use of this system would allow SAPD Forensic Specialists to examine possible evidence with fluorescence, infrared, and reflected longwave UV imaging, with included digital enhancement and image validation and audit trail capabilities. This innovative technology would allow the SAPD to leverage our current resources in a significantly more efficient process by reducing the time required for staff to process items and consolidating technical functions into one system, as opposed to using multiple varied computer and written log programs, as is the current workflow. Santa Ana Municipal Code, Section 2-807(a, e), authorizes the City to make non-bid purchases of services, supplies, materials, and equipment whenever it shall appear that there is only one reasonably available source. The DISCOVER imaging system, Crime- lite AUTO, and the accessories are manufactured and sold exclusively from Foster + Freeman. In 2023, the Department purchased three Crime-Lite AUTO camera kits from the same manufacturer with the Proposition 69 funds awarded by the County. Purchasing the DISCOVER workstation from the same manufacturer to work in conjunction with existing equipment will enhance the Forensic Unit’s imaging abilities in the lab. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding is available in the FY 25-26 budget in the following account: Fiscal Accounting Unit Fund Accounting Unit – Amount Year– Account No.DescriptionAccount No. Description Police Police Special FY 25-2602414410-66400Activities & Revenue, Machinery & $99,177 ProgramsEquipment Total$99,177 Forensic Imaging System for the Santa Ana Police Department April 7, 2026 Page 3 EXHIBIT(S) N/A Submitted By: Robert Rodriguez, Police Chief Approved By: Alvaro Nuñez, City Manager Police Department www.santa-ana.org/pd Item # 16 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Enterprise Fleet Management Lease Amendment AGENDA TITLE Amendment to Supplemental Agreement with Enterprise Fleet Management, Inc. for Leased Vehicles RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the supplemental agreement with Enterprise Fleet Management, Inc. to exercise a one-year extension from April 19, 2026 through April 18, 2027 for leased vehicles and maintenance management services for an annual amount not to exceed $520,536 (Agreement No. A-2026-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION On January 16, 2024, the City Council approved seven agreements with Enterprise FM Trust and Enterprise Fleet Management, Inc. (“Enterprise”) for leased vehicles and maintenance agreements for both the Santa Ana Police Department and the Planning and Building Agency. These agreements included the following: Master Walkaway Lease Agreement; Master Equity Lease Agreement; Maintenance Management and Fleet Rental Agreement; Supplemental Agreement between City and Enterprise; Indemnity Agreement for Master Walkaway Lease Agreement; Indemnity Agreement for Master Equity Lease Agreement; and Amendment to Maintenance Management and Fleet Rental Agreement. The City Council’s approval of the agreement covering the period of January 1, 2024 through April 18, 2026 was based on Santa Ana Ordinance No. NS-3041, which authorized the City to purchase against contracts awarded by any public agency employing a competitive bid process. Sourcewell, a cooperative government purchasing agency, awarded a contract to Enterprise Fleet Management, Inc. (Contract No. Enterprise Fleet Management Lease Amendment April 7, 2026 Page 2 030122-EFM) for procurement of fleet management services, open-end leases, maintenance management programs, etc., as a result of open, competitive bidding on behalf of its members, which includes government agencies. Utilizing Sourcewell’s contract enabled the City to enter into new agreements with Enterprise and obtain the best pricing and allowed both departments to continue with the existing lease vehicles that were currently under contract. The Planning and Building Agency was allocated one-time funding to purchase new vehicles and have since returned all lease vehicles back to Enterprise during calendar year 2025. Currently, the Police Department leases 53 vehicles. Sourcewell’s contract with Enterprise has been extended to April 18, 2027 by mutual consent. Staff recommends amending the supplemental agreement to exercise the same one-year extension for an annual amount not to exceed $520,536. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding is available in the FY 25-26 budget in the following accounts and funding for FY 26-27 will be included in the proposed budget for City Council consideration: Accounting Unit – Fiscal Accounting Unit – Fund Account No. Amount YearAccount No.Description Description Police Department Various, Contract FY 25-2601114XXX-62300General Fund$116,635 Services- Professional Police Enforcement Services, Contract FY 25-2601214010-62300Cannabis Fund$ 13,500 Services- Professional Police Department Various, Contract FY 26-2701114XXX-62300General Fund$349,901 Services- Professional Police Enforcement Services, Contract FY 26-2701214010-62300Cannabis Fund$ 40,500 Services- Professional Total$520,536 Enterprise Fleet Management Lease Amendment April 7, 2026 Page 3 EXHIBIT(S) 1.Amendment to Supplemental Agreement Submitted By: Robert Rodriguez, Police Chief Approved By: Alvaro Nuñez, City Manager EXHIBIT 1 Public Works Agency www.santa-ana.org/pw Item # 17 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Purchase Order Contracts for Equipment Rentals and Related Products and Services AGENDA TITLE Aggregate Purchase Order Contracts to Herc Rentals, Inc., Sunbelt Rentals, and United Rentals for Equipment Rentals and Related Products and Services (Specification No. 26-014) (General Fund & Non-General Fund) RECOMMENDED ACTION Award aggregate purchase order contracts to Herc Rentals, Inc., Sunbelt Rentals, and United Rentals for equipment rentals and related products and services on an as- needed basis, in a total aggregate amount not to exceed $720,000, for a term beginning April 7, 2026 and expiring October 31, 2027. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The Public Works Agency (PWA) oversees and maintains the daily operations of the City’s water and sanitary sewer systems and their associated facilities, and oversees the maintenance and improvements of all City parks and building facilities. PWA utilizes equipment rental services to provide an efficient means of acquiring special equipment on an as-needed temporary basis to support specific operations and special projects. Additionally, the Santa Ana Police Department use equipment rental services to assist the Police Department’s Cannabis Enforcement team for various cases, as needed. Santa Ana Municipal Code, Section 2-807(d), authorizes the City to purchase against contracts from any public agency utilizing a competitive bid process. The City of Charlotte contract no. 2019000318 with Herc Rentals Inc. for equipment rentals and related products and services (Exhibit 1), the OMNIA Partners contract no. R241502 with Sunbelt Rentals for equipment and tool rental services (Exhibit 2), and the Sourcewell contract no. 040924-URI with United Rentals for rental equipment (Exhibit 3) were all awarded as a result of open, competitive bidding, and meet the City’s requirements. Purchase Order Contracts for Equipment Rentals and Related Products and Services April 7, 2026 Page 2 The existing aggregate purchase order contracts with Herc Rentals, Inc., Sunbelt Rentals, and United Rentals were established for a three-year term and set to expire on April 19, 2026, with a total amount not to exceed $568,000. The new proposed aggregate purchase order contracts includes increases to support a growing number of in-house capital and maintenance projects that are currently planned and underway. Improvements at the Garthe Pump Station are currently in construction, and upon completion, staff will proceed with additional in-house projects. Over the past year, PWA has also expanded its staffing levels, increasing operational capacity to bring construction in-house. While new vehicles and equipment are procured, project delivery timelines necessitate continued reliance on rental equipment in the interim. These contracts provide access to a range of equipment, from daily-use service vehicles to specialized machinery not typically owned by the City but required for specific projects. Maintaining access to all three vendors ensures greater equipment availability, operational flexibility, and efficient use of resources. All three vendors, Herc Rentals, Inc., Sunbelt Rentals, and United Rentals, maintain a comprehensive local inventory of rental equipment that meet the needs of each agency. Staff recommends awarding aggregate purchase order contracts to Herc Rentals, Inc., Sunbelt Rentals, and United Rentals for equipment rentals and related products and services. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and available in the following accounts for FY 2025-26. Funding for subsequent fiscal years will be included in the proposed budgets for City Council consideration. Fiscal Accounting Fund Account DescriptionAmount YearUnit – Description Account # 06017640-WaterWater Utility Water 63001Production & Supply – $47,368 Miscellaneous Operating Expense FY25-26 06017648-WaterWater Resources (Apr – 63001Construction – $39,474 Jun)Miscellaneous Operating Expenses 08517138-City Yard City Yard Operations – 62300OperationsContract Services-$4,737 Professional Purchase Order Contracts for Equipment Rentals and Related Products and Services April 7, 2026 Page 3 01117651-GeneralPark Maintenance Service 62320Enhancement – $7,895 Maintenance & Repair Building & Ground 01117652-GeneralPWA – Park Service 62320Enhancement – $7,895 Maintenance & Repair Buildings & Ground 07417655-Civic Center Civic Center Maintenance 62320Maintenance– Maintenance & Repair $1,579 Buildings & Ground 06717650-Regional PWA – SARTC Operations 62320Transportation – Maintenance and Repair $1,579 CenterBuildings & Ground 07317100-Building Building Maintenance – 62300MaintenanceContract Services-$1,579 Professional 07517100-Fleet Equipment Maintenance – 62300MaintenanceGarage Operation – $1,579 Contract Services- Professional 06017640-WaterWater Utility Water 63001Production & Supply – $189,474 Miscellaneous Operating Expense 06017648-WaterWater Resources 63001Construction – $157,895 Miscellaneous Operating Expenses 08517138-City Yard City Yard Operations – 62300OperationsContract Services-$18,947 Professional FY26-27 01117651-GeneralPark Maintenance Service 62320Enhancement – $31,579 Maintenance & Repair Building & Ground 01117652-GeneralPWA – Park Service 62320Enhancement – $31,579 Maintenance & Repair Buildings & Ground 07417655-Civic Center Civic Center Maintenance 62320Maintenance– Maintenance & Repair $6,316 Buildings & Ground Purchase Order Contracts for Equipment Rentals and Related Products and Services April 7, 2026 Page 4 06717650-Regional PWA – SARTC Operations 62320Transportation – Maintenance and Repair $6,316 CenterBuildings & Ground 07317100-Building Building Maintenance – 62300MaintenanceContract Services-$6,316 Professional 07517100-Fleet Equipment Maintenance – 62300MaintenanceGarage Operation – $6,316 Contract Services- Professional 06017640-WaterWater Utility Water 63001Production & Supply – $63,158 Miscellaneous Operating Expense 06017648-WaterWater Resources 63001Construction – $52,631 Miscellaneous Operating Expenses 08517138-City Yard City Yard Operations – 62300OperationsContract Services-$6,316 Professional 01117651-GeneralPark Maintenance Service 62320Enhancement – $10,526 Maintenance & Repair Building & Ground FY27-28 01117652-GeneralPWA – Park Service (Jun 27 – 62320Enhancement – Oct 27$10,526 Maintenance & Repair Buildings & Ground 07417655-Civic Center Civic Center Maintenance 62320Maintenance– Maintenance & Repair $2,105 Buildings & Ground 06717650-Regional PWA – SARTC Operations 62320Transportation – Maintenance and Repair $2,105 CenterBuildings & Ground 07317100-Building Building Maintenance – 62300MaintenanceContract Services-$2,105 Professional 07517100-Fleet Equipment Maintenance – 62300MaintenanceGarage Operation – $2,105 Contract Services- Professional TOTAL:$720,000 Purchase Order Contracts for Equipment Rentals and Related Products and Services April 7, 2026 Page 5 EXHIBIT(S) 1.City of Charlotte Contract No. 2019000318 2.OMNIA Partners Contract No. R241502 3.Sourcewell Conract No. 040924-URI Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager Region 4 Education Service Center R241502 Contract # for Equipment and Tool Rental Services with Sunbelt Rentals, Inc. Nbz2-3136 The following documents comprise the executed contract effective: Nbz 2-3136 Vendor Contract and Signature Form Supplier’s Response to the RFP Request for Proposal and Any Addenda, incorporated by reference APPENDIX A- (Region 4 ESC approved ) CONTRACT This Contract (“Contract”) is made as of May 1, 2025, by and between Sunbelt Rentals, Inc. (“Contractor”) and Region 4 Education Service Center (“Region 4 ESC”) for the purchase of Equipment and Tool Rental Services (“the products and services”). RECITALS WHEREAS, Region 4 ESC issued Request for Proposals Number 24-15 for Equipment and Tool Rental Services (“RFP”), to which Contractor provided a response (“Proposal”); and WHEREAS, Region 4 ESC selected Contractor’s Proposal and wishes to engage Contractor in providing the services/materials described in the RFP and Proposal; WHEREAS, both parties agree and understand the following pages will constitute the Contract between the Contractor and Region 4 ESC, having its principal place of business at 7145 West Tidwell Road, Houston, TX 77092. WHEREAS, Contractor included, in writing, any required exceptions or deviations from these terms, conditions, and specifications; and it is further understood that, if agreed to by Region 4 ESC, said exceptions or deviations are incorporated into the Contract. WHEREAS, this Contract consists of the provisions set forth below, including provisions of all attachments referenced herein. In the event of a conflict between the provisions set forth below and those contained in any attachment, the provisions set forth below shall control. WHEREAS, the Contract will provide that any state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit (“Public Agencies”) may purchase products and services at prices indicated in the Contract upon the Public Agency’s registration with OMNIA Partners. 1)Term of agreement. The initial term of the Contract is for a period of three (3) years unless terminated, canceled, or extended as otherwise provided herein. Region 4 ESC shall have the right in its sole discretion to renew the Contract for additional terms up to two (2) years after the end of the initial term or for a lesser period of time as determined by Region 4 ESC by providing written notice to the Contractor of Region 4 ESC’s intent to renew thirty (30) days prior to the expiration of the original term. Contractor acknowledges and understands Region 4 ESC is under no obligation whatsoever to extend the term of this Contract. In the event the proposal term, including renewals, ends before another proposal is executed, proposal prices and discounts may be extended on a month-to-month basis by mutual consent. Extensions are limited to the lesser of: a) six (6) additional monthly terms, or b) the time which is required to complete a new solicitation for the goods and services provided for in this solicitation. Notwithstanding the foregoing paragraph, the term of the Contract, including any extension of the original term, shall be further extended until the expiration of any Purchase Order issued within the Contract term for a period of up to one year beyond the Contract term. 2) Scope: Contractor shall perform all duties, responsibilities and obligations, set forth in this agreement, and described in the RFP, incorporated herein by reference as though fully set forth herein. 3) Form of Contract. The form of Contract shall consist of this Contract, any Purchase Order (or other similar document agreed to in writing by Region 4), Region 4’s Standard Terms and Conditions for Procurement Solicitations to the extent applicable to bare rental of equipment, the RFP and any Addenda (including Offeror’s standard rental terms for government entities in Addendum A), Region 4’s Electronic Bid Certifications, the Offeror’s Best and Final Offer(s), as accepted by Region 4, and the Offeror’s Proposal, as accepted by Region 4, each instrument incorporated herein by reference. 4) Order of Precedence. In the event of a conflict in the provisions of the Contract as accepted by Region 4 ESC, the following order of precedence shall prevail: i. This Contract, ii. Any Purchase Order (or other such similar document agreed to in writing by Region 4), iii. Region 4’s applicable Standard Terms and Conditions for Procurement Solicitations, iv. RFP and any Addenda, v. Region 4’s Electronic Bid Certifications, vi. Offeror’s Best and Final Offer, as accepted by Region 4, and vii. Offeror’s proposal, as accepted by Region 4. 5) Commencement of Work. The Contractor is cautioned not to commence any billable work or provide any material or service under this Contract until Contractor receives a purchase order for such work or is otherwise directed to do so in writing by Region 4 ESC. 6) Entire Agreement (Parol evidence). The Contract, as specified above, represents the final written expression of agreement. All agreements are contained herein and no other agreements or representations that materially alter it are acceptable. 7) Assignment of Contract. No assignment of Contract may be made without the prior written approval of Region 4 ESC. Contractor is required to notify Region 4 ESC when any material change in operations is made (i.e., bankruptcy, change of ownership, merger, etc.). 8) Novation. If Contractor sells or transfers all assets or the entire portion of the assets used to perform this Contract, a successor in interest must guarantee to perform all obligations under this Contract. Region 4 ESC reserves the right to accept or reject any new party. A change of name agreement will not change the contractual obligations of Contractor. 9) Contract Alterations. No alterations to the terms of this Contract shall be valid or binding unless authorized and signed by Region 4 ESC. 10) Adding Authorized Distributors/Dealers. Contractor is prohibited from authorizing additional distributors or dealers, other than those identified at the time of submitting their proposal, to sell under the Contract without notification and prior written approval from Region 4 ESC. Contractor must notify Region 4 ESC each time it wishes to add an authorized distributor or dealer. Purchase orders and payment can only be made to the Contractor unless otherwise approved by Region 4 ESC. Pricing provided to members by added distributors or dealers must also be less than or equal to the Contractor’s pricing. 11) TERMINATION OF CONTRACT a) Cancellation for Non-Performance or Contractor Deficiency. Region 4 ESC may terminate the Contract if purchase volume is determined to be low volume in any 12-month period. Region 4 ESC reserves the right to cancel the whole or any part of this Contract due to failure by Contractor to carry out any obligation, term or condition of the contract. Region 4 ESC may issue a written deficiency notice to Contractor for acting or failing to act in any of the following: i. Providing material that does not meet the specifications of the Contract; ii. Providing work or material was not awarded under the Contract; iii. Failing to adequately perform the services set forth in the scope of work and specifications; iv. Failing to complete required work or furnish required materials within a reasonable amount of time; v. Failing to make progress in performance of the Contract or giving Region 4 ESC reason to believe Contractor will not or cannot perform the requirements of the Contract; or vi. Performing work or providing services under the Contract prior to receiving an authorized purchase order. Upon receipt of a written deficiency notice, Contractor shall have ten (10) days to provide a satisfactory response to Region 4 ESC. Failure to adequately address all issues of concern may result in Contract cancellation. Upon cancellation under this paragraph, all goods, materials, work, documents, data and reports prepared by Contractor under the Contract shall immediately become the property of Region 4 ESC. b) Termination for Cause. Conditions of cancellation are addressed in the General Terms and Conditions set forth by Region 4 ESC in the section titled “NON-PERFORMANCE /TERMINATION OF CONTRACT”. c) Delivery/Service Failures. Failure to deliver goods or services within the time specified, or within a reasonable time period as interpreted by the purchasing agent or failure to make replacements or corrections of rejected articles/services when so requested shall constitute grounds for the Contract to be terminated. In the event Region 4 ESC must purchase in an open market, Contractor agrees to reimburse Region 4 ESC, within a reasonable time period, for all expenses incurred. d) Force Majeure. Conditions of Force Majeure are addressed in the General Terms and Conditions set forth by Region 4 ESC in the section titled “FORCE MAJEURE”. e) Standard Cancellation for Convenience. Region 4 ESC may cancel this Contract in whole or in part for convenience and without cause by providing written notice. Such cancellation will take effect 30 calendar days after Region 4 sends the notice of cancellation. After the 30th calendar day all work will cease following completion of final purchase order, provided that when Region 4 may in its sole discretion direct Contractor to cease performance of the contract at any time during the 30 day notice period, in which case Contractor shall discontinue any further charges to Region 4. 12) Licenses. Maintenance of licenses are addressed in the General Terms and Conditions set forth by Region 4 ESC in the section titled “LICENSES AND PERMITS; PERFORMANCE”. 13) Survival Clause. Conditions of survival are addressed in the General Terms and Conditions set forth by Region 4 ESC in the section titled “SURVIVAL”. 14) Delivery. Conforming products shall be shipped within 7 days of receipt of Purchase Order. If delivery is not or cannot be made within this time period, the Contractor must receive authorization for the delayed delivery. The order may be canceled by Region 4 if the estimated shipping time is not acceptable. All deliveries shall be freight prepaid, F.O.B. Destination and shall be included in all pricing offered unless otherwise clearly stated in writing. 15) Inspection & Acceptance. If defective or incorrect material is delivered, Region 4 ESC may make the determination to return the material to the Contractor at no cost to Region 4 ESC. The Contractor agrees to pay all shipping costs for the return shipment. Contractor shall be responsible for arranging the return of the defective or incorrect material. 16) Payments. Payment shall be made after satisfactory performance, in accordance with all provisions thereof, and upon receipt of a properly completed invoice. 17) Price Adjustments. Proposal prices must remain firm for at least one (1) calendar year from the proposal opening date, unless a deviation from this standard and purpose for the deviation is noted in the Vendor’s response. Such deviations are subject to Region 4 ESC approval.. Price increases requested during the term of the contract may be granted at the sole discretion of Region 4 ESC. Should it become necessary or proper during the term of this Contract to make any change in design or any alterations that will increase price, Region 4 ESC must be notified immediately. Price increases must be approved by Region 4 ESC and no payment for additional materials or services, beyond the amount stipulated in the Contract shall be paid without prior approval. All price increases must be supported by manufacturer documentation, or a formal cost justification letter. Contractor must honor previous prices for thirty (30) days after approval and written notification from Region 4 ESC. It is the Contractor’s responsibility to keep all pricing up to date and on file with Region 4 ESC. All price changes must be provided to Region 4 ESC, using the same format as was provided and accepted in the Contractor’s proposal. Price reductions may be offered at any time during Contract. Special, time-limited reductions are permissible under the following conditions: 1) reduction is available to all users equally; 2) reduction is for a specific period, normally not less than thirty (30) days; and 3) original price is not exceeded after the time-limit. Contractor shall offer Region 4 ESC any published price reduction during the Contract term. 18) Audit Rights. Audit rights are addressed in the General Terms and Conditions set forth by Region 4 ESC in the section titled “RIGHT TO AUDIT”. 19) Discontinued Products. If a product or model is discontinued by the manufacturer, Contractor may substitute a new product or model if the replacement product meets or exceeds the specifications and performance of the discontinued model and if the discount is the same or greater than the discontinued model. 20) New Products/Services. New products and/or services that meet the scope of work may be added to the Contract. Pricing shall be equivalent to the percentage discount for other products. Contractor may replace or add product lines if the line is replacing or supplementing products, is equal or superior to the original products, is discounted similarly or greater than the original discount, and if the products meet the requirements of the Contract. No products and/or services may be added to avoid competitive procurement requirements. Region 4 ESC may require additions to be submitted with documentation from Members demonstrating an interest in, or a potential requirement for, the new product or service. Region 4 ESC may reject any additions without cause. 21) Options. Optional equipment for products under Contract may be added to the Contract at the time they become available under the following conditions: 1) the option is priced at a discount similar to other options; 2) the option is an enhancement to the unit that improves performance or reliability. 22) Warranty Conditions. All supplies, equipment and services shall include manufacturer's minimum standard warranty and one (1) year labor warranty unless otherwise agreed to in writing. Longer warranty periods and other specifications may be required if indicated herein or through supplemental terms by Region 4. The rental equipment provided will be warranted for the duration of the rental. 23) Site Cleanup. Contractor shall clean up and remove all debris and rubbish resulting from their work as required or directed. Upon completion of the work, the premises shall be left in good repair and an orderly, neat, clean, safe and unobstructed condition. 24) Site Preparation. Contractor shall not begin a project for which the site has not been prepared, unless Contractor does the preparation work at no cost, or until Region 4 ESC includes the cost of site preparation in a purchase order. Site preparation includes, but is not limited to moving furniture, installing wiring for networks or power, and similar pre-installation requirements. 25) Registered Sex Offender Restrictions. For work to be performed at schools, Contractor agrees no employee or employee of a subcontractor who has been adjudicated to be a registered sex offender will perform work at any time when students are or are reasonably expected to be present. Contractor agrees a violation of this condition shall be considered a material breach and may result in the cancellation of the purchase order at Region 4 ESC’s discretion. Contractor must identify any additional costs associated with compliance of this term. If no costs are specified, compliance with this term will be provided at no additional charge. This requirement is in addition to other provisions contained in this RFP related to criminal history information. 26) Safety measures. Contractor shall take all reasonable precautions for the safety of employees on the worksite and shall erect and properly maintain all necessary safeguards for protection of workers and the public. Contractor shall post warning signs against all hazards created by its operation and work in progress. Proper precautions shall be taken pursuant to state law and standard practices to protect workers, general public and existing structures from injury or damage. 27) Smoking. Persons working under the Contract shall adhere to local smoking policies. Smoking will only be permitted in posted areas or off premises. 28) Stored materials. Upon prior written agreement between the Contractor and Region 4 ESC, payment may be made for materials not incorporated in the work but delivered and suitably stored at the site or some other location, for installation at a later date. An inventory of the stored materials must be provided to Region 4 ESC prior to payment. Such materials must be stored and protected in a secure location and be insured for their full value by the Contractor against loss and damage. Contractor agrees to provide proof of coverage and additionally insured upon request. Additionally, if stored offsite, the materials must also be clearly identified as property of Region 4 ESC and be separated from other materials. Region 4 ESC must be allowed reasonable opportunity to inspect and take inventory of stored materials, on or offsite, as necessary. Until final acceptance by Region 4 ESC, it shall be the Contractor's responsibility to protect all materials and equipment. Contractor warrants and guarantees that title for all work, materials and equipment shall pass to Region 4 ESC upon final acceptance. 29) Funding Out Clause. A Contract for the acquisition, including lease, of real or personal property is a commitment of Region 4 ESC’s current revenue only. Region 4 ESC retains the right to terminate the Contract at the expiration of each budget period during the term of the Contract. 30) INDEMNITY. CONTRACTOR SHALL PROTECT, INDEMNIFY, AND HOLD HARMLESS BOTH REGION 4 ESC AND ITS ADMINISTRATORS, EMPLOYEES AND AGENTS AGAINST ALL CLAIMS, DAMAGES, LOSSES AND EXPENSES ARISING OUT OF OR RESULTING FROM THE ACTIONS OF THE CONTRACTOR, CONTRACTOR EMPLOYEES OR SUBCONTRACTORS IN THE PREPARATION OF THE SOLICITATION AND THE LATER EXECUTION OF THE CONTRACT. ANY LITIGATION INVOLVING EITHER REGION 4 ESC, ITS ADMINISTRATORS AND EMPLOYEES AND AGENTS WILL BE IN HARRIS COUNTY, TEXAS. 31) Marketing. Contractor agrees to allow Region 4 ESC to use their name and logo within website, marketing materials and advertisement. Any use of Region 4 ESC name and logo or any form of publicity, inclusive of press releases, regarding this Contract by Contractor must have prior approval from Region 4 ESC. 32) Certificates of Insurance. Should the original or addended proposal solicitation identify insurance is required to perform a work, certificates of insurance shall be delivered to the Region 4 ESC prior to commencement of work. The Contractor shall give Region 4 ESC a minimum of ten (10) days’ notice prior to any modifications or cancellation of policies. The Contractor shall require all subcontractors performing any work to maintain coverage as specified. 33) Legal Obligations. It is Contractor’s responsibility to be aware of and comply with all local, state, and federal laws governing the sale of products/services and shall comply with all laws while fulfilling the Contract. Applicable laws and regulation must be followed even if not specifically identified herein. Addendum A- Equipment Rentals Agreement This Addendum A- Equipment Rental Agreement modifies the terms of the Master Agreement to which it is attached and is incorporated into such Agreement. If there is a conflict between language in the Master Agreement and this Addendum A, the Master Agreement controls. Notwithstanding anything to the contrary contained in the Master Agreement, the Parties hereby agree to the following as a summary of applicable terms for a Participating Public Agency. Notwithstanding anything to the contrary, the definition of “Work” is defined in the Supplier’s Quote as Equipment Rental and Labor (Services) and therefore Supplier agrees to indemnify, defend, and hold Participating Public Agency harmless from and against any third-party claims including any and all liabilities, losses, damages, claims, penalties, fines and expenses, including attorney’s fees for any damages to property and/or persons including death (“Claims”) to the proportionate extent arising from Supplier or any of its Suppliers, suppliers, officers, agents, or employees negligent acts or omissions in the performance of this Agreement. Participating Public Agency will (i) give Supplier prompt notice of any such Claim, and (ii) at Supplier’s reasonable request, cooperate with Supplier in the defense and settlement of Claim. Participating Public Agency has care, custody, and control of the Work at all times Supplier does not; therefore, Supplier is not responsible for any third-party claims including any and all Claims to the proportionate extent arising from Participating Public Agency’s or any of its Suppliers, suppliers, officers, agents, or employees negligent acts or omissions in the performance of this Agreement. There shall be no right or authority for any claims to be arbitrated or tried on a class action basis. Neither party shall have any liability in regard to consequential, exemplary, special, incidental or punitive damages, even if it has been advised of the possibility of such damages. Terms Summary: 1. CREDIT APPROVAL. If the Participating Public Agency does not have a current valid account established with Supplier, it must complete Supplier’s credit application and be approved for a credit account. Supplier shall only be obligated to extend credit to those Participating Public Agencies who qualify for credit after completing Supplier’s credit application. Any Participating Public Agency of OMNIA that chooses not to obtain a Supplier credit account or does not qualify for a credit account will not become a Participating Public Agency in the Program. If Participating Public Agency is an existing customer of Supplier, such Participating Public Agency must have no amounts outstanding longer than 60 days. 2. TERMINATION. Either Party may terminate this Agreement without cause by providing at least ninety (90) days’ prior written notice to the other Party. 3. TITLE AND RISK OF LOSS. title will remain at all times with Contractor and risk of loss for the Equipment transfers to Customer upon taking possession of Equipment. Risk of loss transitions back to Contractor when returned to Contractor’s possession. 4. BILLING CYCLE. The rental charged will be determined by the daily, weekly, and 4-week rental rates in combination with the rental period. This calculation will always be billed at the most advantageous rate available to the customer. Ex. If the rental period is 4 days and the daily rental rate is $100 and the weekly rental rate is $250, the customer will be charged the weekly rate of $250 instead of $400 (4 days x $100 per day) because it is the lower of the two amounts. This same logic will work for any combination of rates within a 4-week period as the 4-week rental rate will be the most the customer will be charged for that equipment, using single shift rates. Additionally, a shift rate schedule shall apply for all hour metered machines and shall affect the rental rates accordingly. 5. PERMITTED & PROHIBITED USE: Participating Public Agency agrees that Supplier has no control over the manner in which the Equipment is operated during the Rental Period by Participating Public Agency or any third party that Participating Public Agency implicitly or explicitly permits. Participating Public Agency warrants that: (a) prior to each use, Participating Public Agency has or will inspect the Equipment to confirm that it is in good condition, without defects, includes readable decals and operating and safety instructions and is suitable for Participating Public Agency’s intended use; (b) any apparent agent at the Site Address is authorized to accept delivery of the Equipment (and if Participating Public Agency requests the applicable waiver, Participating Public Agency authorizes Supplier to leave the Equipment at the Site Address without requirement of written receipt); (c) Participating Public Agency shall immediately notify Supplier if the Equipment is lost, damaged, stolen, unsafe, disabled, malfunctioning, levied upon, threatened with seizure, or if any Incident occurs; (d) Participating Public Agency has received from Supplier all information needed or requested regarding the operation of the Equipment; (e) Supplier is not responsible for providing operator or other training unless Participating Public Agency specifically requests in writing and Supplier agrees to provide such training which may be at an additional fee (Participating Public Agency being responsible to obtain all training that Participating Public Agency desires prior to the Equipment’s use); (f) only authorized individuals shall use and operate the Equipment (“authorized individuals” being those who are properly trained to use the Equipment and who are not under the influence of drugs or alcohol or otherwise impaired); (g) the Equipment’s use shall be in a careful manner, in compliance with all operational and safety instructions provided on, in or with the Equipment and all Federal, State and local laws, permits and licenses, including but not limited to, OSHA, as revised; and (h) the Equipment shall be kept in a secure location. Participating Public Agency shall not (a) alter or cover up any decals or insignia on the Equipment or remove any operational or safety instructions; (b) assign its rights under this Agreement; (c) move the Equipment from the Site Address without Supplier’s written consent; or (d) use the Equipment in a negligent, illegal, unauthorized or abusive manner, or in any publication (print, audiovisual or electronic) nor allow the use of the Equipment by any unauthorized individual (Participating Public Agency acknowledging that the Equipment may be dangerous if used improperly or by untrained parties). 6. MAINTENANCE. Participating Public Agency shall perform routine maintenance on the Equipment, including maintenance of fuel and oil levels, and routine visual inspections of grease, filters, cooling system, water, batteries, cutting edges, and cleaning in accordance with the manufacturer’s specifications. Participating Public Agency shall submit a request for a service call a) if upon visual inspection a need for service is required, or b) any other maintenance or repairs are required. Such service may only be performed by Supplier. Supplier has no responsibility during the Rental Period to inspect or perform any maintenance or repairs unless Participating Public Agency requests a service call. If Supplier determines that repairs to the Equipment are required, other than resulting from Ordinary Wear and Tear, Participating Public Agency shall pay the full cost of repairs and rental of the Equipment until the repairs are completed. 7. NO WARRANTIES. Notwithstanding anything contained in the Agreement to the contrary, Supplier provides rental equipment that is neither sold nor integrated into the work, therefore there is no warranty, expressed or implied, as to the rental equipment or to its capabilities, and no warranty of merchantability, other than those detailed in the manufacturer’s specifications. 8. RELEASE AND INDEMNIFICATION. Participating Public Agency has care, custody, and control of the Work at all times Supplier does not; therefore, Supplier is not responsible for any third- party claims including any and all Claims to the proportionate extent arising from Participating Public Agency’s or any of its Suppliers, suppliers, officers, agents, or employees negligent acts or omissions in the performance of this Agreement. There shall be no right or authority for any claims to be arbitrated or tried on a class action basis. Neither party shall have any liability in regard to consequential, exemplary, special, incidental or punitive damages, even if it has been advised of the possibility of such damages. 9. FEES: For Equipment that uses fuel, Participating Public Agency has two options: (a) Pay on Return Option - if Participating Public Agency returns Equipment with less fuel than when received, Participating Public Agency shall pay a refueling charge (calculated by multiplying gallons required to refill tank with fuel to level when received, by the Pay on Return per gallon rate); and (b) Return Full Option – if Participating Public Agency returns the Equipment with at least as much fuel as when it was received (most Supplier Equipment comes with a full tank of fuel, but not all), no fuel charge will be assessed. The cost of Participating Public Agency refueling Equipment itself will generally be lower than the Prepay Fuel Option or the Pay on Return Option; however, these options each allow for the convenience of not refueling. The rental rates forthe Equipment's are for "one shift," being not more than 8 hours per day and 40 hours per week unless otherwise noted. Weekly and 4-week rental rates shall not be prorated. Shift Rates apply to all generators and certain other equipment with hour meters. During a Declared State of Emergency, or a pending or existing disaster or catastrophe, natural (i.e. hurricane, tornado, flood, etc.) all diesel generators and pumps rented will be billed based on a one week minimum Rental Period at triple shift rates. This one week minimum rental at triple shift rates will not affect Equipment then on rent to Participating Public Agency. To promote a clean and sustainable environment, Supplier takes various measures to comply with federal and state environmental regulations, as well as with Supplier's own policies. Supplier also incurs a wide range of environmental related expenses (both direct and indirect). These expenses may include waste disposal, construction maintenance of cleaning facilities, acquisition of more fuel- efficient equipment, labor costs, administration costs, etc. To help defray these and other costs, Supplier charges an environmental fee in connection with certain rentals. The fee is not a tax or governmentally mandated charge. It is not designated for any particular use or placed in an escrow account. Rather, it is a fee that Supplier collects as revenue and uses at its discretion. RENTAL PROTECTION PLAN (“RPP”). Upon execution of Supplier’s Rental Out ticket, Participating Public Agency may choose to either reject or participate in Supplier’s RPP program as detailed https://www.sunbeltrentals.com/customerservice/rpp/. 10. RETURN OF EQUIPMENT: Participating Public Agency must contact Supplier to request pickup of Equipment, retain the Pick Up Number given by Supplier and will be responsible for Equipment until actually retrieved by Supplier. 11. WARRANTY: Notwithstanding anything contained in the Agreement tothe contrary, Supplier provides rental equipment that is neither sold nor integrated into the Work, therefore there is no warranty, expressed or implied, as to the rental equipment or to its capabilities, and no warranty of merchantability, other thanthose detailed in the manufacturer’s specifications. 12. LIMITATION OF SUPPLIER’S LIABILITY: In consideration of the rental of the equipment and services provided, Participating Public Agency agrees that Supplier’s liability under this contract, including any liability arising from Supplier’s or any third party’s comparative, concurrent, contributory, passive or active negligence or that arises as a result of any strict or absolute liability, shall not exceed one million dollars ($1,000,000). Term Sheet Provision DescriptionClause Sunbelt indemnifies for its negligent acts or omissions Indemnity Sunbeltis notresponsible foranyaction or inaction of PPA Neither party shall have any liability in regard to consequential, Consequential Damages exemplary, special, incidental or punitive damages, even if it has been advised of the possibility of such damages. Limitation of Supplier Liability In consideration of the rental of the equipment and services provided, Customer agrees that Sunbelt’s liability under this contract, including any liability arising from Sunbelt’s or any third party’s comparative, concurrent, contributory, passive or active negligence or that arises as a result of any strict or absolute liability, shall not exceed one million dollars($1,000,000). Insurance Sunbelthas insurancetocover their obligations (w/SIR of$5M) PPA is self-insured Confidentiality SuppliermaintainsPPA information confidential What isallowed foruse ofEquipment. See AttachmentA Use ofRental Equipment Supplierto perform allmaintenance, PPA must advise if a need for service Maintenance is noticed Return of Equipment PPAmustcallSunbeltfor pick-up and receive a pick-upnumber thatis timeand datestamped Choice of Law State of PPA Warranty For Equipment rented – repairor replacement of faulty equipment Net 30 Payment Terms 28days BillingCycle DiscountoffBookRate fornon- Day 5% / Week10% /4-week 15% core equipment Single Shift8/40/160 Overtime Shift Rates(fordiesel drivengenerators, pumpsand air compressors): Double Shift Rate = 1.5 X Day / Week / Month Rate 8 - 16 hours per day 40.1 - 80 hours per week 160.1 - 320 hours per month Triple Shift Rate = 2 X Day / Week / Month Rate 16.1+ hours per day 80.1+ hours per week 320.1+ hours per month Overtime charges for engine drive equipment (excluding diesel engine generators, pumps and air compressors) will be calculated as follows: Divide the quoted rate by the hours allowed and multiply by the number of hours used over and above the hours allowed. *During a Declared State of Emergency, or a pending or existing disaster or catastrophe, natural hurricane, tornado, flood, etc.) or otherwise a one week minimum rental period at triple shift rates will apply for all diesel generators and pumps. 1799 Innovation Pt. Fort Mill, SC 29715 Phone: 866-786-2358 Fax: 803-578-6850 24-15 Addendum 1 Sunbelt Rentals Inc Supplier Response Event Information Number:24-15 Addendum 1 Title:Equipment and Tool Rental Services Type:Request for Proposal - Region 4 ESC Issue Date:11/7/2024 Deadline:1/21/2025 02:00 PM (CT) Notes:Oral communications concerning this RFP shall not be binding and shall in no way excuse an Offeror of the obligations set forth in this proposal. Only online proposals will be accepted. Proposals must be submitted via Region 4 ESC's online procurement system: region4esc.ionwave.net. No manual, emailed, or faxed proposals will be accepted. NON-MANDATORY PRE-PROPOSAL CONFERENCE Meeting to be held on Wednesday, November 20, 2024 at 1:00 pm via ZOOM at https://esc4.zoom.us/j/95819080175?from=addon Offerors are strongly encouraged, but not required to participate in a pre-proposal conference with the Procurement Contract Specialist. Contact Information Page 1 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 Address:Finance and Operations ***BID DUE DATE HAS BEEN EXTENDED UNTIL 1/21/2025.