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FULL PACKET_2019-08-20
MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA JUNE 18, 2019 CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:14 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor (5:20 P.M.) JUAN VILLEGAS, Mayor Pro Tern CECILIA IGLESIAS DAVID PENALOZA VICENTE SARMIENTO (5:40 P.M.) JOSE SOLORIO COUNCILMEMBERS Absent: WARD 4 VACANT* STAFF Present: KRISTINE RIDGE, City Manager SONIA R. CARVALHO, City Attorney NORMA MITRE, Acting Clerk of the Council * Ward 4 councilmember representative resigned on Friday, March 1, 2019. Mayor Pro Tern Villegas called Closed Session meeting to order. PUBLIC COMMENTS — NONE COUNCIL RECESSED TO Room 147 for Closed Session discussion at 5:20 P.M. CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: A. DCG, a Minor, et al. v. City of Santa Ana, et al., United States District Court, Case No.: 8:17-CV-01206-JVS-JCG CITY COUNCIL MINUTES JUNE 18, 2019 10A-1 B. Jesus Martinez v. City of Santa Ana, et al., United States District Court Case No.: 8:18-cv-01477-AG-DFM C. City of Santa Ana v. Salvador Navarro, Orange County Superior Court, Case No. 30-2017-00934129 D. Cecilia Iglesias v Neal Kelly, et. al.., Orange County Superior Court, Case No. 30- 2019-01073924 2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9 of the Government Code: ONE 3. CONFERENCE WITH LEGAL COUNSEL - THREAT OF LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9 of the Government Code: ONE case 4. PUBLIC EMPLOYEE EMPLOYMENT AND APPOINTMENT pursuant to Government Code 54957 Title: Clerk of the Council, Acting Clerk of the Council, or Interim Clerk of the Council CLOSED SESSION REPORT - See Item 19A for any reportable actions. ADJOURNED THE SPECIAL CLOSED SESSION MEETING AT 6:09 P.M. AND CONVENED TO THE REGULAR OPEN MEETING. CITY COUNCIL MINUTES 2 JUNE 18, 2019 10A-2 REGULAR OPEN MEETING 22 CIVIC CENTER PLAZA CALLED TO ORDER COUNCIL CHAMBER 6:13 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor JUAN VILLEGAS, Mayor Pro Tern CECILIA IGLESIAS DAVID PENALOZA VICENTE SARMIENTO JOSE SOLORIO COUNCILMEMBERS Absent: *WARD 4 VACANT STAFF Present: KRISTINE RIDGE, City Manager SONIA R. CARVALHO, City Attorney NORMA MITRE, Acting Clerk of the Council * Ward 4 councilmember representative resigned on Friday, March 1, 2019. PLEDGE OF ALLEGIANCE INVOCATION CEREMONIAL PRESENTATIONS MAYOR PULIDO BOB KELLER, POLICE CHAPLAIN • SPECIAL PRESENTATION -Update on City's 150t' Anniversary by Julie Castro -Cardenas, Community Development Agency • PROCLAMATION presented by COUNCILMEMBER SARMIENTO recognizing June as Lesbian, Gay, Bisexual, Transgender (LGBT) Pride Month. CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO recognizing Ana Gonzalez for outstanding academic achievement. CLOSED SESSION REPORT - See Agenda Item 19A for Closed Session Report. CITY COUNCIL MINUTES 3 JUNE 18, 2019 1OA-3 PUBLIC COMMENTS — None. AGENDA ITEM 75D CONSIDERED OUT OF ORDER 75D. PUBLIC HEARING —ADOPT VEHICLE MILES TRAVELED THRESHOLDS AND ADOPTION OF LOCAL GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT {STRATEGIC PLAN NO. 5,21 — Planning and Building Agency; and Public Works Agency Legal Notice published in the Orange County Reporter on June 7, 2019. Mayor Pulido opened and closed the public hearing. There were no speakers, no staff presentation and no written comments. MOTION: Adopt resolutions. RESOLUTION NO. 2019-049 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADOPTING "VEHICLE MILES TRAVELED" THRESHOLDS OF SIGNIFICANCE FOR PURPOSES OF ANALYZING TRANSPORTATION IMPACTS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT 2. RESOLUTION NO.2019-050 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADOPTING LOCAL CEQA GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (PUBLIC RESOURCES CODE §§ 21000 ET SEQ.) MOTION: Villegas SECOND: Pulido VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) * Ward 4 representative vacant. CITY COUNCIL MINUTES 4 JUNE 18, 2019 10A-4 CONSENT CALENDAR ITEMS MOTION: Approve staff recommendations on the following Consent Calendar Items 10A through 55C, with the following modifications: • Councilmember Solorio, pulled 11 B for separate discussion. MOTION: Solorio SECOND: Villegas VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) * Ward 4 representative vacant. r separate action or modified are ADMINISTRATIVE MATTERS MINUTES 10A. MINUTES FROM THE SPECIAL AND REGULAR MEETING OF MAY 21, 2019 {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Approve Minutes. ORDINANCES/SECOND READING In the event a Councilmember recorded an "abstention" before consideration of the following ordinance(s) on first reading, such abstention will also be reflected in the minutes for second reading. r-- - ----- ----------------------- -- ----- ...-.._N- _. _ .—.-__.-C-1---------T 111A. ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTAI ANA APPROVING AMENDMENT APPLICATION NO. 2018-04 TO ESTABLISHI THE MAINPLACE SPECIFIC PLAN (STRATEGIC PLAN NO. 5,1) - Clerk of they Council Office- - -- - - - - -- - -- _ _ - - - — Placed on first reading at the June 4, 2019 City Council meeting and approved by a vote of 4-2 (Sarmiento and Solorio dissented). Published in the Orange County Reporter on June 7, 2019. CITY COUNCIL MINUTES 5 JUNE 18, 2019 10A-5 Councilmember Sarmiento clarified for the record that he dissented on the first reading of ordinance (Item 75D) considered at the June 4, 2019, City Council meeting. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS-2966 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2018-04 FOR THE MAINPLACE MALL SPECIFIC PLAN FOR THE PROPERTY LOCATED AT 2800 NORTH MAIN STREET 111B. ADOPT AN ORDNANCE OF THE CITY COUNCIL OF THE CITY OF SANTA� ANA APPROVING DEVELOPMENT AGREEMENT NO. 2018-02 WITH MAINPLACE SHOPPINGTOWN, LLC {STRATEGIC PLAN NO. 5,11 - Clerk of the _ _Council Office_ Placed on first reading at the June 4, 2019 City Council meeting and approved by a vote of 4-2 (Sarmiento and Solorio dissented). Published in the Orange County Reporter on June 7, 2019. Councilmember Solorio supportive of item, second reading of ordinance. Councilmember Sarmiento clarified for the record that he dissented on the first reading (Item 75D) that was considered at the June 4, 2019, City Council meeting; and is supportive of item, second reading of ordinance. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS-2967 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DEVELOPMENT AGREEMENT NO. 2018- 02 BETWEEN THE CITY OF SANTA ANA AND MAINPLACE SHOPPINGTOWN, LLC FOR THE MAINPLACE MALL TRANSFORMATION PROJECT AT 2800 NORTH MAIN STREET, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864, ET SEQ. MOTION: Solorio SECOND: Sarmiento VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) Ward 4 representative vacant. CITY COUNCIL MINUTES JUNE 18, 2019 10A-6 11C. ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2019-01 TO REZONE PROPERTY LOCATED AT 651 WEST SUNFLOWER AVENUE AND TO ADOPT SPECIFIC DEVELOPMENT NO. 94 {STRATEGIC PLAN NO. 5,11 - Clerk of the Council Office Placed on first reading at the June 4, 2019 City Council meeting and approved by a vote of 6-0. Published in the Orange County Reporter on June 7, 2019. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS-2968 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2019-01 REZONING THE PROPERTY LOCATED AT 651 WEST SUNFLOWER AVENUE FROM SINGLE-FAMILY RESIDENTIAL (R-1) TO SPECIFIC DEVELOPMENT NO. 94 (SD-94) (AA NO. 2019-01) AND ADOPTING SPECIFIC DEVELOPMENT NO. 94 (SD-94) FOR SAID PROPERTY BOARDS / COMMISSIONS / COMMITTEES 13A. APPOINT TIMOTHY JOHNSON NOMINATED BY MAYOR PULIDO AS THE MAYORAL REPRESENTATIVE TO THE SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE FOR A FULL -TERM EXPIRING DECEMBER 8, 2020 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Nominate Timothy Johnson for an appointment to the Santa Ana 2018 Measure X Citizen Oversight Committee as the Mayoral representative. MISCELLANEOUS ADMINISTRATION 19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — City Attorney's Office MOTION: Approve as follow: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: A. DCG, A MINOR, ET AL. V. CITY OF SANTA ANA, ET AL., UNITED STATES DISTRICT COURT, CASE NO.: 8:17-CV-01206-JVS-JCG; APPROVED A SETTLEMENT IN THE AMOUNT OF $450,000 BY A VOTE OF 4-1 (IGLESIAS DISSENTED AND SARMIENTO ABSENT) AGMT NO. 2019-126. CITY COUNCIL MINUTES JUNE 18, 2019 10A-7 B. JESUS MARTINEZ V. CITY OF SANTA ANA, ET AL., UNITED STATES DISTRICT COURT CASE NO.: 8:18-CV-01477-AG-DFM; APPROVED A SETTLEMENT IN THE AMOUNT OF $185,000 BY A VOTE OF 4-1 (IGLESIAS DISSENTED AND SARMIENTO ABSENT). C. CITY OF SANTA ANA V. SALVADOR NAVARRO, ORANGE COUNTY SUPERIOR COURT, CASE NO. 30-2017-00934129; AUTHORIZED A PURCHASE OF PROPERTY RELATED TO THE OC STREETCAR PROJECT IN THE AMOUNT OF $1,164,500 BY A VOTE OF 6-0. 19B. EXCUSED ABSENCES — Clerk of the Council Office BUDGETARY MATTERS AGREEMENTS 25A. APPROVE AN AGREEMENT WITH COMMUNITY SENIORSERV INC. FOR SENIOR MEALS PROGRAMS IN AMOUNT NOT TO EXCEED $90,290 FOR THE PERIOD JULY 1, 2019 TO JUNE 30, 2020 {STRATEGIC PLAN NO. 5, 6E) — Parks, Recreation and Community Services Agency MOTION. Authorize the City Manager and Clerk of the Council to execute an agreement with Community SeniorServ, Inc. for Senior Meals Programs in the amount not to exceed $90,290 for the term July 1, 2019 to June 30, 2020 to be funded with General Funds, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2019-090). 25B. APPROVE A 43-MONTH LEASE AGREEMENT WITH SENATE, CALIFORNIA LEGISLATURE, FOR OFFICE SPACE AT THE SANTA ANA REGIONAL TRANSPORTATION CENTER LOCATED AT 1000 EAST SANTA ANA BLVD. TOTAL REVENUE: $275,200 {STRATEGIC PLAN NO. 3, 2C) — Public Works Agency MOTION. Authorize the City Manager and Clerk of the Council to execute a site lease agreement with Senate, California Legislature, to compensate the City $6,400 per month, with any partial month prorated at $206 per day, for the lease of 3,200 square feet of office space located at the Santa Ana Regional Transportation Center, forthe 43-month term beginning on August 1, 2019, and ending February 28, 2023, for a total of $275,200 in lease revenue for the entire term of the agreement, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2019- 091). CITY COUNCIL MINUTES 8 JUNE 18, 2019 10A-8 25C. MEMORANDUM OF UNDERSTANDING WITH THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) TO IMPLEMENT THE BICYCLIST/PEDESTRIAN EDUCATION CAMPAIGN AT A TOTAL PROJECT COST NOT TO EXCEED $53,466 {STRATEGIC PLAN NO. 1, 3B} — Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute a Memorandum of Understanding with the Southern California Association of Governments for Bicyclist and Pedestrian Education funds in an amount not to exceed $28,480 through December 31, 2019, and committing the City of Santa Ana to an In -Kind Match of $24,986 in project management services, to implement the City of Santa Ana Bicyclist/Pedestrian Education Campaign at a total project cost of $53,466, subject to non -substantive changes approved by the City Manager and City Attorney. In -kind Match of $24,986 will be funded by the General Fund (AGMT. No. 2019-092). RESOLUTIONS 55A. ADOPT A RESOLUTION ESTABLISHING THE CITY OF SANTA ANA FOR FISCAL STATE LAW {STRATEGIC PLAN NO. 4 Services Agency MOTION: Adopt a resolution. THE APPROPRIATION LIMIT OF YEAR 2019-20, AS REQUIRED BY 1 D} — Finance and Management RESOLUTION NO. 2019-051 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FISCAL YEAR 2019-2020 55B. ADOPT RESOLUTION APPROVING CITY'S ANNUAL STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2019-20; RECEIVE AND FILE ANNUAL STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2019- 20{STRATEGIC PLAN NO. 4, 1} — Finance and Management Services Agency MOTION. 1. Adopt a resolution. RESOLUTION NO.2019-052 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE CITY'S ANNUAL STATEMENT OF INVESTMENT POLICY 2019-20 2. Receive and file the Annual Statement of Investment Policy for Fiscal Year 2019-20. CITY COUNCIL MINUTES JUNE 18, 2019 10A-9 55C. ADOPT A RESOLUTION APPROVING THE SANTA ANA ACTIVE TRANSPORTATION PLAN {STRATEGIC PLAN NO. 5, 6B} — Public Works Agency MOTION: Adopt a resolution. RESOLUTION NO. 2019-053 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SANTA ANA ACTIVE TRANSPORTATION PLAN *END OF CONSENT CALENDAR*` BUSINESS CALENDAR ITEMS ADMINISTRATIVE MATTERS - BUSINESS 60A. APPROVE APPROPRIATION ADJUSTMENT TO TRANSFER GENERAL FUND BUDGET BETWEEN VARIOUS DEPARTMENTS FOR FISCAL YEAR 2018-19 WITH NO NET FISCAL IMPACT {STRATEGIC PLAN NO. 4, 1, 3} — Finance and Management Services Agency Consideration of matter failed at the June 4, 2019 City Council meeting by a vote of 4-2 (Iglesias and Villegas dissented); item continued to the June 18, 2019 City Council meeting. MOTION: Approve an appropriation adjustment. (Requires rive affirmative votes). APPROPRIATION ADJUSTMENT NO. 2019 — 161 - Approve the proposed maximum General Fund appropriation adjustment as follows. The actual appropriation adjustment between departments may be less, based upon final fiscal year-end amounts. Department Reason Amount City Manager's Former City Manager separation payment, and $450,000 Office (CMO) payment of significant accrued leave for two other CMO employees who separated from the City Non- Updated Information Technology Internal Service $300,000 Departmental Allocations Clerk of the Election Savings $(250,000) Council Public Works Staff Vacancy Savings $(500,000) Agency General Fund $0 Net Im act CITY COUNCIL MINUTES 10 JUNE 18, 2019 10A-10 MOTION: Villegas SECOND: Solorio VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) * Ward 4 representative vacant. ACTING CLERK OF THE COUNCIL ADMINISTERED OATH OF OFFICE TO TIMOTHY JOHNSON, SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE MEMBER 60B. APPROVE THE THIRD AMENDMENT TO THE AGREEMENT WITH UNIVERSAL PROTECTION SERVICE, LP DBA ALLIED UNIVERSAL SECURITY SERVICES TO PROVIDE SERVICES AT VARIOUS PARKS & TRAILS AND INCREASE THE AGREEMENT ANNUAL AMOUNT BY $667,047.90, TO BE PROVIDE SERVICES AT VARIOUS PARKS & TRAILS, FOR A TOTAL ANNUAL AMOUNT OF $1,892,262.75 AND TOTAL AGREEMENT AMOUNT OF $8,020,362.25 OR AUTHORIZE A REQUEST FOR PROPOSAL TO PROVIDE SECURITY SERVICES AT VARIOUS PARKS {STRATEGIC PLAN NO. 1, 6} — Parks, Recreation and Community Services Agency Councilmember Sarmiento introduced friendly amendment to motion to include both staff recommendations to extend contract and proceed with a Request for Proposal (RFP). Allied Universal Security Services representative General Manager Steve Nsaif spoke. AMENDED MOTION: Authorize amendment and issue Request for Proposal (RFP). 1. Authorize the City Manager and Clerk of the Council to execute a third amendment to the agreement with Universal Protection Service Services, LP., dba Allied Universal Security Services to provide services at various City parks and bike trails and increase the agreement annual amount by $667,047.90, to be paid from the General Fund account, for a total annual amount of $1,892,262.75 and total agreement amount of $8,020,362.25, for the remaining period of the three-year term originally CITY COUNCIL MINUTES 11 JUNE 18, 2019 10A-11 beginning June 1, 2017 and expiring May 31, 2020, with two additional, one-year renewal options, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2019-093). AND 2. Authorize staff to issue a request for proposal to provide security services at various parks. MOTION: Sarmiento SECOND: Solorio VOTE: AYES: Penaloza, Pulido, Sarmiento, Solorio (4) NOES: Iglesias and Villegas (2) ABSTAIN: None (0) ABSENT: None (0) * Ward 4 representative vacant. REPORTS 65A. APPOINT CITY COUNCILMEMBER TO THE ORANGE COUNTY HOUSING FINANCE TRUST {STRATEGIC PLAN NO. 5, 3C} — Community Development Agency MOTION: Appointed City Councilmember Penaloza to the Orange County Housing Finance Trust. MOTION: Iglesias SECOND: Soloro VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) * Ward 4 representative vacant. PUBLIC HEARINGS 75A. PUBLIC HEARING - ADOPT THE FISCAL YEAR 2019-20 BUDGET AND APPROVE CHANGES TO THE CITY'S BASIC CLASSIFICATION AND CITY COUNCIL MINUTES 12 JUNE 18, 2019 10A-12 COMPENSATION PLAN {STRATEGIC PLAN 4, 1, 2, 31 — Finance and Management Services Agency Legal Notice published in the Orange County Reporter on May 24, 2019 and May 31, 2019. Mayor Pulido opened and closed public hearing at the June 4, 2019 City Council meeting. Written correspondence received. Continued from the June 4, 2019 City Council meeting by a vote of 5-1 (Iglesias dissented). Additional written correspondence received. MOTION: Bifurcate recommended action 75A-1 as follows: 1) Approve Citywide Budget excluding Police Budget and 2) Approve Police Budget. MOTION: Villegas SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, , Villegas (5) NOES: None (0) ABSTAIN: None (0) ABSENT: Solorio (1) * Ward 4 representative vacant. 1A. Approve the General Citywide Budget excluding the Police budget. AMENDED MOTION: Approve the General Citywide Budget excluding the Police budget with the General Fund modifications indicated below, and place ordinance on first reading and authorize publication of title. . $25,000 one-time appropriation added to the City Manager's budget for census outreach • $25,000 one-time appropriation added to the Community Development budget for rental assistance. . $100,000 one-time appropriation added to the Non -Departmental budget to increase the Universal Defense Fund allocation; and • $110,000 one-time appropriation added to the Community Development budget for non-profit applicants that did not receive CDBG funding. ORDINANCE NO. NS-2969 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROPRIATING MONIES TO THE SEVERAL CITY COUNCIL MINUTES 13 JUNE 18, 2019 10A-13 OFFICES, AGENCIES, AND DEPARTMENTS OF THE CITY FOR FISCAL YEAR BUDGET PERIOD COMMENCING JULY 1, 2019 MOTION: Villegas SECOND: Pulido VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) * Ward 4 representative vacant. 1B. APPROVE THE POLICE BUDGET. AMENDED MOTION: Approve the Police Budget and consistent with the additional comments of the broader motion made under 75A-1 and place ordinance on first reading and authorize publication of title. ORDINANCE NO. NS-2969 -AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROPRIATING MONIES TO THE SEVERAL OFFICES, AGENCIES, AND DEPARTMENTS OF THE CITY FOR FISCAL YEAR BUDGET PERIOD COMMENCING JULY 1, 2019 MOTION: Pulido SECOND: Solorio VOTE: AYES: Penaloza, Pulido, Sarmiento, Solorio (4) NOES: Iglesias, Villegas (2) ABSTAIN: None (0) ABSENT: None (0) Ward 4 representative vacant. 2. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN MOTION: Adopt resolution. CITY COUNCIL MINUTES 14 JUNE 18, 2019 1 OA-14 RESOLUTION NO. 2019-054 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN MOTION: Solorio SECOND: Sarmiento VOTE: AYES: Penaloza, Pulido, Sarmiento, Solorio (4) NOES: Iglesias, Villegas (2) ABSTAIN: None (0) ABSENT: None (0) 3. ADOPT THE SEVEN-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP) BEGINNING FISCAL YEAR 2019-20 THROUGH FISCAL YEAR 2025-26 PER ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA) MEASURE M2 ELIGIBILITY REQUIREMENT. MOTION. Adopt the Seven -Year Capital Improvement Program (CIP) beginning fiscal year 2019-20 through fiscal year 2025-26 per Orange County Transportation Authority (OCTA) Measure M2 eligibility requirement. MOTION: Sarmiento SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 75B. PUBLIC HEARING — APPROVE THE FISCAL YEAR 2019-20 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FOR A TOTAL AMOUNT OF $7,146,686 {STRATEGIC PLAN NOS. 1,6; 2,2; 5,4) — Community Development Agency Community Redevelopment and Housing Commission approved recommended action on March 27, 2019 by a vote of 6-1 (Urzua abstained). CITY COUNCIL MINUTES 15 JUNE 18, 2019 10A-15 Legal Notice published in the Orange County Register, La Opinion and Nguoi Viet on May 14, 2019. Continued from the June 4, 2019 City Council meeting by a vote of 5-0 (Iglesias absent). Mayor Pulido opened the public hearing. There were no speakers. Written communication received. Mayor closed the public hearing. MOTION: Approve the Fiscal Year 2019 - 20 Community Development Block Grant Program in the amount of $7,146,686, including $5,701,154 from the Grant Year 2019 allocation, anticipated program income in the amount of $275,039, and re -allocation of prior year program funds in the amount of $1,170,493 from the United States Department of Housing and Urban Development. 2. Direct the City Attorney to finalize and authorize the City Manager and the Clerk of the Council to execute memorandums of understanding with various city departments and agreements with nonprofit organizations awarded funds as part of the approved community development block grant program for a term beginning July 1, 2019 through June 30, 2020, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2019-094). City Department Award 1. Community Development Agency - Administration of the CDBG Program. Proposed funding amount $1,080,230 calculated based on 20% administrative cap less Fair Housing amount. 2. Orange County Fair Housing Council Inc. — Provides fair housing education, landlord tenant counseling and enforcement services to combat housing discrimination $60,000 and city administrative support for the residents of the City of Santa Ana. A commitment to further fair housing is a requirement of CDBG funding. 3. Code Enforcement — Community Preservation Services $790,664 4. Economic Development - Funds are used to make award grants of up to $5,000 to eligible microenterprise $72,926 businesses in the City. 5. Parks, Recreation and Community Services Agency $1,435,000 - Neighborhood park improvements. 6. Public Works Agency - Residential street improvements / Santa Ana Regional Transportation $2,150,323 Center Americans with Disability Act improvements. CITY COUNCIL MINUTES 16 JUNE 18, 2019 10A-16 City Department Award 7. Planning and Building Agency — Neighborhood Sponsored Improvements to address property maintenance and life safety violations, which contribute f $50,000 the visual blight and general decline of an area. 8. Housing — To address rehabilitation of single-family and multi -family housing as well as a homebuyer down $635,000 payment assistance program TOTAL $6,274,143 Public Service Organizations Award 9. America on Track — Brighter Futures for Children of $45,000 Prisoners 10. Boys & Girls Club of Santa Ana — Community Based $40,000 Mentoring Program 11. Charitable Ventures of OC — Summer Night Lights $30,000 12. Community Action Partnerships of OC — Economic $30,000 Empowerment, Your Money Your Goals 13. Community Health Initiative Orange County - Provides outreach, education, enrollment, and case $30,000 management services to vulnerable populations 14. Court Appointed Special Advocates — Transitional $30,000 Age Youth Program 15. Delhi Center/Cielo- Family Economic Success Initiative $93,205 Program 16. Delhi Center - Teens Engaged in Learning and $68,461 Leadership Program 17. Delhi Center/ALBI - Skill enrichment, self-expression, stress relief and socialization through various arts $61,557 activities 18. Heritage Museum of OC — The Borrowing Barn $31,320 19. Legal Aid Society of OC (Community Legal Aid SoCal) - Provides free, holistic legal assistance to .$38,000 survivors of domestic violence 20. Lutheran Social Services of So. Cal. — Victims $30,000 intervention Program 21. Nati's House (dba Neutral Ground) - Summer Night $60,000 Lights Program 22.00 Children's Therapeutic Arts Center - After School Arts, Tutoring, Family Counseling, and Parenting $70,000 Classes 23.Public Law Center— Consumer& Community $30,000 Organizations Legal Assistance Project CITY COUNCIL MINUTES 17 JUNE 18, 2019 10A-17 Public Service Organizations Award 24. Public Law Center - Affordable Housing & Homelessness Prevention Program $30,000 25. Second Chance Orange County — More Second Chances 50,000 $ 26.Taller San Jose Hope Builders — Business Applications $30,000 27. The Cambodian Family — Plan Ahead Youth Program $45,000 28.Young Men's Christian Association of OC — Financial Assistance Program $30,000 TOTAL $872,543 Note: The public service organizations and the amounts are subject to change pending Recommended Action 2 above. MOTION: Sarmiento SECOND: Penaloza VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) * Ward 4 representative vacant. 75C. PUBLIC HEARING - APPROVE THE FISCAL YEAR 2019 - 2020 ANNUAL ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM, HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM, AND EMERGENCY SOLUTIONS GRANTS (ESG) PROGRAM; AND AUTHORIZE SUBMISSION TO HOUSING AND URBAN DEVELOPMENT {STRATEGIC PLAN NO. 5, 1) — Community Development Agency Community Redevelopment and Housing Commission approved recommended action on March 27, 2019 by a vote of 9-0. Legal Notice published in the Orange County Register, La Opinion and Nguoi Viet on May 14, 2019. Continued from the June 4, 2019 City Council meeting by a vote of 5-0 (Iglesias absent). Mayor Pulido opened the public hearing. There were no speakers. Mayor closed the public hearing. CITY COUNCIL MINUTES 18 JUNE 18, 2019 10A-18 MOTION: 1. Approve the Fiscal Year 2019 - 2020 Annual Action Plan. 2. Authorize the submission of the Fiscal Year 2019 - 2020 Annual Action Plan to the United States Department of Housing and Urban Development and designate the Community Development Agency Executive Director as the Certifying Official authorized to execute all documents related to the administration, management and implementation of the CDBG, HOME and ESG Programs. MOTION: Solorio SECOND: Sarmiento VOTE: AYES: Iglesias, Penaloza, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) * Ward 4 representative vacant. AGENDA ITEM 75D CONSIDERED OUT OF ORDER 75E. PUBLIC HEARING CONTINUED — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CHANGING THE BOUNDARIES OF WARD 3 IN CONJUNCTION WITH THE PROPOSED 24.78-ACRE COUNTY ISLAND ANNEXATION GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE — Planning and Building Agency Matter continued to a future City Council meeting at the request of staff. COUNCIL AGENDA ITEMS Pursuant to Santa Ana Charter Section 411, any member of the City Council may place items on the City Council Agenda to be considered by the City Council. Only action available to City Council is to provide direction to City Manager. 85A. DISCUSS AND CONSIDER DIRECTING CITY MANAGER TO DIRECT STAFF TO PROVIDE UPDATE ON ORDINANCE FOR RV PARKING - Councilmember Iglesias CITY COUNCIL MINUTES 19 JUNE 18, 2019 10A-19 Councilmember Iglesias, directed staff to update ordinance to provide better enforcement that is consistent with other cities. Supportive of review of ordinance to be considered by the Public Safety, Code Enforcement and Neighborhood Empowerment Council Committee. COMMENTS PUBLIC COMMENTS (Non-Agendized Items). The following spoke: • Peter Katz, thanked City Council for securing the Bowers Museum to host the annual event, Neighborhood of the Year, Community Achievement, Most Beautiful Yard and Neighborhood Hero; and spoke on the preparation efforts of the 150t' celebration. • Dale Helvig, provided City Council with update of meeting with 2525 Main Street developer. • Dolores Aguilar, unsupportive of Lincoln Avenue Pathway project. • Paul Lujan, unsupportive of Lincoln Avenue Pathway project. • Jessica and Kevin Schell, addressed City Council to express concern over lack of progress of dog attack investigation. 90A. CITY MANAGER'S COMMENTS City Manager Ridge announced that the Public Works Agency/Water Resources Division partnered up with the Metropolitan Water District to provide upcoming free native landscaping workshops and classes at the Santiago Creek Wildlife and Watershed Center at Santiago Park; the Santa Ana Stadium employee aerial photo event will be taken on June 27, 2019; and first-time homeowner's workshop for low and moderate income households. Provided report on panel participation on the Orange County State of the Market. 9013. CITY COUNCILMEMBER COMMENTS Councilmember Solorio, requested staff to coordinate meeting with Park Santiago Residents, Orange County Transportation Authority and MetroLink to address the Lincoln Avenue Pathway project, noted Senator Umberg relocating District office to the Santa Ana Regional Transportation Center, directed staff to send welcome letter to Senator Umberg, and noted unveiling of historical mural at the Heritage Museum of Orange County designed by local artist with help of many students. . Councilmember Penaloza, reported attendance at Transportation Corridor Agency, upcoming attendance to the National Association of Latino Election Official (NALEO), welcomed Senator Umberg to our city and invited Senator Daly to relocate his office to the City of Santa Ana. CITY COUNCIL MINUTES 20 JUNE 18, 2019 1 OA-20 Councilmember Iglesias reported attendance at Orange County Sanitation Board meeting; attendance at Orange County Council of Governments (OCCOG); attendance at subcommittee meeting for the Regional Housing Needs Assessment with Southern California Association of Governments (SCAG); attendance at Economic Development Infrastructure, Budget and Technology Council Committee (EDIBT) meeting; and attendance with the Public Safety, Code Enforcement and Neighborhood Empowerment Committee. Supportive of staff to work weekend at parks. Councilmember Soloho directed spoke on firework enforcement. Councilmember Sarmiento noted efforts to pursue Santa Ana Zoo improvements. Mayor Pro Tern Villegas reported attendance at American Legion Flag ceremony, and noted Orange County Fire Authority Girls Empowerment Camp program. Mayor Pulido reported on attendance at the North America Mayors Summit supportive of implementing application to assist in supplementing policing efforts. ADJOURNED- 8:40 P.M. - The next meeting of the City Council is scheduled for Tuesday, July 2, 2019 at 5:00 p.m. for the Closed Session Meeting immediately followed by the Regular Open Business Meeting at 5:45 p.m. in the Council Chamber, 22 Civic Center Plaza, Santa Ana, California. FUTURE AGENDA ITEMS • CONSIDERATION OF SEVENTEENTH AND TUSTIN ANNEXATION • GENERAL PLAN UPDATE VISTA HERITAGE AMENDMENT APPLICATION DENSITY BONUS AGREEMENT FOR FIRST POINT I AND II • TRANSIT ZONING CODE AMENDMENTS • 2525 NORTH MAIN STREET DEVELOPMENT PROJECT CITY COUNCIL MINUTES 21 JUNE 18, 2019 1 OA-21 1 OA-22 LS 6.10.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2019-02 REZONING THE PROPERTIES LOCATED AT 1904 WEST FIRST STREET, 1910 WEST FIRST STREET, 1916 WEST FIRST STREET, AND 1901 WEST WALNUT STREET FROM LIGHT INDUSTRIAL (M1) TO GENERAL COMMERCIAL (C2) AND 2002 WEST FIRST STREET FROM COMMUNITY COMMERCIAL (Cl) TO GENERAL COMMERCIAL (C2) THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Ben Steckler with Fiedler Group, representing 7-Eleven, Inc. ("Applicant'), filed Amendment Application No. 2019-02 with the City of Santa Ana to change the zoning designation of the parcel located at 1904 West First Street from Light Industrial (M1) to General Commercial (C2) in order to facilitate the construction a new 2,480-square-foot convenience store (7- Eleven) with an 810-square-foot gas station canopy with two fuel pumps that will accommodate up to four vehicles at a time. B. In addition, the City of Santa Ana is proposing to amend the zoning designation of 1910 West First Street, 1916 West First Street, and 1901 West Walnut Street from Light Industrial (M1) to General Commercial (C2) and 2002 West First Street from Community Commercial (Cl) to General Commercial (C2). C. On May 13, 2019 and June 10, 2019, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt an ordinance approving Amendment Application No. 2019-02, which is consistent with the General Plan land use designation of the subject properties. D. The City Council has reviewed applicable general plan policies and has determined that this proposed rezoning is consistent with the purpose of the general plan. F. The City Council, prior to taking action on this ordinance, held a duly noticed public hearing on July 16, 2019. Ordinance No. NS-XXXX Page 1 of 5 11 A-1 G. The City Council also adopts as findings all facts presented in the Request for Council Action dated July 16, 2019 accompanying this matter. H. For these reasons, and each of them, Amendment Application No. 2019- 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 otherwise justified by the public necessity, convenience, and general welfare. Section 2. The City Council of the City of Santa Ana hereby adopts an ordinance rezoning the real properties located at 1904, 1910, 1916, and 2002 West First Street and 1901 West Walnut Street and Amended Sectional District Map Number 14-5-10 showing the above described change in use district designation (AA No. 2019-02). This approval was based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Council Action dated July 16, 2019, and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. Section 3. The City Council has reviewed and considered the information contained in the Mitigated Negative Declaration (Environmental Review No. 2017-140) prepared with respect to this project. The City Council has, as a result of its independent consideration of the record as a whole and the evidence presented at the hearings on this matter, determined that, as required pursuant to the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, Environmental Review No. 2017- 140 meets all the requirements of CEQA. Section 4. The zoning designations of the real properties located at 1904 West First Street, 1910 West First Street, 1916 West First Street, and 1901 West Walnut Street are hereby changed from Light Industrial (M1) to General Commercial (C2) and the zoning designation of the real property located at 2002 West First Street is hereby changed from Community Commercial (C1) to General Commercial (C2). An amended Sectional District Map Number 14-5-10, showing the above described changes in use district designation, is hereby approved and attached hereto as Exhibit A, and incorporated by this reference as though fully set forth herein. Section 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Ordinance No. NS-XXXX Page 2 of 5 11 A-2 Section 6. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. ADOPTED this day of , 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: c — Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor Ordinance No. NS-XXXX Page 3 of 5 11 A-3 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. 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CAUFORNIA Ordinance No. NS-XXXX Page 5 of 5 11 A-5 11 A-6 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: RECEIVE AND FILE BOARDS AND COMMISSIONS BIANNUAL ATTENDANCE REPORT JANUARY THROUGH JUNE 2019 (STRATEGIC PLAN NO. 5, 1) RECOMMENDED ACTIONS CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Receive and file Boards and Commissions Biannual Attendance Report. 2. Provide direction as necessary. DISCUSSION The Boards and Commissions Attendance Report is prepared biannually to inform the Council regarding member attendance at Board or Commission meetings. This report covers the period of January through June 2019. Pursuant to Council policy, the City Council may remove board or commission members who incur four (4) unexcused absences within the six-month reporting period. Youth Commission Bylaws provide that a member of the Youth Commission who incurs three (3) unexcused absences within the six-month reporting period shall be deemed vacant. Examination of the attendance report reveals that two Youth Commission members (Alternate member Alecc Banda and Associate member Brenda Medel) have exceeded the limits for permitted absences. Therefore, Council may take action as required. STRATEGIC PLAN Approval of this matter allows us to meet Goal #5. Community Health, Livability, Engagement & Sustainability, Priority #1, Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities. 13C-1 Boards and Commission Biannual Report August 20, 2019 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. Daisy Gome , MMC Clerk of thwCouncil Exhibit: 1. 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J a w C' W VI LA > w 2 iJ w rl Y w U i z z G Z "' w QUU r 13C-23 13C-24 lLl Q Z Z O U) N O U tL' O m N d m WG D C 7 w x x x x x W d 0 � c d d d Jp IL a d d = 0 � d d d � c wd LL d d } R �m Z C �d d W Z CN .0) C r It e. - > V1 0 m m U t Q c U c N o m J O r Y H GI V C d 71 a a a m N 7 V L L D N S N II � K � a a� t rn c m a� E i- w L S Z E W L00 U S Z 13C-25 13C-26 . W ro WC D c 7 a7 m T x x n x x x �i m x N w i c of i m n x x x x x > > x N a� JO ILc W x x x x x x x m x m so �_ �mU.) M > > x x x x m O x G u U.0 �) x x x x x W m x ro a° DV) �e mco W W x x x x x W x x x w N c N N f0 Nm N ro lb m N d N ro N m ro 9 t�6 m o � o w u'%� c� oLLI � 'ram (0 �� a� �Q w m o f AP a.P >,Q 0 mat Ha t to ap >.C6 =E _P co a m J N W O 13C-27 13C-28 d c C d N d Q a m N 3 V x w w w Q X a J m d e 2 LL, x d o .o w N N NN a Z Z ,o Q p �CLU m Q� w O O Q U Z R\ 13C-29 13C-30 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: AUGUST 20, 2019 TITLE: APPROVED ❑ As Recommended RE -APPOINT ENRIQUE PEREZ TO THE . ❑ As Amended WORKFORCE DEVELOPMENT BOARD El Ordinance on Reading [I El Ordinance on c Reading FOR A FOUR YEAR TERM EXPIRING ❑ Implementing Resolution MAY 31, 2023 ❑ Set Public Hearing For (STRATEGIC PLAN NO 5,1) CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Reappoint Enrique Perez to the Santa Ana Workforce Development Board, representing Rancho Santiago Community College, for a four-year term expiring May 31, 2023. DISCUSSION On May 17, 2016, the Santa Ana City Council adopted Resolution 2016-031 establishing the Santa Ana Workforce Development Board (WDB) and appointed 25 members. In accordance with the federal Workforce Innovation and Opportunity Act (WIOA) Section 107(B)(2)(A-D) a local WDB board is to be comprised of representatives from specific categories and that the number of WDB members in the categories be proportional in different ways to the total membership while maintaining a greater than 50 percent representation from the business sector. WDB Board members are to be appointed by Council under the categories of membership, prescribed by law, as follows: • Representatives from local businesses 13 members • Representative from labor, labor registered 5 members apprenticeship, and/or community based organization) • Representatives from local education institutions 3 members • Representative from government entities 4 members (Dept. of Rehabilitation, Social Services Agency, EDD, and Economic Development) Mr. Enrique Perez, J.D., represents local higher education institution on the Workforce Development Board. Mr. Perez is the Vice Chancellor of Educational Services at Rancho 13D-1 Re -Appoint Enrique Perez to the Workforce Development Board For a 4-Year Term Expiring May 31, 2023 August 20, 2019 Page 2 Santiago Community College District (Exhibit 1) and is very involved in workforce issues that affect the residents and business community of Santa Ana and the Orange County region. STRATEGIC PLAN ALIGNMENT Approval assists the City in meeting Goal #5 (Community Health, Livability, Engagement and Sustainability). Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussion public policy and setting priorities). FISCAL IMPACT There is no fiscal impact associated with this item. Steven A. Mendoza Executive Driector Community Development Agency Exhibit: 1. Resume — Enrique Perez, J.D. 13D-2 iWO:n:3116i EXHIBIT 7 81111r1ing the fuhne Mfough fpalihj eiivaltklrl 2323 Narlh araadvmy R Unto Ana, CA 92706 -1640 • 17141 480.7300 • awj,,d.edu - • ' •..-......._......_ _. ~.-,•^.- %MA Ana Conga - $aminan Caagm, Collego August 8, 2016 Mr, Lee MoMurtray Chair Santa Ana Workforce Development Board 1000 E. Seats Ana Blvd„ Suite 200 Santa Ana, CA 92701 Deal' Mr. MbMurtray, On behalf of the Rancho Santiago Community College District (RSCCD), I am pleased to nominate Interim Vice Chancellor, Educational Services Enrique Perez for appointment to the Santa Ana Workforce Development Board In the area ofSgher Education. With more than 20 years of experience working with industry; government and higher education in the area of economic and workforce development, Mr, Perez has the background which will enable him to make a meaningful contribution as a member of the SAWDB, As Interim Vice Chancellor of Educational Services, he oversees all of the district's economic and workforce development programs ranging ftom entrepreneurial programs, small business development, International trade and contract training. Mr, Perez also serves as the Executive Director of the Internatiogal Consortium forEducatfonal and Economic Development (ICEED} a oonsortium of community colleges from the United States, Mexico and Canada focused on economic and workrorce development projects throughout North America, RSCCD is also the grant administrator for the LA10C Regional Consortia, an initiative of the State Chancejloes office which focuses on Career Technical Education. Mr. Perezz oversees the Work of the LA/0C Regional Consortia which represents, more than a third of the economy of California. We are confident that Mr. Perez will do an otltstandulg Job representing RSCCD and be a major contributor to the SAWDB, If you should require anything farther, ploase contact us. Sincerely, J Radl Rodriguez, PhD, Chancellor MkRa V rRUSI-ES dnu,tn C Alvmx - Ark.m F bwn , - lal,,, 4 4 vwa - 1A,.etge R '(M7* rsbm& - Jwtl NrJA. mfi,,h.n YN,M1R - FhAt, E Y,r1YOvgh 0"CULOR Ru0 Qxvk a A.D 13D-3 13D-4 CITY OF SANTA ANA SPECIAL MEETING OF THE LEGISLATIVE AFFAIRS, ETHICS, TRANSPARENCY & COMMUNICATIONS COUNCIL COMMITTEE Wednesday, October 17, 2018 12:00 pm AGENDA CALL TO ORDER City Hall Ross Annex, Conference Room 1600 20 Civic Center Plaza, Santa Ana, California Committee Members: Vicente F. Sarmiento, Chair Michele Martinez, Vice Chair Recording Secretary: Yesenia Cruz PUBLIC COMMENTS - Members of the public are allowed three minutes to speak on agenda items or matters within the jurisdiction of the Committee. SPECIAL PRESENTATION Chief of Staff from Congressman Correa's Office AGENDA ITEMS Receive and File Minutes from the Legislative Affairs, Ethics, Transparency & Communications Council Committee Meetings held: A. March 28, 2018, and B. August 15, 2018 2. City Council Meetings Rules and Decorum — (Strategic Plan No. 1 through 7)— Julie Castro -Cardenas, City Manager's Office Receive and File Federal Legislative Updates — (Strategic Plan No. 1 through 7} — Leslie Pollner and Dan Maldonado aIf you need special assistance to participate In this meeting, please contact Michael Ortiz, City ADA Program Coordinator, at (714) 647.5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for accessibility to this meeting. [Americans with Disabilities Act, Title II, 28 CFR 35.102] Santa Ana City Council Miguel A, Pulldo i Michele Martinez I Vicente P. Sarmiento 1 Jose Solorlo I P. eavid Benavides j Juan Villages I Sal Tinaiero Mayor Mayor Pro Tern iWard 1 I Ward 3 ! Ward 4 I Ward 5 I Ward 6 Ward2 vsanmmiomzamaa�a om i :=manem.em�-..�.om oaenemaesmsem..vnn am Jvftwiluu,.pwmi s�•a:+masama-a,,. om i raraamnezm..mo-eM1•am I i I j i City Hall, 20 Civic Center Plaza . P.0. Boz 1988 . Santa Ana, California 92702 Mayor & Council Telephone: 714-647.6900 a Agendaledp tul l s: 714.647-5200 a webslte: www.santaana.ora A. Holland & Knight Memo, Matrix and Funding Priorities List B. Federal Legislative Bills Outcomes and Updates (verbal) 4. Receive and File State Legislative Updates — {Strategic Plan No. 1 through 71 — Casey Elliott and Cori Williams A. Townsend Public Affairs Memo and Matrix B. State Legislative Bills Outcomes and Updates (verbal) C. AB 448 Orange County Housing Finance Trust 5. League of California Cities (verbal) — {Strategic Plan No. 1 through 7} — Tony Cardenas 6. Communications Update (verbal) — {Strategic Plan No. 1 through 7) — Robert Cortez, City Manager's Office ADJOURNMENT— The next Legislative Affairs, Ethics, Transparency and Communications Council Committee meeting will be held on January 23, 2019 at City Hall, Ross Annex Room 1600, 20 Civic Center Plaza, Santa Ana, CA. The complete Strategic Plan document is available at http://www.santa-ana.org/stratenic- planning/. Legislative Affairs, Ethics, Transparency & Communications Council Committee Agenda October 17, 2018 1a5 E -2 CITY OF SANTA ANA SPECIAL MEETING OF THE LEGISLATIVE AFFAIRS, ETHICS, TRANSPARENCY AND COMMUNICATIONS COUNCIL COMMITTEE MINUTES October 17, 2018 An audio recording of this meeting is unavailable due to a system network malfunction. CALLED TO ORDER 12:18 pm by Chair Vicente Sarmiento at the City Hall, Ross Annex, Room 1600. ATTENDANCE Members Present: Chair Vicente F. Sarmiento Vice Chair Michele Martinez Staff Present: Julie Castro -Cardenas; Robert Cortez; Yesenia Cruz; Raul Godinez; Maria Huizar; Also present were Ryder Smith of Trippepi Smith; Casey Elliott, and Corrie Williams from Townsend Public Affairs; Dan Maldonado and Leslie Pollner from Holland & Knight and Tony Cardenas with the League of California Cities. Public Comments • No Comments from the Public SPECIAL PRESENATION • Chief of Staff Laurie Saroff attended on behalf of Congressman Correa to offer their support and assistance to address the homelessness crisis. • Chair Sarmiento thanked Chief Saroff and Claudio Gallegos for taking the time to join the committee and for their support. He asked staff to reach out the offices of other elected representatives, including the Office of Assemblymember Tom Daly and extend an invitation to future Legislative Council Committee meetings. AGENDA ITEMS 1. Receive and File Minutes from the Legislative Affairs, Ethics, Transparency & Communications Council Committee Meetings held: A. March 28, 2018, and B. August 15, 2018 MOTION: Approve minutes. MOTION: Martinez SECOND: Sarmiento VOTE: AYES: Sarmiento, Martinez NOES: None (0) Legislative Affairs, Ethics, Transparency and Communications Council Committee special Meeting Minutes O1oi238 2. City Council Meetings Rules and Decorum — (Strategic Plan No. 1 through 7) — Julie Castro -Cardenas, City Manager's Office Committee members considered the proposed revised City Council Meetings Rules of Decorum Ordinance No. NS 2762 and Resolution No. 2008-010 for approval at the City Council Meeting on November 20, 2018. However, the committee members determined that additional modifications to limit the presiding officer's role need to be incorporated into the ordinance and resolution. Additionally, they asked staff to conduct a review of the public rules and process of engagement. Staff was directed to reevaluate the existing resolution and ordinance with current language and expectations and bring it back at a future Legislative Affairs, Ethics, Transparency and Communications meeting. 3. Receive and File Legislative Updates (Strategic Plan No. 1 through 7) — Leslie Pollner and Dan Maldonado A. Holland & Knight Memo, Matrix and Funding Priorities List — material provides an overview of federal developments that occurred from September -October 2018 that could impact the City, including appropriations, immigration, 5G wireless deployment, and Census 2020. In addition, H&K provided a brief summary of Councilmember Villegas' recent DC visit. B. Federal Legislative Bills Outcomes and Updates (verbal) 4. Review and File State Legislative Updates — (Strategic Plan No. 1 through 7) — Casey Elliott and Cori Williams A. Townsend Pubic Affairs Memo and Matrix — material provides updates on efforts undertaken on behalf of the City during the quarter. This includes TPA working closely with staff to secure funding from the Homelessness Emergency Aid Program (HEAP). TPA also continues to provide updates on issues related to the implementation of the medicinal cannabis framework approved by the Legislature in 2015, as well as the development of adult -use regulations to implement the provisions of Proposition 64. C. State Legislative Bills Outcomes and Updates (verbal) D. AB 448 Orange County Housing Finance Trust — was signed by the Governor 5. League of California Cities (verbal) - (Strategic Plan No.1 through 7) - Tony Cardenas Tony Cardenas reported on bills that reached the desk of Governor Jerry Brown on Sunday September 30. The LOCC submitted 53 total requests, of which 36 were requests for signatures and 17 requests for vetoes. In total, the Governor's decisions matched the League's request approximately 68 percent of the time. The LOCC provided a detailed listing of final action bills. Legislative Affairs, Ethics, Transparency and Communications Council Committee Special Meeting Minutes Oot28 1 �2 �Q{F City officials received an invitation to the LOCC's annual webinar on the new laws approved during 2018 Legislative session. 6. Communications Update (verbal) - {Strategic Plan No.1 through 7) — Robert Cortez, City Manager's Office Deputy City Manager Robert Cortez provided updates on the City's social media analytics, water video campaign, and ongoing communications assessment interviews. COMMITTEE MEMBER COMMENTS Chair Sarmiento thanked Vice -Chair Martinez for all her work on the committee. Vice -Chair Martinez commented on the importance of having representation on SCAG, League of California Cities, NALEO and other boards and committees. She emphasized on the importance of staying engaged, appointing members that are dedicated and willing to commit. FUTURE AGENDA ITEMS • None ADJOURNMENT: The meeting adjourned at 2:08 pm. The next Legislative Affairs, Ethics, Transparency and Communications Council Committee meeting will be at noon on January 23, 2019. :nia Cruz )rding Secretary Manager's Office Legislative Affairs, Ethics, Transparency and Communications Council Committee Special Meeting Minutes O 58 a 3L 13E-6 CITY OF SANTA ANA Youth, Education & Community Services City Council Committee Monday, April 15, 2019 — 5:30 p.m. AGENDA CALL TO ORDER City Hall Ross Annex, Conference Room 1600 20 Civic Center Plaza, Santa Ana, California Committee Members: Councilmembers Villegas (Chairperson), Solorio & Iglesias Staff: Steven Mendoza, Acting City Manager; Lisa Rudloff, Exec. Director PRCSA. Recording Secretary: Ron Ono, Admin Services Manager PLEDGE OF ALLEGIANCE PUBLIC COMMENTS - Members of the public are allowed three minutes to speak on agenda items or matters within the jurisdiction of the Committee. AGENDA ITEMS 1. Approval of the Youth, Education & Community Services Council Committee Minutes of the July 23 2018 meeting RECOMMENDED ACTION: Approve Minutes 2. Annual appointment of Chair and Vice Chair Person RECOMMENDED ACTION: Appointment of Chair and Vice Chair Person on the Youth, Education and Community Services Committee, 3. Verbal Update on various projects RECOMMENDED ACTION: Receive and File 3a. City Wide Volunteer Program (Strategic Plan no. 1.1f) 3b. City's Swimming Pool Project (Strategic Plan no. 2.2a) 3c. 61h and Lacy Ground Breaking Event (Strategic Plan no. 4.4a) aIf you need special assistance to participate in this meeting, Please contact Michael Ortiz, City ADA Program Coordinator, at (714) 647-5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for accessibility to this meeting. [Americans With Disabilities Act, Title 11, 28 CFR 35.102] Santa Ana City Council Miguel A. Pultdo, Juan Villegas, I Vicente SaoNento, ! David Penaloze, ! Jose solorio, ! Vacant i Cecilia Iglesias, Mayor I Mayor Pro Tem. I Words i Ward Ward I Ward I Ward i.m,n�,amsama.ana om I Wards ! vsam�=mom.am.aar rm I orenmmaasa'„a.a�a ago I dsmonmwam>a�am ! ! CnTnmiKTvanla.ana� I i i City Hall, 20 Civic Center Plaza • P.O. Box 1988 • Santa Ana, California 92702 Mayor & Council Telephone: 714-647.6900 • AgenI 3ES7as: 714-647.6520 • Website: www.santa-ana.ora 3d. Youth Sports CPRS Award (Strategic Plan no. 2.2b) 3e. Proposition 68 Park Grant Applications (Strategic Plan no. 4.4a) 3f. Park Security Cameras (Strategic Plan no.1.1j) 4. Santa Anita Park Improvement request (Strategic Plan no. 6.1 g) RECOMMENDED ACTION: Discuss and review project request 5. Public Restrooms at City Parks (Strategic Plan no. 6.2a) RECOMMENDED ACTION: Receive and File 6. Discussion on SAUSD/CITY Joint Policy Items (Strategic Plan no. 2.1 c) RECOMMENDED ACTION: Discuss & Provide Input COMMITTEE MEMBER COMMENTS FUTURE AGENDA ITEMS ADJOURNMENT — The next regular meeting of the Youth, Education & Community Services City Council Committee meeting schedule for Monday June 22, 2019 at 5:30pm City Hal[ Ross Annex Room 1600. aIf you need special assistance to participate in this meeting, please contact Michael Ortiz. City ADA Program Coordinator, at (714) 647-5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for accessibility to this meeting. [Americans with Disabilities Act, Title II, 28 CFR 35.102] Santa Ana City Council Miguel A. Pulido, ' Juan Villegas, I Vicente Sa rniento. 1 David Penaloza. Jose Solorio. I Vacant I Cecilia Iglesias, Mayor Mayor Pro Tern, i Ward Ward Ward 1 Ward i Ward mAamanseea i WardS i Ysann-emorAaama.aoa om i OPenamzamea�na.an,em Jsninnmmaama.ana e,n i eex.aarasna,n NiaevaaFaamaana nm i i i City Hall, 20 Civic Center Plaza • P.O. Box 1988 • Santa Ana, California 92702 Mayor & Council Telephone: 714-647-6900 • Agenda Item Inquiries: 714-647.6520 • Website: www.santa-ana.ora 13E-8 ACTION MINUTES OF THE YOUTH, EDUCATION & COMMUNITY COUNCIL COMMITTEE April 15, 2019 CALL TO ORDER Meeting convened at 5:34 p.m. at Santa Ana City Hall Ross Annex Room 1600: 20 Civic Center Plaza, Santa Ana, California 92702. ATTENDANCE Council Members Present: Mayor Pro Tern Juan Villegas Council Member Jose Solorio (Absent) Council Member Cecilia Iglesias Staff Present: Steven Mendoza, Acting City Manager Lisa Rudloff, Executive Director of PRCSA Ron Ono Administrative Services Manager Jeannie Jurado, Community Services Manager Hiram Uribe, Graphics Designer Steven Pham, Executive Director Human Resources Tanya Knauerhaze, Sr. Human Resources Analyst Daisy Perez Castellanos, Sr. Management Assistant William Galvez, City Engineer Cheryl Eberly, Principal Librarian PLEDGE OF ALLEGIANCE: Led by Mayor Pro Tern Juan Villegas PUBLIC COMMENTS: None AGENDA ITEMS APPROVAL OF YOUTH, EDUCATION & COMMUNITY SERVICES COUNCIL COMMITTEE MINUTES Motion by Villegas, second by Iglesias to approve minutes of July 23, 2018. Minutes approved unanimously. ANNUAL APPOINTMENT OF CHAIR AND VICE -CHAIR PERSON o Mayor Pro Tern Villegas nominated Council Member Iglesias, as the Vice -Chair Person. o Council Member Iglesias accepted the nomination of Vice -Chair Person. o The nomination was approved unanimously. o Mayor Pro Tern Villegas accept the nomination of Chairperson o The nomination was approved unanimously. 13E-9 3. UPDATE ON VARIOUS PROJECTS 3a. City Wide Volunteer Program (Strategic Plan No. 1.1f) o Executive Director of Human Resources Agency Steven Pham and Sr. Human Resources Analyst Tania Knauerhaze provided an update on the City Wide Volunteer Program and answered questions. o Sr. Human Resources Analyst Tania Knauerhaze, provided information on one time -event volunteers and MOU's with Non -Profits for events. o Mayor Pro Tern Villegas requested an update on the number of volunteers denied, as a result of the program. 3b. City's Swimming Pool Project (Strategic Plan no. 2.2a) o Administrative Services Manager Ron Ono, provided an update on the City's pools. In addition, on May 8, 2019 Crown Castle volunteer service event that will be held at Memorial Park that assisted in painting the pool changing rooms and installing plant material in the pool planters. o Executive Director of Parks, Recreation and Community Services Agency Lisa Rudloff, informed the Committee on additional items related to the pool. o Council Member Iglesias, asked if there is a possibility to have concessions and vendors to sell items at the pool. o Mayor Pro Tern Villegas, stated he is happy to hear the pools will be open for a longer period of time this summer. 3c. 61h and Lacy Ground Breaking Event (Strategic Plan no. 4.4a) 0 o Community Services Manager Jeannie Jurado, provided information on the ground breaking event held on Saturday March 30, 2019 where over 150 residents attended the event. 3d. Youth Sports CPRS Award (Strategic Plan no. 2.2b) o Community Services Manager Jeannie Jurado, provided information on the CPRS District 10 Award received from the California Parks and Recreation Society. o Executive Director of Parks, Recreation and Community Services Agency Lisa Rudloff, provided additional information on CPRS. o Mayor Pro Tem Villegas, requested to have this item on a future agenda for City Council. 3e. Proposition 68 Park Grant Applications (Strategic Plan no. 4.4a) o Administrative Services Manager Ron Ono, provided an update on Proposition 68 Park Grant. o The City of Santa Ana will be applying for projects at Standard/McFadden site, Memorial Park and Raitt and Myrtle site. o Council Member Iglesias, inquired about a dog park in Santa Ana. o Executive Director of Parks, Recreation and Community Services Agency Lisa Rudloff, provided information on the upcoming Parks and Master Plan process, regarding dog parks and fields. 13E-10 3f. Park Security Cameras (Strategic Plan no. 1.1j) o Administrative Services Manager Ron Ono, provided information on the security cameras for the following parks: Madison, Windsor, Chepa's, Santa Anita and Jerome. o Council Member Iglesias inquired the reason for the delay at Windsor Village. o Administrative Services Manager Ron Ono, stated the installation of the antenna on Jackson School did not materialize and Siemens is looking at other alternatives to bounce the signal off and antenna at Centennial Sports Lighting pole to City Hall. o Executive Director of Parks, Recreation and Community Services Agency Lisa Rudloff, provided additional information on the cameras situation for Windsor Village. o Council Member Iglesias requested to have a report on the item, at a future Council meeting. 4 SANTA ANITA PARK IMPROVEMENT REQUEST (Strategic Plan No. 6.1g) o Administrative Services Manager Ron Ono, provided information on expansion possibilities for the Community Center that includes synthetic turf and lights for Santa Anita Park. o Mayor Pro Tern Villegas, suggested staff contact the property owners to inquire if there is an interest in selling. o Acting City Manager Steven Mendoza, directed staff to do initial research on acquisition of property. o Council Member Iglesias requested installation of lights between the property line wall. 5. PUBLIC RESTROOMS AT CITY PARKS (Strategic Plan No. 6.2a) o Administrative Services Manager Ron Ono, provided information on the cleaning of public restrooms at City Parks that are cleaned and inspected twice a day. o Council Member Iglesias, requested to see a cleaning schedule of the restrooms and the amount being paid to the contractor for the services. o Council Member Iglesias, inquired the amount of staff needed to provide the highest quality of service to the community. o Executive Director of Parks, Recreation and Community Services Agency Lisa Rudloff, provided information on staffing levels. o Administrative Services Manager Ron Ono, mentioned funding additional lighting in parks has been requested in the budget. o Acting City Manager Steven Mendoza, provided information on past budget policies and recommendations. o Council Member Iglesias, requested information on what it will take to make it fully operational, as it was back in the 1980's. o Mayor Pro Tern Villegas, suggested Measure X funds be used to renovate restrooms at the parks. o Council Member Iglesias, requested an update of the RFP for security for the City Council meeting. 13E-11 6. DISCUSSION ON SAUSD/CITY JOINT POLICY ITEMS (Strategic Plan No. 2.1C) Administrative Services Manager Ron Ono, mentioned receiving a request from the SAUSD to place Godinez High School on the agenda. Council Member Iglesias, requested to include the following items on the agenda: Centennial Park Joint Use, Civic Center Act and Centennial Security Issues. Mayor Pro Tem Villegas, requested the following item be placed on the agenda: Centennial Park Security. COMMITTEE MEMBER COMMENTS None FUTURE AGENDA ITEMS o Garden Grove Unified School District -Collaboration on Usage of Facilities o Santa Ana College -Security ADJOURMENT — The next regular meeting of the Youth, Education, & Community Services City Council Committee meeting is scheduled for Monday July 15, 2019 at 5:30pm at City Hall Ross Annex Room 1600. Bill Sandoval, Recording Secretary 13E-12 CITY OF SANTA ANA 0 COUNCIL COMMITTEE SPECIAL MEETING AGENDA ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY COMMITTEE JUNE 10, 2019 5:00 PM CALL TO ORDER City Hall Ross Annex, Conference Room 1600 20 Civic Center Plaza, Santa Ana, California Committee Members: Jose Solorio, Chair Cecilia Iglesias, Vice -Chair David Penaloza PLEDGE OF ALLEGIANCE PUBLIC COMMENTS - Members of the public are allowed three minutes to speak on agenda items or matters within the jurisdiction of the Committee. AGENDA ITEMS 1. Approval of Minutes of May 13, 2019 Regular Meeting {Strategic Plan No. 5, 11 2. Discuss Proposed FY 19-20 Budget {Strategic Plan No. 4, 1 & 3} (Kathryn Downs, FMSA) 3. Discuss and Propose Allocation of Measure X Funds for Consideration by Full City Council (Strategic Plan No. 4, 1} (Councilmember Solorio) Santa Ana City Council Miguel A. Pulldo Juan YOegas Vicente Samuenta Dayid Penalsza Jose salons Vacant Cecilia Iglesias Mayor Mayor Pro Tem, Ward 5 Wardi Ward2 Wartl3 Wsrcl4 Warn6 moulidoAsanta-ana.ors rileaaspsantaana.orn vs srnrientoOsanla-aoaars dnenaloze(msantaanao,o 'solorioAsanla-ena.orn cialeaasftsantaana.ors City Hall, 20 Civic Center Plaza . P.O. Box 1988 . Santa Ana, California 92702 Mayor & Council Telephone: 714-647.6900 • Agenda Item Inquiries: 714-6475360 a Website: www.santaana.oro 13E-13 STAFF COMMENTS ADJOURNMENT — The next regular meeting is scheduled for Monday, August 12, 2019 at 5:00 PM If you need special assistance to participate in this meeting, please contact Michael Ortiz, City ADA Program Coordinator, at (714) 647-5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for accessibility to this meeting. [Americans with Disabilities Act, Title 11, 28 CFR 35.102] The complete Strategic Plan document is available at: http://www.santa-ana.ora/strateaic-planning/ ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET 2 JUNE 10, 2019 AND TECHNOLOGY AGENDA 13E-14 CITY OF SANTA ANA CITY COUNCIL COMMITTEE ON ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY SPECIAL MEETING MINUTES CALL TO ORDER: ATTENDANCE: MEMBERS ABSENT: STAFF PRESENT: PLEDGE OF ALLEGIANCE PUBLIC COMMENTS JUNE 10, 2019 City Hall 20 Civic Center Plaza, Room 1600 Santa Ana, CA 5:11 PM Council Committee members: Jose Solorio, Chair Cecilia Iglesias, Vice Chair David Penaloza (left at 6:50 PM) None Kristine Ridge, City Manager Steven A. Mendoza, CDA Executive Director Jack Ciulla, IT Chief Technology Innovations Officer Fuad Sweiss, PWA Executive Director Lisa Rudloff, PRCSA Executive Director David Valentin, Chief of Police Kathryn Downs, FMSA Executive Director Sergio Vidal, FMSA Assistant Director Daisy Perez, CMO Senior Management Assistant Bianca L. Zurita, CDA Recording Secretary Council Committee Chair Solorio Peter Katz — Spoke in support of the modification to the Police Department Budget to establish a Justice Center. AGENDA DISCUSSION ITEMS 1. Approval of Minutes of May 13, 2019 Regular Meeting (Strategic Plan No. 5, 1) Motion passed unanimously. 2. Discuss Proposed FY 19-20 Budget (Strategic Plan No. 4, 1 & 3) (Kathryn Downs, FMSA) The City Manager indicated there will be no Special City Council meeting to consider introduction of the Budget Ordinance, but it will be presented at the June 18th City Council meeting. June 10, 2019 1 Economic Development, Infrastructure, Budget & Technology Minutes 13E-15 Kathryn Downs, Executive Director of Finance Department provided a draft Budget presentation with adjustments based on City Council recommendations during the June 4, 2019 meeting. Council Committee Member Penaloza spoke regarding the Teen Space and youth programs how they should not face budget cuts and expressed his concerns toward new technology. Staff answered various questions from Committee Members Chair Solorio suggested staff add a table to the budget presentation summarizing the proposed spending of Measure X revenue. Vice -Chair Iglesias would like to more information regarding the funding of youth programs. Vice -Chair Iglesias requested staff provide a chart to the entire City Council showing the impact to the Police Department of not having a sworn officer patrolling the streets. Chair Solorio would like to form an ad -hoc committee to work with City Manager and Director of Finance to develop recommended changes to the draft budget for presentation to the entire City Council. Vice -Chair Iglesias requested staff provide the estimated cost of operating a Police substation at the next City Council meeting. Vice -Chair Iglesias requested information of the originally proposed Fiscal Year 18/19 budget proposed by the departments, and the current version of the draft budget to help her understand the proposed FY 19/20 budget. She also requested detailed information from Police Department's overtime expenditure by department. Chair Solorio requested status of negotiations with the bargaining units. 3. Discuss and Propose Allocation of Measure X Funds for Consideration by Full City Council (Strategic Plan No. 4, 1) (Councilmember Solorio) Chair Solorio would like to form an ad -hoc committee to work with City Manager and Budget staff to continue refining the City's budget. Chair Solorio provided a list of how he would like the Measure X funds be utilized. Vice Chair Iglesias provided a list of programs she is interested in funding. ITEMS MOVED TO NEXT COMMITTEE MEETING — None June 10, 2019 1 Economic Development, Infrastructure, Budget & Technology Minutes 13E-16 STAFF MEMBER COMMENTS — None COMMITTEE MEMBER COMMENTS — None NEXT MEETING: Monday, August 12, 2019 Adjournment —7:55 PM Bianca L. Zurita Recording Secretary, CDA June 10, 2019 1 Economic Development, Infrastructure, Budget & Technology Minutes 13E-17 13E-18 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: QUARTERLY REPORT OF CONTRACTS UP TO $50,000 FOR NON-PUBLIC WORKS AND UP TO $250,000 FOR PUBLIC WORKS AUTHORIZED BY THE CITY MANAGER AS PERMITTED BY CHARTER SECTION 421 (STRATEGIC PLAN NO. 4, 1) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Receive and file Quarterly Report of Contracts entered into between April 1, 2019 to June 30, 2019 valued at up to $50,000 for non-public works contracts and agreements and up to $250,000 for public works contracts and agreements. DISCUSSION Section 421 of the Charter requires the City Manager to submit a quarterly report to the City Council including all contracts approved and executed under her/his authority for informational purposes. The quarterly report is required to include the names of the contractors and the amounts of each contract, and a brief description. On March 19, 2019, City Council approved an ordinance amending the City Manager's contracting authority to enter into non-public works contracts and agreements up to $50,000 and public works contracts and agreements up to $250,000. The new limits officially became effective on April 17, 2019. Exhibit 1 is a listing of all purchase orders and agreements entered into April 1, 2019 to April 17, 2019, valued at amounts between $500 and $25,000 and April 18, 2019 to June 30, 2019, valued at amounts between $500 and $50,000 for non-public works contracts. Exhibit 1 also includes purchase orders and agreements between $500 and $250,000 for public works contracts and agreements, as provided by Public Works and Clerk of the Council's Office. Contracts and service agreements valued at greater than $50,000 for non-public works and greater than $250,000 for public works continue to require approval by City Council. 19C-1 Quarterly Report of Contracts August 20, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #4 — City Financial Stability, Objective #1 (maintain a stable, efficient and transparent financial environment). FISCAL IMPACT There is no fiscal impact associated with this action. 4vn� Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibit: 1. 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DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1n Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER In 1995, the State of California enacted legislation revising the reporting requirements relative to investment of funds by governmental agencies. California Code Section 53646 (b) states that if a quarterly report is rendered to the legislative body, the quarterly report shall be submitted within 30 days following the end of the quarter covered by the report. In an effort to meet the statutory requirement, Finance and Management Services Agency submits the report via email for review and distribution to the City Council in advance. The report was emailed for distribution on July 26, 2019. The legislation specifies that this quarterly report contain the seven major elements listed below: 1. Type of investments 2. Date of maturity 3. Par and dollar amounts invested in each security 4. Weighted average maturity of the investments 5. Market value as of the date of the report 6. Source of the market value information 7. Any funds, investments or programs, including loans, under the management of contracted parties. These specifications include a statement outlining the ability of the City to meet the budgeted expenditures for the subsequent six months be submitted to the City Council on a quarterly basis. Staff performs an end -of -month expenditure analysis to comply with the expenditure requirement and a statement confirming the ability to meet this requirement in the monthly and quarter -ending Treasurer's Report. The information is in compliance with State law and the City's Investment Policy. 19D-1 Quarterly Report of Investments August 20, 2019 Page 2 The attached Treasurer's Report (Exhibit 1) accurately reflects all pooled investments held on behalf of the City as of June 30, 2019. The following two tables represent: (1) percentage limits set by the City's Investment Policy and State Law and shows respective City investment portfolio investment types, amounts, and percentages; and (2) the restricted cash balance as of June 30, 2019. Type of investment Amount Invested $ Portfolio % COSA Policy Limits % State Law Limits % Certificate of Deposit (CD) $2,974,000.00 1.03% 30% 30% Federal Farm Credit Bank (FFCB) $45,385,610.25 15.74% None None Federal Home Loan Bank (FHLB) $75,014,485.45 26.01% None None Federal Home Loan Mortgage Corp. (FHLMC) $65,561,163.60 22.74% None None Federal National Mortgage Association (FNMA) $34,938,360.00 12.12% None None Local Agency Investment Fund (LAIF) $64,487,437.48 22.36% None None sub -Total $288,361,056.78 100% Cash $47,388,365.50 Total $335,749,422.28 Restricted Cash $ In Restricted Cash t, $4,452,557.31 Total $4,452,557.31 t Restricted cash is held by a Trustee, Bank of New York Mellon, and is segregated from cash used for daily operations. The following City investment portfolio graph represents percentages within the respective investment types as of June 30, 2019. CO City of Santa Ana Investment Portfolio Asset Allocation June 30, 2019 p �dlN of apU Iml •F�"F.—h ft WM1(FF ) •Ftl N le-!Nt") •Ftl N .klN Cpp. IFNIMCI •FpJml N.tl lMOR AUp W (FNMA) L AWq MpFOMt t FUN IUNI The following three tables represent, as of June 30, 2019: (1) the aggregate Effective Rate of Return on the City's investment portfolio, both Month to Date (MTD) and year to date (YTD); (2) 19 D-2 Quarterly Report of Investments August 20, 2019 Page 3 the aggregate Average Market Yield to Date (AMTD); and (3) the breakdown of AMTD by investment type. Aggregate Effective Rate of Return Month to Date (MTD) 1.79% Year to Date (YTD) 1.72% Aggregate Average Market Yield To Date Average Month To Date (AMTD) 1 2.076% AMTD Breakdown by Type of Investment Par Value of Investments Yield to Maturity % of Portfolio Average Market Yield to Date Certificate of Deposits $2,974,000.00 1.850% 1.03% 0.019% LAIF $64,487,437.48 2.428% 22.36% 0.543% Federal Agency Securities $220,899,619.30 1.976% 76.61% 1.514% Total $288,361,056.78 2.076% 1 100.00% 2.076% STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #1 (Maintain a stable, efficient and transparent financial environment), Strategy D (Develop a fiscal health analysis tool that informs a department of its financial position in order to assist in its decision making process). FISCAL IMPACT There is no fiscal impact associated with this action. �rcltk� 'y VX-V " Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibit: 1. Treasurer's Report AG 19 D-3 19 D-4 1§D-5 �g � o_mm m jQo womr gs?ao?.SH 9a o� f Yo $qj gg qq m ccmooev��v��� N N N N N N N N N M N N N x �Rass�gom;,g� g N ^ m tp y� � N �V N N N IYY tYV ry IY`I N N N P C 0 � y E w Leo a 8888888$8888 S �+� mo d rr�Nmmmmm�mar a v� N O.O m c z'w O U 00 VO b_11-2, �LL ? wccrN ^ e � �cyc�c���R� _ w w Nm v QQ pp gg O O yy�� O w Rl m N� N $ f6 �ai m $*c, Sn, LS i'o mv,Nmvrr l� ^ � N .-.. .. 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S� s a a 6 6 G G 6 O S O O U 7 U Z �0a � 3mW D_R N Amyy YW1 z< ZQ == ja rUp L t Q 9 vg� V 1 Wa W g W B W qO Y£ ^ 'n � bwm o3Qm m � jCtnS� a� f� � 19D-10 ■` r! | � k� ; - §§�;;■ � �§ !�•#K# If -- §! k ■ ;`�!�# # ; 27� !7 Bk\ §• � � \ \��|| | k % ` § 1§D.11 19D-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AND AUTHORIZE THE MAYOR TO SIGN THE BIENNIAL UPDATE TO THE REGIONAL AND LOCAL WORKFORCE PLAN FOR FISCAL YEARS 2017-2021 (STRATEGIC PLAN NO 2,4) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1°t Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve the biennial update to the Regional and Local Workforce Plan for Program Years 2017 through 2021 and authorize the Mayor, City Manager and Clerk of the Council to sign all documents necessary for submission to the California Workforce Development Board and State of California Employment Development Department. WORKFORCE DEVELOPMENT BOARD ACTION At its Regular Meeting of January 17, 2019, by a vote of 14:0 (Elliott, Rose, Ruiz, absent), the Workforce Development Board recommended approval. DISCUSSION The Workforce Innovation and Opportunity Act (WIOA) Section 106 requires local boards and chief elected officials within each designated region to prepare and submit a single Regional Plan that includes a description of the activities that incorporates a Local Plan. Under WIOA, a biennial update of regional and local plans is required in order to ensure plans remain current and account for `changes in labor market and economic conditions or in other factors affecting the implementation of the local plan" (29 U.S. Code § 3123). The California Workforce Development Board (State Board) has also made changes to the State Plan which required that Local Boards update their plans to keep them consistent with the policy direction of the State Plan. Pursuant to the State Plan, modifications submitted to the U.S. Department of Labor in the spring of 2018 and approved on June 11, 2018, the State Board issued Directive WDB 18-01 which provided guidance to Local Boards on the requirements associated with local and regional planning modifications. 19E-1 Biennial Modification to Regional and Unified Local Workforce Plan for PY 2017-2021 August 20, 2019 Page 2 The State Plan modifications required the local Workforce Development Board to update its local plan in the following areas: • Workforce Corrections Partnership with local probation, parole and inmates • CalFresh and Human Services Agencies • California Department of Child Support Services • Department of Rehabilitation - Competitive Integrated Employment • Services to English Language Learners, Foreign Born and Refugees • Multi Craft Core Curriculum Pre -Apprenticeship Partnerships The modifications to the OC Regional and Local Plan has been developed with collaborative input of key regional partners and stakeholders (Exhibit 1). The engagement of partners has been a priority in an effort to align workforce, education and businesses to foster comprehensive public systems that are responsive to demand -driven needs in the region. The primary purpose of the Local Plan and partnerships are to facilitate access to workforce services at the local level. As mandated by the California Workforce Development Board, the Local Plan goals are in alignment with both the California State Plan and the OC Regional Plan. In accordance with the Workforce Innovation and Opportunity Act Sections 107 and 108, Orange County Development Board published a public notice and posted the plans for a 30-day public comment period which concluded in February 2019. No substantial negative written comments were received on the Regional or Local Plan. STRATEGIC PLAN ALIGNMENT Approval assists the City in meeting Goal #2, Objective #4 (Partner with groups and organization to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Executive Director Community Development Agency Exhibit: 1. Biennial Modification Regional and Unified Local Plan PY 2017-2021 19E-2 https: c Exhibit 1 Is available at: drive.jzoogle.com file d/1WGd1f UN5LOt-oZulcXtUSE 13jaDa C/view 19E-3 19E-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: RECEIVE AND FILE QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES APRIL 2019 — JUNE 2019 (STRATEGIC PLAN NO. 5, 3C) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 18t Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of April 2019 — June 2019. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its regular meeting on July 24, 2019, by a vote of 7:0 (Urzua and Garcia absent) the Community Redevelopment and Housing Commission approved the recommended action. DISCUSSION This report for the quarter ending on June 30, 2019 provides statistics for all of the affordable housing projects and activities for the Housing Division. The report is divided into four sections: Loan Activity, Loan Portfolio Management and Monitoring, Affordable Housing Funds and Commitments, and Development Projects. Loan Activity Applications The Housing Division offers several different programs including down payment assistance for first-time homebuyers and rehabilitation loans for mobile homes, single-family, multi -family, and historic homes. Inquiries are received from the public and applications are accepted for these programs on a continual basis. Table 1 shows the number of inquiries, applications sent out, received and approved by type for the quarter and for the total fiscal year. 19F-1 Quarterly Report for Housing Division August 20, 2019 Page 2 Table 1: Applications Sent Out, Received & Approved Program Inquiries Applications Sent Out Applications Received Applications A proved Q4 Total FY Q4 Total FY Q4 Total FY Q4 Total FY Single -Family Rehabilitation 0 70 1 94 3 12 0 1 Mobile Home Rehabilitation 0 7 0 5 1 2 0 1 Multi -Family Rehabilitation 0 1 0 0 0 0 0 0 Historic Home Restoration 0 1 0 1 0 0 0 0 Homeownership / DPAP 0 54 71 246 1 10 0 4 The number of applications received is typically lower than the number of applications sent out in any given period due to the stringent program guidelines for eligibility regulated by the federal government, which makes it difficult for most applicants to qualify. Currently, due to the retirement of the City's Senior Residential Construction Specialist in December 2018 and the promotion of the Residential Construction Specialist into the position, the Housing Division does not have adequate staffing to implement the Single -Family and Mobile Home Rehabilitation Program. Any applications received have been put on hold. The interview process for the vacant Residential Construction Specialist position has been completed and a conditional offer of employment has been extended. It is anticipated that the position will be filled this quarter. Rehabilitation Loan Underwriting and Approval Progress During this quarter, zero (0) home rehabilitation loans were funded due to the program being on hold. Rehabilitation Program Construction Progress During this phase, homeowners receiving rehabilitation loans are guided through an open selection of contractors to complete the work on their homes. Each homeowner is given a list of contractors that have been screened by staff for license and insurance requirements. However, homeowners are allowed to select any contractor that meets these same requirements. Staff assists the homeowners with the evaluation of bids and selection of a contractor. Staff also monitors the construction work, approves payments to contractors, and tracks expenditures to ensure compliance with the loan agreement and program guidelines. During this quarter, the rehabilitation of two (2) single-family homes and two (2) mobile homes was completed. Down Payment Assistance Loan Program Progress For the Down Payment Assistance Loan Program, staff evaluates applicant eligibility and oversees underwriting to ensure compliance with program guidelines and requirements established by the U.S. Department of Housing and Urban Development (HUD). Applicants must meet established income requirements, complete an eight -hour pre -purchase counseling program from a HUD -approved housing counseling agency, be pre -qualified for a first mortgage and have a minimum of three percent of the purchase price from their own savings. On March 6, 2018, City Council approved an update to the Down Payment Assistance Loan Program increasing the loan amount to $80,000 for low-income households and approving the use of. the Inclusionary Housing Fund to offer down payment assistance of up to $40,000 for moderate -income households. The 19F-2 Quarterly Report for Housing Division August 20, 2019 Page 3 updated program requires the buyer must be a current resident of Santa Ana and/or work in Santa Ana at least 32 hours per week (except U.S Military Veterans). Additionally, the property needs to be in good condition and pass an inspection. During this quarter, staff conducted one (1) down payment assistance workshop in which a total of 70 people attended. Univision also featured the City of Santa Ana's Down Payment Assistant Program in a news report in June. In addition, one (1) inclusionary housing purchase application at City Ventures was received and is still undergoing review. Loan Portfolio Management & Monitoring The Housing Division is responsible for managing the residential loan portfolio which includes all of the loans entered into by the City and Housing Authority acting as the Housing Successor Agency. As of the end of this quarter, the principal balance was $136,856,258. This is comprised of 415 loans of which 391 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $122,352 in payments of principal and interest during this quarter. Table 2: Portfolio Revenue Funding Source HOME CDBG Redevelopment NSP CalHOME Loan Payoffs $0 $0 $18,046 $6,144 $0 Residual Receipts Payments $11,957 $6,663 $35,839 $4,892 $0 Amortized Loan Payments $3,870 $5,583 $19,360 $0 $0 Total For Q3 $15,827 $12,246 $73,245 $11,036 $0 Monitoring As part of the requirements for these funds, staff must monitor the owner -occupancy of single- family homes that have received loans, and the building code compliance of units in rental projects with long-term affordability covenants. During this quarter, 76 owner -occupancy recertification letters were mailed and 52 were returned and processed. Staff also conducted building code compliance inspections for 125 units on fourteen (14) properties. Regulations require that only a sample of units be selected for inspection. Staff also inspects the grounds and common areas such as laundry rooms to ensure they also meet municipal code requirements. The grounds, common areas and all of the inspected units were found to be in compliance at the time of initial inspection. Available Funds and Land Assets for Affordable Housing Development Projects The City of Santa Ana and the Housing Authority acting as the Housing Successor Agency manages multiple sources of local, state and federal funds to promote and facilitate the development of affordable housing as well as land assets held by the Housing Authority. Exhibit 1 provides a summary of the funds available as of the end of May 31, 2019. The reconciliation of available funds as of the end of the fourth quarter is not yet complete as of the date of this report. Exhibit 2 provides a summary of available land assets. 19F-3 Quarterly Report for Housing Division August 20, 2019 Page 4 Housing Opportunity Ordinance On -Site Development: Since 2011, a total of 33 units have been developed on -site as a result of the Ordinance, including 23 ownership units for -sale and 10 rental units: Units Built On -Site Ownership Rental TOTAL 23 10 33 In -Lieu Fees Generated: All in -lieu fees, penalties and other monies collected pursuant to the Housing Opportunity Ordinance, including interest, are deposited into the Inclusionary Housing Fund. Since inception, the Inclusionary Housing Fund has generated $17,872,871 to be used for the development of housing affordable to low and moderate -income households, with a reasonable amount spent on administrative or related expenses associated with the administration of the Housing Opportunity Ordinance. These fees were generated from a total of 9 projects that opted to pay the in -lieu fee instead of building units on -site. If those 9 projects had instead built the inclusionary housing units on -site, a total of 393 low-income units or 263 very low-income units would have been created. By comparison, there were 2,589 market -rate units produced or are under construction. Affordable Housing Units under Construction /Pre -Construction with In -Lieu Fees: A total of 203 units are under construction / pre -construction with an investment of in -lieu fees generated. This includes a $4,775,000 loan of in -lieu fees to develop 57 units of affordable housing at the Santa Ana Arts Collective; a $1.3 million loan of in -lieu fees to develop 51 units of affordable housing at the Tiny Tim Plaza project; a pre -loan commitment of $3,170,547 to develop 93 units of affordable housing at the Legacy Square project; and a commitment of $231,494 to develop two affordable homeownership units by Habitat for Humanity at 416 Vance Street and 826 N. Lacy Street. Units Under Construction / Pre -Construction with In -Lieu Fees Project # of Units Santa Ana Arts Collective 57 Santa Ana United Methodist Church "Legacy Square" 93 Tiny Tim Plaza 51 416 Vance Street & 826 N. Lacy Street 2 TOTAL 203 In addition, $3,131,700 of in -lieu fees was committed by City Council on September 14, 2018 to create 200 emergency shelter beds at the Link interim emergency shelter. This report reflects the status of funds and projects for the period ending June 30, 2019. 