*** 7145 West Tidwell Road TX 77092 Email:questions@esc4.net Page 2 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 Sunbelt Rentals Inc Information Address:1799 Innovation Point Fort Mill, SC 29715 Phone:(866) 909-0954 Toll Free:(866) 909-0954 Email:SBR4Gov@sunbeltrentals.com Web Address:www.SunbeltRentals.com By submitting your response, you certify that you are authorized to represent and bind your company. Peggi Sawickcontractteam@sunbeltrentals.com SignatureEmail Submitted at 1/21/2025 11:11:45 AM (CT) Supplier Note Thank you for extending this bid opportunity to Sunbelt Rentals! We are very excited to continue our solid relationship with OMNIA and Region 4. Requested Attachments 24-15 Offer and Contract Offer and Contract Signature Form Signature Form_Sunbelt Rentals.pdf Please complete the Offer and Contract Signature Form, located on the Attachments tab, and upload the completed document here. 24-15 Deviation Form - Sunbelt Deviation Form redline combined.pdf Please complete the Deviation Form, located on the Attachments tab, and upload the completed document here. No response Conflict of Interest Questionnaire If a conflict exists that requires the submission of a Conflict of Interest Questionnaire (CIQ), complete and upload the document here. (REQUIRED ONLY IF A CONFLICT EXISTS, see Attribute titled "CONFLICT OF INTEREST QUESTIONNAIRE" for additional information.) OMNIA Pricing 24-15 Sunbelt Products and Pricing Rentals FINAL.xlsx Each offeror awarded an item under this solicitation may offer their complete product and service offering/a balance of line. Describe the full line of products and services offered by supplier. Sunbelt Rentals Value Add and Value Added Services Command Center.pdf Provide any additional information related to products and services the Offeror proposes to enhance and add value to the Contract. For example, a proposal for furniture may include additional value-added selections such as installation, white glove delivery options, setup/cleaning, classroom design/layout, special orders, etc. (OPTIONAL) Page 3 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 No response Diversity, HUB Certifications If your firm holds a certification from certifying agencies related to M/WBE, DBE, HUB, or other diverse business designations, you may upload the certificate here. (OPTIONAL) OMNIA Partners - Exhibit F OMNIA Partners - Exhibit F Federal Funds Certifications Federal Funds Certifications Form - Sunbelt executed.pdf Please complete the OMNIA Partners - Exhibit F Federal Funds Certifications, located on the Attachments tab, and upload the completed documents here. Exhibit G Sunbelt Executed.pdf OMNIA Partners - Exhibit G New Jersey Business Compliance Please complete the OMNIA Partners - Exhibit G New Jersey Business Compliance forms, located on the Attachments tab, and upload the completed documents here. Exhibit C MICPA EXAMPLE for Additional Agreements Offeror will require Participating Agencies to Region IV ESC - Sunbelt sign. redline.pdf Upload any additional agreements offeror will require Participating Agencies here. 2025 W9 SBR INC.pdf W-9 Upload Interested offerors must upload an updated Form W-9 prior to submitting a proposal. Response Attachments Sunbelt Rentals Key Contacts.pdf Key Contact information question 128 Sunbelt Rentals respponses to 127 and 128.pdf Answers to Questions 127 and 128 Climate Control Education Case Study 128.pdf Case Study 128 CRT Case Study- High End Condo Disruption.pdf Case study 128 CRT-Case Study-Office Tower Disruption.pdf Case Study 128 Load Banks_Wind Farm Case Study.pdf Case Study 128 Northwest-Oil-Drain-Case-Study.pdf Case Study 128 Temporary-Bypass-Piping-Case-Study.pdf Case study 128 Transformer-Rentals-Case-Study.pdf Case study 128 Utility-Power-Services-Case-Study.pdf Case study 128 Vol. 23 Sunbelt Rentals Full Line Catalog - Low Res.pdf Sunbelt Full Line Catalog Omnia Bid Customer References .pdf Customer References Ashtead-ARA2024-Financial-Statements (1).pdf Sunbelt Financials FY2024 Page 4 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 2024-2025 EMR - Experience Modification Rating - Letter Sunbelt Rentals as of 9.3.2024.pdf Sunbelt EMR Letter Safety Record 24-15 Appendix A - Draft Contract - Sunbelt redline.pdf Appendix A Draft Contract with Sunbelt redlines Exhibit B Administration Agreement Example for Region IV ESC - Sunbelt redline.pdf Exhibit B: Administration Agreement Example Sunbelt redlines Omnia Region 4 Statement of Pricing RFP 040924.pdf Statement of Pricing Explanation Bid Attributes 1 CONTRACT DURATION The initial term of the Contract is for a period of three (3) years unless terminated, canceled, or extended as otherwise provided herein. Region 4 ESC shall have the right in its sole discretion to renew the Contract for additional terms up to two (2) years after the end of the initial term or for a lesser period of time as determined by to the expiration of the original term. Contractor acknowledges and understands Region 4 ESC is under no obligation whatsoever to extend the term of this Contract. In the event the proposal term, including renewals, ends before another proposal is executed, proposal prices and discounts may be extended on a month-to-month basis by mutual consent. Extensions are limited to the lesser of: a) six (6) additional monthly terms, or b) the time which is required to complete a new solicitation for the goods and services provided for in this solicitation. Notwithstanding the foregoing paragraph, the term of the Contract, including any extension of the original term, shall be further extended until the expiration of any Purchase Order issued within the Contract term for a period of up to one year beyond the Contract term. I certify compliance with this attribute. 2 NAME OF INDIVIDUAL COMPLETING THIS PROPOSAL Peggi Sawick 3 HOW MANY YEARS HAS YOUR BUSINESS OPERATED UNDER ITS PRESENT NAME 42 4 WHAT IS YOUR CURRENT NUMBER OF CUSTOMER ACCOUNTS? 200000 5 WHAT ARE YOUR BUSINESS HOURS? available 24/7 Sunbelt branches are open 7am - 5pm M-F some are open on Saturday. An after-hours service fee may apply in some cases and can be discussed in detail upon award. 6 IS 30 DAYS AFTER RECEIPT OF INVOICE AN ACCEPTABLE PAYMENT SCHEDULE FOR YOUR BUSINESS? If Yes, type "YES". If No, describe your payment schedule in the field provided. 30 days after date of invoice Page 5 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 7 WHAT IS THE STANDARD LEAD TIME FOR RECEIPT OF PRODUCTS AFTER ORDER IS RECIEVED (ARO), IN DAYS? Provide your answer in number of DAYS after receipt of order (ARO). 24-48 hours depending on equipment and location needed and if longer, will discuss with customer options. 8 ACCOUNT MANAGER NAME Please indicate the name of the account manager we should speak to with concerns about the products and/or services in this proposal. Natalia Welch 9 ACCOUNT MANAGER EMAIL governmentsales@sunbeltrentals.com 1 ACCOUNT MANAGER PHONE 0 (800) 667-9328 1 PAYMENT REMITTANCE ADDRESS 1 PO Box 409211, Atlanta, GA 30384-9211 1 PAYMENT REMITTANCE PHONE 2 (866) 786-2358 1 CONTRACT/PURCHASE ORDER/QUOTE EMAIL 3 Vendors may choose to have purchase orders emailed to them in PDF format in lieu of having them faxed or mailed. To elect this option, please offer the preferred email address in the accompanying field. This email address will apply to any purchases from your company, so the use of a generic email address is suggested, such as bids@companyname.com or purchaseorders@businessname.com. governmentsales@sunbeltrentals.com 1 CONTRACT/PURCHASE ORDER/QUOTE FAX NUMBER, IF APPLICABLE 4 If applicable, please provide a fax number to send orders and quote requests. 1 REQUIRED REFERENCE QUOTE OR CONTRACT NUMBER, IF APPLICABLE 5 Enter your quote or contract number and/or any other information our staff would need provide on the face of purchase orders in order to receive discount percentages and contract pricing. in the absence of the new contract #, please reference #186849 1 COMPANY WEBSITE ADDRESS, IF APPLICABLE 6 www.SunbeltRentals.com 1 HOW WERE YOU NOTIFIED OF THIS BID OPPORTUNITY? 7 In order to verify the efficiency of communication tools used to notify vendors of bidding opportunities, we ask that you provide us with the manner in which you received notification of this request for bid/proposal. Sunbelt Rentals is the incumbent supplier. We were aware of all extensions, and the final expiration date. Page 6 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 REFERENCE 1 8 Please provide the reference of a school and/or business who have utilized the same equipment/products within the last two years. Include Company/Government name, address, contact name, and contact phone number. 1 REFERENCE 1 EMAIL 9 michael_burdette@dekalbschoolsga.org 2 REFERENCE 2 0 Please provide the reference of a school and/or business who have utilized the same equipment/products within the last two years. Include Company/Government name, address, contact name, and contact phone number. 2 REFERENCE 2 EMAIL 1 jschewni@fmc.sc.edu 2 REFERENCE 3 2 Please provide the reference of a school and/or business who have utilized the same equipment/products within the last two years. Include Company/Government name, address, contact name, and contact phone number. 2 REFERENCE 3 EMAIL 3 Rcavazos@saisd.net 2 THE U.S. STATE YOUR PRINCIPAL PLACE OF BUSINESS IS LOCATED. 4 South Carolina 2 RECIPROCITY 5 For Businesses not located in Texas: Does your state of residence or incorporation require out-of-state bidders to underbid vendors residing in your state by a prescribed amount or percentage to receive a comparable contract? If Yes, please input that percentage; If No, please leave the adjacent field blank. No response 2 PARTIAL AWARD ACCEPTANCE 6 REGION 4 ESC retains the right to award this contract in such a manner that it receives the best overall value for the goods and/or services requested in this request for proposal or bid, which may include awarding to multiple vendors. I understand. 2 PURCHASE ORDER POLICY 7 REGION 4 ESC purchases tangible goods and services through the use of approved Purchase Orders. Vendors are highly discouraged from sending products, and/or performing services without prior receipt of an approved District Purchase Order. While campuses and departments may call for quotes and information, please be advised the District is not obligated to pay for any services and/or products ordered via telephone or email in without the presence of a properly executed Purchase Order. I understand. Page 7 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 2 ADDENDA NOTIFICATIONS 8 Any addenda to this proposal will be issued electronically through this system. It is vendor's responsibility to review addenda upon e-mailed notice and retract/amend their submission as deemed necessary. REGION 4 ESC may choose to mark a proposal received prior to the issuance of an addendum as non-responsive should REGION 4 ESC, in its sole determination, finds the addendum to be of such material change that it warrants such determination. If such proposal is found non-responsive, REGION 4 ESC will not consider the proposal for evaluation or further consideration. I understand. 2 Provide equipment manufacturer, equipment types and discounts off published list price. 9 Sunbelt Rentals offers 40+ equipment categories with thousands of Category Classes (Cat-Classes). Our equipment solutions are manufactured by the industries most notable manufacturers in the industry. Equipment brands we offer include, but are not limited to: John Deere, JCB, JLG, Genie, Bobcat, Ditch Witch, Tennant, Komatsu, Cummins, MQ Power, Hilti, Dewault, Milwaukee, Airrex, Movin Cool, Terex, Kubota, and countless others. We've provided an Omnia Partners Public Sector catalog in the attached pricing template. The template contains equipment most frequently rented by Public Sector customers as well as discount from our local book rates on all other items offered by Sunbelt Rentals. The template also outlines additional charges not included in the rental rates. 3 Define any freight charges. 0 Standard Freight Charges also known and Pickup and delivery (P&D) are $150.00 Each way, plus $4.00 a loaded mile. Please see the pricing template for details regarding pick up and delivery that requires third party carriers, tolls, permits, emergency response and more. 3 Describe how Offeror responds to emergency orders. 1 Natural and everyday disasters are difficult to project. Emergency Response at its core is ensuring a building, property, or community is operational as quickly as possible when disasters happen. We offer our customers 24/7 emergency response support year-round in all conditions and within 24-hours. We understand the unique needs of disaster response projects, and our emergency power generation, HVAC solutions, aerial work platforms, and scaffolding services are always ready. With a nationwide equipment of inventory, we offer the broadest offering for any job. Emergency Response at its core is ensuring a building, property, or community is operational. Natural and everyday disasters are difficult to project. Sunbelt Rentals can support our customers in each phase of an emergency from emergency response planning to mitigation/immediate response, to business continuity and recovery. 3 What is Offeror's average Fill Rate? 2 N/A to scope of rental equipment 3 3 delivery timelines. 90% or greater. Sunbelt prides itself of meeting delivery dates as we know that it is critical to our customer's project and business success. We have a vast network of locations to go to in case any issue with deliveries at one. 3 Describe Offeror's return and restocking policy. 4 N/A to scope of rental equipment 3 Describe Offeror's ability to meet service and warranty needs. 5 During the term of this Agreement, Supplier agrees to repair or replace any defective rental equipment or workmanship that Owner, notifies Supplier of in writing; Owner shall not be charged for any such repair or replacement provided that Owner immediately, upon discovery, notifies Supplier of the need for such repair or replacement and the rental equipment has been used in accordance with normal and intended use and has not been tampered with, modified, adjusted, altered, changed or otherwise repaired or damaged, by any party other than Supplier. Page 8 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 3 Describe Offeror's customer service/problem resolution process. Include hours of operation, number 6 of services, etc. We take customer complaints and service concerns very seriously. When a customer reaches out to us to voice their concerns, we make sure to take the time to listen and ensure we collect all the associated details. Once the details have been captured and entered, we share this report with the appropriate Branch Manager, District Manager, and Regional Vice President. This group has 24 hours to respond to the customer and to let Customer Service know the details of the outcome or that they are working on a resolution. Sunbelt Customer Service is available 24/7. 3 Describe Offeror's invoicing process. Include payment terms and acceptable methods of payments. 7 Offerors shall describe any associated fees pertaining to credit cards/p-cards. E-processes used by Sunbelt included emailed PDF invoices, customer direct XML feed, EDI, .csv FTP Files. We are established with various portals including Ariba, Onvia, BidSync. Our web portal/app MyAccount can be utilized by each customer location to monitor usage and pay invoices directly. Payment Terms are Net 30 from date of invoice. 3 Describe Offeror's contract implementation/customer transition plan. 8 As the incumbent supplier with a proven track record, Sunbelt holds a distinct advantage over our competitors as it relates to implementation and customer transition. Implementation is seamless as the contract initially is only a matter of signature, and extension. Omnia Partner member accounts have already identified in cooperation with Omnia Partners, linked to the agreement, assigned to Sunbelt sellers, and targeted for interaction and growth. Customer transition is a matter of continuous improvement for Sunbelt. We are engaged with the Omnia Partners team to identify new customers and transition new customers to the existing Omnia Partners agreement. Regardless, Implementation and transition would continue in perpetuity. These efforts would include, but not be limited to: Training, Promotions, Target Identification, Assignment, Execution, Follow through, and follow up. 3 Describe the financial condition of Offeror. 9 Sunbelt is financially sound at over $10B revenue. Feel free to review our Annual report at https://www.ashtead- group.com/investors/results-centre/annual-reports/ and also attached in attachments tab. 4 Provide a website link in order to review website ease of use, availability, and capabilities related to 0 provides customers a global view of all equipment on rent and a historic look on previous rental transactions. This includes invoicing, purchase order numbers, rented-by name, equipment type and model, days on rent, total billings, etc. Reports can be set up to send on a regularly scheduled day and time, or you can pull the reports as needed. 4 1 Sunbelt has a dedicated Safety Dept comprised of fulltime occupational health and safety professionals whose sole mission is to work directly with our field personnel to identify hazards & eliminate incidents by making safety the #1 priority for all of our 22,000 team members. Attached please find EMR letter showing the effectiveness of such department. 4 Provide a brief history of the Offeror, including year it was established and corporate office location. 2 Established in 1983 and headquartered near Charlotte, North Carolina, Sunbelt has evolved from a small, local operation to a giant in the rental industry today. Sunbelt is a wholly owned subsidiary of Ashtead Group plc which is headquartered in London, England. Building on its solid foundation in the Southeast, the company has now established itself as the second largest rental company in the United States and will continue to grow through green field initiatives and acquisitions. Sunbelt is strategically positioned with convenient locations to provide superior customer service with more than $15 billion in rental fleet and over 1,400 plus locations combined across all 50 states within the contiguous United States, including Hawaii, and in eight provinces in Canada. Page 9 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 4 Describe Offeror's reputation in the marketplace. 3 Sunbelt Rentals is the second largest equipment rental company in North America. We have a solid reputation as a solutions provider with a customer experience that is second to none. A leader in the equipment rental industry, Sunbelt Rentals is constantly advancing the idea of how a company can best serve its customers, communities and the planet. With a vast network of over 1,200 locations across North America and an expansive portfolio of products and services, we deliver solutions to support any job. Moreover, our communities are an extension of our team members and their families. Sunbelt Rentals aims to positively impact these areas by leveraging our time, talents and financial resources. Our work with numerous organizations throughout North America helps support communities and emergency response needs. 4 Describe Offeror's reputation of products and services in the marketplace. 4 Sunbelt Rentals has a reputation for providing the broadest range of quality rental solutions in the industry With a strong focus on customer service, and a vast inventory of tools and equipment, we're able to cater to a diverse range of construction, facility maintenance, and industrial projects across North America. 4 Describe if distributors/dealers/resellers/subsidiaries/partners ("affiliates") will be used to fulfill the 5 contract. Submit a list of those affiliates authorized to sell under the proposed contract. Where and how does Offeror propose to maintain an authorized affiliate list so it may be accessed by Participating Agencies? How often does the supplier propose to update the affiliate list? Confirm the Offeror reviews the financial health, debarment status and overall general capacity of authorized affiliates. Offerors who us authorized affiliates are responsible for ensuring authorized affiliates are performing in accordance with the contract. Not Applicable to scope 4 Describe the experience and qualifications of key employees. 6 Key personnel will be the Sunbelt Rentals Government Solutions Team. Sunbelt Rentals is the only nationwide equipment rental company with a team of dedicated Government sales force. This team of senior level sales professionals, each with a decade or more of public sector sales experience and equipment rental experience. The team is focused on promoting the power of Sunbelt Rentals within the public-sector, and successfully integrating those opportunities with the appropriate Sunbelt solutions and locations. See attachment for more details. 4 Describe Offeror's experience working with the government sector. 7 Sunbelt Rentals began working with the public sector on as as/if needed basis when we opened in 1983. Over the past 42 years we have we've experienced the public sectors slow but steady transitions from ownership to rental. Today, we have approximately 22 standalone state contracts, a GSA schedule, multiple local, and education contracts, and several cooperative contracts with our Omnia Partners cooperative agreement being our largest and top performing public sector opportunity. 4 Describe past litigation, bankruptcy, reorganization, state investigations of entity or current officers 8 and directors. Sunbelt has been in the past and currently is involved in litigation, however, none of the litigation is material in nature to its in relation to its provision of rental equipment. 4 Provide Offeror's expertise in working with public sector and understanding of the unique technical 9 regulatory requirements. Sunbelt Rentals is one of the largest equipment rental providers in North America. Our position in the industry affords us the luxury of being on the cutting edge of new equipment, technology, and compliance with new and existing regulatory requirements. Whether its emissions, fuel consumption, energy storage solutions, or the electrification of equipment we're often the first to have it, and at times involved in the development, design and manufacturing of such items. Additionally, Sunbelts Government Solutions team is often engaged with customers to anticipate regulatory requirements whether its equipment specifics, or the procurement process. Page 10 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 5 Indicate if Offeror is licensed to do business in all 50 states. 0 Yes No 5 Value Add - Provide any additional information related to products and services Offeror proposes to 1 enhance and add value to the Contract. operational efficiency. We can do this by impacting areas such as equipment inventory, standardization, service - Equipment Inventory: Renting equipment cuts costs by eliminating the need for storage, maintenance and repair parts, service area and staff. Using a four-wheel drive backhoe as an example, the cost of ownership over a five- year period is approximately $71,000. This is based on an average purchase price of $64,000, a residual value of $25,000 and operating costs of $18,560. The cost of renting the same piece of equipment six months a year over - Standardization: Using Sunbelt allows you to standardize your equipment fleet by accessing new equipment whenever you have a need. - Service: Keeping an equipment fleet serviced and ready at all times is expensive. Leveraging our fleet reduces the costs on your end by placing the burden of service on our company. This results in much lower operating costs, as - Process Improvement: Sunbelt Rentals Command Center provides the ability to streamline the process of managing all your rentals. Using our web tools, you can move equipment from job site to job site, call equipment off rent, create alerts and custom reports, manage your AR, pay invoices online and much more. These process improvement result in fewer hours required to fulfill the needs of your company." 5 Include a per diem rate. 2 Not Applicable to scope of rental equipment 5 For Non-Normal Working Hours, indicate if there is a minimum charge of hours and what the number of 3 hours is. As it relates to Equipment rentals, the minimum rental period is 1 day/8 hours. 5 Is pricing available for all products and services? 4 Yes, pricing is available for all Sunbelt Rentals products and services including future products and services through greenfield developments or acquisitions. Some products may require a request for quote, but will be discounted according to the discount structure laid out in the pricing template. Rental industry as a whole does not publish a MSRP. Please refer to Attachment Statement of Pricing. 5 Describe any shipping charges (where applicable). 5 For equipment requiring delivery. Pickup & Delivery Charges are Not included in The Rental Rates. $150.00 Each Way plus $4.00 a Loaded Mile. * If required, fees associated with permitted, overweight, oversized loads, or Third Party Carriers are additional and will be quoted at the time of request. 5 Provide pricing for warranties on all products and services. 6 Not Applicable. - Equipment is owned by Sunbelt Rentals. Sunbelt will handle all warranty issues. 5 Describe any return or restocking fees. 7 Not Applicable 5 Describe any additional discounts or rebates available. Additional discounts or rebates may be offered 8 for large quantity orders, single ship to location, growth, annual spend, guaranteed quantity, etc. Our offer is a discount of 5/10/12% off from book rates. No additional rebates or discounts at this time, however, we are open to further discussions after award. Page 11 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 5 Describe how customers verify they are receiving Contract pricing. 9 Member pricing is notated in Sunbelts CRM module, Members may verify Contract Pricing through the Sunbelt Rentals Omnia Partners contract Manager, or their local sales representative. Also, encouraged to create account on MyAccount found on www.Sunbeltrentals.com to view pricing and manage account. 6 Describe any proposed indices to 0 guide price adjustments. If offering a catalog contract with discounts by category, while changes in individual pricing may change, the category discounts should not change over the term of the Contract. Pricing will be updated annually. Price adjustments will be guided by industry trends, Producer price indices for equipment, and heavy machinery for rental and leasing, transport services, fuel costs, the U.S. Energy Information Administration, and the Employment Cost Index as it relates to to equipment rental. Sunbelt is offering an equipment catalog with category discounts. The discount is on the rental period rather than the category, and as such may change. 6 Describe how future product introductions will be priced and align with Contract pricing proposed. 1 Future equipment and services introductions will be priced according to industry standards by rental market, and priced and discounted similarly to like products and categories. 6 Describe any diversity programs or partners supplier does business with and how Participating 2 Agencies may use diverse partners through the Master Agreement. Indicate how, if at all, pricing changes when using the diversity program. If there are any diversity programs, provide a list of diversity alliances and a copy of their certifications. Not applicable. Sunbelt Rentals self performs nearly every aspect of the rental process. 6 Minority Women Business Enterprise Certification 3 If yes, list certifying agency. Not applicable 6 Small Business Enterprise (SBE) or Disadvantaged Business Enterprise (DBE) Certification 4 If yes, list certifying agency. Not applicable. 6 Historically Underutilized Business (HUB) Certification 5 If yes, list certifying agency. Not applicable. 6 Historically Underutilized Business Zone Enterprise (HUBZone) Certification 6 If yes, list certifying agency. Not applicable 6 Other recognized diversity certificate holder 7 If yes, list certifying agency Not Applicable Page 12 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 6 8 Agreement available nationally through OMNIA Partners. Include a list of current cooperative contracts (regional and national) Offeror holds and describe how the Master Agreement will be positioned among the other cooperative agreements. Sunbelt is committed to growing the contract and collaborating with Omnia Partners on any marketing plan or strategy with OMNIA to result in an Omnia contract. However, the transition of existing public agency accounts will be at the customers discretion as to which contract vehicle they will utilize. 6 Acknowledge Supplier agrees to provide its logo(s) to OMNIA Partners and agrees to provide 9 permission for reproduction of such logo in marketing communications and promotions. Acknowledge that use of OMNIA Partners logo will require permission for reproduction, as well. Yes No 7 0 nationwide and the timely follow up to leads established by OMNIA Partners. All sales materials are to use the OMNIA Partners logo. At a minimum, the Offeror's sales initiatives should communicate: Master Agreement was competitively solicited and publicly awarded by a Principal Procurement Agency Best government pricing No cost to participate Non-exclusive Yes No 7 Confirm Offeror will train its national sales force on the Master Agreement. At a minimum, sales training 1 should include: Key features of Master Agreement Working knowledge of the solicitation process Awareness of the range of Public Agencies that can utilize the Master Agreement through OMNIA Partners Knowledge of benefits of the use of cooperative contracts Yes No 7 Provide the name, title, email and phone number for the person(s), who will be responsible for: 2 Executive Support Marketing Sales Sales Support Financial Reporting Accounts Payable Contracts As the incumbent, Sunbelt has all of the requested personnel established and set up to handle OMNIA inquiries. Please forward to governmentsales@sunbeltrentals.com and they will be directed/forwarded to appropriate people and/or departments. Page 13 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 7 3 the highest-level executive in charge of the sales team. Sunbelt Rentals has a robust nationwide sales force,, but more importantly Sunbelt has a dedicated Government sales team. The Government team ultimately reports to the VP of Sales. Our structure is VP of sales, then Senior Director of Sales & Operations, followed by our Director of Government Sales. There are three (3) Regional Sales Managers who report to the Director of Government Sales. The Regional sales managers each have a team of Government Sales Specialists that cover the U.S. These sellers work directly with the sales staff and end users at the 1400 Sunbelt locations nationwide. As the current contract holder all pertinent contact information is currently in place. 7 Explain in detail how the sales teams will work with the OMNIA Partners team to implement, grow and 4 service the national program. As the incumbent supplier, Sunbelt Rentals is currently fully implemented. Our focus is on the future, empowering our sales force, while continuously improving and refining our approach. This approach has yielded over 170% growth over the past 5 years, and will continue well into the future. Please see attached Marketing Plan for additional details. 7 Explain in detail how Offeror will manage the overall national program throughout the term of the 5 Master Agreement, including ongoing coordination of marketing and sales efforts, timely new Participating Public Agency account set-up, timely contract administration, etc. Many of the details surrounding the coordination of marketing and sales efforts are laid out in our attachment for question 74. The existing relationship allows for accounts to be set up and linked within a matter of hours. The account set up and linking process identifies the account to be included in ongoing marketing and sales efforts and administration. 7 6 Supplier's top 10 Public Agency customers, the total purchases for each for the previous fiscal year along with a key contact for each. SAN ANTONIO ISD SAN ANTONIO, TX DEPARTMENT OF SOUTH ALABAMA PASCO COUNTY BOARD COMMISSION HUNTSVILLE, TX PRAIRIE VIEW, TX $340,635.30 7 Year 1 - Provide the Contract Sales (as defined in Section 12 of OMNIA Partners Administration 7 Agreement) that Supplier will guarantee each year under the Master Agreement for the initial three years of the Master Agreement ("Guaranteed Contract Sales"). To the extent Supplier guarantees minimum Contract Sales, the Administrative Fee shall be calculated based on the greater of the actual Contract Sales and the Guaranteed Contract Sales. $52306810.00 7 Year 2 - Provide the Contract Sales (as defined in Section 12 of OMNIA Partners Administration 8 Agreement) that Supplier will guarantee each year under the Master Agreement for the initial three years of the Master Agreement To the extent Supplier guarantees minimum Contract Sales, the Administrative Fee shall be calculated based on the greater of the actual Contract Sales and the Guaranteed Contract Sales. $60152832.00 Page 14 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 7 Year 3 - Provide the Contract Sales (as defined in Section 12 of OMNIA Partners Administration 9 Agreement) that Supplier will guarantee each year under the Master Agreement for the initial three years of the Master Agreement To the extent Supplier guarantees minimum Contract Sales, the Administrative Fee shall be calculated based on the greater of the actual Contract Sales and the Guaranteed Contract Sales. $69175757.00 8 Please download and thoroughly review the Scope of Work, located on the Attachments Tab. Indicate 0 your review and acceptance. Yes 8 Oral Communications concerning this RFP shall not be binding and shall in no way excuse an Offeror of 1 the obligations set forth in this proposal. Yes 8 Please download and thoroughly review the Terms and Conditions, located on the Attachments Tab. 2 Indicate your review and acceptance. Yes 8 Products/Pricing - Upload on Response Attachments Tab 3 i.Offerors shall provide pricing based on coefficient pricing completing Appendix D; or on a discount from a available from Offeror and the pricing per item. Multiple percentage discounts are acceptable if, where different percentage discounts apply, the different percentages are specified. Additional pricing and/or discounts may be included. Products and services proposed are to be priced separately with all ineligible items identified. Discounts proposed shall remain the same throughout the term of the contract and at all renewal options. At a minimum the Awarded Offeror must hold the proposed price list firm for the first 12 months after the contract award. Offerors may elect to limit their proposals to any category or categories. Complete the applicable Pricing information oProvide equipment manufacturer, equipment types and discount off published list price. oDefine any freight charges. o any sub-office pricing as required. Each of these labor classification rates shall be fully burdened, defined and will be set for Normal Working Hours and Non-Normal Working Hours. Sub-contractor labor shall not be recognized. oIf using coefficient pricing, the Normal Working Hours and Non-Normal Working Hours for tasks identified in the Scope of Work shall use a benchmark against an established data set (e.g.; RSMeans or others) to ensure that the hours provided can be verified. Each of these hourly tasks shall have a coefficient of labor against an established determine effectiveness of providing these tasks. Offerors using coefficient pricing will complete Appendix D. Federal Funding Pricing: Due to products and services potentially being used in response to an emergency or disaster recovery situation in which federal funding may be applied, provide alternative pricing that does not include cost plus a percentage of cost or pricing based on time and materials; if time and materials is necessary, a ceiling price that the contract exceeds at its own risk will be needed. Products and services provided in a situation where an agency is eligible for federal funding, Offeror is subject to and must comply with all federal requirements applicable to the funding including, but not limited to the FEMA Special Conditions section located in the Federal Funds Certifications Exhibit F. Page 15 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 8 Not to Exceed Pricing 4 Region 4 ESC requests pricing be submitted as not to exceed pricing. Unlike fixed pricing, the Contractor can adjust submitted pricing lower if needed but, cannot exceed original pricing submitted. Contractor must allow for lower pricing to be available for similar product and service purchases. Cost plus pricing as a primary pricing structure is not acceptable. 8 5 network as applicable. as of 1/20/2025 there are 1,393 Sunbelt locations throughout USA for a comprehensive/updated list please visit www.sunbeltrentals.com/location 8 Provide a detailed ninety-day plan beginning from award date of the Master Agreement describing the 6 to include, but not limited to: i. Executive leadership endorsement and sponsorship of the award as the public sector go-to-market strategy within first 10 days leadership, along with the OMNIA Partners team within first 90 days As Sunbelt is incumbent and currently holds the OMNIA contract, there will not have to be a transition per se, as all protocols and processes are in place on both sides. Given the 170% growth over the last 5 years, we feel this is a well oiled machine--however, we are open to tweaking if both sides feel necessary. 8 Provide a detailed ninety-day plan beginning from award date of the Master Agreement describing the 7 strategy to market the Master Agreement to current Participating Public Agencies, existing Public Agency customers of Supplier, as well as to prospective Public Agencies nationwide immediately upon award, to include, but not limited to: i. Creation and distribution of a co-branded press release to trade publications 90 days iii. Design, publication and distribution of co-branded marketing materials within first 90 days iv. Commitment to attendance and participation with OMNIA Partners at national (i.e. NIGP Annual Forum, NPI Conference, etc.), regional (i.e. Regional NIGP Chapter Meetings, Regional Cooperative Summits, etc.) and supplier-specific trade shows, conferences and meetings throughout the term of the Master Agreement v. Commitment to attend, exhibit and participate at the NIGP Annual Forum in an area reserved by OMNIA Partners for partner suppliers. Booth space will be purchased and staffed by Supplier. In addition, Supplier commits to provide reasonable assistance to the overall promotion and marketing efforts for the NIGP Annual Forum, as directed by OMNIA Partners. vi. Design and publication of national and regional advertising in trade publications throughout the term of the Master Agreement vii. Ongoing marketing and promotion of the Master Agreement throughout its term (case studies, collateral pieces, presentations, promotions, etc.) as Sunbelt is incumbent and currently holds the OMNIA contract, there will not have to be a transition per se--as all protocols and processes are in place on both sides. Page 16 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 8 GENERAL TERMS AND CONDITIONS 8 Respondent agrees to comply with the Contract and General Terms and Conditions provided as an attachment to this online bid event. Any deviations to the Contract and General Terms and Conditions may be provided using the procedures set forth in the attribute pertaining to deviations. I certify compliance with this attribute. 8 DEVIATIONS TO TERMS AND CONDITIONS 9 Any Deviation from the RFP documents, including the General Terms and Conditions, Notice to Offeror, or any other document presented with terms for consideration by the proposer MUST be documented and presented on the Deviation Form and attached to this electronic bid event via an electronic upload to the "Response Attachments" tab. In addition to indicating the requested deviations on the form, additional pages may be provided to more thoroughly explain each deviation listed on the Deviation Form. I certify compliance with this attribute. 9 FELONY CONVICTION NOTIFICATION 0 person or business entity that enters into an agreement with a school district must give advance notice to the district if the person or an owner or operator of the business entity has been convicted of a felony. The notice must determines that the person or business entity failed to give notice as required by Subsection (a), or misrepresented the conduct resulting in the conviction. The district must compensate the person or business entity for services Use the list of values associated with this item to identify your status as it relates to this legal requirement. Non-Felon - person/owner IS NOT a convicted felon 9 NAME OF FELON AND NATURE OF FELONY, IF APPLICABLE 1 If response to previous attribute was "Felon - person/owner IS a convicted felon", vendor shall give the name of the felon and details of conviction. If you did not answer "Felon - person/owner IS a convicted felon" in the previous question, type "N/A" in the respective field. N/A 9 CRIMINAL HISTORY RECORDS REVIEW OF CERTAIN CONTRACT EMPLOYEES 2 Texas Education Code Chapter 22.0834 requires that criminal history records be obtained regarding covered employees of entities that contract with a school entity in Texas to provide services for that school entity disqualifying criminal histories are prohibited from serving at a school entity. Contractors/Subcontractors contracting with a school entity shall (1) maintain compliance with the requirements of Texas Education Code Chapter 22 to the school entity; and (2) require that each of their subcontractors complies with the requirements of Texas Education Code Chapter 22. Contractors performing work at a school entity in Texas must comply with these statutes. Compliance includes providing or causing employees and sub-contractor employees to provide requested information and fingerprinting upon request. Covered employees: Employees of a Contractor/Subcontractor who have or will have continuing duties related to the service to be performed at a school entity and have or will have direct contact with students. The school entity will be the final arbiter of what constitutes continuing duties anddirect contact with students at their school. I certify compliance with this attribute. Page 17 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 9 HISTORICALLY UNDERUTILIZED BUSINESS (HUB) CERTIFICATION 3 Businesses that have been certified by the Texas Building and Procurement Commission (TBPC) or other qualified agency as Historically Underutilized Business (HUB) entities are encouraged to indicate their HUB status when responding to this proposal invitation. The electronic catalogs will indicate HUB certifications for vendors that properly indicate and document their HUB certification on this form. Select one of the available options: OPTION A: My business has NOT been certified as HUB. OPTION B: I certify that my business has been certified as a Historically Underutilized Business (HUB), and I have/will upload the certification information into the "Response Attachments" Tab located in this online bidding event. OPTION A - Not HUB 9 DISCLOSURE OF INTERESTED PARTIES 4 Texas state law requires the Disclosure of Interested Parties be filed with a public entity, including regional service centers and school districts, for any contract which: (1) requires an action or vote by the governing body; or (2) has a value of $1 million or more; or 305. NOTE: This form is not required if the vendor is a publicly-traded business entity, including a wholly-owned subsidiary of the business entity (a company in which ownership is dispersed among the general public via shares of stock which are traded via at least one stock exchange or over-the-counter market). If you are required by law to submit this form, it must be completed online at the Texas Ethics Commission website. Obtain a numbered certificate and click the link below to access the instructions and to complete this required form. Upon completion, vendors required to submit the form must attach it to the proposal via the "Response Attachments" Tab. Click here to complete the form on the Texas Ethic Commission's 1295 Form webpage. Please note: The District must verify receipt of all required 1295 forms received within 30 days on the Texas Ethics Commission website. This verification does not indicate a contract award. Contract awards will be issued via direct communication from the AISD Purchasing Department. A contract requiring a Disclosure of Interested Parties form is voidable at any time if: (1) the governmental entity or state agency submits to the business entity written notice of the business entity's failure to provide the required disclosure; and (2) the business entity fails to submit to the governmental entity or state agency the required disclosure on or before the 10th business day after the date the business entity receives the written notice. IF UNDER LAW YOU ARE EXEMPT FROM SUBMITTING THIS 1295 FORM, PROPOSERS MUST SUBMIT A DOCUMENT THAT SHOWS PROOF OR PROVIDES EXPLANATION OF THIS EXEMPTION. THE FOLLOWING CONTRACTS ARE EXEMPT FROM THE REQUIREMENTS OF TEXAS DISCLOSURE OF INTERESTED PARTIES LAWS: I certify compliance with this attribute. Page 18 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 9 CONFLICT OF INTEREST QUESTIONNAIRE 5 Region 4 Education Service Center (Region 4) is required to comply with Texas Local Government Code Chapter 176, Disclosure of Certain Relationships with Local Government Officers. House Bill 23 significantly changed Chapter 176 as well as the required disclosures and the corresponding forms. As of September 1, 2015, any vendor who does business with Region 4 or who seeks to do business with Region 4 must fill out the new Conflict of Interest Questionnaire (CIQ) if a conflict of interest exists. A conflict of interest exists in the following situations: 1) If the vendor has an employment or other business relationship with a local government officer of Region 4 or a family member of the officer, as described by section 176.003(a)(2)(A) of the Texas Local Government Code; or 2) If the vendor has given a local government officer of Region 4, or a family member of the officer, one or more gifts with the aggregate value of $100, excluding any gift accepted by the officer or a family member of the officer if the gift is: (a) a political contribution as defined by Title 15 of the Election Code; or (b) a gift of food accepted as a guest; or 3) If the vendor has a family relationship with a local government officer of Region 4. means a person who enters or seeks to enter into a contract with a local governmental entity. The term includes an agent of a vendor. The term includes an officer or employee of a state agency when that individual is acting in a private capacity to enter into a contract. The term does not include a state agency except for Texas Correctional Industries. Texas Local Government Code 176.001(7). means a connection between two or more parties based on commercial activity of one of the parties. The term does not include a connection based on: (A) a transaction that is subject to rate or fee regulation by a federal, state, or local governmental entity or an agency of a federal, state, or local governmental entity; (B) a transaction conducted at a price and subject to terms available to the public; or (C) a purchase or lease of goods or services from a person that is chartered by a state or federal agency and that is subject to regular examination by, and reporting to, that agency. Texas Local Government Code 176.001(3). means a relationship between a person and another person within the third degree by consanguinity or the second degree by affinity, as those terms are defined by Subchapter B, Chapter 573, Government Code. Texas Local Government Code 176.001(2-a). means: (A) a member of the governing body of a local governmental entity; (B) a director, superintendent, administrator, president, or other person designated as the executive officer of a local governmental entity; or (C) an agent of a local governmental entity who exercises discretion in the planning, recommending, selecting, or contracting of a vendor. Texas Local Government Code 176.001(4). Individuals serving as a Member of the Board of Directors, the Executive Director, Cabinet Members, and other local government officers may be found at: https://www.esc4.net/about/about-region-4. For additional information on Conflict of Interest Questionnaire, and the statutes that mandate it, please visit the following links: Texas Local Government Code, Section 176 Texas House Bill 23 A blank Conflict of Interest Questionnaire is available by clicking: https://www.ethics.state.tx.us/data/forms/conflict/CIQ.pdf. If your firm is required to return a completed Conflict of Interest Questionnaire with your proposal submission, use the "Response Attachments" Tab to upload the completed document. I certify compliance with this attribute. Page 19 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 9 ENTITITES THAT BOYCOTT ISRAEL 6 Pursuant to Chapter 2271 of the Texas Government Code, the Respondent hereby certifies and verifies that neither include refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. EXCEPTIONS: Clause only applies to contracts and contractors that meet the following criteria: (i) Respondent is not a sole proprietorship; (ii) with 10 or more full-time employees; and (iii) with a contract to be paid a value of $100,000 or more wholly or partially from public funds of the governmental entity. I certify compliance with this attribute. 