19F-4 Quarterly Report for Housing Division August 20, 2019 Page 5 Request for Proposals — RFP #18-056 and RFP #19-063 for Affordable Housing Development The process for the prior year RFP for Affordable Housing Development (#18-056) has been completed. At the May 22, 2019 Community Redevelopment and Housing Commission meeting, the Commission recommended the approval of a pre -loan commitment and 99-year ground -lease with the Related Companies of California for the development of the Housing Authority land asset at 1126 & 1146 E. Washington Avenue. Following approval by the Housing Commission, the City Council / Housing Authority approved the project award on July 2, 2019. The County Board of Supervisors approved a ground lease for the County's adjacent parcel of land on July 16, 2019. The City of Santa Ana and the Housing Authority of the City of Santa Ana issued a new Request for Proposals (RFP # 19-063) on July 8, 2019 for the development of affordable housing in the City. Proposed developments may be for acquisition and/or rehabilitation of eligible properties for rental or transitional housing; acquisition and conversion of non-residential property to multifamily rental units; and/or new construction of housing units for rental housing. One land asset owned by the Housing Authority of the City of Santa Ana is also available for development under the RFP. Additional information regarding the RFP is available on the City of Santa Ana's website and PlanetBids. PROJECTS UNDER DEVELOPMENT There are five (5) affordable housing developments under construction and five (5) affordable housing projects in pre -development. Below are brief summaries for the ten (10) projects under development. Exhibit 3 provides a development timeline for the larger development projects. Projects under Construction First Street Apartments (1440 E. First Street) • Developer: AMCAL Multi -Housing, LLC. • Description: Demolition and new construction of an affordable multifamily apartment complex consisting of 68 units of rental housing serving very -low and extremely -low income families, and 1 manager's unit. • City Funds: Housing Successor Agency ($8,522,740) • Update: Presently the contractor is working on the interior building wall finishes, cabinets, finish plumbing and electrical, and exterior landscaping. Construction is approximately 75% complete and is anticipated to be complete by the end of September 2019. Applications were made available July 15 and all applications received by August 5 will be entered into a random drawing. A Nixie was issued by the City on July 15 to market the opening of the project's application period. City staff will audit the waiting list to verify the local preference for Santa Ana residents is implemented prior to the drawing. 19F-5 Quarterly Report for Housing Division August 20, 2019 Page 6 Santa Ana Arts Collective (1666 N. Main Street) • Developer: Meta Housing Corporation • Description: Acquisition, adaptive reuse and new construction project comprised of 57 affordable rental units designated for professional artists of all disciplines, and 1 manager's unit. Permanent supportive housing for 15 units will be funded by MHSA/SNHP funds from the County of Orange. • City Funds: Inclusionary Housing ($4,775,000), HOME Investment Partnership Program (HOME) ($2,627,631), Community Development Block Grant (CDBG) ($500,000) • Update: The contractor is currently engaged in rough top -out plumbing, mechanical, electrical installation and production drywall. Construction is 65% complete and anticipated to be complete at the end of October 2019 with occupancy expected in November 2019. The marketing timeline has been adjusted accordingly since tenant eligibility documentation must be dated within 120 days of occupancy. The four educational sessions to inform artists on how to apply for housing are scheduled for July and August, and the applications will be due in September through October. There are currently 339 applicants on the list of interested parties. City staff has reviewed their process for implementing Santa Ana's local preference and will audit the waiting list to verify the local preference for Santa Ana residents is properly implemented. Santa Ana Veterans Village (3312 W. First Street) • Developer: Jamboree Housing Corporation with Step Up on Second • Description: New construction of an affordable multifamily apartment complex consisting of 75 units of permanent supportive housing with wrap -around supportive services for HUD -Veterans Affairs Supportive Housing (VASH) eligible homeless veterans and 1 manager's unit. • City Funds: Seventy-five (75) HUD-VASH Project -Based Vouchers, HOME-CHDO ($352,963) • Update: All building foundations are in place. Rough framing and plumbing are in progress. The project is approximately 16% complete and remains on the targeted schedule. The estimated completion date is January 2020. Aqua Housing (317 E. 17th Street) • Developer: Community Development Partners (CDP) with Mercy House • Description: Acquisition, demolition and new construction of a former motel yielding 56 units of affordable permanent supportive housing with wrap -around supportive services for chronically homeless individuals and 1 manager's unit. 28 of the 56 units will be funded by MHSA/SNHP funds from the County of Orange. • City Funds: Fifty-six (56) Project -Based Vouchers (PBVs) • Update: The developer closed on their financing in April. A ground -breaking ceremony will be held on July 22, 2019. The contractor has commenced with the demolition of the existing motel building and site preparations. 19F-6 Quarterly Report for Housing Division August 20, 2019 Page 7 Tiny Tim Plaza (2223 West 5fh Street) • Developer: Community Development Partners • Description: New construction of an affordable multifamily apartment complex consisting of 50 units of rental housing serving very -low and extremely -low income families, and 1 manager's unit. • City Funds: Inclusionary Housing ($1,300,000), Housing Successor Agency ($4,700,000) • Update: City Council approved the Loan Documents for the project on April 16, 2019. Following this approval, CDP closed on their financing on May 2. A ground breaking ceremony is scheduled for July 24, 2019. The contractor has commenced with the demolition of the existing buildings and site preparations. Projects in Pre -Development Francis Xavier (801, 809, 809 % East Santa Ana Boulevard) • Developer: HomeAid Orange County, Inc. and Mercy House • Description: New construction of an affordable multifamily apartment complex consisting of 16 units of permanent supportive housing, and 1 manager's unit. • City Funds: Housing Successor Agency ($1,069,947), three (3) HUD-VASH PBVs, 99- year ground lease agreement for 801 E. Santa Ana Blvd. (Appraised Value as of Oct 25, 2018: $788,000) • Update: The developer has revised their plans to increase the number of units from 12 to 17, which includes one market rate manager's unit and four additional affordable units. The level of affordability is still to be determined pending a financial analysis. The project was awarded $3,382,388 in No Place Like Home (NPLH) funds in partnership with the County of Orange. The developer is preparing to submit their development application to the City in August for site plan review. Public outreach will begin after the formal submittal. Habitat for Humanity (416 Vance Street & 826 N. Lacy Street) • Developer: Habitat for Humanity of Orange County • Description: New construction of two single-family detached homes for homeownership serving households up to 120% AMI. • City Funds: Inclusionary Housing ($231,494) and 99-year ground lease agreement for 416 Vance Street and 826 N. Lacy Street (Appraised Value as of Oct 25, 2018: $578,000) • Update: The developer is pursuing an opportunity to increase density on the project by providing one additional single-family detached home on the site for a total of three homes instead of two. North Harbor Village (1108 N. Harbor) • Developer: Jamboree Housing • Description: New construction of a 100% affordable multifamily apartment complex consisting of 89 permanent supportive housing studio units for homeless veterans. • City Funds: Eight -nine (89) HUD-VASH PBVs and CDBG ($1,687,047) 19F-7 Quarterly Report for Housing Division August 20, 2019 Page 8 • Update: The project received an Affordable Housing Program award of $890,000 from the Federal Home Loan Bank of San Francisco on June 26. Due to not receiving other expected sources of financing on the project, the developer was unable to apply for the second round 9% low-income housing tax credits due on July 1. Developer is pursuing an alternative financing scenario by applying for the Multifamily Housing Program (MHP) and/or Veterans Housing and Homelessness Prevention (VHHP) Program funds which are due in August and October respectively, in combination with 4% tax credits at a later date. Legacy Square (609 North Spurgeon Street) • Developer: National Community Renaissance and Mercy House • Description: New construction of a 100% affordable multifamily apartment complex consisting of 92 units of rental housing and 1 manager's unit. All units will be affordable to households earning less than 60% AM] of which 33 units will be set -aside for permanent supportive housing. • City Funds: Inclusionary Housing ($3,170,547) and Eight (8) HUD-VASH PBVs • Update: The project was not awarded $20 million in Affordable Housing Sustainable Communities (AHSC) funding it had been seeking due to extraordinary competition during this last AHSC round. Developer is pursuing an alternative financing scenario by applying for Multifamily Housing Program (MHP) funds on August 20. However, the project was awarded a total of $6,013,134 for sixteen (16) No Place Like Home (NPLH) units including $3,135,262 for capital and $2,887,872 for the capitalized operating subsidy reserve. The NPLH funding will provide additional leverage for a competitive MHP application. STRATEGIC PLAN ALIGNMENT The activities covered by this report allow the City to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Executive Director Community Development Agency Exhibits: 1. Available Funds for Affordable Housing Development Projects 2. Available Land Assets for Affordable Housing Development 3. Project Timelines 19F-8 EXHIBIT 1 Exhibit 1 Available Funds for Affordable Housing Development Projects As of May 31, 2019 Housing Successor Agency (Housing Authority) $1,614,876 Cash on Hand ($85,227) First Street Apartments Loan' ($126,134) First Street Apartments Project Costs ($1,069,947) Frances Xavier Residence Project Pre -Commitment Loan 2 ($250,000) Administrative Costs Allowance 3 $83,568 Available Funds Inclusionary Housing Funds $8,810,994 Cash on Hand ($343,711) Santa Ana Arts Collective Project Costs 4 ($320,000) Down Payment Assistance Program 5 ($761,806) Interim Emergency Homeless Shelter Agreement 6 ($3,170,547) Legacy Square Project Pre -Commitment Loan 7 ($231,494) Lacy Street Project Pre -Commitment Loan 5 ($61,045) Tiny Tim Plaza Project Costs 9 ($629,605) Administrative Costs Allowance (CDA/PBA) $3,292,785 Available Funds 10 HOME Program $3,360,180 Funds to Drawdown $3,360,180 Available Funds to Drawdown CDBG Program (Acquisition/Rehabilitation Projects Only) $1,687,047 Funds to Drawdown ($1,687,047) North Harbor Village Project Pre -Commitment Loan 5 $0 Available Funds to Drawdown NSP Program (Abandoned, Foreclosed or Vacant Properties Only) $1,324,168 Funds to Drawdown ($330,982) Administrative Costs Allowance $993,186 Available Funds to Drawdown Rental Rehabilitation Grant Program $381,923 Cash on Hand" $381,923 Available Funds $8,111,643 Total Available Funds ' Approved by Housthg Authority m January 16.2018. 90%of ben paid on March 13. 2018; 10% remaining Who paid upon completion of comtmction. ' Approved by Housing Authority on January 15.2019. ° The Housing Successor Agency relies on available cash to fund the moniti and compliance functions related to Me former Redevelopment Agencys housing bans. ° peeled mats ony,$4.8M In bans approved by City Council paid on July 26,2017. ° $400,000 originally approved by City Council on March 6, 2018. Two loans paid through end of March 2019. ° Approved by City Council on September 18,2018. Agreement wi9M Mercy House Living Centers. Inc. Only Orsl year commitment reflected! here. ' Approvetl by Cry Ccum, W..sing Authority on January 15, 2019. ° Approved by City CounclMouang Authority on March 5, 2019, ° Ned msb only $6.OM In loans appeared! by City CwncJMousing Authority and paid on May 2. 2019. 10 $2.428,300 of the amount may be neededfor the second year commitment of the LWK Shelter, if other anticipated revenue sources are not avallable. Old no,monlacoma available afar dose outof progra.Wm HUD. 19F-9 19F-10 EXHIBIT 2 AVAILABLE LAND ASSETS FOR AFFORDABLE HOUSING DEVELOPMENT (1) 302 E. Twenty -Second Street a. APN:003-122-25 b. Lot Size: 27,817sf c. Current Zoning: R1 Single -Family Residence, which allows one house per lot. d. Parcel was acquired 10/30/2002 using Low and Moderate Income Housing Asset Fund - 20% Set Aside. e. Previous Use: Purchased from Cal Trans. It was a remnant parcel from the freeway widening project. The site was vacant and undeveloped at the time it was acquired. f. General Plan: Low Density Residential, which allows single-family residences and ancillary uses. g. Maximum du/ac: Seven units per acre. h. Site Condition / Environmental Conditions: Property is irregular in shape, is below the minimum lot size for a residential lot, and will most likely require the approval of several variances from the zoning code in order to facilitate a residential unit. 19F-11 19F-12 EXHIBIT 3 Current Affordable Housing Development Project Timelines Projects under Construction First Street Apartments -1440 E. First St Oct-15 Developer Submitted Request for Funds to CDA Apr-16 Planning Entitlements Approved Jun-17 Awarded Successor Agency Funds Jun-17 Relocation Plan Approved Sep-17 9% Low -Income Housing Tax Credits Awarded Jan-18 Final Housing Authority Loan Approved Mar-18 Close of Escrow Mar-18 Construction Initiated Sept-19 Anticipated Construction Completion anta Ana Arts Gdllective -1666 N. Main st ueded HOME/CDBG Funds 7Jun-15RFP tted Application for AHSC (Cap &Trade Funds) ed AHSC (Cap & Trade) Funds w-Income Housing Tax Credits Awarded Dec-16 Relocation Plan Approved Jul-17 Final Loan Approved/ Close of Escrow Jul-17 Planning Entitlements Approved Jul-17 Building Permits Pulled/Construction Initiated Apr-19 Anticipated Construction Completion Oct-19 Revised Project Completion Date * (Foundation/Building Seismic Adjustments) Santa Ana Veterans Village - 83121N. First St Dec-16 RFP Issued for PBVs Apr-17 Approved HUD VASH PBVs Jun-17 Awarded HOME CHDO Funds Jun-17 Planning Entitlements Approved Jan-18 Awarded County Special Needs Housing Funds Feb-18 Submittal of 9% Low -Income Housing Tax Credit Application Jun-18 Award of 9% Low -Income Housing Tax Credits Dec-18 Close of Escrow Feb-19 Anticipated Construction Initiated Feb-20 Anticipated Construction Completion Page 1 of 4 19F-13 EXHIBIT 3 Aqua Housing - 317 E. 17th St Dec-16 RFP Issued for PBVs Apr-17 Approved PBVs Jun-17 Planning Entitlements Approved Jun-17 Approved Additional PBVs Jan-18 Awarded County Special Needs Housing Funds Jan-18 Submitted Application for HCD Infill Infrastructure Funds Jun-18 Award of HCD Infill Infrastructure Funds Aug-18 Submittal of 4% Low -Income Housing Tax Credit Application Oct-18 Allocation of4%Low-income Housing Tax Credits Apr-19 Close of Escrow June-19 Construction Initiated Tiny Tm Plaza - 2223 W. 5th St Dec-16 Developer Submitted Request for Funds to CDA Jun-17 Awarded City and Housing Successor Agency Funds Jan-18 Planning Entitlements Approved Jul-18 Submittal of 9% Low -Income Housing Tax Credit Application Oct-18 Award of 9% Low -Income Housing Tax Credits May-19 Anticipated Close of Escrow June-19 Anticipated Construction Initiated Projects in Pre -Development North Harbor Village Permanent Supportive Housing (Fo'ly Budget Inn) Mar-19 Start of Design Development Mar-19 Applied to FHLBSF for AHP Financing ($830,000) Mar-19 Award of VASH Vouchers & City Loan by City Council (89 Vouchers and $1,687,047) Mar-19 Start Environmental Approval Process with City of Santa Ana (CEQA/NEPA) Mar-19 Applied for Home Depot Grant ($500,000) Apr-19 First Submittal for Architectural Review May-19 Community Meeting Jun-19 Apply to HCD for MHP Funding (AmountTBD) Jun-19 Arch. Review Comments Received from City Jun-19 CEQA/NEPA Approval — City of Santa Ana Jun-19 Receive AHAP Contrail Jun-19 AHP Award Date Jul-19 Resubmit Plans for 2"dArchitectural Review Jul-19 TCACApplication —2"dRound 2019 Jul-19 Apply for OCCF Financing (If Necessary) Page 2 of 4 19F-14 EXHIBIT 3 Jul-19 Receive Ministerial Approvals for Design Aug-19 Home Depot Grant Award Date Sep-19 OCCF Award (TBD — If Necessary) Sep-19 TCAC Allocation Sep-19 Start Construction Documents for Rehab Sep-19 Submit First Plan Check Dec-19 Receipt of First Plan Check Comments Dec-19 Submit Second Plan Check Jan-20 Receipt of Second Plan Check Comments Jan-20 Submit Third Plan Check Feb-20 Receipt of Permit Ready Feb-20 Construction Loan Closing Feb-20 Start of Construction Feb-20 Construction Complete Feb-20 Start of Lease Up Jun-20 I Full Occupancy Francis Xavier - 801, 809, 809 1/2 E. Santa Ana Boulevard Jan-19 Council Approval for Land Lease and Project Funding Jan-19 Submittal of Application for NPLH Funding Feb-19 Confirm with City Staff That Project Site Can Yield Additional Units Under Existing Zoning Mar-19 Revise Conceptual Drawings for additional 5 units (17 total units, up from the original 12 units) Mar-19 SNHP Funding Application Submitted to County Apr-19 City Staff to Review Revised Conceptual Design Apr-19 Begin Development Agreement May-19 Board of Supervisors Meeting for SNHP Funding Jul-19 Execute Development Agreement Jul-19 Formal Awards Letters for NPLH Funding To Be Issued Aug-19 Initial Planning Submittal Sept-19 Sunshine Ordinance Meeting Jan-20 Planning Commission Meeting (ministerial approval of density bonus) Feb-20 City Council Meeting (ministerial approval of density bonus) Feb-20 Begin Construction Docs Aug-20 Approval of Grading Plans Mar-20 Begin Construction (Grading, Weather Permitting) Mar-21 Completion of Construction Page 3 of 4 19F-15 EXHIBIT 3 Santa Aug-18 Ana United'Methodist Church "Legacy Square" (609 Forth Spurgeon Street) Santa Ana CDA Funding Application Dec-18 Apply for NPLH and SNHP Funds Jan-19 Santa Ana Funding Award Feb-19 Planning Entitlements Approved Feb-19 AHSC Funding Application May-19 Award of SNHP Funds Jun-19 AHSC Funding Award Aug-19 Apply for 4%tax credits Aug-19 Apply for Tax -Exempt Bonds Sep-19 Construction Drawings (8-12 weeks) Oct-19 Award of4%tax credits Oct-19 Award of Tax -Exempt Bonds Dec-19 Plan Check (12-16 weeks) Jan-20 Building Permit Issuance Apr-20 Construction Closing/Syndication Apr-20 Begin Construction (18 months) Oct-21 Construction Complete Dec-21 100% Fully Leased (2 months) Habitat far Humanity - 416 Vance Street & 826 N. Laey Street Jul-19 DDAsigned Aug-19 Prepare Grading Plans Aug-19 Land Conveyance Sep-19 Submit Grading/Improvements Sep-19 Prepare Architectural Plans Nov-19 Submit Architectural Plans Dec-19 Grading Permit Issued Jan-20 Commence Grading Feb-20 Building Permits Issued Feb-20 Begin Construction Jan-21 Anticipated Construction Completion Jan-21 Certificate of Occupancy / Closings Page 4 of 4 19F-16 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: AUGUST 20, 2019 TITLE: APPROVED APPROVE APPROPRIATION ❑ As Recommended ADJUSTMENT AND AGREEMENT WITH ❑ Amended ElOOrdinance Reading on SANTA ANA COLLEGE WORKFORCE [I2n Ordinance on tl Reading SERVICES PROGRAM ($60,176) ❑ Implementing Resolution (STRATEGIC PLAN NO. 2,4) ❑ Set Public Hearing For CONTINUED TO FILE NUMBER ACTING CITY MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute an agreement recognizing $60,176 awarded to the City of Santa Ana, Santa Ana WORK Center by the Rancho Santiago Community College District for workforce and job development activities, effective June 18, 2019 through December 31, 2020, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment recognizing Rancho Santiago Community College District program funds in the amount of $60,176 into the OC Grant Revenue, State Grant -Indirect account (no. 12418002-52027) and appropriating the same amount into Rancho Santiago Community College District Grant Expenditure account (no. 12418751-various). DISCUSSION Rancho Santiago Community College District (RSCCD) on behalf of Santa Ana College received a grant award entitled, Strong Workforce Program Local Funds Initiative, from the California Community Colleges Chancellor's Office, Academic Affairs Division. The purpose of the program is to improve the quality and increase the quantity of community college Career Technical Education (CTE) courses, programs, and pathways to achieve successful workforce outcomes related to career exploration, job readiness, job placements, and work based learning. Colleges that receive funding will need to implement or expand evidence -based practices and principles that are innovative, sustainable and redesign in the areas of assessment, student services, and instruction that are geared toward improving the students' progress toward college readiness at a faster rate. The grant also includes the provision of workforce services activities. The Santa Ana WORK Center, in collaboration with Santa Ana College's School of Continuing Education, will be contracted to provide adult education students with workforce services that may include comprehensive assessment, case management, supportive services and job development 20A-1 Santa Ana College Workforce Services Program August 20, 2019 Page 2 to eligible students. WORK Center staff will be co -located at the School of Continuing Education to better assist eligible students enrolled in the Workforce Innovation and Opportunity Act programs. The City of Santa Ana WORK Center has partnered with Rancho Santiago Community College District for over 20 years to provide employment and training services. The program will serve a minimum of 40 people during the performance period of the grant. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #2 Youth, Education, Recreation, Objective #4 (Partner with groups and organizations to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT Approval of the appropriation adjustment will recognize $60,176 into the OC Grant Revenue, State Grant -Indirect account (no. 12418002-52027) and increase the RSCCD Grant expenditure account (no. 12418751-various) by the same amount as follows: Fiscal Year Accounting Unit- Fund Description Accounting Unit, Account Amount Account Description FY 19-20 12418751-various Orange County Grants RSCCD Grant, Various $40,318 FY 20-21 12418751-69011 Orange County RSCCD Grant, Reserve $19,858 Grants Appropriation Total Amount $60,176 Steven A. Mendoza Executive Director Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs, CPA Executive Director Finance and Management Services Agency_ ` Exhibit: 1. Agreement with Rancho Santiago Community College District 20A-2 EXHIBIT 1 Sub -agreement between RSCCD and City of Santa Ana SUB -AGREEMENT BETWEEN RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT AND CITY OF SANTA ANA FOR THE STRONG WORKFORCE PROGRAM — LOCAL FUNDS INITIATIVE This sub -agreement (hereinafter "Agreement") is entered into on this 17`b day of June 2019, between Rancho Santiago Community College District (hereinafter "RSCCD") and City of Santa Ana (hereinafter "SUBCONTRACTOR"). RSCCD and SUBCONTRACTOR may be referred to individually as a "Party" and collectively as the "Parties" in this Agreement. WHEREAS, RSCCD received a categorical apportionment award entitled "Strong Workforce Program" Local Funds Initiative from the California Community Colleges Chancellor's Office (hereinafter "PRIME SPONSOR"), to improve the quality and increase the quantity of community college Career Technical Education (CTE) courses, programs, and pathways to achieve successful workforce outcomes by addressing recommendations from the Strong Workforce Task Force, including the recommended provision of student services related to career exploration, job readiness, job placement, and work -based leaming. WHEREAS, RSCCD has the right to enter into agreements with outside entities for various services with the approval of the Board of Trustees; and WHEREAS, SUBCONTRACTOR has agreed to participate in the purpose of the Agreement according to the terms and conditions hereinafter set forth. NOW, THEREFORE, the Parties agree as follows: 1. Statement of Work SUBCONTRACTOR will perform the work as described in the Scope of Work (Exhibit A), which by reference is incorporated into this Agreement. SUBCONTRACTOR agrees to comply with all provisions, to perform all work as set forth in this Agreement and the aforementioned Statement of Work in a professional, timely and diligent manner. 2. Period of Performance The period of performance for this Agreement shall be from June 18, 2019, through December 31, 2020. Total Cost The total cost to RSCCD for performance of this Agreement shall not exceed $60,176.00 USD that includes SWP Local funding apportionment from FY 2017/18 at $21,176 and FY 2018/19 at $39,000. Agreement 4DO-18-2226.01 Strong Workforce Program -Local Funds Initiative FY17/18 and FY18/19 Page 1 of 8 5.2(2) 20A-3 EXHIBIT 1 Sub -agreement between RSCCD and City of Santa Ana 4. Budget SUBCONTRACTOR agrees that the expenditures of any and all funds under this Agreement will be in accordance with the Project Budget (Exhibit B), which by reference is incorporated into this Agreement. 5. Payment Disbursement of funds will begin upon RSCCD's receipt of the fully executed Agreement and a detailed invoice for the disbursement. RSCCD shall make reimbursement payments as long as the total payments under this Agreement do not exceed the amount listed above under Article I.3. "Total Costs". 6. Invoices Invoices must be itemized, include the Agreement number (refer to footer), and include back- up documentation for expenditures submitted for payment. Final payment is contingent upon successful completion of the Scope of Work (Exhibit A), upon receipt of a final invoice requesting payment due by December 10, 2020, and the Project Director's certification of the final report. Invoices should be submitted to the following address: Rancho Santiago Community College District Santa Ana College School of Continuing Education Centennial Education Center Stephanie Paramore, Dean of Instruction and Student Services 2900 W. Edinger Avenue Santa Ana, CA 92704 7. Reporting Through this Agreement, SUBCONTRACTOR agrees to provide data and submit reports, upon request, for the duration of the Agreement. SUBCONTRACTOR will submit reports to the Project Director via email at Paramore_Stephanie@sac.edu in a timely manner. 8. Expenditure ofFunds SUBCONTRACTOR agrees to comply with all funding requirements and that it is solely responsible for the appropriate expenditure of all funds received and for any misappropriation or dis-allowment of funds. 9. Time Extensions RSCCD will not be requesting a time extension for program activities from the PRIME SPONSOR. As a result, SUBCONTRACTOR will not be granted an extension. Therefore, SUBCONTRACTOR roust spend all of the funds allocated through this Agreement within the timefmme of the Agreement. Under this Agreement, SUBCONTRACTOR will only be reimbursed for expenses that are incurred on or prior to December 31, 2020. Agreement #DO.18.2226-01 Strong Workforce Program -Local Funds Initiative FY17/18 and FY18/19 5.2(3) Page 2 of 8 20A-4 EXHIBIT 1 Sub -agreement between RSCCD and City of Santa Ana 10. Independent Contractor SUBCONTRACTOR agrees that the services provided hereunder are rendered in its capacity as an independent contractor and that it is not in any way an agent of RSCCD, nor shall its employees be entitled to any personnel benefits of RSCCD whatsoever. 11. Subcontract Assignment Unless specifically noted in the Scope of Work (Exhibit A), none of the duties of, or work to be performed by, SUBCONTRACTOR under this Agreement shall be sub -contracted or assigned to any agency, consultant, or person without the prior written approval by RSCCD. No subcontract or assignment shall terminate or alter the legal obligation of SUBCONTRACTOR pursuant to this Agreement. SUBCONTRACTOR shall insure that all subcontracts for services and contracted staff are procured in a manner consistent with state SUBCONTRACTOR guidelines. SUBCONTRACTOR shall itemize all sub -contractor and contracted staff costs in the budget so it is clear how the funds will be allocated and spent by SUBCONTRACTOR. By entering into this Agreement SUBCONTRACTOR agrees that it is the direct provider of intended services. Upon request, SUBCONTRACTOR shall submit to RSCCD copies of all sub- contracts for services and contracted staff, and other agreements, as well as documentation indicating the approving authority's approval, that relate to this Agreement. 12. Rules for Deliverables A. Any document or written report prepared in whole or in part by Parties shall reference the Strong Workforce Program relating to the preparation of such document or written report. B. All products resulting from this Agreement or its subcontracts in whole or in part shall reference the California Community Colleges, Chancellor's Office and the specific funding source (Strong Workforce Program). C. All references to the project shall include the phrase, "fimded in part by the California Community Colleges, Chancellor's Office." 13. Record Keenin¢ SUBCONTRACTOR agrees to maintain project records for possible audit for a minimum of five (5) years after final payment or until any audit findings have been resolved, unless a longer period of records retention is stipulated. 14. Audit SUBCONTRACTOR agrees that RSCCD, the PRIME SPONSOR, the Bureau of State Audits, any other appropriate state or federal oversight agency, or their designated representative(s), shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. SUBCONTRACTOR agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, SUBCONTRACTOR agrees to include a similar right of RSCCD, the PRIME SPONSOR, the Bureau of State Audits, any other appropriate state or federal Agreement #DO-18-2226-01 Strong Workforce Program -Local Funds Initiative FYI 7/18 and FY18/19 5.2(4) Page 3 of 8 20A-5 EXHIBIT 1 Sub -agreement between RSCCD and City of Santa Ana oversight agency, or their designated representative(s) to audit records and interview staff in any subcontract related to the performance of this Agreement. 15.Insurance The Parties are self -insured public entities for the purposes of professional liability, general liability and workers' compensation. Each Party warrant that through its program of self- insurance it has adequate liability, general liability and workers' compensation to provide coverage for liabilities arising out of the Parties performance of this contract. 16. Mutual Indemnification Both Parties to this Agreement shall agree to defend, indemnify, and hold harmless the other Party, its officers, agents, employees, and volunteers, from and against all loss, cost, and expense arising out of any liability or claim of liability, sustained or claimed to have been sustained, arising out of activities, or the performance or nonperformance of obligations under this Agreement, of the indemnifying Party, or those of any of its officers, agents, employees, or volunteers. The provisions of this Article do not apply to any damage or losses caused solely by the negligence of the non -indemnifying Party or any of its agents or employees. 17. Termination Either Party may terminate this Agreement, with or without cause upon thirty (30) days written notice served upon the other Party, Notice shall be deemed served on the date of mailing. Upon termination, or notice thereof, the Parties agree to cooperate with one another in the orderly transfer of contract responsibilities, records, and pertinent documents. The obligations of RSCCD under this Agreement are contingent upon the availability of State funds, as applicable, for the reimbursement of SUBCONTRACTOR expenditures, and inclusion of sufficient funds for the services hereunder in the budget approved by the RSCCD Board of Trustees each fiscal year this Agreement remains in effect. In the event that such funding is terminated or reduced, RSCCD shall provide SUBCONTRACTOR with written notification of such determination. 18. Disputes In the event of a dispute between the Parties, the aggrieved Party shall notify the other Party and provide a detailed description of the alleged problem. The Parties agree -to use reasonable efforts to resolve such dispute by good faith negotiations and mutual agreement. In the event such informal resolution is not successful within a reasonable period of time, the Parties hereby agree that such dispute will be resolved in the manner specified below. Except as otherwise provided in this Agreement, any dispute concerning any question arising under this Agreement shall be decided by RSCCD and/or the PRIME SPONSOR. In such a case, the decision shall be reduced to writing and a copy thereof shall be mailed or otherwise furnished to SUBCONTRACTOR. The decision shall be final and conclusive unless within Agreement 4DO-18-2226-01 Strong Workforce Program -Local Funds Initiative FY17/18 and FY18/19 Page 4 of 8 5.2(5) 20A-6 EXHIBIT 1 Sub -agreement between RSCCD and City of Santa Ana thirty (30) calendar days from the mailing or delivery of such copy, RSCCD receives from SUBCONTRACTOR a written request to appeal said decision. Pending final decision of the appeal, SUBCONTRACTOR shall act in accordance with the written decision of RSCCD or the PRIME SPONSOR, whichever is the final arbiter of the dispute. The handling of non- criminal complaints, including discrimination complaints, and complaints and reports of criminal fraud, waste and abuse shall be as prescribed by the State of California, and/or the PRIME SPONSOR, whichever is applicable, in accordance with applicable provisions of the Code of Federal Regulations. 19. Notices All notices, reports and correspondence between the Parties hereto respecting this Agreement shall be in writing and deposited in the United States Mail, postage prepaid, addressed as follows: RSCCD: Rancho Santiago Community College District Primary Contact: Santa Ana College School of Continuing Education Centennial Education Center Stephanie Paramore, Dean of Instruction and Student Services 2900 W. Edinger Avenue Santa Ana, CA 92704 714-241-5724, Paramore_Stephanie@sac.edu Fiscal Contact: Rancho Santiago Community College District Peter J. Hardash, Vice Chancellor, Business Operations/Fiscal Services 2323 North Broadway, Ste. 404-1 Santa Ana, CA 92706 (714) 480-7340, Hardash_Peter@rsccd.edu SUBCONTRACTOR: City of Santa Ana Primary Contact Carlos de Is Riva, WORK Center Director 801 W. Civic Center Drive # 200 Santa Ana, CA 92701 (714) 565-2629; CdelaRiva@santa-ana.org Agreement 4DO-18-2226-01 Strong Workforce Program -Local Funds Initiative FY17/18 and FY18/19 Page 5 of 8 5.2(6) 20A-7 EXHIBIT 1 Sub -agreement between RSCCD and City of Santa Ana Fiscal Contact: Mario Espindola, Management Analyst 20 Civic Center Plaza Santa Ana, CA 92701 (714) 647-5479; MEspindola@santa-ana,org 20. Unenforceable Provision In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the Parties agree that all other provisions of this Agreement remain in full force and effect and shall not be affected thereby. 21. Waiver Any waiver by RSCCD of any breach of any one or more of the terms of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term. Failure on the part of RSCCD to require full, exact, and complete compliance with any terms of this Agreement shall not be construed as in any manner changing the terms of this Agreement, or stopping RSCCD from enforcing the terms of this Agreement. 22. Severability If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force and effect without being impaired or invalidated in any way. 23. Amendments This Agreement may be modified or revised at any time by the Parties as long as the amendment is made in writing and signed by an authorized official of both Parties. As the Agreement is contingent upon the availability of funds, and is subject to any additional restrictions, limitations, or conditions enacted in the State Budget and/or Executive Orders that may affect the provisions, terms, or funding of this Agreement in any manner, RSCCD may modify this Agreement through an amendment, as needed. SUBCONTRACTOR agrees to expend all funds in accordance with all applicable federal, state and local laws and regulations. 24. Assurances By signing this Agreement the Parties certify they will comply with the terms and conditions outlined in the Strong Workforce Program Trailer Bill, and with the guidance documents provided by the California Community College -Chancellor's Office; as set forth and - - incorporated into this Agreement by reference. As the funding is subject to any additional restrictions, limitations, or conditions enacted in the State Budget and/or Executive Orders that may affect the provisions, terms, or funding of this Agreement in any manner, RSCCD may modify this Agreement through an amendment, as needed. SUBCONTRACTOR agrees to expend all funds in accordance with all applicable federal, state and local laws and regulations. Agreement #DO-18-2226-01 Strong Workforce Program -Local Funds Initiative FY17118 and FY18119 5.2(7) Page 6 of 8 20A-8 EXHIBIT 1 Sub -agreement between RSCCD and City of Santa Ana By signing this Agreement the SUBCONTRACTOR certifies that it complies with state and federal requirements for Standards of Conduct, Workers' Compensation Insurance, Participation in Project -Funded Activities, Non -Discrimination, Accessibility for Persons with Disabilities, Drug -Free Workplace Certification, Intellectual Property, and Debarment and Suspension, and will adhere to these legal standards and requirements in the performance of work related to this Agreement. 25. Total Agreement This Agreement, together with the attachments hereto, expresses the total understanding of both Parties. There are no oral understandings of the Parties or terms and conditions other than as are stated herein. No change, modification, extension, termination or waiver of this Agreement, or any of the provisions herein contained, shall be valid unless made in writing and signed by duly authorized representatives of the Parties hereto. SUBCONTRACTOR acknowledges that it has read and agrees to all terms and conditions included in this Agreement. IN WITNESS WHEREOF, the Parties hereto certify that they have read and understand all the terms and conditions contained herein and have caused this Agreement to be executed as of the day that both Parties have signed the Agreement. RANCHO SANTIAGO COMMUNITY SUBCONTRACTOR: City of Santa Ana COLLEGE DISTRICT Name: Peter J. Hardash Name: Vice Chancellor Title: Business Operations/Fiscal Services Title: Date: �� Date: Board Approval Date: June 17, 2019 Employer/Tnpayer Identification Number (EnK) Agreement 4DO.18-2226-01 Strong Workforce Program -Local Funds Initiative FY17/18 and FY18/19 Page 7 of 8 5.2(8) 20A-9 EXHIBIT 1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City 51 CITY OF SANTA ANA KRISTINE RIDGE City Manager RECOMMENDED FOR APPROVAL: Steven Mendoza Executive Director, Community Development Agency 20A-10 EXHIBIT 1 Sub -agreement between RSCCD and City of Santa Ana List of Exhibits Exhibit A: Scope of Work Exhibit B: Project Budget Exhibit C: Guidelines, Definitions and Reasonable Standards for SWP Exhibit D: Trailer Bill Language for Strong Workforce Program (link) Agreement 9DO.18-2226-01 Strong Workforce Program -Local Funds Initiative FY17/18 and FY18/19 Page 8 of 8 5.2(9) 20A-11 EXHIBITA EXHIBIT 1 CITY OF SANTA ANA SCOPE OF WORK BACKGROUND For over 20 years, the City of Santa Ana's WORK Center has demonstrated its abilities in designing, implementing, and managing a full array of workforce development programs to area residents. In 1996, the City of Santa Ana further expanded its services by opening the Santa Ana WORK Center and later partnering with various agencies, including the State Employment Development Department, Orange County Social Services Agency, Department of Rehabilitation, Rancho Santiago Community College District, Goodwill Industry, and community based organizations to ensure a comprehensive and integrated service delivery in a One -Stop environment. The services have benefited, youth, adults, dislocated workers, and families on -aid. PLANNED APPROACH The Santa Ana WORK Center will assume the responsibility to ensure the WIOA eligible students enrolled at Santa Ana College will receive needed WIOA services. These services may include one or more of the following services: 1. Basic Career Services: Basic Career Services will be offered to all students. These services are by their nature self-service. These services require minimal staff assistance such as access to job postings, referrals to other program, and provision of labor market information. Self- service also includes staff establishing access to CalJOBS for an individual or looking up a password. 2. Job Coaching: This activity will help prepare students for employment. Participants will be offered one-on-one coaching to develop skills necessary to obtain employment. Job coaching is designed to help job seekers gain confidence so they can successfully enter the workforce, obtain and sustain employment. Job coaches will provide guidance and motivation in setting and achieving job and career goals. Participants will also receive one-on-one guidance in increasing job retention by promoting effective workplace habits, attitudes and choices. 3. Supportive Services: As part of the planned approach, supportive services will be identified and the participant will receive assistance in those services. Supportive services include but are not limited to, transportation assistance, clothing assistance, assistance with tool purchases, or testing fees. Participants must be eligible for WIOA to receive supportive services. 4. Job Development/Job Creation: The Employment Services Team will interact with the local business community. The goal is to ensure that sufficient employment opportunities are created for WIOA eligible students who are co -enrolled in the WIOA program. 5.2(10) 20A-12 EXHIBIT 1 EXHIBIT A PARTICIPANT RECORDS AND DATA COLLECTION 1. CalJOBS: Participant records and data collection will be achieved by using CaIJOBS. CaIJOBS is designed to not only provide online workforce services to job seekers, it also serves as a program management tool for workforce professionals. For the management of a workforce program, CaIJOBS incorporates customer tracking, program activities, outcomes, and follow up services. a) Customer Tracking -Participants will be registered into CaIJOBS. Registration captures basic client information including demographics and contact information. Each registered participant receives a unique application number which is utilized to track client participation. b) Program Activities: CaIJOBS provides a method to track program activities including start dates, end dates and completion status. Completion status is limited to successful and unsuccessful completions. CalJOBS has hundreds of activity codes including Job Search, Orientation and Supportive Services. c) Outcomes: Closing program activities is manually entered by staff. Upon completion of planned services, a closure form is entered which captures program related outcomes such as employment and credential attainment. d) Follow Up: After creating a closure, follow-up activities can be created to track program outcomes, up to a year after program exit. 2. Reports: CalJOBS reports will be submitted monthly including a) Total Enrollment Summary b) Activity Reports c) Program Summary Reports Including Outcomes 5.2(11) 20A-13 EXHIBIT 1 EXHIBIT B City of Santa Ana FY2019.20 PROPOSED BUDGET June 18, 2019 - December 31, 2020 Agreement # DO-18-2226-01 FY201940 Pt gposed: Budget .... dul Y62d I1ec 2020 P� oposed $udgej. Totnk Budget, , . Salaries and Benefits Workforce Specialist ll 26 623.35 13 112.99 39,736.34 Subtotal Salaries: 26,623.35 13,112.99 39,736.34 Benefits _ 9_790.79 s 4,822.33 14,613.12 Subtotal Salaries and Benefits: 36A14.14 17 35.32 _ -- 54 49.46 Operating Expenses Gas & Diesel 33.50 16.50 50.00 Rental City Equipment 134.00 66.00 200.00 Accident Repair & Replacement 33.50 16.50 50.00 Insurance Charges 335.00 165.00 IT Maintenance Charge 335.00 165.00 500.00 Indirect Cast 3,032.78 1,493.76 4,526.54 Subtotal Operating Ex enses: 3.903.79 1 22.76 5,826.54 TOTAL BUDGET 40,317S21 19,858.08 60,176.00 5.2(12) 20A-14 EXHIBIT 1 Exhibit C Guidelines, Definitions and Reasonable Standards for Strong Workforce Funding Investment (Local and Regional Share) Reasonable Reasonable is defined by the dictionary as: agreeable to sound judgment, not exceeding the limit prescribed by reason (not excessive), moderate in price, and a rational decision. Systems that can guide this definition are: necessary for the performance of the funding; follow sound business practices (procurement processes, follow state and local laws, follow the terms of the funding source); use of fair marker prices; acting with prudence under the circumstances; and having no significant deviation from established prices. The following, directly relate to Strong Workforce Education Code Requirements and some examples of the standard non -allowable activities that meet the "front-page of the newspaper" test of reasonable and the allowable indirect cost rate: Supplanting: Funds appropriated to community college districts for local or regional share investment shall supplement, not supplant, existing funding of community college career technical education programs. This shall not be interpreted to mean that a participating community college district is prohibited from eliminating or altering existing programs, but the percentage of that community college district's total full-time equivalent students enrolled in career technical education courses relative to the total full-time equivalent students enrolled in the district shall not be reduced from the percentage computed for the 2015-16 fiscal year. [EC'§88824(e)] Funding CTE Only: Funds expended must show a direct benefit to the requirements of the Strong Workforce Program outcomes of increasing the number of quality students or programs in CTE courses programs and pathways and addressing the recommendations of the Strong Workforce Task Force. [EC§88824(d)(.5)(A-QJ Duplication of Effort: To avoid duplication of effort, activities funded under the Strong Workforce Program shall be informed by, aligned with, and expand upon the activities of existing workforce and education regional partnerships, including those partnership activities that pertain to regional planning efforts established pursuant to the federal Workforce Innovation and Opportunity Act (Public Law 113-128), adult education block grant consortia, and R-12 career technical education programs. [EC§88821(4)(d) District Procedures: All fiscal policy and program procedures adopted by the applicable Community College District shall be followed when expending (local and regional) allocations. 5.2(13) 20A-15 EXHIBIT 1 Non -Allowable Activities: Entertainment — Costs of entertainment, including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities) are unallowable. Alcoholic Beverages — Costs of alcoholic beverages are unallowable. Contingency (Rainy Day Funds) — Contributions to a contingency reserve or any similar provision made for events the occurrence of which cannot be foretold with certainty as to time, intensity, or with an assurance of their happening, are unallowable. Goods and Services for Personal Use— Cost of goods and services for Personal use is unallowable. Lobbying — Lobbying is never allowed unless it meets the following criteria: (1) Technical and factual presentations on topics directly related to the performance of a grant, contract, or other agreement (through hearing testimony, statements, or letters to the Congress or a State legislature, or subdivision, member, or cognizant staff member thereof), in response to a documented request (including a Congressional Record notice requesting testimony or statements for the record at a regularly scheduled hearing) made by the recipient member, legislative body or subdivision, or a cognizant staff member thereof, provided such information is readily obtainable and can be readily put in deliverable form, and further provided that costs under this section for travel, lodging or meals are unallowable unless incurred to offer testimony at a regularly scheduled Congressional hearing pursuant to a written request for such presentation made by the Chairman or Ranking Minority Member of the Committee or Subcommittee conducting such hearings. Contributions or Donations — Cash or property contributions or donations are unallowable. Fund Raising and Investment Costs — Costs of organized fund raising, including financial campaigns, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions are unallowable, regardless of the purpose for which the funds will be used. Indirect Cost Rotes Allowed Allocation Indirect Cost Rate (Total Direct Costs) 60%Local Share 4% 40%Regional Share No Indirect Allowed The following table can be used as a quick reference guide for participation requirements and/or plan requirements as listed within Division 7, Title 3 Education Code Section 88820-88826 (Strong Workforce Program) guidelines. This table is not meant to substitute a full review of 5.2(14) 20A-16 EXHIBIT 1 Division 7, Title 3 Education Code Section 88820-88826 (Strong Workforce Program) guidelines in their entirety in addition to all recommendations from the Strong Workforce Task Force. Links to the above mentioned documents and documents that are designed to inform in the development of these investments can be found at: htur:/Idoim2w Irahnatters.ccceo.edu/StroneWorkforce.aspx Recipients of Local or Regional Plans for Local or Regional Share Fundina Shall I Share Fundine Shall Address Be a member of a consortium [EC§88824(d)(1)) (Career Technical Education Regional Consortium," or "consortium," means an administrative grouping of community college districts by the Division of Workforce and Economic Development of the chancellor's office for the purpose of coordination and joint planning within regions, as defined in subdivision [EC88822§(c)]) Work with other members of the consortium to create and submit a plan to the chancellor by January 31, 2017 [EC§88824 (d)(2)J, for inclusion in the submissions of regional plans for purposes of the program and the federal Workforce Innovation and Opportunity Act (Public Law 113-128). Collaborate: [EC§88821(o-e)J All Community College Districts participating in local or regional investments are required to follow collaboration requirements as specified in these sections. LMI Data: [EC§88824(d)(4)J Provide accessible performance and labor -market data that can be used by community college districts and their regional partners to support the implementation of the program and describe related efforts to align regional workforce and education programming with regional labor market needs, including, but not limited to, regional planning efforts established pursuant to the federal Workforce Innovation and Opportunity Act (Public Law 113-128). Increasing the number of student in quality career technical education courses, programs, and pathways that will achieve successful workforce outcomes. [EC§88824(d)(5)(A)J Increasing the number of quality career technical education courses, programs, and pathways that lead to successful workforce outcomes, or invest in new or emerging career technical education courses, programs, and pathways that may become operative in subsequent years and are likely to lead to successful workforce outcomes (completions, transfer, employment rates, employment in a field of study, eaming, median change in eaming, proportion of student who attained living wages). [EC§88824(d)(5)(E)J Address recommendations from the Strong Workforce Task Force, including the recommended provision of student services related to career exploration, job readiness and job placement, and work -based learning. [EC§88814(d)(5)(C)J In4r:/,'doincwhaunatters cccco edu/uonals/6/dots/sw/2016 11%20Workforce Task Force Imulementalion%2011ecom mendati ons%20 V ersion%201. nd f Local Investment Shall: Provide Evidence of Demand for Workers within the funded CIE Program or Across Multiple Programs • Identify geography and occupations targeted • Identify demand and supply and gap Cite source of Iabor Market Information 5.2(15) 20A-17 EXHIBIT 1 Local Investment Planning Efforts: [EC§88823(n] Community College Districts participating in a consortium shall utilize their region's plan to inform local campus planning efforts to implement career technical education courses, programs, and pathways and integrate available local, regional, state, and nonpublic resources to ensure that students will achieve successful workforce outcomes. Certifications: [EC§88824(d)(5)(A-C)]Community College Districts will certify that the use of funds will meet the intent of the program to accomplish all of the following: (A) Increase the number of students in quality career technical education courses, programs, and pathways that will achieve successful workforce outcomes. 03) Increase the number of quality career technical education courses, programs, and pathways that lead to successful workforce outcomes, or invest in new or emerging career technical education courses, programs, and pathways that may become operative in subsequent years and are likely to lead to successful workforce outcomes. (C) Address recommendations from the Strong Workforce Task Force, including the recommended provision of student services related to career exploration, job readiness and job placement, and work -based learning, Regional Share Consortium Shall: • [EC§88824(c)(1) & §88823(b)(1)] each consortium shall select a CCD to be fiscal agent. [EC§888246)] a consortium shall allocate funds only to CCDs. • [EC§88823(b)(2] a consortium shall establish a governance model for the consortium. Fiscal Resources shall be determined exclusively by the CCDs participating in the consortium. Regional Investment Shall — [EC 88623(b)(3-7)] review for the following: Summary of Local Share Investments by Sector Regional/Sub Regional Labor Market Information Supply & Demand Table with Living Wage Occupations Other Establish Questions & Agenda for Collaborative Regional Planning Are priority and emergent sectors for the region still the same? What more must be done for students to move through the region's career pathways in the sectors? How will job placement, internships, and regional industry engagement be coordinated? How can industry inform and co -invest in CTE? Regional Share Plan [F,C §88823 Qi)) Each region's plan shall be for the primary purpose of informing the development of strategies related to career technical education and workforce development courses, programs, and pathways. Each region's plan shall reflect strategies to efficiently and effwlivoly utilize any available public and private resources, including funds for the Career Technical Education Pathways Program established in Part 52 (commencing with Section 88530), in a manner that better aligns career technical education courses, programs, and pathways with the needs of their regional economies. 5.2(16) 20A-18 EXHIBIT 1 STATE OF CALIFORNIA ERIK E. SKINNER, ACTING CHANCELLOR CALIFORNIA COMMUNITY COLLEGES CHANCELLOR'S OFFICE 1102 Q STREET, SUITE 4550 SACRAMENTO, CA 95611-6649 /✓~� `\ 1 I 1 (916)4456752 ,f `�' Illll`%\V\Y{VAVCQ4C`II • 1 August 25, 2016 To: Regional Consortium Chairs From: Matt Roberts, Ed.D. Dean of Field Operations Workforce and Economic Development Division Subject: Guidance on.use of funds for strong workforce program This memorandum provides guidance on the use of funds for the strong workforce program. 5.2(17) 20A-19 N y y N C O i0 ro > 0 0) ca m n ° E CL a m a ° ro c m Q E E U v d m acmFs ror- > a OEa$ o °0m D wca a p ro o $ o U o v r U °° e CD T mm rom cm mdmn 0) m E aia n w €" U � a r- N E Qa a a m° m a m A m o E m c$ o § o) 0 5 2 0-' m 'aa > Y�Y �m 8 osI am O Oa e L �S mg c `m E CL 0 co c y c CO L E co U cu m o me c ac m a+= A R c a) cCL .0 MO o a mo. o ogE'o iv' 2 v a" y cQ02E� 9E"O�w 8 �� 28wo2 a m w c`mEac)m" �cmovc8 �ro� • UU m {p 7 ypp O y C 0 L C= M N p QU M ro O ro a 0) 3 0 N ro U ') O aj OF 7 N N 4) V mopeso T�ccnnrm•�wr c _ >'pup�0 Nc000U3 N a f0 '•'_.' ° C 'p12N N m m c CD .0 o�SUU co ro'>7 Lm o'�OU �dwcac}E'4r >. 'D ID O tm C NQ —0 N p� cu C 29 A m ro�pp m8 U 5� s�W 26'A n C. Z.� moa Oay� rjeoo°-N CW D cr c o Vma C•C N _UOpn cr tm nUUUpN{{7 27. m ` m a m okra mro4m cc)a) E b, �c>>m0 0m.0S 'mom € n FP ° 0-0 'L o �' c aca �U m c >ro D_ E>cm oE cUavm, 5: r%c% >>10 m€ (; m c a M ro cN m cc m N D) e om Cooso M 0)i 5c m o 9>My >E>>01>w M LLa00NOQEL2LLLUcL CL10ppE N C U 'O QC) • • • • • • • • • • • • a m 20A-20 EXHIBIT 1 N {p C 7 G Q Fy O C ' d EO 4� £ N f9 l0 l6 N .OG d O ? e ~ 'mW �n"cam o� $ E c y G m m cooF� a N �m c 0 3 L p Q : O N p U r° M�'cc C a � U (D U3 to Ti 2 = = `; O N Fca A N KlCO9 O EC '° N e 69 Y N Ea) E�$$ �EO) N O C oN E 8 N �F y vj lL D U c Ecc�iovFF° O © aO." 5 V O m �p} 4 . $ 9 W n O C N N�i �F N 3 W C 7 N m e °cr.�mEa ° N m Ism 9- aO1i .0 N C ,0, a N c 1G0 -tona a t] �Up N E E a > N W _ N N N x�e fla�FqF ga�c� alas Iola E 0 999 9 Igh 9, �qn ' Slum k �g 9 SHI B: S �Aas � Ss �amuoi.. k d cq $ a � o y o Q > E y CL m N to c an m L o o m 8 O N = O N c p p1 O c O f0 .G � $ $ O s Uo Fg'D E �7c $o Emc c m� GM•- E L o0 $Ga (7 °) O tz r s 00 .V iP (4 G N N 3 N 6 d E N � y E E o O r E'2cc $ =ho ^' � N wr m � cu w e !V Qj N U .O c— O Co 9msrnU O 00 M 'S > MO.a 'CollEB Qa ccG N (Np F Off'' ypG Sm rN.. N U O E t.0 wa T m>- T E c M'�O cad OCL 0 0 ?, N C N 0ocod �(a�(pp))EU� °Q N C W O V O E ._ '7 4O* N d sNC U 7 p a, O N 0 0 0 :S V a� E '� N O .0 r C` 'OO llll'D0000 lC OE � coyg .4 y U C O c E -0o' c5$ .�dEii°o:ewm. m Zia L m px�EC'�9¢a` 0 O 2 �1 G 4 O m .� .0 ..�� c oA W N o 0 00 F t`°9 5° as =U$ 5.2(19) 20A-21 20A-22 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT TO RECEIVE AND APPROPRIATE $23,760 FROM THE SOCAL WATER$MART PUBLIC AGENCY LANDSCAPE PROGRAM TO PURCHASE CENTRAL COMPUTER IRRIGATION CONTROLLERS FOR CENTENNIAL PARK (STRATEGIC PLAN NO. 6, 1) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO �itC��j FILE NUMBER CITY MANAGER RECOMMENDED ACTION Approve an appropriation adjustment to receive $23,760 from the SoCal Water$mart Public Agency Landscape Program in the Miscellaneous income account and appropriate the same amount to the Parks, Recreations and Community Services Agency Operating Materials & Supplies Buildings/Grounds account to purchase central computer irrigation controllers for Centennial Park. DISCUSSION Funding for the SoCal Water$mart program is provided through a partnership between the Metropolitan Water District of Southern California (Metropolitan) and its 26 member agencies throughout Southern California. Their commitment to develop an affordable balance between supply and demand has made "finding" water a priority. To encourage agencies that have not already installed water -efficient landscape equipment to do so, SoCal Water$mart has unveiled the Public Agency Landscape (PAL) program, offering enhanced incentives paid up -front for public agencies to install water -efficient landscape devices at their facilities and on their grounds. Exhibit 1 describes the Terms and Conditions of this program. The City is proposing to install nine central computer irrigations controllers at Centennial Park. The project is approximately $25,000 and the incentive program would provide $23,760 in incentive funding. The incentive amount is $55 per station. The project would involve nine controllers with 48 stations per controller. The department's General Fund budget for maintenance covers the $1,300 difference between the cost and incentive. 20B-1 20B-2 Appropriation Adjustment for incentive funding from the Socal Water$mart Pubic Agency Landscape Program August 20, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (Establish and maintain a Community Investment Plan for all City assets). FISCAL IMPACT Approve an appropriation adjustment as follows: Fiscal Year Accounting Unit -Account # Fund Description Accounting Unit, Account Description Amount FY 19-20 01113002- General Fund- PRCSA-Miscellaneous Income $23,760 57990 Revenue 01113250- General Fund- PRCSA-Park Facilities, FY 19-20 63200 Expenditure Operating Materials & Supplies $23,760 Building/Grounds After submittal of the application and review by the SoCal Water$mart Program, the City anticipates an incentive check in 4-6 weeks. The City will have 120 days from the date of check issuance to purchase and install the controllers. If not installed within 120 days, the City would be required to return the funds. r O i7. F, 'Aoy �' Executive Director APPROVED AS TO FUNDS AND ACCOUNTS Kathryn Downs, CPA Executive Director T'"` Parks, Recreation and Community Finance and Management Services Agency Services Agency Exhibit: 1. Application Terms and Conditions r1- r�- Terms and Conditions EXHIBIT 7 1. Applications (inventory of devices) for the Public Agency Landscape (PAL) program must be submitted to SoCal Water$mart and approved prior to the purchase and installation of your device(s). 2. Installations must be completed within 120 days from the issuance of the incentive. When installations are performed in phases, SoCalWater$mart payments would be paid out in stages. Phased installations require separate applications. If work is not completed within 120 days partnering public agency will be invoiced for the upfront funds provided and payment must be received within 30 days. 3. Applications must be sieved by the Director of Public Works, or an individual with an equivalent position approved by SoCal Water$mart. Applications must include a business card for individual signing the application. Applications must provide two (2) separate contacts. Vendors cannot be provided as contacts. 4. Participation in the Public Agency Landscape program is limited to public agencies on a first come, first served basis while funding is available. The public agency must be within the Metropolitan Water District (Metropolitan) service area and must be approved by Metropolitan and its respective member agency. 5. Upon approval of the incentive application, up -front financial assistance is provided to the partnering public agency to purchase PAL Program approved water efficient devices. 6. Central Computer Irrigation Controllers (CCICs) must include functioning technology for automatic shutoff of broken heads, valves or pipes. 7. The partnering public agency is responsible for procurement of devices, installation, installation costs, and maintenance of devices. 8. The partnering public agency cannot receive additional rebates from the SoCal Water$mart rebate program for the same device that is being funded through the PAL program. 9. A service address previously rebated through Metropolitan regional or its water agency programs is not eligible to receive up- front incentives or another rebate for the same type of device. 10. A limit of $100,000 of Metropolitan funding applies per service address for every program year. 11. After completion of the installation, the partnering public agency will be required to submit sales receipts as proof of purchase. Receipts must include quantity, make and model of the device(s) installed. Reconciliation between the incentives funded, actual procurement, and proof of installation will take place. The partnering public agency will refund to Metropolitan any unspent funds within 30 days. 12. All devices for which an incentive is issued are subject to an on -site installation verification inspection. If device installation cannot be verified, the partnering public agency will reimburse the program for the funds received including all associated processing costs. Access to the funded device(s) must be provided. 13. Facilities using recycled water may not qualify. Call 1-888-376-3314 to confirm eligibility prior to application submittal. 14. The partnering public agency Tax information and/or Tax ID number must be provided in order to receive these incentives. This is in compliance with exemptions to the Federal Privacy Act of 1974, 42 UCS 405 (c)(2)(c). The Internal Revenue Service requires incentive or rebate program participants receiving $600 or more in rebates to receive an IRS Form 1099 unless exemptions apply. 15. Incentives or rebates are issued once per lifetime of the property for each eligible area. Sites may be subject to pre -inspection prior to issuance of rebate. 16. Neither Metropolitan nor your local water utility or Retail Water Purveyor, or their contractors or agents, makes any representation or warranty regarding the devices eligible for rebates or incentives under this program. By participating in the PAL program, the applicant agrees to waive and release Metropolitan, the Local Water Utility or Retail Water Purveyor, and their contractors or agents, from any and all claims and causes of action arising out of the purchase, installation or use of the devices purchased in connection with the Rebate program. Any claim you may have based upon any defect or failure of performance of a device purchased by you should be pursued with the manufacturer or distributor. r1- rI- REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT AND AGREEMENTS WITH THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA AND ORANGE COUNTY WATER DISTRICT FOR FUTURE SUPPLY ACTIONS FUNDING PROGRAM MUSSELS STUDY ($122,796 EACH AGREEMENT) (STRATEGIC PLAN NO. 5, 2) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 181 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY TXNAGER Approve an appropriation adjustment recognizing $122,796 in Metropolitan Water District of Southern California Future Supply Actions Funding Program funds into the Public Works Water Revenue, Miscellaneous Recoveries revenue account, and appropriating the same amount into the Water Admin/Engineering Contract Services Professional expenditure account. 2. Authorize the City Manager and Clerk of the Council to execute an agreement with the Metropolitan Water District of Southern California through its Future Supply Actions Funding Program for the Restoration of Local Recharge Sources from Invasive Dreissenid Mussels Study, for the term commencing May 7, 2019, through December 31, 2021, for an amount not to exceed $122,796. 3. Authorize the City Manager and Clerk of the Council to execute agreement with the Orange County Water District to complete the Restoration of Local Recharge Sources from Invasive Dreissenid Mussels Study, for the term commencing May 7, 2019, through December 31, 2021, at a 50%-share cost not to exceed $122,796. DISCUSSION The Metropolitan Water District of Southern California (MWD) issued a Request for Proposals to Metropolitan member agencies for technical studies or pilot projects under the Future Supply Actions Funding Program (FSA Funding Program) to enable effective future resource planning and potential development of recycled water, seawater desalination, stormwater, and groundwater enhancement. As the lead member agency, the City of Santa Ana partnered with Orange County 20C-1 Agreements with MWD and OCWD for Restoration of Local Recharge Sources from Invasive Dreissnid Mussels Study August 20, 2019 Page 2 Water District (OCWD) and Trussell Technologies to submit a proposal entitled "Restoration of Local Recharge Sources from Invasive Dreissenid Mussels" (Study). Ever since their discovery in Lake Mead in 2007, quagga mussels (Dreissena bugensis) have spread through MWD's Colorado River Aqueduct (CRA) as far south as Lake Skinner, near Temecula. As of December 2017, quagga mussels have been detected in 43 locations in California. To minimize the spread of quagga mussels, MWD chlorinates CRA water, starting at Copper Basin reservoir, close to the eastern end of the CRA, and at other locations, such as Lake Matthews. Despite this effort, quagga mussels have infested reservoirs used for capture of local runoff, as well as rivers, streams, and canals used to convey both local supplies and imported supplies to groundwater replenishment facilities. This is important because OCWD uses many of the same facilities to recharge imported water and local sources, such as stormwater. As a result, the presence of quagga mussels presents a barrier to the efficient use of these dual -use facilities and has affected the ability to maximize the capture and recharge of local supplies. This, in turn, affects the amount of water available to those that rely on the groundwater basin for water supplies. As an example, Irvine Lake, which is owned and operated by the Irvine Ranch Water District (IRWD), receives both imported CRA water and local storm flow. Downstream of Irvine Lake are OCWD's Santiago Basins which are gravel mines that were converted to groundwater replenishment facilities in the early 1990s. In the 1990s, water from Irvine Lake was discharged to Santiago Basins via Santiago Creek for groundwater replenishment. These deliveries are no longer possible due to the presence of the quagga mussel in Irvine Lake and the potential for infesting Santiago Creek and Santiago Basins. The City of Sana Ana is one of 19 major retailers in the OCWD service area, serving a population of over 334,000. As a groundwater producer in the OCWD service region, the City relies upon OCWD's management of the Orange County groundwater basin for three-quarters of its water supply. This Study is designed to examine ways to maximize the recharge of both imported and local supplies, which will, in turn, increase available water supplies to the City, and others that rely on the groundwater basin. The total cost of the Study is $245,592. On January 31, 2019, the City was notified that MWD authorized the proposal under the FSA Funding Program, which will cover half of the total Study cost. In addition to OCWD, other agencies contributing funding to the Study include the Water Replenishment District of Southern California, United Water Conservation District, the Main San Gabriel Watermaster, and the Central Basin Municipal Water District. The Study is slated to be completed by February 2021. As lead agency, the City will need to enter into two agreements. The first is with MWD (Exhibit 1) and the second is with OCWD (Exhibit 2). The City will receive invoices from OCWD and issue payments for the MWD share of the costs. Subsequently, City will submit invoices to MWD for reimbursement. MWD will not reimburse the City until it issues payments to OCWD. As a result, City funds.will be used to temporarily facilitate the transfer of funds between MWD and OCWD. At 20Ci-2 Agreements with MWD and OCWD for Restoration of Local Recharge Sources from Invasive Dreissnid Mussels Study August 20, 2019 Page 3 the end of the project, MWD, OCWD, and other contributing agencies will cover all project costs and there will be no cost to the City. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #2 (Expand opportunities for conservation and environmental sustainability). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The cost of the Study is $245,592, half of which will be paid by OCWD and the other half paid by MWD. There is no net cost to the City. However, the City must pay the MWD share of the costs — not to exceed $122,796 — before reimbursement is made. The requested Appropriation Adjustment will recognize $122,796 in Metropolitan Water District of Southern California Future Supply Actions Funding Program funds into the Public Works Water Revenue, Miscellaneous Recoveries revenue account (No. 06017002-57010), and appropriate the same amount into the Water Admin/Engineering Contract Services -Professional expenditure account (No. 06017645-62300). OCWD invoices will be paid out of the Water Administration and Engineering expenditure account in FY 19-20 and budgeted in subsequent years as indicated below: Fiscal Accounting Unit Fund Accounting Unit, Account Year — Account # Descri tion Description Amount REVENUE Public Works Water FY 19/20 06017002-57010 Water Revenue, Miscellaneous $100,000 Recoveries Public Works Water FY 20/20 06017002-57010 Water Revenue, Miscellaneous $22,796 Recoveries Total Appropriation: $122,796 20C-3 Agreements with MWD and OCWD for Restoration of Local Recharge Sources from Invasive Dreissnid Mussels Study August 20, 2019 Page 4 Fiscal Accounting Unit Fund Accounting Unit, Account Amount Year — Account # Description Descri tion EXPENDITURE Water Admin/Engineering, FY 19/20 06017645-62300 Water Contract Services - $100,000 Professional Water Admin/Engineering, FY 20/20 06017645-62300 Water Contract Services - $22,796 Professional Total Contract Amount: $122,796 Fuad Sweiss Executive Dir Public Works FS/NS/RR Exhibits: 1. Santa Ana MWD Agreement 2. Santa Ana OCWD Agreement APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs, CPA Executive Director 07 Finance and Management Services Agency 20C-4 EXHIBIT 1 AGREEMENT BETWEEN METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA AND CITY OF SANTA ANA FUTURE SUPPLY ACTIONS FUNDING PROGRAM AGREEMENT NUMBER 189280 20C-5 Table of Contents Paragraph..............................................................................................................................................Page Contract Cover Page ExplanatoryRecitals........................................................................................................................ 1 Termsof Agreement....................................................................................................................... 2 1. Scope of Work..................................................................................................................... 2 2. Time and Term.................................................................................................................... 2 3. Agreement Administrators.................................................................................................2 4. Independent Contractor..................................................................................................... 3 5. Consultants and Sub-consultants....................................................................................... 3 6. Metropolitan's Maximum Amount Payable and Reimbursement Procedure .................... 4 7. Billings and Payments......................................................................................................... 4 8. Reporting Requirements..................................................................................................... 6 9. Business Outreach Program................................................................................................ 6 10. Successors and Assignment................................................................................................ 7 11. Use of Materials.................................................................................................................. 7 12. Intellectual Property........................................................................................................... 7 13. Nonuse of Intellectual Property of Third Parties................................................................ 8 14. Representations..................................................................................................................8 15. Legal Requirements............................................................................................................9 16. Guarantee and Warranty.................................................................................................... 9 17. Access to Metropolitan Premises....................................................................................... 9 18. Indemnity............................................................................................................................ 9 19. Insurance........................................................................................................................... 10 20. Audit..................................................................................................................................13 21. Equal Employement Opportunity, Affirmative Action, and Notification of Employee RightsUnder the NLRA..................................................................................................... 14 22. Prohibited Relationships with Sanctioned Countries and Persons .................................. 15 23. Conflict of Interest and Gift Restrictions.......................................................................... 15 24. Use of Metropolitan's Name............................................................................................ 16 25. Termination.......................................................................................................................16 26. Force Majeure Events....................................................................................................... 16 City of Santa Ana i Agreement No. 189280 20C-6 27. Notices .......................................... 28. Severability.................................... 29. Jurisdiction and Venue .................. 30. Waiver ........................................... 31. Entire Agreement .......................... 32. Joint Drafting ................................. Signature Page .......................................... Exhibit A —Scope of Work Exhibit B — Sample Invoice Exhibit C— Semi-annual Progress Reports Exhibit D — Final Report Format Exhibit E—ACORD Form or Equivalent City of Santa Ana ................................................ 17 ................................................ 18 ................................................ 18 ................................................ 18 ................................................ 18 ................................................ 19 ................................................ 20 Agreement No. 189280 20C-7 THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA AGREEMENT NO. 189280 FOR FUTURE SUPPLY ACTIONS FUNDING PROGRAM This Agreement is between THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, a public agency of the State of California, organized and existing under The Metropolitan Water District Act of the State of California, hereinafter referred to as Metropolitan, and CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California, hereinafter referred to as Agency. Explanatory Recitals 1. Metropolitan is a public agency of the State of California engaged in transporting, storing, and distributing water in the counties of Los Angeles, Orange, Riverside, San Diego, San Bernardino, and Ventura, within the State of California. 2. This Agreement is entered into with Agency in response to a 2018 Request for Proposals (RFP) for Future Supply Actions Funding Program, dated July 6, 2018, as an approach to fund Metropolitan member agency studies and research under this program as approved in Board Letter 8-6 dated April 10, 2018. Metropolitan, through its Future Supply Funding Program (FSA Funding Program), provides funding to member agencies for technical studies or pilot projects that reduce barriers to future production of recycled water, stormwater, seawater desalination, and groundwater resources. Metropolitan convened a technical review panel that reviewed and scored each proposal submitted by Metropolitan member agencies in accordance with the criteria and weight identified in the RFP. Board Letter 9-2 dated December 11, 2018, describes the final RFP selection process. Agency was selected through this RFP process. Metropolitan and Agency agree to enter into an agreement for the RESTORATION OF LOCAL RECHARGE SOURCES FROM INVASIVE DREISSENID MUSSELS study, hereinafter referred to as Study. City of Santa Ana 1 Agreement No. 189280 20C-8 3. Metropolitan desires to enter into this agreement with the Agency, and Agency desires to perform the work according to the terms set forth hereinafter. Terms of Agreement 1. Scope of Work a. Metropolitan hereby engages Agency to perform the work described in detail in the Scope of Work, attached hereto as Exhibit A. b. Agency shall provide study deliverables according to the schedule as set forth in Exhibit A. Each task identified in Exhibit A shall have a clearly defined deliverable, date for completion of task, and associated cost for each task. C. Agency may adjust task descriptions, task budget amounts, and task schedules in Exhibit A, from time to time, upon written notice to and approval by Metropolitan; however, Agency must certify that any such adjustments do not materially change the basic scope of work, the scheduled final Study completion date, and/or the Maximum Cost to Metropolitan as identified in this Agreement. d. Agency shall be responsible for verifying completion of a consultant's or sub -consultants work in accordance with Exhibit A. 2. Time and Term Time is of the essence in the performance of services under this Agreement. This Agreement is in effect from May 7, 2019 through December 31, 2021, subject to earlier termination pursuant to Section 25 Termination below. 3. Agreement Administrators a. In performing the work under this Agreement, Agency shall coordinate all contact with Metropolitan through its Agreement Administrator. For purposes of this Agreement, Metropolitan designates Mr. Don Bentley as the Agreement Administrator. Metropolitan reserves the right to change this designation upon written notice to Agency. City of Santa Ana 2 Agreement No. 189280 20C-9 b. For purposes of this Agreement, Agency designates Mr. Nabil Saba, Water Resources Manager, as the Agreement Administrator for the Agency. Agency reserves the right to change this designation upon written notice to Metropolitan. 4. Independent Contractor Agency agrees to complete the Scope of Work detailed in Exhibit A under this Agreement in the capacity of an independent contractor and neither Agency and its participating entities, consultants, and sub -consultants nor any of their employees shall be considered to be an employee or agent of Metropolitan. Participating entities are other public and private entities, separate from Agency, which Agency has indicated are participating in the study, as identified in Exhibit A. 5. Consultants and Sub -consultants a. Agency shall be responsible to Metropolitan for all work to be performed under this Agreement. All consultants and sub -consultants and their billing rates shall be approved by the Agency and shall be reflected in consultant and sub -consultant invoices submitted by Agency to Metropolitan. Agency shall be liable and accountable for any and all payments or other compensation to all consultants and sub -consultants performing services under any Agency agreement that is necessary and applicable to the performance and completion of this Agreement. Metropolitan shall not be liable for any payment or other compensation for any consultants or sub -consultants. b. Agency's contracts with consultants and sub -consultants shall require consultants and sub -consultant to maintain Workers' Compensation and Automobile Liability insurance as required by the State of California and include the following articles: Intellectual Property, Nonuse of Intellectual Property of Third Parties, Audit, Indemnity and Equal Employment Opportunity and Affirmative Actions as set forth in this Agreement. C. As applicable, Agency's use of consultants and sub -consultants shall adhere to the requirements of Metropolitan's Business Outreach Program as provided herein. City of Santa Ana 3 Agreement No. 189280 20C-10 6. Metropolitan's Maximum Amount Payable and Reimbursement Procedure a. Metropolitan's payment for the study is not to exceed $122,796 or fifty (50) percent of the total cost expended per task as established in Exhibit A, whichever is less. Agency shall be responsible for all costs in excess of Metropolitan's match payment. b. Agency must include documentation in the invoice that it did reimburse responsible parties for the costs in the invoice period. The invoice should include a cover letter with a brief summary of the work completed under the costs invoiced and a discussion of any milestones reached or problems encountered during the period invoiced. C. For each invoice, Metropolitan will pay up to seventy-five (75) percent of eligible reimbursable costs and will withhold twenty-five (25) percent of eligible reimbursable costs in retention until a final report is submitted and accepted by Metropolitan. Agency shall promptly notify the Agreement Administrator, in writing, when fees and expenses incurred under this Agreement have reached $92,100 (75% of maximum amount allowable). d. In -kind services are not eligible for reimbursement and shall not be included in Agency invoices to Metropolitan. In -kind services include, but are not limited to, work performed by staff of Agency or staff of Agency's participating entities contributing funding to Study, and related expenses (e.g., travel, overhead, etc.). e. Eligible costs include work starting no earlier than May 7, 2019, which is in compliance with the requirements of this Agreement and as set forth in Exhibit A. f. All invoices related to the Study must be submitted by Agency to Metropolitan by August 31, 2021 to be considered for payment under the provisions of this agreement. Invoices received after August 31, 2021 will not be paid unless Metropolitan, in its sole discretion, grants Agency, in writing, an extension of time to complete the work and submit its invoices. 7. Billings and Payments a. Agency shall submit monthly invoices to Metropolitan's Accounts Payable Section, whose email address is AccountsPayableBusiness@mwdh2o.com, and provide a copy to the Agreement Administrator at dbentley@mwdh2o.com. Agency address change must be City of Santa Ana 4 Agreement No. 189280 20C-11 submitted in writing to Metropolitan's Professional Services Contracting Team, at AgreementAddressChangePmwdh2o.com. Without proper notification of an address change, Agency's invoice payment may be delayed. b. The individual listed in the agreement as Agency's Agreement Administrator or other identified designee shall sign and certifythe invoice to be true and correct to the best of his/her knowledge. i. Agency is to provide all the relevant information required by Exhibit B — Sample Invoice, attached to this Agreement, when submitting its invoices to Metropolitan. ii. Agency's consultant and sub -consultant labor charges shall be itemized by date of service, employee name, title/classification, corresponding labor rate, number of hours worked, description of work performed, total amount due for labor charges, and shall include the following affirmation: "By signing this invoice, Agency certifies that work described herein is an accurate and correct record of services performed for Metropolitan under this agreement and this work has not been billed on any other client or study partner invoices." iii. Invoices shall itemize allowable expenses and include receipts for which reimbursement is sought for any items over Ten Dollars ($10.00). Attached receipts should itemize each cost and provide descriptive information so that expenses are separately identified. iv. Agency shall attach a copy of each consultant and sub -consultant invoice for which reimbursement is sought. Consultant's and sub -consultants invoices shall set forth the actual rates and expenses charged to Agency. C. Subject to the approval of the Agreement Administrator, Metropolitan shall make payment to Agency 45 days after date of the invoice. Metropolitan will reject incomplete and inaccurate Agency invoices and will return such invoices to Agency within 45 days after the date of the invoice. In such cases of rejected invoices, Agency will submit a new, corrected invoice with a new invoice number and new date. Metropolitan will not approve payment to Agency City of Santa Ana 5 Agreement No. 189280 20C-12 until a full, complete, and accurate invoice has been submitted. Agency's invoices submitted 90 days after completion of work, may be delayed or not paid. d. The final invoice shall be clearly marked "FINAL INVOICE." It shall be submitted after the final report is accepted by Metropolitan and should include a request for the release of the 25 percent retention. S. Reporting Requirements a. Agency shall submit to Metropolitan semi-annual progress reports within 45 days of the end of the preceding six month periods, in accordance with the reporting schedule in Exhibit A and Agency shall include, at a minimum, the items listed in Exhibit C, Semi-annual Progress Report Format. Agency shall document all activities and expenditures to date in the semi-annual reports. The submittal of these reports is a requirement for ongoing disbursement of funds. b. Agency shall prepare and submit to Metropolitan, upon completion of the Study, a Final Report, which shall include, at a minimum, the items listed in Exhibit D, Final Report Format. The Final Report shall be provided in hard copy 3 copies and in digital format prior to final payment of funds retained by Metropolitan. C. Agency shall prepare and deliver a presentation on the findings of the study during a concluding symposium scheduled and organized by Metropolitan. d. Failure of an Agency to submit progress reports or the final report within the timeframe established in Exhibit A or within any authorized extension of time will be a breach of this Agreement. 