9 FOREIGN TERRORIST ORGANIZATIONS 7 Section 2252.152 of the Texas Government Code prohibits Region 4 ESC from awarding a contract to any person who does business with Iran, Sudan, or a foreign terrorist organization as defined in Section 2252.151 of the Texas Government Code. Respondent certifies that it not ineligible to receive the contract. I certify compliance with this attribute. 9 FIREARMS ENTITIES AND TRADE ASSOCIATIONS DISCRIMINATION 8 Respondent verifies that: (1) it does not, and will not for the duration of the contract, have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association or (2) the verification required by Section 2274.002 of the Texas Government Code does not apply to the contract. If circumstances relevant to this provision change during the course of the contract, Respondent shall promptly notify Region 4 ESC. APPLICABILITY: This clause applies only to a contract that: (1) is between a governmental entity and a company with at least 10 full-time employees; and (2) has a value of at least $100,000 that is paid wholly or partly from public funds of the governmental entity. EXCEPTIONS: This clause is not required when a state Agency: (1) contracts with a sole-source provider; or (2) does not receive any bids from a company that is able to provide the written verification required by Section 2274.002(b) of the Texas Government Code. I certify compliance with this attribute. 9 ENERGY COMPANY BOYCOTT PROHIBITED 9 Respondent represents and warrants that: (1) it does not, and will not for the duration of the contract, boycott energy companies or (2) the verification required by Section 2274.002 of the Texas Government Code does not apply to the contract. If circumstances relevant to this provision change during the course of the contract, Respondent shall promptly notify Region 4 ESC. EXCEPTIONS: partially from public funds of the governmental entity. I certify compliance with this attribute. 1 CRITICAL INFRASTRUCTURE AFFIRMATION 0 Pursuant to Government Code Section 2274.0102, Respondent certifies that neither it nor its parent company, nor 0 any affiliate of Respondent or its parent company, is: (1) majority owned or controlled by citizens or governmental entities of China, Iran, North Korea, Russia, or any other country designated by the Governor under Government Code Section 2274.0103, or (2) headquartered in any of those countries. EXCEPTION: Clause only applies to solicitations and contracts in which the contractor would be granted direct or remote access to or control of critical infrastructure, as defined by Section 2274.0101 of the Texas Government Code, in this state, other than access specifically allowed for product warranty and support purposes. The Governor of the State of Texas may designate countries as a threat to critical infrastructure under Section 2274.0103 of the Texas Government Code. Agencies should promptly add any country that is designated by the Governor to this clause. I certify compliance with this attribute. Page 20 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 OPEN RECORDS POLICY 0 All proposals, information and documents submitted are subject to the Public Information Act requirements 1 governed by the State of Texas once a Contract(s) is executed. If an Offeror believes its response, or parts of its response, may be exempted from disclosure, the Offeror must specify page-by-page and line-by-line the parts of the response, which it believes, are exempt and include detailed reasons to substantiate the exemption. Price is not confidential and will not be withheld. Any unmarked information will be considered public information and released, if requested under the Public Information Act. The determination of whether information is confidential and not subject to disclosure is the duty of the Office of Attorney General (OAG). Region 4 ESC must provide the OAG sufficient information to render an opinion and therefore, vague and general claims to confidentiality by the Offeror are not acceptable. Region 4 ESC must comply with the opinions of the OAG. Region 4 ESC assumes no responsibility for asserting legal arguments on behalf of any Offeror. Offeror is advised to consult with their legal counsel concerning disclosure issues resulting from this procurement process and to take precautions to safeguard trade secrets and other proprietary information. Policy below: OPTION A this proposal, or any part of our proposal, is exempt from disclosure under the Public Information Act. OPTION B: We declare the following information to be a trade secret or proprietary and exempt from disclosure under the Public Information Act and these requested exemptions are uploaded into the "Response Attachments" Tab located in this online bidding event. (Note: Offeror must specify page-by-page and line-by-line the parts of the response, which it believes, are exempt. In addition, Offeror must include detailed reasons to substantiate the exemption(s). Price is not confidential and will not be withheld. All information believed to be a trade secret or proprietary must be listed. It is further understood that failure to identify such information, in strict accordance with the instructions, will result in that information being considered public information and released, if requested under the Public Information Act.) OPTION A - No proprietary information 1 CONSENT TO RELEASE PROPOSAL TABULATION 0 Notwithstanding anything explicitly and properly declared as Confidential or Proprietary Information to the contrary, 2 by submitting a Proposal, Vendor consents and agrees that, upon Contract award, the District may publicly release, including posting on the public Region 4 ESC and/or OMNIA Partners website(s), a copy of the proposal tabulation for the Contract including Vendor name; proposed catalog/pricelist name(s); proposed percentage discount(s), unit price(s), hourly labor rate(s), or other specified pricing; and Vendor award notice information. I certify compliance with this attribute. Page 21 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 CONTRACTING INFORMATION 0 If Vendor is not a governmental body and 3 (a) this Agreement has a stated expenditure of at least $1 million in public funds for the purchase of goods or services by REGION 4 ESC; or (b) this Agreement results in the expenditure of at least $1 million in public funds for the purchase of goods or services by REGION 4 ESC in a fiscal year of REGION 4 ESC, the following certification shall apply; otherwise, this certification is not required. (unless the Agreement is (1) related to the purchase or underwriting of a public security; (2) is or may be used as collateral on a loan; or (3) proceeds from which are used to pay debt service of a public security of loan): the contractor or vendor agrees that the contract can be terminated if the contractor or vendor knowingly or Pursuant to Subchapter J, Chapter 552, Texas Government Code, the Vendor hereby certifies and agrees to (1) preserve all contracting information related to this Agreement as provided by the records retention requirements applicable to REGION 4 ESC for the duration of the Agreement; (2) promptly provide to REGION 4 ESC any contracting information related to the Agreement that is in the custody or possession of the Vendor on request of REGION 4 ESC; and (3) on completion of the Agreement, either (a) provide at no cost to AISD all contracting information related to the Agreement that is in the custody or possession of Vendor, or (b) preserve the contracting information related to the Agreement as provided by the records retention requirements applicable to REGION 4 ESC. I certify compliance with this attribute. 1 ANTI-TRUST CERTIFICATION STATEMENT 0 Vendor affirms under penalty of perjury of the laws of the State of Texas that: 4 (1) I am duly authorized to execute this contract on my own behalf or on behalf of the company, corporation, firm, partnership or individual (Company) listed below; (2) In connection with this bid, neither I nor any representative of the Company have violated any provision of the Texas Free Enterprise and Antitrust Act, Tex. Bus. & Comm. Code Chapter 15; (3) In connection with this bid, neither I nor any representative of the Company have violated any federal antitrust law; and (4) Neither I nor any representative of the Company have directly or indirectly communicated any of the contents of this bid to a competitor of the Company or any other company, corporation, firm, partnership or individual engaged in the same line of business as the Company. I certify compliance with this attribute. 1 FEDERAL RULE (A) - CONTRACT TERM VIOLATIONS 0 (A) 5 is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. Pursuant to Federal Rule (A) above, when federal funds are expended by Region 4 ESC, Region 4 ESC reserves all rights and privileges under the applicable laws and regulations with respect to this procurement in the event of breach of contract by either party. I certify compliance with this attribute. Page 22 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 FEDERAL RULE (B) - TERMINATION CONDITIONS 0 (B) Termination for cause and for convenience by the grantee or subgrantee including the manner by which it will 6 be effected and the basis for settlement. (All contracts in excess of $10,000) Pursuant to Federal Rule (B) above, when federal funds are expended by REGION 4 ESC, REGION 4 ESC reserves the right to immediately terminate any agreement in excess of $10,000 resulting from this procurement process in the event of a breach or default of the agreement by Vendor, in the event vendor fails to: (1) meet schedules, deadlines, and/or delivery dates within the time specified in the procurement solicitation, contract, and/or a purchase order; (2) make any payments owed; or (3) otherwise perform in accordance with the contract and/or the procurement solicitation; (4) to the greatest extent authorized by law, if an award no longer effectuates the program goals or priorities of the Federal awarding agency or REGION 4 ESC.REGION 4 ESC also reserves the right to terminate the contract immediately, with written notice to vendor, for convenience, if REGION 4 ESC believes, in its sole discretion that it is in the best interest of REGION 4 ESC to do so. The vendor will be compensated for work performed and accepted and goods accepted by REGION 4 ESC as of the termination date if the contract is terminated for convenience of REGION 4 ESC. Any award under this procurement process is not exclusive and REGION 4 ESC reserves the right to purchase goods and services from other vendors when it is in the best interest of REGION 4 ESC. I certify compliance with this attribute. 1 FEDERAL RULE (C) - EQUAL EMPLOYMENT OPPORTUNITY 0 (C) 7 It is the policy of REGION 4 ESC not to discriminate on the basis of race, color, national origin, gender, limited English proficiency or disabling conditions in its programs. Vendor agrees not to discriminate against any employee or applicant for employment to be employed in the performance of this Contract, with respect to hire, tenure, terms, conditions and privileges of employment, or a matter directly or indirectly related to employment, because of age (except where based on a bona fide occupational qualification), sex (except where based on a bona fide occupational qualification) or race, color, religion, national origin, or ancestry. Vendor further agrees that every subcontract entered into for the performance of this Contract shall contain a provision requiring non-discrimination in employment herein specified binding upon each subcontractor. Breach of this covenant may be regarded as a material breach of the Contract. Pursuant to Federal Rule (C) and the requirements stated above, when federal funds are expended by REGION 4 ESC on any federally assisted construction contract, the equal opportunity clause is incorporated by reference herein. I certify compliance with this attribute. Page 23 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 FEDERAL RULE (D) - DAVIS BACON ACT/COPELAND ACT 0 (D)Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime 8 construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146- 3148) as supplemented by Department of Labor mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. Pursuant to Federal Rule (D) above, when federal funds are expended by REGION4 ESC, during the term of an award for all contracts and subgrants for construction or repair, the vendor will be in compliance with all applicable Davis-Bacon Act provisions. I certify compliance with this attribute. 1 FEDERAL RULE (E) - CONTRACT WORK HOURS AND SAFETY STANDARDS ACT 0 (E)(40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non-Federal entity in excess of 9 $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. Pursuant to Federal Rule (E) above, when federal funds are expended by REGION 4 ESC, the vendor certifies that during the term of an award for all contracts by REGION 4 ESC resulting from this procurement process, the vendor will be in compliance with all applicable provisions of the Contract Work Hours and Safety Standards Act. I certify compliance with this attribute. 1 FEDERAL RULE (F) - RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT 1 (F) 0 subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Pursuant to Federal Rule (F) above, when federal funds are expended by REGION 4 ESC, the vendor certifies that during the term of an award for all contracts by REGION 4 ESC resulting from this procurement process, the vendor agrees to comply with all applicable requirements as referenced in Federal Rule (F) above. I certify compliance with this attribute. Page 24 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 FEDERAL RULE (G) - CLEAN AIR ACT/FEDERAL WATER POLLUTION CONTROL ACT 1 (G)TheClean Air Act(42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251- 1 requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). When federal funds are expended by REGION 4 ESC for any contract resulting from this procurement process, the vendor certifies that the vendor will be in compliance with mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871). When federal funds are expended by REGION 4 ESC for any contract resulting from this procurement process in excess of $100,000, the vendor certifies that the vendor is in compliance with all applicable standards, orders, regulations, and/or requirements issued pursuant to the Clean Air Act of 1970, as amended (42 U.S.C. 1857(h)), Section 508 of the Clean Water Act, as amended (33 U.S.C. 1368), Executive Order 117389 and Environmental Protection Agency Regulation, 40 CFR Part 15. Pursuant to Federal Rule (G) above, when federal funds are expended by REGION 4 ESC, the vendor certifies that during the term of an award for all contracts by REGION 4 ESC resulting from this procurement process, the vendor agrees to comply with all applicable requirements as referenced in Federal Rule (G) above. I certify compliance with this attribute. 1 FEDERAL RULE (H) - DEBARMENT AND SUSPENSION 1 (H) 2 listed on the governmentwide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Pursuant to Federal Rule (H) above, when federal funds are expended by REGION 4 ESC, the vendor certifies that during the term of an award for all contracts by REGION 4 ESC resulting from this procurement process, the vendor certifies that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency or by the State of Texas. Vendor shall immediately provide written notice to REGION 4 ESC if at any time the vendor learns that this certification was erroneous when submitted or has become erroneous by reason of changed circumstances. REGION 4 ESC may rely upon a certification of a vendor that the vendor is not debarred, suspended, ineligible, or voluntarily excluded from the covered contract, unless REGION 4 ESC knows the certification is erroneous. I certify compliance with this attribute. Page 25 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 FEDERAL RULE (I) - BYRD ANTI-LOBBYING AMENDMENT 1 (I) 3 certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award. Pursuant to Federal Rule (I) above, when federal funds are expended by REGION 4 ESC, the vendor certifies that during the term and after the awarded term of an award for all contracts by REGION 4 ESC resulting from this procurement process, the vendor certifies that it is in compliance with all applicable provisions of the Byrd Anti- Lobbying Amendment (31 U.S.C. 1352). The undersigned further certifies 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 a Federal contract, the making of a Federal grant, the making of a Federal loan, the entering into a cooperative agreement, and the extension, continuation, renewal, amendment, or modification of a 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 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 (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, 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 certificate 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. I certify compliance with this attribute. 1 FEDERAL RULE (J) - PROCUREMENT OF RECOVERED MATERIALS 1 (J)When federal funds are expended by REGION 4 ESC, REGION 4 ESC and its contractors must comply with 4 section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include: (1) procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; (2) procuring solid waste management services in a manner that maximizes energy and resource recovery; and (3) establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. Pursuant to Federal Rule (J) above, when federal funds are expended REGION 4 ESC, as required by the this document, that the percentage of recovered materials content for EPA-designated items to be delivered or used in the performance of the contract will be at least the amount required by the applicable contract specifications or other contractual requirements. I certify compliance with this attribute. Page 26 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 FEDERAL RULE (K) - PROHIBITION ON CERTAIN TELECOM AND SURVEILLANCE SERVICE AND 1 EQUIPMENT 5 (K) Region 4 ESC, as a non-federal entity, is prohibited from obligating or expending Federal financial assistance, to include loan or grant funds, to: (1) procure or obtain, (2) extend or renew a contract to procure or obtain, or (3) enter into a contract (or extend or renew a contract) to procure or obtain, equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as a critical technology as part of any system. Covered telecommunications equipment is telecommunications equipment produced Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities) and physical security surveillance of critical infrastructure and other national security purposes, and video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities) for the purpose of public safety, security of government facilities, physical security surveillance of critical The Respondent certifies that it will not purchase equipment, services, or systems that use covered telecommunications, as defined herein, as a substantial or essential component of any system, or as critical technology as part of any system. I certify compliance with this attribute. 1 FEDERAL RULE (L) - BUY AMERICAN PROVISIONS 1 (L) As appropriate and to the extent consistent with law, REGION 4 ESC has a preference for the purchase, 6 acquisition, or use of goods, products, or materials produced in the United States, including but not limited to iron, aluminum, steel, cement, and other manufactured products, when spending federal funds. Vendor agrees that the requirements of this section will be included in all subawards including all contracts and purchase orders for work or products under this award, to the greatest extent practicable under a Federal award. Purchases that are made with non-federal funds or grants are excluded from the Buy American Act. Vendor certifies that it is in compliance with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must still follow the applicable procurement rules calling for free and open competition. metals such as aluminum; plastics and polymer-based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber. I certify compliance with this attribute. 1 FEDERAL RULE - REQUIRED AFFIRMATIVE STEPES FOR SMALL, MINORITY, AND WOMEN-OWNED 1 FIRMS FOR CONTRACTS PAID FOR WITH FEDERAL FUNDS 7 When federal funds are expended by REGION 4 ESC, Vendor is required to take all affirmative steps set forth in 2 CFR 200.321 to solicit and reach out to small, minority and women owned firms for any subcontracting opportunities on the project, including: 1) Placing qualified small and minority businesses and women's business enterprises on solicitation lists; 2) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; 3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; 4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; and 5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce. I certify compliance with this attribute. Page 27 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 FEDERAL RULE - FEDERAL RECORD RETENTION 1 When federal funds are expended by REGION 4 ESC for any contract resulting from this procurement process, the 8 grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed. Vendor agrees that REGION 4 ESC, Inspector General, Department of Homeland Security, FEMA, the Comptroller General of the United States, or any of their duly authorized representatives shall have access to any books, documents, papers and records of Vendor, and its successors, transferees, assignees, and subcontractors that are directly pertinent to the Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The relating to such documents. Vendor agrees to permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. Vendor agrees to provide the FEMA Administrator or his authorized representative access to construction or other work sites pertaining to the work being completed under the Contract. I certify compliance with this attribute. 1 FEDERAL RULE - PROFIT NEGOTIATION 1 For purchases using Federal funds in excess of $250,000, REGION 4 ESC may be required to negotiate profit as a 9 separate element of the price. (See 2 CFR 200.324(b)). When required by REGION 4 ESC, Vendor agrees to provide information relating to profitability of the given transaction and itemize the profit margin as a separate element of the price. I certify compliance with this attribute. 1 FEDERAL RULE - SOLID WASTE DISPOSAL ACT 2 A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must 0 comply with section 6002 of the Sold Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceed $10,000; procuring sold waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. (78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014.) Pursuant to this federal rule, when federal funds are expended by REGION 4 ESC, the vendor certifies that during the term of all contracts resulting from this procurement process, the vendor agrees to comply with all applicable requirements as referenced in this paragraph. I certify compliance with this attribute. 1 APPLICABLITY TO SUBCONTRACTORS 2 Vendoragreesthatallcontractsitawardspursuanttoshallbeboundbythetermsand 1 conditions of this procurement action. I certify compliance with this attribute. 1 COMPLIANCE WITH THE ENERGY POLICY AND CONSERVATION ACT 2 When REGION 4 ESC expends federal funds for any contract resulting from this procurement process, Vendor 2 certifies that it will comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.; 49 C.F.R. Part 18). I certify compliance with this attribute. Page 28 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 INDEMNIFICATION 2 Acts or Omissions 3 Vendor shall indemnify and hold harmless Region 4, AND/OR THEIR OFFICERS, AGENTS, EMPLOYEES, REPRESENTATIVES, CONTRACTORS, ASSIGNEES, AND/OR DESIGNEES FROM ANY AND ALL LIABILITY, ACTIONS, CLAIMS, DEMANDS, OR SUITS, AND ALL RELATED COSTS, ATTORNEY FEES, AND EXPENSES arising out of, or resulting from any acts or omissions of the Vendor or its agents, employees, subcontractors, Order Fulfillers, or suppliers of subcontractors in the execution or performance of the Contract and any Purchase Orders issued under the Contract. Infringements a) Vendor shall indemnify and hold harmless Region 4 and Customers, AND/OR THEIR EMPLOYEES, AGENTS, REPRESENTATIVES, CONTRACTORS, ASSIGNEES, AND/OR DESIGNEES from any and all third party claims involving infringement of United States patents, copyrights, trade and service marks, and any other intellectual or intangible property rights in connection with the PERFORMANCES OR ACTIONS OF VENDOR PURSUANT TO THIS CONTRACT. VENDOR AND THE CUSTOMER AGREE TO FURNISH TIMELY WRITTEN NOTICE TO EACH OTHER FEES. b) Vendor shall have no liability under this section if the alleged infringement is caused in whole or in part by: (i) use of the product or service for a purpose or in a manner for which the product or service was not designed, (ii) any Customer, or (v) any use of the product or service by Customer that is not in conformity with the terms of any applicable license agreement. c) If Vendor becomes aware of an actual or potential claim, or Customer provides Vendor with notice of an actual or expense; (i) procure for the Customer the right to continue to use the affected portion of the product or service, or (ii) modify or replace the affected portion of the product or service with functionally equivalent or superior product or a) VENDOR AGREES AND ACKNOWLEDGES THAT DURING THE EXISTENCE OF THIS CONTRACT, VENDOR VENDOR AGREES TO COMPLY WITH ALL STATE AND FEDERAL LAWS APPLICABLE TO ANY SUCH PERSONS, CUSTOMER AND/OR REGION 4 SHALL NOT BE LIABLE TO THE VENDOR, ITS EMPLOYEES, AGENTS, OR OTHERS FOR THE PAYMENT OF TAXES OR THE PROVISION OF UNEMPLOYMENT INSURANCE AND/OR ANOTHER GOVERNMENTAL ENTITY CUSTOMER. b) VENDOR AGREES TO INDEMNIFY AND HOLD HARMLESS CUSTOMERS, REGION 4 AND/OR THEIR EMPLOYEES, AGENTS, REPRESENTATIVES, CONTRACTORS, AND/OR ASSIGNEES FROM ANY AND ALL ITS PERFORMANCE UNDER THIS CONTRACT, VENDOR SHALL BE LIABLE TO PAY ALL COSTS OF DEFENSE I certify compliance with this attribute. 1 EXCESS OBLIGATIONS PROHIBITED 2 Proposer understands that all obligations of Region 4 ESC under the contract are subject to the availability of state 4 funds. If such funds are not appropriated or become unavailable, the contract may be terminated by Region 4 ESC. I certify compliance with this attribute. 1 SUSPENSION AND DEBARMENT 2 Respondent certifies that neither it nor its principals are debarred, suspended, proposed for debarment, declared 5 ineligible, or otherwise excluded from participation in the contract by any state or federal agency. I certify compliance with this attribute. Page 29 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 1 CHANGE IN LAW AND COMPLIANCE WITH LAWS 2 Proposer shall comply with all laws, regulations, requirements and guidelines applicable to a vendor providing 6 services and products required by the contract to the Region 4 ESC, as these laws, regulations, requirements and guidelines currently exist and as amended throughout the term of the contract. Region 4 ESC reserves the right, in its sole discretion, to unilaterally amend the contract prior to award and throughout the term of the contract to incorporate any modifications necessary for compliance with all applicable state and federal laws, regulations, requirements and guidelines. I certify compliance with this attribute. 1 For the following categories, the Offeror shall provide the following information to include; 2 oHVAC Refrigeration 7 Type (e.g., Rotary, Centrifugal, Scroll, Reciprocating., Absorption) Cooling medium (e.g., air, water) Brand Name(s) Capacity Range (tons) Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Range of Efficiencies (KW/Ton) Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oIndoor Air Quality Products and Devices Type (Active polarization, non-ionizing, electronic air cleaning systems intended to replace passive filtration, any other.) Brand Name(s) Capacity Range Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Range of Efficiencies Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oUnitary Type (e.g., rooftops, split systems, VRFs, Heat Pumps, PTACs, water source, mini-splits) Brand Name(s) Capacity Range Heating Medium (Electric, Gas, Steam, Hot Water) Cooling Medium (DX, Chilled Water) Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Range of Efficiencies (EER, SEER, COP) Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oAir handling Type (e.g. central station-manufactured or custom makeup air, fan, filter, coil sections) Brand Name(s) Fan Types (e.g. Backward incline, Forward curve, airfoil) Capacity Range (CFM) Heating Medium (Electric, Gas, Steam, Hot Water) Cooling Medium (DX, Chilled Water) Standard Warranty (Parts & Labor) Page 30 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oAir Terminal Devices and Heating Products Type (e.g. VAV, Fan Coils, Unit Ventilators, Unit Heaters, Fin Tube Radiation/Convectors) Brand Name(s) Capacity Range (CFM) Heating Medium (Electric, Gas, Steam, Hot Water) Cooling Medium (DX, Chilled Water) Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oDDC Controls Type (core components, end devices, lighting, panels) Brand Name(s) System Protocol (BACnet, LonWorks, Proprietary or Combo) LAN Communication Structure (Peer-to-peer, Polling) Human Machine Interface (HMI) types (PC, Notebooks, Handheld terminals) Third party interface (Drivers and Gateways) Remote alarm and message capabilities Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Estimated Market Share (North America) Detail Features & Benefits oCooling Towers Type (e.g., open, closed, evaporative, other) Brand Name(s) Capacity Range (tons) Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Range of Efficiencies Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oPumps Type (e.g., single stage, split case, end suction, inline, circulator, turbines) Brand Name(s) Capacity Range (GPM) Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Range of Efficiencies Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oInvertors Brand Name(s) Capacity Range (HP) Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Page 31 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oBoilers & Water Heaters Type (e.g., modulating, condensing, cast iron, water tube, packaged, other) Brand Name(s) Heating Medium (Electric, Gas, Steam, Hot Water) Capacity Range (MBH) Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Range of Efficiencies Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits oHVAC Specialty Products Type (e.g., modular, outside/inside, S&T Heat Recovery, Humidity Control, Heat Wheel, Heat Pipe, Heat Exchangers) Brand Name(s) Heating Medium (Electric, Gas, Steam, Hot Water) Cooling Medium (DX, Chilled Water) Capacity Range (CFM and/or MBH) Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Location of Manufacturing (City, State or Country) Range of Efficiencies Estimated Market Share (North America) Provide example data on each type of product provided Detail Features & Benefits Refrigeration Products Display Cases Refrigeration Systems Glass Doors & Lids Walk-in Products Others oLED Lighting Products LED Area Lights Flexible LED Strips Ceiling Lighting Bulbs, Fixture Products Others oEquipment Parts and Supplies Type (e.g., manufactured parts, emergency parts service, miscellaneous material and supplies and other) Brand Name(s) stocked Location of stocking parts Standard Warranty (Parts & Labor) Optional Warranty (components covered & Labor) Estimated Lead/Delivery Time Percentage of locally stocked parts to delivered parts Detail Features & Benefits 1 Offerors are requested to provide service forms with detailed description of your service offerings. 2 Provide service forms with detailed descriptions; at a minimum, Offerors are to include the following 8 information as it is applicable to their product, service, and solutions offering: oStartup & Commissioning Services Page 32 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 Define process for validation of system or equipment operation to design Type (e.g., equipment startups, system checkouts, control verification, retro commissioning, M & V verifications, rebate auditing, other) List key personnel (factory, sub-contract, other) References (public sector only) Case studies describing benefits of services oService & Maintenance Type (e.g., preventative and full maintenance contracts, man-at attendance, remote monitoring, annuals, emergency services, regulatory compliance, cleaning (e.g., duct, coils and filters), scheduled maintenance (e.g., oil, chemical and vibration analysis) and other) Define processes for each type of service and/or maintenance of the system or the equipment List key personnel (factory, sub-contract, other) References (public sector only) Case studies describing benefits of services oInstallation and Turnkey Contracting Type (e.g., retrofit, new construction, energy retrofit, controls new- and upgrade and other) Define processes for each type install of the system or the equipment Bonding and licensing capabilities List key personnel (factory, sub-contract, other) References (public sector only) Case studies describing benefits of services oWarranty Services Type (e.g., Extended parts & labor (define maximum number of years available), delayed start-up and other) Define processes for each type of warranty List key personnel (factory, sub-contract, other) References (public sector only) Case studies describing benefits of services oEnergy Services Type (e.g., (Energy Tracking, Energy Analysis, Evaluation of potential upgrades, demand response, rebates and others) Define processes for each type of energy services Certifications of personnel List key personnel (factory, sub-contract, other) References (public sector only) Case studies describing benefits of services oEquipment Rentals Type (e.g., chillers, pumps, transformers, terminal units, generators, cooling towers, packaged unitary and other) Brands available Locations of rental fleet Process of accessing rental fleet during disaster event List key personnel (factory, sub-contract, other) References (public sector only) Case studies describing benefits of services oFinancial Services Type (e.g., leasing, prompt and pre-payment discounts, guaranteed savings and other) Describe type of each funding and availability Funding Sources (internal and/or external) List key personnel (internal and/or external) References (public sector only) Case studies describing benefits of services oProfessional Services Describe type of each professional service and availability Licensing and certification capabilities List key personnel (internal and/or external) References (public sector only) Case studies describing benefits of services oSite Surveys Type (e.g., Equipment, system analysis, operational, architectural and other) Describe type of survey Licensing and certification capabilities Page 33 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 Advanced technology uses for each type of survey List key personnel (internal and/or external) References (public sector only) Case studies describing benefits of services Page 34 of 34 pagesVendor: Sunbelt Rentals Inc24-15 Addendum 1 COMMAND CENTER CAPABILITIES & APPLICATIONS 2022 Make It Happen From Anywhere On-Demand Account Management Reserve, rent, or release equipment Use Quick Rent to reorder your most frequent, recent, and favorite equipment View and manage equipment at the project Manage purchase orders and invoice payments Manage and track fleet in real time Receive alerts and notifications 2 Benefits of Command Center Streamlined communication and collaboration Improved jobsite, rental, and invoice management Increased awareness Empowerment to immediately take action Access from any computer or mobile device Ability to customize user access and key functions Insights via real time and historical data to improve efficiencies and planning Access to all transactional documents Streamlined A/P processes 3 Website and Mobile App Website Accessed from computer or tablet Robust functionality Order & manage equipment Access reports, alerts, payments Used by multiple customer types Mobile App Tablet or phone Available on iOS or Android Tactical functionality Used frequently by field teams Order & manage equipment 4 User Empowerment Empower your teammates with customizable access Account Administrator (full control) Submit Online Orders Off-rent Equipment Pay Online Access Reporting Subscribe to Alerts Update Jobsite Info Manage Paperless Billing Preferences Review last-log-in data and manage peer user profiles to secure your data 5 Online Equipment Catalog Equipment Uses and Applications Specifications to verify that the equipment can meet your needs *Rental Rates 6 Online Ordering Made Simple 1.Select desired equipment from: a.Online Catalog b.Quick Rent tab i.Recent, Frequent, or Favorite Orders 2.Choose rental duration 3.Select existing Jobsite or create a new one 4.Enter PO or additional billing references* 5.Submit 7 Managing Jobsites Manage/Update Jobsite Info Job Name (your internal reference) Default PO # for future orders Contact Name/Phone Delivery Instructions 8 Managing Rentals (Jobs & Equipment) Manage your rental equipment via personalized layouts that empower you to quickly identify and act on key items including: -Delivery Signatures on Contracts -Underutilized assets -Overdue equipment -Missing/Inaccurate POs -Outdated Ownership -Future Rentals 9 Telematics Data Identify the last known location of missing assets Assess utilization trends via reporting and/or alerts to right-size your rental fleet Analyze historical utilization data to impactfully guide future projects Key internal developments: Mandated factory installation for much of Proactive real-time monitoring of data feeds Integration of remote diagnostics for the Sunbelt Service Team safer and more efficient pickups To learn more, please contact your local Sunbelt Account Manager 10 Managing Invoicing Review, approve, and pay invoices Analyze spend for a specific project, timeframe, or PO Identify missing/inaccurate POs Review Paperless Billing options Identify and act upon oldest invoices 11 Data Insights (Reporting) Seven standard reports are Reports can also be customized already built for quick access:with the options to saveany changes for future use, as well as Equipment On Rent schedulethe report to be Invoice History automatically emailed to you or Invoice History with Details your team at a time and cadence Payment History of your choice. Rental History 12 Real-Time Awareness (Account Activity) Utilize the Account Activity tab to proactively manage transactions by: Reviewing the last 30 days of activity Subscribing to and of the 22 customizable notifications based on an event, Jobsite, or PO - 13 THANK YOU! sunbeltrentals.com ecommerce@sunbeltrentals.com WPMVNF!34 DBMM!PS!DMJDL GVMM!MJOF!DBUBMPH 2.911.778.:439 tvocfmusfoubmt/dpn!!!! BWBJMBCJMJUZ!!}!!SFMJBCJMJUZ!!}!!FBTF UIF!QPXFS!PG!! TVOCFMU Tvocfmu!Sfoubmt!ifmqt!qspgfttjpobmt!boe!ep.ju.zpvstfmgfst!hfu!uijoht!epof/!Xjui!b!ijhimz! ejwfstjgjfe!pggfsjoh!pg!frvjqnfou!boe!tfswjdft!bwbjmbcmf-!xf!ifmq!dvtupnfst!fyufoe!uifjs! dbqbcjmjujft-!dpnqmfuf!qspkfdut!po.ujnf!boe!iboemf!ujnft!pg!dsjtjt/!Op!nbuufs!jg!zpv!bsf!jo! dpnnfsdjbm-!joevtusjbm-!sftjefoujbm!ps!nvojdjqbm!joevtusjft-!xf!bsf!dpotuboumz!bewbodjoh!uif! jefb!pg!xibu!b!sfoubm!frvjqnfou!dpnqboz!dbo!ep!gps!jut!dvtupnfst/ WJTJU!TVOCFMUSFOUBMT/DPN!UP!GJOE!PVU! 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SBOFT D 79 NBOBHF!BMM!BTQFDUT!PG!ZPVS!TVOCFMU!SFOUBMT!FRVJQNFOU!BOE!BDDPVOU!GSPN!ZPVS!NPCJMF!EFWJDF/ 040924-URI Solicitation Number: RFP #040924 CONTRACT This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and United Rentals (North America), Inc., 100 First Stamford Place, Suite 700, Stamford, CT 06902 (Supplier). Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada. Sourcewell issued a public solicitation for Rental Equipment, Products, and Related Services from which Supplier was awarded a contract. Supplier desires to contract with Sourcewell to provide equipment, products, or services to {ƚǒƩĭĻǞĻƌƌ ğƓķ ƷŷĻ ĻƓƷźƷźĻƭ ƷŷğƷ ğĭĭĻƭƭ {ƚǒƩĭĻǞĻƌƌ͸ƭ ĭƚƚƦĻƩğƷźǝĻ ƦǒƩĭŷğƭźƓŭ ĭƚƓƷƩğĭƷƭ (Participating Entities). 1. TERM OF CONTRACT A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below. EXPIRATION DATE AND EXTENSION. This Contract expires June 11, 2028, unless it is cancelled sooner pursuant to Article 22. This Contract allows up to three additional one-year extensions upon the request of Sourcewell and written agreement by Supplier. Sourcewell retains the right to consider additional extensions beyond seven years as required under exceptional circumstances. B. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract. Rev. 3/2022 1 040924-URI 2. EQUIPMENT, PRODUCTS, OR SERVICES A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. {ǒƦƦƌźĻƩ͸ƭ 9ƨǒźƦƒĻƓƷͲ tƩƚķǒĭƷƭͲ ƚƩ {ĻƩǝźĭĻƭ tƩƚƦƚƭğƌ ΛtƩƚƦƚƭğƌΜ źƭ ğƷƷğĭŷĻķ ğƓķ źƓĭƚƩƦƚƩğƷĻķ into this Contract. All Equipment and Products provided under this Contract must be new and the current model. Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated źƓ {ǒƦƦƌźĻƩ͸ƭ ƦƩƚķǒĭƷ ğƓķ ƦƩźĭźƓŭ ƌźƭƷ͵ ƓƌĻƭƭ ğŭƩĻĻķ to by the Participating Entities in advance, Equipment or Products must be delivered as operatźƚƓğƌ Ʒƚ ƷŷĻ tğƩƷźĭźƦğƷźƓŭ 9ƓƷźƷǤ͸ƭ ƭźƷĻ͵ This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed. A. WARRANTY. The following warranties apply: For equipment rentals by a Participating Entity, Supplier warrants that upon delivery the equipment rented hereunder will be in good working condition. If the equipment is not in good working condition upon delivery, Supplier shall promptly repair or replace the equipment at its sole cost and expense. If the equipment requires repair or replacement during the rental period, Supplier will promptly repair or replace the equipment at its sole cost and expense; ƦƩƚǝźķĻķͲ ŷƚǞĻǝĻƩͲ źŅ ƷŷĻ ƩĻƦğźƩ ƚƩ ƩĻƦƌğĭĻƒĻƓƷ źƭ ƓĻĭĻƭƭğƩǤ ķǒĻ Ʒƚ tğƩƷźĭźƦğƷźƓŭ 9ƓƷźƷǤ͸ƭ ğĬǒƭĻͲ misuse, or neglect, then Participating Entity will be responsible for the cost of such repair or replacement. EXCEPT AS SET FORTH HEREIN SUPPLIER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE RENTAL OF EQUIPMENT. For equipment purchases by a Participating Entity, the only warranty provided with the equipment sold herein is the warranty provided by the original equipment manufacturer Λͻh9aͼΜ͵ {ǒƦƦƌźĻƩ Ǟźƌƌ Ʀğƭƭ ƷŷƩƚǒŭŷ ğƌƌ ǞğƩƩğƓƷźĻƭͲ Ʒƚ ƷŷĻ ĻǣƷĻƓƷ ğƌƌƚǞğĬƌĻͲ ƷŷğƷ ƷŷĻ h9a provides. If a warranty claim is approved by the OEM and the OEM authorizes Supplier to repair or replace the equipment, Supplier will do so. ALL WARRANTIES, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY EXCLUDED AND DISCLAIMED. For services provided to a Participating Entity, Supplier warrants the services will be performed in a good and workmanlike manner. The duration of the warranty shall be 30 days after the service is completed. If during the 30-day warranty period the equipment requires additional service, because of defective original service or a defective replacement part(s), then Supplier will re-perform the defective service and/or replace the defective part at its sole cost and expense. If the equipment has been subject to abuse, misuse, or neglect, Supplier shall have no Rev. 3/2022 2 040924-URI obligation to re-perform the service or replace any part(s). The only warranty on replacement ƦğƩƷƭ ƦƩƚǝźķĻķ ǞźƷŷ {ǒƦƦƌźĻƩ͸ƭ ƭĻƩǝźĭĻ ŷĻƩĻźƓ is the warranty provided by the original ĻƨǒźƦƒĻƓƷ ƒğƓǒŅğĭƷǒƩĻƩ Λͻh9aͼΜ͵ {ǒƦƦƌźĻƩ Ǟźƌƌ pass through all warranties, to the extent allowable, that the OEM provides. If a warranty claim on such replacement part is approved by the OEM and the OEM authorizes Supplier to repair or replace the part, Supplier will do so. EXCEPT AS SET FORTH HEREIN SUPPLIER DISCLAIMS ALL OTHER WARRANTIES EXPRESS OR IMPLIED WITH RESPECT TO REPLACEMENT PARTS AND SERVICE OF EQUIPMENT. B. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or ğǒƷŷĻƓƷźĭğƷĻ {ǒƦƦƌźĻƩ͸ƭ ğǒƷŷƚƩźǩĻķ ķĻğƌĻƩƭͲ ķźƭƷƩźĬǒƷƚƩƭͲ ƚƩ ƩĻƭĻƌƌĻƩƭ ƩĻƌğƷźǝĻ Ʒƚ ƷŷĻ 9ƨǒźƦƒĻƓƷͲ Products, and Services offered under this Contract, which will be incorporated into this /ƚƓƷƩğĭƷ ĬǤ ƩĻŅĻƩĻƓĭĻ͵ LƷ źƭ ƷŷĻ {ǒƦƦƌźĻƩ͸ƭ ƩĻƭƦonsibility to ensure Sourcewell receives the most current information. 3. PRICING All Equipment, Products, or Services under this Contract will be priced at or below the price ƭƷğƷĻķ źƓ {ǒƦƦƌźĻƩ͸ƭ tƩƚƦƚƭğƌ͵ When providing pricing quotes to Participating Entities, all pricing quoted must reflect a tğƩƷźĭźƦğƷźƓŭ 9ƓƷźƷǤ͸ƭ ƷƚƷğƌ ĭƚƭƷ of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating EnƷźƷǤ͸ƭ ƩĻƨǒĻƭƷĻķ ķĻƌźǝĻƩǤ ƌƚĭğƷźƚƓ͵ Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase. A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities. Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity. Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition. Rev. 3/2022 3 040924-URI Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products. B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax- exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity. C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract. When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below. Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities. 4. PRODUCT AND PRICING CHANGE REQUESTS Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator. At a minimum, the request must: Identify the applicable Sourcewell contract number; Clearly specify the requested change; Provide sufficient detail to justify the requested change; Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged. A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference. 5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS Rev. 3/2022 4 040924-URI A. t!wL/Lt!Lhb͵ {ƚǒƩĭĻǞĻƌƌ͸ƭ ĭƚƚƦĻƩğƷźǝĻ ĭƚƓƷƩğcts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities. The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services unķĻƩ Ʒŷźƭ /ƚƓƷƩğĭƷ͵ ! tğƩƷźĭźƦğƷźƓŭ 9ƓƷźƷǤ͸ƭ authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating 9ƓƷźƷǤ͸ƭ ǒƭĻ ƚŅ Ʒŷźƭ /ƚƓƷƩğĭƷ źƭ ğƷ ƷŷĻ tğƩƷźĭźƦğƷźƓŭ 9ƓƷźƷǤ͸ƭ ƭƚle convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source. Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract. B. t .\[L/ C!/L\[LL9{͵ {ǒƦƦƌźĻƩ͸ƭ ĻƒƦƌƚǤĻĻƭ ƒğǤ ĬĻ ƩĻƨǒźƩĻķ Ʒƚ ƦĻƩŅƚƩƒ ǞƚƩƉ ğƷ ŭƚǝĻƩƓƒĻƓƷΏ ƚǞƓĻķ ŅğĭźƌźƷźĻƭͲ źƓĭƌǒķźƓŭ ƭĭŷƚƚƌƭ͵ {ǒƦƦƌźĻƩ͸ƭ employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws. 6. PARTICIPATING ENTITY USE AND PURCHASING A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract. {ǒƦƦƌźĻƩ͸ƭ ğĭĭĻƦƷğĬƌĻ ŅƚƩƒƭ ƚŅ ƦğǤƒĻƓƷ ğƩĻ źƓĭƌǒķĻķ źƓ źƷƭ ğƷƷğĭŷĻķ tƩƚƦƚƭğƌ͵ tğƩƷźĭźƦğƷźƓŭ Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity. B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), Rev. 3/2022 5 040924-URI or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract. C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e- commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement. D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events: 1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or 2. Federal, state, or provincial laws or regulations prohibit the purchase or change the tğƩƷźĭźƦğƷźƓŭ 9ƓƷźƷǤ͸ƭ ƩĻƨǒźƩĻƒĻƓƷƭ͵ E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a tğƩƷźĭźƦğƷźƓŭ 9ƓƷźƷǤ͸ƭ ƚƩķĻƩ Ǟźƌƌ ĬĻ ķĻƷĻƩƒźƓĻķ ĬǤ the Participating Entity making the purchase. 7. CUSTOMER SERVICE A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for: Maintenance and management of this Contract; Timely response to all Sourcewell and Participating Entity inquiries; and Business reviews to Sourcewell and Participating Entities, if applicable. B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information. 8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT Rev. 3/2022 6 040924-URI A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made). The Report must contain the following fields: Participating Entity Name (e.g., City of Staples Highway Department); Participating Entity Physical Street Address; Participating Entity City; Participating Entity State/Province; Participating Entity Zip/Postal Code; Participating Entity Contact Name; Participating Entity Contact Email Address; Participating Entity Contact Telephone Number; Sourcewell Assigned Entity/Participating Entity Number; Item Purchased Description; Item Purchased Price; Sourcewell Administrative Fee Applied; and Date Purchase was invoiced/sale was recognized as revenue by Supplier. B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee. The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should ƓƚƷĻ ƷŷĻ {ǒƦƦƌźĻƩ͸ƭ ƓğƒĻ ğƓķ {ƚǒƩĭĻǞĻƌƌΏğƭƭźŭƓĻķ ĭƚƓƷƩğĭƷ ƓǒƒĬĻƩ źƓ ƷŷĻ ƒĻƒƚͳ ğƓķ ƒǒƭƷ ĬĻ ƒğźƌĻķ Ʒƚ ƷŷĻ ğķķƩĻƭƭ ğĬƚǝĻ ͻ!ƷƷƓʹ !ĭĭƚǒƓƷƭ wĻĭĻźǝğĬƌĻͼ ƚƩ ƩĻƒźƷƷĻķ ĻƌĻĭƷƩƚƓźĭğƌƌǤ Ʒƚ {ƚǒƩĭĻǞĻƌƌ͸ƭ ĬğƓƉźƓŭ źƓƭƷźƷǒƷźƚƓ ƦĻƩ {ƚǒƩĭĻǞĻƌƌ͸ƭ Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter. Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract. In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in Rev. 3/2022 7 040924-URI any subsequent solicitation. In the event this Contract is cancelled by either party prior to the /ƚƓƷƩğĭƷ͸ƭ ĻǣƦźƩğƷźƚƓ ķğƷĻͲ ƷŷĻ ğķƒźƓźƭƷƩğƷźǝĻ fee payment will be due no more than 30 days from the cancellation date. 9. AUTHORIZED REPRESENTATIVE Sourcewell's Authorized Representative is its Chief Procurement Officer. {ǒƦƦƌźĻƩ͸ƭ !ǒƷŷƚƩźǩĻķ wĻƦƩĻƭĻƓƷğƷźǝĻ źƭ ƷŷĻ ƦĻƩƭƚƓ ƓğƒĻķ źƓ ƷŷĻ {ǒƦƦƌźĻƩ͸ƭ tƩƚƦƚƭğƌ͵ LŅ {ǒƦƦƌźĻƩ͸ƭ !ǒƷŷƚƩźǩĻķ wĻƦƩĻƭĻƓƷğƷźǝĻ ĭŷğƓŭĻƭ ğƷ ğƓǤ ƷźƒĻ ķǒƩźƓŭ Ʒŷźƭ /ƚƓƷƩğĭƷͲ {ǒƦƦƌźĻƩ ƒǒƭƷ promptly notify Sourcewell in writing. 10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract. B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid. C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties. D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties. E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern. F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent. Rev. 3/2022 8 040924-URI 11. INDEMNITY AND HOLD HARMLESS As applicable, Supplier agrees to indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes ƚŅ ğĭƷźƚƓͲ źƓĭƌǒķźƓŭ ğƷƷƚƩƓĻǤƭ͸ ŅĻĻƭ źƓĭǒƩƩĻķ ĬǤ {ƚurcewell or its Participating Entities, caused by the negligent acts or omissions of the SuppƌźĻƩ ƚƩ źƷƭ ğŭĻƓƷƭ ƚƩ ĻƒƦƌƚǤĻĻƭ͵ {ƚǒƩĭĻǞĻƌƌ͸ƭ ƩĻƭƦƚƓƭźĬźƌźƷǤ Ǟźƌƌ ĬĻ ŭƚǝĻƩƓĻķ ĬǤ ƷŷĻ {ƷğƷĻ ƚŅ aźƓƓĻƭƚƷğ͸ƭ ƚƩƷ \[źğĬźƌźƷǤ !ĭƷ ΛaźƓƓĻƭƚƷğ Statutes Chapter 466) and other applicable law. {ƚǒƩĭĻǞĻƌƌ͸ƭ ƩĻƭƦƚƓƭźĬźƌźƷǤ Ǟźƌƌ ĬĻ ŭƚǝĻƩƓĻķ ĬǤ ƷŷĻ {ƷğƷĻ ƚŅ aźƓƓĻƭƚƷğ͸ƭ ƚƩƷ \[źğĬźƌźƷǤ !ĭƷ ΛaźƓƓĻƭƚƷğ {ƷğƷǒƷĻƭ /ŷğƦƷĻƩ ЍЏЏΜ ğƓķ ƚƷŷĻƩ applicable law. 12. GOVERNMENT DATA PRACTICES Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract. 13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY 1. Grant of License. During the term of this Contract: a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and ƦƩƚƒƚƷźƚƓğƌ ƒğƷĻƩźğƌƭ ŅƚƩ ƷŷĻ ƦǒƩƦƚƭĻ ƚŅ ƒğƩƉĻƷźƓŭ {ƚǒƩĭĻǞĻƌƌ͸ƭ ƩĻƌğƷźƚƓƭŷźƦ ǞźƷŷ Supplier. b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and ƌźĭĻƓƭĻ Ʒƚ ǒƭĻ {ǒƦƦƌźĻƩ͸ƭ ƷƩğķĻƒğƩƉƭ źƓ ğķvertising and promotional materials for the ƦǒƩƦƚƭĻ ƚŅ ƒğƩƉĻƷźƓŭ {ǒƦƦƌźĻƩ͸ƭ ƩĻƌğƷźƚƓƭŷźƦ ǞźƷŷ {ƚǒƩĭĻǞĻƌƌ͵ 2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents ΛĭƚƌƌĻĭƷźǝĻƌǤ ͻtĻƩƒźƷƷĻķ {ǒĬƌźĭĻƓƭĻĻƭͼΜ źƓ advertising and promotional materials for the purƦƚƭĻ ƚŅ ƒğƩƉĻƷźƓŭ ƷŷĻ tğƩƷźĻƭ͸ ƩĻƌğƷźƚƓƭŷźƦ to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees. 3. Use; Quality Control. a. bĻźƷŷĻƩ ƦğƩƷǤ ƒğǤ ğƌƷĻƩ ƷŷĻ ƚƷŷĻƩ ƦğƩƷǤ͸ƭ ƷƩğķĻƒğƩƉƭ ŅƩƚƒ ƷŷĻ ŅƚƩƒ ƦƩƚǝźķĻķ and must comply with removal requests as to specific uses of its trademarks or logos. b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the ƚƷŷĻƩ ƦğƩƷǤ͸ƭ ƷƩğķĻƒğƩƉƭ ƚƓƌǤ źƓ ŭƚƚķ ŅğźƷŷ ğƓķ źƓ ğ ķźŭƓźŅźĻķ ƒğƓƓĻƩ ĭƚƓƭźƭƷĻƓƷ ǞźƷŷ ƭǒĭŷ ƦğƩƷǤ͸ƭ ǒƭĻ ƚŅ ƷŷĻ ƷƩğķĻƒğƩƉƭ͵ ƦƚƓ ǞƩźƷƷĻƓ ƓƚƷźĭĻ Ʒƚ ƷŷĻ ĬƩĻğĭŷźƓŭ ƦğƩƷǤͲ ƷŷĻ Rev. 3/2022 9 040924-URI breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated. 4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, ğƓķ ƷŷĻ ƌźƉĻ ĬĻğƩźƓŭ ƷŷĻ ƚƷŷĻƩ ƦğƩƷǤ͸ƭ ƓğƒĻ ƚƩ ƌƚŭƚ ΛĻǣĭĻƦƷźƓŭ {ƚǒƩĭĻǞĻƌƌ͸ƭ ƦƩĻΏƦƩźƓƷĻķ catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose ƚŅ źƷ ğĭĭƚƩķźƓŭ Ʒƚ {ƚǒƩĭĻǞĻƌƌ͸ƭ ǞƩźƷƷĻƓ ķźƩĻĭƷźƚƓƭ͵ B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract. C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract. D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services. 14. GOVERNING LAW, JURISDICTION, AND VENUE The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota. 15. FORCE MAJEURE Neither party to this Contract will be held responsible for delay or default caused by acts of God ƚƩ ƚƷŷĻƩ ĭƚƓķźƷźƚƓƭ ƷŷğƷ ğƩĻ ĬĻǤƚƓķ ƷŷğƷ ƦğƩƷǤ͸ƭ ƩĻğƭƚƓğĬƌĻ ĭƚƓƷƩƚƌ͵ ! ƦğƩƷǤ ķĻŅğǒƌƷźƓŭ ǒƓķĻƩ this provision must provide the other party prompt written notice of the default. 16. SEVERABILITY If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed. Rev. 3/2022 10 040924-URI 17. PERFORMANCE, DEFAULT, AND REMEDIES A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows: 1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties. 2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue. 3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed. B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default: 1. Nonperformance of contractual requirements, or 2. A material breach of any term or condition of this Contract. The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may: Exercise any remedy provided by law or equity, or Terminate the Contract or any portion thereof, including any orders issued against the Contract. 18. INSURANCE A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or ğǒƷŷƚƩźǩĻķ Ʒƚ ķƚ ĬǒƭźƓĻƭƭ źƓ ƷŷĻ {ƷğƷĻ ƚŅ aźƓƓĻƭƚƷğ ŷğǝźƓŭ ğƓ ͻ!a .9{ͼ ƩğƷźƓŭ ƚŅ !Ώ ƚƩ ĬĻƷƷĻƩͲ with coverage and limits of insurance not less than the following: 1. ‘ƚƩƉĻƩƭ͸ /ƚƒƦĻƓƭğƷźƚƓ ğƓķ 9ƒƦƌƚǤĻƩ͸ƭ \[źğĬźƌźƷǤ͵ ‘ƚƩƉĻƩƭ͸ /ƚƒƦĻƓƭğƷźƚƓʹ !ƭ ƩĻƨǒźƩĻķ ĬǤ ğƓǤ ğƦƦƌźĭğĬƌĻ ƌğǞ ƚƩ ƩĻŭǒƌğƷźƚƓ͵ Rev. 3/2022 11 040924-URI Employer's Liability Insurance: must be provided in amounts not less than listed below: Minimum limits: $500,000 each accident for bodily injury by accident $500,000 policy limit for bodily injury by disease $500,000 each employee for bodily injury by disease 2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office ΛͻL{hͼΜ /ƚƒƒĻƩĭźğƌ DĻƓĻƩğƌ \[źğĬźƌźƷǤ CƚƩƒ CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract. Minimum Limits: $1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury $2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate 3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent. Minimum Limits: $1,000,000 each accident, combined single limit 4. Umbrella Insurance. During the term of this Contract, Supplier will maintain ǒƒĬƩĻƌƌğ ĭƚǝĻƩğŭĻ ƚǝĻƩ 9ƒƦƌƚǤĻƩ͸ƭ \[źğĬźƌźƷǤͲ /ƚƒƒĻƩĭźğƌ DĻƓĻƩğƌ \[źğĬźƌźƷǤͲ ğƓķ Commercial Automobile. Minimum Limits: $2,000,000 5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims whźĭŷ ƒğǤ ğƩźƭĻ ŅƩƚƒ ŅğźƌǒƩĻ ƚŅ {ǒƦƦƌźĻƩ͸ƭ security resulting in, but not limited to, computer attacks, unauthorized access, ķźƭĭƌƚƭǒƩĻ ƚŅ ƓƚƷ ƦǒĬƌźĭ ķğƷğ Α źƓĭƌǒķźƓŭ but not limited to, confidential or private information, transmission of a computer virus, or denial of service. Minimum limits: Rev. 3/2022 12 040924-URI $2,000,000 per occurrence $2,000,000 annual aggregate Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default. B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf. Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract. C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including ƷŷĻźƩ ƚŅŅźĭĻƩƭͲ ğŭĻƓƷƭͲ ğƓķ ĻƒƦƌƚǤĻĻƭͲ ğƭ ğƓ ğķķźƷźƚƓğƌ źƓƭǒƩĻķ ǒƓķĻƩ ƷŷĻ {ǒƦƦƌźĻƩ͸ƭ ĭƚƒƒĻƩĭźğƌ general liability insurance policy with respect to liğĬźƌźƷǤ ğƩźƭźƓŭ ƚǒƷ ƚŅ ğĭƷźǝźƷźĻƭͲ ͻƚƦĻƩğƷźƚƓƭͲͼ ƚƩ ͻǞƚƩƉͼ ƦĻƩŅƚƩƒĻķ ĬǤ ƚƩ ƚƓ ĬĻŷğƌŅ ƚŅ {ǒƦƦƌźĻƩͲ ğƓķ ƦƩƚķǒĭƷƭ ğƓķ ĭƚƒƦƌĻƷĻķ ƚƦĻƩğƷźƚƓƭ ƚŅ Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors. E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention. Rev. 3/2022 13 040924-URI 19. COMPLIANCE A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold. B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities. 20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing. Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time. 21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER UNITED STATES FEDERAL AWARDS OR OTHER AWARDS Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all ƩĻŅĻƩĻƓĭĻƭ Ʒƚ ͻŅĻķĻƩğƌͼ ƭŷƚǒƌķ ĬĻ źƓƷĻƩƦƩĻƷĻķ Ʒƚ ƒĻğƓ ƷŷĻ ƓźƷĻķ {ƷğƷĻƭ ŅĻķĻƩğƌ ŭƚǝĻƩƓƒĻƓƷ͵ The following list only applies when a ParticźƦğƷźƓŭ 9ƓƷźƷǤ ğĭĭĻƭƭĻƭ {ǒƦƦƌźĻƩ͸ƭ 9ƨǒźƦƒĻƓƷͲ Products, or Services with United States federal funds. A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all ĭƚƓƷƩğĭƷƭ ƷŷğƷ ƒĻĻƷ ƷŷĻ ķĻŅźƓźƷźƚƓ ƚŅ ͻŅĻķĻƩğƌƌǤ ğƭƭźƭƷĻķ ĭƚƓƭƷƩǒĭƷźƚƓ ĭƚƓƷƩğĭƷͼ źƓ ЍЊ /͵C͵w͵ ή ЏЉΏ 1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in ğĭĭƚƩķğƓĭĻ ǞźƷŷ 9ǣĻĭǒƷźǝĻ hƩķĻƩ ЊЊЋЍЏͲ ͻ9ƨǒğƌ 9ƒƦƌƚǤƒĻƓƷ hƦƦƚƩƷǒƓźƷǤͼ ΛЌЉ Cw ЊЋЌЊВͲ ЊЋВЌЎͲ Ќ /͵C͵w͵ ήͲ ЊВЏЍΏЊВЏЎ /ƚƒƦ͵Ͳ Ʀ͵ ЌЌВΜͲ ğƭ ğƒĻƓķĻķ ĬǤ 9ǣĻĭǒƷźǝĻ hƩķĻƩ ЊЊЌАЎͲ ͻ!ƒĻƓķźƓŭ 9ǣĻĭǒƷźǝĻ hƩķĻƩ ЊЊЋЍЏ wĻƌğƷźƓŭ Ʒƚ 9ƨǒğƌ 9ƒƦƌƚǤƒĻƓƷ hƦƦƚƩƷǒƓźƷǤͲͼ ğƓķ źƒƦƌĻƒĻƓƷźƓŭ Rev. 3/2022 14 040924-URI ƩĻŭǒƌğƷźƚƓƭ ğƷ ЍЊ /͵C͵w͵ ή ЏЉͲ ͻhŅŅźĭĻ ƚŅ Federal Contract Compliance Programs, Equal 9ƒƦƌƚǤƒĻƓƷ hƦƦƚƩƷǒƓźƷǤͲ 5ĻƦğƩƷƒĻƓƷ ƚŅ \[ğĬƚƩ͵ͼ ŷĻ Ļƨǒğƌ ƚƦƦƚƩƷǒƓźƷǤ ĭƌğǒƭĻ źƭ źƓĭƚƩƦƚƩğƷĻķ herein by reference. B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, ͻ\[ğĬƚƩ {ƷğƓķğƩķƭ tƩƚǝźƭźƚƓƭ !ƦƦƌźĭğĬƌĻ Ʒƚ /ƚƓƷƩğĭƷƭ /ƚǝĻƩźƓŭ CĻķĻƩğƌƌǤ CźƓğƓĭĻķ ğƓķ !ƭƭźƭƷĻķ /ƚƓƭƷƩǒĭƷźƚƓͼΜ͵ LƓ ğĭĭƚƩķğƓĭĻ ǞźƷŷ ƷŷĻ ƭƷğƷǒƷĻͲ ĭƚƓƷƩğĭƷƚƩƭ ƒǒƭƷ ĬĻ ƩĻƨǒźƩĻķ Ʒƚ ƦğǤ ǞğŭĻƭ Ʒƚ laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with ƷŷĻ /ƚƦĻƌğƓķ ͻ!ƓƷźΏYźĭƉĬğĭƉͼ !ĭƷ ΛЍЉ ͵{͵/͵ ή ЌЊЍЎΜͲ ğƭ ƭǒƦƦƌĻƒĻƓƷĻķ ĬǤ 5ĻƦğƩƷƒĻƓƷ ƚŅ \[ğĬƚƩ ƩĻŭǒƌğƷźƚƓƭ ΛЋВ /͵C͵w͵ ή ЌͲ ͻ/ƚƓƷƩğĭƷƚƩƭ ğƓķ {ǒĬĭontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants ŅƩƚƒ ƷŷĻ ƓźƷĻķ {ƷğƷĻƭͼΜ͵ ŷĻ !ĭƷ ƦƩƚǝźķĻƭ ƷŷğƷ each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions. C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5). Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above. Rev. 3/2022 15 040924-URI D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award ƒĻĻƷƭ ƷŷĻ ķĻŅźƓźƷźƚƓ ƚŅ ͻŅǒƓķźƓŭ ğŭƩĻĻƒĻƓƷͼ ǒƓķĻƩ ЌА /͵C͵w͵ ή ЍЉЊ͵ЋΛğΜ ğƓķ ƷŷĻ ƩĻĭźƦźĻƓƷ ƚƩ subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, ķĻǝĻƌƚƦƒĻƓƷğƌͲ ƚƩ ƩĻƭĻğƩĭŷ ǞƚƩƉ ǒƓķĻƩ ƷŷğƷ ͻŅǒƓķźƓŭ ğŭƩĻĻƒĻƓƷͲͼ ƷŷĻ ƩĻĭźƦźĻƓƷ ƚƩ ƭǒĬƩĻĭźƦźĻƓƷ ƒǒƭƷ ĭƚƒƦƌǤ ǞźƷŷ ƷŷĻ ƩĻƨǒźƩĻƒĻƓƷƭ ƚŅ ЌА /͵C͵w͵ ή ЍЉЊͲ ͻwźŭŷƷƭ Ʒƚ LƓǝĻƓƷźƚƓƭ ağķĻ ĬǤ bƚƓƦƩƚŅźƷ Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative !ŭƩĻĻƒĻƓƷƭͲͼ ğƓķ ğƓǤ źƒƦƌĻƒĻƓƷźƓŭ ƩĻŭǒƌğƷźƚƓs issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above. E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above. F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 /͵C͵w͵ ή ЊВБВ /ƚƒƦ͵Ͳ Ʀ͵ ЋЌЎΜͲ ͻ5ĻĬğƩƒĻƓƷ ğƓķ {ǒƭƦĻƓƭźƚƓ͵ͼ {!a 9ǣĭƌǒƭźƚƓƭ ĭƚƓƷğźƓƭ ƷŷĻ ƓğƒĻƭ of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency. G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352). Rev. 3/2022 16 040924-URI H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed. I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act. J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition. K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and ƩĻĭƚƩķƭ ƚŅ {ǒƦƦƌźĻƩ ƷŷğƷ ğƩĻ ķźƩĻĭƷƌǤ ƦĻƩƷźƓĻƓƷ Ʒƚ {ǒƦƦƌźĻƩ͸ƭ ķźƭĭŷğƩŭĻ ƚŅ źƷƭ ƚĬƌźŭğƷźƚƓƭ ǒƓķĻƩ this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The ƩźŭŷƷ ğƌƭƚ źƓĭƌǒķĻƭ ƷźƒĻƌǤ ğƓķ ƩĻğƭƚƓğĬƌĻ ğĭĭĻƭƭ Ʒƚ {ǒƦƦƌźĻƩ͸ƭ ƦĻƩƭƚƓƓĻƌ ŅƚƩ ƷŷĻ ƦǒƩƦƚƭĻ ƚŅ interview and discussion relating to such documents. L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval. N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user. Rev. 3/2022 17 040924-URI O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and {ƷğƷĻƒĻƓƷƭΜ ğƦƦƌźĻƭ Ʒƚ ƷŷĻ {ǒƦƦƌźĻƩ͸ƭ ğĭƷźƚƓƭ ƦĻƩƷğźƓźƓŭ Ʒƚ Ʒŷźƭ /ƚƓƷƩğĭƷ ƚƩ ğƓǤ ƦǒƩĭŷğƭĻ ĬǤ ğ Participating Entity. P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments. Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested. R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S. Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism. S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216. T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322. 22. CANCELLATION Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 ķğǤƭ͸ ǞƩźƷƷĻƓ ƓƚƷźĭĻ Ʒƚ ƷŷĻ ƚƷŷĻƩ ƦğƩƷǤ͵ IƚǞĻǝĻƩͲ {ƚǒƩĭĻǞĻƌƌ ƒğǤ ĭğƓĭĻƌ Ʒŷźƭ /ƚƓƷƩğĭƷ źƒƒĻķźğƷĻƌǤ ǒƦƚƓ ķźƭĭƚǝĻƩǤ ƚŅ ğ ƒğƷĻƩźğƌ ķĻŅĻĭƷ źƓ ğƓǤ ĭĻƩƷźŅźĭğƷźƚƓ ƒğķĻ źƓ {ǒƦƦƌźĻƩ͸ƭ Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation. Rev. 3/2022 18 040924-URI Sourcewell United Rentals (North America), Inc. By: __________________________ By: __________________________ Jeremy Schwartz Craig Schmidt Title: Chief Procurement Officer Title: Vice President National Accounts Date: ________________________ Date: ________________________ Rev. 3/2022 19 Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Table16:DepthandBreadth - PublicWorksandPublicUtilityEquipment Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary. Proposers seeking an award in Category 1 or Category 3 must include at least one solution offered within the scope of Public Works and Public Utility Equipment. See RFP Section II. B. 1. for details. WewillnotbesubmittingforTable16:Depthand Breadth - PublicWorksandPublicUtilityEquipment Line CategoryorTypeOffered*Comments Item Yes 93SewerVac&HydroorAirExcavators No Yes 94StreetMaintenance & Cleaning Equipment No Yes 95BucketTrucks No Yes 96Diggers No Yes 97Roll-OffTrucks No Yes 98RefuseTrucks No Yes 99Waste & DebrisHandlingEquipment No ExceptionstoTerms,Conditions,orSpecificationsForm Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text. Documents Ensureyoursubmissiondocument(s)conforms to thefollowing: 1.DocumentsinPDFformat are preferred.DocumentsinWord,Excel,orcompatibleformatsmayalsobeprovided. 2.Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibilityto ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell. 3.Sourcewellmayrejectanyresponsewhereanydocument(s)cannotbeopenedandviewedbySourcewell. 4.If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. Ifthe zipped file contains more than one (1) document,ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." BidNumber:RFP040924VendorName:UNITEDRENTALS(NORTHAMERICA),INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Bid Number: RFP 040924Vendor Name: UNITED RENTALS (NORTH AMERICA), INC. Public Works Agency www.santa-ana.org/pw Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: NPDES Stormwater Permit Implementation Agreement AGENDA TITLE Amended and Restated Agreement to Fund National Pollutant Discharge Elimination System Permit Implementation (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute a Cooperative Agreement with the County of Orange and Orange County Cities to fund National Pollutant Discharge Elimination System (NPDES) Permit Implementation (Agreement No. A-2026-XXX). GOVERNMENT CODE §84308 APPLIES: No DISCUSSION Authorized by the Federal Clean Water Act, the National Pollutant Discharge Elimination System (NPDES) permit program was established in 1972 to regulate pollutant discharges to waters of the United States. The City is a co-permittee under the North Orange County Municipal NPDES Permit, which is issued by the Santa Ana Regional Water Quality Control Board. The original Countywide NPDES Stormwater Permit Implementation Agreement (Agreement), executed in 1990 and amended in 1993 and 2002, established a cooperative framework for implementing the Orange County Stormwater Program to meet NPDES Permit requirements and improve surface water quality. The Agreement allows for collaboration, consistency, and cost sharing of regional compliance strategies, municipal staff training, watershed monitoring and reporting efforts, and other NPDES program elements required by each of the Permittees. While the current Agreement has allowed the City of Santa Ana to achieve compliance with the Federal Clean Water Act and associated Water Quality Control Board requirements, state regulatory requirements have changed significantly since the Agreement was last updated in 2002. Water quality priorities have become increasingly complex, requiring targeted solutions including stormwater treatment projects to meet ongoing and forthcoming compliance requirements. NPDES Permit Implementation Agreement April 7, 2026 Page 2 The proposed 2026 amendment to the Agreement reflects current regulatory requirements, administrative practices, and programmatic needs. It continues the Countywide approach among the Permittees (Orange County cities & County) to implement regional stormwater management strategies, and also provides added flexibility in designing and developing local watershed-specific strategies, programs, and projects. The amendment also formalizes the consultation process with the Orange County City Managers Association (OCCMA). The term of the Agreement is indefinite, unless amended or terminated in accordance with the terms in the Agreement. Key provisions of the amended and restated Agreement include: Continued designation of the County as the administrator of the regional Orange County Stormwater Program. Clarification of responsibilities for each Permittee, including compliance reporting, monitoring, and implementation of Best Management Practices (BMPs). Engagement with the OCCMA for strategic input on compliance and funding. Updated collaborative review process for annual operating budgets, including new sub-budgets to be established with smaller groups of Permittees to support development of targeted water quality projects and programs. Continues the existing cost sharing formula between Permittees based on land area and population, with the Orange County Flood Control District contributing 10% and the County and Cities sharing the remaining 90% for the annual operating budget countywide. For new sub-budgets, the same approach will be used to share costs amongst those participating agencies. The shared cost budget developed annually for this Agreement maintains the existing cost sharing formula based on land area and population for the unincorporated County and 34 Orange County cities. Historically, the City’s portion of the shared cost budget has been approximately 5.6%. Staff recommends the approval of this Agreement for continued compliance with federal and state regulations. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. Approval of the Agreement allows the City to continue to comply with the Federal Clean Water Act and the related regulations promulgated by the State Water Quality Control Board. FISCAL IMPACT Funding is included in the approved FY 2025-26 budget and approval of this agreement does not result in an additional fiscal impact for the current fiscal year. The Fiscal Year 2026-27 funding for this Agreement is anticipated to be approximately $567,959. Subsequent funding for future years will be included in the proposed budgets for City Council consideration. NPDES Permit Implementation Agreement April 7, 2026 Page 3 Fiscal Accounting Unit - Fund Accounting Unit, Amount YearAccount No. DescriptionAccount Description (Project No.) Federal Clean Federal Clean Water Water Protection Enterprise, 2026-2705717640-62300$567,959 Protection Contractual Services- EnterpriseProfessional TOTAL:$567,959 EXHIBIT(S) 1.Amended NPDES Stormwater Permit Implementation Agreement Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager FYIJCJU2 AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM STORMWATER PERMIT IMPLEMENTATION AGREEMENT This AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM STORMWATER PERMIT IMPLEMENTATION AGREEMENT (“AGREEMENT”), for purposes of identification numbered \[D02-048\], and which may be alternatively referred to as the “OC Stormwater Program Implementation Agreement,” is entered into this ____ day of _________, 2026, by the County of Orange, (herein called the COUNTY), the Orange County Flood Control District (herein called DISTRICT) and the cities of Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, La Habra, La Palma, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (herein called CITIES). The COUNTY, DISTRICT, and CITIES may be referred to collectively as PERMITTEES or individually as PERMITTEE, COUNTY, DISTRICT, or CITY, respectively, in this AGREEMENT. RECITALS WHEREAS, the United States Congress in 1987, through the Water Quality Act, amended Section 402 of the Clean Water Act (33 U.S.C.A. 1342(p)) to require the United States Environmental Protection Agency (“EPA”) to promulgate regulations for permitting stormwater discharges; and WHEREAS, EPA regulations require National Pollutant Discharge Elimination System (“NPDES”) permits for discharges from a municipal separate storm sewer system (“MS4”)(herein after called MS4 permits), and further require MS4 permits to include requirements to control pollutants from stormwater discharges; and WHEREAS, in 1927, the Orange County Flood Control Act created the DISTRICT 1 to provide for the control of flood and stormwater and protect from damage from those flood or stormwater, the harbors, waterways, public highways, and property within the DISTRICT’s jurisdiction; and WHEREAS, the powers granted to the DISTRICT include the authority to regulate discharges that threaten to impact its system and carry on technical and other investigations, examinations, or tests of all kinds, making measurements, collecting data, and making analyses, studies, and inspections pertaining to water supply, control of floods, use of water, water quality, nuisance, pollution, waste, and contamination of water, both within and without the DISTRICT; and WHEREAS, the California State Water Resources Control Board (“SWRCB”), as designee of the EPA, has delegated authority to the California Regional Water Quality Control Boards-Santa Ana Region (“RWQCB-SAR”) and San Diego Region (“RWQCB-SDR”)(collectively, the RWQCBs) for administration of MS4 permits within the boundaries of their regions; and WHEREAS, the COUNTY, DISTRICT, and CITIES are PERMITTEES under MS4 permits issued by the RWQCBs; and WHEREAS, the RWQCBs have designated the COUNTY as the Principal PERMITTEE or Principal Watershed Co-permittee, as defined in the MS4 permits; and WHEREAS, the COUNTY, the DISTRICT and the CITIES previously entered into that certain agreement entitled National Pollutant Discharge Elimination System Stormwater Permit Implementation Agreement D90-094, on December 18, 1990, which was subsequently amended on October 26, 1993 by Amendment No. 1 and then on June 25, 2002 (the December 18, 1990 Agreement as Amended by Amendment No. 1 and the June 25, 2002 amendment will be referred to collectively hereinafter as the ORIGINAL AGREEMENT), to cooperatively develop, and did thereunder develop, an integrated stormwater runoff management program with the objective of fulfilling MS4 permit requirements and improving water quality in Orange County (program 2 referred to herein as the “OC Stormwater Program”); and WHEREAS, Section X of the ORIGINAL AGREEMENT provides that the ORIGINAL AGREEMENT may be amended by consent of a majority of the PERMITTEES which represent a majority of the percentage contributions as described in Section IV of the ORIGINAL AGREEMENT; and WHEREAS, continued cooperation between the CITIES, the COUNTY, and the DISTRICT to jointly implement the OC Stormwater Program to fulfill prior, new, and potential future MS4 permit requirements, to the extent feasible, is in the best interests of the CITIES, the COUNTY, and the DISTRICT; and WHEREAS, the PERMITTEES now desire to restate and amend the ORIGINAL AGREEMENT, as reflected and set forth in this AGREEMENT. NOW, THEREFORE, the PERMITTEES do mutually agree as follows: I. FILING STATUS The COUNTY, the DISTRICT, and each CITY have filed applications for MS4 permits as PERMITTEES. The COUNTY, the DISTRICT and each CITY is a PERMITTEE under each MS4 permit to which they are subject. II.INCORPORATION OF FEDERAL GUIDELINES All applicable federal and state water quality regulations and guidelines under the Federal Clean Water Act, as presently written or as changed during the term of this AGREEMENT, are hereby incorporated by reference and made a part of this AGREEMENT and take precedence over any inconsistent terms of this AGREEMENT. III.DELEGATION OF RESPONSIBILITIES The responsibilities of each of the parties shall be as follows: A. The COUNTY shall be the administrator of the OC Stormwater Program and, on a cost-shared basis, perform the following functions: 1. Annual operating budgets. a. Prepare the annual operating budget (“annual operating budget”), which shall include a work plan and associated financial plan and 3 budget. The annual operating budget is intended to provide for all programmatic functions and associated costs of the OC Stormwater Program, as outlined in this AGREEMENT and as generally described in Section V.A. Annual operating budgets and work plans may be based on RWQCB region (i.e., Santa Ana Region versus San Diego Region). The budget year shall coincide with the COUNTY's fiscal year, July 1 – June 30. b. Consult with the Stormwater Program Representatives (as defined in Section III.C.8) when preparing annual operating budgets and major program elements therein. c. A draft of the annual operating budget may be prepared for the PERMITTIES for review by February 15 each year. Annual operating budgets shall be submitted to the PERMITTEES for consideration and approval by May 15 of each year. Individual CITY approval shall be obtained from each CITY’s city manager or designee thereof by July 30 of each year. CITY manager designations for annual operating budget approval shall be provided in writing to the County and shall remain in effect until revoked in writing by the CITY’s city manager. An annual operating budget shall be deemed approved and adopted for the OC Stormwater Program by affirmative responses from PERMITTEES which represent a majority (50% or greater) of both the area and population percentage contribution as calculated in accordance with Section V.A (method for calculating approval percentage referred to as “Majority Approval”). The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V.A. d. An approved and adopted annual operating budget shall not be 4 exceeded without prior Majority Approval of the PERMITTEES. 2. Project or watershed-specific sub-budgets. a. In coordination with the PERMITTEES, prepare project-specific and/or watershed-specific budgets and associated work plans (collectively, “sub-budget(s)”) for the design of water quality projects and/or responding to RWQCB enforcement orders and/or other orders (e.g., California Water Code 13267 or 13383 orders). b. Sub-budgets shall be prepared and proposed on an as-needed basis, at the discretion of the COUNTY, or as requested by interested PERMITTEES, subject to concurrence of the COUNTY. c. Each PERMITTEE willing to participate in a sub-budget will confirm participation to the COUNTY in writing. A PERMITTEE who confirms participation in a sub-budget shall be referred to herein as “PARTICIPATING PERMITTEE(s).” Sub-budgets will be subject to unanimous approval by all PARTICIPATING PERMITTEES, except that where a Participating Permittee fails to vote to approve a proposed sub-budget, such failure shall be deemed a withdrawal from the sub-budget and the withdrawing PERMITTEE shall no longer be considered a PARTICIPATING PERMITTEE and shall have no obligation to pay for or participate in the sub-budget. d. Project elements that go beyond design (e.g., construction, operation, and maintenance) shall not be provided for in sub- budgets and, instead, are subject to separate agreement between the Participating Permittees. 3. Represent the OC Stormwater Program in reviews of documents, comments, and discussions with EPA, SWRCB, and RWQCBs and/or other resource agencies regarding MS4 permit requirements and related policies, programs, and regulations. The COUNTY shall timely notify the 5 PERMITTEES of any decision reached during these discussions that, in the determination of the County, substantially impacts the OC Stormwater Program. 4. Implement approved annual operating budgets and sub-budgets. 5. Working in collaboration with PERMITTEES, prepare and submit regional compliance reports as the Principal PERMITTEE, as required under the MS4 permits, and/or as designated in the approved workplans. 6. Implement the regional monitoring and reporting program elements from approved workplans for the MS4 permits, including, but not limited to, tasks to monitor and measure the effectiveness of Best Management Practices (“BMPs”). This may include monitoring and modeling. 7. Obtain, as may be required by the annual operating budget and/or sub- budgets approved pursuant to this AGREEMENT, professional services, including, but not limited to, scientific, engineering, environmental, economic, and/or legal consultants to provide technical assistance for the work associated with the OC Stormwater Program. This work may include, but is not limited to, the preparation of technical or economic studies, legal analysis, watershed management plans, stormwater runoff management plans, water quality improvement plans, modeling, reasonable assurance demonstrations/reasonable assurance analyses, monitoring plans, technical reports, municipal staff training activities, and the design of structural and non-structural BMPs and strategies to prevent and/or reduce pollutants in stormwater runoff. Contracts for professional services to be funded under this AGREEMENT shall be made in conformance with the COUNTY’s procurement policies, and, to the extent there is no conflict, the following: a. The COUNTY shall make efforts to stagger the date of issuance of new contracts for professional services, so that PERMITTEES may 6 better absorb increases in consultant fee rates. b. For contracts for professional services that would require approval by the Orange County Board of Supervisors (as determined within the sole discretion of the COUNTY), one Stormwater Program Representative for every two designees of the COUNTY shall be allowed to participate in any panel formed for the purpose of evaluating responses to Requests for Proposals or similar competitive solicitations submitted by potential consultants. Where any contract subject to this provision is to be extended beyond the initial term, the COUNTY shall request feedback from the Stormwater Program Representatives, regarding the consultant’s performance, prior to executing the extension. This process shall in no way impinge upon or limit the COUNTY’s discretion to enter into, amend, extend, renew, or cancel any contract for professional services for the OC Stormwater Program. c. The COUNTY shall notify the PERMITTEES of any changes in the COUNTY’s procurement policies that significantly affect the thresholds for competitive procurement, scoring, or selection processes for contract services. 8. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities within the unincorporated areas of the County, at no cost to the CITIES. 9. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities on County-owned property used for COUNTY governmental purposes (i.e., property used for governmental functions) and located within a CITY, at no cost to the CITIES. For purposes of this section, the regional facility known as Dana Point Harbor shall be considered a County- owned property used for governmental purposes. 7 a. To avoid confusion in the implementation of each party’s facility inspection programs, the COUNTY shall provide a list of those facilities, buildings and properties that it owns and are located within other jurisdictions (i.e. non-unincorporated properties) that the COUNTY has decided to monitor and regulate pursuant to this Section III.A.9. The County further agrees to notify the affected PERMITTEE of changes to the status of a facility. B. The DISTRICT shall, on a cost-shared basis, except as set forth in subparagraph 2 below: 1. Perform or cause to be performed the water quality and hydrographic monitoring for compliance with MS4 permits and/or in accordance with RWQCB-approved monitoring plans and/or in the approved workplans. 2. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities located on District-owned and controlled property that is used for governmental purposes, at no cost to the CITIES. 3. Undertake or cause to be undertaken all activities required of the CITIES in Section III.C and applicable to the District. C. The CITIES, at no cost to the Counties and the District, shall: 1. Implement a facility inspection program for its MS4 facilities, as required by the MS4 permit(s) and within the jurisdictional boundaries of that CITY. 2. Submit to the COUNTY storm drain system maps and/or data describing the type and location of its MS4 facilities with periodic revisions that reflect any modifications made as a result of land development/redevelopment. If possible, information shall be submitted as geographical information system (“GIS”) data. 3. Support the COUNTY in the preparation of watershed characterizations and catchment prioritization efforts, including, but not limited to, by: 8 a. Identifying applicable zoning and land use designations. b. Identifying areas where sources of specific pollutants are known. 4. Upon COUNTY request, review, comment on, consider approval of, and, if approved, implement regional strategies to prevent and reduce pollutants in stormwater runoff. 5. Implement an illegal discharge detection and elimination program as required by the MS4 permit(s) to which the CITY is subject. Demonstrate adequate legal authority to control discharges to its MS4 facilities as may be required by the relevant MS4 permit(s) to which the CITY is subject. 6. Provide, as requested by the COUNTY, copies of the CITY’s jurisdictional reports, data, and any other information (in formats requested by the COUNTY, where such formats are reasonably available) to satisfy requirements in MS4 permits or other orders issued by a Regional Board or the State Board, to which the CITY is subject, provided the CITY has not otherwise challenged such order, and such challenge has not been resolved. 7. Participate in meetings convened by the COUNTY and respond to requests for information from the COUNTY, intended to obtain PERMITTEE input on matters related to this AGREEMENT and the implementation of the OC Stormwater Program. 8. Designate primary and secondary Stormwater Program Representative for matters related to this AGREEMENT and the implementation of the OC Stormwater Program. Designations shall be made by each CITY’s city manager, or designee, in writing to the COUNTY. Each designation shall remain in effect until revoked by the CITY’s city manager or designee. Stormwater Program Representatives are intended to provide subject matter input and facilitate communication between the COUNTY and each CITY. For purposes of this AGREEMENT, a Stormwater Program 9 Representative will not be deemed to have the authority to approve annual operating budgets on behalf of a CITY, as required in Section III.A.1, unless expressly stated in the written designation provided to the COUNTY. D. In the unincorporated areas of the COUNTY, the COUNTY shall, at no cost to the CITIES or the DISTRICT, undertake or cause to be undertaken all activities required above of the CITIES in Section III.C that are not responsibilities of the DISTRICT as outlined in Section III.B. IV.Orange County City Manager Association Engagement A. In lieu of the activities of the Technical Advisory Committee under the ORIGINAL AGREEMENT, the COUNTY shall endeavor to create a working relationship with the Orange County City Manager Association (“OCCMA”) or a sub-group thereof, to address issues such as MS4 permit requirements, MS4 permit compliance methods, and funding needs and strategies to facilitate regional and/or watershed-based, multi-jurisdictional project efforts. B. At its discretion, the COUNTY, in coordination with the PERMITTEES as set forth in this AGREEMENT, may implement recommendations (or parts thereof) that OCCMA may give on OC Stormwater Program matters, including, but not limited to, potential strategies for compliance with current and anticipated future MS4 permit requirements; funding strategies and options for MS4 permit compliance efforts; and OC Stormwater Program budgeting. Recommendations that would result in unbudgeted costs shall be subject to Majority Approval of the PERMITTEES pursuant to III.A.1.d. C. Under no circumstances shall this Section be interpreted as a replacement or substitute for any other responsibility of CITIES or the COUNTY under this Agreement. At the COUNTY’s discretion, the Director of OC Public Works may enter into a memorandum of understanding with OCCMA to facilitate 10 procedures for OCCMA engagement under this Section. Under no circumstances shall this provision be interpreted to require any written agreement between the COUNTY and OCCMA. V.PROGRAM COSTS A. Annual Operating Costs. Where not otherwise funded, the annual operating budget, including all costs of equipment, goods, COUNTY services (including, but not limited to, applicable COUNTY and COUNTY’S departmental overhead), and all professional services costs incurred by the COUNTY, and any cost of the MS4 permits, as determined by the COUNTY in its role as administrator of the OC Stormwater Program, shall be a shared cost and allocated among the COUNTY, DISTRICT, and CITIES, and paid for as follows: Participants Percentage Contribution DISTRICT 10 CITIES + COUNTY 90 The individual percentage contributions from each CITY and the COUNTY shall be functions of their respective dry land areas and population relative to those of the entire County of Orange. Each area shall be calculated as one-half of the sum of the area and population fractions, multiplied by 90%. National forests, state parks, airports, landfills, oceans, harbors, tidal bays, and active military installations shall be excluded from area calculations (Exhibit A-1). The contribution of the COUNTY shall be calculated from unincorporated areas and their respective populations. Should any external or alternative sources of funding become available, those funds may be directly applied to the appropriate budget(s) before the shared cost percentages are applied to the PERMITTTEES or credited to a subsequent budget. 11 /X) + (Y/Y)}/2 x (90) Share in percent for jurisdiction #1= {(X 1tot1tot X = area Y = population tot = total population or area 90 = total percentage excluding the DISTRICT’s contribution The percentage share shall be calculated by the COUNTY from population and area data. The population data shall be the most recent annual population estimates produced by the California Department of Finance, and area is based on the most recent OC Public Works survey data available to the COUNTY. Percentage share calculations shall be updated by May of each budget year for the budget year following and shall be included in annual operating budget proposals. Annual operating budget proposals shall be prepared based on the following percentage share computation methods, as applicable, and subject to exclusions in Exhibit A-1: 1. Countywide costs will be calculated as described in the process and formula above and subject to Exhibit A-1 for the entire group of PERMITTEES. 2. Regional costs, specific to only one RWQCB permit (Santa Ana Region and San Diego Region), will be calculated based on the process and formula above for PERMITTEES within the respective permit geographic area. For PERMITTEES that have jurisdiction in both permit regions, the regional costs will be based on the land area and prorated population for that permit geographic area. 3. Sub-budgets shall be based on the PARTICIPATING PERMITTEES and their corresponding area and prorated population total within the geographic area subject to the specific sub-budget. 4. In the event of a regulatory directive issued to PERMITTEES requiring amendment of any approved budget, the COUNTY shall provide immediate 12 notice to the included PERMITTEES and hold discussions with respect to responding to the directive and funding the immediate response. Such budget amendments shall be subject to the Majority Approval referenced in Section III.A.1.d. 5. If at any time during a budget year costs exceed the sum of the deposits for any approved budget, and prior Majority Approval for such exceedance has been obtained, the COUNTY shall submit invoices to the involved PERMITTEES to recover the deficit. The share for each PERMITTEE shall be prorated according to the formula that was initially used to apportion budget costs. Each CITY shall pay the invoice within 45 calendar days of the billing date. 6. If at any time costs exceed the sum of the deposits for any approved budget, the COUNTY may propose a budget increase and request payment by the PERMITTEES, and PERMITTEES shall pay such amount, provided the budget increase is approved in accordance with sections III.A.1.c-d or III.A.2.c of this Agreement, as may be applicable. Until such approval is obtained and sufficient deposits received, the COUNTY may, at its sole discretion, cease carrying out approved budget components so as to limit or not incur costs in excess of deposits. Nothing in this AGREEMENT shall be construed as requiring PERMITTEES to approve budget increases. 7. The COUNTY shall prepare a budget year-end accounting within 120 calendar days of the end of the budget year and present the same to the involved PERMITTEES for review. If the budget year-end accounting results in the sum of the deposits exceeding costs (net of interest earnings), the excess deposits shall carry forward to reduce the obligation of the PERMITTEES for the following budget year and prorated to the CITIES consistent with the cost-sharing population and area data 13 calculation above. 8. The COUNTY shall invoice each CITY for its annual share of each approved budget by November 30 of each budget year. Each CITY shall pay their deposit(s) within 45 calendar days of the billing date or within 45 calendar days of November 30, whichever is later. Each CITY’S deposit(s) shall be based on their prorated share(s) of the approved budget(s), reduced for any carry forward amount identified in the prior budget year-end accounting. 