9. Business Outreach Program It is the policy of Metropolitan Water District to solicit participation in the performance of all construction, professional services, procurement contracts, supplies, and equipment procured by Metropolitan by all individuals and businesses, including but not limited to small businesses, locally owned businesses, women, minorities, disabled veterans, and City of Santa Ana 6 Agreement No. 189280 20C-13 economically disadvantaged enterprises. In performing services under this Agreement, Agency shall endeavor to further this policy whenever practicable. 10. Successors and Assignment This Agreement covers professional services of a specific and unique nature. Except as otherwise provided herein, Agency, including its participating entities, consultants, and sub -consultants, shall not assign or transfer its interest in this Agreement. 11. Use of Materials Metropolitan will make available to Agency such materials from its files as may be required by Agency to perform services under this Agreement. Such materials shall remain the property of Metropolitan while in Agency's possession. Upon termination of this Agreement and payment of outstanding invoices of Agency, or completion of work under this Agreement, Agency shall turn over to Metropolitan any property of Metropolitan in its possession and any calculations, notes, reports, electronic files, or other materials prepared by Agency in the course of performing the services under this Agreement. 12. Intellectual Property a. All intellectual property pursuant to this Agreement shall be owned by Agency and Agency hereby grants Metropolitan and its member public agencies a perpetual, nonexclusive license, at no cost, to use the intellectual property developed in the course of the work performed under this Agreement by Agency or any contractor and consultant working on Study as described in Exhibit A. As used herein, the term "intellectual property" includes, but is not limited to, all inventions, patents, copyrightable subject matter, copyrights, test data, trade secrets, other confidential information and software. b. Agency agrees that all results produced in the performance of this Agreement may be released to the public. C. Metropolitan may utilize any material prepared or utilize work performed by Agency pursuant to this Agreement, including computer software, in any manner which City of Santa Ana 7 Agreement No. 189280 20C-14 Metropolitan deems proper without additional compensation to Agency. Agency shall have no responsibility or liability for any revisions, changes, or corrections made by Metropolitan, or any use or reuse pursuant to the paragraph unless Agency accepts such responsibility in writing. d. Agency shall include the following language in its agreement with any consultant or contractor retained by Agency to work on the Study: "All intellectual property developed pursuant to this Agreement is owned by Agency. As used herein, the term 'intellectual property' includes, but is not limited to, all inventions, patents, copyrightable subject matter, copyrights, test data, trade secrets, other confidential information and software created or prepared pursuant to this agreement." e. Agency shall promptly notify Metropolitan, in writing, of all intellectual property conceived or developed in the course of Agency's work for Metropolitan under this Agreement. 13. Nonuse of Intellectual Property of Third Parties Agency shall not use, disclose or copy any intellectual property of any third parties in connection with work carried out under this Agreement, except for intellectual property for which Agency has a license. Agency shall indemnify and hold Metropolitan harmless against all claims raised against Metropolitan based upon allegations that Agency has wrongfully used intellectual property of others in performing work for Metropolitan. 14. Representations Each Party represents that it is represented by legal counsel, that it has reviewed this Agreement and agrees that: a. This Agreement is legally enforceable; b. Payments made by Metropolitan to Agency pursuant to this Agreement are a legal use of Metropolitan's funds; and, C. Metropolitan may legally recover the costs incurred by Metropolitan pursuant to this Agreement in the water rates charged to its Member Agencies, including Agency. City of Santa Ana 8 Agreement No. 189280 20C-15 15. Legal Requirements Agency shall secure and maintain all licenses or permits required by law and shall comply with all ordinances, laws, orders, rules, and regulations pertaining to the work. 16. Guarantee and Warranty a. Agency guarantees and warrants that the work shall be performed and completed in accordance with generally accepted industry standards, practices, and principles applicable to the work. b. Metropolitan's representatives shall at all times have access to the work for purposes of inspecting same and determiningthat the work is being performed in accordance with the terms of this Agreement. 17. Access to Metropolitan Premises a. At least two business days in advance of any work to be performed on Metropolitan premises, Agency shall provide to the Agreement Administrator the names of its personnel or sub -consultant personnel requiring access to Metropolitan premises, intended work locations, and durations of work. The Agreement Administrator shall provide to the Security team manager or his designee written notification listing the names of the individuals requiring access, explaining the business need for these individuals to receive the requested access, and reflecting his/her approval. Except in extraordinary circumstances, all work on Metropolitan's premises shall be scheduled during Metropolitan's normal working days and hours. Metropolitan shall make a good faith effort to accommodate Agency's request, however, Metropolitan's operations and other conflicts may require rescheduling all or part of Consultant's work. 18. Indemnity a. Agency assumes all risk of injuryto its employees, agents, consultants, sub - consultants, and contractors, including loss or damage to property, in the performance of this Agreement, except for those losses due to Metropolitan's negligence, recklessness or willful misconduct. City of Santa Ana 9 Agreement No. 189280 20C-16 b. Agency shall defend, indemnify, and hold harmless Metropolitan, its Board of Directors, officers, employees, and agents from and against all claims, suits, or causes of action for injury to any person or damage to any property to the proportionate extent arising out of, pertaining to, or related to Agency's and its participating entities', consultants', and sub - consultants negligence, recklessness or willful misconduct in the performance of this Agreement, including any claims, suits, or causes of action by any employee of the Agency and its participating entities, consultants, and sub -consultants relating to his or her employment status with Metropolitan and/or rights to employment benefits from Metropolitan. 19. Insurance a. Agency shall procure and maintain for the duration of this Agreement insurance, or a program of self insurance, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Agency and its participating entities, consultants, and sub -consultants, and their agents, representatives, or employees. b. Agency shall sustain proof of insurance coverage in an updated ACORD form (attached hereto as Exhibit E), or equivalent, and incorporated by reference, during the term of this Agreement. Failure to provide the updated insurance ACORD form, or equivalent, annually may result in the withholding of Agency's invoice payment. Agency shall list the agreement number on the ACORD form, or equivalent, and email to Metropolitan's Agreement Administrator at dbentley@mwdh2o.com and a copy to Aereementlnsurance@mwdh2o.com or fax to 213-576-6158. C. Minimum Scope of Insurance Coverage shall be at least as broad as: i. Insurance Services Office Commercial Liability coverage (occurrence Form CG0001). ii. Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1, (any auto). City of Santa Ana 10 Agreement No. 189280 20C-17 Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. iv. Professional Liability or Errors and Omissions Liability insurance appropriate to the Agency's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability." d. Minimum Limits of Insurance Agency shall maintain limits no less than: i. General Liability: Including operations, products and completed operations as applicable, $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the study or location, or the general aggregate limit shall be twice the required occurrence limit. property damage. ii. Automobile Liability: $1,000,000 per accident for bodily injury and iii. Workers' Compensation: Shall be furnished in accordance with statutory requirements of the State of California and shall include Employer's Liability coverage of $1,000,000 per accident for bodily injury or disease. iv. Professional Liability or Errors and Omissions Liability: $1,000,000 per claim, with a $2 million aggregate. e. Deductibles and Self -Insurance Retentions: Any deductibles or self - insured retentions must be declared to and approved by Metropolitan. At the option of Metropolitan, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respect to Metropolitan, its officers, officials, employees, agents and volunteers; or the Agency shall provide a financial guarantee satisfactory to Metropolitan guaranteeing payment of losses and related investigations, claim administration and defense expenses. City of Santa Ana 11 Agreement No. 189280 20C-18 f. Verification of Coverage: Agency shall furnish Metropolitan with original certificates and amendatory endorsements affecting coverage required by this clause. The endorsements and certificates are to be received and approved by Metropolitan prior to the commencement of work. Metropolitan reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting coverage, and coverage binders required by these specifications at any time. g. Acceptability of Insurers: Insurance is to be placed with California admitted insurers with a current A.M. Best's rating of no less than A:VIII. A non -admitted carrier may be used with prior approval from Metropolitan, with an A.M. Best rating of no less than A: X. an exception to these standards will be made forthe State Compensation Insurance Fund when not specifically rated. h. General Liability and Automobile Liability Endorsements: The commercial general liability policy and automobile policies are to contain, or be endorsed to contain, the following provisions: Metropolitan, its officers, officials, employees and agents are to be covered as additional insureds as respect to liability arising out of work or operations performed by or on behalf of the Agency; or automobiles owned, leased, hired or borrowed by the Agency. ii. For any claims related to this study, the Agency's insurance coverage shall be primary insurance as respect to Metropolitan, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by Metropolitan, its officers, officials, employees or agents shall be excess of the Agency's insurance and shall not contribute with it. iii. Each insurance policy required by this clause shall not be canceled by either party, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to Metropolitan. City of Santa Ana 12 Agreement No. 189280 20C-19 iv. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. Other Endorsements and Insurance Provisions All rights of subrogation under the property insurance policy (if the policy is required) have been waived against Metropolitan. ii. The workers' compensation insurer, agrees to waive all rights of subrogation against Metropolitan for injuries to employees of the insured (Agency) resulting from work for Metropolitan or use of Metropolitan's premises or facilities. iii. If General Liability, Pollution and/or any Asbestos Pollution Liability and/or professional liability or Errors & Omissions coverage are written on a claims -made form: 1) The "Retro Date" must be shown, and must be before the date of the contract or the beginning of contract work. 2) Insurance must be maintained for at least five (5) years after completion of the contract work. On Metropolitan's request, Agency shall provide evidence of insurance verifying that coverage is/was in effect during said five-year period. 3) If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a "Retro Date" prior to the contract effective date, the Agency must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work. 4) A copy of the claims reporting requirements must be submitted to Metropolitan for review if requested. 20. Audit a. Agency shall be responsible for ensuring the accuracy and propriety of all billings and shall maintain all supporting documentation for the period specified below. City of Santa Ana 13 Agreement No. 189280 20C-20 b. Metropolitan will have the right to audit Agency's invoices and all supporting documentation for purposes of compliance with this Agreement during the term of this Agreement and for a period of three years following completion of services under this Agreement. i. Agency shall be responsible for maintaining the supporting documentation for a period of three years following completion of services under this agreement C. Upon reasonable notice from Metropolitan, Agency shall cooperate fully with any audit of its billings conducted by Metropolitan and shall permit access to its books, records and accounts as may be necessary to conduct such audits. 21. Equal Employment Opportunity, Affirmative Action. and Notification of Employee Rights Under the NLRA Metropolitan is an equal opportunity employer and a federal contractor. Consequently, the parties agree that, as applicable, they will abide by the requirements of 41 CFR 60-1.4(a), 41 CFR 60-300.5(a), and 41 CFR 60-741.5(a) and that these regulations are incorporated herein by reference. These regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities and prohibit discrimination against all individuals based on their race, color, religion, sex, or national origin. These regulations require that covered prime contractors and subcontractors take affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex, national origin, protected veteran status, or disability. The parties additionally agree that, as applicable, they will abide by the written affirmative action program requirements of 41 CFR 60- 1.40, 41 CFR 60-300.40, and 41 CFR 60-741.40. The parties also agree that, as applicable, they will abide by the requirements of Executive Order 13496 (29 CFR Part 471, Appendix A to Subpart A), relating to the notice of employee rights under federal labor laws. The parties further agree that, as applicable, they will abide by the requirements of Federal Acquisition Regulation Clauses 52.222-26 (Equal Opportunity), 52.222-35 (Equal Opportunity for Veterans), 52.222-36 (Affirmative Action for Workers with Disabilities), and 52.222-40 (Notification of Employee Rights Under the National Labor Relations Act) and that these regulations are incorporated herein by City of Santa Ana 14 Agreement No. 189280 20C-21 reference. Agency agrees to submit to Metropolitan evidence of compliance with this section, as applicable, within 30 days of a request. 22. Prohibited Relationships with Sanctioned Countries and Persons Agency represents and warrants that both 1) Agency, and 2) to Agency's knowledge, its directors, officers, employees, subsidiaries, participating entities, consultants, and sub -consultants, are not engaged in any business transactions or other activities prohibited by any laws, regulations or executive orders relating to terrorism, trade embargoes or money laundering ("Anti -Terrorism Laws"), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the "Executive Order"), the Patriot Act, and the regulations administered by the Office of Foreign Assets Control ("OFAC") of the U.S. Department of Treasury, including those parties named on OFAC's Specially Designated Nationals and Blocked Persons List. Agency is in compliance with the regulations administered by OFAC and any other Anti -Terrorism Laws, including the Executive Order and the Patriot Act. In the event of any violation of this section, Metropolitan shall be entitled to immediately terminate this Agreement and take such other actions as are permitted or required to be taken under law or in equity. 23. Conflict of Interest and Gift Restrictions a. Agency represents that it has advised Metropolitan in writing prior to the date of signing of this Agreement of any known relationships with a third party, Metropolitan's Board of Directors, or employees which would (1) present a conflict of interest with the work performed under this Agreement, (2) prevent Agency from performing the terms of this Agreement, or (3) present a significant opportunity for the disclosure of confidential information. b. Agency is hereby notified that Sections 7130 and 7131 Metropolitan's Administrative Code, the California Political Reform Act ("PRA") and regulations of the Fair Political Practices Commission ("FPPC") prohibit Metropolitan Board members, officers and employees from receiving or agreeingto receive, directlyor indirectly, any compensation, reward or gift from any source except from his or her appointing authority or employer, for any action related to the conduct of Metropolitan's business, except as specifically provided in the City of Santa Ana 15 Agreement No. 189280 20C-22 Administrative Code Sections 7130 and 7131, the PRA and FPPC regulations. Agency agrees not to provide any prohibited compensation, reward or gift to any Metropolitan Board member, officer or employee. 24. Use of Metropolitan's Name Agency and its participating entities, consultants, and sub -consultants shall not publish or use any advertising, sales promotion, or publicity in matters relating to services, equipment, products, reports, and material furnished by Agency and its participating entities, consultants, and sub -consultants in which Metropolitan's name is used, or its identity implied without the Agreement Administrator's prior written approval. This provision survives the termination of this Agreement. 25. Termination a. Metropolitan may terminate this Agreement with or without cause by providing written notice to Agency not less than thirty days prior to an effective termination date. Metropolitan's only obligation in the event of termination will be payment of fees and expenses incurred, including any retainage withheld by Metropolitan, in conformity with this Agreement up to and including the effective date of termination. b. Agency may terminate this Agreement with or without cause by providing written notice to Metropolitan not less than thirty days prior to an effective termination date. Metropolitan's only obligation in the event of termination will be payment of fees and expenses incurred in conformity with this Agreement up to and including the effective date of termination. C. This Agreement may be terminated by Metropolitan upon written notice to the Agency if work on the Study has not started by January 31, 2020. 26. Force Maieure Events a. Excuse to Performance: In addition to specific provisions of the Agreement, lack of performance by any Party shall not be deemed to be a breach of this Agreement, where delays or defaults are due to acts of God, or the elements, casualty, strikes, City of Santa Ana 16 Agreement No. 189280 20C-23 lockouts, or other labor disturbances, acts of the public enemy, orders or inaction of any kind from the government of the United States, the State of California, or any other governmental, military or civil authority (other than Metropolitan, or another party to this Agreement), war, insurrections, riots, epidemics, landslides, lightning, droughts, floods, fires, earthquakes, civil disturbances, freight embargoes, or any other inability of any Party, whether similar or dissimilar to those enumerated or otherwise, which are not within the control of the Party claiming such inability or disability, which such Party could not have avoided by exercising due diligence and care and with respect to which such Party shall use all reasonable efforts that are practically available to it in orderto correct such condition (such conditions being herein referred to as "Force Majeure Events"). b. Responding to Force Majeure Events: The Parties agree that in the event of a Force Majeure Event which substantially interferes with the implementation of this Agreement, the Parties will use their good faith efforts to negotiate an interim or permanent modification to this Agreement which responds to the Force Majeure Event and maintains the principles pursuant to which this Agreement was executed. 27. Notices Any notice or communication given under this Agreement shall be effective when deposited, postage prepaid, with the United States Postal Service and addressed to the contracting parties as follows: Metropolitan Water District of Southern California Post Office Box 54153 Los Angeles, CA 90054-0153 Attention: Mr. Don Bentley City of Santa Ana 20 Civic Center Plaza Santa Ana, CA Attention: Clerk of Council With copy to: Executive Director, Public Works Agency (at same address) Either party may change the address to which notice or communication is to be sent by providing advance written notice to the other party. City of Santa Ana 17 Agreement No. 189280 20C-24 28. Severability If any provision of this Agreement shall be held illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby. 29. Jurisdiction and Venue This Agreement shall be deemed a contract under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Both parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the proper venue of any action brought thereunder is and shall be Los Angeles County, California. 30. Waiver No delay or failure by either party to exercise or enforce at any time any right or provision of this Agreement shall be considered a waiver thereof or of such party's right thereafter to exercise or enforce each and every right and provision of this Agreement. A waiver to be valid shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver. 31. Entire Agreement a. This writing contains the entire agreement of the parties relating to the subject matter hereof; and the parties have made no agreements, representations, or warranties either written or oral relating to the subject matter hereof which are not set forth herein. Except as provided herein, this Agreement may not be modified or altered without formal amendment thereto. b. Notwithstanding the foregoing, and to realize the purpose of this Agreement, the Agreement Administrator may issue a written modification to the Scope of Work, if this modification will not require a change to any other term of this Agreement. City of Santa Ana 18 Agreement No. 189280 20C-25 32. Joint Drafting Both parties have participated in the drafting of this Agreement. City of Santa Ana 19 Agreement No. 189280 20C-26 Signature Page IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date last written below. CITY OF SANTA ANA- - - -- - - THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA By: Kristine Ridge City Manager By: Fuad Sweiss, PE, PLS Executive Director Of Public Works Agency Date: APPROVED AS TO FORM: Sonia Carvalho City Attorney By: SI 0 PlM �W, JoFaM.Funk Assistant City Attorney Date: ATTEST 0 Daisy Gomez Clerk of the Council Bv: Jeffrey Kightlinger General Manager By: Brad Coffey Manager, Water Resource Management Date: APPROVED AS TO FORM: Marcia L. Scully General Counsel By: Deputy General Counsel Date: City of Santa Ana 20 Agreement No. 189280 20C-27 Exhibit A- Scope of Work Restoration of Local Recharge Sources from Invasive Dreissenid Mussels 2.0 Study Objective The purpose of the Study is to evaluate a potential treatment method, other than desiccation, that can be used to eradicate existing quagga mussel infestations and prevent the potential spread of quagga mussels. If such a method is identified, it could lead to restoring the use of facilities for recharge of local water sources, such as stormwater. 2.0 Background Information In January 2007, quagga mussels (Dreissena bugensis) were discovered at a marina in the Nevada portion of Lake Mead, and two other lakes on the Colorado River, Lake Mohave and Lake Havasu. Soon thereafter, the mussels spread through the Metropolitan Water District of Southern California's (MWD's) Colorado River Aqueduct (CRA) as far south as Lake Skinner, near Temecula. As of December 2017, quagga mussels have been detected in 43 locations in California. So far, State Water Project (SWP) aqueducts and reservoirs have not been impacted, although there were detections of quagga mussels in Pyramid Lake and other areas of the SWP in December 2016. To minimize the spread of quagga mussels, MWD chlorinates CRA water, starting at Copper Basin reservoir, close to the eastern end of the CRA and at other locations, such as Lake Matthews. Despite this effort, quagga mussels have infested reservoirs used for capture of local runoff as well as rivers, streams and canals used to convey both local supplies and imported supplies to groundwater replenishment facilities. This is important because multiple entities that recharge local water sources, such as storm water, use many of the same facilities to recharge imported water. As a result, the presence of quagga mussels presents a barrier to the efficient use of these dual use facilities and has affected the ability to maximize the capture and recharge of local supplies, such as storm water. As an example, Irvine Lake, which is owned and operated by the Irvine Ranch Water District (IRWD), receives both imported CRA water and local storm flow. Downstream of Irvine Lake are OCWD's Santiago Basins which are open gravel pits that were converted to groundwater replenishment facilities in the early 1990s. In the 1990s, water from Irvine Lake was discharged to Santiago Basins via Santiago Creek for groundwater replenishment. These deliveries are no longer possible due to the presence of the quagga mussel in Irvine Lake and the potential for infesting Santiago Creek and Santiago Basins. On the San Gabriel River, multiple entities, including the Main San Gabriel Basin Watermaster and the Water Replenishment District of Southern California (WRD) divert storm water from the San Gabriel River into spreading grounds adjacent to the river. In October 2017, MWD found quagga mussels in the San Gabriel Riverthat came from deliveries of MWD water. Although steps were taken to desiccate the river and prevent the spread of quagga mussels, it is possible that 20C-28 further infestations will occur and hamper the use of the San Gabriel River and associated spreading facilities for the capture and recharge of local storm water. In the Santa Clara River watershed, United Water Conservation District (UWCD) captures storm flows from the Piru Creekwatershed in Lake Piru, as well as imports a small amount of SWP water from Pyramid Lake. UWCD then releases the stored water in late summer, recharging the downstream groundwater basins, including the coastal Oxnard Plain. When Lake Piru became infested with quagga mussels in late 2014, the California Department of Fish and Wildlife (CDFW) ordered UWCD to limit discharges to downstream recharge facilities, to limit the spread of quagga mussels. UWCD's downstream recharge facilities are the primary source for the cities of the Oxnard Plain, which are also served by MWD via its member agency Calleguas Municipal Water District (Calleguas). Groundwater has historically provided approximately half of the water for this portion of Calleguas' service area. Quagga mussel -induced limitations on UWCD's groundwater recharge will shift additional burden onto Calleguas and MWD. UWCD is currently working with CDFW, U.S. Fish and Wildlife, and National Marine Fisheries Service to develop an eradication plan for Lake Piru using EarthTec QZ that could potentially be implemented within the next few years. California Department of Fish and Wildlife Regulations The California Department of Fish and Wildlife (CDFW) has a mandate to prevent the spread of quagga mussels. As a result, CDFW requires the preparation of Dreissenid Mussel Monitoring, Response and Control Plans (Plan) for any facility that is impacted. Desiccation is the primary method of mitigating for quagga mussel infestations. Although desiccation can work for isolated spreading grounds, it is less feasible in rivers and streams and impossible in large reservoirs unless they can be fully drained. For OCWD, the Plan contains a requirement that OCWD use imported water for recharge only in basins that can be desiccated (dried out) for two weeks. In addition, these basins must be drained and dried prior to the storm season to prevent potential conveyance of quagga mussels -laden water to other basins or to the Santa Ana River. Moreover, one of the most effective recharge facilities, the Santa Ana River, cannot be fully utilized because it cannot be fully desiccated. These restrictions present a barrier to both the recharge of imported water and the capture of storm water, which reduces the recharge of local supplies and the overall efficiency of groundwater replenishment operations. The recharge of imported and storm water are considered together because OCWD, as with other entities, use their facilities for storage, conveyance and recharge of both sources of supply. The WRD has also been affected by the potential for infestations of waterways used to convey both imported and storm water by quagga mussels. The Los Angeles County Department of Public Works (LACDPW) owns the conveyance and spreading facilities used by WRD for the recharge of storm water, recycled water and imported water. Due to the potential for quagga mussel infestations, imported deliveries from the Colorado River have not been approved by LACDPW for many years. When deliveries were made in 2017, an infestation of quagga mussels was found in the San Gabriel River in October 2017 even though the supplies were mostly from the SWP. 20C-29 Restoring Local Recharge Sources The purpose of the Study is to evaluate a potential treatment method, other than desiccation, that can be used to eradicate existing quagga mussel infestations and prevent the potential spread of quagga mussels. In 2016, Trussell conducted an extensive literature review for OCWD of potential treatment technologies for the quagga mussel, including free chlorine, chloramines, ozone, ultraviolet radiation, and potassium permanganate. Proprietary molluscicides were not considered in this Study. Trussell found that the literature contains many studies examining treatment for adult mussels, but limited research on veligers. The veliger stage is the final larval stage of the quagga mussel, when they are mobile, having two ciliated flaps for swimming and feeding. Of the treatment methods examined, chlorine, chloramine and ozone were found to have promise; however, they present several challenges, such as needing quenching prior to discharge to a stream or river (chlorine, chloramine), formation of disinfection byproducts (chlorine), and high capital costs (ozone). In fact, one of the constraints that MWD faces with chlorine dosing at Lake Matthews is the formation of disinfection byproducts. An alternative method of treating for quagga mussels is EarthTec QZ, which is an EPA -registered molluscicide for prevention and control of quagga and zebra mussels. This product has been shown to be effective in eradicating quagga mussels and veligers in samples obtained from Lake Mead. Based on the Lake Mead study, an EarthTec QZ concentration of 3 mg/L, which produces a copper concentration of 0.18 mg/L, resulted in complete veliger mortality within 30 minutes. The effectiveness of EarthTec QZ and moderate cost, which is estimated at $20/acre-feet (for EarthTec QZ concentration of 3 mg/L), suggest that it has the potential be a cost-effective method to safely treat impacted sources of water, such as local reservoirs and imported water supplies; however, site -specific testing is needed to develop the proper dose required in local sources and to obtain approval by CDFW. Eventual approval by CDFW will allow for expanded use of currently infested facilities and open the use of facilities that are not currently infested, which would reduce barriers to groundwater replenishment, including the recharge of local supplies such as storm water. 3.0 Study Description OCWD staff, along with Trussell, would conduct the Study. In general terms, the Study will test the response of quagga veligers to various doses of EarthTec QZ at five locations: Lake Matthews, OCWD's OC-28 connection in Anaheim, Lake Piru, MWD connection CenB-28, and one other location to be determined. Live veligers would be collected at each location. Subsets of the collected veligers would be exposed to different concentrations of EarthTec QZ and their response would be monitored overtime. This work would be conducted in existing or temporary field labs located at or near where the veliger samples are collected. This is important to minimize the potential for veliger die -off during transport. In addition to examining the effectiveness of EarthTec QZ on quagga veligers, the Study includes an assessment of the toxicity of EarthTec QZ for aquatic species — other than quagga veligers. This work will be conducted in parallel with the dose -response veliger testing. Trussell will consult with aquatic microbiology experts, CDFW staff, review available literature, and examine regulations to evaluate the water quality impacts of EarthTec QZ. 20C-30 Up to eight meetings are budgeted to ensure there is maximum collaboration with all Study stakeholders at all stages of the Study. Participating Entities and Supporting Entities Participating entities include: • Orange County Water District • Water Replenishment District of Southern California • United Water Conservation District • Main San Gabriel Watermaster • Central Basin Municipal Water District • California Department of Fish and Wildlife (CDFW) • California Department of Water Resources (DWR) All the listed entities above, except for CDFW and DWR, are contributing financially to this Study. CDFW and DWR are contributing staff time and providing technical assistance to the Study. 4.0 Description of Tasks Task 1 Evaluation of EarthTec QZ Veliger Treatment Bench scale testing will be completed at five surface water locations to establish quagga mussel veliger dose -response curves with exposure to EarthTec QZ and determine the lowest concentration that could be used to kill quagga veligers. Testing is proposed at: • Lake Matthews, • OCWD's OC-28 connection in Anaheim, • Lake Piru, and; • MWD's CenB-28 connection • One additional site to be identified in cooperation with Study partners. Each site will be assessed for any available documentation of seasonal changes in veliger populations, and sample collection and testing will be scheduled to target periods of high veliger populations. Samples of raw surface water and quagga mussel veligers will be collected from each of the surface water sites with plankton tow nets. To minimize veliger die -off, all veliger dose -response tests will be completed in field lab space close to the collection sites, with water and veliger samples collected on the same day. Veliger samples will first be assessed for density of live (physically moving or tissue movement of veliger), dead (cracked shells or degraded tissue), or empty shell (with no tissue and only shell remaining). If veliger concentrate contains >1% dead to live veliger density, the plankton collection will not be used. The veliger concentrate will be divided into testing beakers to achieve approximately 100 to 200 live veligers per test replicate, ranging in size from D-shaped (>63 µm) 20C-31 to pediveligers (< 300 µm). If the veliger population size is not large enough to achieve desired densities, at least 30 veligers will be tested per replicate. Four exposure doses of EarthTec QZ will be investigated and a control will be included for each duration, with a maximum of three exposure durations. At least three replicates per exposure dose and duration will be completed and will be tested at a maximum of two temperatures. Once the exposure duration for each test condition is complete, the proportion of live and dead quagga mussels will be analyzed with fast green stain. In addition to the veliger assessment, each test beaker will be evaluated for copper (total and dissolved), dissolved oxygen, conductivity, pH, and temperature at the start of the experiment and at the end of the exposure time. Raw surface water samples will be monitored for total organic carbon (TOC), copper (total and dissolved), dissolved oxygen, conductivity, pH, and temperature. Task 2 Toxicity Assessment An assessment of the toxicity of EarthTec QZ for aquatic species — other than quagga veligers — present in the surface water will be completed in parallel with the dose -response veliger testing (Task 1). Trussell will consult with aquatic microbiology experts, CDFW staff, review available literature, and examine regulations to evaluate the water quality impacts of EarthTec QZ. In conjunction with Task 1 testing, surface water samples will be collected and dosed with EarthTec QZ to assess water quality impacts and toxicity. Slides will be prepared to communicate the proposed test plan. The toxicity testing will include up to three replicates with two doses of EarthTec QZ and assessment of toxicity for two aquatic indicator species. Task 3 Proiect Management The projectteam will work closely with OCWD and funding partners to coordinate testing events, provide updates of Study results, and communicate progress on Study activities. Trussell will attend up to eight meetings with project partners and prepare slides to communicate results and progress. Project staff will provide a presentation of the sudy findings at a symposium being held by MWD. 20C-32 5.0 Deliverables Submittal Due Task/Subtask Deliverables Date Task 1, Evaluation of EarthTec QZ Veliger Dose -Response Test Plan Q3 2019 Veliger Treatment Technical Memorandum Q42020 Test Plan (slides) Q3 2019 Task 2, Toxicity Assessment Technical Memorandum 2 Q4 2020 Draft Report Q2 2021 Tasks 1, 2 Final Reporting Final Report Q3 2021 Symposium Presenation Fall 2021 Task 3, Project Management Slides for project meetings Various 6.0 Cost Estimate Total Study Requested Task No. Task Description Cost Metropolitan Funding Match Task 1, Bench scale testing at five surface water locations Evaluation of to establish quagga mussel veliger dose -response EarthTec QZ curves with exposure to EarthTec QZ and $154,180 $77,090 Veliger determine the lowest concentration that could be Treatment used to kill quagga veligers. Task 2, An assessment of the toxicity of EarthTec QZ for Toxicity aquatic species —other than quagga veligers — aquatic $62,228 $31,114 Assessment present in the surface water will be completed in with the dose -response veliger testing. Coordinate testing events, provide updates of Task 3, Study results, and communicate progress on Project Study activities. Host eight meetings with project $29,184 $14,592 .Management partners and prepare slides to communicate results and progress. Totals $245,592 $122,796 20C-33 7.0 Schedule A r P Jul Oct Apr P Jul Oct Apr Jul Oct Jan- - Jan- - Jan- - - - Mar Jun $e Dec Mar Jun Se Dec Mar Jun Se Dec P P P 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Task Task Name 1 Collect and compile available data 1 Develop Draft Veliger Dose Response Test Plan 1 Stakeholder Review Meeting 1 1 Finalize Veliger Dose Response Test Plan Conduct Field 1 Sampling/Dose Response Testing 1 Compile Results Semi -Annual Progress 1,2 Report 2019 No. 1 (May 2019 — December 2019) 1 Conduct Additional Sampling (If needed) Semi -Annual Progress 1,2 Report 2020 No. 1 (January 2020—JuneIm 2020) 1 Compile Season 2 Results (If needed) 1 Stakeholder Review ' Meeting 3 (If needed) w 1 Prepare Draft Technical4.=:: Memorandum 1 ; - A 1 Review Draft Technical Memorandum 1 1 Submit Final Technical Memorandum 1 r Semi -Annual Progress F=-. 1,2 Report 2020 No. 2 (Julys, 2020 — December 2020). 2 Develop Toxicity Test Plan 2 Stakeholder Review Meeting 1 20C-34 Jan- Apr Jul - Oct Jan- Apr Jul - Oct Jan- Apr - Jul - Oct - Mar Jun $e Dec Mar Jun $e Dec Mar Jun Se Dec P P P 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Task Task Name 2 Finalize Toxicity Test Plan 2 Conduct Toxicity Testing 2 Compile Results 2 Stakeholder Review Meeting 2 2 Conduct Additional Testing (If needed) 2 Compile Season 2 Results (If needed) 2 Stakeholder Review Meeting 3 (If needed) 2 Prepare Draft Technical Memorandum 2 2 Review Draft Technical Memorandum 2 2 Submit Final Technical Memorandum 2 1,2 Draft Final Report 1,2 Final Report 3 Symposium Presentation of Study Findings 3 Project Management *First Semi -Annual Report of 2019 will include a summary of work conducted in May -June 2019. 20C-35 Reporting Schedule • Semi -Annual Progress Report 2019 No. 1* (May 2019 — December 2019) .. February 15, 2020 • Semi -Annual Progress Report 2020 No. 1 (January 2020—June 2020)............ August 15, 2020 • Semi -Annual Progress Report 2020 No. 2 (July 2020— December 2020) ..... February 15, 2021 DraftFinal Report ...........................................................................................................May 31, 2021 FinalReport ........................................................................................................... July 31, 2021 • Agency presentation on study findings at concluding symposium .............................. Fall 2021 *First Semi -Annual Report will include a summary of work conducted in May -June 2019. 20C-36 Exhibit B- Sample Invoice BILL TO INVOICE Metropolitan Water District of Southern California Accounts Payable Section P.O. Box 54153 Los Angeles, CA 90054-0153 AccountsPaVableBusiness@mwdh2o.com AGENCY NAME INVOICE DATE INVOICE NUMBER INVOICE PERIOD ADDRESS STUDY NAME CONTACT CONTACT PHONE AGREEMENT NUMBER MAXIMUM AWARD AMOUNT AMOUNT PREVIOUSLY INVOICED AWARD AMOUNT REMAINING ITEMIZED EXPENSES TASK DETAILED DESCRIPTION (e.g., consultant costs and hours, materials and supplies, lab costs, etc.) COST TOTAL COSTS TOTAL ELIGIBLE COSTS (UP TO 50% OF TOTAL COSTS) RETENTION (25% of total eligible reimbursable costs) TOTAL ELIGIBLE REQUEST - RETENTION BY SIGNING THIS INVOICE, AGENCY CERTIFIES THAT WORK DESCRIBED HEREIN IS AN ACCURATE AND CORRECT RECORD OF SERVICES PERFORMED FOR METROPOLITAN UNDER THIS AGREEMENT AND THIS WORK HAS NOT BEEN BILLED ON ANY OTHER CLIENT OR STUDY PARTNER INVOICES. STUDY MANAGER 20C-37 O F C ZC W m 2 W W CmC V G (� Z a Z W Q Z } 0 N �— ba W = L v L 7 O N w O N O Ln O c v go N N O Y 10 N m 3 ammo c } Ln a10. f0 a N Ln y p a c o C J Y w •10 O m a J � V O in H FW.. g O l7 W O 2 `x a 0 uu Z p V Z K Z C LL a3: I LLI W Q m s W F a 0 W m a Q OaQaxui3 > LLI m (7 W Q CA Z Z W 7l7mOJC'> E V z u Z u z W uj V m J m CCO LL O mt�za° V = IA; O W m �ucc p W O a > j u -- N � O m W Z U Lu m CCO 1' O a a W W j z u— o a LU CO CW C J Q Z Z O N Z ~ Qa V U > > Z Z W W z z u u z z 0 O J J z z z W cr 2 IY F m 3 W Na. co CW C � W u > g V rAVlMbX%Zo] Exhibit C— Semi-annual Progress Reports Agency shall include, at minimum, the following items in the Semi -Annual Progress Reports. 1. Cover Letter Provide a brief description of the submittal, including the amount invoiced in the respective invoice period, a list of items being submitted, and contact information. The letter must be signed and include the following language: "I am informed and believe that the information contained in this report is true and that the supporting data is accurate and complete." 2. Semi -Annual Progress Report 2.1 Study Status a) Describe work performed during the semi-annual period, by task. b) Describe major accomplishments, such as: i. Tasks achieved ii. Milestones met and deliverables completed iii. Meetings held or attended iv. Press release, etc. c) Where applicable, describe how the activities carried out differed from the plans outlined in the Study Scope of Work. Identify any problems encountered in the performance of the work under this Agreement, and how these matters were addressed. d) If the semi-annual period's objectives were not met, explain why and how these goals will be approached for the next reporting period. 2.2 Cost Information a) Identify costs incurred during the quarter by Agency and each partnering/supporting entity working on the Study. b) Discuss how the actual budget is progressing in comparison to the latest Study budget. Describe any differences that occurred, identifying budget impacts and/or problems encountered, and describe how these matters will be addressed forthe next reporting period. c) Provide a revised budget, by task, if changed from the latest Study budget. 2.3 Schedule Information a) Provide a Study schedule showing actual progress versus planned progress from the latest schedule. b) Discuss how the actual schedule is progressing in comparison to the latest Study schedule. Justify any differences that occurred, identifying schedule impacts and/or problems encountered, and describe how these matters will be addressed forthe next reporting period. c) Provide a revised schedule, by task, if changed from the latest Study schedule. 20C-39 Exhibit D — Final Report Format Agency shall include, at minimum, the following items in the Final Report. 1. Cover Letter Provide a brief description of the submittal, including the total amount of funds disbursed, a list of items being submitted, and contact information. The letter must be signed and include the following language: "1 am informed and believe that the information contained in this report is true and that the supporting data is accurate and complete." 2. Final Report 2.1 Executive Summary a) Briefly summarize the content of the main report. 2.2 Introduction a) Provide an overview of the work performed and accomplishments achieved throughout the duration of the Study. b) Briefly describe the findings of the study. c) Describe the role/involvement of each partnering/supporting entity and their relationship to the Study. 2.3 Cost Summary a) Include a summary of the costs incurred and of funds disbursed throughout the duration of the Study. b) Provide a comparison between the planned budget in the Agreement and the actual budget. Justify any differences that occurred, identifying budget impacts and/or problems encountered, and how these matters were addressed. 2.4 Schedule Summary a) Include a summary of all tasks accomplished throughout the duration of the Study. b) Provide a comparison between the planned schedule in the Agreement and the actual schedule. Justify any differences that occurred, identifying schedule impacts and/or problems encountered, and how these matters were addressed. 2.5 Study Results and Analysis a) Describe and provide an analysis of the Study results and findings in detail. b) Were the Study goals and objectives as proposed achieved? Explain. c) Discuss any major problems that occurred in meeting the Study goals and objectives, including how, and if, they were resolved. d) Explain how the findings of the Study can be applied to other areas of the region. What types of obstacles, if any, would be anticipated before implementation/application can occur, and how could these matters be addressed? 2.6 Conclusion a) Describe lessons learned. b) Describe the next steps of the Study (e.g., applicability of the results, topics that may require additional research, new programs that should be developed, policy amendments, etc.). 20G-40 Exhibit E—ACORD Form or Equivalent ACORDT.11 CERTIFICATE OF ISSUE DATE (INAVDDNI) INSURANCE PYWIIY! IRIS CERTIFICATE IS ISSUED AS A AIATIER OF INTOR\IA•TION ONLY AND CONFERS NO RIGHTS UPON THECERTIFICATE HOLDER "US CERTIFICATE DOES NOT AVIEN'D, L'\TEND OR ALTER THE COVERAGE AFFORDED BY DIE POLICIES REI.OIY. COMPANIES AFFORDING COVERAGE C—M-Y CODE SUB.CODE Lew A INSURED C-191y LIRA n C—f-Iy 1.010 C C.M.y Lma D COVERAGES THIS IS TO CERTIFY THAT IE POLICIESOF 1N, RA\CE LISTEU IILLG%V HAVE BEE,N ISSULD TO D IL INSURED NAMED ABOVE FOR TUR POLICY PERIOD1\DIGTTED.NOnWTIISTANDINGAWREQUIREAENT.TERMMM\ InONOFANYCONTRACMODIERDOCUNIENTMUIRESPECT TO 1V11101 TIES RRTIFICATF NUY BE ISSUED OR MAY PERTAIN. Mir INSURANCE: AFFORDED BY TILE POLICIES DESCRIRED HEREIN IS SUBJECT TO ALL WE TER\IS. EXCLUSIONS AND CONDITION. OF SUCH POLICIES. LIMITS SHOD N MAY HAW BEEN REDUCCD BY PAID CJ.AI?IS. CO 11YE 0I1�1CRw\CC WIIR POLICY YMS LYR :NmL i]TLCYn4 CITTRATO\ R DtYL MT[ nDIDd1Y1 nU1DDYY) GE,NE"LLLABILIT' uF.,'wL.wu.Viuwre t ❑ COMMERCIAL GLNLT-%L LIA U IIY }AOWLT.�N}9/OW AOOC£OATc' y CLAINISMADE [3 C R. i`ROJxALAAnvtSi:smu RL'S.tY s MVNERSA EAelacnrea:¢ CONDUCTORS PROF, T.4ECI`JAOE wIx<r_Fo-E) t As"ECALEJ90.:a LLNYOIJEPG'.SOyJ i LWIIILIfI' 6t. 9 " t ❑A\Y 13ANYAUTO ¢oDir IVTO ❑A D+ranY IEDULEDAUTOS ❑ SCI IIDULm ADIOS 6atiERSGli1 t ❑ HIRED AUTOS WD1Y ❑ NON�O%VN1D AUTOS ❑ GARAGE LIABILITY ciswcc�Evn ..y ani a EXCESS LIABILITY EAs'I+ ❑ UABRELLA FORAI warann;a s ODIERnEAN UV BRIiLLA FOR\I Awr.EOArE s WORKERS CONIPI:NS.iDON/ s ATTfIORY t ENIPLOYERSLIABILITY s O'ACII ACCIIIE[RJ p AND 5 MMEASE-POLICY LN(D ENTLOYERS' LIABILITY 3 NLSFASE'FACII EIPLOYEE) Gn1FR t p EPxoRSAN„ovvliuoYs t cnnlr:0 DI<IMONTnM.m UESCWP110N OEOPFR\nONS,lA('ADOASTI]IICLLSRISTRICDONSSPECI.V.IlEVLS METROPOLITAN, ITS OFFICERS, OFFICIALS. ENIPLOYEES AND AGENTS ARE TO BE COVERED AS INSUREDS. INSURANCE VEWFIIiD ON 11115 CERTIFICATi'IS APPLICABLE TO AGRF NEAT NO. CERTIFICATEHOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED BEFORE THE Nltvepolitm A'aa Diaia ds.1hVR 6lif.ia EXPIRAMONDATE D IEREOF. THE ISSUING CONIPA\Y HILL ENDEAVOR TO NIAL P.O. D. 4153. Tmnm:J AIVRX DAYSRR1T NNOMCETODIE: CERMFICATIiHOLDERNAVEDTOTIE Loa N£els CdifDmia 9014 LEFT. DUTFALURE lD ALVL SUCH NOnCE S11:LLL L\IPOSE XOOBLIGd-DONOR LIABILITY OF ANY KIND UPON 11II7 COMPANY. In AGENTS OR REPRESENTATIVES, AUTHORIZEDREPRESENTATIVE �IORO 1CORII CORPoRATWYI9P 20C-41 20C-42 EXHIBIT 2 AGREEMENT BETWEEN CITY OF SANTA ANA AND ORANGE COUNTY WATER DISTRICT FUTURE SUPPLY ACTIONS FUNDING PROGRAM OCWD AGREEMENT NUMBER 2629/022499-0003 13498849.12.08/01/19 20C-43 TABLE OF CONTENTS Page 1. Scope of Work..................................................................................................................2 2. Time and Term..................................................................................................................2 3. Agreement Administrators................................................................................................2 4. Independent Contractor.....................................................................................................3 5. Consultants and Sub-consultants......................................................................................3 6. City,'s Maximum Amount Payable and Reimbursement Procedure.................................3 7. Billings and Payments.......................................................................................................4 8. Reporting Requirements...................................................................................................5 9. Business Outreach Program.............................................................................................. 5 10. Successors and Assignment..............................................................................................5 11. Use of Materials................................................................................................................5 12. Intellectual Property..........................................................................................................6 13. Nonuse of Intellectual Property of Third Parties..............................................................6 14. Representations.................................................................................................................7 15. Legal Requirements..........................................................................................................7 16. Guarantee and Warranty ...................................................................................................7 17. Indemnity .......................................................................................................................... 7 18. Insurance........................................................................................................................... 8 19. Audit................................................................................................................................. 8 20. Prohibited Relationships with Sanctioned Countries and Persons ................................... 8 21. Conflict of Interest and Gift Restrictions..........................................................................9 22. Use of Metropolitan's Name.............................................................................................9 23. Termination.......................................................................................................................9 24. Force Majeure Events.......................................................................................................9 25. Notices............................................................................................................................10 26. Severability .....................................................................................................................10 27. Jurisdiction and Venue....................................................................................................10 28. Waiver.............................................................................................................................10 29. Entire Agreement............................................................................................................11 30. Dispute Resolution..........................................................................................................11 31. Service Marks and Trademarks......................................................................................11 32. Joint Drafting..................................................................................................................11 Exhibit A- Scope of Work Exhibit B- Sample Invoice Exhibit C - Semi-annual Progress Reports Exhibit D - Final Report Format 2629/022499-0003 13498849.12.08101119 -I- 20C-44 THE CITY OF SANTA ANA FOR FUTURE SUPPLY ACTIONS FUNDING PROGRAM This Agreement is between the CITY OF SANTA ANA, a charter city of the State of California, organized and existing under the Constitution of the State of California, hereinafter referred to as City, and ORANGE COUNTY WATER DISTRICT, hereinafter referred to as OCWD. Explanatory Recitals 1. City is a local municipal agency chartered under the Constitution of the State of California. 2. This Agreement is entered into between City and OCWD, a special act district duly organized and existing in the State of California pursuant to the Orange County Water District Act ("OCWD Act"), and the City. 3. The Metropolitan Water District ("Metropolitan") is a public agency of the State of California, organized and existing under The Metropolitan Water District Act, hereinafter referred to as Metropolitan. City is a member agency of Metropolitan. 4. On August 28, 2018, City working together with OCWD responded to a 2018 Metropolitan Request for Proposals ("RFP") for Future Supply Actions Funding Program ("FSA Funding Program"), dated July 6, 2018, to obtain funding from Metropolitan to conduct studies and research under the Program as approved in Board Letter 8-6 dated April 10, 2018. 5. Metropolitan, through its FSA Funding Program, provides funding to member agencies for technical studies or pilot projects that reduce barriers to future production of recycled water, stormwater, seawater desalination, and groundwater resources. Metropolitan convened a technical review panel that reviewed and scored each proposal submitted by Metropolitan member agencies in accordance with the criteria and weight identified in the RFP. Board Letter 9-2 dated December 11, 2018, describes the final RFP selection process. City was selected through this RFP process. Metropolitan and City have entered, or will enter, into an agreement (the "FSA Agreement") for funding of a study entitled RESTORATION OF LOCAL RECHARGE SOURCES FROM INVASIVE DREISSENID MUSSELS, hereinafter referred to as "Study." 6. OCWD is not a Metropolitan member agency but has significant expertise regarding recycled water, stormwater, seawater desalination, and groundwater resources and has assisted City in developing the proposal for the Study. Thus, OCWD has the expertise, facilities, equipment, and technical expertise necessary to conduct the Study in coordination with the City in accordance with the FSA Agreement and all other applicable requirements. 7. City desires OCWD to perform the Study as described in the Scope of Work, Costs, and Schedule attached hereto and incorporated herein as Exhibit A, and OCWD desires to complete the Study in conformance with Metropolitan's requirements and grant conditions. The Study governed by this Agreement is of mutual interest to OCWD and City, and furthers City's 2629/022499-0003 13498849.12 a08/01/19 1 20C-45 goals of conducting technical studies or pilot projects that reduce barriers to future production of recycled water, stormwater, seawater desalination, and groundwater resources pursuant to the RFP. 8. City desires to enter into this agreement with OCWD, and OCWD desires to perform the Study according to the terms set forth hereinafter. 9. Therefore, in reliance on the commitments and obligations set forth herein, and with the intention of being legally bound hereby, the parties agree as follows: Terms of Agreement 1. Scope of Work a. City hereby engages OCWD to perform the work described in detail in the Scope of Work, Costs, and Schedule attached hereto as Exhibit A. b. OCWD shall provide Study deliverables according to the schedule as set forth in Exhibit A. Each task identified in Exhibit A shall have a clearly defined deliverable, date for completion of task, and associated cost for each task. C. To the extent authorized by City's FSA Agreement with Metropolitan, OCWD may adjust task descriptions, task budget amounts, and task schedules in Exhibit A, from time to time, upon written notice to and approval by City; however, OCWD must certify that any such adjustments do not materially change the basic scope of work, the scheduled final Study completion date, and/or the Maximum Cost to City as identified in this Agreement. d. OCWD shall be responsible for verifying completion of a consultant or sub -consultant's work in accordance with Exhibit A. 2. Time and Term Time is of the essence in the performance of services under this Agreement. This Agreement is in effect from May 7, 20T9;-through December 31, 2021, subject to earlier termination pursuant to Section 23 Termination below. 3. Agreement Administrators a. In performing the work under this Agreement, OCWD shall coordinate all contact related to the Study with Metropolitan's Agreement Administrator unless otherwise directed by City. For purposes of this Agreement, Metropolitan's Agreement Administrator is Mr. Don Bentley or such other person as Metropolitan designates per the FSA Agreement. For purposes of this Agreement, OCWD designates Mr. Adam Hutchinson. as the Agreement Administrator for OCWD, and City designates Nabil Saba, Water Resources Manager, as Agreement Administrator for City. OCWD and City both reserve the right to change this designation upon written notice to each other. 2629/022499-0003 13498849.12 a08/01/19 2 20C-46 4. Independent Contractor OCWD agrees, as consultant or participating entity to City, to complete the Study detailed in Exhibit A under this Agreement in the capacity of an independent contractor and neither OCWD, or its participating entities, consultants, and sub -consultants, nor any of their employees, shall be considered to be an employee or agent of City or Metropolitan. 5. Consultants and Sub -consultants a. OCWD shall be responsible to City for all work to be performed under this Agreement. All consultants and sub -consultants of OCWD, and their billing rates, shall be approved by OCWD and shall be reflected in consultant and sub -consultant invoices submitted by OCWD to City for transmittal to Metropolitan. OCWD will prepare applicable invoices for City to submit to Metropolitan for reimbursement per the requirements of the FSA Agreement. OCWD shall be liable and accountable for any and all payments or other compensation to all consultants and sub -consultants performing services under any OCWD agreement that is necessary and applicable to the performance and completion of this Agreement, which governs the Metropolitan funded components of the Study. b. OCWD's contracts with consultants and sub -consultants related to conduct of the Study shall, where determined appropriate by OCWD, include the same insurance requirements as those specified in section 18 of this Agreement, and shall also include provisions governing intellectual property, nonuse of intellectual property of third parties, the auditing process, appropriate indemnity provisions, and applicable equal opportunity and affirmative action policies. As applicable, OCWD's use of consultants and sub -consultants shall adhere to the requirements of Metropolitan's and City's Business Outreach Program as provided herein. 6. City's Maximum Amount Payable and Reimbursement Procedure a. All costs of the Study are intended to be borne by entities other than the City. OCWD shall act as City's Consultant/Participating Entity for purposes of performing work approved by Metropolitan in the FSA Agreement, and shall coordinate the overall Study, to include the MWD funded and non-MWD funded portions of the Study. The total cost of the Study is estimated to be $245,592, approximately 50% of which will be funded by the MWD FSA Grant. The other 50% of the total Study cost, the "non-MWD share," will be funded by OCWD and other funding partners. City's aforementioned obligation to reimburse shall not exceed the total of eligible reimbursable costs submitted by OCWD nor the City's total grant from Metropolitan under the FSA Agreement. OCWD shall be responsible for all costs in excess of City's FSA grant from Metropolitan. b. OCWD agrees to reimburse City for the cost of any additional insurance City is required to obtain in order to comply with the insurance mandates of the FSA Agreement. C. OCWD must include documentation in the monthly invoices provided to City that OCWD did reimburse or otherwise compensate responsible parties for eligible costs incurred during the invoice period. The invoice should include a cover letter with a brief summary of the work completed for the costs invoiced and a discussion of any milestones reached or problems encountered during the period invoiced. 2629/022499-0003 13498849.12 a08/01/19 3 2 U C-47 d. OCWD shall provide each month to City a draft invoice and draft cover letter for City to submit to Metropolitan's Agreement Administrator so that City may be timely reimbursed by Metropolitan for expenses associated with the Study. The draft cover letter shall be on the City's letterhead with any other markings necessary to identify the invoice and cover letter as having been submitted by the City to Metropolitan per the requirements of the FSA Agreement. e. For each eligible invoice, City will reimburse OCWD seventy-five percent (75%) of eligible reimbursable costs and will withhold twenty-five percent (25%) of eligible reimbursable costs in retention until a final report is submitted to and accepted by Metropolitan. OCWD shall promptly notify the Agreement Administrator, in writing, when fees and expenses incurred under this Agreement have reached $92,100 (75% of maximum amount allowable). f. In -kind services provided by OCWD and City staff are not eligible for reimbursement under the FSA Agreement, and therefore are ineligible for reimbursement under this Agreement, and they shall not be included in invoices that OCWD prepares for City to submit to Metropolitan. In -kind services include, but are not limited to, work performed by staff of City, OCWD, and employees of any participating entity identified in the FSA Agreement, as well as related expenses for such agency staff (e.g., travel, overhead, etc.). g. Eligible costs include work starting no earlier than May 7, 2019, which is in compliance with the requirements of this Agreement and within scope of the Study approved by Metropolitan in the FSA Agreement. h. All invoices related to the Study must be submitted by OCWD to City sufficiently in advance of to allow City to submit all invoices pertaining to the Study to Metropolitan on or before August 31, 2021. OCWD acknowledges that invoices submitted to Metropolitan after August 31, 2021, will not be paid unless Metropolitan, in its sole discretion, grants City, in writing, an extension of time to complete the work and submit OCWD's invoices. 7. Billings and Payments a. Unless authorized by Metropolitan to directly invoice Metropolitan for costs of the Study, OCWD shall submit monthly invoices to City per the requirements of paragraph 6 of this Agreement and per Paragraphs 6 and 7 of the FSA Agreement in a format that will readily facilitate City's submission of the City's monthly invoice and cover letter to Metropolitan. OCWD's Agreement Administrator, or his/her designee, shall sign and certify each invoice submitted to City to be true and correct to the best of their knowledge. OCWD's invoices as shown in Exhibit B, shall be submitted monthly to City and shall include all applicable information required by Section 7.b of the FSA Agreement. b. City may reject incomplete and inaccurate OCWD invoices and will return such invoices to OCWD within 30 days after the date of the incomplete/inaccurate invoice. In cases of rejected invoices, OCWD will submit a new, corrected invoice with a new invoice number and new date. OCWD invoices submitted 90 days after completion of work, may be delayed or not paid. C. The final invoice submitted following completion of the Study shall be clearly marked "FINAL INVOICE" by City. It shall be submitted to Metropolitan by City after 2629/022499-0003 13498849.12.08/01/19 4 20C-48 the final report from the Study is accepted by Metropolitan and should include a request by City for the release of the 25 percent retention. Reporting Requirements a. OCWD shall draft and submit to City all documents and reports necessary for City to comply with section 8 of the FSA Agreement, including a Semi-annual Progress Report as shown in Exhibit C, and to meet all timelines established in Exhibit A of the FSA Agreement. The City will submit these reports to Metropolitan per the FSA Agreement after preparation by OCWD. OCWD shall prepare all reports and associated materials required by this section, and such reports shall be accompanied by an appropriate draft cover letter on City letterhead that the City can submit to Metropolitan with any required reports in accordance with pertinent milestones required by the FSA Agreement and Exhibit A thereto. b. OCWD shall prepare and deliver a presentation on behalf of City on the findings of the study during a concluding symposium to be scheduled and organized by Metropolitan. C. Failure of OCWD to submit deliverables within the timeframes established in Exhibit A and the FSA Agreement, or any extension of time authorized by Metropolitan, may delay or eliminate OCWD's ability to obtain reimbursement of otherwise eligible costs associated with the Study. 9. Business Outreach Program It is the policy of Metropolitan to solicit participation in the performance of all construction, professional services, procurement contracts, supplies, and equipment procured by Metropolitan by all individuals and businesses, including but not limited to small businesses, locally owned businesses, women, minorities, disabled veterans, and economically disadvantaged enterprises. In performing services under this Agreement, City, and therefore OCWD, shall endeavor to further this policy whenever practicable. 10. Successors and Assignment This Agreement covers professional services of a specific and unique nature. Except as otherwise provided herein, OCWD, including its participating entities, consultants, and sub -consultants, shall not assign or transfer its interest in this Agreement without first obtaining the written consent of City and Metropolitan. 11. Use of Materials City will make available to OCWD such materials City obtains from Metropolitan as may be required by OCWD to perform services under this Agreement. Such materials shall remain the property of Metropolitan while in OCWD's possession. Upon termination of this Agreement and payment of outstanding invoices of OCWD, or completion of work under this Agreement, OCWD shall turn over to City and/or Metropolitan any property of Metropolitan in OCWD's possession and any calculations, notes, reports, electronic files, or other materials prepared by OCWD in the course of performing the services under this Agreement. 2629/022499-0003 13998849.12 a08/01119 S 2 U C-49 12. Intellectual Property a. All intellectual property produced by OCWD or City pursuant to this Agreement in the performance of the Study shall be owned by City, which has granted Metropolitan and its member public agencies a perpetual, nonexclusive license, at no cost, to use the intellectual property developed in the course of the work performed under this Agreement by City or any contractor and consultant working on the Study as the Study is described in Exhibit A. As used herein, Metropolitan directs that the term "intellectual property" includes, but is not limited to, all inventions, patents, copyrightable subject matter, copyrights, test data, trade secrets, other confidential information and software created as a result of the Study funded by Metropolitan herein. b. City and OCWD agree that all results produced in the performance of this Agreement may be released to the public. C. City and OCWD agree that Metropolitan may utilize any material prepared or utilize work created by the City or OCWD pursuant to this Agreement, including non- proprietary computer software, in any manner which Metropolitan deems proper without additional compensation to City or OCWD. City shall have no responsibility or liability for any revisions, changes, or corrections made by Metropolitan, or any use or reuse pursuant to the paragraph unless City accepts such responsibility in writing. d. All intellectual property developed pursuant to this Agreement is owned by City. As used herein, the term `intellectual property' includes, but is not limited to, all inventions, patents, copyrightable subject matter, copyrights, test data, trade secrets, other confidential information and software created as a result of the Study authorized herein. C. City recognizes that the results of the work performed under this Agreement may be published by OCWD. City agrees that OCWD employees engaged in work for the Exhibit A scope will be free to present at symposia or professional meetings, and to publish in journals, theses or dissertations, or otherwise of their own choosing, methods and results of the work performed under this Agreement. Upon written request by City, copies of proposed manuscripts will be furnished to City for review prior to publication. In no event will OCWD delay publication for more than thirty (30) days from date of submittal of manuscript for City review. OCWD shall submit a Final Report in the format shown in Exhibit D. 13. Nonuse of Intellectual Property of Third Parties OCWD and City agree not to use, disclose or copy any intellectual property of any third parties in connection with work carried out under this Agreement, except for intellectual property for which OCWD, City or their consultants/subconsultants have a license or other legal permission to use. OCWD shall indemnify, defend, and hold City and Metropolitan harmless against all claims raised against City based upon allegations that OCWD has wrongfully used intellectual property of others in performing the work authorized by this Agreement. 26291022499-0003 13498849.12 a08101119 6 20C-50 14. Representations Each Party represents that it is represented by legal counsel, that it has reviewed this Agreement and agrees that: a. This Agreement is legally enforceable; b. Payments made by City to OCWD pursuant to this Agreement are a legal use of City's funds; and, C. To the best of City's and OCWD's understanding, Metropolitan may legally recover the costs incurred by City pursuant to this Agreement in the water rates charged to Metropolitan's Member Agencies. 15. Legal Requirements OCWD shall secure and maintain all licenses or permits required by law and shall comply with all ordinances, laws, orders, rules, and regulations pertaining to the work authorized by this Agreement. 16. Guarantee and Warranty a. OCWD guarantees and warrants that, to the best of its understanding, the work OCWD and/or its consultants/subconsultants perform shall be performed and completed in accordance with generally accepted industry standards, practices, and principles applicable to the work. b. City and OCWD agree that Metropolitan's representatives shall at all times have access to the work funded by the FSA Agreement for purposes of inspecting same and determining that the work is being performed in accordance with the terms of this Agreement and the FSA Agreement. 17. Indemnity a. OCWD assumes all risk of injury to its employees, agents, consultants, sub - consultants, and contractors, including loss or damage to property, in the performance of this Agreement, except for those losses due to City's or Metropolitan's negligence, recklessness or willful misconduct. b. OCWD shall defend, indemnify, and hold harmless City, its City Council, officers, employees, and agents from and against all claims, suits, or causes of action for injury to any person or damage to any property to the proportionate extent arising out of, pertaining to, or related to OCWD's and its participating entities', consultants', and sub -consultants' negligence, recklessness or willful misconduct in the performance of this Agreement. In addition, in the event that OCWD or any employee, agent, or subcontractor of OCWD providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, OCWD shall indemnify, defend, and hold harmless City for the payment of any employee 2629/02249941003 13498949.12 a08/01/19 7 20C-51 and/or employer contributions for PERS benefits on behalf of OCWD or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. 18. Insurance OCWD will obtain all such insurance as Metropolitan may reasonably direct OCWD to carry, if any, as a consultant and/or participating entity of City for purposes of preparing the Study approved and authorized by the FSA Agreement. OCWD further agrees to reimburse City for the costs of any additional insurance coverage City is required to obtain or carry in order to satisfy the insurance obligations of City under the FSA Agreement between City and Metropolitan. 19. Audit a. OCWD shall be responsible for ensuring the accuracy and propriety of all billings and shall maintain all supporting documentation for the period specified below. b. City will have the right to audit OCWD's invoices and all supporting documentation for purposes of compliance with this Agreement during the term of this Agreement and for a period of three years following completion of services under this Agreement. C. OCWD shall be responsible for maintaining the supporting documentation for a period of three years following completion of services under this agreement. d. Upon reasonable notice from City, OCWD shall cooperate fully with any audit of its billings conducted by City and shall permit access to its books, records and accounts as may be necessary to conduct such audits. 20. Prohibited Relationships with Sanctioned Countries and Persons OCWD represents and warrants that both 1) OCWD, and 2) to OCWD's knowledge, its directors, officers, employees, subsidiaries, participating entities, consultants, and sub -consultants, are not engaged in any business transactions or other activities prohibited by any laws, regulations or executive orders relating to terrorism, trade embargoes or money laundering ("Anti -Terrorism Laws"), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the "Executive Order"), the Patriot Act, and the regulations administered by the Office of Foreign Assets Control ("OFAC") of the U.S. Department of Treasury, including those parties named on OFAC's Specially Designated Nationals and Blocked Persons List. OCWD is in compliance with the regulations administered by OFAC and any other Anti -Terrorism Laws, including the Executive Order and the Patriot Act. In the event of any violation of this section, City shall be entitled to immediately terminate this Agreement and take such other actions as are permitted or required to be taken under law or in equity. 2629/022499-0003 13498849.12 a08/01/19 8 20C-52 21. Conflict of Interest and Gift Restrictions a. OCWD represents that it has advised City in writing prior to the date of signing of this Agreement of any known relationships with a third party and the Metropolitan Board and/or Metropolitan employees which would: (1) present a conflict of interest with the work performed under this Agreement; (2) prevent OCWD or City from performing the terms of this Agreement, or (3) present a significant opportunity for the disclosure of confidential information. b. OCWD, as a public agency, shall comply with all applicable requirements of the California Political Reform Act ("PRA") and regulations of the Fair Political Practices Commission ("FPPC") as well as all other applicable ethical standards or limitations promulgated by Metropolitan and/or the City. OCWD agrees not to provide any prohibited compensation, reward or gift to any Metropolitan Board member, officer or employee, or to any City Council member, officer or employee. 22. Use of Metropolitan's Name City, OCWD, and their participating entities, consultants, and sub -consultants shall not publish or use any advertising, sales promotion, or publicity in matters relating to services, equipment, products, reports, and material furnished by City and its participating entities, consultants, and sub -consultants in which Metropolitan's name is used, or its identity implied without Metropolitan's Agreement Administrator's prior written approval. This provision survives the termination of this Agreement. 23. Termination Either party may at any time terminate this Agreement by giving the other party not less than thirty (30) days prior written notice. In the event of termination, City shall remain responsible for payment of fees and expenses incurred by OCWD in conformity with this Agreement and for invoices submitted by OCWD for work performed on the Study prior to the date of termination. 24. Force Mai eure Events a. Excuse to Performance: In addition to specific provisions of the Agreement, lack of performance by any Party shall not be deemed to be a breach of this Agreement, where delays or defaults are due to acts of God, or the elements, casualty, strikes, lockouts, or other labor disturbances, acts of the public enemy, orders or inaction of any kind from the government of the United States, the State of California, or any other governmental, military or civil authority (other than City, or another party to this Agreement), war, insurrections, riots, epidemics, landslides, lightning, droughts, floods, fires, earthquakes, civil disturbances, freight embargoes, or any other inability of any Party, whether similar or dissimilar to those enumerated or otherwise, which are not within the control of the Party claiming such inability or disability, which such Party could not have avoided by exercising due diligence and care and with respect to which such Party shall use all reasonable efforts that are practically available to it in order to correct such condition (such conditions being herein referred to as "Force Majeure Events"). 2629/022499-0003 13498849.12 a08/01/19 20C9 53 b. Responding to Force Majeure Events: The Parties agree that in the event of a Force Majeure Event which substantially interferes with the implementation of this Agreement, the Parties will use their good faith efforts to negotiate an interim or permanent modification to this Agreement which responds to the Force Majeure Event and maintains the principles pursuant to which this Agreement was executed. 25. Notices Any notice or communication given under this Agreement shall be effective when deposited, postage prepaid, with the United States Postal Service and addressed to the contracting parties or delivered via overnight courier as follows: Mail: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92702 Attention: Clerk of Council (M-30) With copies to: Executive Director, Public Works (at the same address) Mail: Orange County Water District Post Office Box 8300 Fountain Valley, CA 92728-8300 Attention: Mr. Adam Hutchinson Overnight Courier: Orange County Water District 18700 Ward Street Fountain Valley, CA 92708 Attention: Mr. Adam Hutchinson Either party may change the address to which notice or communication is to be sent by providing advance written notice to the other party. 26. Severability If any provision of this Agreement shall be held illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby. 27. Jurisdiction and Venue This Agreement shall be deemed a contract under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Both parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the proper venue of any action brought thereunder is and shall be Orange County, California. 28. Waiver No delay or failure by either party to exercise or enforce at any time any right or provision of this Agreement shall be considered a waiver thereof or of such party's right thereafter to exercise or enforce each and every right and provision of this Agreement. A waiver to be valid 2629/022499-0003 13498849.12 a08/01/19 10 20C-54 shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver. Waiver by either party of any breach or default of any clause of this Agreement by the other party will not operate as a waiver of any previous or future default or breach of the same or different clause of this Agreement 29. Entire Agreement This writing contains the entire agreement of the parties relating to the subject matter hereof, and the parties have made no agreements, representations, or warranties either written or oral relating to the subject matter hereof which are not set forth herein. Except as provided herein, this Agreement may not be modified or altered without formal amendment thereto. 30. Dispute Resolution In the event of any dispute, claim, question, or disagreement arising from or relating to this Agreement or a breach thereof, the parties hereto will use reasonable efforts to settle the dispute, claim, question, or disagreement. The parties will consult and negotiate with each other in good faith and in recognition of their mutual interests, and make an attempt to strive for an equitable solution which will satisfy both parties. 31. Service Marks and Trademarks Neither party will use any service marks, registered trademarks, logos or other marks of the other party without the express written approval of the other party. 32. Joint Drafting Both parties have participated in the drafting of this Agreement. 2629/0224".0003 13498849.12.08,01119 2 U C -5 5 Signature Page IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date last written below. ORANGE COUNTY WATER DISTRICT CITY OF SANTA ANA By: By: Michael R. Markus, P.E. Kristine Ridge General Manager City Manager Vicente Sarmiento Board President Approved as to form: Approved as to Form Sonia R. Carvalho City Attorney By: By: 004 lkl, Jeremy N. Jungreis Jo M. Funk General Counsel Assistant City Attorney Attest M Daisy Gomez Clerk of the Council 1349i 849.12-a0 !1 20 G _ 56 I7J98849.1>_ a08�Li:19 4 2629/022499-0003 13498849.12.08101/19 Exhibits 20C-57 Exhibit A- Scope of Work Restoration of Local Recharge Sources from Invasive Dreissenid Mussels 1.0 Study Objective The purpose of the Study is to evaluate a potential treatment method, other than desiccation, that can be used to eradicate existing quagga mussel infestations and prevent the potential spread of quagga mussels. If such a method is identified, it could lead to restoring the use of facilities for recharge of local water sources, such as stormwater. 2.0 Background Information In January 2007, quagga mussels (Dreissena bugensis) were discovered at a marina in the Nevada portion of Lake Mead, and two other lakes on the Colorado River, Lake Mohave and Lake Havasu. Soon thereafter, the mussels spread through the Metropolitan Water District of Southern California's (MWD's) Colorado River Aqueduct (CRA) as far south as Lake Skinner, near Temecula. As of December 2017, quagga mussels have been detected in 43 locations in California. So far, State Water Project (SWP) aqueducts and reservoirs have not been impacted, although there were detections of quagga mussels in Pyramid Lake and other areas of the SWP in December 2016. To minimize the spread of quagga mussels, MWD chlorinates CRA water, starting at Copper Basin reservoir, close to the eastern end of the CRA and at other locations, such as Lake Matthews. Despite this effort, quagga mussels have infested reservoirs used for capture of local runoff as well as rivers, streams and canals used to convey both local supplies and imported supplies to groundwater replenishment facilities. This is important because multiple entities that recharge local water sources, such as storm water, use many of the same facilities to recharge imported water. As a result, the presence of quagga mussels presents a barrier to the efficient use of these dual use facilities and has affected the ability to maximize the capture and recharge of local supplies, such as storm water. As an example, Irvine Lake, which is owned and operated by the Irvine Ranch Water District (IRWD), receives both imported CRA water and local storm flow. Downstream of Irvine Lake are OCWD's Santiago Basins which are open gravel pits that were converted to groundwater replenishment facilities in the early 1990s. In the 1990s, water from Irvine Lake was discharged to Santiago Basins via Santiago Creek for groundwater replenishment. These deliveries are no longer possible due to the presence of the quagga mussel in Irvine Lake and the potential for infesting Santiago Creek and Santiago Basins. On the San Gabriel River, multiple entities, including the Main San Gabriel Basin Watermaster and the Water Replenishment District of Southern California (WRD) divert storm water from the San Gabriel River into spreading grounds adjacent to the river. In October 2017, MWD found quagga mussels in the San Gabriel River that came from deliveries of MWD water. Although steps were taken to desiccate the river and prevent the spread of quagga mussels, it is possible that 20d-58 further infestations will occur and hamper the use of the San Gabriel River and associated spreading facilities for the capture and recharge of local storm water. In the Santa Clara River watershed, United Water Conservation District (UWCD) captures storm flows from the Piru Creek watershed in Lake Piru, as well as imports a small amount ofSWP water from Pyramid Lake. UWCD then releases the stored water in late summer, recharging the downstream groundwater basins, including the coastal Oxnard Plain. When Lake Piru became infested with quagga mussels in late 2014, the California Department of Fish and Wildlife (CDFW) ordered UWCD to limit discharges to downstream recharge facilities, to limit the spread of quagga mussels. UWCD's downstream recharge facilities are the primary source for the cities of the Oxnard Plain, which are also served by MWD via its member agency Calleguas Municipal Water District (Calleguas). Groundwater has historically provided approximately half of the water for this portion of Calleguas' service area. Quagga mussel -induced limitations on UWCD's groundwater recharge will shift additional burden onto Calleguas and MWD. UWCD is currently working with CDFW, U.S. Fish and Wildlife, and National Marine Fisheries Service to develop an eradication plan for Lake Piru using EarthTec QZ that could potentially be implemented within the next few years. California Department of Fish and Wildlife Regulations The California Department of Fish and Wildlife (CDFW) has a mandate to prevent the spread of quagga mussels. As a result, CDFW requires the preparation of Dreissenid Mussel Monitoring, Response and Control Plans (Plan) for any facility that is impacted. Desiccation is the primary method of mitigating for quagga mussel infestations. Although desiccation can work for isolated spreading grounds, it is less feasible in rivers and streams and impossible in large reservoirs unless they can be fully drained. For OCWD, the Plan contains a requirement that OCWD use imported water for recharge only in basins that can be desiccated (dried out) for two weeks. In addition, these basins must be drained and dried prior to the storm season to prevent potential conveyance of quagga mussels -laden water to other basins or to the Santa Ana River. Moreover, one of the most effective recharge facilities, the Santa Ana River, cannot be fully utilized because it cannot be fully desiccated. These restrictions present a barrier to both the recharge of imported water and the capture of storm water, which reduces the recharge of local supplies and the overall efficiency of groundwater replenishment operations. The recharge of imported and storm water are considered together because OCWD, as with other entities, use their facilities for storage, conveyance and recharge of both sources of supply. The WRD has also been affected by the potential for infestations of waterways used to convey both imported and storm water by quagga mussels. The Los Angeles County Department of Public Works (LACDPW) owns the conveyance and spreading facilities used by WRD for the recharge of storm water, recycled water and imported water. Due to the potential for quagga mussel infestations, imported deliveries from the Colorado River have not been approved by LACDPW for many years. When deliveries were made in 2017, an infestation of quagga mussels was found in the San Gabriel River in October 2017 even though the supplies were mostly from the SWP. 20C-59 Restoring Local Recharge Sources The purpose of the Study is to evaluate a potential treatment method, other than desiccation, that can be used to eradicate existing quagga mussel infestations and prevent the potential spread of quagga mussels. In 2016, Trussell conducted an extensive literature review for OCWD of potential treatment technologies for the quagga mussel, including free chlorine, chloramines, ozone, ultraviolet radiation, and potassium permanganate. Proprietary molluscicides were not considered in this Study. Trussell found that the literature contains many studies examining treatment for adult mussels, but limited research on veligers. The veliger stage is the final larval stage of the quagga mussel, when they are mobile, having two ciliated flaps for swimming and feeding. Of the treatment methods examined, chlorine, chloramine and ozone were found to have promise; however, they present several challenges, such as needing quenching prior to discharge to a stream or river (chlorine, chloramine), formation of disinfection byproducts (chlorine), and high capital costs (ozone). In fact, one of the constraints that MWD faces with chlorine dosing at Lake Matthews is the formation of disinfection byproducts. An alternative method of treating for quagga mussels is EarthTec QZ, which is an EPA -registered molluscicide for prevention and control of quagga and zebra mussels. This product has been shown to be effective in eradicating quagga mussels and veligers in samples obtained from Lake Mead. Based on the Lake Mead study, an EarthTec QZ concentration of 3 mg/L, which produces a copper concentration of 0.18 mg/L, resulted in complete veliger mortality within 30 minutes. The effectiveness of EarthTec QZ and moderate cost, which is estimated at $20/acre-feet (for EarthTec QZ concentration of 3 mg/L), suggest that it has the potential be a cost-effective method to safely treat impacted sources of water, such as local reservoirs and imported water supplies; however, site -specific testing is needed to develop the proper dose required in local sources and to obtain approval by CDFW. Eventual approval by CDFW will allow for expanded use of currently infested facilities and open the use of facilities that are not currently infested, which would reduce barriers to groundwater replenishment, including the recharge of local supplies such as storm water. 3.0 Study Description OCWD staff, along with Trussell, would conduct the Study. In general terms, the Study will test the response of quagga veligers to various doses of EarthTec QZ atfive locations: Lake Matthews, OCWD's OC-28 connection in Anaheim, Lake Piru, MWD connection CenB-28, and one other location to be determined. Live veligers would be collected at each location. Subsets of the collected veligers would be exposed to different concentrations of EarthTec QZ and their response would be monitored over time. This work would be conducted in existing or temporary field labs located at or near where the veliger samples are collected. This is important to minimize the potential for veliger die -off during transport. In addition to examining the effectiveness of EarthTec QZ on quagga veligers, the Study includes an assessment of the toxicity of EarthTec QZ for aquatic species — other than quagga veligers. This work will be conducted in parallel with the dose -response veliger testing. Trussell will consult with aquatic microbiology experts, CDFW staff, review available literature, and examine regulations to evaluate the water quality impacts of EarthTec QZ. 20C-60 Up to eight meetings are budgeted to ensure there is maximum collaboration with all Study stakeholders at all stages of the Study. Participating Entities and Supporting Entities Participating entities include: • Orange County Water District • Water Replenishment District of Southern California • United Water Conservation District • Main San Gabriel Watermaster • Central Basin Municipal Water District • California Department of Fish and Wildlife (CDFW) • California Department of Water Resources (DWR) All the listed entities above, except for CDFW and DWR, are contributing financially to this Study. CDFW and DWR are contributing staff time and providing technical assistance to the Study. 4.0 Description of Tasks Task 1 Evaluation of EarthTec QZ Veliger Treatment Bench scale testing will be completed at five surface water locations to establish quagga mussel veliger dose -response curves with exposure to EarthTec QZ and determine the lowest concentration that could be used to kill quagga veligers. Testing is proposed at: • Lake Matthews, • OCWD's OC-28 connection in Anaheim, • Lake Piru, and; • MWD's CenB-28 connection • One additional site to be identified in cooperation with Study partners. Each site will be assessed for any available documentation of seasonal changes in veliger populations, and sample collection and testing will be scheduled to target periods of high veliger populations. Samples of raw surface water and quagga mussel veligers will be collected from each of the surface water sites with plankton tow nets. To minimize veliger die -off, all veliger dose -response tests will be completed in field lab space close to the collection sites, with water and veliger samples collected on the same day. Veliger samples will first be assessed for density of live (physically moving or tissue movement of veliger), dead (cracked shells or degraded tissue), or empty shell (with no tissue and only shell remaining). If veliger concentrate contains >1% dead to live veliger density, the plankton collection will not be used. The veliger concentrate will be divided into testing beakers to achieve approximately 100 to 200 live veligers per test replicate, ranging in size from D-shaped (>63 µm) 20C-61 to pediveligers (< 300 µm). If the veliger population size is not large enough to achieve desired densities, at least 30 veligers will be tested per replicate. Four exposure doses of EarthTec QZ will be investigated and a control will be included for each duration, with a maximum of three exposure durations. At least three replicates per exposure dose and duration will be completed and will be tested at a maximum of two temperatures. Once the exposure duration for each test condition is complete, the proportion of live and dead quagga mussels will be analyzed with fast green stain. In addition to the veliger assessment, each test beaker will be evaluated for copper (total and dissolved), dissolved oxygen, conductivity, pH, and temperature at the start of the experiment and at the end of the exposure time. Raw surface water samples will be monitored for total organic carbon (TOC), copper (total and dissolved), dissolved oxygen, conductivity, pH, and temperature. Task Toxicity Assessment An assessment of the toxicity of EarthTec QZ for aquatic species — other than quagga veligers — present in the surface water will be completed in parallel with the dose -response veliger testing (Task 1). Trussell will consult with aquatic microbiology experts, CDFW staff, review available literature, and examine regulations to evaluate the water quality impacts of EarthTec QZ. In conjunction with Task 1 testing, surface water samples will be collected and dosed with EarthTec QZ to assess water quality impacts and toxicity. Slides will be prepared to communicate the proposed test plan. The toxicity testing will include up to three replicates with two doses of EarthTec QZ and assessment of toxicity for two aquatic indicator species. Task 3 Project Management The project team will work closely with OCWD and funding partners to coordinate testing events, provide updates of Study results, and communicate progress on Study activities. Trussell will attend up to eight meetings with project partners and prepare slides to communicate results and progress. Project staff will provide a presentation of the sudy findings at a symposium being held by MWD. 20C-62 5.0 Deliverables Task/Subtask Deliverables Submittal Due Date Task 1, Evaluation of EarthTec QZ Veliger Dose -Response Test Plan Q3 2019 Veliger Treatment Technical Memorandum 1 Q42020 Test Plan (slides) Q3 2019 Task 2, Toxicity Assessment Technical Memorandum 2 Q4 2020 Draft Report Q2 2021 Tasks 1, 2 Final Reporting Final Report Q3 2021 Symposium Presenation Fall 2021 Task 3, Project Management Slides for project meetings Various 6.0 Cost Estimate Total Study Requested Task No. Task Description Cost Metropolitan Funding Match Task 1, Bench scale testing at five surface water locations Evaluation of to establish quagga mussel veliger dose -response EarthTec QZ curves with exposure to EarthTec QZ and $154,180 $77,090 Veliger determine the lowest concentration that could be Treatment used to kill quagga veligers. Task 2, An assessment of the toxicity of EarthTec QZ for Toxicityaquatic species—otherthanquaggaveligers— $62,228 $31,114 Assessment present in the surface water will be completed in parallel with the dose -response veliger testing. Coordinate testing events, provide updates of Task 3, Study results, and communicate progress on Project Study activities. Host eight meetings with project $29,184 $14,592 Management partners and prepare slides to communicate results and progress. Totals $245,592 $222,796 20C-63 7.0 Schedule Apr Jul Oct A r P Jul Oct Apr Jul Oct Jan- - Jan- - Jan- - - - Mar Jun $e Dec Mar Jun $e Dec Mar Jun Se Dec P P P 2019 2020 2021 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 42 43 Q4 Task Task Name 1 Collect and compile data available 1 Develop Draft Veliger Dose Response Test Plan 1 Stakeholder Review Meeting 1 1 Finalize Veliger Dose Response Test Plan Conduct Field 1 Sampling/Dose Response Testing 1 Compile Results Semi -Annual Progress 1,2 Report 2019 No. 1 (May 2019 — December 2019) 1 Conduct Additional win Sampling (If needed) Semi -Annual Progress 1,2 Report 2020 No. 1 (January 2020—June 2020) 1 Compile Season 2 Results (If needed) 1 Stakeholder Review Meeting 3 (If needed) 1 Prepare Draft Technical Memorandum 1 1 Review Draft Technical Memorandum 1 1 Submit Final Technical Memorandum 1 Semi -Annual Progress 1,2 Report 2020 No. 2 (July 2020 — December 2020) 2 Develop Toxicity Test Plan IN Stakeholder Review2Meeting 1 20C-64 Jan- Apr Jul - Oct Jan- Apr Jul - Oct Jan- Apr - Jul - Oct - Mar Jun $e Dec Mar Jun $e Dec Mar Jun Se Dec P P P 2019 2020 2021 Q1 1 0.2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Task Task Name 2 Finalize Toxicity Test Plan 2 Conduct Toxicity Testing 2 Compile Results 2 Stakeholder Review Meeting 2 2 Conduct Additional Testing i (If needed) 2 Compile Season Results (If needed) 2 Stakeholder Review Meeting 3 (If needed) 2 Prepare Draft Technical Memorandum 2 2 Review Draft Technical Memorandum 2 2 Submit Final Technical Memorandum 2 1,2 Draft Final Report 1,2 Final Report 3 Symposium Presentation Findings of Study 3 Project Management *First Semi -Annual Report of 2019 will include a summary of work conducted in May -June 2019. 20C-65 Reporting Schedule • Semi -Annual Progress Report 2019 No. 1* (May 2019 — December 2019) .. February 15, 2020 • Semi -Annual Progress Report 2020 No. 1 (January 2020 —June 2020) ............August 15, 2020 • Semi -Annual Progress Report 2020 No. 2 (July 2020— December 2020) ..... February 15, 2021 DraftFinal Report ...........................................................................................................May 31, 2021 FinalReport ........................................................................................................... July 31, 2021 • Agency presentation on study findings at concluding symposium .............................. Fall 2021 *First Semi -Annual Report will include a summary of work conducted in May -June 2019. 20C-66 Exhibit B- Sample Invoice BILL TO INVOICE INVOICE Metropolitan Water District of Southern California Accounts Payable Section P.O. Box 54153 Los Angeles, CA 90054-0153 AccountsPayableBusiness@mwdh2o.com AGENCY NAME INVOICE DATE INVOICE NUMBER INVOICE PERIOD ADDRESS STUDY NAME CONTACT CONTACT PHONE AGREEMENT NUMBER MAXIMUM AWARD AMOUNT AMOUNT PREVIOUSLY INVOICED AWARD AMOUNT REMAINING ITEMIZED EXPENSES TASK DETAILED DESCRIPTION (e.g., consultant costs and hours, materials and supplies, lab costs, etc.) COST TOTAL COSTS TOTAL ELIGIBLE COSTS (UP TO 50% OF TOTAL COSTS) RETENTION (25% of total eligible reimbursable costs) TOTAL ELIGIBLE REQUEST - RETENTION BY SIGNING THIS INVOICE, AGENCY CERTIFIES THAT WORK DESCRIBED HEREIN IS AN ACCURATE AND CORRECT RECORD OF SERVICES PERFORMED FOR METROPOLITAN UNDER THIS AGREEMENT AND THIS WORK HAS NOT BEEN BILLED ON ANY OTHER CLIENT OR STUDY PARTNER INVOICES. STUDY MANAGER 20C-67 p O F Z cc W W W IL 2 m W w� u cc Z Q z cW C Q G G F H bA W C V MM i W e `m r 3 O h w O in Y in = O ~ O p L' Ln a0+ h O m d M 7? M Ln U m M a _ m N a 0 7 m C Q J Y w J Gl O Y O m u a d 0 F W o FLU O C7 Ua~ K X LU n W OU G Z p U Z K Z p I Q m V LL O W F Q= O W m LLI a O O LL 3 Q Q w u j W m (7 W Q Z ~ W g m y p W V p O O O O C O M W m u z > Z u z U W cc . J W u_ m m m OLL 0LU 0 m tA Z U L) Lon W 0 W O ~ U K C O 7 U OLL LLJ O m Lu z U LLI m p u C 0 IQ—a�� z O Q K W W ca G C J Q Z Z O Y Z F Q Q F W W u u Z Z W W K K U u Z Z � O Z Z O � Z w O cr 2 C uj F m 3 Q W Dc C W C W u > F. 7 u M SwA-WQ•Z•] Exhibit C—Semi-annual Progress Reports Agency shall include, at minimum, the following items in the Semi -Annual Progress Reports. 1. Cover Letter Provide a brief description of the submittal, including the amount invoiced in the respective invoice period, a list of items being submitted, and contact information. The letter must be signed and include the following language: "1 am informed and believe that the information contained in this report is true and that the supporting data is accurate and complete." 2. Semi -Annual Progress Report 2.1 Study Status a) Describe work performed during the semi-annual period, by task. b) Describe major accomplishments, such as: L Tasks achieved ii. Milestones met and deliverables completed Ill. Meetings held or attended iv. Press release, etc. c) Where applicable, describe how the activities carried out differed from the plans outlined in the Study Scope of Work. Identify any problems encountered in the performance of the work under this Agreement, and how these matters were addressed. d) If the semi-annual period's objectives were not met, explain why and how these goals will be approached for the next reporting period. 2.2 Cost Information a) Identify costs incurred during the quarter by Agency and each partnering/supporting entity working on the Study. b) Discuss how the actual budget is progressing in comparison to the latest Study budget. Describe any differences that occurred, identifying budget impacts and/or problems encountered, and describe how these matters will be addressed forthe next reporting period. c) Provide a revised budget, by task, if changed from the latest Study budget. 2.3 Schedule Information a) Provide a Study schedule showing actual progress versus planned progress from the latest schedule. b) Discuss how the actual schedule is progressing in comparison to the latest Study schedule. Justify any differences that occurred, identifying schedule impacts and/or problems encountered, and describe how these matters will be addressed for the next reporting period. c) Provide a revised schedule, by task, if changed from the latest Study schedule. 20C-69 Exhibit D — Final Report Format Agency shall include, at minimum, the following items in the Final Report. 1. Cover Letter Provide a brief description of the submittal, including the total amount of funds disbursed, a list of items being submitted, and contact information. The letter must be signed and include the following language: "I am informed and believe that the information contained in this report is true and that the supporting data is accurate and complete." 2. Final Report 2.1 Executive Summary a) Briefly summarize the content of the main report. 2.2 Introduction a) Provide an overview of the work performed and accomplishments achieved throughout the duration of the Study. b) Briefly describe the findings of the study. c) Describe the role/involvement of each partnering/supporting entity and their relationship to the Study. 2.3 Cost Summary a) Include a summary of the costs incurred and of funds disbursed throughout the duration of the Study. b) Provide a comparison between the planned budget in the Agreement and the actual budget. Justify any differences that occurred, identifying budget impacts and/or problems encountered, and how these matters were addressed. 2.4 Schedule Summary a) Include a summary of all tasks accomplished throughout the duration of the Study. b) Provide a comparison between the planned schedule in the Agreement and the actual schedule. Justify any differences that occurred, identifying schedule impacts and/or problems encountered, and how these matters were addressed. 2.5 Study Results and Analysis a) Describe and provide an analysis of the Study results and findings in detail. b) Were the Study goals and objectives as proposed achieved? Explain. c) Discuss any major problems that occurred in meeting the Study goals and objectives, including how, and if, they were resolved. d) Explain how the findings of the Study can be applied to other areas of the region. What types of obstacles, if any, would be anticipated before implementation/application can occur, and how could these matters be addressed? 2.6 Conclusion a) Describe lessons learned. b) Describe the next steps of the Study (e.g., applicability of the results, topics that may require additional research, new programs that should be developed, policy amendments, etc.). 20d-70 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT NO. 2019-179 INCREASING REVENUE AND EXPENDITURE ACCOUNTS BY $74,000 TO COVER REIMBURSABLE LEGAL COSTS ASSOCIATED WITH SPECIFIC DEVELOPMENT PROJECTS FOR FISCAL YEAR 2018-19 AND AN APPROPRIATION ADJUSTMENT 2020-013 INCREASING REVENUE AND EXPENDITURE ACCOUNTS BY $500,000 TO COVER REIMBURSABLE LEGAL COSTS FOR LEGAL SERVICES PROVIDED BY BEST BEST AND KRIEGER LLP ASSOCIATED WITH SPECIFIC DEVELOPMENT PROJECTS FOR FISCAL YEAR 2019-20 (STRATEGIC PLAN NO. 4, 2A) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MA AGER RECOMMENDED ACTION 1. Approve appropriation adjustment 2019-179 adding $74,000 to Account No. 05316002- 57000 Expense Reimbursement to reflect anticipated fees collected from developers to cover outside legal costs associated with processing development projects and adding $74,000 to Account No. 05316021-62300 Contract Services -Professional to reflect anticipated payment of legal costs incurred by the City in processing development projects. The total allocations are subject to non -substantive changes by the City Manager and City Attorney. 2. Approve appropriation adjustment 2020-013 adding $500,000 to Account No. 05316002- 57000 Expense Reimbursement to reflect anticipated fees collected from developers to cover as needed third party legal support associated with processing development projects and adding $500,000 to Account No. 05316021-62300 Contract Services - Professional to reflect anticipated payment of legal costs incurred by the City in processing development projects. The total allocations are subject to non -substantive changes by the City Manager and City Attorney. 20D-1 Appropriation Adjustment of Development -Related Legal Fees August 20, 2019 Page 2 From time to time the City requires legal assistance that cannot be provided by in-house staff. Best Best & Krieger LLP (BBK) has been retained to provide additional specialized legal services, funded by the applicant, but operating under the direction of the City. The tasks undertaken by BBK are overseen by the Planning and Building Agency and the City Attorney's Office. These outside legal services are paid for by the developer in the following manner. Prior to beginning work on a project, BBK provides an estimated cost for legal services. The estimated cost plus a 10% administrative fee is collected from the developer. As work on the project proceeds, staff reviews the invoices to ensure that the estimated cost is not exceeded. If necessary, staff may need to request additional funds from the developer to cover unanticipated additional costs. Upon approval of the two proposed Appropriation Adjustments, revenues collected for project - related legal fees will be deposited in Revenue Account No. 05316002-57000 Expense Reimbursement. The 10% administrative fee will be deposited in the General Fund. Payments for outside legal services will be appropriately charged to Expenditure Account No. 05316021- 62300 Contract Services -Professional. ENVIRONMENTAL IMPACT None. STRATEGIC PLAN ALIGNMENT Approval of the action allows the City to meet Goal #4 — City Financial Stability, Objective #2, (provide a reliable five year financial forecast that ensures financial stability in accordance with the strategic plan, Strategy A (adopt a budget that is in alignment with the financial forecast and strategic plan). FISCAL IMPACT The appropriation adjustments will assign $574,000 to Revenue Account 05316002-57000 Expense Reimbursement and $574,000 to Expenditure Account No. 05316021-62300 Contract Services -Professional as follows: All monies will be collected from developers. There will be a slight increase in the General Fund from the 10% administrative fee. 20D-2 Appropriation Adjustment of Development -Related Legal Fees August 20, 2019 Page 3 Accounting Unit, Fiscal Year Account Unit — Fund Description Account Amount Account # Description FY 2018/19 05316021-62300 City Services Contract Services- $74,000 Professional FY 2019/20 05316021-62300 City Services Contract Services- Professional $500,000 Minh Thai Executive Director Planning and Building Agency CN/SM:Ia S:RFCA\8-20-19 APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Dow s, CPA Executive Director Finance and Management Services Agency 20D-3 20D-4 I REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: AWARD A 2-YEAR BLANKET ORDER CONTRACT IN THE AMOUNT NOT TO EXCEED $1,500,000 TO EARTH TOOL COMPANY LLC, DBA HAMMERHEAD, FOR SEWER LINING MATERIALS AND SUPPLIES (SPECIFICATION NO. 19-059) (NON -GENERAL FUND) (STRATEGIC PLAN NO. 6,2) CITY M NAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 161 Reading ❑ Ordinance on 20d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Award a blanket order contract to Earth Tool Company LLC dba HammerHead, for sewer lining materials and supplies for a two-year period beginning August 20, 2019, and expiring August 19, 2021, with provisions for three one-year renewals exercisable by the City Manager, in an annual amount of $300,000, for a total amount not to exceed $1,500,000, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION There are over 45,000 privately owned sewer laterals in the City, which convey sewage from homes and businesses to the main public sewer collection system. The Public Works Agency Sewer Lateral Repair Program provides for the repair or replacement of sewer laterals from the edge of property owners' property line to where it connects to the public sewer main in the street. Public Works Sewer Enterprise staff performs these sewer lateral repairs and replacements on a daily basis, primarily using trenchless pipe bursting technology and equipment, which requires a much smaller roadway excavation footprint than traditional methods. Taking the lead in incorporating trenchless technologies into its operations, as of early 2019 the Sewer Enterprise implemented sewer lateral lining as an additional method of trenchless repair, further limiting roadway excavation and, consequently, reducing inconvenience to the public. The Notice Inviting Bids for sewer lining materials and supplies was advertised on May 23, 2019, on the City's online bid management and publication system. A summary of the Invitation for Bids and bids received are as follows: 22A-1 Award Contract for Sewer Lining Materials and Supplies August 20, 2019 Page 2 157 Vendors notified 8 Santa Ana vendors notified 13 Vendors downloaded the bid packet 3 Bids received 0 Bids received from Santa Ana vendors Three bids were received and opened on June 18, 2019, and evaluated. Bid results are as follows: Bidder Location Amount Earth Tool Company, LLC Lake Mills, WI $298,242.99 dba HammerHead Ditch Witch West Corona, CA $342,804.12 Hoffman Southwest Corporation Anaheim, CA $411,099.54 dba Roto Rooters Plumbers The bid received from Earth Tool Company LLC, dba HammerHead, was the lowest, is responsive to specifications, and meets the City's requirements. The annual amount is based on staffs projection for the upcoming Fiscal Year 2019-20 expenditures. Outreach Efforts The Purchasing Division advertised this project on the City's online bid management and publication system, which directly notified eight Santa Ana vendors. None downloaded or submitted a bid packet for consideration. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. 22A-2 Award Contract for Sewer Lining Materials and Supplies August 20, 2019 Page 2 FISCAL IMPACT Funding for the initial two-year term, FY 2019-20 through FY 2020-21, and three subsequent one- year renewal periods will be budgeted and made available in the account specified below: Fiscal Year Accounting Unit- Fund Account Unit Account Amount Account# Description Description FY 2019-20 05617640- Sanitary Sewer Sanitary Sewer Service, $300,000 63001 Service Miscellaneous Operating Expenses FY 2020-21 05617640- Sanitary Sewer Sanitary Sewer Service, $300,000 63001 Service Miscellaneous Operating Expenses FY 2021-22 05617640- Sanitary Sewer Sanitary Sewer Service, $300,000 63001 Service Miscellaneous Operating Expenses FY 2022-23 05617640- Sanitary Sewer Sanitary Sewer Service, $300,000 63001 Service Miscellaneous Operating Expenses 05617640- Sanitary Sewer Sanitary Sewer Service, $300,000 rt 63001 Service Miscellaneous Operating Expenses Total $1,500,000 APPROVED AS TO FUNDS AND ACCOUNTS: �_A V L)r'6� " Fuad S. Weiss, PE, PLS Kathryn Downs, CPA Executiv Director Executive Director Public W ks Agency Finance and Management Services Agency 22A-3 22A-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: AWARD CONTRACTS TO DITCH WITCH WEST FOR PIPE BURSTING SYSTEM AND RELATED MATERIALS IN AN AMOUNT NOT TO EXCEED $107,744 (SPECIFICATION NO. 19-053) (NON -GENERAL FUND) (STRATEGIC PLAN NO. 6,2) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 161 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO �aeo� FILE NUMBER CITY MANAGER RECOMMENDED ACTION 1. Authorize one-time purchase and payment of purchase order to Ditch Witch West for a HammerHead pipe bursting system for a total amount not to exceed $32,744, subject to non - substantive changes approved by the City Manager and City Attorney. 2. Award a blanket order contract to Ditch Witch West for pipe bursting materials for a two-year period beginning September 1, 2019, and expiring August 31, 2021, with provisions for three one-year renewals exercisable by the City Manager, in an annual amount of $15,000, for a total amount not to exceed $75,000, to be paid with Sanitary Sewer Service funds, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency Sewer Lateral Repair Program provides for the repair or replacement of sewer laterals from the edge of the property's owner property line to where it connects to the public sewer main in the street. Pipe bursting is a well -established trenchless method that is widely used for the replacement of deteriorated pipes with a new pipe of the same or larger diameter. The Public Works Agency relies on pipe bursting in conjunction with sewer lateral lining as economic pipe replacement procedures that reduce service disruption to residents and businesses. The Notice Inviting Bids was advertised on May 24, 2019, on the City's online bid management and publication system. A summary of the Invitation for Bids and bids received are as follows: 22B-1 Award Contract for HammerHead Pipe Bursting System and Related Equipment August 20, 2019 Page 4 157 Vendors notified 8 Santa Ana vendors notified 11 Vendors downloaded the bid packet 2 Bids received 0 Bids received from Santa Ana vendors Two bids were received and opened on June 20, 2019, and evaluated. Bid results are as follows: Bidder Location Amount Ditch Witch West Corona $47,163.57 LotusUSA, Inc. Santa Clarita $68,834.19 The bid received from Ditch Witch West was the lowest, is responsive to specifications, and meets the City's requirements. The annual amountfor pipe bursting materials is based on staffs projection for Fiscal Year 2019-20 expenditures. Outreach Efforts The Purchasing Division advertised this project on the City's online bid management and publication system, which directly notified eight Santa Ana vendors. None downloaded or submitted a bid packet for consideration. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding for the initial two-year term, FY 2019-20 through FY 2020-21, and three subsequent one- year renewal periods will be budgeted and made available in the account specified below: 22B-2 Award Contract for HammerHead Pipe Bursting System and Related Equipment August 20, 2019 Page 4 Fiscal Year Accounting Fund Account Unit, Account Amount Unit -Account # Description Description 05617640- Sanitary Sewer Sanitary Sewer Service, FY 2019-20 63001 Service Miscellaneous Operating $47,744 Expenses 05617640- Sanitary Sewer Sanitary Sewer Service, FY 2020-21 63001 Service Miscellaneous Operating $15,000 Expenses 05617640- Sanitary Sewer Sanitary Sewer Service, FY 2021-22 63001 Service Miscellaneous Operating $15,000 Expenses 05617640- SanitarySewer Sanitary Sewer Service, FY 2022-23 63001 Service Miscellaneous Operating $15,000 Expenses 05617640- SanitarySewer Sanitary Sewer Service, FY 2023-24 63001 Service Miscellaneous Operating $15,000 Expenses Total $107,744 APPROVED AS TO FUNDS AND ACCOUNTS: Fuad`Sweiss, PE, PLS Kathryn Downs, CPA Executi Director Executive Director Public rks Agency Finance and Management Services Agency FSS/NS/KR/KL/sp 22B-3 22B-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: AWARD A CONSTRUCTION CONTRACT TO G.J. GENTRY GENERAL ENGINEERING, INC., IN THE AMOUNT OF $1,269,090 FOR THE CITYWIDE SEWER MAIN IMPROVEMENTS PROJECT ESTIMATED DELIVERY COST: $1,629,500 (PROJECT NO. 17-6437) (NON -GENERAL FUND) (STRATEGIC PLAN NOS. 6, 1B & 1C) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on is' Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Award a construction contract to G.J. Gentry General Engineering, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $1,269,090, for construction of the Citywide Sewer Main Improvements Project, for the term beginning upon execution of the contract and ending upon project completion, and authorize the City Manager and the Clerk of the Council to execute the contract subject to non -substantive changes approved by the City Manager and the City Attorney. 2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,629,500, which includes $1,269,090 for the construction contract, $190,364 for contract administration, inspection and testing, and a $170,046 project contingency (approximately 13.40% of the construction contract amount), paid with Capital Recovery Charges funding. DISCUSSION Public Works staff monitors the condition of sewer main pipelines by assessing critical factors such as history of breaks, pipe size, alignment, location, and system redundancy to determine replacement priorities. The existing 6-inch and 8-inch diameters of vitrified clay and cast iron sewer main pipes located in Hazard Street, Garnsey Street, Oak Street, and Pomona Street, which were installed in the 1920s and 1960s, are deteriorating, lack capacity, and have been identified for priority replacement (Exhibit 1). The Citywide Sewer System Improvement Project will include approximately 4,000 linear feet of new 8-inch polyvinyl chloride sewer main pipes, sewer laterals, sewer manholes, asphalt concrete pavement, and striping. Once this project is completed, the improved sewer system will 23A-1 Award Construction Contract to G.J. Gentry General Engineering, Inc. Citywide Sewer Main Improvements Project August 20, 2019 Page 2 eliminate sewer main obstructions, prevent sewer overflows, and reduce sewer maintenance requirements. In addition, the improvements will enhance ride quality and surface drainage. Public Outreach and Contractor Participation To provide an opportunity for local vendors to submit bids, a Notice Inviting Bids was advertised in the Orange County Register newspaper on May 10 and 15, 2019, and bids were received electronically via the City's web -based electronic bidding system, PlanetBids, on June 19, 2019. Through the PlanetBids online portal, vendors may register to receive notifications on all current and future City projects, as well as download contract documents, receive project updates and submit bids electronically. A total of 112 vendors, including 5 located in the City of Santa Ana, were notified of the project via PlanetBids. 52 vendors requested bidding documents and 11 bids were received. No bids were received from Santa Ana contractors. Bid Results Summary RANK BIDDER'S NAME LOCATION BASE BID 1 G.J. Gentry General Engineering, Inc. Upland $1,269,090 2 Vasilj Inc. Irwindale $1,570,115 3 CHI Construction Anaheim $1,672,809 4 Kordich Construction, Inc. Cypress $1,779,399 5 Mike Prlich and Sons, Inc. Baldwin Park $1,795,125 6 MNR Construction Inc. La Verne $1,814,450 7 Christensen Brothers General Engineering, Inc. Apple Valley $1,852,304 8 All Cities Engineering, Inc. Jurupa Valley $1,865,710 9 Excel Paving Cc Long Beach $1,871,154 10 O'Duffy Bros Inc. Romoland $2,040,995 11 Colich & Sons L.P. Gardena $3,020,775 All 11 bids received were deemed responsive. G.J. Gentry General Engineering, Inc., submitted the lowest responsive bid in the amount of $1,269,090 (Exhibit 2). Based on the bid analysis and a contractor's reference check, staff recommends awarding the construction contract to G.J. Gentry General Engineering, Inc. in the amount bid (Exhibit 3). 23A-2 Award Construction Contract to G.J. Gentry General Engineering, Inc. Citywide Sewer Main Improvements Project August 20, 2019 Page 3 Protect Delivery To deliver a complete project, in addition to the construction contract awarded to the lowest responsible bidder, the estimated total construction delivery cost of the project includes construction administration, inspection, and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes construction management; implementation of the City's Community Workforce Agreement requirements; inspection of the Contractor's work to ensure contract compliance, workmanship, and quality; and material testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $1,629,500. Construction Contract $1,269,090 Construction Administration, Inspection, and Testing $190,364 Contingencies $170,046 ESTIMATED CONSTRUCTION DELIVERY COST $1,629,500 All staffing costs are included in this estimate and no additional funding will be required. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy B (equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe, and aesthetically pleasing for all users); Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2018-30 was filed for the project. FISCAL IMPACT As indicated in the Cost Analysis (Exhibit 4), the estimated total construction delivery cost of the project is $1,629,500, which includes the construction contract, contract administration, inspection, testing, and project contingency. The following table summarizes the funds budgeted to deliver construction of this project: 23A-3 Award Construction Contract to G.J. Gentry General Engineering, Inc. Citywide Sewer Main Improvements Project August 20, 2019 Page 4 Fiscal Year Accounting Unit - Account No. Project No. Fund Description Accounting Unit, Account Description Amount FY 2019- Capital Recovery 20 05417647-66220 Sanitary Sewer Charges, $1,629,500 July -June (17-6437) Capital Improvement Other Than Building Total $1,629,500 All funds are scheduled for expenditure in Fiscal Year 2019-20. APPROVED AS TO FUNDS AND ACCOUNTS: Fuad . Sweiss, PE, PLS Kat�wns, CPA Execu ve Director Executive Director Gr] Public orks Agency Finance and Management Services Agency Exhibits: 1. Location Map 2. Bid 3. Construction Contract 4. Cost Analysis 23A-4 Exhibit 1 HAZARD STREET HAZARD STREET ED/NGER O U W ® PROJECT LOCATION SA AMA Pu PUBUMOUSAGOCT AVENU GARNSEY STREET o z y m C ti VICINITY MAP NOT TO SCALE Project No. 17-6437: CITYWIDE SEWER MAIN IMPROVEMENTS STREET POMONA STREET 23A-6 City of Santa Ana Chyvdde Sewer Mein Improvements (17-6437), bidding on June 19, 2019 2:00 PM (Pacific) Bid Results Bidder Detalls Vendor Name G,J. Gentry General Engineering, Inc. Address 1297 W. 9th Street Upland, CA 91786 United States Respondee Bryan MezaSave Respondee Title VP of Public Works Phone 909435.4601 Ext. Email bryanm@g)gentry.com Vendor Type CADIR License # 991354 CA DIR Bid Detail Bid Format Electronic Submitted June 19, 2019 8:49:13 AM (Pacific) Delivery Method Bid Responsive Bid Status Submitted Confirmation # 182217 Ranking 0 Respondee Comment Buyer Comment Attachments File Title General Forms Ownership Affidavit Bid Bond Guaranty Non -Collusion Affidavit Line Items File Name General Fonns.pdf Ownership AffidavlLpdf Bid Bond Guamnty.pdf Non -Collusion Affidavit.pdf Type Item Code UOM city Ewe Bid Proposal 1 Mobilization/Demobilization (No More than 6% total bid) LB 1 2 Remove F)dsting Sewer Main and Construct 8° PVC SDR-26 Sewer Main LF 4000 Page 1 Primed 071OZ2019 Exhibit 2 File Type General Forms Ownership Affidavit (Notary Public) - REQ Original Hard Copy Submittal In Addition Bid Bond Guaranty (Notary Public) - REO Original Hard Copy Submittal In Addition Non -Collusion Affidavit (Notary Public) - REQ Original Hard Copy Submittal In Addition Unit Price Line Total Comment $60,000.00 $60,00o.00 $97.19 $388,760.00 PlanetBids, Inc. 23A-7 City of Santa Ana Page 2 Cltywlde Sewer Main Improvements (17-6437), bidding on June 19, 2019 200 PM (Pacific) Printed 07102/2019 Bid Results Type Item Code u0M 0ty Unit Pit" Line Total Comment 3 Remove Existing Sewer Main and Construct 10" PVC SDR-26 Sewer Main LF 400 $129.40 $61,760.00 4 Asphalt Concrete (AC) Paving TN ...__........ 715 -............ $167.65 ,....._.._..,.......... $120,012.76 .... ._..._......_..._......_ 5 Asphalt Rubber Hot Mix (ARHM) (T=2") TN 62 $199.34 $16,346.88 6 Cold Milling (T=2°) SF 6600 $1.81 $11,765.00 7 PCC Goss -Gutter (Arterial Streets) SF 350 $24.64 $8,694.00 8 Construct New P.C.C. Sewer Manhole EA 15 $4,149.08 $62,236.20 9 Remove F-xisting Manhole Structure EA 15 $1,211.60 $18,174.00 10 Construct 4" or 6" PVC Sewer Lateral and Cleanout (Open Trench) EA 104 $2,355.66 $244.988.64 11 Construct 4" or 6" HOPE Sewer Lateral and Cleanout (Pipe Bursting) EA ............ 15 $3,741.82 $56,127.30 12 Connect Sewer Laterals prevloulsy pipe bursted by City Forces ._.. _.. ... ...,.. ..__,._... _..._ _........ FA .,.....,. 7 .. ... $1,772.61 ........ _.. $12,408.27 13 CCTV Inspection of New Sewer Main _ ._ .. . _...,... ...... _. ... ............ LF 4400 $2.96 $13,024.00 14 CCTV Inspection of New Sewer Laterals (Open Trench/Pipe Burst) EA _..... ....... ..........,......_......... _,........,.._ _.-._... __ 126 ,................................. $68.77 $8,685.02 _..., .... ,.............. 15 Traffic Control _....._._.. , .. LS 1 $49.136.78 $49,136.78 16 Signing and Striping LS 1 $31.097.00 $31.097.00 17 Imported Baxkfill Material (As Needed)' CY 900 $50.00 $45,000.00 18 Additional Potholing (As Needed)' FA 10 $1,263.60 $12,636.00 PlanetBlds, Inc. 23A-8 City of Santa Ana Page s Gtywide Sewer Main Improvements (17-6437), bidding on June 19, 2019 2:00 PM (Padfic) Printed 07/02/2019 Bid Results Type Item Code UOM Qty Unit Price Llno Total Comment 19 Sewer Flow Level Monitoring & Alarming Device EA 2 $5,879.60 $11,759.00 20 Labor Agreemnet Oversight LS 1 $20,000.00 $20,000.00 21 As -Built LS 1 $25,000.00 $25,000.00 22 Backflow, Prevention Device* EA 2 $760.00 $1,600.00 Subtotal $1.269,089.64 Asterisk Notes (per P-3 of P-16 of Specificatlons) - NOT part of Total Bid Calculation 23 •= The quantity for this bid Item Is shown for bid comparison only. This bid hem shall not be subject to the 25% limit as stated In Section 3-2 of the Sped6cations... ea 0 0 0 Subtotal 0 Total $1,269,089.84 PlanetBids, Inc. 23A-9 CITY OF SANTA ANA PROPOSAL ADDENDUM FOUR PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS BID PROPOSAL TO: CITY COUNCIL OF THE CITY OF SANTA ANA FROM: G.J. Gentry General Engineering, Inc. REQUIREMENT: The undersigned bidder declares that they have carefully examined the location of the proposed work, that they have examined the Contract Documents in its entirety and hereby proposes to furnish all material and do all the work required to complete the said work in accordance with said plans (if any) and the specifications for the unit price(s) or lump sum(s) set forth in the following schedule: BASE BID: Item Description Qty Unit Unit Price Amount I Mobilization/Demobilization (No more 1 LS S S than 5%total bid) 60,000.00 60,000.00 2 Remove Existing Sewer Main and 4,000 LF S $ Construct 8" PVC SDR-26 Sewer Main 97.19 388,760.00 3 Remove Existing Sewer Main and 400 LF $ $ Construct 10" PVC SDR-26 Sewer Main 129AO 51,760.00 4 Asphalt Concrete (AC) Paving 715 TN $ S 167.85 120,012.75 5 Asphalt Rubber Hot Mix (ARHM) (T=213 82 TN $ $ 199.34 16,345.88 6 Cold Milling (T=2") 6,500 SF $ S 1.81 11,765.00 7 PCC Cross -Gutter (Arterial Streets) 350 SF S S 24.84 8,694.00 8 Construct New P.C.C. Sewer Manhole 15 EA $ S 4,149.08 62,736.20 9 Remove Existing Manhole Structure 15 EA $ S 1,211.60 18,174.00 10 Construct 4" or 6" PVC Sewer Lateral and 104 EA S 5 Cleanout (Open Trench) 2,355.66 244,988.64 11 Construct 4" or 6" HOPE Sewer Lateral 15 EA S S and Cleanout (Pipe Bursting) 3,741.82 56,127.30 12 Connect Sewer Laterals previously pipe 7 EA $ S bursted by City Forces 1,772.61 12,408.27 13 CCTV Inspection of New Sewer Main 4400 LF S S 2.96 13,024.00 14 CCTV Inspection of New Sewer Laterals 126 EA S S (Open Trench/Pipe Burst) 68.77 8,665.02 rx I CITY OF SANTA ANA PROPOSAL ADDENDUM FOUR PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS Item Description Qty Unit Unit Price Amount 15 Traffic Control I LS S 49,136.78 S 49,136.78 16 Signing and Striping I LS S 31,097.00 S 31,097.00 *17 Imported Backfill Material (As Needed) 900 Cy S50 $45,000 • 18 Additional Potholing (As Needed) 10 EA S 1,263.60 S 12,636.OD 19 Sewer Flow Level Monitoring & Alarming Device 2 EA S 5,879.50 S 11,759.00 20 Labor Agreement Oversight 1 LS S20,000 $20,000 21 As -Built I LS 525,000 $25,000 022 Backflow Prevention Device 2 EA $750 51,500 2 ;2 of P111 CITY OF SANTA ANA PROPOSAL ADDENDUM FOUR PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS TOTAL BASE BID 5 1,269,089.84 The lowest responsible bidder shall be selected based on the total base bid. The City reserves the right to award the Base Bid, and any, all, or none of the add-altemate bid items (if any). If add alternate one bid is awarded it will replace bid item 7 and up to 37 units of bid item 6. ' The quantity for this bid item is shown for bid comparison only. This bid item shall not be subject to the "25%" limit as stated in Section 3-2 of the Standard Specifications. The actual amount for this item will be dictated by the actual quantity used, and the Agency reserves the right to increase or decrease the quantity of this item accordingly. TIME FOR COMPLETION OF IMPROVEMENTS AND LIQUIDATED DAMAGES The undersigned bidder hereby proposes to complete the Work for the total base bid amount shown above, within One Hundred fifteen (115) working days after the commencement date stated in the Notice to Proceed. • 15 — Working Days for exploratory potholing and data gathering • 100 —Working Days for project construction The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $1,000 per calendar day. Name of Firm G.J. Gentry General Engineering, Inc. Signature of BIDDER Title (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) 23AL' 12 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS BIDDER'S STATEMENT BIDDER understands and agrees that this Bid Proposal, Contract Documents and subsequent Construction Contract Agreement shall constitute the entire agreement between BIDDER and the AGENCY only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting hereon the action of approval of the Council, signed by the Public Works Agency Executive Director or his/her duly authorized agent, and signed by the City Attorney, denoting his approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to BIDDER or deposited with the United States Postal Service properly addressed to the BIDDER with the correct postage affixed thereto. BIDDER further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish AGENCY all required bonds and certificate of liability insurance within ten (10) business days or the funds, check, draft, or BIDDERS bond substituted in lieu thereof accompanying this proposal shall become the property of the AGENCY and shall be considered as payment of damages due to the delay and other causes suffered by AGENCY because of the failure to furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered is difficult to ascertain; otherwise said funds, check, drafts, or BIDDER'S bond substituted in lieu thereof shall be returned to the undersigned. BIDDER understands that a bid is required for the entire work, the estimated quantities set forth in the bid schedule are solely for the purpose of comparing bids, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. The BIDDER also certifies that the bid is a balanced bid. In accordance with Section 7028.15 of the California Business and Professions Code, the undersigned certifies under penalty of perjury that the foregoing is true and correct. Name of Firm G.J. Gentry General Engineering, Inc. Signature of BIDDER Title (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) 23Aul13 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS CONTRACTOR'S LICENSING AND REGISTRATION STATEMENT The undersigned contractor, or corporate officer, declares under penalty of perjury that he/she and all his/her subcontractors are registered with the State of California Department of Industrial Relations (DIR), and that the following is true and correct. Contractor's Name: G.J. Gentry General Engineering, Inc. Business Address: 1297 W. 9th Street. Upland, CA. 91786 Business E-Mail Address: bryanm@gjgentry.com Telephone: (909) 693-3391 State Contractor's License No. and Class: 991354 A License Expiration Date: 03/31/2020 State Dept. of Industrial Relations (DIR) Registration No.: 1000009875 State Dept. of Industrial Relations (DIR) Registration Expiration Date: 06/30/2019 Signed: NAR14 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS PREVAILING WAGE COMPLIANCE AND MONITORING STATEMENT Contractor is aware of the requirements of California Labor Code Section 1720, et seq., as well as California Code of Regulations, Title 8, Section 16,000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. Since the services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. The undersigned certifies that the foregoing is true and correct. Name of Firm G.J. Gentry General Engineering, Inc. Signature of BIDDER Title CQV&T, (if an individual, so state) CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS OWNERSHIP AFFIDAVIT STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: �CIITTY,,,O,F�S,A'N1TAAA,N�A�,�,��� � ) `- wa# 1,_� /r t7L—t 4 , being duly sworn, deposes and says: ❑ INDIVIDUAL That he/she is the puny making the foregoing proposal: ❑ PARTNERSIIIP That he/she is a member of the co -partnership firm designated as: and who has been and is duly vested with the authority to make and execute instruments for the co -partnership by: who constitute the other members of the co -partnership. CORPORATION Th�t he is J• a corporation which is making the foregoing proposal: ❑ JOINT VENTURE That he is oL' one of the parties making the foregoing proposal as a joint venture, and the he/she has been and is duly vested with the authority to execute instruments for an on behalf of the parties making said bid who are: that such a bid is genuine and not collusive or sham, and has not in any manner sought by collusion to secure any advantage against the City of Santa Ana or any person interested in the proposed con et, for himself or any other person. gnature of Bidder Subscribed and swom to before me this day of 20 .7l-C.TYfl3 Signature of officer Administering Oath (Notary Public) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Bernardino Subscribed and sworn to (or affirmed) before me on this 18th day of June 2019 , by Garrett Gentry proved to me on the basis of satisfactory evidence to be the pe ALLYSON FREDERICKSEN a _ Commission #2226564 c 0 � Notary Publlc - California y 3 son BernorainoCounty My Comm. Uphes December 24, 2021 (Seal) Signature —0j IA4W 23A-17,ssefY�rrf(�Yi�' Il CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS : � KNOW ALL PRESENT that, Bond No. CSSA-10992 [Jarrett J. Gentry General Engineering Incorporated , as BIDDER, and U.S. Specialty Insurance Company , as SURETY, are held and firmly bound unto the CITY OF SANTA ANA, as AGENCY, in the penal sum of Ten Percent of Amount Bid Dollars (S 10% 1, which is ten percent (10%) of the total amount bid by BIDDER to AGENCY for the above -stated project, for the payment of which sum, BIDDER and SURETY agree to be bound, jointly and severally, firmly by these presents. THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas BIDDER is about to submit a bid to AGENCY for the above -stated project, if said bid is rejected, or if said bid is accepted and a contract is awarded and entered into by BIDDER in the manner and time specified, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY. IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seal this 3rd day of June 2019. ninnca• SURETY* 625 The City Drive So.. Ste. 205 Subscribed and sworn to before me , 20_ Signature: Notary Public in and for the County of of State of = _ ° Provide BIDDER/ SURETY name, address, and telephone number and the'hame, title, address, and telephone number of authorized representative. P-8 of P-17 23A-18 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange ) On 6/3/2019 before me, Melissa Ann Vaccaro, Notary Public (insert name and title of the officer) personally appeared Shaunna Rozelle Ostrom who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. r,1Et.I5sa AN" vacCARO ' •..,.v COMM, N2241394 w .•teat Notary PublioCalitornia t: `� �� ORANGE COUNTY u My Comm. Fxnims May 12.2022 Signature (Seal) Melissa Ann Vaccaro 23A-19 2 POWER OF ATTORNEY AMERICAN CONTRACTORS INDEMNITY COSIPANY TEXAS BONDING COMPANY UNITED STATES SURETY COAIPANY U.S. SPECIALTY INSURANCE COMPANY KNOW ALL MEN BY THESE PRESENTS: That American Contractors Indemnity Company, a California corporation, Texas Bonding Company, an assumed name of American Contractors Indemnity Company, United States Surety Company, a Maryland corporation and U.S. Specialty Insurance Company, a Texas corporation (collectively, the "Companies"), do by these presents make, constitute and appoint: Daniel Huckabay, Arturo Ayala, Dwight Reilly, Shaunna Rozelle Ostrom or Frank Morones of Orange, California its Due and lawful Artorney(s)-in-fact, each in their separate capacity if more than one is named above, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognizances, undertakings or other instruments or contracts of suretyship to include riders, amendments, and consents of surety, providing the bond penalty does not exceed ******* Twenty Million ******** Dollars (S *20,000.000.00* ). This Power of Attorney shall expire without further action on November3,2019. This Power of Attorney is granted under and by authority of the following resolutions adopted by the Boards of Directors of the Companies: Be it Resolved, nut the President, any Vice -President, any Assistant Vice -President, any Secretary or any Assistant Secretary shall be and is hereby vested with full power and authority to appoint any one or more suitable persons as Auomey(s)4n 1`act to represent and act for and on behalf of the Company subject to the following provisions: Attorney -in -Fact may be given full power and authority for and in the name of and an behalf of the Company, to execute, acknowledge and deliver, arty and all bonds, recognizance, canoes, agreements or indemnity and other conditional or obligatory undertakings, including arty and all consents for the release of retained percentages and/or final estimates on engineering and construction contracts, and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attomey-in-Fact shall be binding upon the Company as if signed by the President and scaled and effected by the Corporate Secretary. Be it Resolved it= the sigmaire of any authorized after and seal of the Company heretofore or hereafter affixed to any power of mnome-v or any certificate relating thereto by facsimile, and any power of anomey or certificate baring facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to arty bond ear undertaking in which it is attached. IN WITNESS WHEREOF, The Companies have caused this instrument to be signed and their corporate seals to be hereto affixed, this 1st day of November, 2016. ASIERICAN CONTRACTORS INDEMNITY COMPANY TEXAS BONDING COMPANY Corporate Seals UNITED STATES SURETY COMPANY U.S. SPECIALTY INSURANCE COMPANY *�yC?0V 31=5^SUR te, eMD,Mae .a'Nuuva A ii—., y� Wi eta 1> t Ban I. 1i�f Daniel P. AguilaViceP i J r,resident . �°°"A e4an °j*nnnm'O' 4lyfyal�,M- °�nrn�nnr✓� A notary public or other officer completing this certificate verifies only the identity of the individual who signed the - document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. _ State of California -, County of Los Angeles SS: On this Ist day of November, 2016, before me, Sabina Morgenstein, a notary public, personally appeared Daniel P. Aguilar, Vice President of American Contractors Indemnity Company, Texas Bonding Company, United States Surety Company and U.S. Specialty Insurance Company who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, ear the entity upon behalf of which the person acted, executed the instrument 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SABINA h10RGENSTEIN Commfssion 0 2129258 Signature (Seal) Notary public - California Los Angeles County My Comm. Eaolraa Noy 3. 2019 1, Kio Lo, Assistant Secretary of American Contractors Indemnity Company, Texas Bonding Company, United States Surety Company and U.S. Specialty Insurance Company, do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney, executed by said Companies, which is still in full force and effect; furthermore, the resolutions of the Boards of Directors, set out in the Power of Attorney are in full force and effect In Witness Whereof, I have hereunto set my hand and affixed the seals of said Companies at Los Angeles, California this 3rd day of June 0019 Corporate Seals '^•''y, .+ �. ,,y"" •,•��•�� tPr� �s ,,yy✓1✓fg SU9F'w. Na R4Z O4iy 04 . i funk Qj i E + 13" Bond No. CSBA-10992 $'`..�,<,�,:lt,`° -,n, i.° ,ifi Secretary r I(io Lc, Assistant b s• :+ s Agency No. 9472 1'ryo`o� " o��/'d'' a'R` ,e*� -�• 0 i ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Bemardino On 6/18/19 before me, Allyson Frededcksen, Notary Public (insert name and title of the officer) personally appeared Garrett Gentry who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ALLYSON FREDERICKSEN a Commlaion #2226564 C WITNESS my hand and official seal. Notary Public • California InSonBernordinoCounty ^' MY Comm. Expires December 24.2021 Signature (Seal) 23A-21 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS LIST OF SUB -CONTRACTORS Section 4100 et. seq. of the Public Contract Code requires listing of all subcontractors with the bid for all subcontract work exceeding the following amount: o Streets, highways including bridge projects: %:% of the bid or $10,000, whichever is greater o Buildings, parks, or other projects: %:% of the bid Section 1725.5 of the Public Contract Code requires all Subcontractors be registered with the State Department of Industrial Relations (DIR). BIDDER proposes to subcontract certain portions of the work to the firms listed below: Name Superior Pavement Markings License #/Exp. 776306 8/31/2019 DIR Reg. #/Exp. 1000001476 6/30/2019 Location 5312 Cypress St. Cypress, CA. Phone 714-995-9100 Type Of Work Signing & Striping Amount $ 28,270.00 Name License #/Exp. DIR Reg. #/Exp. License # _ Location _ Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # _ Location _ Phone Type Of Work Amount $ �V. MX nature of Bidder Name Mocon License #/Exp. 565735 04/30/2021 DIR Reg. #/Exp. 1000009594 06/30/2019 Location 46-950 Jefferson St. Suite C-200. Indio. Phone 503-580-4420 Type Of Work Pipe Burst Amount $ 42,000.00 Name License #/Exp. DIR Reg. #/Exp. License # Location Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # _ Location Phone Type OF Work Amount $ CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS REFERENCES The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER has performed similar work within the past three years. City of Norco - 2870 Clark Ave. Norco, Ca. Name and Address of Owner. Dan Cutherson - (951) 270-5627 Name and Telephone Number of person familiar with project. $1,000,000.00 Underground Utilities and Concrete May 2019 Contract Amount Type of Work Date Completed 2, City of Orange - 300 E. Chapman Ave. Orange, Ca. Name and Address of owner. Cole Stunv - (714) 920-6046 Name and 1 elephone Number oI person laminar with project. $1,604,925.00 Underground Utilities and Concrete Contract Amount Type of Work 3, City of Fullerton - 303 W. Commonwealth Ave. Fullerton, CA. Name and Address of owner. Jose Madena - (714) 738-6863 Name and Telephone $1,200,000.00 Contract Amount of person tamwar with project. Underground Utilities and Concrete Type of Work December 2018 Date Completed On -Going Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. Commercial Surety Bond Agency - 1411 N. Batavia St. Orange, CA. - Dan Huckabay (714) 516-1232 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS ADDITIONAL REFERENCES The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER or Subcontractor has performed similar work in the past five years. 2. 3. Name and Address of Owner. Name and Telephone Number of person familiar with project. Contract Amount Name and Address of owner. Type of Work Name and Telephone Number of person familiar with project. Contract Amount Name and Address of owner. Type of Work Name and Telephone Number of person familiar with project. Date Completed Date Completed Contract Amount Type of Work Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. 101JO CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106 the BIDDER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the BIDDER or any other BIDDER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note: The above Non -collusion Affidavit is -part of the Proposal. BIDDERS are cautioned that making a false certification may subject the certifier to criminal Signed State of California County of Subscribed and sworn to (or affirmed) before me on this day of , 20_, by , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me � SO,?- ft C E, 4 Notary Public Signature Notary Public Seal A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Bernardino Subscribed and sworn to (or affirmed) before me on this 18th day of June , 2019 , by Garrett Gentry proved to me on the basis of satisfactory evidence to be the pers ALLYSON FREDERICKSEN a eMy Commission #2226564 C yNotary Public • California m MSon Bernardino County Comm. Fxo�es December 24, 2021 (Seal) Signature `t Y iv 23A-26 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS NON-DISCRIMINATION CERTIFICATE The undersigned contractor or corporate officer, during the performance of this contract, certifies as follows: 1. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. The Contractor shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS 7. The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the Contractor may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any contractor of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. Signed:a Title: Gt, J P-14 &me Firm: G.J. Gentry General Engineering, Inc. Date: 6/19/19 r CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS STATEMENT REGARDING APPRENTICESHIP REQUIREMENTS The undersigned BIDDER is familiar with the requirements of Section 1777.5 of the State Labor Code regarding employment of apprentices, and understands that contractors on contracts exceeding S30,000 or 20 working days shall: 1. Apply to the joint apprenticeship committee administering the apprenticeship standards of the craft or trade in the area of the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. 2. Employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the apprenticeship standards. 3. Contribute to the fund or funds in each craft or trade in which he/she employs journeymen or apprentices on the public work, in the same amount or upon the same basis and in the same manner as the other contractors, except contractors not signatory to the trust agreement shall pay a like amount to the California Apprenticeship Council. Signed: BbVxl Title: pAd ks.Aft,, e Firm: G.J. Gentry General Engineering, Inc. Date: 6/19/19 r � • CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS STATEMENT REGARDING "ANTI -KICKBACK" REQUIREMENTS The undersigned is submitting this proposal for performing by contract the work required by these bid documents, agrees to comply with the Copeland "Anti -Kickback" Act (18 USC 74) as supplemented in the Department of Labor regulations (29 CFR, Part 3). This act provides that each contractor or subcontractor shall be prohibited from inducing, by any means, any person employed in the construction or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Title: eww eutw,, ,, Firm: G.J. Gentry General Engineering, Inc. Date: 6/19/19 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS PUBLIC CONTRACT CODE SECTION 10162 QUESTIONNAIRE In conformance with Public Contract Code Section 10162, the BIDDER shall complete, under penalty of perjury, the following questionnaire: Has the BIDDER, any officer of the BIDDER, or any employee of the BIDDER who has a proprietary interest in the BIDDER, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local govemment project because of a violation of law or a safety regulation? Yes No X If the answer is yes, explain the circumstances in the following space. w-� MAYOR Miguel A. Pulido MAYOR PRO TEM Juan Villegas COUNCILMEMBERS Cecilia Iglesias David Penaloza Vicente Sarmiento Jose Soloric CITY OF SANTA ANA PUBLIC WORKS AGENCY 20 Civic Center Plaza • P.O. Box 1988. M-85 Santa Ana, California 92702 w .santa-ana.ora (714)647.3320 June 5, 2019 ADDENDUM ONE CITY MANAGER Kristine Ridge CITY ATTORNEY Sonia R. Carvalho ACTING CLERK OF THE COUNCIL Norma Mitre -Ramirez SUBJECT: PROJECT 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS The following changes/clarifications have been made to the SPECIFICATIONS of the subject project: 1. BID PROPOSAL; Pages P-1 to P-3 REPLACE with: Revised BID PROPOSAL; Pages (P-1 to P-3) of P-17 (See Attachment) Description of changes: - Add Bid Item 22- Backflow Prevention Device 2. APPENDIX A- DEFINITION OF BID ITEMS ADD: Bid Item No. 22 — Backflow Prevention Device: Contractor shall install backflow prevention device from (Rectorseal) and tie to newly constructed sewer lateral and existing pipe leading into private property. See Appendix G of the Project Specifications. No substitutions will be allowed. Total pages for Addendum One = 5 23A-32 MAYOR Miguel A. Pulido MAYOR PRO TEM Juan Villegas COUNCILMEMBERS Cecilia Iglesias David Penaloza Vicente Sariento Jose Solodo CITY OF SANTA ANA PUBLIC WORKS AGENCY 20 Civic Center Plaza • P.O. Box 1988. M-85 Santa Ana, California 92702 www.santa-ana.ora (714) 647.3320 June 6, 2019 CITY MANAGER Kristine Ridge CITY ATTORNEY Soria R. Carvalho ACTING CLERK OF THE COUNCIL Nara 64tre-Ramirez ADDENDUM TWO SUBJECT: PROJECT 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS The following changes/clarifications have been made to the CONTRUCTION PLANS AND of the subject project: ITEM 1- NOTICE INVITING BIDS CURRENT - NOTICE IS HEREBY GIVEN that the City of Santa Ana will receive Bids electronically via PlanetBids on or before the hour of 2:00 pm, June 11, 2019. No late bids will be accepted. No other method of bid submittal will be accepted for: M9111IM6 NOTICE IS HEREBY GIVEN that the City of Santa Ana will receive Bids electronically via PlanetBids on or before the hour of 4:00 pm, June 13, 2019. No late bids will be accepted. No other method of bid submittal will be accepted for: ITEM 2- CONSTRUCTION PLAN, SHEET 14 OF 15 REPLACE - Replace Project Plan Sheet 14 of 15; See Attachment Total pages for Addendum Two (including attachment) = 3 23A-33 MAYOR Miguel A. Pulido MAYOR PRO TEM Juan villegas COUNCILMEMBERS Cecilia Iglesias David Penaloza Vicente Sarniento Jose Solorio CITY OF SANTA ANA PUBLIC WORKS AGENCY 220 S. Daisy Ave (M-85) Santa Ana, California 92702 wvnv.santa-ana.orc (714)647-3320 ADDENDUM THREE CITY MANAGER Kristine Ridge CITY ATTORNEY Sonia R. Carvalho ACTING CLERK OF THE COUNCIL Norma Mitre- Ramirez SUBJECT: PROJECT NO. 17-6437; CITYWIDE SEWR MAIN IMPROVEMENTS The following changes/clarifications have been made to the plans and specifications of the subject project: I. ADDENDUM TWO ITEM I NOTICE IS HEREBY GIVEN that the City of Santa Ana will receive Bids electronically via PlanetBids on or before the hour of 2:00 pm, June 13, 2019. No late bids will be accepted. No other method of bid submittal will be accepted for: MODIFY: NOTICE IS HEREBY GIVEN that the City of Santa Ana will receive Bids electronically via PlanetBids on or before the hour of 2:00 pm, June 19, 2019. No late bids will be accepted. No other method of bid submittal will be accepted for: Total pages for Addendum One = 1 ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME. FOR THE CITY OF SANTA ANA i (Ann tldo-F tandeVE�� A* or Civil Engineer SANTA ANA CITY COUNCIL Miguel A. pw4w Juan valepaa vicenle Sa Mio Wa ld Penwcza Jose SIMe wyoe reuWed s wads warna 'Mmst my,6do hLIM;Lpyr Marx ft m mane va•m�emaIDsartrana en rz nelena®zero. ar•a rn vacant Ceo4a1 asUf wam a wmV 4 L+p1es�II_i.Js �,L MAYOR Miguel A Pulido MAYOR PRO TEM Juan Villegas COUNCILMEMBERS Cecilia Iglesias David Penaloza Vicente Sarmiento Jose Soldrio CITY OF SANTA ANA PUBLIC WORKS AGENCY 220 S. Daisy Ave (M-85) Santa Ana, California 92702 www.santa-ana.org (714)647.3320 CITY MANAGER Kristine Ridge CITY ATTORNEY Sonia R. Carvalho ACTING CLERK OF THE COUNCIL Norma Mare -Ramirez ADDENDUM FOUR SUBJECT: PROJECT NO.17-6437; CITYWIDE SEWR MAIN IMPROVEMENTS The following changes/clarifications have been made to the plans and specifications of the subject project: I. ADDENDUM ONE ITEM 1 REPLACE with: Revised BID PROPOSAL; Pages (P-I to P-3) of P-17 (See Attachment) Description of changes: • Thickness clarification (T=2") -Bid Item 5 • Quantity Adjustment - Bid Item 6 2. APPENDIX A DEFENITION OF BID ITEMS Page 2 of 6 CURRENT Bid Item No. 4 - Asphalt Concrete (AC) Paving This work under this item consist of furnishing the material and placing asphalt concrete pavement; preparing, grading, and compacting the subgrade; and leveling course in accordance with the provisions of Section 302-5, "Asphalt Concrete Pavement," of the Standard Specifications and contract documents. Payment at the price bid per Ton shall be considered as full compensation for doing all work as specified above, and no additional or separate compensation will be allowed therefore. �i� SANTA ANA CITY COUNCIL Mg, IA Puldo JwavLapaa veame saimemo DzA Pena'!ma Jam Samoo WWI eaclaqamas Malmo Mary Vim ram, wu45 wval a2 wam3 wam4 Wnae p2LygQnma.ana= !bmaMumo-an•4m na.ymcowmi4m 4ry en Loiwror95an�saw om MquaRwlA,um 23A-36 Exhibit 3 CITY OF SANTA ANA CONSTRUCTION CONTRACT PROJECT 17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS PROJECT This CONSTRUCTION CONTRACT is made and entered into this 20`s day of Auguest, 2019 by and between the City of Santa Ana, California, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "CITY"), and G.J. Gentry General Engineering, Inc. (hereinafter "CONTRACTOR'). WITNESSETH: The CITY and the CONTRACTOR, for the consideration hereinafter named, mutually agree as follows: 1. CONTRACTOR agrees to perform all the work and famish all the materials at its own cost and expense necessary to construct and complete in a good and workmanlike manner and to the satisfaction of the City Engineer of the CITY, the Citywide Sewer Main Improvements Project (hereinafter referred to as the "WORK OF IMPROVEMENT") identified in and in accordance with the Contract Documents prepared by the City's Public Works Agency and approved by the City Council. 2. The complete Construction Contract consists of the "Contract Documents" as defined by the Standard Specifications for Public Works Construction and which include the following: • Notice Inviting Bids • Information to Bidders • Bid Proposal • Bid Bond • Contract Form • Contract Bonds • General Provisions • Special Provisions • Technical Provisions and Project Plans • Community Workforce Agreement • Appendices In case of conflict between the Contract Documents, the precedence of documents shall be as established in the Standard Specifications for Public Works Construction. 3. CITY agrees to pay and CONTRACTOR agrees to accept in full payment to complete the WORK OF IMPROVEMENT the sum total amount not to exceed One Million Two Hundred Sixty-nine Thousand Eighty-nine Dollars and Eight -four Cents ($1,269,089.84), as set forth and identified in the BID PROPOSAL, which is attached hereto and incorporated herein as Exhibit "A." The BID PROPOSAL contains a schedule of unit price(s) or lump sum(s) based on approximate quantities only, and the City does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work as may be deemed necessary or advisable. rev. 09/01/2017 23A-37 Page 1 of 3 4. CONTRACTOR agrees to complete the WORK OF IMPROVEMENT within the time specified in the Time for Completion of Improvements section of the BID PROPOSAL (Exhibit "A") including commencing construction within the timeframe therein specified after issuance of a Notice to Proceed. 5. The CONTRACTOR will pay, and will require all subcontractors to pay, all employees on the WORK OF IMPROVEMENT a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations for this work in accordance with applicable State and Federal law. If applicable, the CONTRACTOR shall adhere to the CITY'S Community Workforce Agreement (CWA), a pre -hire collective bargaining agreement, which establishes the labor relations policies and procedures for CONTRACTOR to follow in the crafts persons employed to complete the WORK OF IMPROVEMENT as more fully described in the CWA. The CWA may be found on the City's website at: hqp://www.santa-ana.org/pwa/documents/CWA.pdf CONTRACTOR shall, after award of this Contract, famish two bonds to be approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work (Performance Bond), and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished (Payment Bond). This Contract shall not become effective until such bonds are supplied to and approved by the CITY. 8. CONTRACTOR shall, prior to the release of the performance and payment bonds or the retention payment, furnish a warranty performance and payment bond (Warranty Bond). Said Warranty Bond shall also be required as a condition of project acceptance. For projects up to Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of Ten Thousand Dollars ($10,000) or Twenty Percent (20%) of the final contract price. For projects above Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of One Hundred Thousand Dollars ($100,000) or Ten Percent (10%) of the final contract price. 9. CONTRACTOR shall, after award of this Contract, furnish Certificates of Liability Insurance and Worker's Compensation Insurance as outlined in the General Provisions, to be approved by the CITY. 23A-38 Page 2 of 3 IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract on the day and year first above written. ATTEST: DAISY GOMEZ CLERK OF THE COUNCIL APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: J644N FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL: FUAD SWEISS, PE, PLS Executive Director Public Works Agency CITY OF SANTA ANA KRISTINE RIDGE City Manager CONTRACTOR: G.J. Gentry General Engineering, Inc. NAME: .ric ''S TITLE:QrG 4 4e--� 23A-39 Page 3 of 23A-40 Exhibit 4 COST ANALYSIS CONSTRUCTION OF THE PROJECT NO.-17-6437 CITYWIDE SEWER MAIN IMPROVEMENTS Construction Contract $ _11269,090 Contract Administration $ 89,900 inspection and Testing $ 100,464 Contingencies $ 170,046 TOTAL ESTIMATED CONSTRUCTION COSTS Is 1,629;500 23A-41 23A-42 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: AWARD A CONSTRUCTION CONTRACT TO G.J. GENTRY GENERAL ENGINEERING, INC., IN THE AMOUNT OF $805,829 FOR THE WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS PROJECT ESTIMATED DELIVERY COST: $1,047,579 (PROJECT NO. 16-6466) (NON -GENERAL FUND) (STRATEGIC PLAN NO. 6, 1B; 1C) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Award a construction contract to G.J. Gentry General Engineering, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $805,829, for construction of the Willard Neighborhood Sewer Main Improvements Project, for the term beginning upon execution of the contract and ending upon project completion, and authorize the City Manager and the Clerk of the Council to execute the contract subject to non - substantive changes approved by the City Manager and the City Attorney. 2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,047,579, which includes $805,829 for the construction contract, $120,875 for contract administration, inspection and testing, and a $120,875 project contingency (approximately 15% of the construction contract amount), to be paid with Sanitary Sewer Capital funds. DISCUSSION To determine sewer main pipeline replacement priorities, Public Works staff monitors pipeline condition by assessing critical factors such as history of pipeline breaks, pipe size, alignment, location, and system redundancy. The existing 6-inch-diameter vitrified clay sewer main pipes located in the Willard Neighborhood, installed in the 1920s, are deteriorating, lack of capacity, and have been identified for priority replacement (Exhibit 1). The Willard Neighborhood Sewer Main Improvements Project will install approximately 2,600 linear feet of new 8-inch polyvinyl chloride sewer main pipes, sewer laterals, and sewer manholes. Once this project is completed, the improved sewer system will eliminate sewer main obstructions, prevent sewer overflows, and reduce sewer maintenance requirements. 23B-1 Award Construction Contract to G.J. Gentry General Engineering, Inc. Willard Neighborhood Sewer Main Improvements Project August 20, 2019 Page 2 Public Outreach and Contractor Participation To provide an opportunity for local vendors to submit bids, a Notice Inviting Bids was advertised in the Orange County Register newspaper on May 10 and 15, 2019, and bids were received electronically via the City's web -based electronic bidding system, PlanetBids, on June 5, 2019. Through the PlanetBids online portal, vendors may register to receive notifications on all current and future City projects, as well as download contract documents, receive project updates and submit bids electronically. A total of 106 vendors, including 5 located in the City of Santa Ana, were notified of the project via PlanetBids. 43 vendors requested bidding documents and 12 bids were received. No bids were received from Santa Ana contractors. Bid Results Summary RANK BIDDER'S NAME LOCATION BASE BID 1 G.J. Gentry General Engineering, Inc. Upland $805,829 2 Christensen Brothers General Engineering, Inc. Apple Valley $820,570 3 CHI Construction Anaheim $994,250 4 Vasilj Inc. Irwindale $1,083,750 5 MNR Construction Inc. La Verne $1,089,200 6 William Bonadiman Riverside $1,179,200 7 SRD Engineering, Inc. Anaheim $1,225,410 8 DVD Construction Long Beach $1,237,600 9 Mike Prlich and Sons, Inc. Baldwin Park $1,239,290 10 Excel Paving Co Long Beach $1,363,363 11 E12 Beador Construction Company, Inc. Corona $1,899,300 Mike Bubalo Construction Co., Inc. Baldwin Park $2,329,000 All 12 bids received were deemed responsive. G.J. Gentry General Engineering, Inc., submitted the lowest responsive bid in the amount of $805,929 (Exhibit 2). Based on the bid analysis and a contractor's reference check, staff recommends awarding the construction contract to G.J. Gentry General Engineering, Inc., in the amount bid (Exhibit 3). 23B-2 Award Construction Contract to G.J. Gentry General Engineering, Inc. Willard Neighborhood Sewer Main Improvements Project August 20, 2019 Page 3 Project Delivery To deliver a complete project, in addition to the construction contract awarded to the lowest responsible bidder, the estimated total construction delivery cost of the project includes construction administration, inspection, and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes construction management; implementation of the City's Community Workforce Agreement requirements; inspection of the Contractor's work to ensure contract compliance, workmanship, and quality; and material testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $1,047,579. Construction Contract $805,829 Construction Administration, Inspection, and Testing $120,875 Contingencies $120,875 ESTIMATED CONSTRUCTION DELIVERY COST $1,047,579 These amounts will cover all staffing costs for delivery of this capital project and no additional funding will be used. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy B (equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe and aesthetically pleasing for all users), and Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard), ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2018-141 was filed for the project. FISCAL IMPACT As indicated in the Cost Analysis (Exhibit 4), the estimated total construction delivery cost of the project is $1,047,579, which includes the construction contract, contract administration, inspection, testing, and project contingency. The following table summarizes the funds budgeted to deliver construction of this project: 23B-3 Award Construction Contract to G.J. Gentry General Engineering, Inc. Willard Neighborhood Sewer Main Improvements Project August 20, 2019 Page 4 Fiscal Accounting Unit - Fund Accounting Unit - Year Account No. Account No. Description Account No. Description Amount FY 2019- 05417647-66220 Sanitary Sewer Capital Recovery Charges 20 (16-6466) Capital — Improvement Other Than $1,047,579 July -June Building Total $1,047,579 All Funds are scheduled for expenditure in Fiscal Year 2019-20. APPROVED AS TO FUNDS AND ACCOUNTS: Z� Fuad S. Neiss, PE, PLS Kathryn Downs, CPA Executiv Director Executive Director Public Wc fks Agency Finance and Management Services Agency Exhibits: 1. Location Map 2. Bid 3. Construction Contract 4. Cost Analysis 23B-4 Exhibit 1 wTi i Aan - wAgn ® PROJECT LOCATION SA AANA Project No. 16-6466: PWA Willard Neighborhood Sewer Main PBBOCW MAGBBCY Improvements 23B-5 City of Santa Ana Willard Neighborhood Sewer Main Improvements (16-6466), bidding on June 5, 2019 2:00 PM (Pacific) Bid Results Bidder Details Vendor Name G.J. Gentry General Engineering, Inc. Address 1297 W. 9th Street Upland, CA 91786 United States Respondee Bryan MezaSave Respondee Title VP of Public Works Phone 909-6354601 Ext. Email bryanm@g)gentry,com Vendor Type CADIR License # 991354 CA DIR Bid Detail Bid Format Electronic Submitted June 5, 2019 11:39:28 AM (Padfic) Delivery Method Bid Responsive Bid Status Submitted Confirmation # 180943 Ranking 0 Respondee Comment Buyer Comment Attachments File Title File Name General Fortes General Forrns.pdf Ownership Affidavit Ownership Affldavltpdf Bid Bond Guaranty Bid Bond Guarardy.pdf Non -Collusion Affidavit Non-Colluslon Affidavh.pdf Line Items Type Item Code UOM Base Bid Proposal 1 MoblllzationlDemobllization` LS 2 Remove Fxlsting and Construct 8' PVC SDR-26 Sewer Main LF Qty Unit Price 1 $38,667.86 26M $124.89 Page 1 Printed 071IM019 Exhibit 2 File Type General Fortes Ownership Affidavit (Notary Public) - REQ Original Hard Copy Submittal In Addition Bid Bond Guaranty (Notary Public) - REQ Original Hard Copy Submittal In Addltlon Non-Colluslon Affidavit (Notary Public) - REQ Original Hard Copy Submittal In Addition Line Total Comment $38,887.88 $324,714.00 PlanetBlds, Inc. 23B-7 City of Santa Ana Page 2 Willard Neighborhood Sewer Main Improvements (16-6466), bidding on June 5, 2019 2:00 PM (Pacific) Printed 07/16/2019 Bld Results Type Item Code U0M Qty Unit Price Line Total Comment 3 Construct New P.C.C. Sewer Manhole EA 11 $4.609.87 $49.608.67 .... ..... ... 4 Remove Existing Sewer Manhole EA 11 $1,316.96 $14,486.60 5 Construct4l' or6' PVC Sewer Lateral and Cleanoutfrorn Sewer MeInto Property Line per C.S.AStd. 1204 (Open Trench) EA 69 $2,631.82 $181,595.68 6 Construct Driveway Approach SF 2000 $13.80 $27,600.00 .......... ....... . . 7 Sewer Flow Level Monitoring and Alarming Device EA 2 $6,141.00 $12,282.00 a CCTV Inspection of Newly Constructed PVC Sewer Main and Newly Constructed PVC Sewer Laterals (Open trench/Pipe Burst) LS 1 $8,809.46 $8.809.46 9 Traffic Control LS 1 $29,081.88 $29,081.88 . .... ... .. 10 Imported Backflll for Sewer Main Construction (Trench zone backfill only)" CY 1000 $76.18 $76,180.00 .. ........ ... 