9. The COUNTY shall hold each CITY’s annual share of each approved budget in interest-bearing accounts and credit interest earned on each CITY’s annual share against each CITY’s share of the approved budget costs. The COUNTY shall maintain records regarding interest earned and credited on each CITY’s annual share and provide the same to the CITIES within 120 calendar days of the end of the budget year. 10.Upon termination of this AGREEMENT, a final accounting shall be performed by the COUNTY and presented to the PERMITTEES for review. If the sum of the deposits exceeds the costs, the COUNTY shall reimburse to each CITY its prorated share of the excess, within 120 calendar days of the final accounting. VI.LIFE OF THE AGREEMENT The term of this AGREEMENT shall be indefinite, unless amended or terminated in accordance with this AGREEMENT. VII.ADDITIONAL PARTIES Any CITY which becomes incorporated after the effective date of this AGREEMENT, or requests to become a party to this AGREEMENT after previously withdrawing pursuant to Section VIII, shall be eligible to become a party to this AGREEMENT, subject to Majority Approval. In approving adding additional cities to this AGREEMENT, the PERMITTEES may 14 require such conditions of the added cities as they determine necessary or advantageous. The date of initiation, for determining costs for newly incorporated cities, shall be the date of incorporation. The costs for adding additional cities to this AGREEMENT and OC Stormwater Program including, but not limited to, permit and processing fees, as well as administrative costs incurred by the COUNTY and costs to reimburse the existing PERMITTEES for unreimbursed costs related to a previous withdrawal (if applicable), shall be calculated by the COUNTY, approved by Majority Approval of the PERMITTEES and, thereafter, invoiced by the COUNTY and paid by the added city(ies) within 45 calendar days of the billing date. Monies to be reimbursed to the existing PERMITTEES shall carry forward to reduce the billings for the following budget year. VIII. WITHDRAWAL FROM THE AGREEMENT A CITY may withdraw from this AGREEMENT by providing at least 60 calendar days written notice to the COUNTY. The COUNTY shall notify the PERMITTEES within 10 business days of receipt of any withdrawal notice. Neither the COUNTY nor any PERMITTEE shall be responsible for advising the withdrawing CITY of the legal, regulatory, or programmatic effects of withdrawing, nor have any continuing responsibility to the withdrawing CITY upon the effective date of the withdrawal. The withdrawing CITY shall be solely responsible for any costs the withdrawing CITY may incur related to its withdrawal, including, but not limited to, penalties assessed by RWQCBs, and or other resource agencies (e.g., EPA, CDFW, etc.) in connection with or related to its withdrawal. In addition, withdrawal shall constitute forfeiture of any deposits on hand from the withdrawing CITY, for the budget year in which the withdrawal is effective. If the effective date of a withdrawal is within 60 calendar days of the beginning of any budget year, the withdrawing CITY shall be responsible for paying its annual 15 share for the upcoming budget year as if it were still a PERMITTEE participating in this AGREEMENT but shall be eligible to receive a credit for any prospective carry forward amount of such annual share as may be contemplated by this AGREEMENT. The cost allocations to the remaining PERMITTEES participating in this AGREEMENT shall be recalculated and collected and/or credited as necessary in the budget year following the effective date of the withdrawal. IX.NON-COMPLIANCE WITH PERMIT OR ORDER REQUIREMENTS Each PERMITTEE shall remain solely responsible for its own acts and omissions with respect to compliance with requirements of an MS4 permit or other order of the RWQCBs or SWRCB to which it may be subject, and nothing herein shall be deemed to waive, release, or transfer any such responsibility to any other PERMITTEE. Nothing in this AGREEMENT shall be construed as an assumption by any PERMITTEE of any liability or obligation of another PERMITTEE, whether past, present, or future. X. LEGAL ACTION/ COSTS/ ATTORNEY FEES In the event of legal action to enforce any provision of this AGREEMENT, each party shall bear its own attorneys’ fees and costs, and no party shall seek to recover the same from any other party through litigation or other legal proceedings. XI.AMENDMENTS TO THE AGREEMENT This AGREEMENT may be amended with Majority Approval. The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V. No amendment to this AGREEMENT shall be effective unless it is in writing and signed by the duly authorized representatives of the COUNTY and the required Majority Approval of PERMITTEES. XII.NOTICES 16 All notices required under Section VIII shall be deemed duly given if delivered by hand (with written confirmation of receipt); via electronic mail (with confirmation of transmission); or three (3) days after deposit in the U.S. Mail, postage prepaid. XIII. GOVERNING LAW This AGREEMENT shall be governed and construed in accordance with laws of the State of California. If any provision or provisions of this AGREEMENT is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not any way be affected or impaired hereby. XIV.CONSENT TO BREACH NOT WAIVER No term or provision hereof shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the duly authorized representative of the PERMITTEE to have waived or consented. Any consent by any PERMITTEE to, or waiver of, a breach by the other, whether express or implied, shall not constitute a consent to, waiver of, or excuse for any other different or subsequent breach. XV.APPLICABILITY OF PRIOR AGREEMENTS This AGREEMENT restates and amends the provisions in prior agreements and constitutes the entire AGREEMENT between the PERMITTEES with respect to the subject matter. All prior agreements, representations, statements, negotiations, and undertakings are superseded hereby. XVI.EXECUTION OF THE AGREEMENT This AGREEMENT may be executed in counterparts, and the signed counterparts shall constitute a single instrument. The parties agree that this AGREEMENT may be executed and delivered by electronic means, including via email or electronic signature platforms (e.g., DocuSign, Adobe Sign), and that such electronic signatures shall be deemed to have the same legal 17 effect as original signatures. Each party agrees that electronically signed documents shall be valid, enforceable, and admissible in any legal proceeding to the same extent as a manually signed original. XVII. NO WAIVER OF PRIVILEGE AND/OR WORK PRODUCTION PROTECTION Notwithstanding anything in this Agreement to the contrary, nothing in this AGREEMENT shall require a party to release or provide information (including any reports, communications, data, etc.) that has been deemed by that party to be subject to the attorney-client privilege, attorney work product doctrine, or any other relevant privilege and protection, including, but not limited to, any reports or information generated by a party’s consultant that was prepared in consultation with, or at the direction of, such party’s attorney or counsel of record. Nothing in this AGREEMENT shall prohibit the parties hereto from entering into future agreements, including joint defense agreements, common interest agreements, or other similar agreements to share such privileged or protected information subject to the terms and conditions of such an agreement. 18 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the dates opposite their respective signatures: ORANGE COUNTY FLOOD CONTROL DISTRICT A body corporate and politic By Chairman of the Board of Supervisors COUNTY OF ORANGE A body corporate and politic Date: By Chairman of the Board of Supervisors SIGNED AND CERTIFIED THAT A COPY OF THIS AGREEMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Date: By ROBIN STIELER Clerk of the Board of Supervisors of Orange County, California APPROVED AS TO FORM COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA By Julia Woo, Senior Deputy Date: /// /// /// 19 CITYOFALISOVIEJO By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 20 CITYOFANAHEIM By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 21 CITYOFBREA By: Date: _________________________ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 22 CITYOFBUENAPARK By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 23 CITYOFCOSTAMESA By: Date: _____ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 24 CITYOFCYPRESS By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 25 CITYOFDANAPOINT By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 26 CITYOFFOUNTAINVALLEY By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 27 CITYOFFULLERTON By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 28 CITYOFGARDENGROVE By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 29 CITYOFHUNTINGTONBEACH By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 30 CITYOFIRVINE By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 31 CITYOFLAHABRA By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 32 CITYOFLAPALMA By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 33 CITYOFLAGUNABEACH By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 34 CITYOFLAGUNAHILLS By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 35 CITYOFLAGUNANIGUEL By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 36 CITYOFLAGUNAWOODS By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 37 CITYOFLAKEFOREST By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 38 CITYOFLOSALAMITOS By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 39 CITYOFMISSIONVIEJO By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 40 CITYOFNEWPORTBEACH By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 41 CITYOFORANGE By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 42 CITYOFPLACENTIA By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 43 CITYOFRANCHOSANTAMARGARITA By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 44 CITYOFSANCLEMENTE By: Date: _____ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 45 CITYOFSANJUANCAPISTRANO By: Date: _____ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 46 CITYOFSANTAANA Date: By: ALVARO NUNEZ City Manager ATTEST: APPROVED AS TO FORM: JENNIFER L. HALL KYLE NELLESEN City Clerk Assistant City Attorney 47 CITYOFSEALBEACH By: Date: ____ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 48 CITYOFSTANTON By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 49 CITYOFTUSTIN By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 50 CITYOFVILLAPARK By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney CityClerk 51 CITYOFWESTMINSTER By: Date: ______ Mayor APPROVED AS TO FORM: ATTEST: City Attorney City Clerk 52 CITYOFYORBA LINDA By: Date: ____ __ Mayor APPROVED AS TO FORM: ATTEST: City Clerk City Attorney 53 EXHIBIT A - 1 DRY LAND AREA DEDUCTED FROM JURISDICTIONS Landfills Jurisdiction OlindaCounty Santiago County Prima Deschecha County Bee Canyon County Coyote CanyonCounty State Parks Bolsa ChicaState Beach*Huntington Beach Chino HillsState Park County Corona Del Mar StateBeachNewport Beach Crystal Cove StatePark**County Doheny State Beach Dana Point HuntingtonState Beach Huntington Beach San Clemente StateBeachSan Clemente Airports Fullerton Fullerton John Wayne County Military facilities Joint Forces Training Base - Los AlamitosLos Alamitos Former MCAS Tustin*** Tustin Seal Beach Naval Weapons Station**** Seal Beach National Forests Cleveland National ForestCounty *Includes Bolsa Chica Ecological Preserve **Includes Laguna Laurel Ecological Preserve ***Active military areas ****Includes Seal Beach National Wildlife Refuge 54 Public Works Agency www.santa-ana.org/pw Item # 19 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Automated Metering Infrastructure Implementation Support Services AGENDA TITLE First Amendment to the Agreement with E Source Companies, LLC for Automated Metering Infrastructure Implementation Support Services (Project No. 16-6460) (Non- General Fund) RECOMMENDED ACTION Authorize the City Manager to execute a First Amendment to the agreement with E Source Companies, LLC to continue Automated Metering Infrastructure implementation support services, in an additional amount of $125,000, for a total revised agreement amount not to exceed $575,000 (Agreement No. A-2026-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The Public Works Agency (PWA) operates and maintains the City’s water and sanitary sewer systems. The water system comprises approximately 480 miles of water main, 21 groundwater wells, seven pump stations, 10 reservoirs with a storage capacity of 49 million gallons, four pressure-regulating stations, and seven connection points to the Metropolitan Water District. The system has an average daily demand of 30 million gallons from its roughly 45,500 metered service connections. In 2020, City Council approved the implementation and transition from manual meter readings to an Automated Metering Infrastructure (AMI) system utilizing smart water meters. The AMI system electronically transmits data to the Finance and Management Services Agency’s Municipal Utility Services (MUS) customer information and billing system, where water charges are generated. The introduction of the new smart meter technology required upgrades to existing MUS systems and significant efforts to implement and integrate those systems. With progress on installing the new smart meters advancing on schedule, on August 20, 2024, the City Council approved an agreement with E Source Companies, LLC to Automated Metering Infrastructure Implementation Support Services April 7, 2026 Page 2 provide implementation and operational support services as the City transitioned to AMI water meter data, for a total amount not to exceed $450,000. The support provided by E Source has been essential to systems integration, maintaining data quality, identifying system anomalies, and resolving issues across the AMI ecosystem. Their work has been instrumental in enabling the MUS support team to maintain the same level of customer service for Santa Ana residents and businesses while navigating the learning curve associated with the transition to AMI. The agreement anticipated a full handoff of AMI system responsibilities to staff by the end of 2025. The majority of the budget was allocated for support from E Source leading up to the handoff milestone with tapering support services and training continuing through the end of 2027. During this period, City staff were also tasked with advancing other customer service and technology priority-initiatives such as the Accela Land Management, Business License software upgrades, and initiating a new Enterprise Resource Planning system. These additional ground-up technology projects required a significant investment of staff time and, as a result, diverted staff time from the AMI project, necessitating the extended use of E Source in the AMI operational support role beyond the originally anticipated timeframe. The proposed $125,000 amendment reflects the cost of continued support such as system monitoring, data validation, billing read support, and City staff training through the remaining term of the agreement. This will allow for an adequate transition period for staff to assume full operational responsibilities of the AMI project by June 2027, and with minimal support services from E Source, as originally contracted, continuing through December 2027. Staff recommends approval of the First Amendment to Agreement A-2024-133 (Exhibit 1) with E Source Companies, LLC in the amount of $125,000 for a total revised agreement amount of $575,000 (Exhibit 2). All the remaining terms of the agreement, effective through December 2027, will remain unchanged. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are available for expenditure in the Fiscal Year 2025-26. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 2026-27. Automated Metering Infrastructure Implementation Support Services April 7, 2026 Page 3 Fiscal Accounting Unit Fund Accounting Unit, Amount Year- Account No. DescriptionAccount Description (Project No.) Water 06017645-62300 Admin/Engineering, 2025-26Water$40,000 (16-6460)Contract Services - Professional Water 06017645-62300 Admin/Engineering, 2026-27Water$75,000 (16-6460)Contract Services - Professional Water 06017645-62300 Admin/Engineering, 2027-28Water$10,000 (16-6460)Contract Services - Professional TOTAL$125,000 EXHIBIT(S) 1.Agreement A-2024-133 2.First Amendment to the Agreement E Source Companies, LLC Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager FIRST AMENDMENT TO AGREEMENT WITH E SOURCE COMPANIES. LLC TO PROVIDE AMI IMPLEMENTATION SUPPORT SERVICES FOR THE CITY OF SANTA ANA THIS FIRST AMENDMENT to the above-referenced agreement is entered into on April 7, 2026 by and between E Source Companies, LLC, a Delaware limited liability company (“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 parties entered into Agreement No. A-2024-133, dated August 20, 2024 (“Agreement”) by which Consultant agreed to provide Automated Metering Infrastructure (AMI) Implementation Support Services for the Public works Agency Water Resources Division, including but not limited to project management, software integration, data management, and performance analysis. B. The term of the Agreement runs through December 31, 2027, and is current and in effect. C. The parties now wish to amend the Agreement to increase the overall compensation to Consultant under the Agreement. D. No other changes are contemplated by this Amendment. The Parties therefore agree: 1. Section 2.a., COMPENSATION, is amended to increase the overall compensation by $125,000. The total amount to be expended under the term of this Agreement, including any extensions exercised by the parties, shall not exceed $575,000. 2. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. \[signature page to follow\] SIGNATURE PAGE: FIRST AMENDMENT TO AGREEMENT WITH E SOURCE COMPANIES, LLC TO PROVIDE AMI IMPLEMENTATION SUPPORT SERVICES FOR THE CITY OF SANTA ANA ATTEST CITY OF SANTA ANA _______________________________ ______________________________ JENNIFER L. HALL ALVARO NUÑEZ City Clerk City Manager APPROVED AS TO FORM CONSULTANT Sonia R. Carvalho City Attorney ___________________________ _______________________________ KYLE NELLESEN Assistant City Attorney RECOMMENDED FOR APPROVAL Ejhjubmmz!tjhofe!cz!Spepmgp!Sptbt! EO;!do>Spepmgp!Sptbt-!fnbjm>ssptbtAtboub.bob/psh-! d>VT! Spepmgp!Sptbt Ebuf;!3137/14/34!18;66;3:!.18(11( ______________________________ RODOLFO ROSAS, P.E. Acting Executive Director Public Works Agency City Manager’s Office www.santa-ana.org/cm Item # 20 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Rename Cesar Chavez Campesino Park to Campesino Park, Remove the Name and Likeness of Cesar Chavez from All City-Owned Assets, and Negotiate Amendments to Labor Agreements to Modify the Cesar Chavez Day Holiday Designation AGENDA TITLE Rename Cesar Chavez Campesino Park to Campesino Park, Remove the Name and Likeness of Cesar Chavez from All City-Owned Assets, and Negotiate Amendments to Labor Agreements to Modify the Cesar Chavez Day Holiday Designation RECOMMENDED ACTION 1.Direct the City Manager to initiate the renaming of Cesar Chavez Campesino Park back to its original name of Campesino Park. 2.Direct staff to remove the name and likeness of Cesar Chavez from all City- owned public assets, including, but not limited to, murals, signage, facilities, and commemorative displays. 3.Direct the City Manager to meet and confer with applicable bargaining units to amend labor agreements to rename the observance of Cesar Chavez Day with Farmworkers Day, or replace with a floating holiday for City employees, as appropriate. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The City of Santa Ana currently recognizes Cesar Chavez through the naming of Cesar Chavez Campesino Park, as well as through various public artworks, signage, and the observance of Cesar Chavez Day as a paid holiday for City employees. In light of recent allegations regarding aspects of Chavez’s leadership, personal conduct, and organizational practices, the Mayor consulted with the City Manager to evaluate the removal of existing recognitions of Cesar Chavez on City-owned assets to remain consistent with the City of Santa Ana’s current values and community standards. This item is therefore presented for City Council consideration. Renaming of City-Owned Assets Bearing the Name of Cesar Chavez April 7, 2026 Page 2 On March 26, 2026, California Governor Gavin Newsom signed legislation renaming the state holiday honoring Cesar Chavez to “Farmworkers Day,” effective immediately. The change reflects a broader effort to recognize the collective contributions of farmworkers rather than a single individual. The holiday will continue to be observed on March 31. The Santa Ana Municipal Code (SAMC), Section 33-6, establishes a formal process for the renaming of public streets, buildings, and parks, which includes review by the Planning Commission. Given the time-sensitive nature of this matter, staff recommends that the City Council dispense with the standard renaming procedures outlined in SAMC Section 33-6 for purposes of immediate name removal. Staff would not typically recommend deviation from established code requirements; however, staff finds that the current circumstances are extraordinary and warrant expedited action. The intent of this recommendation is to allow the City to respond promptly to evolving public sentiment and to align with actions being taken by other entities. Staff does not anticipate significant risk in proceeding as recommended. To the contrary, staff finds that there may be greater potential harm in allowing the name to remain, even temporarily, given the current context and community concerns. Additionally, while the Planning Commission serves an important advisory role in renaming matters, its recommendations are subject to final review and approval by the City Council. In this unique circumstance, staff recommends that the City Council exercise its authority to make a direct determination. Should the Planning Commission wish to provide further input, it may do so for subsequent City Council consideration. Renaming of Cesar Chavez Campesino Originally named Campesino Park, the park was renamed to “Cesar Chavez Campesino Park” in 2001 through approval by the Planning Commission and Santa Ana City Council. The renaming of Cesar Chavez Campesino Park will require: Removal and replacement of signage Updates to City records, GIS systems, and public-facing materials Removal of Name and Image from Public Assets City-owned murals, plaques, and commemorative displays that reference Cesar Chavez would require evaluation to determine scope and cost of removal or modification. This may involve: Coordination with artists and stakeholders Compliance with any applicable public art policies or agreements Assessment of potential legal or contractual considerations Renaming of City-Owned Assets Bearing the Name of Cesar Chavez April 7, 2026 Page 3 Labor Agreement Amendments/Side Letter Agreements Cesar Chavez Day is currently observed as a paid holiday in labor agreements with the City’s collective bargaining units. Transitioning to a floating holiday would require: Meet-and-confer negotiations with all applicable bargaining units Amendments to Memoranda of Understanding (MOUs) Consideration of impacts on employee compensation and scheduling ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The estimated fiscal impact is up to $15,000 and will depend on the final scope of implementation. Costs may include removal and replacement of signage, modification or removal of public art, and administrative costs associated with labor negotiations. Sufficient funding is available and budgeted in FY 2025–26 within the Non- Departmental Contract Services – Professional account (01105015-62300). EXHIBIT(S) N/A Submitted by: Sylvia Vazquez, Deputy City Manager Approved By: Alvaro Nuñez, City Manager Finance and Management Services www.santa-ana.org/finance Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 7, 2026 TOPIC: Early Direction for the Fiscal Year 2026-27 Budget AGENDA TITLE Early Direction for the Fiscal Year 2026-27 Budget RECOMMENDED ACTION Provide direction to staff for the preparation of the proposed FY 2026–27 budget. GOVERNMENT CODE §84308 APPLIES: No EXECUTIVE SUMMARY The City’s General Fund is estimated to face a structural deficit of approximately $19 million before adjustments in FY 2026-27, driven by rising personnel costs, pension obligations, contractual commitments, and continued expenditure growth outpacing trends in recurring revenue. While the City remains financially stable in the current fiscal year, corrective action will be necessary to maintain long-term fiscal sustainability. As part of the FY 2026-27 budget development process, City Management is actively working with department directors to evaluate operations and identify opportunities to eliminate duplicative, outdated, or inefficient service delivery models. This review includes an assessment of discretionary programs, ongoing General Fund subsidies, internal service structures, and cost recovery practices to ensure that resources are aligned with core priorities. Staff is presenting this Early Direction report to provide the City Council with an opportunity to review potential strategies, including expenditure reductions and revenue enhancements, prior to development of the Proposed Budget. The objective is to ensure recurring expenditures are supported by recurring revenues while maintaining essential services and protecting the City’s long-term financial position. DISCUSSION This Early Direction agenda item marks the start of the City Council’s deliberations for the upcoming FY 2026–27 budget. The report has two purposes: to provide information relevant to the FY 2026–27 budget and future fiscal years, and to request direction from Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 2 the City Council. City Council is scheduled to review the proposed budget in May, followed by a public hearing in June. Community Engagement City staff presented the FY 2026–27 Budget Calendar and Community Engagement Plan to City Council on December 5, 2025. Community engagement activities began in January 2026. These initial efforts marked the start of a broader outreach process designed to provide residents with multiple opportunities to learn about the budget and share input on spending priorities. Engagement activities will continue throughout early 2026 through Listening Tour visits in each City Council ward, where City staff will meet with residents to discuss the budget and hear their priorities for FY 2026–27. These visits will take place at neighborhood association meetings and community events across the City. Feedback gathered through these discussions, along with responses from the City’s year-round budget priorities survey available on the Budget Office website, will be summarized and shared with the City Council during scheduled budget workshops. Budget Process The City Manager’s Office and Finance and Management Services Agency have conducted internal budget meetings with departments to review budget requests and staff priorities. After reviewing these requests alongside City Council priorities identified during the Early Direction discussion and community input gathered through the budget outreach process, Finance will work with the City Manager’s Office to develop a proposed budget for City Council consideration in May. General Fund While the current FY 2025-26 General Fund budget is balanced, the City’s Ten-Year Outlook projected a potential deficit of approximately $8.5 million in FY 2026-27, indicating that expenditures were expected to outpace revenues in future years. During the City Council Goal Setting meeting on January 23, 2026, staff provided an updated early look at the FY 2026-27 budget reflecting new information and updated assumptions. Since the prior outlook was presented, additional cost pressures have emerged, including higher labor costs, updated CalPERS actuarial information, and revised revenue estimates. Based on updated information, the FY 2026-27 deficit could be as much as $19.0 million. The budget is still under development and this estimate will likely change as revenue estimates and expenditure costs are finalized. General Fund Ten-Year Outlook Assumptions The General Fund Ten-Year Outlook has been updated to reflect the latest available information. The following assumptions were used: Only recurring revenues and spending were included. Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 3 Property Tax estimates from consultant for FY 2026-27 through FY 2030-31, 3.1% increase thereafter; Sales Tax estimates from consultant for FY 2026–27 through FY 2027–28, with 3.1% growth thereafter; prior forecast of 2.9% revised to 1.9% for FY 2026-27 in the updated outlook based on recent taxable sales figures; Inflation factor for all other revenues: increase of the Consumer Price Index (CPI), as forecasted by the California Department of Finance, at 3.1% beginning in FY 2026-27 and thereafter; Labor cost assumptions have been updated to reflect recently approved Memoranda of Understanding (MOUs). The prior outlook assumed increases of 2.5% for FY 2025-26 and 2.6% for FY 2026-27, which were based on projected CPI growth at the time. The approved MOUs provide for increases of 5% in FY 2025-26 and 4% in FY 2026-27; Employees at the top of their salary range: negotiated increases per approved MOU; 3.1% CPI assumed in years beyond current agreements; Employees below the top of their salary range: Negotiated increases per approved MOU plus 5% merit-step increases; 3.1% CPI assumed in years beyond the current agreement; Orange County Fire Authority contract increase of 3.0% in FY26-27 based on an early estimate from the Authority, and 4.5% annually thereafter; Contribution to OC Streetcar operations updated to as much as $2.0 million annually based on revised estimates from OCTA (prior outlook assumed $1.0 million); Debt retirements (800Mhz, Appellate Court Garage, and Animal Shelter) totaling $1.4 million in FY26-27, and a total of $1.5 million thereafter; Employee pension unfunded liability contributions updated based on CalPERS actuarial information received in August 2025, resulting in an additional $2.2 million in required contributions in FY 2026-27 compared to the prior outlook; Contributions to, and uses of, the Pension Stabilization Account have been included to smooth the pension debt fluctuations in future years; and Inflation Factor for all other spending. The Outlook does not include additional tax revenue from the Related Bristol development or the Village Santa Ana development. The following estimates were provided when the projects were approved. Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 4 For the City to realize revenue from the Related Bristol development in 2036, construction would have had to begin in January 2026. The Outlook’s graphical results show that expenditures continue to outpace revenues. Beginning in FY 2026-27, this imbalance results in an estimated deficit and, absent structural adjustments, is expected to persist. When the Measure X rate decreases in 2029, the deficit is expected to widen further, increasing long-term fiscal pressure on the General Fund. Recommendations from the Measure X Oversight Committee Normally, this report would include budget recommendations from the Measure X Citizens Oversight Committee. Due to a lack of a quorum precipitated by three (3) vacant seats, the Committee’s December and March meetings were canceled, and the Committee has been unable to meet and develop recommendations. Balancing Strategies Staff intends to propose a balanced budget for City Council consideration. To facilitate discussion, staff has identified potential strategies, including expenditure adjustments and revenue enhancements, to ensure recurring expenditures align with recurring revenues. Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 5 Expenditure Considerations Exhibit 1 provides a department-by-department breakdown of activities and programs categorized by spending priority, as defined below: Must-Have – Mandates required by law, Memoranda of Understanding (MOUs), bond covenants, public safety obligations, and land use regulations. Examples include records management, procurement compliance, and debt payments. Should-Have – Core services that protect City resources and minimize liability exposure. Examples include street and sidewalk maintenance and essential software services. Nice-to-Have – Programs and services that are not legally required but enhance quality of life. Examples include newsletters, mentoring programs, recreation and library programming, and City events. These spending categories are intended to support policy discussion by helping the City Council evaluate service levels and identify potential expenditure adjustments. If the City Council is interested in further evaluating any of the categories or specific programs, staff can conduct a more detailed review and provide an estimate of the fiscal impact of potential adjustments. As requested by City Council on March 17, 2026, during the Polling Results agenda item, a presentation of the detailed Measure X spending plan is attached to this report (see Exhibit 3). Staff has separated out the items in the spending plan that cannot be modified to balance the budget (e.g. Orange County Fire Authority contract increases, structural budget deficit that existed prior to the passage of Measure X, etc.). Credit Card Processing Fee Before February 2012, the City charged a flat $3.54 credit card processing fee per transaction to offset merchant service costs. The fee was removed to simplify transactions and encourage the use of online payment services. Since then, merchant service fees for credit card transactions have been absorbed by the General Fund. Over the past decade, credit card and online payments have increased significantly. As a result, merchant processing fees now constitute an ongoing operating expense for the City. Staff has evaluated reinstating a credit card processing fee as a cost-recovery measure. Based on current merchant costs, a 2.50% per-transaction fee is recommended. The proposed rate is designed to recover merchant processing costs associated with credit card transactions and would not exceed the City’s actual cost of service. This action is consistent with public entities outlined in Exhibit 2 and private sector businesses. If implemented, establishing the new processing fee is estimated to reduce General Fund expenditures by approximately $320,000 annually, based on current transaction volumes. The City currently maintains a $5,000 credit card transaction limit, established to manage processing costs while the General Fund absorbs merchant fees. If a processing fee is Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 6 reinstated, staff would remove this administrative limit to provide greater flexibility for customers. Several neighboring cities charge a credit card convenience fee to offset merchant processing costs. A comparison of selected jurisdictions and their fee structures is included as Exhibit 2. Staff seeks City Council guidance on whether to add a 2.50% credit card processing fee to the Miscellaneous Fee Schedule. For reference, the estimated cost to a customer is typically $3.51 for typical transactions, although it varies with transaction value. Technology Fee Evaluation The City anticipates launching its new permitting and licensing system, Accela, in June 2026. This system is expected to enhance service delivery by improving processing times, increasing transparency, and providing a more user-friendly online experience for residents and businesses. As the system becomes operational, staff will continue to assess the full scope of ongoing costs associated with maintaining and supporting the enhanced technology to customers. These costs may include permitting and plan review software, online customer portals, electronic plan review platforms, GIS integration, hardware, cybersecurity measures, and system maintenance and support. At a future date, once sufficient operational data is available, staff may return to Council to discuss potential cost recovery options, which could include a technology fee. Any such fee would be evaluated for compliance with applicable state law and would not exceed the reasonable cost of providing the associated services. This item is provided for informational purposes only, and no Council action is requested at this time. One-Time General Fund Spending As reported in the Mid-Year Update on March 3, 2026, the estimated spendable fund balance for one-time expenditures in the General Fund is $11,617,075. The following are potential options for utilizing this one-time funding and are presented for City Council discussion. Staff will return with formal recommendations for Council consideration in the Proposed Budget. The recommendations for the one-time resource is summarized in the following table. UseAmount Workers Compensation Fund Balance addition$2.5 million General Liability Fund Balance addition$1.7 million Pension Stabilization Fund contribution$1.5 million Street Sweeping Interim Subsidy$0.9 million Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 7 High-Priority One-Time Projects$2.0 million Remainder available for direction during May budget workshops$3.0 million Total One-Time Money Recommendations$11.6 million To address unforeseen needs and emerging priorities of aging infrastructure, staff recommends setting aside $2.0 million for high-priority projects that may arise throughout the fiscal year. This may include critical repairs and improvements to City-owned facilities, such as the Bowers Museum, Eddie West Field Stadium, the Santa Ana Jail, community centers, and fire stations. Of this amount, staff recommends allocating $1.0 million to the Public Works Agency to support facility-related needs and $1.0 million to the Non-Departmental budget to provide the City Council with flexibility to address time-sensitive priorities that may arise during the fiscal year. Workers’ Compensation Fund As previously reported in the August 5, 2025 staff report on the Citywide Insurance Program, actuarial valuations show that the Workers’ Compensation Fund reserves remain below the City’s target reserve level of 80% of actuarially determined liabilities. As of June 30, 2026, the actuarial present value of Workers’ Compensation liabilities is approximately $44.8 million. The City’s target reserve level is approximately $35.8 million, while the projected ending fund balance of $19.8 million reflects a reserve shortfall of approximately $16.0 million relative to the City’s policy target. In addition, as discussed in the March 3, 2026, Mid-Year Budget Report, the Fund continues to face elevated claim-related costs, including wage continuation, medical treatment, and legal expenses. Estimated benefit payments for the current fiscal year total approximately $9.7 million, yet only $5.9 was originally budgeted. To help replenish fund reserves and support long-term stability, staff recommends a one- time General Fund transfer of $2.5 million to the Workers’ Compensation Fund. This transfer would improve the Fund’s reserve position while Human Resources continues implementing operational improvements to manage claims activity and reduce future costs. Human Resources, in coordination with the City’s third-party claims administrator AdminSure, City departments, and the City Attorney’s Office, continues to focus on claim- reduction strategies, training initiatives, and enhanced oversight of treatment and return- to-work practices. These efforts are expected to mitigate long-term cost escalation and improve the Workers’ Compensation Fund’s overall financial position. General Liability Fund As previously reported in the August 5, 2025, staff report regarding the Citywide Insurance Program, actuarial valuations indicate that General Liability Fund reserves Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 8 remain below the City’s target reserve level of 80% of actuarially determined liabilities. As of June 30, 2026, the actuarial present value of General Liability claims is approximately $18.6 million. The City’s target reserve level is approximately $14.9 million. The estimated ending fund balance of $13.2 million reflects a reserve shortfall of approximately $1.7 million relative to the City’s policy target. The General Liability Fund is used to pay claims and legal settlements arising from incidents involving the City. The City currently has various matters in different stages of review and litigation, including recent case developments that may not yet be fully reflected in prior actuarial projections. Maintaining adequate reserves supports the City’s ability to respond to potential claim activity and manage financial exposure. To strengthen the Fund’s reserve position, meet the City’s target-goal, and provide additional capacity for potential claim obligations, staff recommends a one-time General Fund transfer of $1.7 million to the General Liability Fund. Future Pension Costs Set-Aside – Section 115 Trust Since 2021, the City Council has consistently set aside funds in the Section 115 Trust as part of its long-term pension cost management strategy. The Council has approved deposits during each annual budget cycle when financially feasible, including a $1 million allocation in the current fiscal year. As of December 2025, the Section 115 Trust has a balance of approximately $49.8 million. The purpose of the Trust is to help mitigate future volatility in CalPERS-required contributions. CalPERS assumes an annual investment return of 6.8%. When investment performance falls below this assumption, the City’s unfunded liability increases, leading to higher required contributions in future years. Based on CalPERS’s latest projections, the City is expected to require approximately $189.2 million in contributions above the current budget level over the next 10 years. Consistent with the City Council’s adopted “Unfunded Employee Pension Liability Cost Reduction Policy,” staff recommends an additional one-time $1.5 million allocation to the Section 115 Trust for FY 2026-27 and requests City Council concurrence. This proposed deposit would continue the City’s multi-year strategy of proactively setting aside funds to earn investment returns and help offset future pension cost increases. Street Sweeping The Sanitation Fund supports the City’s street-sweeping program, which is provided under contract by Athens Services and billed on a per-curbed-mile basis at a rate of st $54.87 per mile (rising to $56.52 per mile on July 1). Based on current service levels, the City sweeps approximately 45,000 curb miles annually. Residential streets account for approximately 33,300 of those curb miles, representing the majority of total sweeping activity and cost. At current service levels, residential sweeping is estimated to cost approximately $1.8 million annually. Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 9 Based on estimated revenues and contract costs, existing revenues are not sufficient to fully support current service levels on an ongoing basis. Staff is evaluating a range of options to address this gap, including potential adjustments to service frequency, operational efficiencies, and the feasibility of providing some services in-house. This includes exploring whether a portion of non-residential sweeping activities could be brought in-house, subject to operational feasibility, equipment needs, and staffing considerations. Staff is also reviewing whether eligible sweeping costs may, where allowable, be offset in part by restricted transportation-related funding sources, such as gas tax revenues. To maintain current service levels in the near term while these options are further evaluated, staff proposes utilizing approximately $0.9 million in one-time funding to offset the projected shortfall for FY 2026-27. This approach provides additional time to develop and implement a long-term strategy without impacting current service or fee rates. Recurring General Fund Spending As reported in the Mid-Year Update on March 3, 2026, the net recurring amount available to the General Fund was $3,070. Based on updated information, the City now estimates a deficit for FY 2026-27. Staff seeks City Council direction on the following recurring items. City Events The City Events budget for FY 2025-26 includes a recurring allocation of $983,000. This amount excludes Public Safety support costs, which are currently absorbed within existing department operating budgets. As part of the FY 2026-27 budget development process, staff proposes reducing the net General Fund cost of the City Events program. Staff is evaluating a combination of strategies to achieve this reduction, including securing increased sponsorship revenue, implementing or expanding participant and vendor fees where appropriate, and reviewing event scale and cost structures. The intent is to continue hosting key community events while increasing sponsorships and fees to reduce the amount of General Fund support required. A summary of the current FY 2025-26 events and associated budget allocations is provided in the table below. EventFY25-26 Budget Fiestas Patrias$498,000 Chicano Heritage$127,000 Tet/Lunar Festival$80,000 July 4 Celebration$115,000 5K/10K Event$93,000 Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 10 Movies at the Park$30,000 Noche De Altares & Juneteenth$40,000 Total$983,000 Staff is seeking City Council direction and concurrence on this approach, including guidance on which events to prioritize or reconsider during the FY 2026-27 budget development process. Boards, Commissions, and Committees The City currently supports multiple Boards, Commissions, and Committees established through voter-approved measures, state law, and the Santa Ana Municipal Code (SAMC). These bodies provide advisory input to the City Council on a range of policy, regulatory, and community matters. Certain bodies are required by state law or voter-approved measures and cannot be eliminated without changes to those legal requirements. Others are established by ordinance in the SAMC and are discretionary in nature. Removal of a discretionary body would require City Council approval of an Ordinance amending the Municipal Code. The table below identifies each Board, Commission, and Committee, including whether it is legally required, the number of members, and meeting frequency. For this report, the estimated annual stipend cost for each body is also provided. Staff requests City Council direction such as providing additional information for potential consolidation, reduction, or elimination of certain boards and commissions. Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 11 Miscellaneous Fees The City charges fees for services provided to individuals that do not benefit the public at large (e.g., building permits). Per state law, the City cannot charge more than the cost to provide these services. To keep pace with rising costs of doing business, including compensation and service-related expenses, staff recommends adjusting miscellaneous fees each year. Last year, the budget included a 4.76% increase, reflecting higher compensation for employees providing these services (including salary and benefits) and increased service-related costs. The Consumer Price Index for Los Angeles-Long Beach-Anaheim increased by 3.59% for the year ending December 2025. However, personnel costs, which account for a significant share of the cost of providing fee-based services, continue to increase at a rate above the CPI. Most employee bargaining groups have negotiated wage increases of 5% for FY 2025-26 and 4% for FY 2026-27, with SEIU and SEIU PTNCS bargaining groups still in negotiations. Costs for workers' compensation and general liability have risen by 10% and 9%, respectively, and employee pension unfunded liability contributions will increase by 14% for FY 2026-27. Inflationary factors are also driving increases in other service-related costs, such as contract services and operational expenses. Based on this information, an increase of up to 4% is justified to ensure the City remains in compliance with state law. Staff seeks City Council concurrence on a recommended 4% increase in miscellaneous fees for the FY 2026-27 budget. Santa Ana Regional Transportation Center The Santa Ana Regional Transportation Center (SARTC) serves as the City’s primary multimodal transit facility, providing regional rail and bus connections and serving as a gateway to Downtown and the Civic Center area. In addition to transit operations, the facility includes leasable commercial and office space. Since FY 2021-22, the General Fund has provided an annual subsidy of approximately $1.1 million to support facility maintenance, security, utilities, and related operating costs. In FY 2021-22, the City also provided $5.4 million in one-time funding for deferred maintenance improvements to address facility conditions, improve code compliance, and enhance the building’s overall marketability. These improvements were intended to better position the facility to attract tenants and increase long-term revenue potential. Despite these investments, the facility still has significant vacant leasable space. Staff will continue to actively pursue leasing opportunities and explore strategies to increase occupancy, generating additional revenue and improving cost recovery. The anticipated 2026 start of OC Streetcar operations may further enhance regional connectivity and activity around the transportation center, thereby supporting future leasing efforts. The City cannot continue to sustain the full $1.1 million annual General Fund subsidy without raising revenue or reducing service levels in other areas. Accordingly, the Public Works Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 12 Agency will be expected to increase lease revenue and improve cost recovery, thereby reducing reliance on General Fund support. Animal Care Shelter The City of Santa Ana contracts with OC Animal Care, a division of the County of Orange, for animal shelter and related services. The City’s Animal Control Officers, under the authority of the Police Department, respond to calls for service, conduct investigations, and enforce animal-related regulations within City limits. Animals collected by City staff and those brought in by residents are transported to the County-operated shelter. The County’s cost allocation methodology is based on the level of animal shelter services provided to the City during the most recently completed fiscal year, including the number of animals received and the care provided. The total cost of services is reduced by fees collected at the shelter, such as animal licensing fees and owner-paid fees to reclaim their pets, resulting in the City’s annual net cost obligation. The County will use data from the most recent fiscal year to estimate the City’s projected cost for the upcoming year. The City’s annual animal shelter cost consists of two components: (1) operating costs associated with providing shelter and veterinary services, and (2) the City’s allocated share of costs associated with the construction of the County’s new animal shelter facility. A summary of these costs is provided in the table below. Shelter New Shelter (Debt Fiscal YearTotal Cost Operating CostsService) FY 21-22$1,963,357$782,467$2,745,824 FY 22-23$2,816,711$776,649$3,593,360 FY 23-24$3,221,078$770,852$3,991,930 FY 24-25$3,577,734$764,999$4,342,733 FY 25-26 (Estimated)$4,226,507$755,549$4,982,056 Since FY 2021-22, shelter operating costs have risen 216% from $1.96 million to an estimated $4.23 million in FY 2025-26. In comparison, General Fund revenue has increased by 7.5% over the same four years. During this period, the City has also contributed its allocated share of the costs to construct the County’s new shelter facility, with FY 2025-26 marking the final year of those payments. Although these construction- related costs will end in FY 2026-27 and are already reflected in the Ten-Year Outlook, shelter operating costs have continued to increase significantly. Given the continued growth in operating costs, staff believes it is appropriate to evaluate the long-term sustainability of the current cost structure. Cities across California are experiencing similar cost pressures related to animal shelter services and have implemented a variety of approaches to manage these expenses, including regional partnerships for shared shelter operations, contracting with nonprofit animal welfare Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 13 organizations for certain services, adjusting cost-sharing methodologies to better reflect service demand, and enhancing licensing compliance to help offset shelter-related costs. Staff will review these practices and assess whether adjustments to the City’s current service delivery or cost structure may improve long-term fiscal sustainability while maintaining appropriate service levels. Internal Service Funds / Enterprise Funds Building Maintenance Operations The City currently accounts for Building Maintenance activities within an Internal Service Fund. Building Maintenance, a division of the Public Works Agency, provides routine maintenance, repairs, and facility support services to City facilities. Costs are allocated to user departments primarily based on square footage and specific service requests. While this structure allows costs to be charged directly to departments, it requires ongoing internal billings between funds, including the General Fund and enterprise funds. To simplify the administrative process and improve internal efficiencies, staff proposes to transition Building Maintenance operations to the General Fund beginning in FY 2026- 27. It is common practice among cities to account for building maintenance within the General Fund, with costs attributable to enterprise and other non-General Fund operations recovered through an established cost allocation methodology. The City’s Indirect Cost Allocation Plan, already in place and applied Citywide, would continue to be used to recover costs from non-General Fund operations using established methodologies, including square footage where appropriate. This change is administrative in nature and is not expected to result in an ongoing net fiscal impact on the General Fund, as costs will continue to be allocated to the appropriate funds. As part of this transition, the remaining spendable fund balance of the Building Maintenance Internal Service Fund, estimated at approximately $930,000, will be transferred to the General Fund. This transfer represents a one-time adjustment associated with the fund closure and is intended to support high-priority repairs to City- owned facilities. Developer Impact Fee Study Update The Public Works Agency is working with a consultant to prepare an updated Developer Impact Fee Study. The study will evaluate existing development impact fees and ensure they appropriately reflect the cost of infrastructure and facility improvements needed to support new development. Developer impact fees are one-time charges on new development that help fund capital improvements required to accommodate growth. In Santa Ana, these fees support infrastructure such as transportation improvements, traffic signal upgrades, street and intersection capacity enhancements, storm drainage facilities, and other public infrastructure necessary to maintain service levels as development occurs. Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 14 Public Works staff will return to the City Council with the study's results and any proposed updates to the fee schedule. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no direct fiscal impact at this time. City Council is scheduled to review the proposed budget in May, followed by a public hearing in June. EXHIBIT(S) 1.Programs by Department and Spending Priority 2.Credit Card Processing Fee Comparison 3.Detailed FY 2025-26 Measure X Spending Plan Submitted By: Alexander Trinidad, Executive Director, Finance and Management Services Agency Approved By: Alvaro Nuñez, City Manager PLANNING AND BUILDING Must-HaveShould-HaveNice-to-Have Budget, accounting, and asset management Policy, contracts, and grants oversightNeighborhood support services (Com-link support) and neighborhood initiatives Records Management Quality of Life Team/Vacant property programs outside of environmental justice enforcement Building inspections efforts prescribed by the General Plan GIS analytics and services Enforcement of building codes Major development project webpage content Fire safety regulations posting and maintenance Permit services Multilingual and translation services Commercial enforcement Neighborhood reviews for historically sensitive Residential and neighborhood enforcement, rental neighborhoods enforcement Human Resources-related services, such as Agency and customer support services onboarding/offboarding, salary step memos, Cannabis regulatory program recruitment tracking, payroll, leave of absence Historic preservation program tracking, etc. Housing production analytics and reporting to the State Information desk staffing that is solely funded Compliance with the California Environmental Quality Act by the Planning and Building Agency (CEQA) Records specialist General Plan compliance Providing paper copies of responses to public Land use permit compliance (e.g., issuance of development records requests, e.g. provide online/digital permits when required by State law) links only. Eliminate all paper records through implantation of new land management system Over-the-counter plan checking services COMMUNITY DEVELOPMENT Must-HaveShould-Have Nice-to-Have Arts and Culture Commission to comply with SAMC and provide Economic Development Art Funding -graffiti arts program, artist grant program, Homeless Outreach Services recommendations to City Council – SAMC Chapter 2, Article IV, Division 8, arts & culture programs, art walk, Section 2-550 to 2-553 mural restoration, and other arts Parking Meters, Parking Lots and Parking Structures to provide parking for older initiatives properties and their businesses that were not planned with sufficient parking – Youth employment program (SAMC: Chapter 36, Article VIII – Parking MetersArts and Culture Commission to Downtown Santa Ana, Chamber comply with SAMC and provide recommendations to City Council - SAMC of Commerce, and other Chapter 2, Article IV, Division 8, Section 2-550 to 2-553 community sponsorships LIBRARY Must-Have Should-Have Nice-to-Have Student Success Cards – In California, local libraries and school Security – basic contracted security Enhanced staffing (additional staffing) – services expanded hours, outreach, and customer districts are legally required to establish partnerships and create service Collections & resources – regularly “Student Success Cards” ensuring every third-grader has access to a updated collections reflecting Enhanced collections – expanded multilingual public library card by 2026 (SB 321, SB 1329). and culturally responsive collections, and community needs, and digital Facility operations – basic building maintenance (HVAC, plumbing, collections (eBooks, audiobooks, special collections electrical), basic tree and landscape maintenance, basic janitorial databases) Local history room – curated collections, services, utilities (power, water, internet) Technology & facilities – public specialized programming, and a dedicated Safety & compliance – provide and maintain life safety systems (fire computers/printers/copiers, public facing space alarms, emergency lighting), ADA accessibility, basic safety policies equipment replacement cycle Library of things – non-traditional lending and procedures (computers, printers), wi-Fi upgrades (technology kits, tools, games, park passes, Patron account software – Integrated Library System (ILS) and public and sufficient bandwidth hot spots, and computers) catalog to maintain patron account confidentiality by law, internet Staffing & service quality – adequate Expanded programming – STEAM, maker, access for staff, and core technology support (hardware, network) staffing levels to reduce service gaps, arts, virtual programming, cultural ongoing staff training and programming, live tutoring services, author Collections – basic physical collections (books and media) professional development talks, book clubs, multilingual programming, Staffing – minimum professional and support staffing to deliver basic Programs & core engagement – basic and special events public and administrative services youth and early literacy Marketing & promotion – robust promotional Governance – required to report to advisory/governing board or programming, digital literacy, and content (newsletters, videos, social media), commission, per the State Education code basic learning support. Basic branded materials and storytelling about Internet & technology compliance – Federal e-rate and CIPA recreational style programming for library impact compliance (internet filtering if public computers are provided) all ages. Community engagement – bookmobile, pop- Outreach – basic outreach to schools up services, and teen centers (El Salvador and and community partners Garfield) Facility enhancements – improved furnishings, study rooms, maker spaces/media labs, library self-service kiosks, and flexible community spaces Technology/Digital Services – RFID/self- checkout technology, security gates, scanning and mobile printing Security –integrated camera systems HUMAN RESOURCES Must-Have Should-HaveNice-to-Have rd PersonnelRecords 3 party consultant to provide Internal employees who are certified in disability interactive process providing Ergonomic evaluations and Workers Compensation and General Liability Programs and professional services under the ADA recommendations Insurance and Fair Employment and Housing Act Certificate of insurance (Third party Employee Benefits Insurance Review Programvendors) – required verification of Labor Relations insurance coverage Class and Comp Program Bargaining Group MOUs Insurance broker that can provide short Security badges Equal Employment Opportunity Commission and Civil Rights term insurance certificates for vendors at a Applicant tracking system Department Investigations reasonable price. Recruitment advertising Provide safety supplies/PPE Staff development and training Ergonomic testing Worker’s Comp Case accelerated process Minimum HR staff levels General Liability claim accelerated process Safety Training Highly functioning HR Information System Training Tracking Learning Management System Personnel Board and Secretary HR Monthly Newsletter Salary Schedules Internship program Job Descriptions Mentoring program Bi-lingual testing Employee appreciation and recognition Leaves administration program Performance Evaluations Disaster Preparedness Training AED machines PUBLIC WORKS Must-Have Should-HaveNice-to-Have Debt payments for purchase of streetlights Quality of Life Team (QOLT) Clean-Up Contract –contracted Median Landscaping services to clean up homeless encampments Crossing Guard Quality of Life Team (QOLT) Public Works Support – City Engineering salaries for review of plan Public Works staff supporting homeless encampment clean- checks and permits up operations Protected bike lane sweeping program Streetlight pole Improvements – lighting installation in PWA Graffiti Abatement Service underlit areas Enhancement (Graffiti Removal) Alley improvement program Bus shelter maintenance Sidewalk repair Traffic calming Pavement maintenance Pothole repair services Park maintenance enhancements Armed security for parks Park Facilities Personnel Street Tree Maintenance (Tree Trimming) Santa Ana Regional Transportation (SARTC) Center subsidy and maintenance Fleet operating supplies FINANCE Must-Have Should-HaveNice-to-Have Treasury support for revenue receipts and banking Proactive revenue and tax collection support Budget public communications to maximize receipts Minimum level of revenue and tax collectionsAward-winning financial documents Auditing and account analysis Vendor invoice processing Ability to invest idle funds in compliance Payroll processing and reporting to comply with law and MOU’s with state law Purchasing requirements necessary to comply with restricted Dedicated software systems to support funding functionality General ledger accounting and financial reporting required by law Long-term financial planning and restricted funding Mail and copy room services Budget preparation to comply with City Charter Debt management to comply with debt covenants Support Measure X Oversight Committee to comply with ballot measure PARKS, RECREATION, AND COMMUNITY SERVICES Must-Have Should-Have Nice-to-Have Charter-required recreation funding – Santa Ana Charter Records Retention Enhanced Part-time staffing Section 607 requires the City to budget funding for public Congregate Meal Program for Seniors Cultura Magazine recreation programs equal to at least six cents per $100 of Health and Wellness Initiatives Santiago Creek ECO Center assessed property value based on the prior fiscal year Zoo tree trimming Butterfly Exhibit Minimum facility operations and maintenance Conservation program Complimentary Parking Senior Transportation, Cooling and Heating Centers, and Public education staffing and programs Resident Free-Days Emergency Center Operations Public volunteer programs Community Special Events Permits and licenses - Required issuance of permits and Recreation program registration and facility reservation Senior Services Programming – enforcement of park use regulations system excursions and activities at the Park utility costs Senior Center Landscape maintenance Animal well-being program Summer Programming – day camps, Staff training program Animal food and medication aquatics program, and other Community engagement Zoo veterinarian summer activities Staff uniforms Pest control program After-school youth & teen Zoo facility maintenance programs/services Contracted recreation classes (e.g., Overnight security for the Zoo karate, art, dance Visitor services and operations staff Athletic facilities Staff uniforms for the Zoo (to meet MOU requirements) CITY MANAGER’S OFFICE Must-Have Should-HaveNice-to-Have City Charter Legislative affairs Council aides City municipal code Policy research Business expositions Administrative leadership Communications team for transparency Sister City Budget oversight/preparation Citywide strategic planning Public engagement events Implementation of council decisions Leadership training Legal compliance CITY CLERK Must-Have Should-Have Nice-to-Have Process Public Records Requests in compliance with the Support for City Boards and Commissions (Gov. Code Commissions California Public Records Act (CPRA) (Government Code §§ §§ 54950–54963) Public searchable documents 7920.000–7931.000) Records Management and Retention as required by database Conduct elections and related services as (CA Elections Gov. Code § 34090 (retention of city records), and Streaming council meetings Code) CPRA access requirements (Gov. Code §§ 7920.000 et Automated PRA requests seq.) Prepare and distribute Council Meeting Agendas and Electronic agenda management Minutes (Government Code §§ 54950–54963) Voter Education and Engagement system Claims Intake and Processing as required under the Lobbyist Registration Program as mandate by Political Government Claims Act (Government Code §§ 810 -996.6.) Reform Act’s intent (Gov. Code §§ 81000–81013) Publication and Noticing of Ordinances and Hearings Contracts Management and Insurance Compliance: (Government Code § 36933) Gov. Code § 23005 (general authority of local agencies) Police Department Must-Have Should-Have Nice-to-Have Office of the Chief of Police: Interdepartmental coordination Leadership & organizational direction Overall oversight of department operations Policy creation, revision & compliance Budget approval & strategic planning Internal Affairs Unit Early intervention Misconduct investigations Use of force tracking and review Policy compliance SB 2 Reporting and Compliance Crime Prevention Police plan check Special events permitting Interdepartmental coordination Public Relations Publicrelations and engagement Medi Media relations & crisis communications g Field Operations/Patrol Patrol Vehicles Community policing/engagement and problem solving Citywide patrol and emergency response Radios Preliminary investigations Computers Field Operations/ Operations Division: Patrol support and emergency Community policing/engagement and problem solving Directed Patrol response N Community policing/engagement QOLT and problem solving; app response Homeless-related cleanup Nothing coordination Patrol support; homeless-related issues Community policing/engagement SRO Program and problem solving On-campus emergency response and crime prevention Must-Have Should-Have Nice-to-Have School support (school-funded, contractually required) Community engagement/outreach PAAL Crime prevention P.E.R.T Community policing/engagement and problem solving Mental health support Community policing /engagement / Community Engagement outreach and problem solving Nothing Crime prevention Probation Task Force/AB109 Community policing/engagement and problem solving Crime Prevention Interagency engagement & cooperation Rehabilitation and reduction of recidivism Homeland Security Grant/UASI Interagency engagement and Training & support UASI Grant Management cooperation City-wide camera management Grant-funded assets and resources Community engagement Emergency Operations Center: Community engagement and Event operations and support Emergency/Disaster planning and response outreach Major operations coordination and response Emergency services grant administration Air Support Unit: Citywide patrol and emergency response support No Area searches/officer safety Must-Have Should-Have Nice-to-Have K9 Unit: Citywide patrol and alarm response Community Engagement o Violent Criminal Apprehension Missing Persons Searches Citywide emergency response and support SWAT (ancillary assignment): Community Engagement and High-risk incidents and warrants Outreach Critical incident response and support Animal Control: Public education Enforcement of animal-related laws and regulations o Citywide vicious and injured animal response Downtown Business Directed Unit: Patrol support and emergency response Community policing/engagement No and problem solving Field Operations/Traffic Division: Motors DUI checkpoints and enforcement Special event support Citywide emergency response and support Community engagement and Traffic collision investigation and support/ Traffic education enforcement/public safety Collision Investigation Unit Case preparation for prosecution Special event support Major/Fatal traffic collision investigation Community engagement and Follow-up traffic-related criminal investigations (hit & run, education etc.) Collision PSO Minor traffic collision investigations Special event support Traffic collision support Community engagement and education Parking Control Unit Supplemental traffic control Special event support Parking enforcement Community engagement and O education Investigations/CAP (Crimes Against Persons): Must-Have Should-Have Nice-to-Have Homicide Unit Follow-up hate crime investigations and DOJ reporting Evidence analysis and warrant service Homicide investigations Follow-up felony assault investigations Follow-up kidnapping investigations Case preparation for prosecution Cold Case Unit Support for homicide investigations Follow-up homicide investigations (cold case) Evidence analysis Case preparation for prosecution Missing Persons & Aggravated Assaults Support for assault investigations Follow-up missing persons investigations Evidence analysis Follow-up assault investigations Case preparation for prosecution DOJ Validations Gang Suppression Unit Community engagement and problem-solving Gang-related investigations Gang activity suppression Case preparation for prosecution Expert court testimony Warrant preparation and service Court Liaison Unit Case follow-up for filing Case review and submission Coordination of court appearances/Liaison w/DA’s Office and City Attorney’s Office Subpoena processing Investigations/SID (Special Investigations Division) Career Criminal Apprehension Unit and US Marshall’s Task Force Interagency coordination Surveillance and surveillance support Complex criminal investigations targeting career criminals Fugitive apprehension & organized crime Evidence analysis and warrant service Expert court testimony Case preparation for prosecution Must-Have Should-Have Nice-to-Have ABC related investigations and Vice Unit, OCRCFL, and OCHTTF Surveillance and surveillance support organized retail theft Suppression and investigation of vice-related crimes Interagency coordination Interagency Cooperation (prostitution, gambling, and narcotics) Expert court testimony Case preparation for prosecution Computer forensics Human trafficking investigations Interagency Cooperation Narcotics Unit & RNSP TF Surveillance and surveillance support Suppression and investigation of major narcotics-related crimes Interagency coordination Expert court testimony Patrol support and emergency response Investigations/CID (Criminal Investigations Division) Robbery and Assault Unit Interagency coordination and Warrant preparation and service Robbery investigation surveillance support Case Prep for Prosecution Misdemeanor assault investigation Special Crimes (Child Abuse, Sexual Assault, DV, and Sex Community Engagement Warrant preparation and service Registrant Units Interagency Cooperation Expert court testimony Child and elder abuse investigations Case preparation for prosecution Sexual assault investigations Warrant preparation and service Domestic violence investigations and victim support Sex registrant registration and compliance verification Restraining order violations Internet crimes against children Property Crimes (Auto Theft, Burglary, and Economic Crimes Units) Community outreach and Auto theft-related investigations Sexual assault Interagency coordination and support Engagement investigations Case preparation for prosecution Burglary and theft investigations Warrant preparation and service Economic crimes investigations (ID theft, check fraud, credit card fraud/theft, embezzlement, financial elder abuse, and counterfeiting) Vandalism, arson, animal abuse, and hate crime investigations Must-Have Should-Have Nice-to-Have Crime Analysis Unit Jeanne Clery stat submission Provides stats for community requests, monthly Assist in identifying and addressing meetings emerging crime patterns Provide end-user assistance in acquiring and implementing information system solutions and software infrastructure. Assists Investigations Bureau with call detail record analysis, cellphone tower dumps, social media returns, sexual assault case linking, etc. Suspect work-ups; social media leads Assists with public records requests Collect, clean and disseminate data Tracks ghost guns, NIBIN hits; enter cold cases into FBI’s VICAP Forensic Services Critical incident analysis and review Crime scene Interagency coordination and Collection and submission of DNA evidence processing/evidence collectionsupport Expert court testimony Lab processing of collected evidence - critical to identifying suspects and prosecution efforts Fingerprint analysis Firearm analysis/Ballistics Case preparation for prosecution Technical skillset maintenance Administration/Human Resources Human Resources/Background Investigations/Recruitment Section Hiring and recruitment Background investigations Personnel management (workers comp, transfers, complaints, etc.) Promotional exam administration Administration/Training Training, Field Training Program, and Academy Support Critical incident analysis and review Administration and coordination of POST-mandated training Must-Have Should-Have Nice-to-Have Administration and coordination of field training for new Tracking and analysis of uses of force, pursuits and officers officer-related traffic collisions Monthly firearms qualifications (Range) Coordination of Academy-based training Coordination and administration of in-house training courses Administration/Administrative Support Division Housekeeping and cleaning services Fiscal Unit and CDC & Facilities Unit Budget administration Payroll Payments Procurement and distribution of required supplies and equipment Building and property maintenance Administration/Communications Community Outreach and Engagement Telephonic reports Dispatch and TRU Recruitment Events E-Reports (online reporting system) 911 and non-emergency call taking Tactical Dispatch Team (ancillary) Dispatching field units Monitoring officer safety PRR; processing of call recordings Monitor NCIC Teletype/ CLETS entries Administration/Records Division Records support for patrol and investigations Records Unit and Evidence Unit Records support for PRA and 1421 material Report Storage and Management Evidence/stored property disposition NIBRS/UCR crime reporting compliance Secure storage of evidence Maintaining chain of custody Administrative/Information Services Division CAD/RMS administration Information systems and Computer Services Digital evidence management Software management Cybersecurity Computer and tech support Must-Have Should-Have Nice-to-Have Jail Administration Booking and intake operations including identification, Ongoing correctional staff training and professional Technology modernization and medical screening, classification, and documentation- development automation tools improving efficiency and reporting Transfers and transportation to county facilities, courts, Enhanced inmate management system and other jurisdictions Educational partnerships related to Preventative facility maintenance and operational correctional services Jail records management including warrants, court orders, support services-infrastructure custody documentation, and releases Facility improvements that enhance Adequate staffing levels to maintain safe supervision workspace or operational efficiency Facility operations including fire systems, emergency ratios and reduce operational risk beyond minimum requirements procedures, and security systems Jail Contracts-Medical, JMS, Food Services, various vendors. (Compliance with Title 15 regulations, PREA standards, ADA requirements, and mandated inspections) wĻŭźƚƓğƌ /ƚƒƦğƩźƭƚƓ /ƩĻķźƷ /ğƩķ tƩƚĭĻƭƭźƓŭ CĻĻƭ !ŭĻƓĭǤtĻƩĭĻƓƷğŭĻCƌğƷ CĻĻ aźƓźƒǒƒbƚƷĻƭʹ CĻĻ {ƷǒķǤͲ ǝğƩźğĬƌĻ ƩğƷĻ ǞźƷŷ ƒğǣ ƚŅ υЍ͵ЉЉ ƦĻƩ ƷƩğƓƭğĭƷźƚƓͳ ķƚĻƭ ƓƚƷ ğƦƦĻğƩ .ƩĻğЏ͵ЉЉіƷƚ ĬĻ źƓ ĻŅŅĻĭƷ͵ /ƚƭƷğ aĻƭğЋ͵АЉі /ǤƦƩĻƭƭğƩźĻƭ bΉ!!ĭƷǒğƌ /ƚƭƷ CƚǒƓƷğźƓ ğƌƌĻǤЋ͵ЉЉі DğƩķĻƓ DƩƚǝĻЋ͵ЋЉіυ Ћ͵ЉЉ IǒƓƷźƓŭƷƚƓ .ĻğĭŷЌ͵ЉЉі \[ğ tğƌƒğğƩźĻƭ bΉ!!ĭƷǒğƌ /ƚƭƷ \[ğƉĻ CƚƩĻƭƷЌ͵ЉЉі \[ƚƭ !ƌğƒźƷƚƭЌ͵ЎЉі bĻǞƦƚƩƷ .ĻğĭŷЋ͵БЎі hƩğƓŭĻ Ќ͵ЊЋі!ƦƦƌźĻķ ğƭ ğ ƦĻƩĭĻƓƷğŭĻ ƚŅ ĭŷğƩŭĻķ ŅĻĻ tƌğĭĻƓƷźğЋ͵ЎЉі {Ļğƌ .ĻğĭŷЌ͵ЉЉі {ƷğƓƷƚƓЋ͵ЏЉі ǒƭƷźƓğƩźĻƭ bΉ!!ĭƷǒğƌ /ƚƭƷ ‘ĻƭƷƒźƓƭƷĻƩЌ͵ЉЉіCĻĻ ĭŷğƩŭĻķ ŅƚƩ ğƒƚǒƓƷƭ ƚǝĻƩ υЎЉЉ h/ ƩĻğƭǒƩĻƩЋ͵ЋЎіυ Њ͵ЎЉ /5C!Ћ͵ЌЉі ΫCƚƩ ĻƓƷźƷźĻƭ ğƭƭĻƭƭźƓŭ ĬƚƷŷ ğ ŅƌğƷ ŅĻĻ ğƓķ ğ ƦĻƩĭĻƓƷğŭĻΏĬğƭĻķ ŅĻĻͲ ƷŷĻ ƦĻƩĭĻƓƷğŭĻ źƭ ĭğƌĭǒƌğƷĻķ ƚƓ ƷŷĻ ğƦƦƌźĭğĬƌĻ ǒƭĻƩ ŅĻĻͲ ğƓķ ƷŷĻ ŅƌğƷ ŅĻĻ źƭ ƭǒĬƭĻƨǒĻƓƷƌǤ ğķķĻķ Ʒƚ ğƩƩźǝĻ ğƷ ƷŷĻ ƷƚƷğƌ ĭŷğƩŭĻ͵ C—ЋЉЋЎΏЋЏ aĻğƭǒƩĻ – {ƦĻƓķźƓŭ tƌğƓ {ƦĻƓķźƓŭ tƌğƓ 5ĻƦğƩƷƒĻƓƷ ƚƷğƌ ƦƌğƓ /ğƷĻŭƚƩǤ5ĻƭĭƩźƦƷźƚƓhƓĻΏźƒĻ ǤƦĻwĻƭƦƚƓƭźĬƌĻƭƦĻƓķźƓŭ ağźƓƷğźƓ 9ŅŅĻĭƷźǝĻ ВΏЊΏЊ Ca{! ağƓķğƷƚƩǤ !ƒĬǒƌğƓĭĻ {ĻƩǝźĭĻ /ƚƓƷƩğĭƷ źƓĭƩĻğƭĻ Ʒƚ ƒğźƓƷğźƓ ƭĻƩǝźĭĻ ƌĻǝĻƌ ЌͲЊАЌͲЋЊЉ wĻƭƦƚƓƭĻ Ca{! ağƓķğƷƚƩǤ wĻƷğźƓźƓŭ CźƩĻŅźŭŷƷĻƩƭhƩğƓŭĻ /ƚǒƓƷǤ CźƩĻ ĭƚƓƷƩğĭƷ źƓĭƩĻğƭĻ Ʒƚ ƒğźƓƷğźƓ ƭĻƩǝźĭĻ ƌĻǝĻƌ ЊЍͲЏБЎͲЎЉЉ ƓƩĻƭƷƩźĭƷĻķ DĻƓĻƩğƌ wĻǝĻƓǒĻ Ca{! tǒƩƦƚƭĻ ağƓķğƷƚƩǤ C—ЊБΏЊВ .ǒķŭĻƷ 5ĻŅźĭźƷ Ώ tƌğƓƓĻķ ƭĻ ƚŅ DĻƓĻƩğƌ CǒƓķ wĻƭĻƩǝĻ ЊЉͲЋЉЉͲЉЉЉ ƓƩĻƭƷƩźĭƷĻķ DĻƓĻƩğƌ wĻǝĻƓǒĻ Ca{! tǒƩƦƚƭĻ ağƓķğƷƚƩǤ C—ЊБΏЊВ .ǒķŭĻƷ 5ĻŅźĭźƷ Ώ tƌğƓƓĻķ {ƷğŅŅ {ğǝźƓŭƭ ƓƚƷ źƒƦƌĻƒĻƓƷĻķ ЊͲЎЉЉͲЉЉЉ ƓƩĻƭƷƩźĭƷĻķ DĻƓĻƩğƌ wĻǝĻƓǒĻ t‘! tǒƩƦƚƭĻ ağƓķğƷƚƩǤ bĻǞ 5ĻĬƷ tğǤƒĻƓƷƭ ŅƚƩ tǒƩĭŷğƭĻ ƚŅ {ƷƩĻĻƷƌźŭŷƷƭ БЉЉͲЉЉЉ {ǒĬƷƚƷğƌ ağƓķğƷƚƩǤ {ƦĻƓķźƓŭ LƷĻƒƭ ЌЉͲЌЎБͲАЊЉ 5źƭĭƩĻƷźƚƓğƩǤ !ķķƩĻƭƭźƓŭ IƚƒĻƌĻƭƭƓĻƭƭtǒĬƌźĭ {ğŅĻƷǤ wĻƭƦƚƓƭĻ Ώ IƚƒĻƌĻƭƭƓĻƭƭ Λ\[ğĬƚƩΜt5 БͲЊЉЉͲЉЉЉ t5 5źƭĭƩĻƷźƚƓğƩǤ !ķķƩĻƭƭźƓŭ IƚƒĻƌĻƭƭƓĻƭƭtǒĬƌźĭ {ğŅĻƷǤ wĻƭƦƚƓƭĻ Ώ IƚƒĻƌĻƭƭƓĻƭƭ Λ/ƚƓƷƩğĭƷǒğƌ ğƓķ hƷŷĻƩΜ ЊͲЋЉЉͲЉЉЉ 5źƭĭƩĻƷźƚƓğƩǤ !ķķƩĻƭƭźƓŭ IƚƒĻƌĻƭƭƓĻƭƭvh\[ /ƌĻğƓΏ Ʀ /ƚƓƷƩğĭƷ IƚƒĻƌĻƭƭ {ĻƩǝźĭĻƭt‘! 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RECOMMENDED ACTIONS 1.Adopt the environmental determination for Amendment Application (Zone Change) No. 2026-02, finding that the Project is within the scope of the 2022 Santa Ana General Plan Environmental Impact Report (EIR) (SCH No. 2020029087) and is exempt from further environmental review pursuant to CEQA Guidelines Sections 15162 and 15061(b)(3); and 2.Adopt an ordinance approving Amendment Application (Zone Change) No. 2026- 02. ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2026-02 AMENDING THE ZONING FOR THE PROPERTIES LOCATED AT 2101 AND 2109 EAST SANTA CLARA AVENUE (APNS: 396-261-26 AND 396-261-38) FROM GENERAL AGRICULTURAL (A1) TO ARTERIAL COMMERCIAL (C5); read by title only and waive further reading. GOVERNMENT CODE §84308 APPLIES: Yes EXECUTIVE SUMMARY The City of Santa Ana is proposing to change the zoning district designation of two properties located at 2101 and 2109 East Santa Clara Avenue (“Site”) from General Agricultural (A1) to Arterial Commercial (C5) (“Project”). This zone change is to bring the zoning of the subject properties into consistency with the City’s General Plan, in AA No. 2026-02 for 2101 and 2109 East Santa Clara Avenue Zone Change April 7, 2026 Page 2 accordance with Government Code Section 65860, which requires that zoning regulations be consistent with the adopted General Plan. The proposed C5 zoning designation establishes consistency with the General Plan’s land use policies and objectives, supports commercial activation along Santa Clara Avenue, maintains consistency with the adjacent commercial center’s C5 zoning designation, and facilitates economic development, local-serving businesses, and employment opportunities while maintaining compatibility with surrounding uses. The requested action does not authorize any new development and is not tied to any development project application. CEQA review is satisfied by the 2022 General Plan EIR (SCH No. 2020029087) and the zone change is exempt from further environmental review under CEQA Guidelines Sections 15162 and 15061(b)(3). Planning Commission Action On February 23, 2026, the Planning Commission held a public hearing for the Project and voted 5:0:2 (Commissioners Oliva and Pham absent) to recommend that the City Council: (1) adopt the environmental determination for Amendment Application (Zone Change) No. 2026-02, finding that the Project is within the scope of the 2022 Santa Ana General Plan Environmental Impact Report (EIR) (SCH No. 2020029087) and is exempt from further environmental review pursuant to CEQA Guidelines Sections 15162 and 15061(b)(3); and (2) approve Amendment Application (AA) No. 2026-02. DISCUSSION Project Description The proposed Project consists of a City-initiated Amendment Application (AA) No. 2026- 02 to amend the City of Santa Ana Zoning Map by changing the zoning district designation of two properties located at 2101 and 2109 East Santa Clara Avenue from General Agricultural (A1) to Arterial Commercial (C5). The requested action does not authorize any development on the site, which would be subject to separate review by the City for any administrative or discretionary actions. Table 1: Project and Location Information ItemInformation Project Address and Council Ward2101 and 2109 East Santa Clara Avenue – Ward 3 Nearest IntersectionTustin Avenue and Santa Clara Avenue General Plan DesignationGeneral Commercial (GC) – No change Existing Zoning DesignationGeneral Agricultural (A1) Proposed Zoning DesignationArterial Commercial (C5) NorthCommercial center EastDrive-through restaurant Surrounding Land Uses SouthMulti-family residential (Woodlyn North Condominiums), preschool/kindergarten, AA No. 2026-02 for 2101 and 2109 East Santa Clara Avenue Zone Change April 7, 2026 Page 3 ItemInformation commercial center WestParking and vehicular access for Horizon Apartments multi-family residential community Property Size0.81-acres (35,400 square feet) The subject sites contain two one-story, single-family Existing Site Developmentresidences approximately 2,530 and 3,904 square feet in size, with associated accessory structures. Existing Site Uses Single-family residences (2) SAMC Sections 41-665 and 41-667 Zoning Code Sections Affected Project Background The project site encompasses approximately 0.81 acres (35,400 square feet) and is currently developed with two legal nonconforming single-family residences. The earliest aerial imagery from 1938 shows that the subject properties appeared to be first developed as an orchard. No buildings or structures were present on site at this time and most of the surrounding area was used for orchards, with some houses and agricultural buildings in the vicinity. The single-family residence addressed as 2101 East Santa Clara Avenue was constructed at an unknown date and moved to the site in 1967. The single-family residence addressed as 2109 East Santa Clara Avenue was constructed circa 1957 and included the main house and garage. The now-commercial shopping center to the north of the Project site remained undeveloped until 1972. Today, the two subject properties are legal non-conforming, as they do not meet most of the development standards for the underlying zone and were constructed prior to 1960. Based on permit and title records, both 2101 and 2109 East Santa Clara Avenue were owned by the Newcomb family until they were sold to SRP Stater Bros, LLC in February 2021. In March 2023, the property owners submitted a voluntary lot merger application (No. 2023-02) to consolidate 2101 and 2109 East Santa Clara Avenue into a single legal lot. The lot merger application was executed and recorded in June 2023. In April 2022, Development Project (DP) Review No. 2022-06 was submitted for a 3,975- square-foot McDonald’s with drive-through operations at 2101 and 2109 East Santa Clara Avenue. To facilitate the project, the applicant requested an amendment application (zone change) from General Agricultural (A1) to Arterial Commercial (C5) and a Conditional Use Permit (CUP) for the drive-through operations. On February 26, 2024, the Planning Commission held a public hearing and recommended City Council approval of the requested zone change and CUP. On April 2, 2024, the City Council held a public hearing for the requested entitlements. However, the applicant verbally withdrew their application prior to any action by the City Council. Therefore, no project was considered by the City Council and the Site retained its current zoning designation. AA No. 2026-02 for 2101 and 2109 East Santa Clara Avenue Zone Change April 7, 2026 Page 4 Government Code Section 65860 Government Code Section 65860 was first enacted in the early 1970s as part of California’s Planning and Zoning Law to ensure that local zoning ordinances align with adopted General Plans. Under the original law, cities and counties were required to make their zoning consistent with their General Plan by January 1, 1974, and to amend inconsistent zoning within a reasonable time after a General Plan amendment. The statute established the General Plan as the foundational policy document for land use decisions and obligated local agencies to bring zoning into conformity with that plan. In 2023, the Legislature passed Assembly Bill 821 (AB 821), which amended Section 65860 and became effective January 1, 2024. AB 821 strengthened and clarified the consistency requirement by setting firm timelines and procedures for addressing inconsistencies. For example, when a development application is consistent with the General Plan but inconsistent with zoning, a local agency must either amend the zoning ordinance within 180 days or process the application under applicable law and objective General Plan standards without relying on inconsistent zoning. The amendment also expands enforcement provisions, reaffirming that outdated zoning may not be used to delay or block development that is otherwise allowed under the General Plan. The purpose of the proposed zone change is to bring the Site into consistency with the City’s General Plan, which was adopted in 2022, in compliance with Government Code Section 65860. Government Code Section 65860 requires that zoning regulations be consistent with the adopted General Plan, including its land use designations, goals, and policies. As a result of the 2022 General Plan Update, the subject properties were designated General Commercial (GC). However, the underlying zoning remained A1, creating an inconsistency between the General Plan and the Zoning Code. Project Analysis In accordance with Section 41-667 of the Santa Ana Municipal Code (SAMC) and Government Code Section 65860, staff recommends that the City Council adopt an ordinance approving AA No. 2026-02 to change the zoning designation of the subject properties from A1 to C5. The zone change is a corrective, policy-implementing action intended to resolve the existing inconsistency between land use policy and zoning regulations and does not authorize any specific development project. Moreover, no construction, demolition, or change in use is proposed as part of this action. Lastly, the proposed zone change implements the 2022 General Plan Land Use Element, supports orderly and planned development along a designated commercial corridor, and ensures ongoing compliance with State law governing General Plan and zoning consistency. The C5 zoning designation reflects the established commercial character of the surrounding area, including the adjacent shopping center to the north and east and the broader commercial corridor along Tustin Avenue. The GC land use designation is AA No. 2026-02 for 2101 and 2109 East Santa Clara Avenue Zone Change April 7, 2026 Page 5 intended to accommodate highly visible, arterial-oriented commercial uses that support employment opportunities and complementary services near established residential neighborhoods. Accordingly, the proposed C5 zoning designation is appropriate for the subject properties and fulfills the City’s obligation to maintain consistency between the Zoning Code and the General Plan. This proposed zoning amendment brings the properties into consistency with the GC land use designation adopted as part of the City’s 2022 General Plan Update and is compatible with the General Plan’s objectives, policies, and land use framework. Lastly, any future development or redevelopment of the site would be subject to separate discretionary review, environmental analysis, and permitting in accordance with applicable City regulations, including the SAMC, CEQA, and adopted design standards (if applicable). Existing Zoning District Designation Proposed Zoning District Designation Site Site General Plan Consistency The City of Santa Ana General Plan Update (GPU) was adopted in April 2022 following a seven-year public outreach and engagement process that included more than 60 community meetings and workshops, online surveys, direct mailers, study sessions, and individual meetings with the Planning Commission and City Council. This inclusive process informed the updated Land Use Element, which establishes the City’s long-term land use vision and development policies and reflects community goals related to growth, livability, and economic vitality (Goal LU-1; Policy LU-1.1). Prior to adoption of the GPU, the subject properties were designated with a split land use of Institutional (INS) and GC. The GPU updated the designation to GC in its entirety, consistent with adjacent commercial center properties and the surrounding arterial corridor. However, the underlying zoning designation remained A1 and necessitates a zone change to resolve the inconsistency between the General Plan and the Zoning Code. The proposed C5 zoning amendment is consistent with the GC land use designation and satisfies Government Code Section 65860, which requires zoning regulations to be compatible with General Plan objectives, policies, and land use designations. The GC AA No. 2026-02 for 2101 and 2109 East Santa Clara Avenue Zone Change April 7, 2026 Page 6 designation is intended to accommodate highly visible, arterial-oriented commercial uses that support employment, local-serving retail, and complementary commercial activities near established residential neighborhoods (Goal LU-2; Policies LU-2.1 and LU-2.2). The proposed zone change resolves the zoning inconsistency with the 2022 GPU and supports reinvestment and business development consistent with the surrounding commercial corridor (Policies LU-2.6 and LU-2.7). Existing General Plan Land Use Designation By aligning zoning with adopted land use policy, the amendment promotes compatibility with adjacent development and preserves neighborhood integrity through the future application of City design and development standards (Goal LU-3; Policies LU-3.4 and LU-3.7). Any future development would be subject to applicable City review processes to ensure compatible scale, massing, and site design, contributing to a safe, attractive, and economically viable commercial environment. The proposed zoning amendment is also consistent with the General Plan’s Economic Prosperity goals related to job creation and retention (Goal EP-1; Policy EP-1.2), economic diversification and support for high-growth and complementary businesses (Goal EP-2; Policies EP-2.1 and EP-2.3), and the promotion of a business-friendly environment that facilitates investment and balanced land use decisions (Goal EP-3; Policies EP-3.7 and EP-3.8). By resolving existing zoning inconsistencies and enabling commercial activation of underutilized land along an arterial corridor, the proposed zone change supports long-term economic vitality, employment opportunities, and fiscally productive land uses consistent with the adopted General Plan. Public Notification and Community Outreach Project notifications were posted, published, and mailed in accordance with City and State regulations. Copies of the public notice, including a 1,000-foot notification radius map, and the site posting are provided attached hereto as Exhibit 6. The project site is not located within the boundaries of a neighborhood association. However, prior to the Planning Commission public hearing, representatives of nearby neighborhood associations were contacted to identify any potential concerns related to the proposed request. No issues or concerns were identified during this outreach effort. AA No. 2026-02 for 2101 and 2109 East Santa Clara Avenue Zone Change April 7, 2026 Page 7 In addition, no written or verbal public comments were received prior to or during the Planning Commission public hearing. As of the preparation of this report, no public concerns have been raised regarding the proposed zone change. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the Project is not subject to additional environmental review pursuant to CEQA Guidelines Section 15162, as it is within the scope of the 2022 City of Santa Ana General Plan Environmental Impact Report (EIR) (SCH No. 2020029087), which was certified in conjunction with adoption of the General Plan Update. Section 15162 prohibits preparation of a subsequent or supplemental EIR unless substantial changes are proposed to the project, substantial changes occur in the circumstances under which the project is undertaken, or new information of substantial importance becomes available that was not known and could not have been known at the time the prior EIR was certified. The proposed zone change is a City-initiated corrective action that aligns zoning with the GC land use designation adopted through the 2022 General Plan Update and does not authorize any new development, construction, or change in intensity beyond what was previously analyzed in the General Plan EIR. The land use designation and development assumptions associated with the proposed zoning were fully evaluated in the certified General Plan EIR. No substantial changes to the project, no changes in circumstances, and no new information requiring major revisions to the EIR have been identified. Accordingly, no subsequent or supplemental EIR is required pursuant to CEQA Guidelines Section 15162. In addition, the proposed zoning amendment is exempt from further environmental review under CEQA Guidelines Section 15061(b)(3) (the “Common Sense Exemption”), as it can be determined with certainty that the action will not result in a significant effect on the environment. The zone change is administrative and policy-implementing in nature, serves to maintain consistency between the Zoning Code and the General Plan pursuant to Government Code Section 65860, and does not, by itself, enable or approve physical development. Any future development would be subject to separate discretionary review and project-level CEQA analysis, as applicable. Therefore, the environmental effects of the proposed action have already been adequately analyzed in the 2022 General Plan EIR, and no further environmental review is required. A Notice of Determination and Notice of Exemption, Environmental Review No. 2026-05, will be filed for the project. FISCAL IMPACT There is no fiscal impact associated with this action. AA No. 2026-02 for 2101 and 2109 East Santa Clara Avenue Zone Change April 7, 2026 Page 8 EXHIBITS 1.Ordinance Approving AA No. 2026-02 2.Vicinity Zoning and Aerial View 3.Site Photos 4.Certified General Plan Update Environmental Impact Report (hyperlink) 5.February 23, 2026 Planning Commission Staff Report and Exhibits (hyperlink) 6.Copy of Public Hearing Notice Submitted By: Ali Pezeshkpour, AICP, Executive Director of Planning and Building Agency Approved By: Alvaro Nuñez, City Manager ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2026-02 AMENDING THE ZONING FOR THE PROPERTIES LOCATED AT 2101 AND 2109 EAST SANTA CLARA AVENUE (APNS: 396-261-26 AND 396-261-38) FROM GENERAL AGRICULTURAL (A1) TO ARTERIAL COMMERCIAL (C5) 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. The Planning and Building Agency PBA Amendment Application (AA) No. 2026-02, to change the zoning district designation of two properties located at 2101 and 2109 East Santa Clara Avenue (APNs 396-261-26 and 396-261-38) from General Agricultural (A1) to Arterial Commercial (C5) . B. Chapter 41, Article I, Division 1, Section 41-1 of the Santa Ana Municipal Code establishes that because of the necessity of segregating the location of residences, businesses, trades and industries; 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 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 regulations are considered necessary in order to: encourage the most appropriate use of land, conserve and stabilize property value, provide adequate open spaces for light and air and to prevent and fight fires, prevent undue concentration of population, lessen congestion on streets and highways, and promote the health, safety and general welfare of the people, all as part of the general plan of the City. The City of Santa Ana has adopted a zoning map which has since been amended from time to time. C. On April 19, 2022, the City adopted the General Plan Update, which went into effect on May 26, 2022. As a result of the 2022 General Plan Update, the subject properties were designated General Commercial (GC) under the General Plan. However, the underlying zoning remained A1, creating an inconsistency between the General Plan and the Zoning Code. D. Government Code Section 65860, first enacted in the early 1970s as part of align with adopted General Plans, establishing the General Plan as the foundational policy document for land use decisions. Cities must amend inconsistent zoning within a reasonable time after General Plan Ordinance No. NS-XXXX Page 1 of 6 amendments. In 2023, AB 821 strengthened these requirements effective January 1, 2024, by imposing firm timelines, such as 180 days to amend zoning for consistent development applications and clarifying that outdated zoning cannot block General Plan-compliant projects. E. The Project is not tied to any development project application and is being initiated by the City to bring the zoning of the subject properties into consistency with the City General Plan, in accordance with Government Code Section 65860, which requires that zoning regulations be consistent with the adopted General Plan. The zone change is a corrective, policy- implementing action intended to resolve the existing inconsistency between land use policy and zoning regulations and does not authorize any specific development project. No construction, demolition, or change in use is proposed as part of the Project. F. Based on the entire record before the City Council and all written and oral evidence presented, the City Council finds that the Project aligns with the General Plan long-term land use vision and development policies and reflects community goals related to growth, livability, and economic vitality (Goal LU-1; Policy LU-1.1). The proposed C5 zoning amendment is consistent with the GC land use designation and satisfies Government Code Section 65860, which requires zoning regulations to be compatible with General Plan objectives, policies, and land use designations. The GC designation is intended to accommodate highly visible, arterial-oriented commercial uses that support employment, local-serving retail, and complementary commercial activities near established residential neighborhoods (Goal LU-2; Policies LU-2.1 and LU- 2.2). The proposed zone change resolves the zoning inconsistency created by the 2022 GPU and supports reinvestment and business development consistent with the surrounding commercial corridor (Policies LU-2.6 and LU- 2.7). By aligning zoning with adopted land use policy, the amendment promotes compatibility with adjacent development and preserves neighborhood integrity through the future application of City design and development standards (Goal LU-3; Policies LU-3.4 and LU-3.7). Any future development would be subject to applicable City review processes to ensure compatible scale, massing, and site design, contributing to a safe, attractive, and economically viable commercial environment. Economic Prosperity goals related to job creation and retention (Goal EP-1; Policy EP-1.2), economic diversification and support for high-growth and complementary businesses (Goal EP-2; Policies EP-2.1 and EP-2.3), and the promotion of a business-friendly environment that facilitates investment and balanced land use decisions (Goal EP-3; Policies EP-3.7 and EP-3.8). By resolving existing zoning inconsistencies and enabling commercial Ordinance No. NS-XXXX Page 2 of 6 activation of underutilized land along an arterial corridor, the proposed zone change supports long-term economic vitality, employment opportunities, and fiscally productive land uses consistent with the adopted General Plan. G. On February 23, 2026, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt an ordinance approving Amendment Application No. 2026-02. H. For the reasons contained herein, and each of them, Amendment Application No. 2026-02 is hereby found and determined to be consistent with the intent and purpose of Chapter 41 of the Santa Ana Municipal Code; thus, changing the zoning district is found to be consistent with the General Plan of the City of Santa Ana and is otherwise justified by the public necessity, convenience, and general welfare. Section 2. The Amendment Application consists of amendments to the Zoning Map, as shown in Exhibit A, attached hereto and incorporated herein by reference. Section 3. The City Council has reviewed and considered the information contained in the analysis performed pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines. In accordance with CEQA Section 15162, the Project is not subject to additional environmental review, as it is within the scope of the 2022 Santa Ana General Plan EIR (SCH No. 2020029087), which was certified in conjunction with adoption of the General Plan Update. Section 15162 prohibits preparation of a subsequent or supplemental EIR unless substantial changes are proposed to the project, substantial changes occur in the circumstances under which the project is undertaken, or new information of substantial importance becomes available that was not known and could not have been known at the time the prior EIR was certified. The proposed zone change is a City-initiated corrective action that aligns zoning with the GC land use designation adopted through the 2022 General Plan Update and does not authorize any new development, construction, or change in intensity beyond what was previously analyzed in the General Plan EIR. The land use designation and development assumptions associated with the proposed zoning were fully evaluated in the certified General Plan EIR. In the 2022 General Plan, the parcels were re-designated General Commercial (GC), which encompasses commercial zoning districts intended for highly visible and accessible shopping opportunities along arterial corridors, such as C-5, supporting a range of retail, service, recreational, cultural, business, and educational uses. No substantial changes to the project, no changes in circumstances, and no new information requiring major revisions to the EIR have been identified. Accordingly, no subsequent or supplemental EIR is required pursuant to CEQA Guidelines Section 15162. In addition, the proposed zoning amendment is exempt from further environmental review be seen with certainty that the action will not result in a significant effect on the environment. The zone change is administrative and policy-implementing in nature, serves to maintain consistency between the Zoning Code and the General Plan pursuant Ordinance No. NS-XXXX Page 3 of 6 to Government Code Section 65860, and does not, by itself, enable or approve physical development. Any future development would be subject to separate discretionary review and project-level CEQA analysis, as applicable. Therefore, the environmental effects of the proposed action have already been adequately analyzed in the 2022 General Plan EIR, and no further environmental review is required. A Notice of Determination and Notice of Exemption, Environmental Review No. 2026-05, will be filed for the Project Section4.TheCityCounciloftheCityofSantaAna,afterconductingthe public hearing, hereby approves Amendment Application No. 2026-02to changethe zoning designation of the properties located at 2101 and 2109 EastSanta Clara Avenue (APN: 396-261-26 and396-261-38) from A1 to C5. This decision is baseduponthe evidencesubmittedattheabovesaidhearing,whichincludes,butisnot limited to: the Request for Planning Commission Action dated February 23, 2026andexhibitsattached hereto;and the public testimony, written and oral, all of which are incorporated herein by this reference. Section5.An amended Sectional District Map, showing the above described changesinusedistrictdesignation,isherebyapprovedandattachedheretoasExhibitA, andincorporatedbythisreferenceasthoughfullysetforthherein. Section6.Ifany section,subsection,sentence,clause,phraseor portionof 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. Section7.This Ordinance shall become effective thirty (30) days after its adoption. Section 8.TheClerk shall certify the adoption of this ordinance and shall causethe same tobepublishedas required bylaw. ADOPTED thisdayof ,2026. Valerie Amezcua Mayor APPROVEDASTOFORM: SoniaR.Carvalho City Attorney By: Melissa M. Crosthwaite Senior Assistant City Attorney Ordinance No.NS-XXXX Page4of6 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Ordinance No. NS- XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2026 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: City Clerk City of Santa Ana Ordinance No. NS-XXXX Page 5 of 6 Exhibit A Ordinance No. NS-XXXX Page 6 of 6 AA No. 2026-02 Zone Change at 2101 and 2109 East Santa Clara Avenue Exhibit 3 – Site Photo 21012109 Santa Clara Avenue, facing north CITY OF SANTA ANA Planning and Building Agency -/pba NOTICE OF PUBLIC HEARING BEFORE THE CITY COUNCIL OF THE CITY OF SANTA ANA, CA The City of Santa Ana encourages the public to participate in the decision-making process. This notice is being sent to those who live or own property within 1000 feet of the project site, within the city boundary, or who have expressed an interest in the proposed action. We encourage you to contact us prior to the Public Hearing if you have any questions. NOTICE IS HEREBY GIVEN - Project Location: Project Applicant: Proposed Project: - Environmental Impact: envir- Action Taken by the Planning Commission on February 23, 2026: that the City - -02:0:2 Meeting Details: Tuesday, April 7, 2026, at 5:30 p.m Members of the public may attend this meeting in-person or join via Zoom. - ana-- Written Comments: by e-- (reference – 4:00 p.m. Where To Get More Information: --- Who To Contact For Questions: - - Note: Si tiene preguntas en español, favor de llamar a Gema Zapien (714) 667-2732. cho Kristie Ha (714) 667-2206. 1000’ RADIUS NOTIFICATION MAP 2101 and 2019 East Santa Clara Avenue 1000’ Ft. Buffer Map Councilmember-Requested Item Report DATE April 7, 2026 TOPIC City Council Initiated Proposal Review in Accordance with the City of Santa Ana Affordable Housing Funds Policies and Procedures - Habitat for Humanity Affordable Homeownership Project COUNCILMEMBER-REQUESTED ITEM TITLE Discuss and Consider Providing Direction to the City Manager and Community Development Agency to Conduct a Review of a Proposed Habitat for Humanity Affordable Homeownership Project at 502 East Pine Street, Including Evaluation of Potential Affordable Housing Funding to Support the Project. BACKGROUND Habitat for Humanity of Orange County (“Habitat”) has requested that the City Council review its proposal and approve a sole-source award of funding allowable under the adopted Affordable Housing Funds Policies and Procedures utilizing the City Council Initiated Proposal Review process (See Exhibit 1 on page 10). The proposal involves the acquisition and rehabilitation of an existing 18-unit condominium complex located at 502 East Pine Street, which currently operates as rental housing (See Exhibit 2). Habitat proposes to rehabilitate the property and convert the units into permanently affordable homeownership opportunities for low- income working families in Santa Ana. Planned improvements include interior rehabilitation of the units, upgrades to plumbing and electrical systems, and improvements to shared amenities such as the courtyard, laundry facilities, elevator, and parking structure. The estimated total development cost is approximately $13.07 million, and Habitat has requested $6 million in City affordable housing funding to support acquisition and rehabilitation of the property. Habitat anticipates completing acquisition, rehabilitation, and resale to qualified first- time homebuyers within approximately 24 months after funding approval. DISCUSSION Santa Ana continues to face one of the most competitive housing markets in California, where rising housing costs make homeownership increasingly out of reach for many working families. While the City has made progress in supporting affordable rental housing, opportunities for affordable homeownership remain limited. This proposal represents an opportunity to: CITY ATTORNEYCITY MANAGERCITY CLERK Sonia R. CarvalhoAlvaro NuñezJennifer L. Hall 20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Expand homeownership opportunities for Santa Ana residents Support working families building generational wealth Preserve and improve an existing housing asset within the community Stabilize neighborhoods and help prevent displacement Leverage a proven nonprofit housing model that combines public investment, volunteer labor, and homeowner partnership Initiating a review of this project will allow staff to evaluate its feasibility and determine whether City participation could advance Santa Ana’s goals around housing stability, affordability, and long-term community investment. Requested Scope of Report and Hearing Direct the City Manager and Community Development Agency to: 1.Request a complete proposal from Habitat for Humanity. 2.Review and determine if complete proposal has met minimum threshold. 3.If minimum threshold is met, project to undergo an underwriting and subsidy layering review analysis by a real estate advisor selected by the City, to be paid for by Habitat for Humanity. 4.After the analysis has been completed, staff will present the real estate advisor’s analysis and the proposal to City Council for direction without any recommendation(s) from staff on funding or not funding the project. SUBMITTED BY Councilmember Benjamin Vazquez EXHIBIT(S) 1. Affordable Housing Funds Policies and Procedures 2. Habitat for Humanity of Orange County request letter dated March 12, 2026 and attachment CITY ATTORNEYCITY MANAGERCITY CLERK Sonia R. CarvalhoAlvaro NuñezJennifer L. Hall 20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Affordable Housing Funds Policies and Procedures City of Santa Ana Housing Division and Housing Authority of the City of Santa Ana Originally Adopted March 20, 2018 st 1 Amendment: August 18, 2020 TABLE OF CONTENTS I. INTRODUCTION 7 II. TYPES OF LOANS AND GRANTS 8 III. PROPOSAL SUBMITTAL AND REVIEW PROCEDURES 9 IV. PRE-LOAN COMMITMENT 19 V. LOAN TERMS AND CLOSING PROCEDURES 20 VI. PROJECT MONITORING AND REPORTING 22 VII. FUNDING SOURCES 23 Low and Moderate Income Housing Asset Fund 23 Inclusionary Housing Fund 26 HOME Investment Partnerships Program 28 Community Development Block Grant Program 32 Project-Based Voucher Program 34 Affordable Housing Funds Policies and Procedures Page 2 PURPOSE On June 20, 2017, the City Council for the City of Santa Ana directed staff to develop a policy to allocate affordable housing development funds and criteria for selection of projects. These policies and procedures have been developed to guide how affordable housing funds and land assets available to the City of Santa Ana are allocated, committed, loaned and monitored for multi-family affordable housing development in the City. INTENT The intent of these policies and procedures is to provide a transparent, open and fair process for developers, businesses, non-profit organizations, individuals and other entities interested in the allocation of scarce affordable housing funds and land assets available to the City for affordable housing development. Affordable Housing Funds Policies and Procedures Page 3 Definitions Available Funds: The total amount of Inclusionary Housing Funds, HOME Investment Partnerships Program, Community Development Block Grant Program, Project-Based Voucher Program, Low and Moderate Income Housing Asset Funds (Housing Successor Agency Funds) and/or any other funds received by the City of Santa Ana for housing purposes as published on a quarterly basis in the Housing Division Quarterly Report. Inclusionary Housing Fund In-Lieu Fee pending payments and any other funds that have not yet been received by the City shall not be considered Available Funds. Affordability Restrictions: Covenants that shall run with the land and bind a property owner, its successors, its assignees and every successor in interest to a property that the property owner will make all subsidized rental units on the property available to extremely-low, very-low, low and/or moderate-income households at rents affordable to such households for at least fifty-five (55) years unless superseded by the regulations for an applicable program fund. City: The City of Santa Ana when using the Inclusionary Housing Fund, HOME Investment Partnerships Program, and/or Community Development Block Grant Program funds; or the Housing Authority of the City of Santa Ana when using the Project-Based Voucher Program and/or Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund). Community Housing Development Organization (CHDO): A private nonprofit housing development corporation which meets a series of HUD qualifications prescribed in the HOME Program regulations, including the requirement that it is duly organized to provide decent housing that is affordable to low- and moderate-income persons; maintains at least one-third of -income neighborhoods, other low-income residents, or elected representatives of low-income neighborhood organizations; and, provides a formal process for low-income program beneficiaries to advise the organization in its decisions regarding the design, siting, development, and management of affordable housing. Community Based Development Organization (CBDO): A Housing Development Corporation which meets the requirements of the CDBG Program regulations as defined in 24 CFR 570.204(a)(2)(c)(1), as amended from time to time. Congregate Housing: A multi-family residential facility with shared kitchen facilities, deed- restricted or restricted by an agreement approved by the City for occupancy by low or moderate income households, designed for occupancy for periods of six months or longer, providing services which may include meals, housekeeping and personal care assistance as well as common areas for residents of the facility. Deed of Trust: Legal title in the property that is transferred to the City, which holds it as security for a loan provided by the City. Development of Affordable Housing: The process of creating affordable housing through acquisition and/or rehabilitation of eligible properties for rental or transitional housing; Affordable Housing Funds Policies and Procedures Page 4 acquisition and conversion of non-residential property to multifamily rental housing units; and/or new construction of housing units for rental housing. Extremely Low-Income Household: Households with incomes that do not exceed 30% of the Orange County area median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time. Fair Market Rents: Maximum rents as published by HUD for the Housing Choice Voucher Program for Orange County, adjusted for unit size. Grant: Transfer of funds for purposes of financing the development of affordable housing, on the condition that grantee remains in full compliance with the Regulatory Agreement. Unlike a loan, the grant only becomes due and payable in the event that grantee is in default of the Regulatory Agreement. Nonprofit Housing Development Corporation (HDC): A private, nonprofit corporation with proven capacity to develop, own and operate housing, and which has a valid 501(c)(3) or (4) designation from the IRS. Limited Equity Cooperative: A form of ownership whereby the residents form a cooperative corporation which owns and manages the property, and where the return on residents' original equity is limited to no more than 10%, as defined in the California Health and Safety Code Section 33007.5. Loan Agreement: A loan of program funds for purposes of developing affordable housing with a Promissory Note secured by a Deed of Trust and Affordability Restrictions on the property. Qualified Developer: A non-profit or for-profit affordable housing developer with proven capacity to develop, own and operate affordable housing. Low-Income Household: Households with incomes that do not exceed 80% of Orange County area median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time. Maximum Affordable Rent: A rent which does not exceed thirty percent (30%) of the maximum income level of the income group being served (see "Low and Moderate Income Households"), adjusted for unit size and utility costs. For Low and Moderate Income Housing Asset Fund: the Maximum Affordable Rent for households with incomes that do not exceed 120% of the area median income for Orange County shall be 30% of 110% of such median income. Moderate-Income Household: Households with incomes that do not exceed 120% of the Orange County area median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time. Affordable Housing Funds Policies and Procedures Page 5 New Construction: The construction of new housing, including, but not limited to, assembly of factory-built modular housing, or conventional on-site construction. Notice of Completion: Written notice issued by the owner of a project (or his or her agent) to notify concerned parties that all work on the project has been completed. Operating Reserve Account: An account established for the purpose of funding a deficit in the Permanent Loan: A long-term (maturity period of 55 years) mortgage loan. Permanent loan financing is obtained after completion of construction, usually to repay the short-term (non- permanent) construction loan. Promissory Note: repayment of a Permanent Loan. Rehabilitation: Correction of local code violations and removal of health and safety hazards; upgrading of housing units to decent, safe and sanitary conditions to comply with the Housing Quality Standards promulgated by HUD and with local standards; repair or replacement of major building systems or components in danger of failure; and alterations, additions and improvements to expand the number of affordable units, or needed to improve the basic livability, energy efficiency, accessibility for the disabled, or security of the property, and to reduce overcrowding. Replacement Reserve Account: An account established for the purpose of funding major repairs or replacement of capital components of a building which reach the end of their economic life and require replacement. Residual Receipts: The gross receipts from the property, less actual costs of operation, administration, maintenance, taxes, insurance, utilities, management, approved replacement and operating reserves, payments of principal and interest on loans senior to the City loan(s), and required debt service coverage. The amount of Residual Receipts shall be calculated based on the actual income and expenses set forth in the Annual Operating Budget required under the Regulatory Agreement or recorded Affordability Covenants, as approved by the City. Transitional Housing: A type of supportive housing used to facilitate the movement of homeless individuals and families to permanent housing. Typically, transitional housing is housing in which homeless people live for up to 24 months and receive supportive services that enable them to live more independently. The supportive services may be provided by the organization managing the housing or coordinated by them and provided by other public or private social service agencies. Very Low-Income Household: Households with incomes that do not exceed 50% of the Orange County area median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time. Affordable Housing Funds Policies and Procedures Page 6 I. INTRODUCTION The City of Santa Ana provides financial assistance to support the acquisition, rehabilitation, and new construction of properties to preserve and increase affordable housing opportunities for lower income households through the following Programs: Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund) including land assets owned by the Housing Successor Agency Inclusionary Housing Fund HOME Investment Partnerships Program (HOME) Community Development Block Grant Program (CDBG) Project-Based Voucher Program (PBV) Under these Funds and Programs , the City provides deferred payment loans and/or grants to bridge the financial gap between available resources, including the borrower's/grante equity and private financing, and the costs of developing affordable multi-family housing. The Affordable Housing Funds Policies and Procedures (Policies and Procedures) provides an overview of the types and terms of loans which are available, proposal requirements, review procedures, selection criteria, loan commitment and closing procedures, and project monitoring and reporting requirements of these varied Programs within one comprehensive source of reference. \[Throughout this document, loans and grants may be referred to collectively as loans except when the terms are unique to a loan or to a grant.\] These requirements are minimum requirements for participation in City Programs and are subject to approval by City Council. Meeting these requirements does not guarantee participation in any Program. The City reserves the right to require additional qualifications for individual projects. The City reserves the right to reject any and all proposals. At a minimum these Policies and Procedur progress to achieve the goals in the Housing Element each year. If it is determined that the City is not making adequate progress to achieve the goals of the Housing Element, staff will review these Policies and Procedures to determine whether they should be amended to more effectively achieve the goals of the Housing Element. These Programs are administered by the Housing Division of the City of Santa Ana (under the direct supervision of the Housing Division Manager, the direction of the Executive Director of Community Development, and the general supervision of the City Manager). These Policies and Procedures should be interpreted in conjunction with Federal, State, and City statutes and regulations governing the use of these funds. In the event of a conflict between these Policies and Procedures and such statutes and regulations, the requirements of those statutes and regulations shall prevail. All projects must comply with all applicable statutes and regulations, which may include federal requirements contained in 24 CFR 92, 570, 982, and 983, including, but not limited to, environmental reviews, labor and wage requirements, debarred contractors, lead-based paint and equal opportunity. Leveraging of City dollars (to the extent possible) with outside funding sources will continue to be a priority to preserve and increase affordable housing opportunities for low income households. Affordable Housing Funds Policies and Procedures Page 7 II. TYPES OF LOANS AND GRANTS Program funds may be used for development loans for the following eligible purposes: (1) The purchase of existing multi-family or other buildings for rent or sale to low- and very low-income households and for the development of congregate housing for rent to low- and very low-income persons with special needs (e.g. homeless individuals and families, elderly, persons with a disability). Except for congregate housing, existing buildings shall consist of four or more units, unless the Housing Division Manager finds that a substantial public benefit will be provided by a project consisting of less than 4 units. (2) The purchase or lease of land and buildings for new construction or rehabilitation of housing that may utilize available State and Federal housing assistance programs such as Low-Income Housing Tax Credits, the Section 202 Supportive Housing for the Elderly Program, tax-exempt bond financing, Section 811 Supportive Housing Program, and/or other available State and Federal programs. (3) The development of limited-equity housing cooperatives through either conversion or new construction. (4) The provision of interim loan funds for any of the above purposes prior to the funding of a public or private loan. Eligible development costs for the above uses include, but are not necessarily limited to: a. site acquisition and preparation; b. rehabilitation of dwelling units, common areas and related structures; c. new construction; d. carrying charges and financing fees; e. architectural, legal, and organizational fees; f. temporary or permanent tenant relocation costs; and g. developer fees consistent with the policies described in Section IV below. Affordable Housing Funds Policies and Procedures Page 8 III. PROPOSAL SUBMITTAL AND REVIEW PROCEDURES Proposal Submittal All Proposals for Program funds shall be submitted to the Housing Division and shall be reviewed and recommended for approval to the Community Redevelopment and Housing Commission for its review and recommendation for City Council or Housing Authority approval through a transparent, open and competitive selection and review process as established in this section. The competitive selection process will begin with a determination by Housing Division staff that the City has sufficient Available Funds to develop one or more affordable housing projects. If the City has sufficient Available Funds to develop one or more projects, the Housing Division, upon City Council approval, will issue a Request for Proposals (RFP), Request for Qualifications for a certain amount of Available Funds. The RFP Process will be open and provide sufficient time for applicants to identify an eligible site and complete and submit a proposal in response to the RFP announcement. It will also align with annual funding cycles through the Low-Income Housing Tax Credit Program. The RFP Process will be open for at least one year with four (4) quarterly deadlines to submit a proposal scheduled throughout the year. The RFP Process will be announced through notices to the following parties: Interested Developers and Nonprofit Organizations on the Housing Divi Process Database o Developers and Nonprofit Organizations interested in being added to the RFP Other affordable housing membership association resources (e.g. Southern California Association of Nonprofit Housing, Kennedy Commission, 2-1-1 OC) Public Notice in the local newspaper Published on www.Planetbids.com Proposals must meet the minimum requirements outlined in the RFP Process to ensure compliance with available received from qualified firms for projects consistent with the requirements of the Available Fund(s) issued through the RFP Process. Proposals shall not e total Available Funds as published on a quarterly basis in the Housing Division Quarterly Report. A Qualified Developer shall complete and submit to the Housing Division the Proposal for Program funds and prepare all required attachments and exhibits, including, but not limited to, the project proforma, budget, sources and uses, project management plan, tenant selection and marketing plan, relocation plan (if applicable), signed purchase agreement and escrow instructions, preliminary title report, and limited partnership documents (if applicable). Affordable Housing Funds Policies and Procedures Page 9 Proposal Review After each deadline for the Open RFP Process, the Housing Division staff shall review the Proposal to determine that the minimum Program and RFP Process requirements are met (minimum threshold review). Proposals that do not meet the minimum threshold review will be considered non-responsive. If the Proposal meets the minimum threshold review, the Housing Division will form a Review Panel. The Review Panel for the RFP Process will consist of at Community Development Agency and one outside agency or government-entity. If an employee is not available in one department, a second employee may be requested from one of the other two departments so long as there are at least two of the three City Agencies represented on the Review Panel. Using the scoring and selection criteria provided in the RFP Process and provided below, the Review Panel shall determine whether the proposal is recommended for a pre-loan commitment, with or without conditions. Including the scoring and selection criteria, the Review Panel shall review the design of the proposed project for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long term durability. Proposed projects must receive a minimum threshold score of 75 points to move forward with the proposal review process. If the Review Panel determines, in its discretion, that the Proposal may be recommended for approval, the Housing Division shall request an underwriting and subsidy layering review by a real estate advisor selected by the City. The real estate advisor shall confirm the underwriting for the Project, the financial gap, and other programmatic requirements related to the funding sources. If the Review Panel determines that the Proposal will not be recommended for approval (i.e. the Proposal does not meet the minimum threshold score of 75 points), the Developer will be notified in writing of the decision and the result will be published in the Housing Division Quarterly Report. City Council Initiated Proposal Review A Developer may submit a request for a sole source award of funding directly to the City Council (the request cannot exceed the amount of the total Available Funds as published on a quarterly basis in the Housing Division Quarterly Report). At least one Councilmember must then submit a written request to staff to review . After a written request has been received, staff will request a complete proposal from the Developer. After the proposal has met a minimum threshold review by staff, the project will undergo an underwriting and subsidy layering review analysis by a real estate advisor selected by the City, to be paid for by the Developer. After the analysis has been completed, staff will present the real estate analysis and the proposal to City Council for direction without any recommendation(s) from staff on funding or not funding the project. If City Council requests a second real estate analysis to be conducted, the City will pay for the second analysis, not the developer. Affordable Housing Funds Policies and Procedures Page 10 By-Right Funding for Achieving City Goals and Objectives If at any time a developer proposes a project that is located in a zoning district permitting -such approvals do not require any discretionary actions by the City, the developer may submit an application for by-right funding of extremely low-income affordable housing units. Staff may then form a Review Panel to consider the dapplication for by-right funding as quickly as possible using the scoring and selection criteria from the Open RFP Process. This policy will expedite consideration of the application for by-right funding. Only units serving households at 30% Area Median Income and below may qualify for by-right funding under this application process. The maximum per unit subsidy shall not exceed the maximum limits established by HUD for the HOME Program at the time of submission of the application for by-right funding by the developer. Applications for by-right funding may only request Inclusionary Housing Funds from the City under the above-described process and the requested amount shall not exceed the Quarterly Report. However, funding is subject to the availability of actual Inclusionary Housing Funds. Additionally, the City reserves the right to amend these policies at any time, which could affect the availability of such funding, or to deny funding for any project that the City determines r this program. Three-Year Goals for By-Right Funding Proposals: The City of Santa Ana has established the following Goals for the next three years, to be evaluated on an annual basis, for proposals submitted under this section. The Goals are Element and based upon what affordable housing development projects that the City has in the pipeline for development and estimates/goals for Year 3: # of Extremely Low- # of Very Low-Income # of Low-Income Units Year Income Units at 30% Units at 50% AMI at 80% AMI AMI 1 54 111 9 2 54 33 38 3 115 82 34 TOTAL 223 226 81 Competitive Selection Criteria In selecting among competing project proposals, consideration shall be given to projects that meet the following General Principles: Significantly increase affordable housing opportunities for large families (three- and four- bedroom units). Benefit a higher percentage of units for extremely low-income households with deeper affordability. Are cost effective with low operating costs (green building techniques). Increase affordable housing opportunities for special needs populations, including homeless individuals and families, persons with a disability, and seniors. Are located in areas currently underserved by affordable housing developments. Affordable Housing Funds Policies and Procedures Page 11 The following selection criteria, and may be modified from time to time to address practical requirements arising from a particular solicitation discretion: COMPETITIVE SELECTION CRITERIA 1. LEVEL OF AFFORDABILITY AND TARGET POPULATION ELIGIBLE (Max. 25 Points) POINTS Project significantly increases affordable housing opportunities for large 10 families (three- and four-bedroom units) Project provides a higher percentage of units for extremely low-income 10 households with deeper affordability Project increases affordable housing opportunities for special needs populations including, but not limited to, homeless individuals and families, 5 and persons with a disability Sub-total 25 2. TIMELINESS TO BUILD NEW HOUSING (Max. 20 Points) Project has demonstrated site control 7 Project is zoned appropriately 5 Project does not have any other site-related issues 5 /or 5-Year 3 Consolidated Plan Sub-total 20 3. PROPERTY MANAGEMENT EXPERIENCE AND SKILLS (Max. 15 Points) Project is energy efficient and incorporates green-building techniques 6 Applicant's ability to manage affordable rental units to ensure ongoing 3 compliance with affordability requirements and long term financial solvency Applicant's past experience in property management 3 Applicant's capacity and ability to quickly lease completed units 3 Sub-total 15 4. DEVELOPER EXPERIENCE AND SKILLS (Max. 15 Points) Applicant's capacity and ability to obtain additional funding 4 Applicant's capacity and ability to obtain entitlements 4 Applicant's overall past and projected effectiveness to provide affordable 4 housing Applicant's past and projected effectiveness to manage the construction 3 process and stay on schedule Sub-total 15 5. LEVERAGING OF CITY FUNDS (Max. 5 Points) Applicant's potential or capacity to obtain additional financing 5 Sub-total 5 Affordable Housing Funds Policies and Procedures Page 12 6. ANTICIPATED CASH FLOWS (Max. 15 Points) Project's proposed development costs are reasonable and comparable 3 Project's proposed rents are realistic 3 Project's operating costs are realistic and reasonable 3 Project has sufficient operating and replacement reserves 3 Project is projecting a positive cash flow through affordability period 3 Sub-total 15 7. PROJECT LOCATION (Max. 5 Points) Project is located in an area currently underserved by affordable housing 5 Sub-total 5 TOTAL ELIGIBLE POINTS 100 Developer Input on In-Lieu Fee Payments to the Inclusionary Housing Fund Under Section 41- input regarding what project the in lieu fees should be applied towards, but such input shall not be dispositive. The in-lieu fees collected by the City are City funds over which the City has com their in-lieu fees, input must be submitted in writing within no more than 90 calendar days from the date payment of the in-lieu fees are deposited with the City. The will be worth up to five (5) bonus points awarded to the applicant within the RFP Process through the Competitive Selection Criteria provided above. The bonus points do not guarantee that the project will be funded with the in-lieu fees paid by the Developer that provided the input. Determination of Reasonable Costs and Financial Feasibility A real estate advisor shall review the Applicant's estimates and projections of rents, expenses, reserves and development costs in accordance with industry-standard underwriting guidelines. The Applicant shall provide a proforma and background documentation on all costs for the analysis, as requested by the City. The City may recommend adjustments to cost and expense amounts as appropriate to conform to current market and industry standards. The total amount of the Program loan and all private loans shall not exceed the total development costs approved by the City. The maximum allowable purchase price shall not exceed the appraised value as evidenced by an appraisal prepared by a California State Certified General Appraiser and approved by the Housing Division, which is dated not more than six (6) months prior to the date of the proposal. The appraisal may not determine property value based solely on sales of properties financed by public agencies. The maximum affordable mortgage amount shall be calculated using the rent schedule proposed by the Applicant as approved by the City, the proposed interest rate and terms of the primary loan(s), and reasonable operating allowances and reserves, including a reserve to amortize a mortgage, as needed. Affordable Housing Funds Policies and Procedures Page 13 The requested City loan for a project shall not exceed the total amount of the gap between the maximum affordable mortgage amount available from non-City sources plus funds available from other sources of public subsidy, and the total development costs plus any on-going annuity necessary to maintain affordable rent levels as defined in the Proposal. All assisted units must maintain rents that do not exceed the Maximum Affordable Rent, as defined in the Loan Documents, for the life of the loan in accordance with the terms of the loan or other recorded Covenants. Syndicated projects must be structured such that ownership can feasibly be acquired by the nonprofit General Partner at the end of the term of the limited partnership agreement, when appropriate. When determining the maximum City loan, the real estate advisor will review the rent schedule and annual cash flows to determine whether long- term affordability is maintained. In cases where a rent subsidy program is used and the mortgage is calculated on the basis of the subsidized rents, an "affordability reserve" may be required, where the amount of the reserve shall be sufficient to cover the difference between affordable rents and the subsidized rents. Developer Fee For new construction, acquisition and rehabilitation projects utilizing Low-Income Housing Tax Credits, the developer fee shall not exceed the maximum fee allowed by the California Tax Credit Allocation Committee. The Housing Division Manager may require the developer to defer a portion of their developer fee, based upon an analysis by the real estate advisor, to make the project feasible, reduce the amount of Program funds being requested for the project, or both. Developer Capacity Applicants must demonstrate the capacity to successfully develop the proposed project. The City affordable housing, or inclusion of development team members with a successful record in developing such housing. In addition, Applicants must demonstrate the financial and legal capacity to undertake the proposed project. Clear Title The Applicant shall have the responsibility to obtain clear title to the property. As soon as feasible, the Applicant will submit a preliminary title report for City review and written approval. Staff shall review the state of title, including the conditions, covenants, restrictions, and legal description of the property. In the case of title issues, the Applicant shall correct the state of title and remove all exceptions to the title not consented to by the City before the City closes the loan. Senior Financing The Applicant shall secure other resources such as equity from syndication proceeds, tax exempt financing, federal and state housing rental and development subsidies and available private financing to minimize the amount of the City loan. The Applicant will submit to the City the terms and conditions of all non-City financing as well as equity contributions for review. The Affordable Housing Funds Policies and Procedures Page 14 Applicant must submit projected cash flows for the term of the loan, showing the maximum possible increases (i.e. worst case scenario) in debt service per year, the projected rent and expense increases, the means of making up any deficits, and projected payments of Residual Receipts. The real estate advisor shall analyze the feasibility of the project to carry the loan(s), and if feasible will review the terms of the non-City financing. The City may, at its sole discretion, calculate the mortgage amount at the terms and rates of available financing programs other than that proposed by the Borrower, if alternative terms and rates are available that would reduce the amount of City subsidy required, and would otherwise conform to the City/Agency requirements. Management and Affirmative Marketing Plan The Applicant shall prepare a Project Management Plan for City review and approval. The Plan shall describe the Applicant's policies and procedures concerning: (1) Affirmative marketing and tenant selection procedures, including proposal procedures, prioritization of Santa Ana residents and workers (see Local Preference section below) where possible; waiting lists, and lease agreements; and marketing efforts and tenant selection procedures that will be used to attract eligible persons from all racial, ethnic and gender groups, as well as persons living with disabilities, in the housing market area to the available housing opportunities. The Plan should describe the protocols for keeping records of affirmative marketing activities and for keeping records of requests (from applicants and existing tenants) for all units assisted with affordable housing funds; (2) Procedures for determining tenant eligibility and certifying incomes. The Plan should demonstrate sufficient outreach to disability-related service providers to ensure that accessible units are occupied to the extent possible by those households who need the accessibility features due to disability. The Plan should demonstrate that the Developer conducted sufficient outreach to persons that meet the qualifications identified in the Local Preference section below. An outreach plan and results from outreach efforts should be maintained by the developer and available to submit to the City upon request; (3) Management/tenant relations and assistance to tenant organizations, including the training and use of tenants to perform maintenance and management functions as appropriate; (4) Maintenance and repair services; (5) On-site management facilities; (6) Rent collection; (7) Records and reporting requirements; (8) Personnel and staffing; (9) Compliance with all tenant protection laws, including Building and Health and Safety Codes; (10) Fee schedule; and (11) Any other relevant issues requested by the City to be addressed. Affordable Housing Funds Policies and Procedures Page 15 No person shall on the grounds of race, marital status, sex, color, age, religion, national origin, ancestry, immigration status, physical disability, AIDS, sexual orientation, or any other protected class, be excluded from participating in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with these funds. Local Preference Local preference for Santa Ana residents and workers in tenant selection shall be a requirement of the and Programs. Local preference shall be a requirement of the HOME, CDBG, and PBV Programs only if permitted by the federal government. In evaluating a loan request, staff shall cal preference goals and give priority to those loan applicants who administer their wait lists using sorting protocols which result in outcomes where households who live or work in Santa Ana are beneficiaries of City-funded affordable housing. Subject to applicable tenant income limits and any preferences required by the laws of the United States or the State of California (including, but not limited to, laws and regulations governing nondiscrimination and preferences in housing occupancy), the Borrower shall give preference in leasing units in the following order of priority: 1. First priority shall be given to persons who have been permanently displaced or who face permanent displacement from housing in Santa Ana as a result of any of the following: a. Redevelopment Law (Health & Safety Code Sections 33000, et seq.) -- applicable only to projects funded by the Low-Moderate Income Housing Asset Fund. b. Ellis Act, owner-occupancy, or removal permit eviction; c. Earthquake, fire, flood, or other natural disaster; d. Cancellation of a Housing Choice Voucher HAP Contract by property owner; or e. Governmental Action, such as Code Enforcement. 