11 Signing and Striping LS 1 $3,428.15 $3,428.15 12 Project Advertising Sign EA 1 $4,374.97 $4.374.97 13 As-Bullt LS 1 $25,000.00 $25.000.00 14 Labor Agreement Oversight LS 1 $10,000.00 $10,000.00 Subtotal $805,829.03 Asterisk Notes (per P-3 of P-16of Specifications) -NOT part of Total Bid Calculation 15 MobIlIzatlon/DernobIlIzation bid Item Is limited to a maximum of 5% of the Total Bid as 0 0 0 16 The quantity for this bid Item is shown for bid comparison only. This bid Item shall not be subject to the 25% limit as stated In Section 3-2 of the Specifications... ea 0 0 0 Subtotal a Total $805,829:03 1 PlanatBlds, Inc. 23B-8 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS BID PROPOSAL TO: CITY COUNCIL OF THE CITY OF SANTA ANA FROM: G.J. Gentry General Engineering, Inc. REQUIREMENT: The undersigned bidder declares that they have carefully examined the location of the proposed work, that they have examined the Contract Documents in its entirety and hereby proposes to furnish all material and do all the work required to complete the said work in accordance with said plans (if any) and the specifications for the unit price(s) or lump sum(s) set forth in the following schedule: Item Description Qty Unit Unit Price Amount 1 Mobilization/Demobilization (No more 1 LS S $ than 5% total bid) 38,667.86 38,667.86 2 Remove Existing and Construct 8" PVC 2600 LF S $ SDR-26 Sewer Main 124.89 324,714.00 3 Construct New P.C.C. Sewer Manhole 1 I EA $ S 4,509.87 49,608.57 4 Remove Existing Sewer Manhole 11 EA S $ 1,316.96 14,486.56 5 Construct 4" or 6" PVC Sewer Lateral and 69 EA $ S Cleanout form Sewer Main to Property 2,631.82 181,595.58 Line ver C.S.A. Std. 1204 (Open Trench 6 Construct Driveway Approach 2,000 SF S S 13.80 27,600.00 7 Sewer Flow Level Monitoring and 2 EA S S Alarming Device 6,141.00 12,282.00 8 CCTV Inspection of Newly Constructed I LS S $ PVC Sewer Main and Newly Constructed 8,809.46 8,809.46 PVC Sewer Laterals (Open trench/Pipe Burst 9 Traffic Control I LS S S 29,081.88 29,081.88 10 Imported Backfill for Sewer Main 1,000 CY S S Construction (Trench zone backfill only)* 76.18 76,180.00 11 Signing and Striping I LS S S 3.428.15 3,428.15 12 Project Advertising Sign 1 EA S S 4,374.97 4,374.97 13 As -Built I I LS I 525,000 525,000 P-1 ofP-I6 23B-9 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS Item Description Qty Unit Unit Price Amount 14 Labor Agreement Oversight I LS S10,000 $10,000 TOTAL BASE BID S 805,829.03 The lowest responsible bidder shall be selected based on the total base bid. The City reserves the right to award the Base Bid, and any, all, or none of the add-altemate bid items (if any). ° The quantity for this bid item is shown for bid comparison only. This bid item shall not be subject to the "25%" limit as stated in Section 3-2 of the Standard Specifications. The actual amount for this item will be dictated by the actual quantity used, and the Agency reserves the right to increase or decrease the quantity of this item accordingly. TIME FOR COMPLETION OF IMPROVEMENTS AND LIQUIDATED DAMAGES The undersigned bidder hereby proposes to complete the Work for the total base bid amount shown above, within ninety five (95) working days after the commencement date stated in the Notice to Proceed. • 15 —Working Days for exploratory potholing and data gathering ° 80 — Working Days for project construction The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $1,500 per calendar day. Name of Firm G.J. Gentry General Engineering, Inc. Signature of BIDDER Title Chief Estimator (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) P-2 of P-16 23B-10 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS BIDDER'S STATEMENT BIDDER understands and agrees that this Bid Proposal, Contract Documents and subsequent Construction Contract Agreement shall constitute the entire agreement between BIDDER and the AGENCY only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting hereon the action of approval of the Council, signed by the Public Works Agency Executive Director or his/her duly authorized agent, and signed by the City Attorney, denoting his approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to BIDDER or deposited with the United States Postal Service properly addressed to the BIDDER with the correct postage affixed thereto. BIDDER further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish AGENCY all required bonds and certificate of liability insurance within ten (10) business days or the funds, check, draft, or BIDDERS bond substituted in lieu thereof accompanying this proposal shall become the property of the AGENCY and shall be considered as payment of damages due to the delay and other causes suffered by AGENCY because of the failure to furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered is difficult to ascertain; otherwise said funds, check, drafts, or BIDDER'S bond substituted in lieu thereof shall be returned to the undersigned. BIDDER understands that a bid is required for the entire work, the estimated quantities set forth in the bid schedule are solely for the purpose of comparing bids, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. The BIDDER also certifies that the bid is a balanced bid. In accordance with Section 7028.15 of the California Business and Professions Code, the undersigned certifies under penalty of perjury that the foregoing is true and correct. Name of Firm G.J. Gentry General Engineering, Inc. Signature of BIDDER z Title Chief Estimator (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) P-3 of 1'-16 23B-11 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS CONTRACTOR'S LICENSING AND REGISTRATION STATEMENT The undersigned contractor, or corporate officer, declares under penalty of perjury that he/she and all his/her subcontractors are registered with the State of California Department of Industrial Relations (DIR), and that the following is true and correct. Contractor's Name: G.J. Gentry General Engineering, Inc. Business Address: 1297 W 9th Street. Upland, CA. 91786 Business E-Mail Address: bryanm@gjgentry.com Telephone: (909) 693-3391 State Contractor's License No. and Class: 991354 - A License Expiration Date: 03/31/2020 State Dept. of Industrial Relations (DIR) Registration No.: 1000009875 State Dept. of Industrial Relations (DIR) 06/23/2019 Registration Expiration Date: Signed: Title: P-4 of P-16 23B-12 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS PREVAILING WAGE COMPLIANCE AND MONITORING STATEMENT Contractor is aware of the requirements of California Labor Code Section 1720, et seq., as well as California Code of Regulations, Title g, Section 16,000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. Since the services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. The undersigned certifies that the foregoing is true and correct. Name of Firm G.J. Gentry General Engineering, Inc.. Signature of BIDDER' Title Chief Estimator (if an individual, so state) P-5 of P-16 23B-13 e 6 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS OWNERSHIP AFFIDAVIT STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITYOF SSANNTAA A/NANA /' ` �d-w 1 /t N r t/"+t� , being duly sworn, deposes and says: ❑INDIVIDUAL That he/she is the party making the foregoing proposal: ❑ PARTNERSHIP That he/she is a member of the co -partnership firm designated as: and who has been and is duly vested with the authority to make and execute instruments for the co -partnership by: who constitute the other members of the co -partnership. WORPORATION Tt aft he is� r`Incl. a corporation which is makingg the foregoing proposal:([�r.Yl C ❑ JOINT VENTURE That he is of. one of the parties making the foregoing proposal as ajoint venture, and the he/she has been and is duly vested with the authority to execute instruments for an on behalf of the parties making said bid who are: that such a bid is genuine and not collusive or sham, and has not in any manner sought by collusion to secure any advantage against the City of Santa Ana or any person interested in the proposed contract, for hit elf or a erson. mature of Bidder Subscribed and swom to before me this day of 20 Signature of officer Administering Oath (Notary Public) P-6 of P-16 ____23B-14 r'• A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Bernardino Subscribed and sworn to (or affirmed) before me on this 5th day of June , 2019 by Garrett Gentry proved to me on the basis of satisfactory evidence to be the persons) who appeared before me. ALLYSON FREDERICKSEN a Commission #2226564 c of Notary Public • California N Son Bernardino County ro my Comm. Expires December 2E, 2021 (Seal) Signature 23B-15 . 1: re Bond No. CSBA-10943 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS felt 7:iiJ.17 KNOW ALL PRESENT that. Garrett J. Gentry General Engineering Incorporated , as BIDDER, and U.S. Specialty Insurance Company , as SURETY, - are held and firmly bound unto the CITY OF SANTA ANA, as AGENCY, in the penal sum of Ten Percent of Amount Bid Dollars ($10% 1, which is ten percent (10%) of the total amount bid by BIDDER to AGENCY for the above -stated project, for the payment of which sum, BIDDER and SURETY agree to be bound, jointly and severally, firmly by these presents. THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas BIDDER is about to submit a bid to AGENCY for the above -stated project, if said bid is rejected, or if said bid is accepted and a contract is awarded and entered into by BIDDER in the manner and time specified, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY. IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seal this 29th day of May , 2019 . BIDDER' 1297 W 9th Street SURETY* 625 The City Drive So.. Ste. 205 umnge, eA 9 067 (714) 51&1232 Subscribed and swom to before me t I day of , 20— Signature: Notary Public in and for the County of Stale of Provide BIDDER/ SURETY name, address, and telephone number and the name, title; address, and telephone number of authorized representative. P-7 of P-16 23B-16 .1 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange ) On 5/29/2019 before me, Melissa Ann Vaccaro, Notary Public (insert name and title of the officer) personally appeared Shaunna Rozelle Ostrom who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. NN vacca;0'241394em lic-California COUNTY MRX_ \\_ _ies May 12,2022K Signature Melissa Ann acca�Vaccaro r11H SLrnO (Seal) 23B-17 POWER OF ATTORNEY AMERICAN CONTRACTORS INDENINITY COMPANY TEXAS BONDING COMPAW UNITED STATES SURETY COMPANY U.S. SPECIALTY INSURANCE COMPANY KNOW ALL MEN BY THESE PRESENTS: That American Contractors Indemnity Company, a California corporation, Texas Bonding Company, an assumed name of American Contractors Indemnity Company, United States Surety Company, aMaryland corporation and U.S. Specialty Insurance Company, a Texas corporation (collectively, the "Companies"), do by these presents make, constitute and appoint: Daniel Huckabay, Arturo Ayala, Dwight Reilly, Shaunna Rozelle Ostrom or Frank Morones of Orange, California its true and lawful Attomey(s)-in-fact, each in their separate capacity if more than one is named above, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognizances, undertakings or other instruments or contracts of suretyship to include riders, amendments, and consents of surety, providing the bond penalty does not exceed ******* Twenty Million ******** Dollars (S *20.000.000.00* ). This Power of Attorney shall expire without further action on November 3,2019. This Power of Attorney is granted under and by authority of the following resolutions adopted by the Boards of Directors of the Companies: Be it Resolved that the President. any Vice -President, any Assistant Vice -President, any Secretary or any Assistant Secretary shall be and is hereby vested with full power and authority to appoint arty one or more suitable persona as Attomey(s)-in-Fact to represent and act for and on behalf of the Company subject to the following provisions: Attomey-in-Face may be given full power and authority for and in the time of and on behalf of the Company, to execute, acknowledge and deliver, any and all bonds, ree gniza"ces, contracts, agreements or indemnity and other conditional or obligatory undertakings, including any and all consents for the release of retained percentages and/or final estimates on engineering and construction contracts, and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attomey-in-Fact shall be binding upon the Company as if signed by the President and sealed and eD'ected by the Corporate Secretary. Be it Resohrd that the signature of any authorized officer and seal of the Company heretofore or hereafter affued to my power of attorney or am certificate relating thereto by facsimile, and my power of ano ncy or certificate hearing facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. IN WITNESS WHEREOF, The Companies have caused this instrument to be signed and their corporate seals to be hereto affixed, this Ist day of November, 2016. AMERICAN CONTRACTORS INDEMNITY COMPANY TEXAS BONDING COMPANY Corporate Seals UNITED STATES SURETY COMPANY U.S. SPECIALTY INSURANCE COMPANY ...... yClOjp'.'1. +`ES SUFE. ,..J..... Cy" ,.a.`y m�•.'Ow �OEI-�44 J1 f'% r r*_ _W. ,"2=k+'�/�7 _. _Na/�ipq� :tali' By: 1�� r -'t\ AN -'`• [N 't`£ i's`y Daniel P. Aguilag Vtce r s d 'syt%N�dod': i'•.,wEOi tE�..ex ten✓" �. ' A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Los Angeles SS: On this Ist day of November, 2016. before me, Sabina Morgervein, a notary public, personally appeared Daniel P. Aguilar, Vice President of American Contractors Indemnity Company, Texas Bonding Company, United States Surety Company and U.S. Specialty Insurance Company who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing pamgmph is true and correct. WITNESS my hand and official seal. SABINA MOBGENSTEIN Signature commission a 2129258 gn (Seal) Notary os AngelIs Angeles County My Comm. Excites Now 3. 2019 1, Kin Lo, Assistant Secretary of American Contractors Indemnity Company, Texas Bonding Company, United States Surety Company and U.S. Specialty Insurance Company, do hereby certify that the above and foregoing is awe and correct copy of a Power of Attorney, executed by said Companies, which is still in full force and effect; furthermore, the resolutions of the Boards of Directors, set out in the Power of Attorney are in full force and effect. In Witness Whereof, I have hereunto set my hand and affixed the seals of said Companies at Los Angeles, California this 29th day of als 2019 . V CoRlorate Seals 'i;o z.'s-4-; 'r 3 0�11. 1.4Q4L4jg2 RF/�""h 3e DNDINO ei .+Y"1^ii^ruy2y fir 'Ga I� Or =f1 • fi iyd E }��i �_ _W' C3 'Wi IZ� Bond No. CSHA-10943 s% i pa,.. �� g t .�,g ;�; a �,�4 � a � � 1Cio Lop Assistant Secretary Agency No. 8472 -dF I ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Bernardino On 6/5/19 before me, Allyson Fredericksen, Notary Public (insert name and title of the officer) personally appeared Garrett Gentry who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ALLYSON FMEMMEN jj a Commission/2226564 c N Notary Public • California m WITNESS my hand and official seal. son Bernardino County TO My Comm. Expires December 24 2021 Signature (Seal) 23B-19 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS LIST OF SUB -CONTRACTORS Section 4100 et. seq. of the Public Contract Code requires listing of all subcontractors with the bid for all subcontract work exceeding the following amount: o Streets, highways including bridge projects: Y2% of the bid or S 10,000, whichever is greater o Buildings, parks, or other projects: %:% of the bid Section 1725.5 of the Public Contract Code requires all Subcontractors be registered with the State Department of Industrial Relations (DIR). BIDDER proposes to subcontract certain portions of the work to the fines listed below: Name ALL WORK TO BE DONE BY GJ GENTRY License #/Exp. DIR Reg. #/Exp. Location Phone Type Of Work Amount S Name License #/Exp. DIR Reg. #/Exp. License # _ Location Phone Type Of Work Amount S Name License #/Exp. DIR Reg. #/Exp. License # Location Phone Type Of Work Amount $ i 1 I1 0- Vinature of dd Name _ License #/Exp. DIR Reg. #/Exp Location Phone _ Type Of Work Amount $ Name _ License #/Exp. DIR Reg. #/Exp License # _ Location _ Phone _ Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # Location Phone Type Of Work Amount $ P-8 of P-16 23B-20 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS REFERENCES The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER has performed similar work within the past three years. 1. City of Norco 2870 Clark Ave. Norco CA. Name and Address of Owner. Dan Cutherson (951) 270-5627 Name and Telephone Number of person familiar with project. $1,000,000.00 Underground Utilities May 2019 Contract Amount Type of Work Date Completed 2 City of Orange 300 E. Chapman Ave. Orange, CA. Name and Address of owner. Cole Stupy (714) 920-6046 Name and Telephone Number of person familiar with project. $1,604,925.00 Underground Utilities anConcrete Contract Amount Type of Work 3. City of Fullerton 303 W. Commonwealth Ave. December 2018 Date Completed Name and Address of owner. Jose Madena(714) 738-6863 Name and Telephone Number of person familiar with project. $1,200,000.00 Underground Utilities and Concrete On -Going Contract Amount Type of Work Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. Commercial Surety Bond Agency - 1411 N Batavia St. Orange, CA. Dan Huckabay (714) 516-1232 2�6 3BP1 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS ADDITIONAL REFERENCES The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER or Subcontractor has performed street improvement work in the past 5 years. 2. 3. Name and Address of Owner. Name and Telephone Number of person familiar with project. Contract Amount Name and Address of owner. Type of Work Name and Telephone Number of person familiar with project. Contract Amount Name and Address of owner. Type of Work Name and Telephone Number of person familiar with project. Contract Amount Type of Work Date Completed Date Completed Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. P-10 of P-16 23B-22 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the BIDDER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived or agreed with any BIDDER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the BIDDER or any BIDDER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note: The above Non -collusion Affidavit is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Non -collusion Affidavit. BIDDERS are cautioned that making a false certification may subject the certifier to rriminal nrncerwinn Signed State of California County of Subscribed and sworn to (or affirmed) before me on this day of 20_. by . proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me Notary Public Signature Notary Public Seal P-1I ofP-16 23B-23 X. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Bernardino Subscribed and sworn to (or affirmed) before me on this 5th day of June , 2019 , by Garrett Gentry proved to me on the basis of satisfactory evidence to be the person(s) whoa peare f ALLYSON FREDERICKSEN N Commission #2226564 c Notary Public California N Son Bernardino County My Comm. Expires December 242021 (Seal) Signature 23B-24 CITY OF SANTA ANA PROPOSAL PROTECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS NON-DISCRIMINATION CERTIFICATE The undersigned contractor or corporate officer, during the performance of this contract, certifies as follows: The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. The Contractor shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. P-12 of P-16 23B-25 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the Contractor may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any contractor of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. . Signed: Title: Chief Estimator Finn: G.J. Gentry General Engineering, Inc. Date: 06/05/2019 P-13 of P-16 23B-26 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS STATEMENT REGARDING APPRENTICESHIP REQUIREMENTS The undersigned BIDDER is familiar with the requirements of Section 1777.5 of the State Labor Code regarding employment of apprentices, and understands that contractors on contracts exceeding $30,000 or 20 working days shall: I. Apply to the joint apprenticeship committee administering the apprenticeship standards of the craft or trade in the area of the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. 2. Employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the apprenticeship standards. 3. Contribute to the fund or funds in each craft or trade in which he/she employs journeymen or apprentices on the public work, in the same amount or upon the same basis and in the same manner as the other contractors, except contractors not signatory to the trust agreement shall pay a like amount to the California Apprenticeship Council. Signed: 6 --U "M A Title: Chief Estimator Finn: G.J. Gentry General Engineering, Inc. Date: 06/05/2019 P-14 ofP-16 23B-27 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS STATEMENT REGARDING "ANTI -KICKBACK" REQUIREMENTS The undersigned is submitting this proposal for performing by contract the work required by these bid documents, agrees to comply with the Copeland "Anti -Kickback" Act (18 USC 74) as supplemented in the Department of Labor regulations (29 CFR, Part 3). This act provides that each contractor or subcontractor shall be prohibited from inducing, by any means, any person employed in the construction or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Signed: aw- IMS-09 Title: Chief Estimator Firm: G.J. Gentry General Engineering, Inc. Date: 06/05/2019 P-15 of P-16 23B-28 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS PUBLIC CONTRACT CODE SECTION 10162 OUESTIONNAIRE In conformance with Public Contract Code Section 10162, the BIDDER shall complete, under penalty of perjury, the following questionnaire: Has the BIDDER, any officer of the BIDDER, or any employee of the BIDDER who has a proprietary interest in the BIDDER, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation? Yes No X If the answer is yes, explain the circumstances in the following space. Hof P-16 B-29 23B-30 Exhibit 3 CITY OF SANTA ANA CONSTRUCTION CONTRACT PROJECT 16-6466 WILLARD NEIGHBORHOOD SEWER MAIN IMPROVEMENTS This CONSTRUCTION CONTRACT is made and entered into this 20a' day of Auguest, 2019 by and between the City of Santa Ana, California, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "CITY"), and G.J. Gentry General Engineering, Inc. (hereinafter "CONTRACTOR"). WITNESSETH: The CITY and the CONTRACTOR, for the consideration hereinafter named, mutually agree as follows: CONTRACTOR agrees to perform all the work and furnish all the materials at its own cost and expense necessary to construct and complete in a good and workmanlike manner and to the satisfaction of the City Engineer of the CITY, the Willard Neighborhood Sewer Main Improvements Project (hereinafter referred to as the "WORK OF IMPROVEMENT") identified in and in accordance with the Contract Documents prepared by the City's Public Works Agency and approved by the City Council. 2. The complete Construction Contract consists of the "Contract Documents" as deemed by the Standard Specifications for Public Works Construction and which include the following: • Notice Inviting Bids • Information to Bidders • Bid Proposal • Bid Bond • Contract Form • Contract Bonds • General Provisions • Special Provisions • Technical Provisions and Project Plans • Community Workforce Agreement • Appendices In case of conflict between the Contract Documents, the precedence of documents shall be as established in the Standard Specifications for Public Works Construction. CITY agrees to pay and CONTRACTOR agrees to accept in full payment to complete the WORK OF IMPROVEMENT the sum total amount not to exceed Eight Hundred Five Thousand Eight Hundred Twenty-nine Dollars and Three Cents ($805,829.03), as set forth and identified in the BID PROPOSAL, which is attached hereto and incorporated herein as Exhibit "A." The BID PROPOSAL contains a schedule of unit price(s) or lump sum(s) based on approximate quantities only, and the City does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work as may be deemed necessary or advisable. rev. 09/01/2017 23B-31 Pagel of3 4. CONTRACTOR agrees to complete the WORK OF IMPROVEMENT within the time specified in the Time for Completion of Improvements section of the BID PROPOSAL (Exhibit "A") including commencing construction within the timeframe therein specified after issuance of a Notice to Proceed. The CONTRACTOR will pay, and will require all subcontractors to pay, all employees on the WORK OF IMPROVEMENT a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations for this work in accordance with applicable State and Federal law. 6. If applicable, the CONTRACTOR shall adhere to the CITY'S Community Workforce Agreement (CWA), a pre -hire collective bargaining agreement, which establishes the labor relations policies and procedures for CONTRACTOR to follow in the crafts persons employed to complete the WORK OF IMPROVEMENT as more fully described in the CWA. The CWA may be found on the City's website at: htW://www.santa-ana.org/pwa/documents/CWA.pdf CONTRACTOR shall, after award of this Contract, famish two bonds to be approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work (Performance Bond), and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished (Payment Bond). This Contract shall not become effective until such bonds are supplied to and approved by the CITY. 8. CONTRACTOR shall, prior to the release of the performance and payment bonds or the retention payment,.fumish a warranty _performance and payment bond (Warranty Bond). Said Warranty Bond shall also be required as a condition of project acceptance. For projects up to Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of Ten Thousand Dollars ($10,000) or Twenty Percent (20%) of the final contract price. For projects above Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of One Hundred Thousand Dollars ($100,000) or Ten Percent (10%) of the final contract price. 9. CONTRACTOR shall, after award of this Contract, furnish Certificates of Liability Insurance and Worker's Compensation Insurance as outlined in the General Provisions, to be approved by the CITY. // 23B-32 Paget of IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract on the day and year first above written. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney HN FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL: FUAD SWEISS, PE, PLS Executive Director Public Works Agency CITY OF SANTA ANA KRISTINE RIDGE City Manager CONTRACTOR: G.J. Gentry General Engineering, Inc. AMEN •_/'I C+j�...%r�r� TITLE: Page 3 of 3 23B-33 23B-34 Exhibit 4 COST ANALYSIS CONSTRUCTION OF THE PROJECT NO. 16-6466: WILLARD NEIGBORHOOD SEWER MAIN IMPROVEMENTS Construction Contract $ 805,829 Contract Administration $ 51,000 inspection and Testing $ 69,874 Contingencies $ -120;875 _ TOTAL ESTIMATED CONSTRUCTION COSTS Is -1',047,579 23B-35 23B-36 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: AWARD A CONSTRUCTION CONTRACT TO R.J. NOBLE COMPANY IN THE AMOUNT OF $843,301 FOR THE ALTON AVENUE REHABILITATION AND D-03 CHANNEL IMPROVEMENTS AT ALTON AVENUE REPAIR PROJECTS ESTIMATED DELIVERY COST: $1,033,360 (PROJECT NOS.19-6941, 19-6617) (NON -GENERAL FUND) (STRATEGIC PLAN NOS. 6, 1B; 1C; 1G) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1sl Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CI MANAGER RECOMMENDED ACTION 1. Award a construction contract to R.J. Noble Company, the lowest responsible bidder, in accordance with the base bid in the amount of $843,301, for construction of the Alton Avenue Rehabilitation from Raitt Street to Bristol Street Project and the D-03 Channel Improvements Project at Alton Avenue, for the term beginning upon execution of the contract and ending upon project completion, and authorize the City Manager and the Clerk of the Council to execute the contract subject to non -substantive changes approved by the City Manager and the City Attorney. 2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,033,360, which includes $843,301 for construction contract, $105,789 for contract administration, inspection and testing, and a $84,270 project contingency (approximately 10% of the construction contract amount), paid with Highway Users Tax Account -Road Maintenance and Rehabilitation funds and Public Works Storm Drain Construction funds. The budget is sufficient to cover the contract. DISCUSSION The City's Pavement Management Program identified Alton Avenue from Raitt Street to Bristol Street as high priority for street rehabilitation and for repair of damaged grate inlets at the D-03 Channel (Exhibit 1). The pavement and grate inlets have deteriorated due to weather, age, and wear -and -tear from heavy vehicles. In addition, the poor drainage problem can lead to road damage. 23C-1 Award Contract to R.J. Noble Company for Alton Avenue Rehabilitation and Alton Drainage Repair Projects August 20, 2019 Page 2 The proposed improvements include the removal and replacement of failed asphalt pavement; removal and installation of expanded drainage inlet; replacement of damaged concrete curb, gutters, sidewalks, and curb ramps; and installation of traffic loops, traffic striping, and pavement markings. Once completed, these improvements will enhance the ride quality, drainage capacity, visual appearance of the street, and will comply with Americans with Disabilities (ADA) standards. Public Outreach and Contractor Participation To provide an opportunity for local vendors to submit bids, a Notice Inviting Bids was advertised in the Orange County Register on July 3 and 10, 2019, and bids were received electronically via. the City's web -based electronic bidding system, PlanetBids, on July 25, 2019. Through the PlanetBids online portal, vendors may register to receive notifications on all current and future City projects, as well as download contract documents, receive project updates, and submit bids electronically. A total of 341 vendors, including 15 located in the City of Santa Ana, were notified of the project via PlanetBids. 42 vendors requested bidding documents and 4 bids were received. No bids were received from Santa Ana contractors. Bid Results Summary RANK BIDDER'S NAME LOCATION BASE BID 1 R.J. Noble Company Orange $843,301 2 All American Asphalt Corona $853,873 3 Excel Paving Co Long Beach $897,565 4 Aid Builders Inc. Los Alamitos $911,250 All 4 bids received were deemed responsive. R.J. Noble Company submitted the lowest responsive bid in the amount of $843,301 (Exhibit 2). Based on the bid analysis and a contractor's reference check, staff recommends awarding the construction contract to R.J. Noble Company, in the amount bid (Exhibit 3). Project Delivery To deliver a complete project, in addition to the construction contract awarded to the lowest responsible bidder, the estimated total construction delivery cost of the project includes construction administration, inspection, and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes construction management; implementation of the City's Community Workforce Agreement requirements; inspection of the Contractor's work to ensure contract compliance, 23C-2 Award Contract to R.J. Noble Company for Alton Avenue Rehabilitation and Alton Drainage Repair Projects August 20, 2019 Page 3 workmanship, and quality; and material testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $1,033,360. Construction Contract $843,301 Construction Administration, Inspection and Testing $105,789 Contingencies $84,270 ESTIMATED CONSTRUCTION DELIVERY COST $1,033,360 Project funds will cover all staffing costs for delivery of this capital project. No additional funding will be used. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy B (equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe and aesthetically pleasing for all users), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard), and Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment Plan - e.g., neighborhood streets, traffic improvements, etc.). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2019-61 and ER-2019-64 were filed for the project. FISCAL IMPACT As indicated in the Cost Analysis (Exhibit 4), the estimated total construction delivery cost of the project is $1,033,360, which includes construction, contract administration, inspection, testing, design engineering, and an authorized contingency of $84,270. The following table summarizes the funds available and funds budgeted in the Fiscal Year 2019-20 Capital Improvement Program to deliver construction of this project: 23C-3 Award Contract to R.J. Noble Company for Alton Avenue Rehabilitation and Alton Drainage Repair Projects August 20, 2019 Page 4 Accounting Unit— Fund Accounting Unit - Fiscal Year Account No. Description Account No. Amount Project No.)Description HUTA Gas Tax- $958,000 FY 2019-20 05917665-66220 Select Street RMRA— July-June (19-6941) Construction Improvements Other Than Building Public Works -Storm $75,360 FY 2019-20 22317660-66220 Local Drainage Drain Construction — July -June (19-6617) Area III Improvements Other Than Building $1,033,360 Funds are scheduled.for expenditure in Fiscal Year 2019-20. APPROVED AS TO FUNDS AND ACCOUNTS: ltt�:� Fuad S. Siss, PE, PLS Kathryn Dowhs, CPA Executive q1rector Executive Director a� Public Worl# Agency Finance and Management Services Agency FSS/TC/MO Exhibits: 1. Location Map 2. Bid 3. Construction Contract 4. Cost Analysis 23C-4 Exhibit 1 SMTA ANA Project Nos. 19-6941 & 19-6617: PWA ALTON REHABILITATION FROM RAITT TO BRISTOL & ALTON DRAINAGE NSUCM10USA` G" I REPAIR AT D-03 CHANNEL 23C-5 23C-6 City of Santa Ana ALTON REHABILITATION FROM RAITT TO BRISTOL & ALTON DRAINAGE REPAIR AT D-03 CHANNEL (19.6941 & Bid Results Bidder Details Vendor Name R.J. Noble Company Address 15505 E. Lincoln Ave Orange, CA 92805 United States Respondee Jennifer De longh Respondee Title Contract Administrator Phone 714-637-1550 Ext. 311 Email Jennlferdelongh@yahoo.corn Vendor Type License# 782908 CA DIR Bid Detail Old Format Electronic Submitted July 25, 2019 1:57:07 PM (Pacific) Delivery Method Bid Responsive Bid Status Submitted Confirmation # 185831 Ranking 0 Respondee Comment Buyer Comment Attachments File Title GENERALATTACHMENT Ownership Affidavit Alton Alton Bid Bond Non Collusion Affidavit Line Items Typo Item Code Base Sid Items 1 Unclassified Excavation' 2 AC Pavemenr File Name ALTON REHAB GEN DOCS07252019135513.pdf 19-6941 Alton Ownership Affidavit 7-25- 1907162019143320.pdf . 19.6941 Alton Bid Bond 7-25.1907162019143404.pdf 19-6941 Alton Non Collusion Affidavit 7.25- 1907162019143451.pdf UOM Oty Unit Price CY TN Exhibit-2 Page 1 Printed 0712512019 File Type General Attachment Ownership Affidavit (Notary Public)- RED Original Hard Copy Submittal In Addl0on Bid Band Guaranty (Notary Public) - RED Original Hard Copy Submgtal In Addition Nan -Collusion Affidavit (Notary Public) - RED Original Hard Copy Submittal In Addition Line Total Comment 900 $128.00 $113,400.00 1300 $95.00 $123,600.00 City of Santa Ana Page 2 ALTON REHABILITATION FROM RAITT TO B RISTOL & ALTON DRAINAGE REPAIR AT D-03 CHANNEL (19-6941 & Printed 0V2=19 Bid Resufts Typo Item Code UoM oty Unit Prim Line Total Comment 3 Asphalt Rubber Hot Mix" TN 1920 . ... $86.00 $163.200.00 4 ARAM. .. .... ...... .... SY ... ... 10800 $7.00 $117.000.00 5 Crack Seal* ........... . GAL 3W $48.00 $16,800.00 6 Cold Milling (3"-4")* SF 136000 ............. $0.28 $38.080.00 ... .. .. 7 PCC Sidewalk (41 . SF 3100 $5.25 $16,275.00 a PCC Driveway Approach (Commercial = 8') SF 400 $9.00 $3.600.00 9 PCC Curb Ramp ....... .. . SF 1500 $12.00 $18,000.00 10 PCC Curb and Gutter (Type A-2-8) .. . ... ........ .... ... . LF 580 $30.00 $16,800.00 11 Root Shave EA 4 $300.00 $1,200.00 12 Adjust Water Valve Frame and Cover to Finished Grade EA 11 $1,300.00 $14,300.00 13 Adjust Sawerand Drainage Manhole to Finished Grade EA a $1.300.00 $3,900.00 14 Fumish and Install Now 46 Pullbox ........ ... EA 14 $900.00 $12,600.00 15 Furnish and Install New 46 Pullbox Tragic Rated EA 2 $1.000.00 $2,000.00 16 Furnish and Install Traffic Loops Type E EA 30 $225.011 $6,750.00 17 Temporary Construction Sign .. ... ... .. .. EA 2 $525.00 $1.050.00 18 Project Advertisement Sign EA 2 $800.00 $1,600.00 PlanotBids Inc 23C-8 City of Santa Ana Page 3 ALTON REHABILITATION FROM RAITT TO BRISTOL & ALTON DRAINAGE REPAIR AT D-03 CHANNEL (I M941 & Pmled 0712512019 Bid Results Type Item Code u0M 0tv Unit Price Line Total Comment 19 Labor Agreement Overelght LS 1 $15,000.00 $15,000.00 20 Signing and Stdping t LS 1 $120,000.00 $120,000.00 21 Structure Concrete CY 6 $4,200.00 $26,200.00 22 Bar Reinforcing Steel LB 375 $5.25 $1.968.75 23 Grating and Frame EA 4 $850.00 $3,400.00 24 Miscellaneous Metal. LB 250 $3.16 $787.60 25 1-Sack Slurry CY 6 $216.00 $1.290.00 26 Orange County Permit Requirements LB 1 $5,000.00 $5,000.00 Subtotal $843,301.25 Asterisk Notes (Per Section 3-2 of Standard Specifications) - NOT part of Total Bid Calculation 27 ' = The quantity for this bid Rom Is shown for bid comparison only. This bid Item shall not be subject to the °250/swlimit as stated In Section 3.2 of the Standard SpeclBcallons. Thls bid Rem shall not be subject to the "25%e Ilmft as stated In Section 3-2 of the Standard SpeclBcaUens. The actual amount for this Item will be dictated by the actual quantitly used, and the Agency reserves the right to Increase a decrease the quantity of this Item accordingly. ea 0 0 0 28 t = This bid Item Is considered a Specialty Item per Section 23.2 of the Standard SpeclBcatlons. as 0 0 . a . Subtotal 0 Total $843,301.25 PIP V In9 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL BID PROPOSAL TO: CITY COUNCIL OF THE CITY OF SANTA ANA FROM: R.J. NOBLE COMPANY REQUIREMENT: The undersigned bidder declares that they have carefully examined the location of the proposed work, that they have examined the Contract Documents in its entirety and hereby proposes to furnish all material and do all the work required to complete the said work in accordance with said plans (if any) and the specifications for the unit price(s) or lump sum(s) set forth in the following schedule: Item Description Qty Unit Unit Price Amount 1 Unclassified Excavation* 900 CY S S 2 ACPavemenf" 1,300 TN $ S 3 Asphalt Rubber Hot Mix* 1,920 TN S S 4 ARAM* 16,800 SY S S 5 Crack Seal* 350 GAL $ S 6 Cold Milling (3"-4")' 136,000 SF S S 7 PCC Sidewalk (4") 3,100 SF S S 8 PCC Driveway Approach (Commercial = 8") 400 SF $ $ 9 PCC Curb Ramp 1,500 SF S S 10 PCC Curb and Gutter (Type A-2-8) 560 LF S S I Root Shave 4 EA S S 12 Adjust Water Valve Frame and Cover to Finished Grade 11 EA S s 13 Adjust Sewer and Drainage Manhole to Finished Grade 3 EA S S 14 Furnish and Install New N6 Pullbox 14 EA S S P-1 ofP-17 23C-10 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL Item Description Qty Unit Unit Price Amount 15 Furnish and Install New 96 Pullbox Traffic Rated 2 EA $ $ 16 Furnish and Install Traffic Loops Type E t 30 EA $ $ 17 Temporary Construction Sign 2 EA S $ 18 Project Advertisement Sign 2 EA $ S 19 Labor Agreement Oversight I LS $15,000 $ 15,000 20 Signing and Striping t 1 LS S $ 21 Structure Concrete 6 CY $ S 22 Bar Reinforcing Steel 375 LB $ S 23 Grating and Frame 4 EA $ $ 24 Miscellaneous Metal• 250 LB S S 25 1-Sack Slurry 6 CY S $ 26 Orange County Permit Requirements I LS $ $ P-2 of P-17 23C-11 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL TOTAL BASE BID S The lowest responsible bidder shall be selected based on the total base bid. The City reserves the right to award the Base Bid, and any, all, or none of the add-altemate bid items (if any). " The quantity for this bid item is shown for bid comparison only. This bid item shall not be subject to the "25%" limit as stated in Section 3-2 of the Standard Specifications. The actual amount for this item will be dictated by the actual quantity used, and the Agency reserves the right to increase or decrease the quantity of this item accordingly. t This bid item is considered a Specialty Item per Section 2-3.2 of the Standard Specifications. TIME FOR COMPLETION OF IMPROVEMENTS AND LIQUIDATED DAMAGES The undersigned bidder hereby proposes to complete the Work for the total base bid amount shown above, within forty (40) working days after the commencement date stated in the Notice to Proceed. The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $3,200 per calendar day. Name of Firm R.J. NOBLE COMPANY Signature of BIDDER Title STEVE MENDOZA, SEC TARY (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) P-3 of P-17 23C-12 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL BIDDER'S STATEMENT BIDDER understands and agrees that this Bid Proposal, Contract Documents and subsequent Construction Contract Agreement shall constitute the entire agreement between BIDDER and the AGENCY only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting hereon the action of approval of the Council, signed by the Public Works Agency Executive Director or his/her duly authorized agent, and signed by the City Attorney, denoting his approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to BIDDER or deposited with the United States Postal Service properly addressed to the BIDDER with the correct postage affixed thereto. BIDDER further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish AGENCY all required bonds and certificate of liability insurance within ten (10) business days or the funds, check, draft, or BIDDERS bond substituted in lieu thereof accompanying this proposal shall become the property of the AGENCY and shall be considered as payment of damages due to the delay and other causes suffered by AGENCY because of the failure to furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered is difficult to ascertain; otherwise said funds, check, drafts, or BIDDER'S bond substituted in lieu thereof shall be returned to the undersigned. BIDDER understands that a bid is required for the entire work, the estimated quantities set forth in the bid schedule are solely for the purpose of comparing bids, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. The BIDDER also certifies that the bid is a balanced bid. In accordance with Section 7028.15 of the California Business and Professions Code, the undersigned certifies under penalty of perjury that the foregoing is true and correct. Name of Firm R.J. NOBLE COMPANY Signature of BIDDER x Title STEVE MENDOZA, SECRETARY (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) P-4 of P-17 23C-13 e R.J. N O ff "o Company4 ASPHALT PAVING - ENGINEERING CONTRACTORS LIC. A-782908 R.J. NOBLE COMPANY A CALIFORNIA CORPORATION 15505 E. LINCOLN AVENUE ORANGE, CA 92865 CORPORATE OFFICERS: MICHAEL J. CARVER, PRESIDENT CRAIG PORTER, SENIOR VICE PRESIDENT AUSTIN CARVER, VICE PRESIDENT OF OPERATIONS KASONDRA GONZALEZ, VICE PRESIDENT OF MARKETING STEVE MENDOZA, SECRETARY JAMES N. DUCOTE, TREASURER JACOB BREEDLOVE, ASSISTANT SECRETARY ORANGE: 15505 E. LINCOLN AVE • P.O.BOX 620 - ORANGE, CALIFORNIA 92856-6620 • (714) 637-1550 • FAX (714) 921-3347 23C-14 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL CONTRACTOR'S LICENSING AND REGISTRATION STATEMENT The undersigned contractor, or corporate officer, declares under penalty of perjury that he/she and all his/her subcontractors are registered with the State of California Department of Industrial Relations (DIR), and that the following is true and correct. Contractor's Name: R.J. NOBLE COMPANY Business Address: P.O. BOX 620., ORANGE, CA 92856 Business E-Mail Address: stevemendoza@rjnoblecompany.com Telephone: 714-637-1550 State Contractor's License No. and Class: 782908 CLASS A & C-12 License Expiration Date: 08/31/2020 State Dept. of Industrial Relations (DIR) Registration No.: State Dept. of Industrial Relations (DIR) Registration Expiration Date: Signed: X Title: STEVE SECRETARY 1000004235 06/30/2022 P-5 ofP-17 23C-15 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL EVA_ILING WAGE COMPLIANCE AND MONITORING STATEMENT Contractor is aware of the requirements of California Labor Code Section 1720, et seq., as well as California Code of Regulations, Title 8, Section 16,000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on `public works" and "maintenance" projects. Since the services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. The undersigned certifies that the foregoing is true and correct. Name of Firm R.J. NOBLE COMPANY Signature of BIDDER _X � Title STEVE MENDOZA, SECRERTARY (if an individual, so P-6 of P-17 23C-16 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-694I: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL OWNERSHIP AFFIDAVIT STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITY OF SANTA ANA ) STEV E MENDOZA , being duly sworn, deposes and says: ❑ INDIVIDUAL That he/she is the parry making the foregoing proposal: []PARTNERSHIP That he/she is a member of the copartnership firm designated as: and who has been and is duly vested with the authority to make and execute instruments for the co -partnership by: who constitute the other members of the co -partnership. [$CORPORATION That he/she is of. SECRETARY OF R 1 NOBLE COMPANY a corporation which is making the foregoing proposal: ❑ )DINT VENTURE That he/she is oL• one of the parties making the foregoing proposal as a joint venture, and the he/she hasbeen and is duly vested with the authority to execute instruments for anon behalf of the parties making said bid who are: that such a bid is genuine and not collusive or sham, and has not in any manner sought by collusion to secure any advantage against the City of Santa Ana or any person interested in the proposed contract, for himself/herself or any other person. x M*4,,`_ Signature of idder STEVE MENDOZA. SECRERTRARY Subscribed andswom to IS fore me this 25TH day of JULY 2019. Signature o£offrc,`er',Administering Oath (Notary Public) J. DE IONOH J. DE IONGH �I / g Coma Uelon 0 212050/l Notary Pulft - Ctlnomla i crop county Caron E dm Oc12g, 2019 r P-7 of P-17 23C-17 CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 ®!! ram® A notary public or other officercompleling this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California l Countyof QRANrF 1 On 07/25/19 before me, J. DE IONGH, NOTARY PUBLIC Date STEVE MENDOZA Here Insert Nome and Title of t e officer personally appeared Names) of Signer(s) who proved to me on the basis of satisfactory evidence to be the persons) whose name(:) is/are subscribed to the within instrument and acknowledged to me that he/she" executed the same in his/hedtheir authorized capacity(ies), and that by his/haditheir signature(:) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Agmthl' J. BE IONGH ComrnllllMn • 2128504 i HMttry PuM • Cldmornia i = Oraml County Comm. E m Oct 28. 20191 Place Notary Seal and/or Stamp Above 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand,and official seal. Signature OPTIONAL of Notary Public Completing this information can deter alteration of the document or fraudulent reattachment of this form to on unintended document. Description of Attached Document Title or Type of Document: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): O Partner— O Limited O General O Individual o Attorney in Fact D Trustee o Guardian or Conservator O Other: Signer is Representing: Number of Pages: Signer's Name: ❑ Corporate Officer — Title(s): O Partner— O Limited ❑ General O Individual O Attorney in Fact O Trustee O Guardian or Conservator ❑ Other: Signer is Representing: r rioga+.�r3rxarsee.�w*na�c�ac;�a 02018 National Notary Association 23C-18 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RA1TT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL KNOW ALL PRESENT that, R.J. NOBLE COMPANY , as BIDDER, and Western Surety Company , as SURETY, are held and firmly bound unto the CITY OF SANTA ANA, as AGENCY, in the penal sum of _ ten percent of amount hid Dollars ($ 10% ), which is ten percent (109/6) of the total amount bid by BIDDER to AGENCY for the above -stated project, for the payment of which sum, BIDDER and SURETY agree to be bound, jointly and severally, firmly by these presents. THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas BIDDER is about to submit a bid to AGENCY for the above -stated project, if said bid is rejected, or if said bid is accepted and a contract is awarded and entered into by BIDDER in the manner and time specified, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY. IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seal this 11th day of July , 2019. R. J. NOBLE COMPANY, 15505 E. Lincoln Avenue, Orange, Ca 92865 714.637-1550 BIDDER* SURETY* Westem Subscribed Signature: JLLKL.IAKY sworn to before me , 20_ 2020 Main Street, Suite Notary Public in and for the County of CA 92614 this day of State of * Provide BIDDER/ SURETY name, address, and telephone number and the name, title, address, and telephone number of authorized representative. P-8 of P-17 23C-19 CALIFORNIA ACKNOWLEDGMENT CIVIL CODE 51189 ee®iiiiei A notary public or other officer completing this certificate verifies onlythe identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California Countyof nRANrF On 07/12/19 before me, J. DE IONGH, NOTARY PUBLIC Date STEVE MENDOZA Here Insert Name and Title of the Officer personalty appeared Name(s) ofSigner(s) who proved to me on the basis of satisfactory evidence to be the persons) whose name(s) is/are subscribed to the within instrument and acknowledged to me that helshekhey, executed the same in his/her/Meir authorized capacity(ies), and that by his/hadtheir signalure(y on the instrument the personts), or the entity upon behalf of which the persons) acted, executed the instrument J. DE IONGH Commission 121255Ga G, .`.0, 0 Notary Public - Cahtornia i Orange County My Comm. Expires Oct 28, 2019 Place Notary Seat and or Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OPTIONAL of Notary Public Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document Document Date: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: O Corporate Officer — Title(s): O Partner — O Limited ❑ General O Individual 0 Attorney in Fact O Trustee 0 Guardian or Conservator O Other: Signer is Representing: Number of Pages: Signer's Name: ❑ Corporate Officer — Title(s): O Partner — 0 Limited ❑ General O Individual O Attorney in Fact D Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: r 02018 National Notary Association 23C-20 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California Orange Countyof 1 On JUL 1 1 2019 before me, Michele A. Fedoruk, Notary Public (insert name and title of the officer) personalty appeared James Scott Salandi, Attorney -in -Fact who proved to me on the basis of satisfactory evidence to be the person(e) whose name(s) isfaet subscribed to the within instrument and acknowledged to me that he/sue" executed the same in hislkeNJtrek authorized capac'dy(les), and that by his/kM#thek signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the i nstrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal. Notary P EA. FEDORUN Orange County L Commission 0 2225042 My Comm. Expires Apr 14, 2022 Signature (Seal) 23C-21 POWER OF ATTORNEY APPOINTING DMIVIDUAL ATTORNEY IN -FACT Yaow All My ByTbmFnNadti TIN WESTERN SURMCOIPANY, a SoothDdmta co pocalot, is ad* ownbcd ad mtistbg cospadlou hiftifpamdipd otdmin The Citydsiaa F"and Setedsmd Dam andtbtRdmabyvit edthai =madwdffidaa>s$dbmby robe, oasShde and Wpdd James Scott Silmdl, Leonard ZWft lty, David Jacobson, budtviduaIIy abvlm. CA, b huc and hwdtl Anwney(s}ln-thd with AM powr ad auhmity botchy codtrmd to aigt, sal and esmm for and at ire bebltbaoft, utdctwldnp ad otberobliptoty lamumema d dm0,rmbao - In Unlimited Amom2ds - mdm bind 6theebyufAy aodm the a® ermt IN If such hntrumerawcte dgoedbys delyauthetitd o9tec dthe capeadon ad aR the actz chid ACamy, punttm b auhority bafbY IPceq w hoebytcdLd and codamed. TESFowr ofMMW is made and madedpmstol to ad by mtbuity dth By-Loapaimed mtbe tewam hem; duly adopted, as h4wm by me beebotdm dth ea, on. In Wlbes Wbnaof. WESTERN SURETY COMPANY his caved these pnamta to be dgmd by W Vim Pteddczt and its aapuCe ad to be bado d8ad an this landiy of Jam 2015. WESTERN SURETY COMPANY ttAv 7 OhIll T. ftft Vice Resider Sate dSomb ratan CemtydMasbha I a On 1Na lah dry dJme. 2015. 6e0fe me paaatoily came Fad T. Bmdd, to = (mown, who, b ft by oe duty swro, did depmc and tap. @at he resides tithe CRY of Sioux I"Stitt dtlnmh DataN that he is the Vice: Reddutof WESTERN SURETY COMPANY daaibd In and which tuaaed the above tomdmmt; that h loom the and of dd corpadimS that the sal a>smd to the add ivstrumee Is nosh oocpawn veil; that it wan so amad paenme to athaly elm by the Bond ofDbeaus child mponalm and that he aipped his m, titacco ptoaua to 1ln otheity. ad admowiedow aaonctobe me act ad doed dadd owporloa blym®iimespfin ear------vweaaa w...... 9.AIR Febntary 12.2QJ1 t101tt11 Y a1R10 S. HidS.Noary Publie CEBTD7GT'8 1, L Nclsoc, AMUW Seaetal. Of WBSTBRN SURETY COMPANY do heft mtitY that the Fewa d Armory haeimbon sm forth Is am to him aodtumacWrythrth By -taw of oapuaka ptiaedmthe tevem bamtbtedR In tlam. mbs�onywheeotl hive heatre aohaaihed my mum adaRadme seal dim cam ewpwYionthla dayd_ nil l i illtg__. WESTERN SURETY COMPANY a®taso7-ova ` ` L Nelmq AwdmSeacety 23C-22 ADOPTED BY THE SHAREHOLDERS O]F VESTERN SURETY COMPANY 7bisPower ofAfturneYnmade sad amdmaymmimdtomdbymdw*offtMowing By.l"My-dopmdbyftshareholdem offt Cmpmy. . Sadon 7. AB bonds, policim tmdemtalmtge, Powem of Mtomay. or other oblioom of the omporffimn shill be aeculed in the ompamic ttme of the CampmW by the Paaideut. Secretary. and Am= Secretary, ltmnae, or any Vice Pre9dent or by such o>ber otioea m ffie Board of nhatam m9' m aim the PsaidaA my We Pnmdem% Secaday. ury Aa6sbff t Semet 7, cc the Tiencrer easy sppand Anumcp m Fed or sSaft Sabo dtst haver mid=ty to issue bcode, policies, or mWmtlkw in the rime of fe Catnpacry. 76e cmpmm sot is not nemmy far me validdy of my bmd%poheiM emdeatatiagN Powers of Attamey or otter ohbpptims of Poe ompma&m neakp b ofwWm&olHoamlihoompmteudmrybep®Oedbyficsd-*Im 23C-23 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RA1TT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL LIST OF SUB -CONTRACTORS Section 4100 et. seq. of the Public Contract Code requires listing of all subcontractors with the bid for all subcontract work exceeding the following amount: o Streets, highways including bridge projects: %% of the bid or $10,000, whichever is greater o Buildings, parks, or other projects: %0/a of the bid Section 1725.5 of the Public Contract Code requires all Subcontractors be registered with the State Department of Industrial Relations (DIR). BIDDER proposes to subcontract certain portions of the work to the firms listed below: Name AMERICAN PAVEMENT SYSTEMS License #/Exp. 943792 DIR Reg. #/Exp. 1000000207 Location 1012 I ITH ST. MODESTO, CA 95354 Phone 209.522-2277 Type Of Work ARAM Amount S 112,560.00 Name CLSURVEY License #/Exp. LS 8231 NO EXP DIR Reg. #/Exp. 1000007166 06/30/20 License # 8231 Location 1269 POhIONA RD STE. 108, CORONA, CA 92882 Phone 909484-4200 Type Of Work SURVEY Amount S 6,60U.00 Name GWINCOCONST License #/Exp. 769266 DIR Reg.#/Exp. l0000loxss License # 769266 Location 2171 S. GROVE AVE STE F. ONTARIO. CA 91761 Phone 909-930-1693 Type Of Work PIPE Amount S 31,025.00 X Signature o id r STEVE MENDOZA, SECRETARY Name CALIFORNIA PROFESSIONAL ENG License #/Exp. 793907 04/30/21 DIR Reg.#/Exp. 1000001980 06/30/20 Location 929 OTrER➢EIN AVE UNIT E. LA PUENTE. CA 91748 Phone 626-810-1338 Type Of Work Amount S LOOPS S6,300.00 Name EBS GENERAL License #/Exp. 720016 DIR Reg.#/Exp. 1000005295 6/30/20 License # 720016 Location 1345 QUARRY ST. STE 101, CORONA, CA 92879 Phone 9251-279-6869 Type Of Work CONCRETE Amount S 97.330.00 Name MD RUBBERIZED CRACKFILLING License #/Exp. 986686 DIR Reg.#/Exp. 1000006438 06/30/20 License # 986686 Location P.O. BOX 15504. SANTA ANA. CA 92735 Phone 714-352-7002 Type Of Work CRACK SEAL. Amount $ 15,750.00 P-9 ofP-17 23C-24 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL LIST OF SUB -CONTRACTORS Section 4100 et. seq. of the Public Contract Code requires listing of all subcontractors with the bid for all subcontract work exceeding the following amount: o Streets, highways including bridge projects: h% of the bid or $10,000, whichever is greater o Buildings, parks, or other projects: %%of the bid Section 1725.5 of the Public Contract Code requires all Subcontractors be registered with the State Department of Industrial Relations (DIR). BIDDER proposes to subcontract certain portions of the work to the firms listed below: Name SUPERIOR PAVEMENT License #/Exp. 776306 08/31/21 DIR Reg. #/Exp. 1000001476 Location 5312 CYPRESS ST. CYPRESS, CA 90630 Phone 714-955-9100 Type Of Work STRIPING Amount $ 26,334.00 Name License #/Exp. DIR Reg. #/Exp. License # Location Name License #/Exp. DIR Reg. #/Exp. Location Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # Location Phone Phone Type Of Work Type Of Work Amount $ Amount $ Name License #/Exp. DIR Reg.#/Exp. License # Location Phone Type Of Work Amount $ X Avk�= Signature o id r STEVE MENDOZA. SECRETARY Name License #/Exp. DIR Reg. #/Exp. License # _ Location _ Phone Type Of Work Amount $ P-9 of P-17 23C-25 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAM TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER has performed similar work within the past three years. I CITY OF TUSTIN, 300 CENTENNIAL WAY Name and Address of Owner. EDDY JAN 714-573-3157 Name and Telephone Number of person familiar with project. $1,629,018.86 PARK AVE STREET REHAB Contract Amount Type of Work 2, CITY OF ANAHEIM, 200 S. ANAHEIM BLVD STE 276, ANAHEIM, CA Name and Address of owner. BOB LUCIANO 714-765-5176 10/2018 Date Completed Name and Telephone Number of person familiar with project. $530,433.55 STREET IMPROVEMENTS 0712018 Contract Amount Type of Work Date Completed 3, CITY OF SAN JUAN CAPISTRANO, 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CA Name and Address of owner. PAUL MESHKIN 949-443-6350 Name and Telephone Number of person familiar with project. S2,186,492.92 STREET IMPROVEMENTS 05/2018 Contract Amount Type of Work Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. PATRIOT RISK & INSURANCE SERVICES 2415 CAMPUS DR. SUITE 200, IRVINE, CA 92612 SCOTT SALANDI 949-486-7917 (BONDS) LAURIE SYLVESTER 949-486-7900 (INSURANCE) P-10 ofP-17 23C-26 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAM TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL ADDITIONAL REFERENCES The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER or Subcontractor has performed similar work in the past five years. I CITY OF TUSTIN, 300 CENTENNIAL WAY, TUSTIN, CA 92780 Name and Address of Owner. BENNY TENKEAN 714-573-3161 Name and Telephone Number of person familiar with project. S22.6 MILLION ROADWAY RECONSTRUCTION 04/2014 Contract Amount Type of Work Date Completed Z, CITY OF RIVERSIDE, 3900 MAIN STREET, RIVERSIDE, CA 92522 Name and Address of owner. STEVE HOWARD 951-826-5567 Name and Telephone Number of person familiar with project. $5,872,373.05 STREET WIDENING 06/2017 Contract Amount Type of Work Date Completed 3. CITY OF DANA POINT, 33282 GOLDEN LANTERN, DANA POINT, CA 92629 Name and Address of owner. MATT SINACORI 949-248-3554 Name and Telephone Number of person familiar with project. $1,848,846.00 Contract Amount ROADWAY RESURFACING 06/2016 Type of Work Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. PATRIOT RISK & INSURANCE SERVICES 2415 CAMPUS DR SUITE 200, IRVINE, CA 92612 SCOTT SALANDI 949-486-7917 (BONDS) LAURIE SYLVESTER, 949-486-7900 (INSURANCE) P-11 ofP-17 23C-27 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAM TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Cade Section 7106) In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106 the BIDDER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the BIDDER or any other BIDDER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note: The above Non -collusion Affidavit is part of the Proposal. BIDDERS ate cautioned that making a false certification may subject the certifier to criminal prosecution. Signed x STEVE M9NDOZA, SECRETARY State of California ' County of ORANGE Subscribed and sworn to (or affirmed) before me on this 25TH day of JULY , 2019, by STEVE ME•NDOZA proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me J. DE Notary Public Seal J. OE tONOH C CmmMUlon 0 2128504 L i . Noxy Fmic - Calfrornla 2 9 Cranp County ? M Comm Expires Oct2a.20t,; P-12 of P-17 23C-28 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL NON-DISCRIMINATION CERTIFICATE The undersigned contractor or corporate officer, during the performance of this contract, certifies as follows: The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. The Contractor shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. P-13 ofP-17 23C-29 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the Contractor may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any contractor of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. Signed: X Title: STEVE MENDOZA, SECRETARY Firm: R.J. NOBLE COMPANY Date: 07/25/19 P-14 of P-17 23C-30 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL STATEMENT REGARDING APPRENTICESHIP REQUIREMENTS The undersigned BIDDER is familiar with the requirements of Section 1777.5 of the State Labor Code regarding employment of apprentices, and understands that contractors on contracts exceeding $30,000 or 20 working days shall: 1. Apply to the joint apprenticeship committee administering the apprenticeship standards of the craft or trade in the area of the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. 2. Employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the apprenticeship standards. 3. Contribute to the fund or funds in each craft or trade in which he/she employs journeymen or apprentices on the public work, in the same amount or upon the same basis and in the same manner as the other contractors, except contractors not signatory to the trust agreement shall pay a like amount to the California Apprenticeship Council. Signed: x Title: STEVE M NDOZA, SECRETARY Firm: R.J. NOBLE COMPANY Date: 07/25/19 P-15 of P-17 23C-31 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL STATEMENT REGARDING "ANTI -KICKBACK" REQUIREMENTS The undersigned is submitting this proposal for performing by contract the work required by these bid documents, agrees to comply with the Copeland "Anti -Kickback" Act (18 USC 74) as supplemented in the Department of Labor regulations (29 CFR, Part 3). This act provides that each contractor or subcontractor shall be prohibited from inducing, by any means, any person employed in the construction or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Signed: X Title: STEVE M NDOZA, SECRETARY Firm: R.1.NOBLE COMPANY Date: 07/25/2019 P-16 of P-17 23C-32 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-6941: ALTON REHABILITATION FROM RAITT TO BRISTOL PROJECT NO.: 19-6617: ALTON DRAINAGE REPAIR AT D-03 CHANNEL PUBLIC CONTRACT CODE SECTION_10162 QUESTIONNAIRE In conformance with Public Contract Code Section 10162, the BIDDER shall complete, under penalty of perjury, the following questionnaire: Has the BIDDER, any officer of the BIDDER, or any employee of the BIDDER who has a proprietary interest in the BIDDER, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation? Yes No xxx If the answer is yes, explain the circumstances in the following space. P-17 of P-17 23C-33 23C-34 Exhibit 3 CITY OF SANTA ANA CONSTRUCTION CONTRACT PROJECT 19-6941 & 19-6617 ALTON REHABILITATION FROM RAITT TO BRISTOL AND ALTON DRAINAGE REPAIR AT D-03 CHANNEL PROJECTS This CONSTRUCTION CONTRACT is made and entered into this 20'h day of Auguest, 2019 by and between the City of Santa Ana, California, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "CITY"), and R:J. Noble Company (hereinafter "CONTRACTOR"). WITNESSETH: The CITY and the CONTRACTOR, for the consideration hereinafter named, mutually agree as follows: 1. CONTRACTOR agrees to perform all the work and furnish all the materials at its own cost and expense necessary to construct and complete in a good and workmanlike manner and to the satisfaction of the City Engineer of the CITY, the Alton Rehabilitation from Raiff to Bristol and Alton Drainage Rpair at D-03 Channel Project (hereinafter referred to as the "WORK OF IMPROVEMENT") identified in and in accordance with the Contract Documents prepared by the City's Public Works Agency and approved by the City Council. 2. The complete Construction Contract consists of the "Contract Documents" as defined by the Standard Specifications for Public Works Construction and which include the following: • Notice Inviting Bids • Information to Bidders • Bid Proposal • Bid Bond • Contract Form • Contract Bonds • General Provisions • Special Provisions • Technical Provisions and Project Plans • Community Workforce Agreement • Appendices In case of conflict between the Contract Documents, the precedence of documents shall be as established in the Standard Specifications for Public Works Construction. 3. CITY agrees to pay and CONTRACTOR agrees to accept in full payment to complete the WORK OF IMPROVEMENT the sum total amount not to exceed Eight Hundred Fourty-three Thousand Three Hundred One Dollars and Twenty-five Cents ($843,301.25), as set forth and identified in the BID PROPOSAL, which is attached hereto and incorporated herein as Exhibit "A." rev. 09/01/2017 23C-35 Page I of The BID PROPOSAL contains a schedule of unit price(s) or lump sum(s) based on approximate quantities only, and the City does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work as may be deemed necessary or advisable. 4. CONTRACTOR agrees to complete the WORK OF IMPROVEMENT within the time specified in the Time for Completion of Improvements section of the BID PROPOSAL (Exhibit "A") including commencing construction within the timeframe therein specified after issuance of a Notice to Proceed. 5. The CONTRACTOR will pay, and will require all subcontractors to pay, all employees on the WORK OF IMPROVEMENT a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations for this work in accordance with applicable State and Federal law. 6. If applicable, the CONTRACTOR shall adhere to the CITY'S Community Workforce Agreement (CWA), a pre -hue collective bargaining agreement, which establishes the labor relations policies and procedures for CONTRACTOR to follow in the crafts persons employed to complete the WORK OF IMPROVEMENT as more fully described in the CWA. The CWA may be found on the City's website at: htti)://www.santa-ana.org/pwa/documents/CWA.pdf 7. CONTRACTOR shall, after award of this Contract, furnish two bonds to be approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance _ of the work (Performance Bond), and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished (Payment Bond). This Contract shall not become effective until such bonds are supplied to and approved by the CITY. 8. CONTRACTOR shall, prior to the release of the performance and payment bonds or the retention payment, furnish a warranty performance and payment bond (Warranty Bond). Said Warranty Bond shall also be required as a condition of project acceptance. For projects up to Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of Ten Thousand Dollars ($10,000) or Twenty Percent (20%) of the final contract price. For projects above Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of One Hundred Thousand Dollars ($100,000) or Ten Percent (10%) of the final contract price. 9. CONTRACTOR shall, after award of this Contract, furnish Certificates of Liability Insurance and Worker's Compensation Insurance as outlined in the General Provisions, to be approved by the CITY. /% 23C-36 Page 2 of IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract on the day and year first above written. ATTEST: DAISY GOMEZ CLERK OF THE COUNCIL APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: 'M,. -f'L JOIN FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL: FUAD SWEISS, PE, PLS Executive Director Public Works Agency CITY OF SANTA ANA KRISTINE RIDGE City Manager CONTRACTOR: R.J. Noble Company NAME: TITLE: SECRETARY 23C-37 Page 3 of 3 23C-38 Exhibit 4 COST ANALYSIS CONSTRUCTION OF THE PROJECT NO. 19-6941 & 19-6617: ALTON REHABILITATION FROM RAITT TO BRISTOL AND D-03 CHANNEL IMPROVEMENTS AT ALTON AVENUE Construction Contract $ -=843,301 Contract Administration $ 40,789 Inspection and Testing $ 65,000 Contingencies $ 84,270 TOTAL ESTIMATED CONSTRUCTION COSTS $ 1,033,360 23C-39 23C-40 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE COMMUNITY BENEFIT AGREEMENTS WITH NATI'S HOUSE, SANTA ANA XTREME, AND WISEPLACE FOR FISCAL YEAR 2019-2020 FOR A TOTAL AMOUNT OF $110,000 (STRATEGIC PLAN NOS. 1,6; 2,2; 5,4;) CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1n Reading ❑ Ordinance on 2°d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO EM_�FILE NUMBER n 1 RECOMMENDED ACTION Authorize the City Manager and the Clerk of the Council to execute agreements with the following non-profit organizations to provide community benefit programs during the period of August 20, 2019 through June 30, 2020 in a total amount not to exceed $110,000, subject to non -substantive changes approved by the City Manager and City Attorney: Nati's House (dba, Neutral Ground) to provide after school programming and mentoring to youth focusing on violence prevention, gang intervention, restorative practices, mentoring, and drug and alcohol prevention, in the amount of $50,000; Santa Ana Xtreme Softball to provide youth softball team that develops female athletes as future civic leaders through self-discipline, hard -work and important life lessons in the amount of $30,000; c. WISEPIace to provide programs that help transition unaccompanied homeless women back to self-sufficiency and reunite them with their families in the amount of $30,000. DISCUSSION On July 2, 2019 City Council approved the adoption of the City Budget ordinance to include General Fund modifications as directed by Council on June 18, 2019 that include the following: A. One-time appropriation of $110,000 to the Community Development Block Grant (CDBG) budget for three nonprofit organizations that did not receive CDBG funding for FY 2019-2020 (Nati's House, Santa Ana Xtreme and WISEPIace). 25A-1 Community Benefit Agreements with Nati's House, Santa Ana Xtreme and WISEPIace August 20, 2019 Page 2 Nati's House, Santa Ana Xtreme and WISEPIace had applied for funding through the Community Development Block Grant (CDBG) program for FY 19 — 20. However, there was insufficient CDBG program funding to award funds to these three additional organizations. As such, City Council approved a one-time appropriation on July 2, 2019 to fund these three additional programs. Following this appropriation, staff have prepared community benefit agreements with Nati's House, Santa Ana Xtreme and WISEPIace for review and approval by City Council (Exhibit 1, 2, and 3). The federal regulations for the CDBG program will not apply to these three programs because the funding is not going to be from the CDBG program. However, staff will administer, oversee and monitor these three programs using the same policies and procedures as the other CDBG-funded programs approved by City Council on June 18, 2019. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet: • Goal # 1 - Community Safety, Objective #6 (Enhance Public Safety integration, communications and community outreach), Strategy F (The Santa Ana Police Department will collaborate with the Orange County Probation Department, Orange County Healthcare Agency caseworkers, business community, and associated non-profit organizations to assist in re-entry of recently released offenders into the community); Goal # 2 - Youth, Education, Recreation, Objective #2 (Expand youth programing), Strategy A (Focus resources on quality youth engagement, enrichment and education programs through community center, libraries and after -school programs during out -of - school hours), and Strategy B (Expand the youth sports program so that youth recreational opportunities are established year-round); Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy D (Implement new Neighborhood Improvement Initiatives focusing on residential areas that have been adversely affected by disinvestment and decline. Program and services from a variety of resources will be utilized to achieve positive and sustainable improvements), and Objective #6 (Focus projects and programs on improving the health and wellness of all residents), Strategy C (Integrate a variety of health and wellness programs into existing programming at each of the city's community/recreation centers). FISCAL IMPACT Funds are available in the Economic Development, Payment to Sub -agent account (no. 01118810-69135) for expenditure in FY 19-20 as follows: 25A-2 Community Benefit Agreements with Nati's House, Santa Ana Xtreme and WISEPIace August 20, 2019 Page 3 Fiscal Accounting Unit Fund Description Accounting Unit, Account Amount Year — Account # Description FY19-20 01118810-69135 General Fund Economic Development, $110,000 Payment to Sub -agent APPROVED AS TO FUNDS AND ACCOUNTS: Steven A. Mendoza Kathryn Dolkns, CPA t0 Executive Director Executive Director Community Development Agency Finance and Management Services Agency Exhibits: 1. Community Benefit Agreement with Nati's House 2. Community Benefit Agreement with Santa Ana Xtreme 3. Community Benefit Agreement with WISEPIace 25A-3 25A-4 EXHIBIT 1 CITY OF SANTA ANA COMMUNITY BENEFIT AGREEMENT WITH NATI'S HOUSE (DBA NEUTRAL GROUND) 1. PARTIES AND DATE This Community Benefit Agreement ("Agreement") is entered into on August 20, 2019, by and between 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") and Nati's House (dba, Neutral Ground), a California non-profit organization ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in providing after school programming and mentoring to youth focusing on violence prevention, gang intervention, restorative practices, mentoring, and drug and alcohol prevention. Recipient also provides street outreach and programming for parents and community ("Community Benefit"). The parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding for such program. 2.2 Public Purpose. The City believes there is a public purpose in supporting the Community Benefit because it will assist City residents with providing a healthy activity and training in an atmosphere of community participation. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with Fifty -Thousand Dollars ($50,000.00) because the City has determined that there is a public purpose to be served in supporting the Community Benefit. Such funds shall be expended by Subrecipient on or before June 30, 2020. The funds shall be disbursed by City to Subrecipient on a quarterly basis subject to and upon receipt and approval of a complete quarterly activity report from Subrecipient, with the final payment subject to the satisfaction of the condition precedent of submittal of complete reporting information due on or before July 15 of the applicable funding year, as hereinafter more fully set forth. SUBRECIPIENT shall be obligated to perform such duties as would normally extend beyond the term, including, but not limited to, obligations with respect to indemnification, audits, reporting, data retention/reporting, and accounting. Failure to provide any of the required documentation and reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement, and set forth in greater detail in Exhibit A ("Scope of Services") attached hereto and incorporated herein by reference. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 25A-5 EXHIBIT 1 3.2 Term; Termination of Agreement. This Agreement shall take effect on August 20, 2019 and remain in effect through June 30, 2020. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Insurance. Prior to undertaking performance of work under this Agreement, Recipient shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Recipient shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Recipient's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $1,000,000 in the aggregate. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Recipient, if Recipient has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Recipient agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Recipient is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Recipient pursuant to this section: (i) Recipient shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. 2 25A-6 ONM Mimi (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. f. If Recipient fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Recipient's right to be paid for its time and materials expended prior to notification of termination. Recipient waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient' own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient' obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Records. Recipient shall keep records and invoices in connection with the work to be performed under this Agreement. Recipient shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Recipient under this Agreement. All such records and invoices shall be clearly identifiable. Recipient shall allow a representative of the City to examine, 3 25A-7 EXHIBIT 1 audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Recipient shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Recipient under this Agreement. 3.7 Conflict Of Interest Clause. Recipient covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 3.8 Independent Contractor. Recipient shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Recipient performs the services which are the subject matter of this Agreement; however, the services to be provided by Recipient shall be provided in a manner consistent with all applicable standards and regulations governing such services. Recipient shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 3.9 Assignment. Inasmuch as this Agreement is intended to secure the specialized services of Recipient, Recipient may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Recipients retained by City. 3.10 Exclusivity and Amendment. This Agreement represents the. complete and exclusive statement between the City and Recipient, 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 Recipient. 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 Recipient or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 3.11 Discrimination. Recipient shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Recipient affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 3.12 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 4 25A-8 4040111-.1161 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA Daisy Gomez Kristine Ridge Clerk of the Council City Manager APPROVED AS TO FORM: "RECIPIENT" Nati's House dba Neutral Ground SONIAR. CARVALHO City A7�W/L- Ryan(qddge By: ame: ahvi ad Alvarado Assis t Cit Attorney itle: Executive Director RECOMMENDED FOR APPROVAL Steven A. Mendoza Executive Director Community Development Agency 25A-9 EXHIBIT 1 City of Santa Ana CDBG Scope of Work Program Year 2019-20 (July 1, 2019 - June 30, 2020) Name of Organization Nati's House (dba Neutral Ground) Name of Funded Program Neutral Ground . Annual Accomplishment Goal be served Schedule of Performance Unduplicated (estimated) Participants Quarter 1: JUL 1 - SEP 30 18 Quarter 2: OCT 1 - DEC 31 19 Quarter 3: JAN 1 - MAR 31 19 Quarter 4: APR 1 - JUN 30 19 75 Program and Funding Description the 12-month contract period. 100%1 751 Low Income Participants 1 100% Estimated Invoicing $ 12,500.00 $ 12,500.00 $ 12,500.00 $ 12,500.00 $ 50,000.00 I tirouna provides gang prevention and intervention, and positive youth mming and mentoring through a multi -prong approach. Through City Funds, I Ground will provide a variety of services and programming after -school to students. In addition, Neutral Ground has highly -skilled Community -ntion Workers that provide street outreach and first responder services to the ter -school services are offered 6 days a week After school and intervention services rered 7 days a week with most students accessing services at least weekly. ogramming, services, and interventions are offered in multiple, tiered ways in order most directly affect the student. Group programming is offered after -school in the rms of group mentoring, restorative justice circles, community service, and special esentations or events. One on one case management, violence intervention, gang ;engagement, and mentoring is consistently offered, and usually accessed at least weekly. Street outreach and home visits are also conducted as needed. Neutral ound has seen the impact that consistent and quality after -school case management s in the success of a project. Accordingly, Neutral Ground interventionists are tined heavily in the case management process because it is important to establish a Iture of accountability and performance. Staff assesses students based on their level need for intensive after -school case management, and provide case management rvices as appropriate. Each student served will have their own individual case file th relevant information, and every contact with that student will be entered into se notes on a consistent basis. Staff will work with students after school to identify tential barriers to their success at school and outside of school. Upon identification any barriers, services and/or referrals to community partners will be made in order mitigate the barriers. Neutral Ground staff will offer three different types of EXHIBIT 1 .enced-based mentoring practices. This will provide different levels of engagement intensity that will accommodate each student's unique emotional and social Is. The three -different evidence based mentoring practices are as follows: 1. Staff offer one-on-one mentoring after school to youth on a daily basis. 2. Group storing opportunities through circles and breakout groups will encourage tents' positive behavioral growth through both an adult staff facilitator as well as high peer -to -peer interactions. 3. Service -based mentoring will be provided high other venues, such as after school community service projects, or post- indary education linkages. idividual case management and mentoring will be student -led with an adult. This will •eate a dynamic that will encourage students to disclose information and seek out the eutral Ground staff member with whom they have the most connection. Neutral round staff will meet after school, at least weekly, to discuss students' progress in rder to provide support to each other as well as to provide organizational knowledge could another staff member need to step in, support and help serve the student. All :aff members are trained in restorative practice circles, including Victim -Offender the the Office of Juvenile Justice and EXHIBIT 1 FISCAL YEAR 2019-2020 PROGRAM BUDGET Organization Name Nati's House dba Neutral Ground Program Name Neutral Ground EXPENDITURES Enter budget categories and projected expenditures for the proposed program: Category Expenditures Funded By Santa Ana CDBG Expenditures Funded By Other Sources Program Budget Total Organization Budget Administrative Staff Salaries no Benefits $6,032 $6,032 $ 6,032 Program Staff Salaries & Benefits $31,500 $31,500 $ 31,500 Direct Program Supplies $7,423 $7,423 $ 7,423 Mileage for Home Visits $500 $500 $ 500 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 TOTAL Direct Costs $45,455 $0 $45,455 $45,455 Indirect Costs 10% $4,546 $4,546 TOTAL -BUDGET $50,001 $0 $50,001 $45,455 Indirect cost rate: 10% Non -Federal entity without federaly recognized negotiated indirect cost rate, will charge a de minimis rate of 10% of modified total direct costs. PROGRAM RESOURCES LIST ALL OTHER PROGRAM RESOURCES FOR 2019-2020 Funding Source Total n I otal listed above. FUNDING SOURCE I AMOUNT Santa Ana CDBG 1 $ 50.000 TOT EXHIBIT 1 2019-2020 CDBG BUDGET LINE ITEMS ADMINISTRATIVE STAFF Position Title Annual Salary & Benefits CDBG Funds Requested Description President $ 60,116 $ 6,032 .10%Admin PROGRAM STAFF Position Title Annual Salary & Benefits CDBG Funds Requested Description Program Director $ 60,116 $ 15,000 .23% FTE Ow $ 40,000 $ 16,500 .40% FTE CONTRACTUAL/PROFESSIONAL SERVICES Type of Service Contract Amount CDBG Funds Requested Description OTHER LINE ITEMS Line Item Program Amount CDBG Funds Requested Description Direct Program Supplies $ 12,000 $ 7,423 Supplies tied directly to participant programining Mileage for Home Visits $ 500 $ 500 Mileage PAP"',,�I F 25A-14 1:►:40611:1166 CITY OF SANTA ANA COMMUNITY BENEFIT AGREEMENT WITH SANTA ANA XTREME SOFTBALL 1. PARTIES AND DATE This Community Benefit Agreement ("Agreement") is entered into on August 20, 2019, by and between 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") and Santa Ana Xtreme Softball, a California non-profit organization ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in operating a youth softball team that develops female athletes as future civic leaders through self-discipline, hard -work and important life lessons ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding for such program. 2.2 Public Purpose. The City believes there is a public purpose in supporting the Community Benefit because it will assist City residents with providing a healthy activity and training in an atmosphere of community participation. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with Thirty -Thousand Dollars ($30,000.00) because the City has determined that there is a public purpose to be served in supporting the Community Benefit. Such funds shall be expended by Subrecipient on or before June 30, 2020. The funds shall be disbursed by City to Subrecipient on a quarterly basis subject to and upon receipt and approval of a complete quarterly activity report from Subrecipient, with the final payment subject to the satisfaction of the condition precedent of submittal of complete reporting information due on or before July 15 of the applicable funding year, as hereinafter more fully set forth. SUBRECIPIENT shall be obligated to perform such duties as would normally extend beyond the term, including, but not limited to, obligations with respect to indemnification, audits, reporting, data retention/reporting, and accounting. Failure to provide any of the required documentation and reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement, and set forth in greater detail in Exhibit A ("Scope of Services") attached hereto and incorporated herein by reference. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 25A-15 EXHIBIT 2 3.2 Term; Termination of Agreement. This Agreement shall take effect on August 20, 2019 and remain in effect through June 30, 2020. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Insurance. Prior to undertaking performance of work under this Agreement, Recipient shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Recipient shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Recipient's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $1,000,000 in the aggregate. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Recipient, if Recipient has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Recipient agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Recipient is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Recipient pursuant to this section: (i) Recipient shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be famished to the City upon execution of this Agreement and shall be approved by the City. 2 25A-16 EXHIBIT 2 (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. f. If Recipient fails or refuses to produce or maintain the insurance required by this section or fails or refuses to famish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Recipient's right to be paid for its time and materials expended prior to notification of termination. Recipient waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient' own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient' obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Records. Recipient shall keep records and invoices in connection with the work to be performed under this Agreement. Recipient shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Recipient under this Agreement. All such records and invoices shall be clearly identifiable. Recipient shall allow a representative of the City to examine, 3 25A-17 EXHIBIT 2 audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Recipient shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Recipient under this Agreement. 3.7 Conflict Of Interest Clause. Recipient covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 3.8 Independent Contractor. Recipient shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Recipient performs the services which are the subject matter of this Agreement; however, the services to be provided by Recipient shall be provided in a manner consistent with all applicable standards and regulations governing such services. Recipient shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 3.9 Assignment. Inasmuch as this Agreement is intended to secure the specialized services of Recipient, Recipient may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Recipients retained by City. . 3.10 Exclusivity and Amendment. This Agreement represents the complete and exclusive statement between the City and Recipient, and supersedes any and all other agreements, oral or written, between the parties. hi 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 Recipient. 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 Recipient or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 3.11 Discrimination. Recipient shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Recipient affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 3.12 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 2 25A-18 EXHIBIT 2 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. 3.13 Professional Licenses. Recipient shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Recipient shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 3.14 Entire Contmct/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.15 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attomp." 0 Attorney FOR APPROVAL Steven A. Mendoza Executive Director Community Development Agency CITY OF SANTA ANA Kristine Ridge City Manager "RECIPIENT' Santa Ana Xtreme I)i ie: Maquivi De La Rosa Title: Executive Director 25A-19 EXHIBIT 2 City of Santa Ana Scope of Work Program Year 2019-20 (July 1, 2019 - June 30, 2020) Name of Organization Santa Ana Xtreme Softball Name of Funded Program Santa Ana Xtreme Fastpitch Annual Accomplishment Goal Unduplicated Participants antici ated to be served duringthe 12-month contract period. 45 TOTAL 45 Santa Ana Participants 100%1 1 451 Low Income Participants 100% Schedule of Performance (estimated) Quarter 1: JUL 1 - SEP 30 Quarter 2: OCT 1 - DEC 31 Quarter 3: JAN 1 - MAR 31 Quarter4: APR 1 -JUN 30 Unduplicated Estimated Participants Invoicing 11 $ 7,500.00 11 $ 7,500.00 12 $ 7,500.00 11 $ 7,500.00 45 $ 30,000.00 We provide a safe structured environment that teaches young female athletes how to play the game of softball at an elite level in preparation for High School and College participation as a student athlete. This is done be providing group and one-on-one lessons for each players various needs. In addition, to providing homework assistance, time management skills, preparation for various college entry requirements (SAT, ACT, etc.), financial aid applications, college entry applications, early college acceptance and finding colleges that will provide financial scholarships to each players unique financial situation. If additional finances can be secured for our program, we would provide tutoring, test taking preparation skills, screen for test anxiety and additional college entry test preparation. One of the organizations primary goals is to help these female youths develop their interpersonal and communication skills along with self-discipline and teamwork. In hopes they will one day become future civil leaders that will give back to their community. The organization also takes these female athletes to college recruiting events throughout the United States to college recruiting events and functions to help increase their chances of being accepted to a college of their choice. The frequency of our programs services are 3-4 times weekly. Our target population is female youths in the city of Sant, Ana. It is primarily done in a group setting, but various times throughout the year it will be done on a one-on-one basis when extra help is needed or if that will be the most productive for the individual in need of additional help. 2H'TLO EXHIBIT 2 Organization Name FISCAL YEAR 2019-2020 PROGRAM BUDGET Xtreme Softball Program Name Santa Ana Xtreme Fastpitch EXPENDITURES Enter budget categories and projected expenditures for the proposed program: Slaries no benefits Category Expenditures Funded By Santa Ana City Funds Expenditures Funded By Other Sources Program Budget Total Organization Budget Administrative Staff Salaries $8,273 $ 6,000 $14,273 $ 15,000 Program Staff Salaries & Benefits $15,000 $ 10,000 $25,000 $ 25,000 Contractual/Professional Services $1,000 $ 400 $1,400 $ 1,400 Field Fees $2,000 $ 2,000 $4,000 $ 6,000 Travel (4 coachs) $0 $0 Equipment $0 $0 Tournament & Friendly Games $0 $0 Business License, Insurance $1,000 $1,000 Office Supplies $0 $0 Uniforms $0 $0 TOTAL Direct Costs $27,273 $18,400 $45,673 $47,400 Indirect Costs 10% $2,727 $2,727 TOTAL BUDGET $30,000 $18,400 $48,400 $47,400 * Indirect cost rate: 10% Non -Federal entity without federaly recognized negotiated indirect cost rate, will charge a de minimis rate of 10% of modified total direct costs. PROGRAM RESOURCES LIST ALL OTHER PROGRAM RESOURCES FOR 2019-2020 Funding Source Total must equal Program Budget Total listed above. FUNDING SOURCE AMOUNT Santa Ana City Funds TOTAL $ r� EXHIBIT 2 2019-2020 CITY FUNDS BUDGET LINE ITEMS ADMINISTRATIVE STAFF Position Title Annual Salary & Benefits City Funds Requested Description President $ 3,000 $ 4,500 Oversee organization & hold quarterly meetings Vice President/Treasurer $ 3,000 $ 4,500 Assist President with duties & maintain organization finances. PROGRAM STAFF Position Title Annual Salary & Benefits City Funds Requested Description Events Coordinator $ 1,300 $ 2,000 Coach the team on fundamentals of softball Operations Administrator $ 2,000 $ 3,000 Field and Site Supervisor $ 1,300 $ 2,000 Pitching Instructor/Coach $ 1,600 $ 2,500 Hitting/Strength & Conditioning Instructor $ 750 $ 1,000 Hitting & Defensive Instructor $ 2,300 $ 3,500 ,Pitching/Hitting &Defensive,lnst $ 750 $ 1,000 CONTRACTUAL/PROFESSIONAL SERVICES Type of Service Contract Amount CDBG Funds I Requested I Description Defensive Instructor $ 700 $ 700 lInstructor to provide clinic on fielding in softball Conditioning Instructor $ 700 1 $ 700 1 Instructor to provide clinic on conditioning OTHER LINE ITEMS Line Item Program Amount CDBG Funds Requested Description Field Fees $ 6,000 $ 2,273 Fields used to hold practice and play games Travel (4 coachs) $ 2,000 Out of area travel (mileage or airfare, hotel) Equipment $ 2,000 Bases for field, softballs, equipment to upkeep fields Tournament & Friendly Games $ 18,000 Competitive Games played Business License, Insurance $ $ 1,000 10perate in the City & provide Insurance to all players Office Supplies I $ 500.00 1 IPaper, copier ink, Postage, envelopes, etc Uniforms 1 $ 10,000 1 1 Practice & tournament uniforms to play in games 2SIA(T 212 EXHIBIT 3 CITY OF SANTA ANA COMMUNITY BENEFIT AGREEMENT WITH WISEPLACE 1. PARTIES AND DATE This Community Benefit Agreement ("Agreement") is entered into on August 20, 2019, by and between 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") and WISEPlace, a California non- profit organization ("Recipient). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist in operating with programs that help transition unaccompanied homeless women back to self- sufficiency and reunite them with their families ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding for such program. 2.2 Public Purpose. The City believes there is a public purpose in supporting the Community Benefit because it will assist City residents with providing a healthy activity and training in an atmosphere of community participation. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with Thirty -Thousand Dollars ($30,000.00), as detailed in Exhibit B ("Program Budget") attached hereto and incorporated herein by reference, because the City has determined that there is a public purpose to be served in supporting the Community Benefit. Such funds shall be expended by Recipient on or before June 30, 2020. The funds shall be disbursed by City to Recipient on a quarterly basis subject to and upon receipt and approval of a complete quarterly activity report from Recipient, with the final payment subject to the satisfaction of the condition precedent of submittal of complete reporting information due on or before July 15 of the applicable funding year, as hereinafter more fully set forth. Recipient shall be obligated to perform such duties as would normally extend beyond the term, including, but not limited to, obligations with respect to indemnification, audits, reporting, data retention/reporting, and accounting. Failure to provide any of the required documentation and reporting will cause City to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to Recipient, until such documentation and reporting has been received and approved by City. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement, and set forth in greater detail in Exhibit A ("Scope of Services") attached hereto and incorporated herein by reference. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 25A-23 EXHIBIT 3 3.2 Term; Termination of Agreement. This Agreement shall take effect on August 20, 2019, and remain in effect through June 30, 2020. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Insurance. Prior to undertaking performance of work under this Agreement, Recipient shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Recipient shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Recipient's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $1,000,000 in the aggregate. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Recipient, if Recipient has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Recipient agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Recipient is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Recipient pursuant to this section: (i) Recipient shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. OA 25A-24 IOVA: 11:311991 (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. f. If Recipient fails or refuses to produce or maintain the insurance required by this section or fails or refuses to famish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Recipient's right to be paid for its time and materials expended prior to notification of termination. Recipient waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient' own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient' obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Records. Recipient shall keep records and invoices in connection with the work to be performed under this Agreement. Recipient shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Recipient under this Agreement. All such records and invoices shall be clearly identifiable. Recipient shall allow a representative of the City to examine, Cl 25A-25 EXHIBIT 3 audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Recipient shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Recipient under this Agreement. 3.7 Conflict Of Interest Clause. Recipient covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 3.8 Independent Contractor. Recipient shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Recipient performs the services which are the subject matter of this Agreement; however, the services to be provided by Recipient shall be provided in a manner consistent with all applicable standards and regulations governing such services. Recipient shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 3.9 Assignment. Inasmuch as this Agreement is intended to secure the specialized services of Recipient, Recipient may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Recipients retained by City. 3.10 - Exclusivity and Amendment. This Agreement represents the. complete and exclusive statement between the City and Recipient, 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 Recipient. 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 Recipient or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 3.11 Discrimination. Recipient shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Recipient affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 3.12 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 4 25A-26 EXHIBIT 3 further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise our of. in co:= eciion with or by reason of this Agreement. 3.13 Professional Licenses. Recipient shall, throughout the term of this Agreement, maintain all necessary licenses. permits. approvals, waivers, and exemptions necessary for the provision of the services hcreunder and required by the laws and regulations of the United States, the State of California, the City Of St nta A -,-.-a and ail other governmental agencies. Recipient shall notify the City immediately and `n vriting of its inability to obtain or maintain such permits, licenses, approvals, waivers, anV exaa;,xio,_s. Said inabiiity shall be cause for termination of this Agreement. 3.14 Entire Cow.actfylod.jcsrior.. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreemerris. The :arms end conditions of this Agreement may be altered, modified or amended only by written agreement signec by both Parties. 3.15 Aath z tti . __ a: z•� aa.:;, The person executing below on behalf of Recipient represents and warrants that the lecioien: has all regttisite power and authority to conduct its business and to execute• deliver and perform this Agreement. Each Party warrants that the individuals who have signed ens Agreement have the legal power, right and authority to make this Agreement bind each respecir:e P=y. IN WITNESS WHEREOF, the parties hererc itave executed this Agreement the date and year first above written. ATTEST: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVAiLEO City Attornpy--). n 0 City FOR APPROVAL: Steven A. Mendoza Executive Director CommunityDcvelcpmcnt Age!cy CITY OF SANTA ANA Kristine Ridge CityY_anager "RECIPIENT" WiS=Place Name: Erateil Aghasi Title: Executive Director 25A-27 EXHIBIT 3 Name of Organization Name of Funded Program City of Santa Ana Scope of Work Program Year 2019-20 (August 1, 2019 - June 30, 2020) W ISEPlace Steps to Independence Annual Accomplishment Goal Unduplicated Participants anticipated to be served during the 12-month contract enod. 30 TOTAL 30 Santa Ana Participants 100% 30 Low Income Participants 100% Schedule of Performance (estimated) Quarter 1: JUL 1 - SEP 30 Quarter 2: OCT 1 -DEC 31 Quarter 3: JAN 1 - MAR 31 Quarter 4: APR 1 - JUN 30 Unduplicated Participants 8 B 8 6 30 Program and Funding Description Estimated Invoicing $ 7,500.00 $ 7,500.00 $ 7,500.00 $ 7,500.00 $ 30,000.00 Place programs help transition unaccompanied homeless women back to self-sufficiency and to them with their families. Our core program, Steps to Independence, provides stop -gap housing and by meals, meeting the most basic need of homeless women. We then work to develop long term efficiency by addressing employment, medical and mental health challenges, budgeting and housing options. managers provide personalized help for each woman to overcome issues that led to homelessness. We )rt graduates to help them maintain self-sufficiency and become productive members of our community. In , we anticipate serving 100-110 women. The Steps to Independence program is designed to serve the following major groups of women we serve: A. "Steps to Independence" targets women who are victims of domestic violence, human trafficking, are recovering from drug and/or alcohol abuse or who have been referred by an emergency shelter program. Increasingly, it also serves women who have survived a devastating financial reversal. Along with safe and affordable housing, residents receive a variety of support services including case management, required financial empowerment curriculum, employment assistance, clothing, meals, transportation, individual counseling and referrals to other community resources. B. "First Step" targets the growing number of young women who emancipate from the foster care system and are literally landing on the streets with no support system and very few survival skills. C. "Senior Step" provides solutions to the health and job -related challenges facing senior, homeless women. D. "Step Up" provides women with developmental disabilities more intense life skills training and health maintenance in addition to all of the services offered through our "Steps to Independence" program. E. "Positive Step" provides second stage housing for up to 5 WISEPlace graduates for up to two years, continuing their transition to self-sufficiency. Positive Step serves women with the most intensive service needs; women that have been chronically homeless with a contributing condition such as mental illness or drug abuse. F. "SRO" (single room occupancy) is a shorter -term program for women who have income but need a place to stabilize while looking for permanent housing. EXHIBIT 3 FISCAL YEAR 2019-2020 PROGRAM BUDGET Organization Name WISEPlace Program Name Steps to Independence EXPENDITURES Enter budget categories and projected expenditures for the proposed program: Category Expenditures Funded By Santa Ana CDBG Expenditures Funded By Other Sources Program Budget Total Organization Budget Program Staff Salaries & Benefits $30,000 $ 384,060' $414,060 $ 577,496 Contractual/Professional Services $0 $ 24,510 $24,510 $ 38,904 Safety & Security $0 $ 53,734 $53,734 $ 53,734 Repairs & Maintenance $0 $ 12,400 $12,400 $ 12,400 Communications & Marketing $0 $ 4,590 $4,590 $ 14,924 Utilities $0 $ 28,900 $28,900 $ 34,400 Program Expenses $0 $ 16,500 $ 16,500 $ 16,500 Program pass through expenses $0 $ 6,100 $ 6,100 $ 6,100 SAFEPIace Pass Through Expenses $0 $ - $0 $ 997,000 Training & Office Equipment $0 $ 8,130 $8,130 $ 11,130 General Office $0 $ 4,480 $4,480 $ 4,480 Positive Step House Lease $0 $ 42,000 $0 $ 42,000 Insurance & Property Taxes $0 $ 25,590 $25,590 $ 40,645 Professional Fees/Data Collection $0 $ '33,365 $ 33,365 $ 61,421 Other 1 $0 $ $ $ 25,330 TOTAL DIRECT COSTS $30,000 $ 644,359 $ 674,359 $ 1,936,464 Indirect Costs 10% $0 $0 TOTAL BUDGET 1 $30,0001 $644,3591 $674,3591 $1,936,464 * Indirect cost rate: 10% Non -Federal entity without federaly recognized negotiated indirect cost rate, will charge a de minimis rate of 10% of modified total direct costs. PROGRAM RESOURCES LIST ALL OTHER PROGRAM RESOURCES FOR 2019-2020 Funding Source Total must equal Program Budget Total listed above. FUNDING SOURCE AMOUNT Santa Ana CDBG $ 30,000 Other Government Funding 31,000 Program Fees 73,359 Contributions/Events 235,000 Foundation Grants 280,000 Corporations 20,000 United Way 5,000 TOTAL $ 674,359 EXHIBIT 3 2019-2020 CDBG BUDGET LINE ITEMS ADMINISTRATIVE STAFF Position Title Annual Salary & Benefits CDBG Funds Requested Description PROGRAM STAFF Position Title Annual Salary & Benefits CDBG Funds Requested Description Program Manager $ 55,598 $ 20,000 Financial Empowerment Mgr $ 48,135 $ 10,000 TOTAL AMOUNT REQUESTED i 1$ 30,000 CONTRACTUAL/PROFESSIONAL SERVICES Type of Service Contract Amount CDBG Funds Requested Description OTHER LINE ITEMS Program CDBG Funds Line Item Amount Requested Description TOTAL CDBG REQUEST $30,000 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ❑ As Recommended APPROVE THE THIRD AMENDMENT AND El El ONE YEAR EXTENSION IN THE AMOUNT ElOOrrdinance on 15' Reading ❑ Ordinance on 2nd Reading OF $129,437.94 FOR INOVAH CASHIERING ❑ Implementing Resolution SYSTEM SOFTWARE SUPPORT AND ❑ Set Public Hearing For HARDWARE MAINTENANCE WITH SYSTEM INNOVATORS, A DIVISION OF N. HARRIS COMPUTER CORPORATION (STRATEGIC PLAN NO. 7,5) CONTINUED TO FILE NUMBER CITY NAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute the third amendment to the agreement with N. Harris Computer Corporation, System Innovators, for ongoing professional software services and related hardware purchases and support and maintenance for the City's cashiering system by an additional amount of $129,437.94 which includes a ten percent (10%) contingency of $12,735.00, subject to non -substantive changes approved by the City Manager and Clerk of the Council. 2. Approve the exercise of the first year of a previously authorized two-year optional agreement extension, effective for the period January 1, 2020 through December 31, 2020, extending the current three-year agreement set to expire on December 31, 2019, along with a re -authorization for a second additional one-year extension for the period January 1, 2021 through December 31,2021 exercisable by the City Manager, subject to non -substantive changes approved by the City Attorney and City Manager. DISCUSSION The following City Departments: Finance and Management Services Agency, Parks, Recreation and Community Services Agency, and the Police Department; utilize N. Harris Computer Corporation, System Innovators ("System Innovators") cashiering software and hardware to process the receipt of City revenue. Specifically, this includes payments for municipal utility services bills, business license tax, hotel visitors' tax, utility users' tax, parking citations, and all other payments processed throughout the City facilities including the payment kiosk. The cashiering system is fully integrated into all City payments systems. 25B-1 Amendment to Agreement with System Innovators, a division of N. Harris Computer Corporation August 20, 2019 Page 2 On March 18, 2014, the City Council approved a three-year agreement with System Innovators for software support and maintenance services for iNovah cashiering system. On May 3, 2016 Council approved a second amended agreement to include ongoing software support and hardware systems maintenance for the annual calendar year periods (January 1 to December 31) of 2017, 2018, and 2019, along with one additional two-year optional contract extension for the annual calendar year periods of 2020 and 2021. The base contract extension periods (calendar year) 2017, 2018, and 2019) for software support and hardware maintenance have been paid to Consultant, System Innovators, in the amount of $128,311.57. Staff recommends approval of a third amended agreement with System Innovators, to ensure continuing annual software support for the City's cashiering system and hardware maintenance for cash drawers, receipt printers, and other associated equipment and software and to maintain the right to receive iNovah version software updates and technical support services. Along with the approval of the third amended agreement, additional software and hardware will be purchased from Systems Innovators for the Treasury Services section to assist with service level upgrades and to store as replacements when any City cashiering station needs to replace inoperable cash drawers, receipt printers, or other related equipment and to assist with the upgrade of iNovah software to new versions when necessary. The annual software and hardware support and maintenance fee payments are due semi-annually. The first installment is due January 15th of each year and the second installment is due the following July 15th of each year. Anticipated iNovah software support and hardware maintenance costs including tax total $145,448 and are outlined in the Fiscal Impact section below. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #7 Team Santa Ana, Objective #5 (create a culture of innovation and efficiency with the organization). 25B-2 Amendment to Agreement with System Innovators, a division of N. Harris Computer Corporation August 20, 2019 Page 3 FISCAL IMPACT Funds are budgeted during FY 2019-20, and will be budgeted for future years for on -going software support and hardware systems maintenance as follows: Fiscal Accounting Fund Accounting Unit, Account Year Unit -Account # Description Description Amount Treasury & Customer Service; FY 19-20 01110130-62300 General Fund Contract Services -Professional $ 27,087.21 Treasury & Customer Service; FY 19-20 01110130-62300 General Fund Contract Services -Professional $ 21,941.57 Treasury & Customer Service; FY 19-20 01110130-62300 General Fund Contract Services -Professional $ 12,735.00 Treasury & Customer Service; FY 20-21 01110130-62300 General Fund Contract Services -Professional $ 21,941.57 Treasury & Customer Service; FY 20-21 01110130-62300 General Fund Contract Services -Professional $ 22,866.30 Treasury & Customer Service; FY 21-22 01110130-62300 General Fund Contract Services -Professional $ 22,866.29 Total On -going Software Support & Hardware Systems Maintenance Cost: $129,437.94 APPROVED AS TO FUNDS AND ACCOUNT: Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibit: 1. Third Amended Agreement ILTe3PIN11 25B-3 25B-4 EXHIBIT 1 THH?D AMENDMENT TO AGREEMENT THIS THIRD AMENDMENT TO AGREEMENT, is entered into on August 20, 2019, by and between System Innovators; a division of N. Harris Computer Corporation (System Innovators), a Florida corporation (hereinafter "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 (hereinafter "City"). RECITALS: A. The parties entered into a three year Software Support and Maintenance Agreement (Agreement A-2014-073) effective April 1, 2014 (hereinafter "said Agreement') by which Consultant has provided citywide support and maintenance services which include revisions, updates and enhancements to the Software and related Hardware and materials under the Agreement. B. The parties subsequently entered into a First Amendment to that Agreement (A-2014-358) on December 16, 2014 to expand the Scope of the Agreement to procure additional hardware and professional software services and related maintenance and support in connection with implementation of an Image Cash Letter Solution. C. The parties thereafter entered into a Second Amendment to that Agreement (A-2016-099) on May 3, 2016 to extend the Term by three (3) years beginning with the 2017 calendar year with the option to further extend said Agreement for one additional two (2) year period (calendar years 2020 and 2021). D. The parties contemporaneously amended Compensation under said Agreement beginning with third year of the original Term (calendar year 2016) to increase compensation to Consultant for additional professional software services and related maintenance and support. E. In accordance with the terms and conditions of said Agreement, the parties wish to amend the Term under said Agreement to bifurcate the two (2) year extension period set out in the Second Amendment to the Agreement into two one (1) year extension periods and hereby exercise the first extension for the period beginning January 1, 2020 and ending December 31, 2020. F. In accordance with the terms and conditions of said Agreement, the parties wish to amend the Scope of the Agreement for the third year of the amended Term to procure additional hardware and related maintenance and support and to correspondingly increase Compensation therefore in the amount of $27,087.21. In addition, the parties wish to include extra work and change order authorization for the remainder of the amended Tenn including the additional extension periods. G. In accordance with the terms and conditions of said Agreement, the parties wish to further amend the annual Compensation amount beginning for the 4th and 5th years of the amended Term covering the two one (1) year extension periods by the amount of $3,288.44 and further add a ten percent (10%) contingency amount in the sum of $12,735.00 for the remainder of the amended Term including the additional extension periods. WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, as amended in the afore -mentioned First and Second Amendments to said Agreement, the parties agree as follows: 25B-5 1. The parties hereto now desire to amend said Agreement to amend the Term to bifurcate the single optional two (2) year extension period (calendar years 2020 and 2021) into two individual (1) year extension periods (calendar year 2020 and calendar yew 2021) and to further to hereby exercise the first said extension for the period beginning January 1, 2020 and ending December 31, 2020. The second remaining optional extension period for calendar year 2021 to be exercisable by the City Manager and City Attorney upon a written request executed by the City Manager, subject to non -substantive changes approved by the City Manager and City Attorney. 2. The parties hereto now desire to amend the Compensation under said Agreement for the third year of the previously amended Term (calendar year 2019) to increase compensation to Consultant by adding an additional Twenty Seven Thousand Eighty Seven Dollars And Twenty One Cents ($27,087.21) for additional professional software services and additional hardware, hardware maintenance, and support as set forth in ("Santa Ana Amended Schedule of Support & Hardware Maintenance 07/01/2019 - 12/31/2019 - 20190805-A — SAN70") and ("Santa Ana Hardware Purchase 07/01/2019 - 12/31/2019 — 20190805-B — SAN70") which are herein incorporated by reference as Exhibit A and Exhibit B, respectively. 3. Payment by City for additional professional software services and related hardware, maintenance, and support as set forth in Exhibits A and B shall be made in accordance therewith following receipt of proper invoicing, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals of said Agreement which may reasonably be expected by City. 4. The parties hereto now desire to amend Article VI "General" [Terms] of said Agreement to add the following subsection provisions as set forth below: 6-16 ("Extra Work") and 6-17 ("Change Order"). 6-16 Extra Work City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work 647 Change Order No extra work may be undertaken unless a written "Change Order" is first given by the City to the CONSULTANT, incorporating therein any material adjustment in the contract and/or the time to perform this Agreement, which said adjustments are subject to the written approval of the CONSULTANT. 5. The parties hereto now desire to amend Exhibit 1, Schedule B, of said Agreement for years 4 through 5 of the extended Term of said Agreement during which City agrees to pay and Consultant agrees to accept the fNovah Software and Hardware Support and Maintenance Payment Schedule as set forth below (to which a ten percent (10%) contract contingency in the amount of $12,735.00 is hereby added, exercisable solely in the discretion of City exercisable for extra requested work, materials, and/or hardware or software support by Consultant pursuant to a duly issued change order): r Optional Contract Extension Periods (2020 & 2021) Software and Hardware Support and Maintenance Year 4 - 2020 Calendar Year = $43,883.14 (previously $42,238.92 + additional $1,644.22) Year 5 - 2021 Calendar Year= $45,732.59 (previously $44,088.37 + additional $1,644.22) Total = $102,350.73 ($89,615.73+ contingency $12,735) 6. Payment by City for software and hardware support and maintenance as set forth in section 5 above shall be made in accordance therewith following receipt of proper invoicing, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals of said Agreement which may reasonably be expected by City. 7. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and effect. 8. This Agreement must be signed below and may be signed in counterpart and delivered by fax, email as a PDF (Portable Document Format) file attachment, or other means that displays the original or a copy of the signatures. Any subsequent amendments may be signed and delivered in the same manner. N /// {Signatures on following page) 25B-7 IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Agreement on the date and year first written above. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO Cityglt::� sy: Ryan odg Assistant City Attorney RECOMMENDED FOR APPROVAL [Cathryn Downs, Executive Director Finance & Management Services Agency CITY OF SANTA ANA KRISTINE RIDGE City Manager CONSULTANT System Innovators, a division of N. Harris Computer Corporation August 7, 2019 ] ffrey Sumner Executive Vice President Tax ID# 98-0141520 r EXHIBIT A System Innovators (IS.1.11) (Santa Ana Amended Schedule of Support & Hardware Maintenance 07/01/2019 -12/31/2019 - 20190805-A — SAN70) S.I. - 07/01/2019 to 12/31/2020) �O,der ed Code�Ty�pe.w `,?'� Descnptiorr y., a y; Item Pence, 'Extended P ice,; Note Software Support (SWS) I Sl MAINT iNovah- SWS: 7/1/2019 to 12/31/2019 $ 15,703.69 $ 15,703.69 (includes COMPROD/COMTEST Datebase & Data Ticket Interfaces) I SI MAINT iNovah Additional Software Support for 100,000 $ 2,500.00 $ 2,500.00 receipts 1 Note Hardware Support (HS) 21 HWD MAINT TPG A776 Printer- HWX: 7/1/2019 to 12/31/2019 $ 105.00 $ 2,205.00 12 HWD MAINT APG Cash Drawer - HWX: 7/1/2019 to 12/31/2019 $ 35.00 $ 420.00 1 Note Third Party Support (TPM) 1 Sl - TPIVI Check 21 (ICL to Chase) - SWS: $ 1,910.08 $ 1,910.08 7/1/2019 to 12/31/2019 Note System Innovators will conduct receipt license audits on an basis. City of Santa current annual receipt license = "300,000" receipts. Subtotal $ 22,738.77 Tax $ 242.82 Total $ 22,981.59 2"1§ (1 EXHIBIT B System Innovators ("S.I.") (Santa Ana Hardware Purchase 07/01/2019 - 12/31/2019 — 20190805-B — SAN70) S.I. - 07/01/2019 to 12/31/2019 (Additional Hardware) Ouantity Ordered Code Type Description Item Price Extended Price 5 HWD Receipt Printers $ 599.00 $ 2,995.00 1 HWD Cash Drawer (till) $ 268.00 $ 268.00 1 HWD Imager $ 495.00 $ 495.00 Subtotal $ 3,758.00 Tax $ 347.62 Total $ 4,105.62 25 -fYO REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ❑ As Recommended APPROVE AGREEMENT WITH ❑ As Or Amended ❑ Ordinance on 1s' Reading CLEARSOURCE FINANCIAL CONSULTING ❑ Ordinance on 2nd Reading TO PREPARE AN INDIRECT COST ❑ Implementing Resolution ALLOCATION PLAN AND INTERNAL ❑ Set Public Hearing For SERVIDE FUNDS COST ALLOCATION METHODOLOGY FOR UP TO FIVE YEARS, FOR A TOTAL AGGREGATE AMOUNT NOT TO EXCEED $170,700 (STRATEGIC PLAN NO. 4, 1) CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute an agreement with Clearsource Financial Consulting to prepare an Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology, for a three-year period August 20, 2019 through August 19, 2022, with a provision for two additional one-year terms exercisable (beginning August 2022 through August 2024) by the City Manager and the City Attorney, for a total aggregate amount not to exceed $170,700 for the term of the contract, including the optional renewals, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On a periodic basis, it is incumbent on local government agencies to review and update their inter -agency charges through a formal study commonly referred to as a Cost Allocation Plan. The primary purpose of conducting such a study is to ensure that the costs of providing certain City services are reasonably recovered through fees and charges. The City currently uses internally developed cost allocation methodologies to recover direct and indirect costs from various City departments and programs (Indirect Costs). However, due to increased complexity of federal, state, and local guidelines for cost principles and audit requirements, the Finance and Management Services Agency (FMSA) has determined that a more comprehensive cost allocation plan is necessary to maintain the City's continued compliance with applicable laws and regulations. The proposed work plan includes two primary components; An Indirect Cost Allocation Plan (Indirect Costs) and Internal Service Funds Cost Allocation Methodology. The Indirect Cost Allocation Plan aims to recover the General Fund's overhead costs of providing indirect support services to operating departments and programs. The Internal Service Funds Cost Allocation 25C-1 Agreement with ClearSource Financial Consulting to Prepare an Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology August 20, 2019 Page 2 Methodology aims to develop a full cost allocation methodology to recover annual operating costs of internal service funds from inter -agency customers. The objective of this project is to ensure that the City's method of identifying and distributing indirect costs and internal service costs is fair, comprehensive, well documented, and defensible. On June 6, 2019, FMSA released a Request for Proposals (RFP) for professional consulting services. A total of seven consulting firms submitted proposals; Clearsource Financial Consuliting, eCivis, Inc., Matrix Consulting Group, Maximus, MGT Consulting Group, NBS Government Finance, and Revenue & Cost Specialists, LLC. The seven proposals were evaluated and ranked by a Review Committee comprised of staff from FMSA and the Risk Management Division of the Human Resources Department. The evaluation was based on several factors: • Overall ability to provide the services based upon the responses to the RFP • Technical qualifications and experience of key members of the engagement team and the firm • Experience with similarly sized governmental agencies in providing the types of services outlined in this RFP • Capability of handling all aspects of the engagement as defined as well as providing support and technical assistance • Fees and charges related to the level of work proposed Based upon the factors noted above, ClearSource Financial Consulting (ClearSource) was selected as the most qualified firm to provide the services. They demonstrated a strong staffing record along with high level of technical knowledge regarding all aspects of the City's engagement, and experience in preparing cost plans for similarly sized governments. Additionally, their highly experienced team will be available to assist with any technical issues or questions. ClearSource will be tasked in developing both a methodology along with a related method of distributing costs including but not limited to the following items: Indirect Costs (General Fund Overhead Support: • City Attorney • Office of the City Manager • Human Resources • City Clerk • Finance (Purchasing, Management & Support, Payroll, Treasury and Purchasing) • Fixed Assets Internal Service Funds: • Information Technology • Workers Compensation 25C-2 Agreement with ClearSource Financial Consulting to Prepare an Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology August 20, 2019 Page 3 • General Liability • Employee Benefits • Fleet • City Yard • Building Maintenance • Central Services In addition, ClearSource will be working with the above -referenced Departments to ensure they optimize their understanding for the respective operations and business process when developing the related methodologies. At the conclusion of their (ClearSource) analysis, an information session will be held to ensure Department stakeholders have an understanding of how the costs are arrived along with the distribution of the said costs to City Departments. As such, staff recommends contracting with ClearSource to provide the City's Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology for a period of three years with the option to renew for two additional one-year terms. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 Team Santa Ana, Objective #5 (Create a culture of innovation and efficiency within the organization), Strategy F (Explore opportunities to engage with outside agencies, both private and public, to share information and increase efficiencies). FISCAL IMPACT Funds in the amount of $170,700 will be budgeted and available for the following fiscal years: Accounting Unit FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 01110110-62300 $22,000 $14,400 $14,400 $14,400 $14,400 01110100-62300 $33,500 $14,400 $14,400 $14,400 $14,400 Total $55,500 $28,800 $28,800 $28,800 $28,800 APPROVED AS TO FUNDS AND ACCOUNTS: Lv ` Kathryn Downs yvw Executive Director Finance and Management Services Agency Exhibit: 1. Professional Services Agreement 25C-3 25C-4 EXHIBIT 7 AGREEMENT WITH CLEARSOURCE FINANCIAL CONSULTING TO DEVELOP AN INDIRECT COST ALLOCATION PLAN AND INTERNAL SERVICE FUNDS COST ALLOCATION METHODOLOGY THIS AGREEMENT is made and entered into on this 201h day of August, 2019 by and between ClearSource Financial Consulting, a California corporation ("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. On June 6, 2019, the City issued Request for Proposal 19-021 seeking qualified consultants to develop an indirect cost allocation plan and internal service funds costs allocation methodology utilized to review and update the City's interagency charges and provide the City a comprehensive cost allocation plan which is necessary to maintain the City's continued compliance with applicable laws and regulations on this matter. B. Consultant submitted a timely proposal, which was selected by the City. Consultant represents that it is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting 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 Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and set forth in the attached Scope of Services identified as Exhibit A, attached hereto and incorporated by reference. 2. COMPENSATION a. City agrees to pay, and Consultant. agrees to accept as total payment for its services for City, the rates and charges identified in the attached cost proposal identified as Exhibit B. The total amount to be expended during the term of this Agreement shall not exceed $170,700. Per Exhibit B, $113,100 shall be allocated for years 1-3. For any extension periods exercised per Section 3, below, an additional $28,800 per each optional year shall be compensated per Exhibit B. b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth 45862vl 25C-5 in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above for a three-year term until August 19, 2022, with the option for the City to grant up to two (2) one (I) -year renewals, exercisable by a writing executed by the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15, below. 4. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act #5862vl 25C-6 or occurrence arising out of Consultant's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self- insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: i. Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. ii. Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. iii. Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. iv. Where the amounts or coverage provided by the certificates of insurance provides coverage greater than those listed by this Agreement, the amounts provided by the certificates of insurance shall be incorporated by reference into the Agreement. V. Consultant shall supply City with a fully executed additional insured endorsement. f. If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination. Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. #5862vl 25C-7 INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable 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 Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Consultant to the City pursuant to this Agreement. 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. #5862vl 25C-8 10. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees 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 importance, but in no event less than reasonable care. "Confidential Information" shall 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 Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant, 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 Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein. #5862vl 25C-9 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other consultants retained by City. 15. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 18. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and #5862v1 25C-10 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. fV�i; l 1141i Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax: 714- 647-6956 With courtesy copies to: Executive Director, Finance and Management Services Agency City of Santa Ana 20 Civic Center Plaza (M-17) P.O. Box 1988 Santa Ana, California 92702 Fax:714-647-5414 To Consultant: Attn: Terry Madsen, President 7960 B. Soquel Dr., #363 Aptos, CA 95003 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. #5862vl 25C-11 20. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's tees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 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: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By:, Ryan RECOMMENDED FOR APPROVAL: _ dx-tA Kathryn Downs, CPA Executive Director Finance and Management Services Agency #5862v1 CITY OF SANTA ANA Kristine Ridge City Manager CONSULTANT: Terry Mad. en President 25C-12 EXHIBIT A SCOPE OF SERVICES 25C-13 PROJECT UNDERSTANDING Objectives The City of Santa Ana is initiating a Citywide Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology study. Through both elements, this project is intended to fulfill the following: CITYWIDE INDIRECT COST ALLOCATION PLAN Develop a full cost Citywide plan to recover General Fund costs of providing service to city departments and programs. :D Develop a plan that can be updated annually for subsequent fiscal years (e.g., 2020-21 through 2023-24). 0 Provide preliminary reporting to staff and allow for subsequent modification. Z Provide a final plan in electronic format by December 31, 2019, for the City's immediate use. Provide a Cost Allocation Policy and modify according to staff review. Consult with the City in subsequent questions, audits, or challenges. INTERNAL SERVICE FUNDS COST ALLOCATION METHODOLOGY Review the programs and services of each participating internal service fund, and identify the customers of each one. Develop the methodology for allocating the full cost of service for each internal service fund to its customers. Recommend guidelines for annual reconciliation of charges for the actual costs of service incurred. Z Provide the final methodology for each internal service fund in electronic form to allow for subsequent changes to cost and organization. Z Consult with the City in subsequent questions, audits, or challenges. GENERAL PLANNING AND REPORTING Clarify intended goals and purposes and gain understanding of City operations. Discuss perceived issues and notify of any problems. Provide periodic progress reports following a viable work plan. Submit information requests with timetable. (Please note: Rather than submit this element as a separate component, these study orientation and project management tasks are embedded throughout the ClearSource work plan for each component project. However, we wanted to acknowledge here the City's expectations for consultant performance.) Services for Review This type of project is focused on "the costs to serve," from the perspective of internal uses throughout the City's organization: What are the costs of central services within the municipal organization, and how do those costs relate to the array of direct services provided to the community? What are the cost recovery opportunities for these administrative, management, and support services of the agency? These foundational plans provide the justification for eventual full cost recovery from resources tapped outside the agency. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-14 CITYWIDE INDIRECT COST ALLOCATION PLAN A Citywide indirect cost allocation plan provides a method for recovery of central services costs from the direct services of the entity. The results of the plan yield many important outcomes, such as: Indirect rates for use indirectly charging staff time to accounting units (i.e., programs and projects). Indirect rates compliant with 2 CFR Part 200 for federal, state, and local assistance received by those programs and projects. Z Interfund transfers imposed on certain funds to reimburse the General Fund for services provided. Though not necessarily a final or complete listing, the City currently identifies the following central services included for recovery in its indirect rates: Z The Office of the City Manager Human Resources City Clerk Z City Attorney Finance, including Accounting, Management and Support, Payroll, Treasury/Customer Services, and Purchasing 0 Fixed Assets, including equipment, City Hall facilities, and other buildings and improvements INTERNAL SERVICE FUNDS COST ALLOCATION METHODOLOGY A methodology for allocating the costs of internal service funds provides for a reasonable "cost of service" means for apportioning fund costs to the specific users of the fund. The outcome of the methodology prepared for each fund is an array of charges for services that can be budgeted in each accounting unit's expenditure plan, and reconciled to actual costs incurred thereafter. The City currently identifies the following internal service funds participating in this project: Information Technology (Operations, Telecommunications, Copier Usage, Department Applications) Z Worker's Compensation Z General Liability (Insurance) Z Employee Benefits (Operations, Health Insurance) Z Fleet (Equipment and Vehicle Maintenance, Stores) Z City Yard Z Building Maintenance (Preventative Maintenance, Janitorial Services) Z Central Services (Photocopying, Printing) Prevailing Conditions For at least a decade, the City has been maintaining its Citywide indirect cost allocation plan internally, with a formal report documenting the plan for Fiscal Year 2018-19 available. Internal service fund methodologies have been developed more formally by City staff within the past year. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-15 WORK PLAN CITYWIDE INDIRECT COST ALLOCATION PLAN ClearSource presents the following step-by-step work plan to complete the Citywide Indirect Cost Allocation Plan envisioned by the City of Santa Ana. Task 11 Study Orientation The purpose of this task is to generate common understanding of objectives, known issues that must be addressed by study end, participant roles, expected procedural requirements, schedule and pre -established dates, and data collection and development procedures. TASK 1.11 ONSITE PROJECT KICK-OFF Consultants will prepare for, attend, and facilitate one onsite event with City personnel to initiate the project. (This event will be held concurrently with events scheduled for the Internal Service Funds Cost Allocation Methodology Study.) TASK 1.2 1 ASSESS PREVAILING METHODS ClearSource will evaluate prevailing cost allocation models, methods, and applications. Particular attention will be paid to annual procedures, internal opinions and impacts, and balance of workload with the requirements of the City's uses for overhead, including internal transfers/reimbursements and external agency reimbursement. ClearSource will also review readily available budgetary documents to gain a working knowledge of City structure and accounting practices. TASK 1.3 1 PLAN FOR NEW MODEL After project kick-off, ClearSource will determine a plan for generating current indirect cost allocations for the host of uses identified by the City. This will likely include development of a new Excel -based model in alignment with current needs but may include modification of existing tools if City personnel prefer to sustain existing tools. ClearSource will remain flexible. Task 2 1 Critical Inputs The purpose of this task is to develop the necessary foundation for subsequent quantitative analysis. Particular focus will be generating necessary data and documentation of inputs and assumptions as required by the application of plan outcomes. (For example, an OMB 2 CFR Part 225 compliant plan requires a specific inventory of information that may not be as essential if applications are entirely internal to the City. The City has stated that it does receive federal, state, and local assistance, so ClearSource will verify that indirect rates are actively applied to those awards and generate rates accordingly.) TASK 2.11 DEVELOP FINANCIAL INPUTS Consultants will mine the City's financial reporting to access organizational and line - item detail to support costs, allocation factors, workload metrics, and accounting structure in the cost allocation model. TASK 2.2 1 DEVELOP ALLOCATION FACTORS Consultants will pull published statistics that may be useful as bases for distributing costs and where necessary, develop and document alternate data sets to serve as distribution methods. Targeted meetings with representatives from support services departments may be useful to influence CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-16 SECTION 4 data accessibility and relevance in the cost allocation plan, such as work order records, inventories, and other volumetric or organizational tools. Task 3 1 Cost Allocation Model The purpose of this task is to generate the quantitative model to allocate indirect costs Citywide. Structure and detail of the final model will be dependent upon the ultimate application of its results, as a plan submitted for cognizant agency approval in compliance with OMB 2 CFR Part 225 and/or the State Controller's Office for Cost Claiming will require aspects unnecessary in applications where cost recovery is expected to be entirely internal to the agency. TASK 3.11 MODEL DEVELOPMENT ClearSource will develop an Excel -based model to distribute indirect service costs Citywide. The model is expected to identify: Z Citywide fund and accounting structure and fiscal year data for allocation outcomes :> Allocable indirect service centers Allocation bases and related distribution factors for indirect service centers Z Direct service centers Primary and secondary allocations • Resulting annual cost allocations a Resulting indirect service rates Z Resulting interfund transfers The model will establish a specific methodology for deriving overhead costs that will properly reimburse the General Fund. The model will be developed to accommodate iterations, should an internal "full cost" method be desirable in certain applications, while maintaining an iteration with decisions necessary for state/federal compliance in indirect cost reimbursement. The model will be built to accommodate change in the organization: the ability to add or remove direct and indirect costs and to adapt to a range of activities, from simple to complex. Furthermore, the model will be built to enable continuous updates, as the City elects to maintain and update its cost allocation practices in-house in future years. TASK 3.2 1 COMPARISON OF OUTCOMES ClearSource will generate a comparison of outcomes under the updated Cost Allocation Plan to prior year outcomes, including explanation for substantive differences. Task 4 1 Reporting and Tools The purpose of this task is to provide the formal documentation encompassing the work and outcomes of the study, as well as deliver the tools developed throughout the study for the City's ownership and future use. TASK 4.11 DRAFT REPORT ClearSource will prepare a narrative description of the study, describing key data and assumptions, and impacts. The report will include tables and charts to explain findings, and it will include the complete quantitative analysis as the justification for updated indirect cost allocations and associated rates and transfers. Reports will be issued in portable document format (PDF) for digital distribution and any necessary printing by the City. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-17 For a cost allocation plan in compliance with OMB 2 CFR Part 22S, the report/quantitative analysis will include: �D Description of each allocated central service Z Identification of the units rendering services and the units receiving services • Items of expense included in the allocated cost of service • Method used to distribute the cost of service to benefitted units Schedule showing the allocation of each service to the specific benefitted units Z Organizational chart TASK 4.2 1 FINAL REPORT Upon review and feedback from the City staff, consultants will revise the draft report and accompanying outcomes to incorporate direction received. The final report will be issued for the City's implementation. Reports will be issued in PDF for digital distribution and any necessary printing by the City beyond the requested bound and unbound copies delivered by consultants. TASK 4.3 1 MODEL/WORK PAPER DELIVERY Upon issuance of the final report, ClearSource will deliver editable versions of all models, documentation, and associated work papers to the City for future use. Models will be delivered in Microsoft Excel and PDF. Documentation will be delivered in Microsoft Word and PowerPoint and in PDF. Additional work papers developed will be delivered in the format in which they were created and in PDF. TASK4.4 1 STAFF TRAINING At the time of the City's choosing, ClearSource will facilitate an event to train staff in the use and update of the cost allocation model, in an effort to ensure future sustainability of outcomes produced by this study. Task 5 1 Engagement The purpose of this task is to facilitate a meaningful level of interaction between consultants, City personnel, and City Councilmembers. TASK 5.11 CITY STAFF INTERACTION In addition to the project kick-off event described in Task 1, ClearSource anticipates at least two additional site visits to engage with designated City personnel managing cost allocation practices, held in conjunction with events for the Internal Service Funds Cost Allocation Methodology study. TASK 5.2 1 STAKEHOLDER INTERACTION It is expected that the City will want to engage impacted direct service programs in this process. ClearSource anticipates site visits to: Understand current issues with central services cost recovery at the user level. Review interim study outcomes. Present draft proposals and receive feedback prior to final reporting. ClearSource has found that "Q&A" sessions available to departmental stakeholders at scheduled times works well as an open forum for this type of collaboration. Either or both scheduled meetings or open drop -in CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-18 SECTION 4 sessions can be accommodated in this process. TASK 5.3 1 CITY COUNCIL INTERACTION At City management discretion, ClearSource anticipates one event with the City Council to present the draft report and receive WORK PLAN feedback and direction on cost allocation proposals that would impact the City's budgetary and financial practices. Consultants will prepare materials for this session, present the plan (or elements relevant for City Council input), and respond to City Council inquires. INTERNAL SERVICE FUNDS COST ALLOCATION METHODOLOGY ClearSource presents the following step-by-step work plan to complete the Internal Service Funds (ISF) Cost Allocation Methodology study envisioned by the City of Santa Ana. Task 1 I Study Orientation The purpose of this task is to generate common understanding of objectives, known issues that must be addressed by study end, participant roles, expected procedural requirements, schedule and pre -established dates, and data collection and development procedures. This task also includes an upfront effort to examine prevailing rates/allocations, structure, and administration for known issues and to discuss initial and potential modifications to structures and practices. TASK 1.11 ONSITE PROJECT KICK-OFF Consultants will prepare for, attend, and facilitate one onsite event with City personnel to initiate the project. Events may be combined or separated into a series of meetings with involved internal participants/stakeholders. TASK 1.2 1 ASSESSMENT OF PREVAILING RATES Prior to project kick-off, ClearSource will evaluate prevailing rate/charge structures and/or allocations across the participating funds. Assessment will include subjective effectiveness of current structures, in such terms as effective cost recovery, perceived equity among different users, alignment of any differentiation in rate categories with the manner in which work is performed currently, feasibility and accuracy of billing within current technology or practices, and other considerations. TASK 1.3 1 INITIAL RATE STRUCTURE REMODELING After project kick-off, ClearSource will draft an initial or targeted rate/allocation structure for each fund, with categories and proposed charge bases only (not values), stemming from initial conversations, proposed solutions based on industry standards or internal influences, or initial concepts suggested by ClearSource. This initial rate structure will be used as the basis for developing critical data inputs in Task 2; however, it does not have to represent the final structure of rates and charges, as quantitative analysis in Tasks 2 and 3 will also inform recommended cost recovery structures. It is important for us to state that discussion of rate remodeling is intended to indicate our willingness to enact substantive change, CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-19 should the City desire it. Unless our cost of service results indicate an absolute requirement that structures be altered, we are also amenable to continuance of prevailing practices, modified to current costs of service and other influences. In short, we are flexible to conditions on the ground once we arrive. Task 2 1 Data Analysis The purpose of this task is to develop the necessary foundation for subsequent quantitative analysis. We will focus much of our initial work to develop the body of data that will inform every downstream element of the project. TASK 2.11 GATHER, ANALYZE, AND DEVELOP FINANCIAL DATA Consultants will access detailed budget data from City staff and publicly available resources to describe: Z Revenues: This encompasses incoming revenues to each internal service fund by type (ISF charge or other) and source (i.e., other organizational department/fund or external source). A multi -year history of this revenue profile will be preferable if annual revenues vary from year to year. :D Operating Costs: Line -item expenditures will be examined from the currently adopted budget. Additional examination of periodic expenses will be researched. Fee schedules for any contracted personnel/services will be acquired and interpreted. Internal charges or estimation for central services and/or general governmental overhead will be included. Loan repayments and contributions to other activities will be examined. 0 Capital Expenditures: Planned investments, both regularly occurring and specific projects will be acquired. Much of this work focuses on asset management or life -cycle analysis for replacement of existing inventories. :D Fund Performance: Cash balances in each internal service fund will be identified and established fiscal policies on management of those balances will be identified. Reserve Requirements: Any existing policies or practices associated with the planned accumulation and expenditure of dedicated reserves in applicable internal service funds will identified. TASK 2.2 1 ACQUIRE AND ANALYZE VOLUMETRIC STATISTICS FOR SERVICES Consultants will gather from internal service fund personnel any existing data sets that will inform workload/activity/use levels for the functional services under review in each ISF. This includes data such as Inventories of materials and assets maintained, such as different types of equipment, vehicles, hardware, etc. Z Utilization of services and space, such as work orders, hours, tracked usage, billed activity, occupation of facilities, etc. Previously negotiated shares and relevant past practices or behaviors. Z Other direct or indirect metrics that might measure benefit (preferable) or CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-20 SECTION 4 proportionality (acceptable), such as sources outside of the ISF rate structure, personnel counts, budget size, etc. where applicable (e.g., grants, external Acquisition of statistical information from City databases will likely be requested throughout the study as issues for further analysis arise. Task 3 1 Revenue Requirement Forecast The purpose of this task is to develop the financial plan that serves as the foundation for cost of service and cost recovery requirements for each fully self -supported internal service fund. It will produce a multi -year forecast-5 to 10 years — of fund needs and estimated performance. TASK 3.11 OPERATING FORECAST ClearSource will prepare a forecast of operating revenues and expenses in each fund, built from prevailing levels (e.g., adopted budget) and forecasted by applying industry inflation metrics and/or City -specific historical patterns and known schedules. Attention will also be paid to expenses that do not follow a yearly spending pattern. This will yield total annual recurring expenses and corresponding annual revenues in each year of the forecast. TASK 3.2 ( CAPITAL FORECAST ClearSource will prepare a forecast of capital revenues and expenses in each fund, built from established plans of each internal service fund and/or historical activity. Capital investments encompass ongoing, annual levels of rehabilitation and/or replacement of assets, as well as specifically identified projects (e.g., major replacements or widely applied improvements). Revenues encompass cost -sharing, special fees, or negotiations) and capital replacement components embedded in the ISF rate structure itself for long-term asset management. This forecast will yield annual burdens to the fund in each year of the total financial plan. TASK 3.3 j FUND PERFORMANCE FORECAST ClearSource will model yearly cash flow in each internal service fund, identifying 0 Beginning cash balances. :D All inflows and outflows stemming from the forecasts. Ending cash balances. Attainment of established or recommended fiscal policies. Health of dedicated reserves for bother operations and capital requirements. TASK 3.4 1 RESERVE FUNDING ANALYSIS Stemming from the fund performance forecast, ClearSource will develop a reserve funding target to level annual burdens demonstrated. This identifies a component of the overall rate burden intended to accumulate cash balance in the fund in advance of peaks in spending, typically caused by any noteworthy periodic operating expenses or, more often, by specific capital investments anticipated in certain years of the forecast or over longer -term life cycles of major assets, such as facilities or core infrastructure. Reserve components in rates provide an ongoing revenue source for long-term asset management and yield CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-21 SECTION 4 a more stable, predictable charge for TASK 4.11 FUNCTIONAL ALLOCATION OF FUND service from year to year for users of each REQUIREMENTS internal service fund. TASK 3.6 1 REVENUE REQUIREMENT DETERMINATION Accounting for the findings of each previous forecast, ClearSource will identify deficiencies in fund performance when compared to total needs. Consultants will then establish the annual revenue requirement for each internal service fund in each year of the financial plan. Non -rate revenue sources will be deducted, and the final total basis for cost recovery from internal service charges (rates) will be identified for use in Task 4. It is expected this component will be subject to iteration, as in certain funds, the total revenue requirement may produce a result that is immediately infeasible under current City revenue streams. A strategic phase -in to total funding over time may need to be developed; therefore, clear decisions in the underlying financial plan should be made to accommodate lesser funning capacity in a phased approach. Task 4 1 Rate/Charge Development The purpose of this task is to develop the structure and values encompassing a rate or charge structure for each internal service fund, as the means for cost recovery from participating departments/funds. Values determined in this analysis represent the maximum cost recovery amount by user. While the City may make alternate cost recovery decisions oeneath that ceiling if maximum results prove infeasible, the underlying financial plan in Task 3 should be modified so rate outcomes in Task 4 are linked to a reasonable plan that can support self-sufficient ISFs. Stemming from structural decisions made in Task 1.3, as well as the overall composition of fund expenditures developed throughout Task 3, ClearSource will allocate the line -item revenue requirement to core functions of service in each internal service fund. The purpose of this functional allocation is to acknowledge the multi -faceted nature of services provided by each ISF: that users demand or benefit from each sub -function to a different proportion from another sub - function. The result of this task is a breakdown of total annual obligations of the ISF to pools of defined service that may be apportioned to users following different bases. TASK 4.2 1 ALLOCATION OF FUNCTIONAL COSTS In consultation with ISF personnel and engaged internal stakeholders, ClearSource will allocate each function of service within the ISF to department/fund users based on an individually selected metric (or in exceptions, a combination of metrics). This metric will be chosen based on a variety of influences, such as: Relevancy to the underlying service. M Reasonableness in generating a proportional outcome, if not measure of use or benefit. Reasonableness in administration, both in acquiring the data source and updating it in the future. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-22 SECTION 4 Stability in year-to-year impacts, both rate will assume a more rolling, if not to the ISF and to the department/fund users. Avoidance of conflicting behaviors or undesirable incentives within the City organization and its larger goals. TASK 4.3 1 DETERMINATION OF TOTAL CHARGE BY USER Upon completion of Task 4.2, ClearSource will identify the total allocation of internal service fund costs to each participating user of the services. In some cases, it is expected that this annual allocation may be the end result for the ISF, i.e., a total charge for service by user. Fundamentally, this allocation -based result provides a historical "snapshot" approach to cost recovery that sets cost recovery for the fiscal year once. In some aspects of an ISF, it may be the consensus or a necessity that ISF charges be assessed on a more "real- time" basis or be subject to a year-end "true -up" to actual activity, in which case, a rate is required (Task 4.4). TASK 4.4 1 ESTABLISHMENT OF RATE In internal service funds or aspects of the ISF where a total charge by department/fund is insufficient as a cost recovery structure, a rate by function of service will be established. ClearSource will develop a unit cost for the function by expressing the annual amount per unit of service, using a workload, use, beneficiary, or proportional metric selected from the accumulation developed in Task 2.2. Depending on the variable nature of the metric chosen, rates may be based on historical patterns in the underlying data set, rather than a single year snapshot. Or if consensus leans opposite of that, the "real-time" application. Rates will be reconciled to prevailing demographics from each participating user to ensure adequate revenue generation moving forward, absent unforeseen change. TASK 4.5 1 COMPARATIVE RATE/CHARGE IMPACTS ClearSource will compare resulting rates and/or overall charges for service to current cost recovery by each user department/fund. Reasons for any significant changes will be evaluated and explained. This comparison assists in presenting and communicating changes to cost recovery structure and amount. It also enables further testing of the reasonableness and accuracy of substantial changes to approach. TASK 4.6 1 DEVELOPMENT OF PROCESS FOR ACTUAL COST RECONCILIATION ClearSource will establish the methodology for reconciling budgeted charges to end users to charges calculated based on actual costs incurred once auditied expenditures become available. Task 5 1 Reporting and Tools The purpose of this task is to provide the formal documentation encompassing the work and outcomes of the study, as well as deliver the tools developed throughout the study for the City's ownership and future use. TASK 5.11 DRAFT REPORT ClearSource will prepare a narrative description of the study, describing key data and assumptions, financial plan and cost of service outcomes, rate and charge CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-23 proposals, and impacts. The report will include tables and charts to explain findings, and it will include the complete quantitative analysis as the justification for proposed rate/cost recovery methods for eacn internal service fund. Reports will be issued in portable document format (PDF) for digital distribution and any necessary printing by the City. I: is expected that City personnel will review an initial iteration of the draft report, and ClearSource will modify it before it becomes a final delivered document available to the City Council and the puolic. TASK 5.2 1 PRESENTATION/SUMMARY MATERIALS ClearSource will develop a presentation or summary packet for use in communicating proposals to internal stakeholders and, if desired, to the City Council or subcommittee. TASK 5.3 ) STAFF REPORT Should the City choose to discuss ISF rates with the City Council or its subcommittee, ClearSource will assist City staff in the preparation of the staff report delivered as part of the normal agenda process. TASK 5.4 1 FINAL REPORT Upon review and feedback from internal stakeholders and/or the City Council, ClearSource will revise the draft report and accompanying proposals to incorporate direction received. The final report will be issued for the City's implementation of proposals. Reports will be issued in PDF for digital distribution and any necessary printing by the City beyond the requested bound and unbound copies delivered by consultants. TASK 5.5 ) MODEL/WORK PAPER DELIVERY Upon issuance of the final report, ClearSource will deliver editable versions of all models, documentation, and associated work papers to the City for future use. Models will be delivered in Microsoft Excel and PDF. Documentation will be delivered in Microsoft Word and PowerPoint and in PDF. Additional work papers developed will be delivered in the format in which they were created and in PDF. Task 6 1 Engagement The purpose of this task is to facilitate a meaningful level of interaction between consultants, City personnel, and, if desired, City Councilmembers, with the goal of successful approval, implementation, and ongoing maintenance of study proposals. TASK 6.11 INTERNAL SERVICE FUND INTERACTION In addition to the project kick-off event described in Task 1, ClearSource anticipates additional site visits to engage with ISF and Finance personnel, such as eventsto: Z Develop data, such as expenditures, asset life cycles, and workload metrics. Review spending plans and fund performance. Discuss administrative practices and feasibility of cost recovery methods. Review interim study outcomes and final proposals. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-24 SECTION 4 TASK 6.2 1 STAKEHOLDER INTERACTION It is expected that the City will want to engage impacted ISF users in this process. ClearSource anticipates site visits to: Understand current issues with ISF cost recovery at the user level. �Z Review interim study outcomes. Z Present draft proposals and receive feedback prior to final reporting. ClearSource has found that "Q&A" sessions available to departmental stakeholders at scheduled times works well as an open forum for this type of WORK PLAN collaboration. Either or both scheduled meetings or open drop -in sessions can be accommodated in this process. TASK6.3 1 CITY COUNCIL/SUBCOMMITTEE INTERACTION If desired by City leadership, ClearSource will anticipate an event with the City Council or relevant subcommittee to present the draft report and receive feedback on proposals. Consultants will prepare materials for this session, present the study, and respond to City Council inquiries and/or enable Councilmember dialogue with supplemental information. OPTIONAL SUBSEQUENT ANNUAL UPDATES Should the City direct ClearSource to proceed, consultants will perform a truncated version of the previously identified work plans for both the Citywide Indirect Cost Allocation Plan and the Internal Service Funds Cost Allocation Methocology. Though methods and models will be established already, ClearSource would review foundational DATA REQUIREMENTS The fcllowing is an initial list of data which ClearSource will gather from publicly available sources or request from City staff: A chart of accounts, identifying fund numbers, debartments/divisions, and revenue and expense accounts. Z) Actual revenues and expenditures by account for all funds and accounting units decisions in subsequent updates — service profiles and cost structures, for example — as our experience shows us that change is inevitable. Change may stem from organizational or financial reporting modifications, but may also be needed as experience with prior outcomes uncovers issues that must be addressed to optimize these cost recovery practices. within those funds for the most recently finalized and audited fiscal year. Ci Revenues and expenditures by account for all funds and accounting units within those funds for the fiscal year consultants and the City determine to be the basis for both cost allocation study areas. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-25 Most recently completed indirect cost bases for certain cost pools, such as allocation plan and internal service fund workload and work order data, time allocations. tracking, inventories, assigned uses, etc. Adopted budget document(s) for the City for the most current fiscal year and for the year determined to be the basis for each study area. Z Comprehensive Annual Financial Report for the most recently finalized and audited fiscal year. 0 A listing of each staff position for all funds/accounting units showing employee name, title, salary, benefits, and if possible, full-time equivalent allocated to the accounting unit. Z Tc be developed as the studies proceed: volumetric data already tracked by City systems that may be used as allocation Z) Any formal policies of the City that may influence or direct specific actions with respect to cost recovery of indirect and internal service costs. :D Any ongoing agreements stipulating conditions for indirect cost recovery from active federal and state assistance programs. Before undergoing any time-consuming process to create data in response to a ClearSource request, we always encourage additional discussion. For these types of studies — particularly since annual updating is so critical — it is not our intent to create work for staff that is beyond fairly standard data, reporting, and systems capabilities. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-26 EXHIBIT B COMPENSATION Fee Proposal including hourly rates if applicable 25C-27 CONSULTING FEE Maximum Not to Exceed Price (Year One) For the complete Citywide Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology, due December 31, 2019 ("Year One'), ClearSource presents the following maximum, not -to -exceed consulting fee: �D Total Project, Year One: $55,500 — Citywide Indirect Cost Allocation Plan: $16,500 — Internal Service Funds Cost Allocation Methodology: $39,000 Figure 3 on the following page illustrates the detail behind our presented maximum price for the project. This includes labor time paired with hourly rates and expenses by task described in the ClearSource work plan. This fee includes all direct and indirect costs. associated with our professional labor, as well as applicable direct expenses for the project. Manner of Payment ClearSource will issue monthly progress reports to the City. Accompanying invoices will be based on hours recorded to the project, with final invoice not submitted until work is completed as scoped in our work plan. Total invoices will not exceed the maximum price presented here. Optional Annual Updates (Subsequent Years, at City Approval to Proceed) The Request for Proposals indicates that the City may enter into a three-year contract, with optional provisions to extend further, which would enable ClearSource to update the Citywide Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology by December 31 of those subsequent years. At this time, ClearSource estimates the following maximum, not -to -exceed consulting fee for annual updates beyond 2019: Total Project, Annual Update: $28,800 — Citywide Indirect Cost Allocation Plan: $10,800 — Internal Service Funds Cost Allocation Methodology: $18,000 Figure 4 on the following pages illustrates the detail behind our presented maximum price for completing annual updates to the original work product delivered in 2019. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 7 25C-28 FIGURE 3 1 PROJECT FEE DETAIL, YEAR ONE (2019 ONLY) titywide Cost All�ocatwn Plan 1.1...StudyOrienCation Indirect ..............._. ...._._.___......._..._........_.........._......_............_...._.. 8 0 _...__............. ....0._..._......._...._......_..................._8......._........?...._1.200... 2 I Critical Inputs ......................................_.__... ........ _.................. .._4................_._ ..... ...... __. 12 _... _B__ 28 5 4,200 CoM Allocation Model(2 CFR 200 and Full), ........ .................-"--..___... 1................_..-_. 4 (._Reporting and Tools...._ .............._. _.. .......... _._..._..._...._ 6...._................._?..._........__._...._�........_...............,16............._. S._.. 2.... 5 1 ..�...._ Engagement ..........................._._._._..__..._......._..........................,.............._.__._..__....... 12 0 0 0 12......_........5... i 5 16,5W Intemal Sewice Funds Cost Allocation Methodology 0. ......._......_............_...._......._._.._....--_........... 0 0 _.._14............-?•- . 2,100,- 1 1_. Study orientation ......_14........_.__---... . ..................................................... 2 I.DataAnalYsis....._......_�._..._.. _._._.._.........................6....... ---..--_6......................._8........_. __....._6 _. 26 5 3,900 3 1 ._....... Revenue Requirement Forecast(81SFs)_ _20 20 .16_ _ .4 60 ......... ...._ -.. 5_.9;000. 4 1 Rate/Charge Development (81SFs) ........._32 '--_................ ......_....._. ......_18._................. 24._..._....._......_4.._................. 78 ..._......._...._.__..,... 5 11,700 5 1 ......_..... Reporting and Tools ..............._.................._......._............_............__._...._. 12 ...._20 .............._10 ........ .............._. ......_. ......, .....42..._..........._S._...6,300 61_.Engagement .......................32......._..__..........4 4 0 40 5 6,000 Grand Total Not to Exceed Fee for All Elements 158 90 100 22. 370 5 55.5M CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-29 SECTION 7 FIGURE 4 1 PROJECT FEE DETAIL, SUBSEQUENT ANNUAL UPDATE (ESTIMATED FEE PER YEAR AFTER 2019) CirVwide Indirect Cost Allocation Plan -Update 1 I _... Study Orientation —..... ...... ..... _...__._......._.._.............. `!.........._._............ 0....._,..._.._....._�.........._....._._.._4..............._5.......-600 2 1 .._...._..___....._ Criticallnpuss .................._...._........__..---..__......._..._........_........._..._..._....._...._._._......_......................,_...__......................._....................._......:....._._... 2 2 10 4 18 S 2,700 3,1 Cost Allocation. Model (2CFR260ana Full ,6 ............_......_. 10 _._.......... ................. 14 ................ 0 _........ __. 30 ................................ S _.__..___._ 4,500 _4.1.,_Reporting and Tools _....................._.__._._....._............ 6 ........... I ....... 6 .... .._.... -�---' .0 0 .,............_..........._ 12 ..........................................,._ S 1,a00 .5.j....Engagement ,...8...... ... _....... ._................. ......_0........._._...__._0.. 8 S 1,200 86 Internal 11 �...... Service Funds Cost Allocation MetNodology Study Orientation ............................__._..........._.._......................._......................_.._....___........_..........................._.__..._.....---........._........._.......__......--.--._.... - Update 6 0 0 0 6. S 900 2 Data Analysis 2 2 6 6 16 S 2,400 3I __. RevenueRequirementForecastl$ISFs) ....._. �.._....... .,........... 12 .........__..__.. 10 .10 ........ _....--- 0 ' ,32 5._„4,8W- 4 I„..Rate/Charge Development(e1SF,) 12 8 16 ....-Z......._...._........._..............?._._ 5•70. S�... Reporting and Tools..........._..............._. __.._ .................. .._4........... ...,.._....._1... ......._..........._...., ... _............... ..._.........._._...._36...._........ 5.... 2,400 6.1.....Engagement 12 ................._......................_�._....._... 12 S I'm Grand Total. Not to Exceed" Fee for All Elements 74 48 58 12 192 5 28,800 CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-30 SECTION 7 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN AGREEMENT WITH VMI, INC. FOR THE PURCHASE AND INSTALLATION OF A NEW VIDEO WALL IN THE CITY COUNCIL CHAMBERS IN THE AMOUNT NOT TO EXCEED $159,342 FOR THE PERIOD AUGUST 20, 2019 TO FEBRUARY 19, 2020 TO BE FUNDED BY PUBLIC, EDUCATIONAL, AND GOVERNMENTAL FUNDS {STRATEGIC PLAN NO. 2,3) CITY MAITAbER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with VMI, Inc. for the purchase and installation of a new video wall in the City Council Chambers in the amount not to exceed $159,342, which includes a 10% contingency for the period August 20, 2019 to February 19, 2020 to be funded with Public, Educational and Governmental funds, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On March 25, 2019 Parks, Recreation and Community Services Agency issued a Request for Proposal (RFP) for the purchase and installation of a new video wall in the City Council Chambers because the current projection device is hard to view and outdated. The new equipment will increase the viewing area, improve the viewing resolution as well as provide technological advancements, such as multiple viewing screens on the video wall. The City uses posts the RFP to solicit proposals from vendors on PlanetBids.com. One hundred and thirty-two vendors were notified, 34 vendors downloaded the documents, and six proposals were received. An evaluation committee reviewed and rated the proposals according to the criteria listed in the RFP, which includes firm/team experience, reference/relevant project experience, scope understanding, and fee. After the initial evaluation of the proposals, the top three proposers participated in an interview session with the evaluation committee. The ranking of the top three companies is as follows: 25D-1 Agreement with VMI, Inc. for Purchase and Installation of a New Video Wall in the City Council Chambers August 20, 2019 Page 2 Vendor Rankin VMI, Inc. 1 Matrix Audio Visual Designs 2 EIDIM Group 3 Based upon the proposals and interview results, the evaluation committee decided to recommend to award a contract to VMI, Inc. The vendor is the responsive proposer who was determined to be the most qualified for this project and will perform the work in a manner that is in the best interest of the City. The project will not disrupt any City Council meetings and completion is anticipated by November 2019. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #2 — Youth, Education, Recreation, Objective #3 (Expand use of technology as a tool for communication and education in the community). FISCAL IMPACT Funds are budgeted and made available in the following account for the specified year: Fiscal Accounting Fund Description Accounting Unit, Account Amount Year Unit -Account # Description FY 19-20 02113200- General Fund CATV Capital Support (PEG), $159,342 66200 Building Improvements 4;'- 5 "o?, =- Lis dlo iff- Executive Director Parks, Recreation and Community Services Agency Exhibit: 1. Agreement APPROVED AS TO FUNDS AND ACCOUNT: Kathryn Downs, CPA Executive Director -sr"`' Finance and Management Services Agency 25D-2 AGREEMENT WITH VMI, INC., FOR INSTALLATION OF VIDEO WALL IN CITY COUNCIL CHAMBERS THIS AGREEMENT is made and entered into on this 20th day of August, 2019 by and between VMI, Inc., a California Corporation, ("V n, 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 C City"). RECITALS A. The City desires to retain a consultant having special skill and knowledge in the field of purchasing and installing audio-visual equipment for the upgrade of the City's video wall in the City Council Chambers ("the project"). B. City issued Request for Proposal C RFP'� # 19-008 for the purchase and installation of a now video wall for City Council Chambers. incorporated herein by reference. City also issued Addendums No. One and Two for this RFP. Incorporated herein by reference. C. VMI was one of the companies that submitted a proposal in response to City's RFP. VMI's proposal is incorporated herein by reference. City conducted an evaluation of all of the companies that submitted proposals in response to City's RFP and VMI's proposal was selected. D, VMI represents that VMI is able and willing to provide such servicesto the City. — E. In undertaking the performance of this Agreement, VMI represents that it is knowledgeable in its field and that any services performed by VMI under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional firm in the field of audio visual equipment and installation. 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 ui ant: VMI will purchase the following equipment' from the manufacturer or an authorized retailer for use in the project: 1) One LG-SVH7EW-9P video wall package 55 inch 3 x 3 system with .44 mm bezel monitor black. Nine monitors total. 1920 x 1080+. This will include all supplied cables and required optional WM-L640V wall mounts. Needs to read the Processor 4 inputs and 12 outputs ' The parties intend that the original manufacturer warranties will be passed on to the City unless a greater warranty is agreed to by the parties and that the City va'll be in the same position (Le. privity) as if the City had purchased the equipment directly from the manufacturer itself. #2420v4 25D-3 #2420v4 2) One TV One CORIOmaster 4k multi -window 4RU video processor package with Coriographer with video wall design software, The processing system provides for 4 inputs and 12 outputs. 3) One TV One CORIOmaster C3-540 Chassis. +CM-4RPS Redundant PSU 4) Two TV One CORIOmaster CIMB72INIETIIFF HDBT 2 input & Ethernet, 5) Two TV One CORIOmaster CM1MBTSC20UT1 HDBase T2 scaled outputs and 1 Ethernet. 6) Four TV One 22111093 HD —One DX TX HDBase T HDMI video and audio extension Transmitter, Includes Tx &PSU. 7) Two TV One 2211094-02 HD -One DX RX — HDBaseT HDMI video and audio Extension Receiver, Includes RX & PSU. 8) One TV One lT-FC-766 HDMI to 30-SDI Converter. 9) (Qty Two) TV One IT-CL-322-US 16x Control Panel Wall Plate. The podium location will be in a cabinet (box)(the previse design to be determined by City and VNI) to hide the buttons when not being used. 10) Five TV One CM-DVI-ISC20UTFF Output Module with Stalling 2x DVI-I. 11) One TV One CM-4RPS-FT Redundant PSU for 4RU Series Units. 