2. Second priority shall be given to persons who are either: a. Residents of Santa Ana and/or b. Working in Santa Ana at least 32 hours per week for at least the last 6 months. c. Persons who seek to reside in Santa Ana as an accommodation to a mental or physical disability. ed as part of a multifamily development, such accessible units should be first offered to existing occupants of the building (if applicable) who are not occupying an accessible unit and who have indicated a need for the features of an accessible unit. If no existing occupants of the building have indicated the need for the features of an accessible unit, or if the building is being leased for the initial occupancy, then such accessible units should first be offered to applicants who have indicated the need for the features of an accessible unit, inclusive of the preferences above. The application of preferences may not conflict with Section 504 of the Rehabilitation Act of 1973, 24 C.F.R. §100.202, and any other preemptive laws that may be enacted regarding fair housing for persons living with disabilities. Affordable Housing Funds Policies and Procedures Page 16 specifically as accessible units and which provide specific features to address the needs of persons living with mobility impairments or persons living with sensory impairments. Environmental Review Project sites must be free from adverse environmental impacts or the proposed project must successfully mitigate these impacts. The City shall assess the environmental effects of each activity proposed to be carried out with City funding in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and the California Environmental Quality Act (CEQA), as applicable. For projects subject to NEPA review, no loan funds (except for activities normally exempted from the environmental clearance requirements in 24 CFR Part 58.34) shall be released until the environmental review is completed, the notice of finding and environmental assessment results are published, and the 15-day public comment period expires. Prevailing Wages Any contract for construction (rehabilitation or new construction) of affordable housing with 12 or more units assisted with HOME Program funds, 8 or more units if the project is assisted with CDBG Program funds, or 9 or more units if the project is assisted with PBV Program funds, must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1. Relocation If necessary, the Applicant shall develop a plan for temporary relocation or permanent voluntary relocation, where necessary, for review by the City. The Relocation Plan shall be in accord with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42, and the California Relocation Assistance Act, where applicable. There shall be no permanent involuntary tenant displacement. In cases where tenants will be voluntarily displaced, the Applicant must submit a copy of a letter to each tenant which details the tenants rights to relocation assistance. waiver of relocation payments, the Applicant must submit a letter signed by the tenant indicating assistance. In the absence of these federal law will be responsible for paying the tenant the appropriate level of relocation assistance. Contracting Requirements All Applicants will be required to submit an affirmative action/equal employment opportunity plan indicating the methods that they will use to encourage the participation of certified Minority Affordable Housing Funds Policies and Procedures Page 17 Business Enterprise/Women Owned Business Enterprise (MBE/WBEs) in their development project. City staff will review the plan and competitive bid and selection process to ensure that required procedures have been followed. City staff will also monitor construction to ensure that MBE/WBEs are participating in the project as indicated in the construction contract. All work shall be completed by State-licensed contractors which shall have Santa Ana business licenses. All contracts must comply with competitive bidding requirements. All efforts shall be made by the private owner or the Borrower to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin, ancestry, physical disability, AIDS, sexual orientation, or any other protected class, in seeking contractors and subcontractors. Affordable Housing Funds Policies and Procedures Page 18 IV. PRE-LOAN COMMITMENT Pre-Loan Commitment Following the RFP Process, Proposal Review, Determination of Reasonable Costs and Financial Feasibility, and conditional on meeting the other requirements and conditions outlined above, a pre-loan commitment letter may be drafted by the Housing Division, reviewed and approved by the Housing Division Manager the Executive Director of Community Development, before being recommended for approval. The letter shall state the maximum amount of program funds reserved for the project and list all of the additional conditions, documents and steps that must be taken by the Borrower prior to loan closing. After the pre-loan commitment letter has been drafted, staff will prepare a written staff report recommending a commitment of funds for a proposal and explaining the reasons for the commitment. The recommendation will be made first by the Housing Division to the Community Redevelopment and Housing Commission (CRHC) to issue the commitment of program funds to the project in the form of an award of program funds. If recommended by the CRHC to City Council, a recommendation will then be made by the Housing Division to the City Council and/or Housing Authority for final approval of the commitment of program funds by motion adopted by the affirmative votes of at least two-thirds (2/3) of the members. If approved by City Council and/or the Housing Authority, a notice of the issuance of the pre- loan commitment shall be posted publicly, and a copy of such notice shall be published in a newspaper of general circulation, no later than 21 days after the commitment is issued. Upon issuance of a pre-loan commitment letter, the Housing Division shall work with the Developer to secure all of their remaining financing. If the conditions and projections for the project rent schedule or non-City loans changes or is modified after the pre-loan commitment letter is issued, a second underwriting and subsidy layering analysis will be conducted by a real estate advisor. Conflict of Interest No person who is an employee, agent, consultant, officer, or elected official or appointed official of the City who exercises or has exercised any function or responsibility regarding activities assisted with Program funds or who is in a position to participate in a decision making process or gain inside information concerning these activities, may obtain a financial interest or benefit from an activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. Affordable Housing Funds Policies and Procedures Page 19 V. LOAN TERMS AND CLOSING PROCEDURES Loan Terms Permanent loans that are not grants shall be due and payable in no more than fifty-five (55) years subject to the terms of the applicable Loan Agreement and recorded Affordability Restrictions. If a developer requests a shorter term loan, the City would be willing to negotiate. However, except for certain HOME funded projects, the Affordability Restrictions shall remain in effect for at least 55 years. Purchase Option At the end of the permanent loan term, the City may have the option to take title to the property in accordance with the terms of an option agreement if the owner of the property decides to sell Interest Rates for Loans The interest rate shall be set at either: (1) The rate established by the Federal Home Loan Mortgage Corporation for the average conventional commitment of a fixed rate, thirty-year (30) mortgage, and shall be compounded annually; or (2) When necessary to secure investor equity, interest rates of affordable housing projects that include tax credits or conventional lenders, at 3% simple interest; or (3) When the City loan is in a subordinate position to a first trust deed capital advance/loan made under the U.S. Department of Housing and Urban Development (HUD) Section 202 or Section 811 Programs, the interest rate shall not exceed the highest permissible rate on the applicable HUD Section 202 or Section 811 Program mortgages, under authority of Chapter 24 of the Code of Federal Regulations (CFR), Subpart 885.410(g); or (4) When required to meet federal subsidy layering guidelines, at the Applicable Federal Rate (that rate established by the Internal Revenue Service pursuant to Section 1274(d)(1) of the Internal Revenue Code). Loan Payments Payments on permanent loans shall be made as follows: (1) Payments of principal and interest shall be made annually to the City in an amount equal to 50% of project Residual Receipts, if any. Payments shall be applied first to accrued interest, and then to principal. (2) The Borrower may elect to prepay the loan prior to the end of the term. However, the Regulatory Agreement or recorded Affordability Covenants shall remain in full force and effect for its term regardless of any prepayment. Affordable Housing Funds Policies and Procedures Page 20 (3) If the Borrower violates the terms of the Regulatory Agreement or recorded Affordability Covenants such that the City declares the loan in default, the entire amount of unpaid principal plus accrued interest at the rate established at the time of closing shall be due based on the terms of the agreement. (4) Unless paid in full earlier, the remaining principal balance of the loan and accrued interest shall be due and payable at the end of the term of the Promissory Note. Where necessary to meet requirements of third party investors and with approval of the Housing Division Manager, the City may allow the remaining principal and accrued but unpaid interest to be payable only to the extent that the fair market value of the Project exceeds the principal balance of the existing indebtedness secured by the property. Security The loan shall be secured as follows: (1) The loan shall be secured by a Deed of Trust and Promissory Note which may be subordinated to Deeds of Trust securing other Federal, State, City loans, or loans from conventional financing institutions used in conjunction with the loan on the same property. The City must approve all requests for subordination. (2) The loan shall be further secured by a Regulatory Agreement or recorded Affordability Covenants to assure that Program funds are used to provide long-term affordable rental housing opportunities for low-, very low-, and extremely low-income households, as applicable. The Borrower and the City shall execute the Regulatory Agreement or recorded Affordability Covenants regulating project rents, tenant selection procedures, use of project income, management and maintenance, transfer of property, and permitted forms of ownership and use. The Regulatory Agreement or recorded Affordability Covenants shall be recorded with the Deed of Trust. Loan Closing Procedures After the developer has secured all of their remaining non-City financing (e.g. Low-Income Housing Tax Credits), the Housing Division will prepare draft loan documents following the Loan Terms above, including a draft Loan Agreement, Promissory Note, Deed of Trust (or other appropriate security as determined by the Housing Division Manager), and Regulatory Agreement or recorded Office for review and approval as to form. Requirements for a Regulatory Agreement or recorded Covenants may be waived in the case of a project which is funded under the HUD Section 202 or Section 811 Program. After the loan documents have been finalized, a recommendation will be made by the Housing Division to the CRHC to approve the loan documents. If recommended by the CRHC to City Council, a recommendation will then be made by the Housing Division to the City Council and/or Housing Authority for final approval of the loan documents by motion adopted by the affirmative votes of at least two-thirds (2/3) of the members. Funds may be disbursed following execution and recording of the Loan Documents by the Borrower and the City Manager, and compliance with all commitment conditions. Staff shall submit a request for release of funds required for loan closing to the Executive Director of Finance. The Executive Director of Finance may then authorize release of loan funds into an escrow account established for the loan closing with instructions for disbursement. Affordable Housing Funds Policies and Procedures Page 21 VI. PROJECT MONITORING AND REPORTING The Housing Division shall monitor the project during rehabilitation or construction as needed for compliance with any loan documents and applicable City, State and/or Federal regulations. The Housing Division shall request notification of the final inspection and final construction release from the primary lender, and shall review management practices and reporting procedures with the borrower and project management agent at that time for full compliance with Program requirements. A copy of the Notice of Completion for the project shall be submitted to the Housing Division at the time the Notice is recorded. Borrowers shall be required to certify annually that they have complied with affirmative marketing and tenant selection procedures, and shall submit an annual report to the Housing Division in the form specified by the Division. The Housing Division shall monitor compliance with any Regulatory Agreement or recorded Affordability Covenants, the loan documents, and applicable City, State and/or Federal regulations on an annual basis. Additional details regarding the monitoring process will be included as part of the final Loan Documents. Fair Housing and Equal Opportunity Borrower shall post notices stating that a housing project is subject to Fair Housing and Equal Employment Opportunity requirements of 24 CFR 92.350 and 351 at each project site. Establishment and Use of Reserve Funds Upon completion of project construction, the borrower will be required to capitalize a reserve fund in an amount determined by the City and make annual contributions to the fund. The reserve fund can be used for expenditures related to necessary structural and equipment replacements and improvements of a capital nature, and is not intended to be used for ordinary maintenance items. Annual Reporting by the Housing Division On a quarterly basis, the Housing Division shall prepare a report to the CRHC for its review and recommendation for City Council approval. The quarterly report shall include details on at least the following items: (1) Loan Activity; (2) Loan Portfolio Management and Monitoring; (3) Proposals that were submitted during the previous quarter under the RFP Process but were not recommended for approval by a Review Panel; (4) Affordable Housing Projects under Development; and (5) Available Funds for Affordable Housing Development Projects. Affordable Housing Funds Policies and Procedures Page 22 VII. FUNDING SOURCES Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund) Source of Funds Funding sources for this program are generated from proceeds from the sale of former Redevelopment Agency housing assets, residual receipts from former Redevelopment Agency assets (i.e. loans), as well as a portion of the loan repayments from the former Redevelopment Agency to the City. Sources are set aside for the purpose of increasing, improving and preserving the communitys supply of low and moderate income housing as stipulated by California Health and Safety Code Section 34176. (Further information on grant terms provided in Section III). This fund includes land assets owned by the Housing Authority acting as the Housing Successor Agency that must be developed for affordable housing or sold at or above fair market value to increase the Low and Moderate Income Housing Asset Fund. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDCs) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects All new construction projects shall be affordable to households whose income, as adjusted for household size, does not exceed 80% of area median income. Eligible acquisition and/or rehabilitation projects will: (1) have four or more apartments or be congregate housing or mobile home units, except where the Housing Division Manager finds that the project will provide a substantial public benefit; (2) be in need of rehabilitation as defined herein; (3) be located in the City of Santa Ana; (4) be free from significant adverse environmental conditions, except those that can be mitigated at a reasonable cost through rehabilitation; and, (5) minimize tenant displacement. Eligible Uses and Activities Program funds can be used to make loans or grants to eligible borrowers who will provide affordable housing, principally for low- and moderate-income households. Eligible uses of deferred payment loan funds or grants include, but are not limited to, the following: (1) acquisition and/or rehabilitation of eligible properties for rental or transitional housing; Affordable Housing Funds Policies and Procedures Page 23 (2) acquisition and conversion of non-residential property to multifamily rental housing units; and (3) new construction of housing units for rental or transitional housing. Affordability Requirements As required by State law, all projects shall be targeted to households earning 80% or less of the area median income, based on the State of California Housing and Community Development income and rent limits. State law also requires that at least thirty percent (30%) shall be - exceed thirty percent (30%) of the area median income and no more than twenty percent (20%) affordable to and occupied by households between 60% of the area median income and 80% of the area median income. Units are considered affordable when the rent, less a deduction for a utility allowance, for a very low-income household does not exceed thirty percent (30%) of 50% of the area median income; for a low-income household does not exceed thirty percent (30%) of 60% of the area median income. Very low-income households are households whose incomes do not exceed 50% of the area median income. Low-income households are households whose income does not exceed 80% of the area median income. The area median income as referenced above is the Orange County area median income figure, adjusted for household size, as published by the California Department of Housing and Community Development (HCD) from time to time. Security The loan or grant shall be secured by a Deed of Trust and Promissory Note which may be subordinated to deeds of trust securing other Federal, State, or City loans, or loans from conventional financing institutions used in conjunction with the Low and Moderate Income Housing Asset Fund loan on the same property. The City must obtain written commitments to protect the investment in the event of a default. The City must approve all requests for subordination. The loan or grant shall be further secured by recorded Affordability Covenants and Restrictions, running with the land, to assure that Program funds are used to provide long-term affordable rental housing opportunities for low- and moderate-income households. The Borrower and the City shall execute and record Affordability Covenants and Restrictions regulating project rents, tenant selection procedures, use of project income, management and maintenance, transfer of property, and permitted forms of ownership and use, including a prohibition on conversion of the project to condominium or stock cooperative ownership for the term of the recorded Affordability Covenants and Restrictions. The recorded Affordability Covenants and Restrictions shall provide for the longest feasible time. Notwithstanding the above, the Affordability Covenants and Restrictions would in no event, be shorter than any other term of a Regulatory Agreement or Covenant recorded concurrently with the Citys Covenants and Restrictions. The Affordability Covenants and Restrictions shall be recorded with the Deed of Trust. Affordable Housing Funds Policies and Procedures Page 24 In some circumstances, these Affordability Covenants and Restrictions may be subordinated by the City, pursuant to Section 33334.14 of California Health and Safety Code, to liens, encumbrances, or regulatory agreements of other federal or state agencies or lenders providing financing for the project protected. Affordable Housing Funds Policies and Procedures Page 25 Inclusionary Housing Fund Source of Funds Funding for this program is provided using revenues generated through in-lieu fees from the City of Santa Ana Housing Opportunity Ordinance (revised and adopted by City Council in October 2015). Eligible Borrowers/Grantees Eligible borrowers ar promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Funds can be used to increase and improve the supply of housing affordable to moderate (120% AMI), low (80% AMI), very-low (50% AMI) and extremely-low income (30% AMI) households in the City. Eligible rehabilitation projects will: (1) be in need of rehabilitation as defined herein; (2) be located in the City of Santa Ana; (3) be free from significant adverse environmental impacts, except those that can be mitigated through rehabilitation; and (4) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the program. Eligible projects which involve new construction or conversion of an existing non-residential use will conform to items (2), (3), and (4) above. Eligible Uses and Activities Funds can be used to make loans to eligible borrowers to provide affordable housing, for moderate (120% AMI), low (80% AMI), very-low (50% AMI) and extremely-low income (30% AMI) households, including, but not limited to, the following: 1. Acquisition and rehabilitation of eligible rental properties. Existing rental units may be acquired, substantially rehabilitated and then income and affordability covenants can be recorded on the units for rental or ownership. a. Defined as rehabilitation of a dwelling unit that has substantial building and supply as decent, safe and sanitary affordable housing. The housing must comply with all local building and zoning codes and standards, including energy efficiency and water conservation standards, and meet housing quality standards in Section 882 of Title 24. Affordable Housing Funds Policies and Procedures Page 26 2. Purchase and rehabilitation of homes with code-related issues for sale to low- and moderate-income buyers; 3. New construction of rental housing units; 4. To pay for one-time programs and activities for code enforcement, quality of life and general health and safety issues that directly relate, enhance, and promote affordable housing projects and activities. 5. Acquisition and conversion of non-residential (e.g. commercial) property to multifamily rental housing units; 6. Homeless services programs; 7. Security deposit assistance programs; 8. Immigrant-focused housing programs, services and activities for non-U.S. citizens; 9. Foreclosure and eviction prevention programs, services and activities. Affordable Housing Funds Policies and Procedures Page 27 HOME Investment Partnerships Program Source of Funds Funding for this Program is provided through the U.S. Department of Housing and Urban Development (HUD) HOME Program (including program income and residual receipts), and therefore is subject to the federal rules and regulations found in 24 CFR Part 92, as amended from time to time. Eligible Borrowers/Grantees promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Projects eligible for HOME funding shall: (1) be rental projects located in the City of Santa Ana; (2) contribute to the achievement of the City's Strategic Plan and fair housing goals; (3) involve 4 or more apartments which will be rented to eligible lower income households at rents that do not exceed rents as defined by 24 CFR 92.252, as amended from time to time. Projects serving persons with special needs, or where the City Manager finds that the project will provide a substantial public benefit, may have fewer than four units. Transitional or permanent supportive housing may be provided (but not temporary shelters). (4) have at least 20% of the HOME-assisted units rented to very low-income families (50% of median income) under the terms and conditions set forth in 24 CFR 92.252 (2)(b); (5) demonstrate financial feasibility -- including the ability to maintain rents for the subsidized units at affordable levels for the periods specified in 24 CFR 92.252; (6) be free of significant adverse environmental impacts, except those that can be mitigated through the project itself; (7) minimize tenant displacement; (8) comply with all local building and zoning codes and standards, including energy efficiency and water conservation standards, and meet housing quality standards in Section 882.109 of Title 24. Newly constructed housing must meet the current edition Model Energy Code of the Council of American Building Officials; (9) make efficient use of public funds and avoid "layering" of subsidies beyond those necessary to achieve a financially feasible project; and, (10) have at least 51% of the project space be residential, if in a mixed use project. Eligible Uses and Activities HOME funds may only be used to finance new construction or acquisition and/or rehabilitation of rental housing which is affordable to very low and low-income households as defined by 24 Affordable Housing Funds Policies and Procedures Page 28 CFR 92.2. Fifteen percent (15%) of the annual HOME fund allocation shall be set aside for certified Community Housing Development Organizations New construction costs eligible for HOME funding shall be as specified in 24 CFR Part 92, including: 1. site acquisition; 2. site preparation costs (grading, filling, etc.); 3. financing costs as described in 24 CFR 92.206; 4. architectural, engineering, and other related soft costs; 5. the cost of extending or upgrading utilities to the site to support the proposed project; 6. construction costs; 7. relocation costs; and, 8. affirmative marketing and audit costs related to HOME program requirements. Rehabilitation costs eligible for HOME funding include: 9. project acquisition with or without rehabilitation; 10. financing costs, as described in 24 CFR 92.206; 11. architectural, engineering, or other design costs; 12. utility upgrade or extension costs; 13. costs associated with demolition (where necessary) only if rehabilitation is commenced within 12 months of demolition; 14. construction costs; 15. project audit costs; and, 16. affirmative marketing costs. Ineligible Uses and Activities The following costs are not eligible for HOME funding: 1. project reserve accounts for replacement or operating reserves, and operating subsidies; 2. payment of impact fees; 3. land banking; 4. emergency repair or weatherization programs; 5. commercial properties; 6. temporary shelters; or 7. project-based rental assistance. Affordability Requirements HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lesser of: 1. The fair market rent for existing housing for comparable units in the area as established by HUD; or 2. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. Affordable Housing Funds Policies and Procedures Page 29 In rental projects with five or more HOME-assisted rental units, twenty (20) percent of the HOME-assisted units must be occupied by very low-income families and meet one of following rent requirements: 1. The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a). 2. The rent does not exceed 30 percent of the family's adjusted income. If the unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy program. To ensure that HOME investments yield affordable housing over the long term, HOME imposes rent and occupancy requirements over the length of an affordability period. For homebuyer and rental projects, the length of the affordability period depends on the amount of HOME assistance to the project or buyer, and the nature of the activity funded. Table 1-1: Determining the HOME Period of Affordability: HOME Assistance per Unit or Buyer Length of the Affordability Period Less than $15,000 5 years $15,000 - $40,000 10 years More than $40,000 15 years New construction of rental housing 20 years Refinancing of rental housing 15 years Throughout the affordability period, income-eligible households must occupy the HOME- assisted housing. When units become vacant during the affordability period, subsequent tenants must be income eligible and must be charged the applicable HOME rent. Other Requirements Minimum Loan: All HOME investments must total not less than $1,000 multiplied by the number of HOME-assisted units in the project. Maximum Loan: The maximum amount of subsidy per unit shall not exceed the maximum allowed by HUD under the HOME program (24 CFR 92.250), or that provided for under Section IV, Loan Terms, of these Policies and Procedures, whichever is less. The City will avoid unnecessary layering of subsidies from different federal, state and local programs and seek to maximize the benefit to target households from the investment of HOME funds in a project. The ximum subsidy per unit for each project. Affordable Housing Funds Policies and Procedures Page 30 Property Standards: Housing that is assisted with HOME funds must meet, at a minimum, the , including all applicable local, State and Federal codes and regulations. Newly constructed housing must also meet the current edition of the Model Energy Code published by the Council of American Building Officials. Substantially rehabilitated housing must meet the cost-effective energy conservation and effectiveness standards in 24 CFR 39. Labor Standards/Construction Contracts: Any contract for construction (whether it is for rehabilitation or for new construction) of affordable housing with 12 or more units assisted with HOME funds must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1. These provisions apply whether HOME funds are used for construction or non-construction costs. Lead-based Paint: Housing assisted with HOME funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. Affordable Housing Funds Policies and Procedures Page 31 Community Development Block Grant Program Source of Funds Funding for this program is provided through the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program (including program income and residual receipts), and therefore is subject to the federal rules and regulations found in 24 CFR Part 570, as amended from time to time. Eligible Borrowers/Grantees Eligible borrowers are community-based nonprofit housing developm duly organized or with capacity to promote and undertake community development activities on a not-for-profit basis, with proven capacity to develop, own and operate affordable housing, within a neighborhood identified in the Community Development plan (Annual Action Plan). Such organizations are defined in CDBG regulations (24 CFR 570.204(a)(2)(c)(1)). Nonprofit develop, own, and operate affordable housing, and limited partnerships whose general partner(s) is otherwise eligible under the above provisions, are also eligible to borrow Program funds if the nonprofit partner is the managing general partner throughout the term of the loan and will receive at least 51% of the developer fee. Nonprofit corporations must have a valid 501(c)(3) or (4) designation from the Internal Revenue Service. Eligible Projects Eligible projects will: (1) have four or more apartment units or fewer than four units in the case of congregate housing, mobile home units or where the Housing Division Manager finds that the project will provide a substantial public benefit; (2) if new construction, have 51% of the units occupied by low income tenants; (3) be free from significant adverse environmental impacts, except those that can be mitigated; and, (4) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the program. Transitional or permanent supportive housing may be provided. Rents of assisted units shall be affordable to households whose incomes do not exceed 80% of the area median income. Eligible Uses and Activities Funds can be used to make loans to eligible borrowers to provide affordable housing, principally for low and moderate income households, including, but not limited to: (1) acquisition and/or rehabilitation of eligible rental properties; (2) new construction of rental or limited equity cooperative housing by a CBDO is eligible, provided the construction activity is carried out as part of a neighborhood revitalization, community economic development or energy conservation project. New housing construction carried out by an eligible CBDO must be part of a larger effort to revitalize the nei efforts based on a comprehensive plan, not just for the sake of the CDBG project); Affordable Housing Funds Policies and Procedures Page 32 Ineligible Uses and Activities Funds may not be used for the following activities: 1. the construction of new rental housing or for any program to subsidize or assist such housing, except when carried out by a CBDO, provided the construction activity is carried out as part of a neighborhood revitalization, community economic development or energy conservation project; 2. to provide income payments for rent or utilities, except in emergency situations for a period not longer than three months; or, 3. to assist rental housing properties if less than 51% of the units will be occupied by low and moderate income households. Compliance with Federal and Local Regulations All projects must comply with all applicable federal requirements contained in 24 CFR Part 570 Subpart K, including, but not limited to, standards of financial management, environmental review, labor and wage requirements, debarred contractors, lead-based paint and equal opportunity. Borrowers should note: Contract Requirements: All work shall be completed by licensed contractors. All contracts must comply with competitive bidding requirements. Labor Standards: A project with eight or more residential units must comply with the Federal Labor Standards, including the Davis-Bacon Act requirements, as promulgated by HUD, and set forth in 24 CFR Part 570, Subpart K in the performance of the rehabilitation or construction work financed by the loan. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Lead-based Paint: Housing assisted with CDBG funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. Accessibility: All projects must comply with the federal Section 504 Disabled Accessibility regulations contained in Sections 8.22 and 8.23 of Subpart C, 24 CFR Part 8. Affordable Housing Funds Policies and Procedures Page 33 Project-Based Voucher Program Source of Funds Project- Voucher Program. Funding for project-based vouchers comes from funds already obligated by the U.S. Department of Housing and Urban Development to a PHA under its Annual Contributions Contract. A PHA can attach up to 20 percent of its Annual Contributions Contract to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set-aside a portion of the units in an existing development. The PHA can use up to 20 percent of its housing choice vouchers for project-based vouchers. Eligible Borrowers promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Eligible projects include acquisition, rehabilitation, or new construction of rental housing projects which: 1. The PHA may attach PBV assistance for units in existing housing or for newly constructed or rehabilitated housing developed under and in accordance with an Agreement. a. Existing housingA housing unit is considered an existing unit for purposes of the PBV program, if at the time of notice of PHA selection the units substantially comply with HQS. i. Units for which rehabilitation or new construction began after owner's proposal submission but prior to execution of the Agreement to Enter into a Housing Assistance Payments Contract do not subsequently qualify as existing housing. ii. Units that were newly constructed or rehabilitated in violation of program requirements also do not qualify as existing housing. Eligible Uses and Activities Program funds can be used to enter into an Agreement with eligible borrowers who will provide affordable housing, principally for low and moderate income households. Eligible uses of Project-Based Voucher funds include, but are not limited to, the following: (1) acquisition and/or rehabilitation of eligible rental properties; (2) acquisition and conversion of nonresidential property to multifamily rental housing units; and (3) new construction of rental housing units. Affordability Requirements All units assisted under this program shall be affordable to households with incomes that do not exceed 30% of median income. Affordable Housing Funds Policies and Procedures Page 34 Compliance with Federal and Local Regulations All projects must comply with all applicable federal requirements contained in 24 CFR 982, including, but not limited to, environmental review, labor and wage requirements, debarred contractors, lead-based paint and equal opportunity. Borrowers should note: Contract Requirements: All work shall be completed by licensed contractors. All contracts must comply with competitive bidding requirements. Labor Standards: A project with nine or more residential units must comply with the Federal Labor Standards, including the Davis-Bacon Act requirements, as promulgated by HUD, and set forth in 24 CFR Part 570, Subpart K in the performance of the rehabilitation or construction work financed by the loan. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Lead-based Paint: Housing assisted with PBV funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. Accessibility: All projects must comply with the federal Section 504 Disabled Accessibility regulations contained in Sections 8.22 and 8.23 of Subpart C, 24 CFR Part 8. Affordable Housing Funds Policies and Procedures Page 35 Affordable Housing Funds Policies and Procedures City of Santa Ana Housing Division and Housing Authority of the City of Santa Ana Originally Adopted March 20, 2018 st 1Amendment:August 18, 2020 502 East Pine Street Santa Ana, CA 92701 Overview: Habitat for Humanity of Orange County is evaluating the acquisition and rehabilitation of an existing multifamily condominium complex located at 520 East Pine Street. The project will convert the property into -income working families in Santa Ana. Project Cost: $13,071,680 Condo Complex Description: Multifamily complex originally developed as a condo complex and currently has inactive HOA. Desirable unit mix consisting of 3, 2 bed/1.5 bath units, 10, 2 bed/1.5 bath townhomes, and 5, 3 bed/2 bath units. Three units are two-stories. Amenities include controlled access, private patios -bedroom - or balconies, elevator service, a gated subterranean parking garage, and on-site laundry. The complex has been operating as a rental property with no individual condo owners. Project Goal: Complete a major rehabilitation of unit interiors and common areas to improve safety, durability, and quality of life for residents, while reducing future maintenance risk and ensuring long- homeowners. • Create for low-income working families • Provide -time homeownership opportunities in Santa Ana’s competitive housing market • Preserve and improve an existing housing asset in the community • Stabilize housing for families and strengthen neighborhood vitality • Support long- Rehab Scope (Preliminary): Habitat OC plans to complete substantial interior upgrades, including: Interior painting Plumbing and electrical systems will be assessed and, if necessary, upgraded to support long-term performance and reliability. The building currently has heating only and no air conditioning. Habitat will evaluate the feasibility and cost of adding mini-split HVAC systems as part of the rehabilitation strategy, taking into account electrical capacity, and long-term operating impacts. To enhance safety and building function, Habitat OC will rehabilitate the common areas, including: - Courtyard improvements, including and protective treatments as needed - Laundry room upgrades - Elevator improvements/renovation Due Diligence Plan: and identify requirements, compliance obligations, and cost drivers. Planned assessments include: Phase I Environmental Site Assessment Lead-based paint testing Asbestos testing, including testing of popcorn ceilings as applicable Structural engineering review HOA and Reserve Considerations Habitat OC recognizes that HOA dues and reserves play a direct role in long-term homeowner stability. The rehabilitation plan will prioritize improvements that: Reduce future emergency repairs and unplanned assessments Support appropriate reserve planning and long-term replacement cycles Help mitigate upward pressure on HOA costs by addressing key building and common area needs proactively Timeline: -time homebuyers within 24 months of a funding award. Habitat OC is requesting that the City Council Initiated Proposal Review process be initiated now in anticipation of a potential funding consideration in September– October 2026.