12) One TV One FE-1 On site COR10max Commissioning 2 days, 13) One link DGS-1100-24 Smart 24 port Gigabit Switch, 14) One M Atlantic BRK-2125LRD Rack with rear door, plus 9 outlets with Surge protector. 15) One Custom 3 wide x 3 high wall attached Matrix Mount using RPV Fixed Mount to hold (9) Flat panel Displays (LG 55SVH7E 55ineh) Structure to place the bottom of the image 55" AFF and place the display array through an existing rear projection opening. Final Height, position, depth, and space of opening TBD at time of order by vendor/installer. Grid Matrix to provide easy access to install and remove monitor panels during installation and future monitor replacement. Upon completion of installation, Monitor Bezel space must meet manufacturer (LG) spec of ,88 mm B to B (Bezel to Bezel) *41size, verified by Nemko. With feeler gauge measurement, The Matrix Grid should have documentation that it has earthquake resistance to meet or exceed State of California Requirement for Zone 4. Ventilation Clearance required as per manufacturer specifications. Black powder coat finish Reviewed & Approved by City's Structural Engineer. (Will require permit.) 16) Vendor must provide framing to hide the support grid, It must be conducive with the dcrcor of the council chambers and subject to review and approval by the City's Principle Engineer 17) All other required cabling, (plenum when going through ceiling), connector, adapters, hardware, equipment rack, labeling of equipment and cabling, and any other items required for a "Turnkey Installation". 25D-4 b. Installation and Integration #2420v4 1) When working at City Hall all persons will be on an approved crew list and will receive "visitor badges" to go in and out of City Hall --Council Chambers /Control room areas only, Review with City Project Manager (CPM). 2) The installation needs to be done between City Council meetings, The City project manager (CPM) will review dates with vendor and will sign off on the dates, However, pre -install can happen whenever the chamber is free. This means vendor can do some equipment deliveries, start on some of the wiring/cabling, and do other site surveys (if needed). CPM and VMI will review how to integrate the new video wall system into the existing control room system. VMI will work with City Project Manager/AV Engineer to develop installation plan and CPM will sign off on that installation plan. 3) Prior to Installation. CPM will review video wall height and exact location for mount. It is that electrical power will have been tested and will be provided for all equipment. This install is a low -voltage install only. The removal of the old projector will be done by the City. New video wall will replace old video projector in the same location. The black room behind the projector screen is available for all processing equipment. The City Principle Engineer will inspect, 4) VMI will remove old projector glass and a sound muffling or sound resistant wood frame door barrier installed in its place. VMI will install all new interconnect cables (including power) running through the opened area between the accordion wood doors. When installation is complete, in place of the old projector glass, will be plywood panels covered with acoustical foam and cloth. The accordion doors can and probably will be removed. VMI can with City approval, cut into or drill holes into existing paneling, as long as, the holes do not show upon project completion. The completed project must be framed with a fagade or veneer to hide the grid, wires, etc„ and make it conducive to the d6cor of the rest of the council chambers. 5) Installation will require climbing and pulling cable through the ceiling. CPM will show VMI the access points and conduit locations. VMI will provide a simple block drawing showing "ins and outs" for the new equipment. VMI will he required to provide a number code and description for cabling if longer than 12". 6) The podium PowerPoint computer will feed into the video wall system with HDMI cabling and 1080 +resolution. The control panel for basic operation of the video wall will be located at the podium area. Another control panel for the video wall will be located in the video master control room (master control panel.) with all operations. In addition, the system will have remote access on the Internet. 7) The processor must have at least four inputs available. Different formats will be available: HDMI, SDI, and DVI. If all of the formats are not available on the processor, VMI will provide conveners. (Blackmagio Design). Each input can be full screen on all monitor panels; or select as any combination of one, two, or more on each monitors; or even less than one monitor or more than one (ie, 1 %a monitors) for the outputs. There should be 12 outputs available, 9 for the video wall and 3 extra runs available for future locations. 25D-5 8) Everything will be tested and demonstrated to CPM for performance. -1�inrkey" is the requirement. 9) If required bylaw, VMI will be responsible for applying for a City building permit for the installation. c. Training and Integration 1) CPM will be the primary person trained on all operations. A four-hour training session will be held before the first council meeting, currently scheduled for October 1, 2019 or thereafter, on a date agreed upon by the CPM. 2) If it is determined that the system does not meet all of the requirements of the RPP and its two Addendums, VMI will have 6 days to correct the System or add additional equipment. 3) VMI's Project Manager or his/her staff will attend the first City Council Meeting, scheduled currently for October 1, 2019 but subject to change, after installation is complete. This person will only be required to attend an hour before the council meeting begins and one hour after it has started as part of the proof of performance (System Acceptance Test). d. Warranties #2420v4 1) The warranty and support period shall begin after the System Acceptance Test. All necessary repairs shall be diagnosed by VMI within 48 hours of notification by City personnel. All warranty replacement items must be delivered via overnight shipping. Although CPM will be trained in the maintenance of the video system, labor for installation and warranty replacements shall be provided by VMI. 2) The overall labor for (comprehensive) installation will be warranted from the completion of installation for a period of 120 days. If during the 120 days, the CPM determines there is a problem with the installation. VMI will come out for free to correct the problem(s), 3) Free telephone technical support/ and /or instruction of operation will be provided for a period of 3 years (36 months). 4) The LG monitor panels shall come with a 5-year, 48-hour gulch swap (white 9-love) warranty replacement. This means that VMI, upon notice of a defective monitor from City staff, will, within 48-hours of notification by the City, remove and dispose of defective monitor, replace, install, calibrate, test and align a new monitor (same model) for a period of S -years. 5) TV One CORIOmaster products come with factory warranty for replacement or repair for a period of 5 years from the date of purchase. 6) The custom support matrix grid system shall also come with a warranty of 5 years. Not to shift, sag, bend, lean, buckle with mm tolerances. Not to crack the monitors. To keep the Bezel gap to monitor factory spee..88 mm bezel to bezel gap between monitors (we will check it), if during the 5-year warranty period a defect is determined or performance does not meet the specification required, VMI or factory manufacturer will repair and/or replace free of 25D-6 charge. e. Estimated Project Milestones (Subject to Chanae based on Availability of Council Chambers Date Tas Com leted First Week of September Remove glass, pre -install, cabling Second Week of September Install frame and panels 'third Week of September Integration RPV to TV One Third Week of September TV One Commissionin Fourth Week of September Tes#qg and Proof of Performance Fourth Week of September Orientation and Trainjn Next Council Meeting After Completion VMI to attend City Council meeting 2. COMPENSATION a. City agrees to pay, and VMI agrees to accept as total payment for its services for City, the rates and charges identified in Compensation - Exhibit A. The total amount of compensation paid pursuant to this Agreement shall not exceed one hundred and forty-four thousand dollars and eight hundred and fifty-five dollars and fifty-eight cents ($144,855.58), plus 10% ($14,486-.56) for a contingency to be used at the City's sole discretion for unanticipated expenses. The total agreement amount shall not exceed $159,342,14. during the term of this Agreement. b. Progress payments shall be made on this project as follows; Date Percentage of Total Amount Agreement At start of work 25% $36 213.90 After TC One Commissioning 25% $36 13.90 Completion of project 50010 $72,427.78 + any portion of the contingency utilized by the City, c. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work, which fails to moot the standards of performance set forth in the Recitals, which may reasonablybe expected by City. kid Y s i T!I This Agreement shall commence on the date first written above for a term of six months , unless terminated earlier in accordance with Section 15, below. The term of the Agreement can #2420v4 25D-7 be extended by a writing signed by the City Manager and the City Attorney, 4. INDEPENDENT CONTRACTOR VMI shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which VMI performs the services which are the subject matter.of this Agreement; however, the services to be provided by VMI shall be provided in a manner consistent with all applicable standards and regulations governing such services. VMI shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. S. INSURANCE Prior to undertaking performance of work under this Agreement, VMI shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. VMI shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of VMI19 operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles, c. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, VMI, if VMI has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, VMI agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If VMI is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. #2420v4 25D-8 e. The following requirements apply to the insurance to be provided by VMI pursuant to this section, i. VMI shall maintain all insurance required above in fall force and effect for the entire period covered by this Agreement. ii. Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. iii. Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. iv. Where the amounts or coverage provided by the certificates of insurance provides coverage greater than those listed by this Agreement, the amounts provided by the certificates of insurance shall be incorporated by reference into the Agreement. v, VMI shall supply City with it fully executed additional insured endorsement. £ If VMI fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect VMI's right to be paid for its time and materials expended prior to notification of termination. VMI waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 6. MEMIVMCATION VMI agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability; (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the VMI, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable 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. Tho VMI further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief duo 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 VMI's services are subject to Civil Code Section 2782.8, the above #2420v4 25D-9 indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the VMI. 7. Mi GERPRINTS AND BACKGROUND CHECK Provider, and any employees, subcontractors or substitutes, shall arrange for and submit their fingerprints for it criminal background check through the Department of Justice through the City's Human Resources Department process. VMI shall be responsible for all charges associated with fingerprinting. VMI shall not perform any services pursuant to this Agreement until clearance is received and VMI is notified by the City's Parks, Recreation and Community Services Department. 8. PREVAILING WAGE VMI is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and `hmintenance" projects. if the services being performed are part of an applicable `public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, VIvII agrees to fully comply with such Prevailing Wage Laws. VMI shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 9. COMMUNITY WORKFORCE AGREEMENT On August 15, 2017, the Santa Ana City Council approved a Community Workforce Agreement with the Los Angeles/Orange Counties 13uilding and Construction Trade Council and the Signatory Craft Councils and Unions. The provisions of the agreement would apply to all construction and major rehabilitation work pursuant to `Prime Multi -Trade" construction contracts that exceed $250,000 and all subcontracts from these prime multi -trade contracts. The agreement also applies to all "Prime Specialty" contracts (single trade contracts) that exceed $100,000 and all subcontracts from these prime specialty contracts. Specialty contracts are contracts for project work with a specialty contractor which is either limited to a particular single trade or craft or limited to a singular scope of work, Contractors working on projects over the above thresholds must, in filling craft job requirements, utilize and be bound by the registration facilities and referral systems established and authorized by the Unions who are signatory to the agreement, This is commonly referred to a Union hiring hall. Contractors retain the right to reject any applicant referred to them through the job referral system, determine competency of all employees, to determine the number of employees required, and the duties of such employees. If any Union's registration and referral system does not fulfill #2420v4 25D-10 the requirements for specific classifications requested by any Contractor within 48 hours, the Contractor may employ applicants meeting such classifications from any other available source. 10. RECORDS VMI shall keep records and invoices in connection with the work to be performed under this Agreement. VW shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to VMI under this Agreement All such records and invoices shall be clearly identifiable. VMI shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. VMI shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to VMI under this Agreement. 11. CONFIDENTIALITY If VMI receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, VMI agrees 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 importance, but in no event less than reasonable care. "Confidential Information" shall 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 VMI disclosed in a publicly available source; (c) is in rightful possession of the VMI without an obligation of confidentiality, (d) is required to be disclosed by operation of law; or (e) is independently developed by the VMI without reference to information disclosed by the City. 12. CONFLICT OF INTEREST CLAUSE VIvII covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. NON-DISCRIMINATION VMI shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities, VMI affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. i/2420v4 25D-11 14. EXCLUSIVPI'Y AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and VMI, 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 VW. 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 VMI or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein. 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of VMI, VMI may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other VMIs retained by City. 16. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, VMI shall be entitled to receive and the City shall pay VMI compensation for all services performed by VMI prior to receipt of such notice of termination, subject to the following conditions; a. As a condition of such payment, the Executive Director may require VMI to deliver to the City all work product(s) completed as of such date or equipment purchased by VMI for use in this project, and in such case such work product shall be the property of the City unless prohibited by law, and VW consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 17. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. #2420v4 25D-12 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 VMI shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. VMI shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 20. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To -City:. Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax; 71,4- 647-6956 With courtesy copies to: Executive Director, Parks, Recreation and Community Services Agency City of Santa Ana 20 Civic Center Plaza (M-23) P.O. Box 1988 Santa Ana, California 92702 Fax:714-647-4211 To VMI: John O'Donovan, Account Manager VMI Inc. 11258 Monarch St. Unit A Garden Grove, CA 92481 Fax:714-894-6100 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702 Fax:714-647-6515 pma;,.; a n,.,a.n .a, aP-25D-13 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 flew address. if sent by mail, communication shall be effective or deemed to have been given three (5) days after it has been deposited in the United Statesmail, duly registered or certified, with postage Prepaid, and addressed m set forth above. If sent by fax, communication shall be effective or deemed to have bow 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 "eluded. 21. 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 attomey's fees, for any injuries or damages to City in the event that such authority or power is not, is 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 fast above written. ATTEST: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney r Laura A. Rossini Senior Assistant City Attorney RECOMMENDED FOR APPROVAL; Lisa Rudloff Executive Director Parke, Rebreation and Community Services Agency #2420v4 CITY OF SANTA ANA Kristine Ridge City Manager ►J=Tii�, 25D-14 FEES/CHARGES 25D-15 EXHIBIT A 16791CITYSAN.xis Page 1 of 2 �IY1I BROAnCA87AA� PRnFES3IDNALylouo VVWW-V=deo,c0m 11238 Monarch West Unit Garden Greva, CA 02841 •714.894.6100 fax 714,804,6110 Date: 5/8119 QUOte # 16797 To: City of Santa Ana (Account Code: CITYSAN) 20 Chic Center Plaza Santa Ana CA 02701 Attn: Frank Arroyo Phone: 714-671r1213 From: John O'Donovan Re: 0 LG 56SVH7EW-9P WHO (imii-CD Penal 4400.00 39800.00 9 LO 5 YR TTL Term Co98m90 W148HR quick Swap 750.00 6750.00 & White -stove (55" Video Wall) 1 TVOne C3.540 CORIOmaetor Chassis 13025.09 13525.00 1NOne CM-4RP8 RedundanIPSV1or4RUSerlasUnits 465,00 465.00 2TVOne CM4IDBT-21N-1ETHCORIOmoduloHDBT24nput&Ethernet 1415,00 2830.00 2 7VOne CMHDSTSC20UT1EHDB8se7 2eceled outputs and 1 Ethemet 2505.00 5010.00 5 TVOne CM-OVId3C-20UT Output Module with Scaling: 2x DWI 2090.00 10450.00 4'IVOne HO.OneOXTX HD-Ona DX Transmitter 200.00 800.00 2 TVOne HD -One DX RX HD -One OX Receiver 200.00 400.00 2 TVOne IT-CL-322-US 16bu6an wall mount control panel 326.00 650.00 1TVorta IT-FC-760 HOMIV1.3to3GMOMC-8OIConverter 280.00 280.00 2 TVOne FE-1 On olte CORIOmax Commissloning -1 Day 3750,00 7500.00 1 Link DGS-1108-24 SmaM Managed 24-Pon Olgabit switch 145A0 145.00 1 RPV RPMMPSWWA3x3 custom 3w x ah wall Attached Visual Structure 10620.00 10625.00 to hold (9) LO 66- Panels using Sv ng Mount 1 RPV RPMM-P-OT.CL Slack Commercial Grade Finish Cladding, 4100.00 410tim Perimeter. Cladding to have visible seems and fasteners and must he removed before the swing mounts can be aceessad, 1 M Atlantic ERK-2125LRD ERK Series Rack, 21 RU, 2500, Vo Rear Door 500.00 500.00 Rackmount Power, 0 Outot, 15A, Basic 6urg0 1 M18o Cables, connectore, hardware 3000.00 3000.00 1 VMI Drawings Engineering drawing and engineering apace 6000.00 6000.00 to meet currant building codes and earlhgmke zone 4 requirements. 1 VMI Installation, Integration, project management 26000.00 25000.00 Including meet with City of Santa Ana staff to conduct Introduction, diseues scope Of emVlces, coordinate delivery and staging of 25D-16 EXHIBIT A 16791CITYSAN.1ds equipment, Implementation process, unpack and stage mounting systems, assemble support frame and mounting structure, mount and align fist panel display cabinets social with cabling for power and run cabling for signal feeds, Integrals and commission processing gear and attend the first Council bleating as proof of performance. Tax ra0sols Celifomia Teloproductlon Sales Tar Credit per bid does. Taxable Non Taxable Shipping Sub Total Tax TOTAL NOTES: Certified CA Small 13usIness Supplierd1130920 Contractor License A989912 California State ElectroNe Waste Raeyellne Foe will be charged on all monitors. DIR:1000024698 John O'Donovan VMI, Inc: Jodonovan@vrnMdeo.com page 2 of 2 137030.00 137630.00 5.25% 7225.59 144850.68 25D-17 25D-18 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE LICENSE AGREEMENT AMENDMENT WITH MATCH POINT TENNIS ACADEMY, LLC FOR THE MANAGEMENT AND OPERATION OF CABRILLO TENNIS CENTER AND TO RECEIVE THE AMOUNT OF $4,000 PER MONTH FOR A MONTH -TO - MONTH TERM STARTING SEPTEMBER 5, 2019 TO DECEMBER 31, 2019 TO BE DEPOSITED IN THE GENERAL FUND (STRATEGIC PLAN NO. 2, 1) CITY NTANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1sl Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a license agreement amendment with Match Point Tennis Academy for the management and operation of Cabrillo Tennis Center and the City to receive the amount of $4,000 per month for a month -to -month term starting September 5, 2019 until December 31, 2019, to be deposited in the General Fund, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Parks, Recreation and Community Services Agency (PRCSA) is in the process of issuing a Request for Proposal (RFP) for the operation of the Cabrillo Tennis Center. The PRCSA has reviewed the existing scope of the agreement and is modifying the Operator's responsibilities to include the operation, maintenance, management, and construction of two -clay tennis courts. The modification will allow the operator to control and utilize the entire site for their operations. In exchange for the substantial investment by the operator, there is a long-term license agreement to help recover the return on their investment. In preparation of the RFP, it will require an amendment to the existing license agreement to provide for a month -to -month term until the City finalizes this process. The City anticipates that a proposed License Agreement will be presented to the City Council no later than the December 2019. 25E-1 Agreement Amendment with Match Point Tennis Academy, LLC for the Management and Operation of the Cabrillo Tennis Center August 20, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #2 — Youth, Education, Recreation, Objective #1 (Ensure coordination among organizations service Santa Ana's youth to optimize programs). FISCAL IMPACT The City anticipates the Request for Proposal to be completed in December, but anticipates that a couple of months will be needed to transition and therefore six months of revenue is projected to be deposited in the following account for the specified year: Fiscal Accounting Fund Accounting Unit, Account Amount Year Unit -Account# Description Descri tion FY 19-20 01113002- General Fund PRCSA-Tennis Reservations $16,000 53318 Li Rudloff Executive Director Parks, Recreation and Community Services Agency APPROVED AS TO FUNDS AND ACCOUNT: 164�� " Kathryn Downs, CPA Executive Director am Finance and Management Services Agency Exhibit: 1. First Amendment to Concession Agreement for Management, Operation and Maintenance of Cabrillo Tennis Center 25E-2 EXHIBIT 1 FIRST AMENDMENT TO CONCESSION AGREEMENT FOR MANAGEMENT, OPERATION AND MAINTENANCE OF CABRILLO TENNIS CENTER THIS FIRST AMENDMENT to the above -referenced Agreement is entered into on August 20, 2019, by and between Match Point Tennis Academy, LLC, a California Limited Liability Company ("Match Point"), 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-2018-205 dated September 4, 2018 to provide for the management operation, maintenance and concessions by Match Point at the City's Cabrillo Tennis Center ("Agreement"). B. The parties wish to amend the Agreement to provide for a month -to -month term starting September 5;-2019 until December-3 1—,2019. The Parties therefore agree: 1. Section 2, TERM, of the Agreement is amended to provide that as of September 5, 2019, the Agreement term will be month -to -month until December 31, 2019, unless terminated earlier pursuant to the terns of the original Agreement. 2. Except as modified by this First Amendment, all terms and conditions of the Agreement as amended shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney LAURA A. ROSSINI Senior Assistant City Attorney [Signatures continue on the next page] #4999v1 CITY OF SANTA ANA KRISTINE RIDGE City Manager MATCH POINT TENNIS ACADEMY, LLC. 25E-3 EXHIBIT 7 RECOMMENDED FOR APPROVAL LISA RUDLOFF Executive Director, Parks, Recreation and Community Services Agency [First Amendment -Match Point Tennis Academy, LLC.] tt4999v1 25E-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVAL OF A HISTORIC PROPERTY PRESERVATION AGREEMENT - 2112 NORTH FLOWER STREET (STRATEGIC PLAN NOS. 5, 2; 5, 3) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 09=• 0 ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreement with the below -referenced property owners for the identified structures, subject to non - substantive changes approved by the City Manager and City Attorney. Historic Property Property Owner(s) Preservation Address/House Vote by HRC Agreement No. Khanh B. Nguyen and 2019-01 2112 North Flower Street 8.0 Chinh K. Do Ramos absent HISTORIC RESOURCES COMMISSION ACTION On July 11, 2019, the Historic Resources Commission (HRC) recommended that the City Council authorize the City Manager and Clerk of the Council to execute the above referenced Mills Act agreement (Exhibit 1) with the identified property owners for the historic structures, subject to non -substantive changes approved by the City Manager and City Attorney. This action allows for the approval of a Historic Property Preservation Agreement (Mills Act Contract), which provides a potential property tax reduction whereby property owners agree to reinvest the tax savings towards the maintenance of the historic property. Additionally, the agreement prevents inappropriate alterations to protect the historic structure(s). The historic structure(s) under consideration for approval of a Mills Act Contract includes the following: 25F-1 Historic Property Preservation Agreements August 20, 2019 Page 2 The Wright -Tiernan House — An existing two-story Spanish Colonial Revival style residence that is approximately 3,301 square feet on an 13,100-square-foot residential lot. The home was added to the Santa Ana Register of Historical Properties in 2005 and categorized as "Landmark." The details of the property and structure(s) are as described in the attached HRC staff report dated July 11, 2019 (Exhibit 2). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed project is exempt from further review. Categorical Exemption ER No. ER-2019-42 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 $879.02 annually noted below, for a period of not less than ten years. HPPA No. I Address Estimate 2019-01 2112 North Flower Street $879.02 Total: $879.02 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for conservation and environmental sustainability) and Objective #3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). Minh Thai Executive Director Planning and Building Agency PG:Ia S:RFCA\8-20-19\PBA Historic Prop Preservation Mills Act Agmt 8-20-19 APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs, CPA Executive Director Tv^' Finance and Management Services Agency Exhibits: 1. Mills Act Agreement — 2112 North Flower Street 2. Historic Resources Commission Staff Report — July 11, 2019 25F-2 EXHIBIT 1 MILLS ACT AGREEMENT 2112 North Flower Street Santa Ana, CA 92706 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 Khanh B. Nguyen and Chinh K. Do Trustees of the Khanh B. Nguyen and Chinh K. Do Revocable Trust Dated January 16, 2019, (hereinafter collectively referred to as "Owner"), owners of real property located at 2112 North Flower 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 2112 North Flower Street, 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. -I- 25F-3 MILLS ACTAGREEMENT 2111 North Flower Street 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 August 7, 2019, 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 "Historical Property Description" attached hereto, marked 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- 25F-4 MILLSACTAGREEMENT 2112 North Flower Street Santa Ana, CA 92706 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. 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 ''/2) percent by Government Code Section 50286) of the current fair market value of the property at the time of -3- 25F-5 MILLS ACTAGREEMENT 2112 North Flower Street Santa Ana, CA 92706 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 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 2112 North Flower Street, Assessor Parcel Number, 001-201-09, 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 •4- 25F-6 M/LLSACTAGREEMENT 2112 North Flower Street Sour Anr, CA 92706 regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. S. 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: Clerk of the Council Owners: Khanh B. Nguyen and Chinh K. Do Revocable Trust Dated January 16, 2019 2112 North Flower Street Santa Ana, CA 92706 10. Genera! 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 anyjoint 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. -5- 25F-7 MILLSACTAGREEMENT 1111 North Flower Street Santa Ana, CA 91706 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. C. 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. 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) -6- 25F-8 ATTEST: MILLSACTACREEMENT 2112 North Flower Street Santa Ana, CA 92706 CITY OF SANTA ANA DAISY GOMEZ KRISTINE RIDGE Clerk of the Council City Manager OWNER Date: By: KHANH B. NGUYEN Trustee of Khanh B. Nguyen and Chinh K. Do Revocable Trust Dated January 16, 2019 Date: By: CHINH K. DO Trustee of Khanh B. Nguyen and Chinh K. Do Revocable Trust Dated January 16, 2019 APPROVED AS TO FORM: RECOMMENDED FOR APPROVAL: SONIA CARVALHO City AttogLy By: RYA O. G MINH THAI AssistanC ty Attey Executive Director Planning and Building Agency -7- 25F-9 MILLSACTAGREEMENT 2112 North Flower Street Santa Ana, CA 92706 EXHIBIT A LEGAL DESCRIPTION THAT PORTION OF BLOCK "H" OF TRACT 41, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK PAGE 48 OF MISCELLANEOUS MAPS, RECORDS OF SAID ORANGE COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE POINT OF INTERSECTION OF THE SOUTH LINE OF SAID BLOCK "H" WITH THE WEST LINE OF THAT CERTAIN TRACT OF LAND CONVEYED TO THE CITY OF SANTA ANA FOR STREET PURPOSES BY W.F. GREENLEAF AND OTHERS BY DEED RECORDED JANUARY 27, 1928, IN BOOK 625, PAGE 296 OF DEEDS, RECORDS OF ORANGE COUNTY, CALIFORNIA, THENCE NORTH ALONG THE WEST LINE OF SAID TRACT OF LAND SO CONVEYED TO THE CITY OF SANTA ANA, A DISTANCE OF 80 FEET TO A POINT; THENCE WEST IN A STRAIGHT LINE TO AN INTERSECTION WITH A LINE DRAWN PARALLEL WITH, AND 164 FEET WEST FROM THE WEST LINE OF SAID TRACT OF LAND SO CONVEYED TO THE CITY OF SANTA ANA AT A POINT 80 FEET NORTHERLY, MEASURED ALONG SAID PARALLELL FROM THE SAID SOUTH SAID BLOCK "H'; THENCE SOUTH ALONG SAID PARALELL WITH THE WEST LINE OF SAID TRACT OF LAND CONVEYED TO THE CITY OF SANTA ANA TO THE SOUTH LINE OF SAID BLOCK "H", AND THENCE EAST ALONG SAID SOUTH LINE TO THE POINT OF BEGINNING. Assessor's Parcel Number: 001-201-09 -8- 25F-10 EXHIBIT 2 REQUEST FOR Historic Resources Commission Action •r:rrn Pam` 4 •-� •0.• D-N'. 11.E-� '� •- JULY 11, 2019 TITLE: HISTORIC PROPERTY PRESERVATION AGREEMENT NO.2019-01 (MILLS ACT) FOR THE PROPERTY LOCATED AT 2112 NORTH FLOWER STREET (STRATEGIC PLAN NOS. 5, 2; 5,3) APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For CONTINUED TO Prepared by Pedro Gomez Executive Director Planning Man ger RECOMMENDED ACTION Recommend that the City Council authorize the City Manager and Clerk of the Council to execute a Historic Property Preservation Agreement (Mills Act) with Khanh B. Nguyen and Chinh K. Do for the property located at 2112 North Flower Street, subject to non -substantive changes approved by the City Manager and City Attorney (Exhibit 1). Request of Applicant Khanh B. Nguyen and Chinh K. Do, trustees of the Khanh B. Nguyen and Chinh K. Do Revocable Trust dated January 16, 2019, are requesting approval to execute a Mills Act Agreement with the City of Santa Ana at an existing residence located at 2112 North Flower Street that is currently listed on the Santa Ana Register of Historical Properties. Prolect Location and Site Description The subject property, known as the Wright-Tieman House, consists of an existing two-story Spanish Colonial Revival style residence that is approximately 3,301 square feet in size on an 13,100-square- foot residential lot (Exhibit 2). The home was added to the Santa Ana Register of Historical Properties in 2005 and categorized as "Landmark." Analysis of the Issues 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. The property is listed on the Santa Ana Register of Historical Properties and categorized as Landmark, making it eligible for a Mills Act agreement. 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 25F111 HPPA No. 2019-01 July 11, 2019 Page 2 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 • Allows for a mechanism to provide for property rehabilitation • Provides additional incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property In 2005, the Historic Resources Commission placed the Wright-Tieman House on the historical register and within the Landmark category. Character -defining features of the Wright -Tiernan House determined architecturally significant included: materials and finishes (stucco, tile, wood, wrought iron); roof configuration and detailing; massing; windows and doors; arcade; chimney; porte-cochere; balconies and porches; and architectural details (such as the brackets, impost moldings, attic vent, wrought iron features, etc.). The Wright -Tiernan House qualified for listing under Criterion 1 of Sec. 30-2, of the Santa Ana Municipal Code (SAMC), in that It embodied the "distinguishing characteristics of an architectural style or period." Additionally, the house was categorized as Landmark for its 'unique architectural significance' as a well -articulated example of the Spanish Colonial Revival style popular during the 1920s and 1930s in Santa Ana. 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. CEQA Compliance In accordance with the California Environmental Quality Act, the recommended action is exempt from further review under Section 15331, Class 31, as this action Is designed to preserve a historic resource. Categorical Exemption No. ER-2019-42 will be filed for this project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability, Engagement & Sustainabiliy, Objective No. 2 (expand opportunities for conservation and environmental sustainability) and Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). PG:sb SAHistoric Resources Commisslon12011A07.11-I IA2112 N Flower Streetl Staff Report - 2112 N Flower StreeLdoc 2W-12 HPPA No. 2019-01 July 11, 2019 Page 3 Exhibits 1 -Mills Act Agreement 2 - 500' Radius Map 3 - Site Photos - 2112 N. Flower Street 25F--43 EXHIBIT 1 214 MILLSACTAGRBEMENT 2112 North Flower Street Santa Ana, CA 92706 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Cleric 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 Khanh B. Nguyen and Chinh K Do Trustees of the Khanh B. Nguyen and Chinh K. Do Revocable Trust Dated January 16, 2019, (hereinafter collectively referred to as "Owner', owners of real property located at 2112 North Flower 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 Acn 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 2112 North Flower Street, 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, now building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. -1- 25FA5 MILLS AGT AGREEMENT 2112 North Flower Street Santa Ana, CA 92706 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. 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. 4. Furnishing of Information. The Owner hereby agrees to fumish 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 ISIM 2&6-16 MILLSACTAGREEMENT 2112 North Flower Street Santa Ana, CA 92706 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. 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: Clerk of the Council Owners: Khanh B. Nguyen and Chinh K. Do Revocable Trust Dated January 16, 2019 2112 North Flower Sheet 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. M 251c-T7 ATTEST: DAISY GOMEZ CLERK OF THE COUNCIL Date: Date: APPROVED AS TO FORM: SONIA CARVALHO City Attorney By: LISA STORCK Assistant City Attorney -7- MH-UACTACREEMENT 2112 North Flower Street Santa Ana, CA92706 CITY OF SANTA ANA KRISTINE RIDGE City Manager By: KHANH B. NGUYEN Trustee of Khanh B. Nguyen and Chinh K. Do Revocable Trust Dated January 16, 2019 By: CHINH K. DO Trustee of Khanh B. Nguyen and Chinh K. Do Revocable Trust Dated January 16, 2019 RECOMMENDED FOR APPROVAL: MINH THAI Executive Director Planning and Building Agency EXECUTIVE SUMMARY WRIGHT-TIERNAN HOUSE 2112 North Flower Street Santa Ana, CA 92701 NAME Wright -Tiernan House REF. NO. ADDRESS 2112 North Flower Street CITY Santa Ana ZIP 1 92701 ORANGE COUNTY YEARBUILT 1934 LOCAL REGISTER CATEGORY: Landmark HISTORIC DISTRICT I N/A NEIGHBORHOOD I WestFlomlPark CALIFORDIIA REOISTER CRITERIA FOR EVALUATION 3 CALIFORNIA REGISTER STATUS CODE SSl Location: ❑ Not for Publication. ® Unrestricted ❑ Prehistoric ® Historic ❑ Both ARCEMCTURAL STYLE: Missfon/Spanisb Colonial Revival The Mission/Spanish Colonial Revival style, as its name implies, encompasses two major subcategories. The Mission Revival vocabulary, popular between 1590 and 1920, drew its inspiration from the missions of the Southwest. Identifying features include curved parapets (or aspadorld); red tiled roofs and coping; low-pitched roofs, often with overhanging eaves; porch roofs supported by large, square piers; arches; and wall surfaces commonly covered in smooth stucco. The Spanish Colonial Revival flourished between 1915 and 1940, reaching its apex during the 1920a and 1930s. The movement received widespread attention after the Panama- hllfornia Exposition in San Diego In 1915, where lavish interpretations of Spanish and Mexican prototypes were showcased. Easily .-ognizable hallmarks of the Spanish Colonial Revival are low-pitched roofs, usually with little or no overhangs and red the roof coverings, flat roofs surrounded by tiled parapets; and stuccoed walls. The Spanish vocabulary also includes arches; asymmetry; balconies and patios; window grilles; and decorative elements ofwood, wrought iron, tile, or stone. SUMMARY/CONCLUSION- Il e Wright-Tieman House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1, as a structure with the distinguishing characteristics of an architectural style orperiod, the Spanish Colonial Revival. Additionally, the house has been categorized as "Landmark" for its "unique architechualsignificance" as a well -articulated example of the Spanish Colonial Revival style popular during the 1920s and 19308 in Santa Ana'(Municipal Code, Section 30-2.2). EXPLANAIVION OF CODES: • California Register Criteria for Evaluation: (From California Office of Historic Preservation, Technical Assistance Series # 7, "slow 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. - California Register Status Code: (From California Office of Historic Preservation, December S, 2003.) 5S1 t Individual property that is listed or designated locally. Exhibit B �i_U _ 01 hate of California —The Resources Agency Primary # )EPAR7tNENT OF PARKS AND RECREATION HRI# ' WILDING;: STRUCTURE, A14448JEGT RECE)F�D` )age 2 of 3 •CHR Status Code_5S1 ,mwww.,c name vl ni YYIIFr1I{•IIB//Itl/I rrpUSe Bi. Hlstpric Name: Wdght-Tiernan House B2. Common Name: Same B3. Original Use: Single-family Residence B4. Present Use: Single-family Residence *85. Architectural Style: Spanish Colonial Revival •B6. Constructlon History: (Construction date, alterations, and date of alterations): Constructed In 1934, April24, 1934. Residence and garage. June 2, 1958, Room addition. Apol29, 1985. Solardomestichot watersystem. •B7. Moved? WNo 13Yes MUnknown Date: Or)ginel Locatlon: 'B6. Related Features: Garage. Ms. Architect: Unknown b. Builder: Unknown 'B10.Significance: Theme ResldentlalArchltecture Area Santa Ana Period of Significance: circa 1895.1965 Property Type: Single-family Residence Applicable Criteria: NR: C; CR: 3 (Discuss importance In terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Wright -Tiernan House Is architecturally signl8cant as a fine example of large, Spanish Colonial Revival home. it was built In 1934, In the middle of the Great Depression, for Maxwell Wright for a reported cost of $7,500. Wright, a furrier, and his wife Olive occupied the house unkT 1038. R. Arthur Tiernan, who operated the R. A. Tiernan Typewriter Company on Fourth Street and his wife Juliette, were the next residents of the house. (See Continuation Sheet of3.) Bit. Additional Resource Attributes: (ust attrmutes and codes) `B12. References: City of Sande Ana Building Permits Santa Ana History Room Collection, Santa Ana Public Library Sanborn Maps (See Continuation Sheet 3 of3) B13. Remarks: '614. Evaluator: LesBe J. Neumann *Date of Evaluation: Aprll25, 2006 (This space reserved for offloW comments.) DPR 523B (1/e5) Sketch Map O O O O Wright-7)eman N + !louse t O Q 2112 N. Flower St. a O 9 + ® C� axxr a ,m yc • »O ®fS1 Y C h• n l 'Required information I rI,:� - ' I, MHLLSACTAGREEMENT 2112 North Flower Street 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: 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, an such design is compatible with -1- 29P-M1 EXHIBIT 2 2910222 EXHIBIT 3 2 0-424 T nbs FFir++ I y HPPA-2019-01 WRIGHT-TIERNAN HOUSE 2112 NORTH FLOWER STREET SITE PHOTOS EXHIBIT 3 r This page left blank intentionally. 25F-26 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN AGREEMENT WITH FIESTA DE CARNIVAL FOR CARNIVAL SERVICE RIGHTS FOR THE FIESTAS PATRIAS 2019 EVENT AND THE CITY TO RECEIVE 25% OF TOTAL REVENUE SALES TO BE DEPOSITED IN THE GENERAL FUND (STRATEGIC PLAN NO. 5, 5) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on ls' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with International Promotions, Inc. doing business as Fiesta de Carnival for carnival services rights for the Fiestas Patrias 2019 event and the City to receive 25% of total revenue sales deposited in the General Fund, for a term starting August 20, 2019 through November 30, 2019, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The annual Fiestas Patrias event is a positive event for the City and its residents. This event not only attracts thousands of Santa Ana residents, but also attracts visitors from all over Orange County. The purpose of this event is to celebrate Fiestas Patrias through a safe family -friendly event that includes live entertainment, food booths, informational booths, merchandise/service booths, cultural exhibits and carnival rides/games over a two-day weekend. The 41st Annual Fiestas Patrias will take place on September 14 and September 15, 2019. The City of Santa Ana is proposing to enter into an agreement with Fiesta de Carnival to provide a two-day carnival at the event as they have provided these services at park carnival events for the City in the past to the satisfaction of the City. Fiesta de Carnival will be responsible for providing all the equipment, carnival rides and games, and clean-up for the carnival. In consideration for providing these exclusive rights to Fiesta de Carnival, the City will receive 25% of total revenue sales for the event, estimated at $5,000-$7,500. Fiesta de Carnival will be obligated to obtain all necessary licenses, permits, approvals, and waivers. 25G-1 Agreement with Fiesta de Carnival for Carnival Service Rights for the Fiesta Patrias 2019 Event August 20, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #5 (Promote a strong arts and culture infrastructure). FISCAL IMPACT Funds will be deposited in the following account for the specified year: Fiscal Accounting Fund Accounting Unit, Amount Year Unit -Account # Description Account Description FY 19-20 01113002- General PRCSA - City Events Estimate 53331 Fund $5,000-$7,500 LkaOudloff E.Yecutive Parks, Recreation and Community Services Agency Exhibit: 1. Agreement APPROVED AS TO FUNDS AND ACCOUNT: Kathryn Downs, CPA Executive Director J"" Finance and Management Services Agency 25G-2 AGREEMENT FOR CARNIVAL SERVICES FOR FIESTAS PATRIAS 2019 THIS AGREEMENT is made and entered into this 20th day of August, 2019 by and between International Promotions, Inc., a California Corporation doing business as Fiesta de Carnival (hereinafter "Provider"), 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 (hereinafter "City"). RECITALS A. City holds the Fiestas Patrias event annually for the community. City desires a vendor to provide carnival services for the City's Fiestas Patrias event scheduled for September 14-September 15, 2019. B. Provider represents that it is knowledgeable and experienced in the field of providing carnival services. Provider also represents that services performed by Provider under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional company 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 Provider will provide carnival services for the City's 2019 Fiestas Patrias Festival ("Festival" or "Event") on Saturday September 14, 2019 from 12:00 p.m. -11:00 p.m. and Sunday September 15, 2019 from 12:00 p.m. —10:00 p.m. Provider's duties include: #6302v1 A. SPECIAL EVENT PERMIT REQUIREMENTS — Provider shall submit all required special event materials and approvals to the Special Events Office no later than Friday August 30, 2019 unless otherwise indicated. Materials and approvals include, but are not limited to, the following: 1) Carnival site plan: Site plan must include, but is not limited, to the following: description, size, quantity and location of rides, game booths, food booths, vendor booth(s), ticket booth(s), carnival staff office/trailer, staff break area, first aid booth, and generators. Generator specifications such as gallon size, type of fuel (gas/diesel), and quantity/storage of additional fuel onsite is required. 2) Santa Ana Business License: Provider must provide a copy of their current Santa Ana Business License. All participating carnival vendors/exhibitors (including food or sale vendors) must have a current Santa Ana Business License and be pre - approved through the City of Santa Ana's Business Tax department. Provider and/or vendors will be responsible for paying any fees related to the Business Tax department. Business License inquiries can be made to the Business Tax department at BusinessTax asanta-ana.ore. All participating carnival Agreement for Carnivice1or Fiestas Patrias 2019 7 #6302vl vendors/exhibitors (including food or sale vendors) must have a current sellers permit and be pre -approved through the California State Board of Equalization. Provider and/or vendors will be responsible for paying any fees related to their sellers permit. Permit inquiries can be made to the California State Board of Equalization at www.boe.ca.gov. 3) Certificate of Liability Insurance and Additional Insured Endorsement: Provider and all participating carnival vendors must demonstrate proof of insurance coverage according to City requirements and must be pre -approved through the Risk Management department. Individual vendors may purchase a special event insurance policy through the City if requested by Friday, August 23, 2019. Late requests will not be accepted. Insurance inquiries can be made to Risk Management at RMD a santa-ana.orr . 4) Orange County Fire Authority (OCFA) Approval: Provider is required to obtain approval through the OCFA for carnival layout, setup/tear down, equipment, activities and street closures. Materials can be submitted directly to OCFA at SpecialEvents amcf, a.ore. 5) Orange County Health Care Agency (OCHCA) Approval: Provider is required to obtain health permits through the OCHCA for food and beverage distribution and pay any associated health permit fees for their contracted food vendors. All OCHCA applications, materials and payments (if applicable) must be submitted to the Special Events Office for routing to the OC Health Care Agency. Provider's food vendors are required to follow all food handling, storage and event guidelines at all times. Any fees or penalties related to the incompliance of health guidelines by contracted food vendors will be at the expense of the Provider. For inquiries related to food and beverage distribution, contact OCHCA at EHSnecialEvents a ochca.eom. 6) Event Notification to Neighborhood Associations. Businesses and Organizations: City will be responsible for distributing event notification to neighborhood associations, businesses, and organizations surrounding event area. 7) Financial Statement: Provider must obtain a CPA firm to audit their receipts and issue an audit report to the City 45 days after the event. B. BUILDING & PLANNING PERMITS - Provider shall obtain all required permits and approvals from the Building and Planning department no later than Friday, August 30, 2019 unless otherwise indicated. Materials that must be submitted to the Special Events Office are as follows: 1) Electrical Permit 2) Inspection Record Card w/Scheduled Inspection Date and Time 3) Building Permit for temporary mechanical structures and tents large than IWO Agreement for Carnival Services for Fiestas Patrias 2019 26G-4 #6302vl C. CLEAN UP - Provider will maintain continuous litter control dining the entirety of the Event within the carnival area and adhere to the following: 1) Provide a professional cleaning crew to ensure that trash does not accumulate on streets and sidewalks at any time within the carnival area. 2) Impose adequate mitigation measures to ensure removal and disposal of grease from food and/or cooking booths are utilized, including but not limited to, the use of grease barrels. 3) Provide and pay for City approved contractor to steam clean streets/sidewalks on Flower Street (between Santa Ana Boulevard and 6"' Street) and provide residents 24-hour notice prior to such sidewalk steam cleaning, if applicable. 4) Empty and place a clean liner in all City sidewalk trashcans and cardboard trash boxes located within the carnival area. This is to be done throughout the duration of the two-day festival and the Monday following the event before vacating the carnival area. D. EQUIPMENT - Provider shall provide all necessary equipment; resources and labor to develop and produce the carnival. 1) Equipment shall include lighting for all vendor booths, which is to be maintained and fully illuminated until all attendees have vacated the festival and carnival grounds each day. 2) City will provide adequate portable restrooms in the carnival area from 8:00 a.m. Saturday morning (Event start time) through 10:00 p.m. Sunday (Event end time) and will maintain trash receptacles within portable restrooms only; they shall be positioned and serviced to prevent noise and odor disturbances to surrounding residents. 3) Provider will provide trashcans for and clean the carnival midway areas each night and at the close of the Event. 4) Provider shall inspect all equipment prior to its use to ensure safety and repair on site as needed. E. NEIGHBORHOOD ASSOCIATIONS & BUSINESSES - Provider shall exercise caution and special measures to ensure minimal disruption to owners and tenants that surround the event area. F. QUIET HOURS — The following designated quiet times shall be strictly adhered to by all carnival employees and sub -contractors and there shall be with no construction set up or tear down as follows: Friday from 12 midnight to Saturday 8:00 a.m. Saturday from 12 midnight to Sunday 8:00 a.m. Agreement for Camivice�or Fiestas Patrias 2019 3 #6302vl • Sunday from 10:00 p.m. through Monday 8:00 a.m. G. EVENT SET UP - The Event shall include a carnival as follows: 1) City will attempt to obtain the following non -City locations for carnival staging, setup and staff/vendor parking, and use will be contingent on state approval: P2 Service Lot (OC Court lot east of Flower Street, between Civic Center Drive and 6111 Street) 2) Provider must secure their own land use permits for any additional private lots that may be required for the purposes of carnival staging, setup, storage or staff/vendor parking. Permits must be obtained no later than 30 days prior to the event. 3) Provider will work with City regarding street closures and property access as follows: Carnival load in and setup on Friday between the hours of 9:00 a.m. until 11:00 p.m. on Flower Street between 6`h Street and Santa Ana Boulevard. Clear access must be maintained on 61h Street (west of Flower Street) and north/southbound on Santa Ana Boulevard. Access into the P2 Service Lot must remain open on Friday. Final location for carnival rides and booths will be mutually agreed upon between the City and the Provider. 4) City will assist Provider with providing staging areas and access for Provider's vehicles before, during and after the Event. 5) Provider shall be responsible for securing temporary storage locations for all carnival equipment needs and must secure approval from City of any outdoor off -site accommodations within City limits no later than two weeks prior to the Event. 6) Provider may not store equipment on City owned property or City right of way prior to the set up time, without prior City approval. Such approval must be requested no later than August 30, 2019. 7) Provider will not allow any employees to sleep overnight inside the Event boundaries. 8) Provider must supply restroom facilities for its staff during set up and tear down. 9) Provider may begin set up of rides at 9:00 a.m. Friday prior to the Event. H. CARNIVAL REQUIREMENTS- 1) City will provide Provider with four (4) food booths and one (1) vendor booth. City will provide one (1) table and two (2) chairs per booth. City will provide one power source/outlet for each booth space. The City and Provider will mutually agree upon location of booths. Food and sale items must be pre -approved by the Agreement for Carnival Services for Fiestas Patrias 2019 AMU-6 #6302v1 City. All food and vendors using City provided booths must comply with the City's Special Event Permit requirements. 2) Provider will setup one (1) ticket booth throughout the event space, along with providing ride tickets and ticket booth personnel for the Event. 3) Provider will set up five (5) major rides and six (6) kiddie rides. a. Major rides are listed as follows: Wind Jammer, Sizzler, Tilt a Whirl, Graviton, and Round Up. b. Kiddie rides are listed as follows: Lady Bugs, Berries, Glass House, Fun House, Cars, and Super Slide. c. Provider will provide two (2) generators and are listed as follows: 570kw and 320kw 4) Provider will set up eight (8) game booths. Game booths are listed as follows: Basketball, Gold Fish, Basket Toss, 7/11, Spill the Milk, Milk Jar, Water Race, and Clown Around. 5) Provider will provide the maximum quantity of rides and games possible according to the space allowed. All mechanical rides are to be California Department of Occupational Safety and Health Certified and have all of the required state, county or local permits. All operators of such rides and games must have any required state licenses. All rides will be of the same quality as in previous carnival events conducted with the City. I. SECURITY 1) Provider shall provide two (2) state licensed uniformed guards in the carnival area overnight each day of the Event. 2) A minimum of 50% of the Security staff must be bilingual, English/Spanish speaking. 3) Security personnel must wear uniforms distinct from local law enforcement agency. 4) Provider shall ensure that all security guards are equipped with radios for internal communications and that the Security Supervisors are equipped with one radio each for communications with the Santa Ana Police Department (hereinafter "SAPD") and City staff. 5) Provider shall ensure that there is one Security Supervisor on site at all times during the Event. 6) The security staff shall take final direction and instruction from the SAPD Agreement for Carniv Vor Fiestas Patrias 2019 Supervisor in charge of the event and will meet with the SAPD Supervisor and other staff as needed at the beginning of each day of the Event. 7) Security guards shall not carryweapons, batons, or tear gas. 8) Security guards shall report only to the SAPD Sergeant in charge of the event or the Community Services or Events Supervisor. 9) Security staff shall contact SAPD for any criminal activity, but may intervene for non -criminal activity such as illegal vendors, rule violations, crowd control, traffic control, etc. 10) Security personnel shall assist with the following: a. Ensuring that no vehicles park on streets within the carnival boundaries each day of the Event. b. Preventing vehicles from stopping to drop off equipment. c. Monitoring specific problem areas identified by SAPD d. Monitoring carnival area for any illegal, gang or other criminal activity. e. Assisting SAPD with closing down the carnival nightly. 2. COMPENSATION Provider will provide services pursuant to this Agreement and will be entitled to keep 75% of the revenue generated pursuant to this Agreement. Provider will pay to City 25% of the revenue generated for services provided pursuant to this Agreement no later than Monday, September 16, 2019. Provider will also provide an accounting to the City for the revenue generated pursuant to this Agreement as specified in Section IA(7) of this Agreement. City will provide Provider with four (4) food booths and one (1) vendor booth for a total value of $9,200. 3. CARNIVAL LOCATION The carnival location will be on Flower Street north of Santa Ana Boulevard and South of Sixth Street as indicated in the attached Exhibit A. City reserves the right to change the carnival location prior to Festival with advance notice to Provider. 4. FESTIVAL HOURS The Festival shall take place as follows: A. Saturday September 14, 2019 between the hours of 12:00 p.m. to 10:00 p.m. The carnival will close at 11:00 p.m.; and 96302v1 Agreement for Carnival Services for Fiestas Patrias 2019 26G -8 B. Sunday September 15, 2019 between the hours of 12:00 p.m. to 9:00 p.m. for the festival. The carnival will close at 10:00 p.m. 5. AGREEMENTS BETWEEN VENDORS OR SUB -CONTRACTORS AND PROVIDER Any agreements between Provider and Sub -Contractors or vendors for services for Event shall include the provisions noted below. Provider will provide City proof of compliance with this provision prior to set up of the Event. Failure to comply with this provision will be grounds for termination of this Agreement: A. Provision for indemnity of the City as set forth in Section 13 of this Agreement; and B. Insurance coverage as and additional insured endorsement naming the City, its officers, employees, agents, volunteers and representatives as an additional insured as set forth in Section 12 of this Agreement. 6. TRASH CLEAN UP Provider is responsible for maintaining litter control and sufficient trash bins during the event. Provider is also responsible for clean up after the event and returning the carnival location to the same condition that it was in prior to the carnival. 7. ACCESS TO EVENT BY CITY STAFF City staff wearing City identification will have access to the carnival at all times and for all locations. 8. CLEANING AND DAMAGES DEPOSIT REQUIRED No cleaning or damage deposit is required for the Festival. Once the carnival is complete, the City will notify Provider within 48 hours whether any additional clean up is required. If City determines that additional clean up is required, City will notify Provider in writing of the need for additional clean up and the time line for completing that clean up. If Provider fails to adequately clean-up after City provides notice of additional clean up or if Provider fails to adequately clean-up within the time provided by the City for the additional clean-up, City will hire a company to provide additional clean up and Provider will reimburse the City for the reasonable and actual costs (including any prevailing wages required to be paid by the City) paid to perform the additional clean-up. 9. TERM This Agreement shall commence on the date first written above and terminate on November 30, 2019, unless terminated earlier in accordance with Section 20, below. Designated portions of this Agreement will survive termination or expiration of this Agreement. #6302v1 Agreement for Camiveor Fiestas Patrias 2019 UT 10. INDEPENDENT CONTRACTOR Provider shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Provider performs the services which are the subject matter of this Agreement; however, the services to be provided by Provider shall be provided in a manner consistent with all applicable standards and regulations governing such services. Provider shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 11. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Provider under this Agreement ("Documents & Data"). Provider represents and warrants that Provider has the legal right to license any and all Documents & Data. Provider makes no such representation and warranty concerning Documents & Data, which were provided to Provider by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. Provided however that any drawings and artwork prepared by Provider shall remain the sole and exclusive property of Provider and City shall have no right to copy, use, modify, reuse or sublicense any and all such items other than in connection with the 2019 Festival. The Provider may not use any drawings or artwork that identifies the City of Santa Ana or uses the City seal for any use other than the 2019 Festival without written authorization. 12. INSURANCE Prior to undertaking performance of work under this Agreement, Provider shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: #6302v1 A. Commercial General Liability Insurance. Provider shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Provider's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in an amount not less than $1,000,000 per occurrence, with $2,000,000 in the aggregate. Provider shall supply City with a fully executed additional insured endorsement in a form approved by the City Attorney upon execution of this Agreement. Agreement for Carnival Services for Fiestas Patrias 2019 26Gs-10 #6302v1 B. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Provider, if Provider has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the perfonnance of the work under this Agreement, Provider agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. D. If Provider is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. E. The following requirements apply to the insurance to be provided by Provider pursuant to this section: 1) Provider shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. 2) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. 3) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. 4) In the event that Provider has insurance coverage in excess of the required amounts, City will get the benefit of Provider's additional insurance coverage. F. If Provider fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Provider's right to be paid for its time and materials expended prior to notification of termination. Provider waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. Provided however, that prior to terminating the Agreement, City shall provide Provider with seven (7) calendar days' written notice of the default and allow Provider to cure the default by providing said insurance during the seven day period following Provider's receipt of written notice of the default. Agreement for Camiy,�ldgice� f r Fiestas Patrias 2019 LL.71 t*9g1� 13. INDEMNIFICATION Provider agrees to and shall indemnify and hold harmless the City, its officers, agents, employees, Providers, special counsel, and representatives from liability 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 direct or indirect operations of the Provider or its contractors, subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement but only to the extent resulting from their negligence or willful or intentional acts. City agrees to and shall indemnify and hold harmless the Provider, its officers, directors, shareholders, contractors, subcontractors, agents, employees, and representatives from liability 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 direct operations of the City or its contractors, subcontractors, agents, employees, which relates to the services described in section I of this Agreement but only to the extent resulting from their negligence or willful or intentional acts. 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 Indemnifying Party further agrees to indemnify, hold harmless, and pay all costs for the defense of the other, including fees and costs for special counsel to be selected by the other, 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. The provisions of this Section survive cancellation or expiration of this Agreement. 14. . RECORDS Provider's records and invoices in connection with the work to be performed under this Agreement shall remain the sole and exclusive property of Provider. In the event any such records are provided to City, City shall maintain the confidentiality of these records and not disclose them to any other person or company except as necessitated by law including but not limited to Court order, subpoena, and/or public records act request. Provider shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements for a minimum period of three (3) years. 15. CONFIDENTIALITY If either party receives from the other information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, receiving party agrees 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 importance, but in no event less than reasonable care. "Confidential Information" shall 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 #6302vl Agreement for Carnival Services fnFiestas Patrias 2019 2543 02 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 Provider disclosed in a publicly available source; (c) is in rightful possession of the Provider without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Provider without reference to information disclosed by the City. The provisions of this Section survive cancellation or expiration of this Agreement. 16. CONFLICT OF INTEREST CLAUSE Provider covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 17. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714- 647-6956 With courtesy copies to: And #6302v1 Executive Director —Parks, Recreation and Community Services Agency City of Santa Ana 20 Civic Center Plaza (M-75) P.O. Box 1988 Santa Ana, California 92702 Fax 714- 571-4221 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702 Agreement for Catni21 is r Fiestas Patrias 2019 To Provider: Fax 714- 647-6515 International Promotions, Inc., dba Fiesta de Carnival Attention: Mr. Ted Holcomb 11551 Weatherby Road Los Alamitos, California 90720 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. 18. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Provider, 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 Provider. 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 Provider or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 19. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Provider, Provider may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services, which are the subject to this Agreement performed by City personnel or by other Providers retained by City at its cost and expense. 20. TERMINATION This Agreement may not be terminated by either party unless the other is in material breach of the Agreement and then only after providing fifteen (15) calendar days' notice to the other and allowing the other the right to cure the alleged default. A material default is defined as an act or omission that would materially jeopardize the success of the Festival including but not limited to failing to provide the required documents pursuant to the time frames in this agreement and failure to adhere to any of the #6302v1 Agreement for Carnival Serv'ces for Fiestas Patrias 2019 23}14 terms of this agreement. A material default shall also include any action that will damage the image and/or reputation of the City. Prior to delivering a notice of default, the parties shall first discuss the nature of the default and to the extent necessary, work together to remedy the default or provide an alternative means of performance that is reasonably acceptable to each party. Each party recognizes that the other will have a substantial investment of time and money in performing this Agreement. 21. DISCRIMINATION Provider shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Provider affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 22. 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. 23. PROFESSIONAL LICENSES A. Provider shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Provider shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. B. Provider shall receive all vendors and/or sub -contractors to obtain all necessary licenses, permits, approval, waivers and exemptions necessary for the provision of any contracted services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Provider shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 24. MISCELLANEOUS PROVISIONS #6302vl A. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held Agreement for CamiIIServiceq Cr Fiestas Patrias 2019 by the signatory or is withdrawn. B. A'l Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. written. !N WITNESS W EREOF, the parties hereto have executed this Agreement the date and year first above ATTEST: I CITY OF SANTA ANA DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By. fl• Kvb"2 U Laum A. Rossini Senior Assistant City Attorney FOR APPROVAL: Lisa Rudloff Executive Director of Parks, Recreation, and Community Services Agency 02v1 KRISTINE RIDGE City Manager PROVIDER International Promotions, Inc. By: tee./ yT� Ted Holcomb, President Tax IDU Agreement for Carnival Services for Fiestas Patrias 2019 Page 14 25G-16 #6302v1 EXHIBIT A CARNIVAL LOCATION Agreement for Carni2�ej5i gstr Fiestas Patrias 2019 EXHIBIT A: 2019 FIESTAS PATRIAS CARNIVAL SITE PLAN Location of booth spaces below are designated by the City and are subject to change. LAST UPDATED 7/8/2019 25G-18 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AGREEMENT WITH SWAYZER CORPORATION FOR LANDSCAPE MAINTENANCE SERVICES, FOR A 3-YEAR PERIOD, IN AN AMOUNT NOT TO EXCEED $125,000 ANNUALLY FOR A TOTAL AMOUNT OF $625,000 (NON -GENERAL FUND) (STRATEGIC PLAN NO. 6, 1C) (51TY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with Swayzer Corporation for Landscape Maintenance Services at Water Facilities and at the Santa Ana Regional Transportation Center, for the three-year period beginning August 20, 2019, and expiring August 19, 2022, with a provision for one, two-year renewal option exercisable by the City Manager and City Attorney, in an amount not to exceed $125,000 annually, fora total amount of $625,000 subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency (PWA) is responsible for landscape maintenance at 19 water enterprise facilities, such as well sites and pump stations, and at the Santa Ana Regional Transportation Center (SARTC). Landscape maintenance services include, but are not limited to, mowing, weed mitigation and removal, trash removal and disposal, and irrigation system maintenance. In addition to general maintenance services, staff will pursue various water -wise improvement options, such as replacing landscaping at facilities and equipment upgrades, including smart weather controllers. On May 16, 2019, PWA issued a Request for Proposals (RFP) for landscape maintenance services at 19 water facilities and the SARTC. The RFP was advertised on the City's PlanetBids website. System records indicate 32 vendors were notified and 29 vendors downloaded proposal files. Five responsive proposals were received and evaluated by a selection committee, based on the criteria as outlined in the RFP. Listed below are the responding firms and their respective scores: FIRM LOCATION PROPOSAL SCORE Swa zer Corporation Carson, CA 91 Greentech Landscape Inc Whittier, CA 83 Mariposa Landscapes Inc Irwindale, CA 79 Nature Care Services Irvine, CA 65 DMS Facility Services Anaheim, CA 61 25H-1 Agreement with Swayzer Corporation August 20, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACTS There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted in the Fiscal Year 2019-20 Water Utility Water Production & Supply Account (No. 06017640-62300) and PWA-SARTC Operations Account No. (06717650-62320) and will be included in proposed budgets for future years as follows: Fiscal Accounting Unit Fund I Accounting Unit, Account Amount Year — Account # Description Descri t!on Contract 3-Year Term Water Utility Water Production & 06017640- Water Supply, Contract Services- $90,000 62300 Professional FY 19-20 Regional PWA-SARTC Operations, 06717650- Transp. Maintenance & Repair Buildings & $35,000 62320 Center Ground 06017640- Water Utility Water Production & 62300 Water Supply, Contract Services- $90,000 FY 20-21 Professional 06717650- Regional PWA-SARTC Operations, Transp. Maintenance & Repair Buildings & $35,000 62320 Center Ground 06017640- Water Utility Water Production & Water Supply, Contract Services- $90,000 FY 21-22 62300 Professional 06717650- Regional PWA-SARTC Operations, Transp. Maintenance & Repair Buildings & $35,000 62320 Center Ground 25H-2 Agreement with Swayzer Corporation August 20, 2019 Page 3 Fiscal Accounting Unit Fund Accounting Unit, Account Amount Year — Account # Description Descri tion Renewal O tion 2-Year Term Water Utility Water Production & 06017640-62300 Water Supply, Contract Services- $90,000 FY 22-23 Professional Regional PWA-SARTC Operations, 06717650-62320 Transp. Maintenance & Repair Buildings & $35,000 Center Ground Water Utility Water Production & 06017640-62300 Water Supply, Contract Services- $90,000 FY 23-24 Professional Regional PWA-SARTC Operations, 06717650-62320 Transp. Maintenance & Repair Buildings & $35,000 Center Ground TOTAL AMOUNT: 1 $625,000 Fuad S! fweiss, PE, PLS Executivt Director Public W rks Agency FSS/NS/RR Exhibit: 1. Swayzer Corporation Agreement APPROVED AS TO FUNDS AND ACCOUNTS: Kath n Dowrfs, CPA ,� Executive Director `/ Finance and Management Services Agency 25H-3 25H-4 Exhibit 1 AGREEMENT TO PROVIDE LANDSCAPE MAINTENANCE SERVICES FOR WATER FACILITIES AND SANTA ANA REGIONAL TRANSPORTATION CENTER THIS AGREEMENT is made and entered into this 20th day of August, 2019 by and between Swayzer Corporation ("Contractor"), 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. On May 16, 2019, the City issued Request for Proposal No. 19-048, by which it sought a contractor to provide landscape maintenance services for water facilities and the Santa Ana Regional Transportation Center. B. Contractor submitted a responsive proposal that was selected by the City. Contractor represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 19-048 and addendum thereto. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such 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 Contractor shall perform the services that were described in the scope of work that was included in RFP No. 19-048 and that is attached as Exhibit A. Contractor's proposal, including its acknowledgement, by letter dated July 10, 2019, to provide emergency services is attached as Exhibit B and incorporated in full. 2. COMPENSATION a. City agrees to pay, and Contractor agrees to accept as total payment for its services under this Agreement, the rates and charges identified in Exhibit C. The total annual. -sum to be expended under the tern of this Agreement, including any extension periods, shall not exceed $125-1000. This sum is comprised of (1) the base amount of $85,200 and (2) a contingency in the amount of $39,800 for additional services at the City's sole discretion. b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of Page 1 of 8 25H-5 performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and terminate on August 19, 2022, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended for one 2-year period upon a writing executed by the City Manager and City Attorney. 4. PREVAILING WAGES Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the services being performed are part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 5. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement ("Documents & Data"). Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Page 2 of 8 25H-6 Documents & Data which were provided to Contractor by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. Yam 1�FY11:7:\�C�JJa Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned. automobiles. C. Worker's Compensation Insurance. In accordance with the California Labor Code, Contractor, if Contractor has any employees, is required to be insured against Iiability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Contractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. C. The following requirements apply to the insurance to be provided by Contractor pursuant to this section: (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be famished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be cancelled Page 3 of 8 25H-7 or reduced in coverage or changed in any other material aspect, by Contractor, without thirty (30) days prior written notice to the City. (iv) Contractor shall supply City with a fully executed additional insured endorsement. If Contractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials expended prior to notification of termination. Contractor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEMNIFICATION Contractor agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor or its 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 Contractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terns of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8, the above indemnity shall be 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 Contractor. 9. INTELLECTUAL PROPERTY INDEMNIFICATION Contractor shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work product or documents provided by Contractor to the City pursuant to this Agreement. Page 4 of 8 25H-8 10. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 11. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Contractor agrees 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 importance, but in no event less than reasonable care. "Confidential Information" shall 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 Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor without an obligation of confidentiality; (d) is required to be "disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City. 12. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) Page 5 of S 25H-9 P.O. Box 1988 Santa Ana, CA 92702-1988 Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, CA 92702 To Contractor: Swayzer Corporation 1665 East Del Amo Blvd Carson, CA 90746 Attn: Samuel Swayzer 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 timeframes, weekends, federal, state, County or City holidays shall be excluded. 14. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor regarding 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 Contractor. 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 Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. Page 6 of 8 25H-10 IVENOW :\ \L sl t7 No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to 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 Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. NON-DISCRIMINATION Contractor shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19. 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. 20. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Page 7 of 8 25H-11 Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 21. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 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 Daisy Gomez Kristine Ridge Clerk of the Council City Manager APPROVED AS TO FORM CONTRACTOR SONIA R. CARVALHO City Attorney By: 7 hn M. Funk Name: Samuel Swayer Assistant City Attorney Title: President RECOMMENDED FOR APPROVAL Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency Page 8 of 8 25H-12 EXHIBIT A SCOPE OF WORK INTRODUCTION AND BACKGROUND The City of Santa Ana, Water Resources Division issues this bid document to procure full and complete contract landscape maintenance at designated sites, herein described, and that such sites be kept in a healthy, weed -free, vigorous, and well -kept state at all times. The Contractor shall provide at his own risk and cost all labor, materials, tools, equipment, traffic control and miscellaneous devices, transportation, hauling, dumping, fertilizers, insecticides, rodenticides, chemicals and other items needed to perform landscape maintenance work as directed herein. The Contractor shall provide complete landscape maintenance at all work sites, Including, but not limited to pruning, structural shaping of young trees, shrubs, and ground cover plants; trimming overgrowth of all foliage and preventing growth on top of city equipment; removing and controlling weeds; controlling plant diseases and pests; mowing turf; edging turf and ground cover; irrigating plant material; maintaining and repairing irrigation systems; removing trash and debris; and other maintenance required to maintain the work sites in a safe, attractive and useable condition. The Contractor shall maintain all plant material in good condition with accepted standards for growth, color, and appearance. DESCRIPTION OF PROJECT Furnish all labor, equipment, materials, and supervision to perform landscape maintenance as described herein including, but no limited to, the following: ❑ Hardscape cleaning ❑ Weeding, cultivating and brush control both mechanically and with chemicals ❑ Fertilizing ❑ Shrub and groundcover trimming, pruning, training ❑ Mowing and verticutting ❑ General rodent, pest and disease control on landscape planting and turf ❑ General drainage structure and system maintenance ❑ Reporting for vandalism, graffiti, or any safety concerns ❑ General litter control, refuse removal, and grounds policing ❑ Plant replacement ❑ Access roadway clearance and visibility maintenance ❑ Minor tree pruning and staking of trees under 12 feet in height ❑ Irrigation programming, monitoring, maintenance, and repair ❑ Emergency maintenance/service 1. ROUTINE MAINTENANCE Routine maintenance shall include but not be limited to the following services performed on all work sites listed and shown in ATTACHMENT 3: SITE LOCATIONS AND MAPS. 1.1. TURF CARE City of Santa Ma . RFP 18&048 Landscape Maintenance Services of Waffir8Iw hies IdInta Ma Regional Transportation Center 1.1.1 MOWING All turf shall be mowed weekly with mulching mowers. Subject to the approval of the City of Santa Ana, the contractor may reduce the mowing frequency to biweekly during periods of rain or prolonged cold. All grass clippings shall be left in place with the exception of large accumulations, which shall be collected and removed after each mowing. All roadways adjacent to work areas shall be kept clean at all times. All turf shall be cut to a height appropriate for the type of grass being mowed. Mowers shall be maintained in optimum condition with sharp blades to provide a smooth, even cut without tearing of the leaf blades. Turf shall only be mowed after two (2) consecutive non -watering days and/or as directed by the City of Santa Ana. Any and all signs found onsite or on trees shall be removed, including but not limited to political, garage sale, lost and found, etc. All litter/debris shall be picked up prior to mowing. All turf and hardscape areas including but not limited to the outside and inside perimeter of the City property including sidewalks and streets shall be free of turf clippings, plant debris and trash at the end of the scheduled mow day. 1.1.2 EDGING AND DETAILING All turf shall be edged with blade trimmer adjacent to all improved surfaces and, where no improved surface exists, turf edges shall be maintained as if the turf area abuts a shrub bed or property line. Edging and detailing shall be performed weekly. Following each edging, all edging debris shall be removed. Turf shall be mechanically edged during the mowing of each week. The edging along sidewalks, curbing and other concrete shall.be performed with a blade type edger. Sidewalks and other hard surfaces shall be properly cleaned after each edging including grass stains or marks made as a result of the mowing process. Contractor shall flag all irrigation sprinklers prior to commencement of work. All turf growing adjacent to irrigation hardware, tree trunks, or any other landscape amenity shall be neatly detailed by string trimmer and/or chemicals to twelve (12) inches in all directions of said objects. Blade trimmers are prohibited from usage twelve (12) inches around any tree, shrub, or establish plant base. If chemical detailing is performed, the Contractor shall use the string trimmer to remove the treated turf within one (1) week after symptoms of phototoxicity become recognizable. Any damage, as determined by the City of Santa Ana, caused to irrigation components, sprinklers, valves, etc., or plant material by edging equipment and/or mowers shall be replaced by the Contractor at Contractor's expense. 1.1.3 FERTILIZATION Lawns shall be fertilized four (4) times annually with a "complete fertilizer'. Fertilize two (2) times per year during the months of December and February using 22-3-9 at the rate of five pounds (5 lbs.) per 1000 square feet or approved equivalent program. During the months of June and October fertilize with City of Santa Ana - RFF 19d048 Landscape Maintenance Services of Water Facilities and Santa Ana Regional Transportation Center 25H-14 16-6-8 at the rate of six pounds (6 lbs.) per 1000 square feet two (2) times per year, or approved equivalent program. Due to the broad geographical area of the contract, the City may from time to time adjust or change the fertilization specifications contained herein as a result of consultation with Contractor. All fertilization shall be included with the landscape maintenance of each contract area. Contractor shall supply and transport all required fertilizers and include costs in the bid to the City. 1.1.4 WATERING Turf areas shall be deeply watered as required by weather conditions to provide adequate moisture for optimum growth. At no time shall turf areas be allowed to show a lack of fresh green color or a loss of resilience due to lack of water. Wherever or at any time that an irrigation system is damaged, fails or does not adequately cover the turf area in which it is installed, the Contractor shall furnish and set out hoses and sprinklers, or other portable means, as required to uniformly water the turf area. Automatic irrigation shall be conducted between the hours of 10:00 p.m. and 4:00 a.m. and shall be programmed to prevent excessive runoff, ponding or over watering. Turf areas shall not be maintained in an over watered and/or saturated condition. Contractor shall respond immediately to signs of turf stress. Turf lost due to stress shall be deemed contractor negligence, as determined by the City of Santa Ana, and replaced at Contractor's expense. Trimming of grass around the trees in the turf area shall be performed during the mowing of each week in such a manner as to avoid damage to the tree trunk. Contractor shall develop and maintain a program to ensure that all turf is maintained free of fungus, insect infestations and/or turf diseases at all times. Damaged and/or bare spots in turf shall be immediately repaired at the time of detection. The tree guards shall be maintained in place around the trunk of each canopy tree at all times to eliminate tree damage by string trimmers, mowers, etc. Trees damaged by Contractor shall be immediately replaced at Contractor's expense. 1.1.5 DETHATCHING Turf areas shall be dethatched once per year between September and October or as directed by the City of Santa Ana. Dethatching shall be accomplished by use of a "vertical type" dethatch machine. Contractor shall flag all irrigation sprinklers prior to commencement of work. All thatch and debris shall be immediately removed upon completion at Contractor's expense. 1.1.6 OVERSEEDING Each year, all turf areas shall be overseeded with Eagle Blend or equivalent perennial rye grass at the minimum rate of seven (7) pounds per 1,000 square feet. Seed shall be uniformly broadcast, with care City of Santa Ana - RFP 19.048 Landscape Maintenance Services of War Fa Irk itlgs aqd Santa Ana Regional Transportatlon Center taken to not broadcast in non -turf area. Dethatching and/or deep scalping of the turf may be required as directed by the City of Santa Ana. Seeds shall be guaranteed free of disease, pests, or other foreign grasses or weeds. 1.1.7 PRE -EMERGENT The Contractor shall apply an approved pre -emergent herbicide to all turf areas on an as needed basis for control of all types of weeds. At no time shall weeds be allowed to remain in turf areas. 1.1.8 WEED CONTROL OF PAVED/HARD SURFACES Contractor shall control all weeds growing in cracks, expansion joints and other hard surfaces adjacent to the landscape area by the use of chemical weed control to include long narrow median noses, cracks in sidewalks/curbs/gutters, etc. Contractor shall develop and maintain a broadleaf weed control program that will ensure that all turf is maintained in a weed -free condition at all times. 1.1.9 LITTER PICKUP/HARDSCAPE CLEANING Contractor shall provide litter pickup to all landscaped areas weekly. The hardscape areas adjacent to the landscape, i.e. sidewalks and concrete in the medians, shall be cleaned of leaves, paper, dirt, feces, miscellaneous abandoned items, and other debris in conjunction v%ith litter pickup. At no time will this debris be blown into the street, storm drains, and/or onto private property. All litter shall be removed from the turf prior to each mowing. 1.1.10 REPLANTING The Contractor shall re -sod all turf lost due to normal attrition or due to Contractor's faulty maintenance or negligence, as determined by the City of Santa Ana, at no additional cost to the City. At no time shall ridges or depressions caused from contractor equipment on over watered and/or saturated ground, as determined by the City of Santa Ana, be permitted in the turf areas. This shall be deemed Contractor negligence. Contractor shall remove and replace with new turf at no additional cost to the City. 1.2. GROUND COVER CARE 1.2.1 EDGING AND DETAILING Ground cover beds shall be maintained within their intended bounds, edged and/or detailed every week. Maintain a 12" clearance between different plant material. City of Santa Ana - RFP 1 M46 Landscape Maintenance SeMoes of Water Facilities and Santa Ana Regional Transportation Center 25W-16 Ground covers shall not be permitted to encroach into lawns, shrubs, adjacent desirable bare areas, wall fixtures, furniture, other ground cover areas, etc. All sites shall be cleaned following each edging/detailing, including streets and sidewalks (when applicable). 1.2.2 FERTILIZATION All ground cover beds shall be fertilized using a complete or approved fertilizer (such as 16-6-5 Turf Supreme) four (4) times per year. The rate of application shall be two (2) pounds of actual nitrogen per 1,000 square feet. Proof of application in the form of emptyfertilizer bags may be requested at anytime by the City of Santa Ana. Advanced notice shall be given to the City of Santa Ana prior to performing this task. 1.2.3 RENOVATION Ground cover beds shall be thinned and pruned, separated and/or relocated for the health of the planting and the appearance of the site, and at such other times when directed by the City of Santa Ana. Infill planting of bare groundcover areas shall be replanted when necessary or upon request with flats of the same species one time per year as part of routine maintenance at no additional cost to the City. 1.2.4 CULTIVATION AND MULCH All bare soil or open areas shall be either cultivated weekly or covered by a minimum of two (2) inches of mulch. All mulch material shall be of a recycled product free from foreign grasses and weeds and shall be approved by the City. At no time shall weeds be allowed to remain in bare or planted areas. 1.2.5 REPLANTING The Contractor shall be responsible for the complete removal and replacement of groundcover lost due to normal attrition or to Contractor's faulty maintenance or negligence, as determined by the City of Santa Ana, at no additional cost to the City. Contractor shall control weeds by keeping all planters, shrubs and ground cover areas free of visible weeds at all times. Where ground cover grows under pine trees, the Contractor shall use a combination of techniques (raking and blowing) to prevent the build-up of needles from forming on the ground cover. Ground cover plants shall be added, as needed, to ensure a solid mass planting in conformance with the original intent at no cost to the City. ircmilIM"M19- 1.3.1 GENERAL REQUIREMENTS The Contractor shall bring to the attention of the City of Santa Ana within twenty-four (24) hours any tree -displaying root heaving or girdling (either by roots or a foreign material, leaning, broken or hanging limbs, or any other reason posing a potential safety hazard.) Any safety hazard present now shall be reported immediately. Note: All trees up to 9 inch DBH (Diameter at Breast Height) are included in routine maintenance. City of Santa Ana - RFP 19-048 Landscape Maintenance Services of Water Facilities a d Santa Ana Regional Transportation Center 2514-17 1.3.2 REPORTING An annual report shall be provided by an ISA Certified Arborist, by January 30t' of each year, on the overall condition and health of all trees under the scope of this contract. Specific trees in need of additional care or removal shall be identified by species and/or address. The Contractor shall provide an annual report identifying the location, address and species of tree vacancies. 1.3.3 PRUNING All trees within the scope of work shall be maintained to keep the natural integrity and shape of the trees. This work shall be accomplished in a manner, which will ensure that each individual tree is pruned per American National Standards Institute (ANSI) standards, per ANSI A300 Part 1, 2008 pruning standard and the ASNI Z133.1 as outlined in the City of Santa Ana Tree Pruning and Stump Removal Specifications are to be followed. All work shall be of the highest quality as outlined under the City of Santa Ana Tree Pruning and Stump Removal Specifications. In addition, the Contractor shall remove or prevent encroachment where it blocks vision or is considered undesirable by the City of Santa Ana. Low branches overhanging sidewalks shall be removed to a height of seven (7) feet above grade. Young trees needing pruning, training, and shaping to develop and maintain a dominant leader from which smaller primary branches arise that are radially and vertically spaced along the trunk. From time to time, the contractor may be asked to raise the canopy of the trees for security reasons and this shall be considered routine maintenance. 1.3.4 STAKING, TYING AND GUYING All trees under 4" DBH requiring staking shall be securely staked at all times with approved stakes and rubber VIT ties. Rubber hoses,and wire will not be permitted. All stakes shall be set perpendicular to prevailing winds unless designated otherwise by the City of Santa Ana. Tree stakes shall also be set a consistent distance away from the trunk of the tree (minimum six (6) inches) to reduce abrasion and cell elongation. The tops of all tree stakes shall be removed approximately three (3) inches above the highest tie to reduce abrasion of main or lateral branches of the tree. 1.3.5 FERTILIZATION All trees shall be fertilized using a complete or approved fertilizer a minimum of one (1) time per year. 1.3.6 WATERING All trees shall be properly irrigated to maintain a healthy condition. Trees shall not be maintained in an over watered and/or saturated condition. 1.3.7 REPLANTING The Contractor shall be responsible for the complete removal and replacement of any and all trees lost due to the Contractor's faulty maintenance or negligence, including but not limited to girdling trees with string trimmers or tree ties, improper planting of new trees, improper pruning techniques which disfigure City of Santa Ana - RFP 19448 Landscape Maintenance Services of Water Facil@es and Santa Ana Regional Transportation Center 25W-18 or destroy the trees natural integrity and shape, or failure to detect and prevent treatable diseases and insect Infestations as determined by the City of Santa Ana. Replacement shall be made by the Contractor in the kind and size of trees determined by the City of Santa Ana. Where there is a difference in value between the trees lost and the replacement of trees, this difference will be deducted from the contract payment. In all cases, the value of the trees lost will be determined by the City of Santa Ana using the latest American Shade Tree Conference guidelines for value determination. 1.4. SHRUB CARE Contractor shall remove dead shrubs and backfill to existing grade with imported soil as necessary to maintain a consistent finished grade. Sinkholes will not be acceptable as it represents a liability to the City. Replacements of shrubs will be approved by City of Santa Ana. Wall vines adjacent to and coming from City landscapes are a part of the maintenance of this contract. Wall vines shall be kept trimmed approximately four (4) inches from the wall and eight (8) inches below the top of the wall. Where wall vines have been allowed to grow over the top of the wall, the Contractor shall keep wall vines trimmed down to the top of the wall. Wall vines may require trimming two or more times per month during the growing season. ilIM99RIMMIK_' All shrubs growing in the work areas shall be pruned as required, to maintain plants in a healthy growing condition and to maintain plant growth within reasonable bounds to prevent encroachment of passage ways, walks, streets, view of signs or in any manner deemed objectionable by the City of Santa Ana. Dead or damaged limbs or branches shall be cleaned out and removed with sharp pruning tools with no projections or stubs remaining. Pruning shall be done in a manner to permit plants to grow naturally in accordance with their normal growth characteristics except box hedging may be required on some shrubs, as designated by the City of Santa Ana. Shear hedging or severe pruning of plants, unless authorized by the City of Santa Ana, shall not be permitted. Should the Contractor shear hedges or severely prune plants and disfigure or damage the plants, the contractor shall be responsible for replacing those plants with like kind and size as determined by the City of Santa Ana. The Contractor may be requested from time to time to raise the bottom or lower the tops of the shrubs for security reasons. This shall be considered routine maintenance and performed at no extra cost to the City. 1.4.2 FERTILIZATION All shrubs shall be fertilized using a complete fertilizer (such as 16-6-8) four (4) times per year. The rate of application shall be two (2) pounds of actual nitrogen per 1,000 square feet. Proof of application in the form of empty fertilizer bags may be requested at any time by the City of Santa Ana. Advanced notice shall be given the City of Santa Ana prior to performing this task. 1.4.3 RENOVATION Shrubs shall be thinned and pruned, separated and/or relocated for the health of the planting and the appearance of the site, and at such other times when directed by the City. Infill planting of bare shrub areas shall be replanted when necessary or upon request with plant material of the same species one time per year as part of routine maintenance at no additional cost to the City. City of Santa Ana - RFP 18-048 Landscape Maintenance Services of Water Facillges and Santa Ma Regional Transportation Center 25H -19 1.4.4 WATERING All shrubs shall be properly irrigated to maintain a healthy condition. Shrub areas shall be deeply watered as required by weather conditions to provide adequate moisture for optimum growth. At no time shrub areas shall be allowed to show a lack of fresh green color or a loss of resilience due to lack of water. Wherever or at any time that an irrigation system is damaged, fails or does not adequately cover the shrub area in which it is installed, the Contractor shall furnish and set out hoses and sprinklers, or other portable means, as required to uniformly water the shrub. Automatic irrigation shall be conducted between the hours of 10:00 p.m. and 4:00 a.m. and shall be programmed to prevent excessive runoff, ponding or over watering. Shrub areas shall not be maintained in an over watered and/or saturated condition. Contractor shall respond immediately to signs of plant stress, Plant material lost due to stress shall be deemed Contractor negligence, as determined by the City of Santa Ana, and replaced at Contractor's expense. 1.4.5 REPLANTING The Contractor shall be responsible for the complete removal and replacement of shrubs lost due to normal attrition or due to Contractor's faulty maintenance or negligence, as determined by the City of Santa Ana, at no additional cost to the City. 1.4.6 CULTIVATION AND MULCH All bare soil or open areas shall be either cultivated weekly or covered by a minimum of two (2) inches of mulch. All mulch material shall be of a recycled product free from foreign grasses and weeds and shall be approved by the City. At no time shall weeds be allowed to remain in bare or planted areas. Shrubs shall be pruned as required to ensure clear vehicular and pedestrian visibility and clearance. Remove broken or diseased branches and provide general containment and good appearance. Plant material encroaching onto or from City property shall be trimmed back to property line at City's discretion depending on circumstance, i.e. plants growing over fences and sidewalks from private property adjacent to contracted areas shall be trimmed back to the property line. Prune shrubs to retain as much of the natural informal appearance as possible, consistent with intended use, i.e. vines not growing into other plants, etc. Coordinate with City of Santa Ana, Continuously remove any spent blossoms or dead flower stocks, as required, to present a neat, clean appearance. Plants growing over curbing and/or sidewalks shall be maintained even with the edge of the sidewalk or curb and be trimmed on a natural taper rather than vertical, so as not to appear to be hedged. City of Santa Ana - RFP 19-048 Landscape Maintenance Services of Water Faculties and Santa Ana Regional Transportation Center 25H-20 Schedule the application of a complete fertilizer with an analysis of 15-15-15 at the rate of six (6) pounds per 1000 square feet as often as required, but no less than three times per year, to promote optimum growth and healthy appearance to all shrubs. Ailing or stunted shrubs shall be removed at time of discovery and replaced in kind within five (5) working days. Shrubs requiring additional nutrients to correct deficiencies shall receive such nutrients within three (3) working days of discovery. Contractor shall replace shrub failure that is determined to be due to Contractor's neglect or improper treatment at his expense. 1.5. WEEDS, DISEASE, AND PEST CONTROL 1.5.1 WEED CONTROL All landscape and hardscape areas within the specified scope of work (including, but not limited to, turf, shrub and ground cover, planters, tree wells, ornamental bark or rock areas, sidewalk, asphalt or concrete areas) shall be kept free of weeds and foreign grasses at all times. The complete removal of all weed growth shall be accomplished on a continuing basis. Weeds shall be controlled by hand and approved mechanical or chemical methods. The transferring of weeds or disease from one infected turf, plant or tree to another turf, plant or tree through improper or faulty maintenance shall be considered Contractor negligence, as determined by the City of Santa Ana. Such negligence includes but is not limited to, non -cleaning or non -disinfecting of tools or equipment and for not isolating the infected area. All affected turf, plant, or tree shall be replaced by Contractor at no cost to the City. Contractor shall continuously control weeds at all sites with both pre and post -emergent chemical control through mechanical methods and/or by hand. It is intended that all sites will be practically weed - free through this process. Weeds determined by the City of Santa Ana to be objectionable shall result in a penalty assessed against Contractorfor each affected site. Contractor shall provide the same weed control in cracks, expansion joints and other small openings in the sidewalk/curb area. 1.5.2 DISEASE AND PEST CONTROL The Contractor shall regularly inspect all landscaped areas for presence of disease, insect or rodent infestation. The Contractor shall advise the City of Santa Ana within forty eight (48) hours of when disease, insect, or rodent infestation is found, and the action to be taken. Upon approval of the City of Santa Ana, the Contractor shall implement approved control measures, following all Federal, State, County, and municipal laws, regulations and ordinances required for the approved work. Approved control measures shall be continued until the disease, insect or rodent is controlled to the satisfaction of the City of Santa Ana. The Contractor shall utilize all safeguards necessary during disease, insect or rodent control operations to ensure safety of the public and the employees of the Contractor. City of Santa Ana- RFP 19-048 Landscape Maintenance Services of WH Id lUes 8pd Santa Ana Regional Transportation Center All pesticide operations, where required, shall be performed by a Qualified Applicator as certified by the State of California Department of Pesticide Regulation. The Contractor shall be responsible for compliance with all local, state, and federal laws and regulations regarding pesticide usage. Contractor shall provide complete and continuous pest control and/or eradication of all pests or diseases in accordance with the specifications contained herein. 1.6. IRRIGATION SYSTEM MAINTENANCE 1.6.1 GENERAL RESPONSIBILITIES Irrigation shall be done by the use of automatic or mechanical sprinkler systems, where available and operable, or manually; however, failure and/or damage of the existing irrigation system to provide full and proper coverage shall not relieve the Contractor of the responsibility to provide adequate irrigation with full and proper coverage to all areas in the contract work site. Newly planted trees, shrubs, ground cover, and turf shall receive special attention until these plants are established. Adequate water shall be applied to promote normal healthy growth. Proper berms or basins shall be maintained during the establishment period. Any damages to public or private property resulting from excessive irrigation water or irrigation water runoff shall be charged against the contract payment unless immediate repairs are made by the Contractor to the satisfaction of the City of Santa Ana. Contractor shall vacuum all irrigation cabinets and controllers, both inside and outside, and maintain in a thoroughly clean condition at all times. 1.6.2 OPERATION OF AUTOMATIC IRRIGATION CONTROLLERS Where the operation of automatic irrigation controllers is required as part of this contract, the Contractor shall: • Do not duplicate any coded City key furnished by the Public Works Agency for access and operation of the controller. • Surrender all keys furnished by the Public Works Agency at the end of the contract period, or at any time deemed necessary by the City of Santa Ana. • Protect the security of City property by keeping controller cabinets and building doors locked at all times • Refrain from using premises behind locked doors for storage of materials, supplies or tools, except as approved by the City of Santa Ana. • Program normal irrigation between the hours of 10:00 p.m. and 4:00 a.m. ores required. City of Santa Ana - RFP 19.048 Landscape Maintenance Services of Water Facilities and Santa Ma Regional Transportation Center 25H-22 1.6.3 WATER CONSERVATION The Contractor shall turn off irrigation system during periods of rainfall and times when suspension of irrigation is desirable to conserve water while remaining within the guidelines of horticulturally acceptable maintenance practices as determined by the City of Santa Ana. When the City of Santa Ana acknowledges the necessity to turn on the water once again, all controllers shall be activated within twenty-four (24) hours. After 24 hours, the City of Santa Ana at his discretion may elect to activate the controllers with City forces. 1.6.4 IRRIGATION SYSTEM MONITORING & INSPECTION All irrigation systems shall be inspected and adjusted on a weekly basis or more frequently as required, considering the water requirements of each remote control valve. The Contractor shall physically inspect (by manual or semi -automatically running the Controller) the operation of all systems weekly. The Contractor shall maintain all sprinkler systems in such a way as to guarantee proper coverage and full working capability, and make whatever adjustments are necessary, including but not limited to, adjustment of heads or inserts, or replacing of inserts, etc., to prevent excessive over spray/runoff into street right-of-ways or other areas not intended to receive Irrigation over spray/runoff. Controllers shall be programmed to water during nighttime hours between approximately 10:00 p.m. and 4:00 a.m. or upon request/when required. Contractor shall observe and note deficiencies occurring from the original design of facilities and review these findings with the City of Santa Ana so necessary improvements can be considered. Authorization must be obtained from the City before proceeding with work not covered under normal maintenance work and the malfunctioning sprinkler system area shall be irrigated by a portable irrigation method until all authorized repairs have been completed to the City's satisfaction. All areas receiving marginal coverage shall be irrigated by a portable irrigation method. The Contractor shall furnish all hoses, nozzles, sprinklers, etc., necessary to accomplish this supplementary irrigation. Care shall be exercised to prevent waste of water, erosion, and/or detrimental seepage into existing underground improvements or structures. Contractor shall submit a quarterly (or upon request) irrigation report to the City of Santa Ana. The report shall be of the format required by the City of Santa Ana and shall include, but not be limited to, controller location, address, type of controller, number of stations, and schedule for each station, turf, ground cover or shrub irrigation, condition of site, and repairs made for each station. Contractor shall provide irrigation personnel fully trained in all phases of landscape Irrigation systems operation, maintenance, adjustment, and repair. This is to include diagnosis and repair of controllers, valve wires, control valves, lateral lines, gate valves, main lines, strainers, pressure regulators, backflow devices, moisture sensors, master valves, and electric pedestals. Contractor shall maintain an adequate stock of medium and high usage items for repair of all irrigation systems. Automatic controllers and/or enclosures shall be locked while unattended. Contractor shall maintain a log at each controller location. Contractor shall provide efficient use of water at all times. The controllers shall be programmed and monitored to maintain adequate moisture, optimal for growth and appearance, while eliminating City of Santa Ana - RFP 19&o48 Landscape Maintenance Services of Wr rEp II es Et]ti.5anta Ana Regional Transportation Center excessive runoff. Adequate soil moisture shall be determined by visual observation, plant resiliency, and turgidity, examining cores removed by soil probe, moisture sensing devices, and programming irrigation controllers accordingly. Considerations must be given to soil texture, structure, porosity, water holding capacity, drainage, compaction, precipitation rate, runoff, infiltration rate, percolation rate, evapotranspiration, seasonal temperatures, prevailing wind condition, time of day or night, type of plant and root structure. Compensation for irrigation system monitoring and inspection shall be considered included in other items of work and no additional compensation will be allowed. 1.6.5 IRRIGATION & DRAINAGE SYSTEM MAINTENANCE Once a year during the month of March, Contractor shall wipe down the equipment in the irrigation controller cabinet to remove all dust and dirt, clean all electrical connections, install bait traps for control of ants, replace batteries as required, clean and remove intruding soil in valve boxes and replace gravel, as originally specified. All hinges and locks shall be regularly oiled to ensure trouble free operation. All controller enclosures must be painted in approved colors, as needed, to prevent rusting and maintain good appearance. Sprinkler heads shall be kept clear of overgrowth that may obstruct maximum operation. Repairs made to the irrigation system must be made in accordance with the system's original design with products equal to or higher quality than currently provided. Workmanship shall be performed in accordance with industry standards. All leaking or defective piping, valves, or other system components shall be repaired within twenty-four (24) hours of detection. Particular attention shall be paid to all slope areas, which will, by physical nature, provide for greatest potential runoff, which can contribute to erosion. Contractor shall turn off controllers when adequate rainfall is anticipated. In the event of irrigation system failure, manual watering required to keep the plant material in a vigorous, healthy condition is to be provided by Contractor and the irrigation system shall be repaired immediately at no additional cost to the City. At no time shall Contractor utilize a fire hydrant for irrigation purposes. Contractor will keep system in operation by valve or head adjustment to keep all systems operating at manufacturer's recommended operating pressure. This shall be accomplished by valve throttling pressure gaging. The valves should be throttled to prevent sprinkler heads from fogging, allowing droplets for effective watering. The City of Santa Ana may request a coverage test to evaluate proper settings, timing, usage, or maintenance of system. Clty of Santa Ana - RFP 19.048 Landscape Maintenance Services of Water Facilities and Santa Ana Regional Transportation Center 25H-24 All valve boxes, controllers, and backflow devices shall be kept clear of plant growth. Contractor shall be responsible for periodic inspection of surface drains located within the landscaped areas. These drains shall be checked to assure proper functioning. Remove any debris or vegetation that might accumulate at the inlet and prevent proper flow of water. Any erosion damage because of Contractor's failure to keep the surface drains clear shall be repaired at Contractor's expense. Irrigation and drainage system repairs shall be compensated on a time and materials basis as agreed to by the Contractor and the City. 1.7. GENERAL MAINTENANCE AND CLEAN-UP The Contractor shall collect all clippings, trimmings, cuttings, rubbish and debris, and posted signs at all work sites and dispose of same in a lawful manner per contract requirements at the Contractor's expense. All trash and debris shall be removed from all worksites a minimum of one (1 ) time per week. The Contractor shall rake, hand remove, or vacuum leaves that are not absorbed by planting. This shall be done as often as required to maintain a neat appearance, or prevent plants from being smothered by seasonal leaf drop at least weekly or as directed by City of Santa Ana. After heavy windstorms, the entire contract area shall be cleaned of litter, fallen branches, etc. Contractor shall respond to calls from City of Santa Ana immediately. Contractor shall patrol all areas for trees down, fallen branches, hanging branches, debris, and other potential hazards. The Contractor shall keep sidewalks and all paved areas in the medians and under overpasses swept and cleaned of any debris, weeds, dirt, or soil. Tree wells shall be maintained weed free. 1.8. OTHER REQUIREMENTS 1.8.1 NEW CONSTRUCTION Where new construction or redevelopment may involve a significant part of a work site, the City of Santa Ana may delete a portion of or the entire work site from contractual maintenance during the construction and plant establishment period. The deletion of this portion of work will be reflected as a reduction in the monthly payment to the contractor. The amount of reduction will be based on the percentage of area involved and agreed upon by the City and the Contractor. 1.8.2 INSPECTION The City of Santa Ana shall weekly and/or as needed/upon request inspect the work area to ensure adequacy of maintenance and that methods of performing the work are in compliance with the contract. However, this shall not be construed to relieve the Contractor's supervisor of the duty to provide continuous inspection of the work area. Contractor shall provide a dedicated supervisor to Santa Ana City of Santa Ana - RFP 19-048 Landscape Maintenance Services of Wa,�rF,ilil iges nta Ana Regional Transportation Center for this contract. Discrepancies and deficiencies in the work shall be corrected by the Contractor immediately. The City expects a high level of service and maintenance. 1.8.3 NEW MAINTENANCE AREAS Additional routine maintenance may be added to this contract. Payment for add -on maintenance shall be computed based on specified rates provided by the contractor. 1.8.4 DAMAGE REPAIR All damage incurred by the Contractor's operations shall be repaired or replaced in kind and size at the Contractor's expense. Irrigation repairs shall be completed within twenty-four (24) hours using approved materials. Non -irrigation repairs shall be completed within seven (7) working days and shall be repaired using only pre -approved materials. Contractor shall be responsible for repair -related maintenance such as, but not limited to, watering and fertilizing of replaced plant materials until accepted by the City of Santa Ana. 1.8.5 VANDALISM Contractor shall immediately report damaged landscaping caused by vandalism or vehicle accidents to the City of Santa Ana. 1.8.6 ANNUALS Areas designated for annuals planting shall be rotated on a triannual (three times a year) basis. Appearance of designated areas shall be kept fresh and vigorous at all times. PART If: SCHEDULING OF WORK The Contractor shall accomplish all routine landscape maintenance required under this contract between the hours of 6:00 a.m. and 6:00 p.m., Monday through Friday. The City of Santa Ana may grant, on an individual basis, permission to perform maintenance at other hours. No maintenance functions that generate excess noise, which would cause annoyance to residents of any area, shall be commenced before 8:00 a.m. No Saturday or Sundaywork is to be scheduled without permission from the City of Santa Ana, unless it is an emergency situation. The Contractor shall establish a schedule of routine work to be followed in the performance of this contract. A copy of this schedule shall be provided to the City of Santa Ana prior to the performance of any work required by these specifications, and any changes in scheduling shall be reported in writing to the City of Santa Ana immediately. Routine maintenance Locations shall not be interrupted/not completed as schedule without prior approval of the City of Santa Ana. The Contractor shall conduct the work at all times in a manner which will not interfere with pedestrian traffic on adjacent sidewalks or vehicular traffic on adjacent streets. All work performed under this contract shall be performed in such a manner as to provide maximum safety to the public, to the Contractor, and where applicable, comply with all safety standards required by CAL -OSHA. In City of Santa Ana - RFP 1"48 Landscape Maintenance Services of Water Facilities and Santa Ana Regional Transportation Center 2sw-26 addition, a special notification listing exact starting date for renovation, pruning and other infrequent operations, shall be furnished to the City of Santa Ana at least five (5) working days in advance of performing these operations. 1. LEVEL OF MAINTENANCE All work shall be performed in accordance with the HIGHEST INDUSTRY STANDARDS, as stated in the enclosed maintenance specification description. Standards and frequencies may be modified from time to time as deemed necessary by the City for the proper maintenance of the sites. If, in the judgment of the City, the level of maintenance is less than that specified herein, the City shall, at its option, in addition to or in lieu of other remedies provided herein„withhold appropriate payment from the Contractor until services are rendered in accordance with specifications set forth within this document and providing no other arrangements have been made between the contractor and the City. Failure to notify of a change and/or failure to perform an item of work on a scheduled day may result in deduction of payment for that date, week or month. Payment will be retained for work not performed until such time as the work is performed to City standards. The Contractor is required to correct deficiencies within the time specified by the City. If noted deficient work has not been completed, payment for subject deficiency shall be withheld for current billing period and shall continue to be withheld until deficiency is corrected, without right to retroactive payments. 2. QUALITY OF WORK AND MATERIAL All material and equipment furnished by the Contractor shall be new, high grade, and free from defects and imperfections, unless otherwise hereinafter specified. Workmanship shall bein accordance with the best standard practices. Both materials and workmanship shall be subject to the approval -of the City of Santa Ana. All materials used shall be approved in advance by the City of Santa Ana. The City reserves the right to purchase materials directly and make them available to the Contractor. In the event the City exercises the option to purchase the materials, the following conditions will apply: ❑ Contractor shall conform to all City practices and procedures. ❑ Contractor shall comply to all safety regulations by City and CAL OSHA. ❑ All City purchases will be for the sole expressed use of and for the City. ❑ The Contractor shall secure, store, inventory, distribute and control all materials entrusted to the Contractor's representatives. All materials and inventories shall be made available to the City upon request. a. SUPERVISION OF CONTRACT All work shall meet with the approval of the City of Santa Ana. Any specific problem area which does not meet the conditions of the specifications set forth herein shall be called to the attention of City of Santa Ana - RFP 19-048 Landscape Maintenance Services of W'2Irk It s 2—d-Santa Ana Regional Transportation Center the Contractor and if not corrected, payment to the Contractor will not be made until the condition is corrected in a satisfactory manner as set forth In the specifications. 4. WORKMANSHIP AND SUPERVISION Work shall be performed by competent and experienced workers. The work force shall include a thoroughly skilled, experienced, and competent supervisor who shall be responsible for adherence to the specifications. All personnel shall be neat in appearance and in uniforms. All personnel shall wear identification badges or patches. Those employees working in or adjacent to traffic lanes shall wear safety vests and follow all necessary safety procedures at the facilities. Persons employed by the Contractor who are found not to be satisfactory by the City shall be discharged or reassigned by the Contractor on fifteen (15) days' notice from the City. 5. SAFETY REQUIREMENT The contractor shall provide a safety data sheet (SDS) for all chemicals including but not limited to pesticides, herbicides, etc. to the City of Santa Ana prior to utilization. All work performed under this contract shall be performed in such a manner as to provide maximum safety to the public and where applicable, comply with all safety standards required by CAL -OSHA. The City of Santa Ana reserves the right to issue restraint or cease and desist orders to the Contractor when unsafe or harmful acts are observed or reported relative to the performance of the work under this contract. All contractor vehicles shall have a "W.A.T.C.H." work area traffic control manual at all times. The Contractor shall maintain all work sites free of hazards to persons and/or property resulting from his/her operations. Any hazardous condition noted by the Contractor, which is not a result of his/her operations, shall be immediately reported to the City of Santa Ana. The City can cancel or stop work at any time when the safety of the Contractor, the public, etc. is compromised. The contractor shall assure that each employee or subcontractor under the contractor's supervision Is trained in the work practices necessary to safely perform his or herjob. The contractor will assure that each employee or subcontractor under the contractor's supervision is instructed in the known potential hazards related to his or her job. The contractor shall assure that each employee or subcontractor under the contractor's supervision follows safety rules and safe work practices. 6. SCHEDULES 6.1. ANNUAL SCHEDULE ❑ The annual schedule shall be submitted for City approval within fifteen (15) calendar days after effective date of the contract. ❑ The Contractor shall submit revised schedules when actual performance differs substantially from planned performance. City of Santa Ana - RFP 19-048 Landscape Maintenance Services of Water Faalltles and Santa Ana Regional Transportation Center 25H-28 6.2. WEEKLY SCHEDULE ❑ Changes to the schedule shall be received by the City of Santa Ana at least twenty- four (24) hours prior to the scheduled time for the work. ❑ Failure to notify of a change and/or failure to perform an item of work on a scheduled day may result in deduction of payment for that date, week, or month. ❑ The Contractor shall adjust his/her schedule to compensate for all holidays and rainy days. Maintenance and litter removal shall be scheduled for all holidays and rainy days, unless otherwise indicated by the City. 6.3. DAILY SCHEDULE ❑ Contractor must utilize City of Santa Ana provided cyber key to check in and out of facilities. ❑ Changes to daily schedule can be made verbally or by email to the City of Santa Ana. 7. PERFORMANCE DURING INCLEMENT WEATHER During periods of storms, Contractor will provide supervisory inspection of the project during regular hours to prevent or minimize possible damage from inclement weather. Contractor shall submit a report identifying any storm damage to the City of Santa Ana attached to a site map identifying location of damage and cost estimate to repair/replace. If remedial work is required beyond the scope of this contract, it shall be considered as extraordinary work. During periods of inclement weather, i.e. rain/wind; Contractor's workforce shall accomplish work not affected by such weather, i.e. litter pick up/spent blossom removal; preventative maintenance, etc. Contractor shall stake and re -tie trees as required. Drains shall be checked and cleaned as necessary. Contractor shall remove all branches and debris resulting from inclement weather. Contractor may be required to perform additional clean-up tasks due to inclement weather. 8. MATERIAL The Contractor shall submit a list to the City of Santa Ana of all materials that the Contractor proposes to use in the execution of this work. The list shall include the chemical analysis, recommended usage and any other pertinent data by the manufacturer of material. Said list shall be submitted before use of any product, pursuant to the provisions of this agreement. All materials used or submitted shall be in full compliance with all Federal, State, County, and local agency laws, guidelines and requirements. The following shall apply to the material indicated: Fertilizers shall be complete, furnishing the required percentage of nitrogen, phosphoric acid and potassium to keep lawns, trees, shrubs, and other plants in a healthy and vigorous growing condition. City of Santa Ana - RFP I M48 Landscape Malnrenance Services of Wa]ar FgdliVS %V&nta Ana Regional Transportation Center • Insecticides, fungicides, herbicides, and rodenticides shall be of the best quality obtainable, properly labeled with guaranteed analysis, and brought to the job site in the manufacturer's original container. • Tree stakes, tree ties and guy wires shall be of materials matching those existing in the work site or as specified by the City of Santa Ana. • Replacement trees, shrubs, ground cover, and other plants shall be of a size, condition and variety specified by the City of Santa Ana. • Replacement plant materials may be inspected by the City of Santa Ana prior to planting. • The City of Santa Ana shall determine replacement lawn sod. 9. RECYCLING/DISPOSAL All organic waste (including leaves, grass clippings, brush, branches, and tree parts) resulting from work performed under this contract shall be recycled through composting or processing for use as mulch. Organic waste cannot be taken to the landfill. The names and addresses of the licensed green -waste composting or processing companies, and haulers, along with the tonnages used and receipts, shall be provided to the City of Santa Ana in a monthly written report and an annual written report. A hundred percent (100%) of all landscape debris will be disposed of through a landscape material recycling center or reused in some manner. The Contractor shall dispose of all cuttings, weeds, leaves, trash, and other debris from the operation as work progresses. The City shall not be responsible for the disposal. Contractor shall pay all disposal fees and provide documentation evidence of recycling to include location, tonnage, etc. to the City. At no time is the Contractor permitted to use City dumpsters. M111111:7�1•167TRa The Contractor shall, within fifteen (15) days of the effective date of an executed agreement, prepare and submit a written annual maintenance calendar to the City of Santa Ana. This maintenance calendar shall clearly Indicate all of the landscape maintenance tasks required by this agreement and the months of the year they are scheduled to be performed. If it is necessary to make periodic revisions to this maintenance schedule, a modified calendar must be submitted to the City of Santa Ana for approval prior to the date the changes are to take effect. 11. EMERGENCY SERVICES The Contractor shall provide the City with names and telephone numbers of at least two qualified persons who can be called by City representatives when emergency maintenance conditions occur during hours when the Contractor's normal work force is not present in the City of Santa Ana. These Contractor representatives shall respond to said emergency within twenty four (24) hours from receiving notification. 12. UNDERGROUND EXCAVATIONS City of Santa Ana - RFP 1 M48 Landscape Maintenance Services of Water Facilities and Santa Ana Regional Transportation Center 25W-30 Contractor shall be responsible for locating all underground utility lines to insure the safety of his/her work crew and to protect, in place, existing utility equipment before commencing any excavation. Contractor shall contact the City of Santa Ana and Underground Service Alert (811) 48 hours before commencing any excavation, to locate underground service lines. Maintenance Frequency Schedule Turf Maintenance Mowing OnceMeek Edging OnceMeek Clipping Removal Once/Week String Trimming CinceNVeek Fertilize Four (4) times a year Pest and Weed Control Continuous/As needed Visual Inspection Weekly Chemical Weed Control Continuous As needed Ground Cover Maintenance Trim Monthly Fertilize Four (4) times a year Pest and Weed Control Continuous/As needed Visual Inspection Weekl Pre -emergent herbicide once a y ear or as needed Shrub, Vine and Tree Maintenance Trim Shrubs Monthly or sooner if needed Vines Six (6) times a year Trees Continuous/As needed Fertilize Four P4 times a year Visual Inspection 7 l ee y Pre -emergent herbicide Continuous/as needed Hardscape Maintenance Weekly Grounds Poll Ing/Litter Removal All Areas Weekly --End of SCOPE OF WORK Section. -- City of Santa Ana - RFP 19-048 Landscape Maintenance Services of W029WIl ants Ana Regional Transportation Center Appendix ATTACHMENT 3: SITE LOCATIONS & MAPS SITE LOCATIONS Site Site Name Address Square Feet Turf Maintenance Ground Cover Shrub, Tree, Vine Hardscape # (approx) (Grass) Maintenance Maintenance Maintenance 1 Elevated 14th/Polnsetta, Tank Santa Ana, CA 92701 6,000 X X 2 Cambridge 2736 N Cambridge St. 31,300 X X X Station Santa Ana CA 90701 3 East Station 1730 S. Santa Fe, 56,300 X X X Santa Ana CA 92705 4 J. Garthe 2401 N Bristol St, 100,800 X X X X Station Santa Ana, CA 92706 5 South 1727 W Alton Ave, 79,800 X X X Station Santa Ana, CA 92705 6 West 209'/< S Mountain Station View, Santa Ana, CA 36,100 X X 92703 7 Walnut 723 W Walnut St, 6,600 X X X Santa Ana CA 92701 8 Well 16 1011 W 6th St, Santa 490 X Ana CA 92703 9 Well 21 4426 W 1st St, Santa 2,9D0 X Ana, CA 92703 10 Well 24 1800 W 22nd St, Santa 1,270 X X X Ana CA 92706 11 Well 29 101 S Flower St, Santa 1 900 X Ana CA 92701 12 Well 30 4426 W 1st St, Santa 3,900 X X Ana CA 92703 13 Well 33 917 W Walnut St, 5,200 X X X X Santa Ana CA 92703 14 Well 31 1815 E Chesnut St, 380 X X X Santa Ana CA 92701 15 Well 35 1718 N Sydney PI, 7 150 X X X Santa Ana CA 92706 16 Well 37 2007 W. McFadden 2,550 X X X Santa Ana CA 92704 17 501 a/4 W Memory PRV-1 Lane, Santa Ana CA 3,100 X X X 92706 18 Washington 627 E Washington Ave, 31,000 X X Santa Ana CA 92701 19 Flower 202 S Flower Ave,F4700 X X Santa Ana CA 92703 20 1000 E Santa Ana SARTC Blvd, Santa Ana, CA X X X X 92701 City of Santa Ana- RFP 19-945 Landscape Maintenance Sanrlces of Water Facilities and Santa Ana Regional Transportation Center 25H-32 SITE MAPS City of Santa Ana - RFP %048 Landscape Maintenance Services of W4 La lit s r d nta Ana Reglonal Transportation Center 25H-34 � . <l� � % J �� r r r r r r, r r, M 25H-36 I I 1-i I'A ui 25H-38 m 25H-39 770 25H-41 Y T fi 3 I N 1- 3 L W w m O 0 25H-45 m 25H-46 Ln 25H-48 0 25H-50 25H-51 .41 e 25H-53 i JIM A it' t1 25H-55 EXHIBIT B Request for Proposal for Landscape Maintenance Services for Water Facilities and Santa Ana Regional Transportation RFP NO.: 19-048 Submitted By Swayzer Corporation it V 5 WAY R LandXa; 1665 East Del Arno Blvd. Carson, CA 90746 Tel; 323-979-7223 • Fax: 310-764-5069 25H-56 jp Swayzer Corporation 1665 East Del Amo Blvd, Carson, CA 90746 Phone Number. 323-979.7223 SWAYZER Website: swayland.com Landscapes Email: info@swayland.com Table of Contents Cover Letter Contract Agreement Statement Firm and Team Experience Understanding the Scope of Services Relevant Experience and References Appendix - Attachment 2 • Fee Proposal Appendix - Attachment 6: Certificatlons • Non -Collusion Affidavit • Non -Lobbying Certification • Non -Discrimination Certification 1 2 3 7 10 11 13 25H-57 if Swayzer Corporation VjV 1665 East Del Amo Blvd, Carson, CA 90746 5WAYZA Phone Number. 3-979-7223 LmdscepssE Email: info swa land.com RE: Request for Proposal (RFP) for Landscape Maintenance Services for Water Facilities and Santa Ana Regional Transportation (RFP NO.:19-048) Thank you for the opportunity to conduct business with the City of Santa Ana. We look forward to the bidding process and hope to be a successful bidder. We are pleased to submit our proposal for landscape maintenance services for water facilities and Santa Ana Regional Transportation center. We propose to provide our services of pest control, turf maintenance, ground cover and shrub maintenance, hardscapo maintenance, tree care, along with litter and graffiti removal. We also will provide Irrigation system maintenance. Our approach Is to provide the City of Santa Ana and its residents with professionally maintained landscapes at the highest industry standards they can be pleased with. Swayzer Corporation is family owned and operated with over 41 years of experience In commercial and municipal landscaping. We have demonstrated our capacity to maintain municipalities over the years in cities such as Carson, Burbank, and Lynwood. We are tremendously proud of our experience and knowledge In maintaining landscapes. Our company currently employs over 100 trained and professional employees that can provide landscape maintenance and all related services needed by the City of Santa Ana. We have responsibly analyzed the RFP and addendums, in addition to reviewing all sites. This statement Is signed by an officer of Swayzer Corporation who can make legally binding commitments for this entity. Thank you for your consideration, Samuel Swayzer, resident & Founder Swayzer Corporation 25H-58 Swayzer Corporation 1665 East Do] Amo Blvd. Carson, CA 90746 Phone Number: 323-979-7223 SW.yZER Lendscapk Website: swayland.com Emall:lnfo@swayland.com Contract Agreement Statement Swayzer Corporation concurs with all provisions contained In the agreement attached as Attachment 2: Standard Agreement in the Appendix of RFP NOA 9-048, Samue Swa er resid Yz Swayzer Corporation 25H-59 AP Swayzer Corporation �W 1865 East Del Amo Blvd. Carson, CA 90746 Phone Number: 32"79-7223 5WAYZER Website: swayland.com Landscapes Email: info@swayland.com Swayzer Corporation is a family owned and operated company with 41 years of experience In the landscape Industry. About Us in 1978, Samuel Swayzer founded our company providing commercial street sweeping, landscaping, and Janitorial services. Today, Swayzer Corporation specializes In municipal, commercial, and residential landscaping, In addition to Janitorial services. We offer a full range of services Including landscape installation, landscape maintenance, tree trimming, Irdgetlon Installation and repair, landscape lighting Installation and repair, landscape pest control, and public works. We have a team of experienced professional landscapers ready to meet your property's needs. We believe every landscape has hidden potential. Our goal Is to maximize your landscape's potential by utilizing current horticultural practices and our decades of experience to achieve solutions. We serve Los Angeles, Orange, Inland Empire, Ventura, and San Bernardino Countries Our Mission tatement To provide high quality, affordable, and convenient landscape services to our customers Our Corporate Team Samuel Swayzer — President and Founder Regina Swayzer — Vice President License California Contractor's License # 1003435 Expires 05/31/2021 Past Control License #42652 Expires 12/31/2019 Services Offered • Landscape Maintenance • Landscape Installation • Landscape Design • Irrigation System Design • Irrigation System Installation • Pest Control • Litter Removal Class C27 • Graffiti Removal • Tree Pruning • Tree Removal • Emergency Tree Services • Hardscape Maintenance 3 25H-60 V51 s1AZEA Past and Present Prolects • California Department of Motor Vehicles - Landscape maintenance- 5 locations • City of Burbank Department of Water and Power - Landscape maintenance-44locatlons • Exposition Park - Landscape maintenance -160 acres City of Compton Median and Parkway - Landscape maintenance- medians and parkways • City of Compton Gateway Town Center Corridor - Landscape construction - median and parkway renovation • Los Angeles County Agriculture Commissioner - Weed abatement • City of Carson - Landscape maintenance- medians, parkways, parks, Civic Center, City Hall - Tree trimming - medians - Landscape construction and renovation - medians • City of Lynwood - Vacant, property maintenance • California State University, Fullerton - Street sweeping • California State University, Dominguez Hill - Street sweeping • University of California, Los Angeles - Janitorial maintenance • Fleet Pride - Landscape maintenance • Tri-Cap International - Landscape maintenance • Greater Zion Church Landscape maintenance 25H-61 sgugR Swayzer CornoManaoement We have a team of professional landscapers ready to meet your property's needs. Our company currently employs over 100 employees and all of our staff members have Years of experience and several hold various license and oerliff cation for the services we provide. • Samuel Swayzer - Founder/President - 45 years of experience in landscape Installation and maintenance • Regina Swayzer-Vice President - 40 years of experience in finance and contract management ® Aleces Morris - Employee Relations Manger - 28 years of experience in human resources • Elijah Sway7sr III -General Manager - 15 years of experience in landscape maintenance and construction management • Ezekiel Swayzer- Operations Manager - 12 years of experience In landscape maintenance operations - Qualified Applicator License • Luellen Swayzer- Lead Horticulturalist and Pest Control Advisor - 5 years of experience In commercial horticultural and Integrated pest management - Pest Control Advisor License • Gabriel Ramos -Irrigation Systems Specialist - 20 years of experience in irrigation system management and Installation • Manuel Santillan - Landscape Supervisor - 32 years of experience in landscape maintenance and Irrigation systems management • Julio Monchaca Orozco - Landscape Supervisor 30 years of experience in landscape maintenance and irrigation systems management • Glenn Washington - Landscape Supervisor - 10 years of experience in landscape maintenance and Irrigation systems management • Beachamp Lokent - Lead Groundskeeper - 8 years of experience In landscape maintenance 25H-62 Names and aualificatlons of Roy personnel Swayzer Corporation has experienced personnel who make up the management and supervisory staff, The following are the qualifications of our management team for this project. The assigned project managers will be the primary contacts for this project. These people will be responsible for coordinating crows and scheduling equipment. They will also be responsible for site inspections, quality control, and customer satisfaction. Ezekiel W. Swayzer — Operations Manager • 12 years of experience in landscape operations Horticulture Studies at Long Beach City College • Qualified Applicator License • Certified Recycled Water Site Supervisor Luellen E. Swayzer -Lead Hortioulturallst • & years of experience in commercial horticulture and landscape operations M.S. In Plant Science, University of Georgia • B.S. In Plant Science, Cal Poly Pomona • DPR Pest Control Advisor License With over 100 employees and continuous recruitment we have a pool of qualified candidates for this project. 0 IN 5W=gR 25H-63 STA7 UCENBEOBOARD ACTIVE LICENSE ..,� ." 1003436 — CORP »..,.. SWAYXER CORPORATION DSA SWAYZER LANDSCAPES n4 05/31/2021 www.cs)b.ca.gov 25H-64 OEPARTMENT OF PESTIOMROOULMON ,.. pLICENSINOICORTIFICAITON PRCORALI OUALIFIEO APPLICATOR LIL'E11EE LICENSE#:146880 EXPIRES:1213112019 Categories: S ISEUed: 2/27/2018 11e03Enos oW SAMO BBL DER CARSON, CA,90746 (� z ,LJ'..' OWN i°� �� .�4 1NWwrwmalM,hem C Mll .np d P, Danlvru Wmtl„Imwv,—rpvni CALIFORNIA DEPARTMENT OF PESTICIDE REGULATION 10011 STREM SACRAMEN'rO, CALIFORNIA 95814 ISSUED: August 17, 2018 Maintenance Gardener Pest Cant EXPIRESL Dacember31,2019 LiCCNSE LICENSE NO.42652 Imalid IPlnsnretwe mul/or ynDliflnd l>Crson(s) Ispse Ueaua expiratioll date. MaIIII18 Address flusiness LOcali= WAVER LANDSCAPES SWAYZER LANDSCAPES PO BOX 4365 1665E DEG AMO ELVD CARSEN, CA 90746 CARSON, CA 90746 M IMMINENTLY IN PUBLIC VIEW ANY CHANGE IN O WNENSHIP RE01 25H-65 rJprpNLl06l eINOMERPCA rv?IiOORAMN lS'/�11ur.// AORICULTURALPMTCONTROL AOVIS 409Mc UCENSEIN.,147280 EXPIRES: 12131TLv,e Categorles: BE Issued: 7!3l2018 1665 E DELAM WB VDZER CARSON, CA,00745 ndu wn.mu.la.Mrnamvnan«,ev+. aauwrtma' ICemMuuonnupMM1ount 25H-66 sw,,�u2�a Proposed Scope of Work Swayzer Corporation will provide landscape services to the specifications provided by the scope of work also in accordance with the highest horticultural standards. 1_andscaoa Maintenance All planted areas will be cleaned of dead plant materials, as needed. All hedges, ground cover, and vines will be trimmed as scheduled monthly, also as needed for walkway and road clearance. All ground cover shall be maintained with a 12" clearance between different plant material and kept within Its Intended bounds. All shrubs will be pruned within reasonable bounds to prevent encroachment of walkways and signage. Turfgrass areas will be mowed and edged weekly. Turf mow height shall be determined by the dominant species present at each location, Prior to mowing, all turf areas will be Inspected for debris. Detaching with a vertical mower and core aeration will be performed once a year to promote vigorous turf growth. Overseeding with perennial ryegrass will be performed to ensure there Is green turf year around. Fertilizers will be applied to turtgrass, shrubs, and other plant material no less than four times a year to promote healthy growth. We will remove all litter and debris from each scheduled section dally and compete a general safety inspection. Weed control will be performed daily In accordance to the schedule to a ensure neat appearance. All landscape debris will be disposed of through a green waste recycling center. Tree Care At Swayzer Corporation, we perform tree care to the standards of International Arborist Society (ISA) and American National Standards institute (ANSI). All trees within the scope of work shall be maintained to keep the natural Integrity and shape of the tree and promote tree health. All trees within the locations will be monitored for potential hazards. An application of a complete fertilizer will be applied annually. Staff Our staff model for the landscape sites starts with the area supervisor that is responsible for supervising all sites In an assigned area. Following the area supervisor is the on -site supervisor who reports twice a day to their supervisor. The area supervisor reports daily to project and operation managers concerning work completed and any other Issues. All supervisor and managers are required to have a smart phone capable of sending photos, text messages, and emails. All on -site crew are trained to constantly Inspect and police all sites to avoid discrepancies and deficiencies. All staff are required to wear a high visibility work shirts and safety vests with the company's name and logo. Identification badges are only used when required by the site being serviced. 25H-67 VJV SWA &ER Trash ReMoval and Disposal All litter and unwanted natural or environmental materials shall be removed from site and disposed according to applicable laws, codes, and requirements. Workers will inspect each site for safety hazards as they perform their daily task. Irrigation Maintenance Our Irrigation technician will maintain all Irrigation systems automatic controllers and manual systems throughout the city on a weekly scheduled basis. The technician will survey and adjust watering periods to properly Irrigate planters and turf areas. Technicians and all staff will comply with the City of Santa Ana's water conservation requirements. All Irrigation plumbing Including main and lateral lines, valves, sprinkler heads, fitting shall be repaired and replaced as needed. All leaks or other malfunctions shall be corrected with In 24 hours. An emergency number shall be provided for any irrigation emergencies that occur. Our Irrigation technician will keep a log of each controller and will compile a monthly report. Irrigation shall be scheduled between hours specified In the RFP. Pest Control On -site staff will perform weekly surveys of all landscaped areas for pest problems. If a pest problem arises staff will notify supervisory staff and our pest control advisor (PCA) will make a recommendation, Our PCA will make recommendations using integrated past management practices In accordance with the Department of Pesticide Regulation and the City of Santa Ana. If necessary, all pesticide applications will be made or supervised by a qualified applicator (QAL). Maintenance Schedule if awarded and prior to start, a detailed work schedule will be submitted to the City of Santa Ana for approval. Changes to the planned schedule will be submitted to the city at least 24 hours prior to work. 1J�o�c,Slte Safefv Our staff will conduct weekly safety meetings concerning proper procedures for working. Work site safety Is strongly enforced by our supervisors and management staff, We provide all staff with required personal protection equipment required by OSHA. All vehicles are supplied with first aids kits for any incidence that may occur. We will Inspect work sites daily for unsafe conditions and take the necessary actions to fix the Issue. Traffic Controls Our lead employees will enforce necessary standards and guidelines for traffic controls In accordance with the Manual on Uniform Traffic Control Devices (MUTCD). We will provide a mounted arrow board for all lane closures, If necessary. 25H-68 VIP �WAYZjR Equlpaient and Vghlcies All equipment and vehicles used for all sites bear the company name, logo, and telephone number. Additional signage requirements will be employed as desired by each site. We perform quarterly maintenance on all vehicles and equipment to ensure they are mechanically and operationally sound. All vehicles have 360-degree operations traffic notification light bars All vehicles will have a Work Area Traffic Control Handbook (W.A.T.C.H.) at all times. Client Communication and Emergency Sikmtions Frequent communication with the City of Santa Ana is Important for customer satisfaction. Our supervisory staff will keep an open line of communication with the city's staff on a regular basis. We will provide two primary contacts and an additional polnt of contact to ensure expeditious responses to any concerns. We also have a 24-hour emergency line which can be called If anything within the scope of work needs Immediate attention. 25H-69 Appendix ATTACHMENT 4: REFERENCES List and describe fully the contracts performed by your firm which demonstrate your ability to provide the supplies, equipment or services included In the scope of the proposal specifications. Attach additlanalpaggLILEggtilred. The City reserves the right to contact each of the references listed for additional information regarding your flrm's qualifications, Reference 1!�' Y• �^(1(lnfr rI I1 YYy I �I CustomerNamaep:�Cr1�J�r�y�OE vnat Contact individual: �l 90N ftDOt+ W Address:_�'3IVfE''IJrUi���DQ1UrC�,`7r Q- Phone Number..310'0t(I•35W VI-M15 Ggrgo `rIIppVI���J1y0b�J•1�y Facsimile i Number. Contract Amount:9 191 410 -0 Yesr. - IIM Description of suppllest equlpme or services provided: M tot; t �erv�c� RIL I aid MMQllw% grug la 4w(� Mgfnowv Reference Customer Namo: IN1V� Lo Contact Individual: 111U�I Address: 1�N �� K R. Phona Number 31V l wy�`i '�J�mghh0 f b Face"'He'JNumber ContractAmoun4 io-Oto --Year. Description of supplies, equipment or services provided: Reference nn �r,� h Customer Nama: dq ° ivQ pr,I� O t�Contact Individual: p� r�� 4 pc�I rO Address: , p U` phone Number. lJ` V Q 0 V lYffib) SN 9 3 Facsimii�etNltmLb�ar Contract Amount: t M ) O0O ' Year. - Yy' Description of supplies, equipment, or services provided: THIS FORM MUST BE COMPLETED AND JNCLUDED WITH THE PRDPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. Ciry or Santa Pea- RFP 1e-04B I.anassape Maintenance Services of Water Facilities and Same Ana Reglonsl Transportatlon CaNar . 61 25H-70 MAYOR Miguel A. PWitlo MAYOR PRO TEM Juan villagas COUNCILMEMBERS Ceclila Iglesias David Penaluza Vicente Sarmlento Jose SOlada CITY OF SANTA ANA PUBLIC WORKS AGENCY 220 S. Daisy Avenue Santa Ana. CA 92703 wrnv.santa•ans.org 714-647-3320 July 10, 2019 Swayzer Corporation Attn: Samuel Swayzer 1665 East Del Arno Blvd Carson, CA 90746 CITY MANAGER Milne Ridge CITYATTORNEY Soda R. Cervalno ACTING CLERK OF THE COUNCIL Norma Mitre -Ramirez SUBJECT: Revision to RFP 19-048 Landscape Maintenance Services for Water Facilities and SARTC In ATTACHMENT 1: SCOPE OF SERVICES: SECTION 11. EMERGENCY SERVICES Pursuant to RFP 19-048 Landscape Maintenance Services for Water Facilities and Santa Ana Regional Transportation Center. Revise Scope of Work under ATTACHMENT 1: Scope of WORK: SECTION 11. Emergency Services to include: Contractor must be able to respond to City's request for emergency services on a timely manner. The contactor shall be available on an on -call basis, 2417, and ready to respond in the event of an emergency. Services calls shall be responded within one hour. Contractor's representative must be able to arrive at Job site within 2-4 hours response time for an emergency call out. All other terms and conditions of RFP 19-048 remain unchanged and in full force and effect. Sincerely, ti( •J,I Nabfl Saba, P,E. Water Resources Manager CONTRACTOR: Swayzer Coporation Name: Samuel Swayzer Title: President SANTA ANA CITY COUNCIL 04"A ry¢V JuOe YWtTas N[Cn15 Svrt 0 Mira NanuKa Jose 5t0 . Vacant Cxc.Lv q!aFa: Lb,> 0.1S,WROTOn4w9.19 Wy I Watl] tYpE] Waldo W&49 mm +�N.a�y� _ 's^IV IPFH519 K�Y•^2^1?s1ilOLl ,,tq Oem.An2a2�;'n39:M'6Y.] tYh, S?1p:8^d..9 PC513L2iL^FL9Ce'.ffD 25H-71 EXHIBIT C Appendix ATTACHMENT 2: FEE PROPOSAL Certification • I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals, I have examined the Scope of Services (Appendix: Attachment 1) and am familiar with the scope of work. I am familiar with all the existing conditions and limitation that may impact work requests. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the City for clarification prior to the submission of my proposal. Proposer Item Price — Pricing shall be based on a unit cost for services described in Scope of Services. Fee must be inclusive of all costs, including but not limited to, direct and indirect costs for labor, overhead, incidental supplies, travel, mileage and fuel. Any special materials will be purchased by the Contractor only after discussed and authorized by City Public Works Agency in writing. Tee scneoule. Contractors labor and equipment rate sheet shall list rates for all labor designations, equipment and materials. Specify and estimate any other costs associated with the system. Specify costs for the proposed landscaping work at the various facility locations detailed in ATTACHMENT 3: SITE LOCATIONS AND MAPS In Appendix of this RFP. Indicate a monthly and annual price for each bid Item. Total quotation is to be firm offer for no less than ninety (90) days and will be regarded by the City as bidder's best and final offer. Note: This contract is subject to prevailing wages. TO: CITY COUNCIL OF THE CITY OF SANTA ANA FROM: Swayzer Corporation Item 0 Bid Item (by Site) Monthly Fee Annual Fee I. Elevated Tank g 165.00 $ i,geo.00 Z Cambridge Station $ zso.00 $ 3,480.00 3. East Station § zso.00 $ 3,480.00 4. J. Garthe Station $ 7s5.o0 $ 9.180.00 5. South Station $ zso.00 $ 3,410.00 6. West Station $ 165.00 $ 1.980.00 7_ Walnut $ 227.50 $ 2.730.00 8. Well16 $ s0.o0 $ 1,0e0.00 City of Santa Ana- RFP 1e-MB Landscape Maintenance services or water Facilities and Santa Ana Regional Transportation Center 33 25H-72 Its I to h Monthiv Fee Annual Foe 9. Well21 $ 90.00 $ 1,080,00 10. Well24 $ 227.50 $ 2.730.00 11. Well29 $_90.00 $ 1,080.00 12. Well30 $ 166.00 $ 1.980.00 13. Well31 $ 227.60 $ 2.730.00 14. Well33 1 $ 690.00 $ 7.080.00 15. Well35 $ z27.60 $ 2,730.00 16. Well37 $ 227.60 $ 2,730.00 17. PRV-1 $ zz7.60 $ 2,7so,0o 16. Washington $ 165.00 $ 1,880.00 19. Flower $ 166.00 a 1.980.0o 20. sARTC S 2.ats,oa $ _ 28.980.00 Grand Total $ 85,200.00 Note: This contract is subject to prevailing wages. M- M30 =N610 CSLB NUMBER CIR REGISTRATION NUMBER Clty of Santa Ana - RFP 19448 LandoeVe Maintenance SOWA8 of Waler FadfUe9 and Santa Ana Realonal Tramporlalbn Center 34 25H-73 25H-74 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: AUGUST 20, 2019 TITLE: APPROVED APPROVE AGREEMENTS WITH MIKE PRLICH AND SONS, INC.; PAULUS ❑ ENGINEERING, INC.; AND T. E. ROBERTS, ❑ INC., FOR EMERGENCY ON -CALL SEWER El AND WATER SYSTEM REPAIR SERVICES, FOR A 3-YEAR PERIOD, IN AMOUNT NOT FOR TO EXCEED $500,000 ANNUALLY AND NOT TO EXCEED A TOTAL OF $2,500,000 (NON -GENERAL FUND) (STRATEGIC PLAN NO. 6, 1) As Recommended As Amended Ordinance on 1s' Reading Ordinance on 2n° Reading Implementing Resolution Set Public Hearing For CONTINUED TO C� FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute agreements with Mike Prlich and Sons, Inc.; Paulus Engineering, Inc.; and T.E. Roberts, Inc., for on -call emergency sewer and water system repair services for a three-year period beginning August 20, 2019, and expiring August 19, 2022, in an aggregate annual amount of $500,000, with provision for a two-year renewal exercisable by the City Manager and City Attorney, for a total amount not to exceed $2,500,000, to be paid with Water Systems Maintenance and Sanitary Sewer Service funds, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On occasion, the City requires services of independent contractors to assist with emergency sewer and water infrastructure repairs. These services may include repairing pipelines, tanks, and pumps at various utility facilities, and performing site restoration, as directed by staff to prevent a system outage, to restore services to normal operating conditions, and to maintain services during an emergency. On May 16, 2019, the Public Works Agency issued a request for proposals (RFP) for emergency on -call sewer and water system repairs services via the City's PlanetBids website. System records indicate 585 vendors were notified and 32 vendors downloaded proposal files. Nine proposals were received and evaluated by a selection committee based on criteria as outlined in the RFP. Listed below are the responding firms with qualifying proposal's scores: 251-1 Agreements with Mike Prlich and Sons, Inc.; Paulus Engineering, Inc.; T. E. Roberts, Inc. August 20, 2019 Page 2 FIRM LOCATION SCORE Mike Prlich and Sons, Inc Baldwin Park, CA 98 Paulus Engineering, Inc Anaheim, CA 94 TE Roberts, Inc Orange, CA 94 W.A. Rasic Construction Long Beach, CA 89 GCI Construction, Inc San Clemente, CA 87 J.A. Salazar Construction & Supply Corp. La Habra, CA 87 CHI Construction Anaheim, CA 71 Big Ben Engineering Irvine, CA 70 Arnaz Engineering Contractors Anaheim, CA 59 In accordance with the RFP, staff recommends awarding contracts to Mike Prlich and Sons, Inc.; Paulus Engineering, Inc.; and T. E. Roberts, Inc. These three, highest -ranked firms have demonstrated that they have the experience and resources needed to respond a variety of the City's needs during emergency situations. For each work order, a contractor will be selected from these three contractors based on their lowest bid price. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets). ENVIRONMENTAL IMPACTS There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted in the Fiscal Year 2019-20 Water Systems Maintenance Account (No. 06017641-62300) and Sanitary Sewer Service Account (No. 05617640-62300), and will be included in proposed budgets for future years as follows: 251-2 Agreements with Mike Prlich and Sons, Inc.; Paulus Engineering, Inc.; T. E. Roberts, Inc. August 20, 2019 Page 2 Fiscal Accounting Unit—#ccount Fund Accounting Unit, Account Amount Year Description Description Contract (3-Year Term) 06017641- Water Water Systems Maintenance, $250,000 62300 Contract Services -Professional FY 19-20 05617640- Sewer Sanitary Sewer Service, Contract $250,000 62300 Services -Professional 06017641- Water Water Systems Maintenance, $250,000 FY 20-21 62300 Contract Services -Professional 05617640- Sewer Sanitary Sewer Service, Contract $250,000 62300 Services -Professional 06017641- Water Water Systems Maintenance, $250,000 FY 21-22 1 62300 1 1 Contract Services -Professional 05617640- Sewer Sanitary Sewer Service, Contract $250,000 62300 Services -Professional Renewal Option (2-Year Term) 06017641- Water Water Systems Maintenance, $250,000 FY 22-23 62300 Contract Services -Professional 05617640- Sewer Sanitary Sewer Service, Contract $250,000 62300 Services -Professional 06017641- Water Water Systems Maintenance, $250,000 FY 23-24 62300 Contract Services -Professional 05617640- Sewer Sanitary Sewer Service, Contract $250,000 62300 Services -Professional TOTAL AMOUNT: $2,500,000 APPROVED AS TO FUNDS AND ACCOUNTS: &J xa Fuad S. Sw iss, PE, PLS Katliryn DPA Executive D rector Executive Director Public Wor Agency Finance and Management Services Agency FSS/NS/RR Exhibits: 1. Agreement with Mike Prlich & Sons, Inc. 2. Agreement with Paulus Engineering, Inc. 3. Agreement with T. E. Roberts, Inc. 251-3 251-4 Exhibit 1 AGREEMENT TO PROVIDE ON -CALL EMERGENCY WATER AND SEWER SYSTEM REPAIR SERVICES THIS AGREEMENT is made and entered into this 20th day of August, 2019 by and between Mike Prlich and Sons, Inc. ("Contractor's, 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. On May 16, 2019, the City issued Request for Proposal No. 19-032, by which it sought qualified contractors to provide on -call emergency water and sewer system repair services for the City's Public Works Agency. B. Contractor submitted a responsive proposal that was among those selected by the City. Contractor represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 19-032 and addendum thereto. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such 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 On an as -needed basis, and at the City's sole discretion, Contractor shall perform the services described in the scope of work that was included in RFP No. 19-032 and addendum thereto, and as more specifically delineated in Contractor's proposal, which is attached as Exhibit A and incorporated in full. 2. COMPENSATION a. City neither warrants nor guarantees any minimum or maximum compensation to Contractor under this Agreement. Contractor shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B. Contractor is one of three contractors selected to provide services on an as -needed basis under RFP No. 19-032. The annual compensation for services provided by all contractors selected under RFP No.19-032 shall not exceed the shared aggregate amount of $500,000 during the term of this agreement, including any extension periods. Page I of 8 251-5 b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and terminate on August 19, 2022,, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended for one 2-year period upon a writing executed by the City Manager and City Attorney. 4. PREVAILING WAGES Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the services being performed are part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 5. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement ("Documents & Data"). Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and Page 2 of 8 251-6 perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were provided to Contractor by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 7. INSURANCE Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the California Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Contractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Contractor pursuant to this section: (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. Page 3 of 8 251-7 (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect, by contractor, without thirty (30) days prior written notice to the City. (iv) Contractor shall supply City with a fully executed additional insured endorsement. If Contractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials expended prior to notification of termination. Contractor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEMNIFICATION Contractor agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor or its 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 Contractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8, the above indemnity shall be 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 Contractor. 9. INTELLECTUAL PROPERTY INDEMNIFICATION Contractor shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work Page 4 of 8 251-8 product or documents provided by Contractor to the City pursuant to this Agreement, 10. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 11. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Contractor agrees 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 importance, but in no event less than reasonable care. "Confidential Information" shall 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 Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City. 12. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. 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: Page 5 of 8 251-9 To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714- 647-6956 Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, CA 92702 To Contractor: Mike Prlich and Sons, Inc. 5103 Elton Street Baldwin Park, CA 91706 Attn: Michael A. Prlich, President 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 timeframes, weekends, federal, state, County or City holidays shall be excluded. 14. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor regarding 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 Contractor. 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 Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without Page 6 of 8 251-10 the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other contractors retained by City. MEW No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. TERMINATION This Agreement maybe terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to 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 Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. NON-DISCRIMINATION Contractor shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19. 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. Page 7 of 8 251-11 20. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 21. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 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 fast above written. ATTEST: DAISY GOMEZ CLERK OF THE COUNCIL APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: /. J M.Funk Assistant City Attorney FOR APPROVAL Fuad S. Sweiss, PE, P Executive Director Public Works Agency CITY OF SANTA ANA Kristine Ridge City Manager CONTRACTOR V ham./ Name: Michael A. Prlich Title: President Page 8 of 8 251-12 0 EXHIBIT A REQUEST FOR QUALIFICATIONS A PROPOSALS FOR ON -CALL EMERGENCY SEWER AND WATER SYSTEM REPAIR SERVICES CITY PROJECT NO. 19-032 SUBMITTAL DATE: June 13,.2019 Mike Prlich and Sons, Inc. 5103 Elton Street Baldwin Park, CA 91706 Tel: (626) 8134700 Fax: (626) 813-1770 251-13 Mike Prlich and Sons, Inc. 6103 Elton Street Baldwin Park, CA 91706 Tel: (626) 813-1700 Fax: (626) 813.1770 June 13, 2019 COVER LETTER CONFIDENTIAL City of Santa Ana Public Works Agency Attn: Cesar Barrera, P.E. Project Manager 215 S. Center Street, Building A Santa Ana, CA 92703 Re: Request for Statement of Qualifications and Proposals for On -Call Emergency Sewer and Water System Repair Services, City Project No. 19-032. Dear Sir/Madam: Mike Prlich and Sons, Inc. (MPS) is a local California corporation. Mike Prlich and Sons, Inc. understands the scope of work for the above referenced project. Briefly, the work Includes providing men, material, equipment, and expertise at a moment's notice to complete any emergency sewer repair in the City of Santa Ana. Mike Prlich and Sons, Inc. understands the completion of the specific emergency may require 24 hour manning and management of the operation. Likewise, -prevailing wage, safety, proper documentation, and City/Contractor coordination is a requirement. The following persons have authority to make representations for Mike Prlich and Sons, Inc.: Michael A. Prllch 323 Parsons Landing, Long Beach, CA (213) 200-6246 magftmikeorlichandsons com Milda Gandasetiawan 4551 Lakeview Ave., Yorba Linda, CA (626) 813-1700 mildagomikeorlichandsons com Lonny Laven 62 Kyle Court, Ladera Ranch, CA (213) 999-9852 949 769-0753 Ionnyo)mikeorlichandsons com Mllenko Eras 1020 W. Calera St., San Dimas, CA (213) 305-0419 NA Lance Laven 631 El Mlrador, Fullerton, CA (626) 826-0186 lanceomikePrilchandsmsAom John Mllosevlch 23B45 Arroyo Park Dr., #610,Valencia, CA (213) 781-0504 NA Rene Maldonado 16033 Cadwell St„ La Puente, CA (828) 213 8889 NA Sincerely, Michael A. Prlich President 251-14 Mike PrIlch and Sons, Inc. 5103 Elton Street Baldwin Park, CA 91706 Tel: (626) 813-1700 Fax: (626) 813-1770 Contents SECTION B: AGREEMENT STATEMENT ........................................................................................... 4 SECTION C: FIRM AND TEAM EXPERIENCE ................................................................................... 5 SUPERINTENDENTS........................................... I ... I ..... I ....................................................... I .... I ........ 8 FOREMAN....................................................................................................... I ................ - .................... 8 SECTION D: UNDERSTANDING SCOPE OF SERVICES ................................................................ 9 SECTION E: RELEVANT PROJECT EXPERIENCE ........................................................................ 11 SECTIONF: REFERENCES ................................................................................................................. 12 SECTION 2: FEE SCHEDULE: LABOR AND EQUIPMENT RATES ............................................13 SECTION3; CERTIFICATIONS ........................................................................................................... 14 go 251-15 SECTION B: AGREEMENT STATEMENT Mike Prlich and Sons, Inc. is in general concurrence with all provisions as contained in Attachment 4 Standard Agreement. ICI 251-16 SECTION C: FIRM AND TEAM EXPERIENCE Mike Prlich and Sons, Inc. is general contractor that works in engineering construction and infrastructure improvements, and specializes in underground utilities including sewer, storm drain, and trenchless pipeline installation throughout Southern California. We have completed over 500 public works projects of varying size and scope since 1954. We have worked primarily in the public works sector. A few of our main clients are as follows: City of Los Angeles, Las Angeles County Sanitation District, Orange County Sanitation District, City of Anaheim, City of Garden Grove, City of Redondo Beach, City of Cypress, City of Carlsbad, South Coast Water District, Long Beach Water Department and Los Angeles County Department of Public Works. Mike Prlich and Sons, Inc. is a California corporation. We have accounts with and are in good standing with all major industry material suppliers and specialized subcontractors. Mike Prlich and Sons, Inc. has the availability, capability and experience to handle emergencies as demonstrated by over 400 service calls to various agencies within Southern California in the last 20 years. For your reference we have enclosed a list of our most recently completed projects (see attached). In addition, major public agencies and cities have repeatedly put their faith in Mike Prlich and Sons, Inc. as a sign of our quality and ability to complete work. Mike Prlich & Sons, Inc. Is currently installing RCP and VCP utility lines throughout Southern California. We have completed over 500 public works projects varying in pipe size diameter since 1954. To date, Mike Prlich & Sons, Inc. has installed over 3,000,000 linear feet of utility lines throughout California. Approximately 50 percent of the projects had pipe diameters greater than 18". In addition, 50 percent of the projects were installed with a depth of over 20'. Michael A. Prlich is the experienced senior individual and director responsible for delivery of service. In addition, the following list of key project personnel employed Mike Prlich & Sons, Inc. are also capable of acting on the company's behalf: no 1. Mike Prlich Owner/Superintendent 30 years 2. Mark Zaich Superintendent 35 years 3. John Milosevich Foreman 35 years 4. Javier Reyes Foreman 28 years 6. Milenko Eres Foreman 30 years 7. Rene Maldonado Foreman 20 years 8. Javier Corona Foreman 30 years 9. Lonny Laven Project Manager 16 years 10. Lance Laven Project Manager 16 years 11. Mike Prlich Jr. Consulting Engineer 50+ years 251-17 Mike Priich & Sons, Inc. has a 2 Million Dollars Line of Credit to tackle almost any size of emergency contract. In addition, MPS has bonding capabilities of 50 Million Dollars. Pipeline repairs range from simple patching and point repairs to complete removal and replacement. Site Specific detailed repairs will be assessed on a case -by -case basis. Each pipeline or appurtenant structure to be repaired or replaced will be assessed for access, bypass needs, and traffic control requirements. Materials such as pipe, couplings, bedding etc. will be sourced from the closest feasible source to ensure project execution Is not hindered by a lack of material. MPS, Inc. owns and maintains all of our equipment, shoring and trench plates which will commonly be required for any excavation. We have a primary yard in Baldwin Park, CA and a secondary yard in Bloomington, CA. This assists us with the prompt response anywhere in Los Angeles county. As with all construction projects, safety and effective communication will take priority over any work activities. All of our personnel maintain certification in First Aid/CPR and Confined Space Entry, as well as Competent Person Training. Prior to entering any work zone, we will perform a visual site assessment to identify potential risks and hazards associated with site access for both personnel and equipment. Once the risks and hazards have been identified, mitigation as needed will be Implemented. All of this information will be communicated to the County and Interested parties, as well as to our own workforce and subcontractors. Any emergency repair work will only be implemented with consent from the County. Inspections and safety meetings are performed weekly at a minimum. Corrective actions for deficiencies are implemented immediately. Inspections will be performed jointly with the Field Managements, County, and Inspectors when available. The inspections will be documented with copies made available to all concerned parties, including the follow-up corrective actions needed. The below Organizational Chart Illustrates the team. Mike Prlich and Sons, Inc has established to complete all types of emergency projects from 3 feet deep to 100 feet deep. We have open accounts with vendors all through Southern California for emergencies. The prime contact is Mr. John Mllosevich, an 18 year veteran of Mike Priich and Sons, Inc. and a 40 year plus industry employee In underground utilities construction. He has the skills to attack any project timely and has key personnel with phones available on a 24 hour basis. We also have experience in trenchless applications such as pipe bursting, pilot tube installation, and directional drilling, We are a self-sufficient company in all areas of utility work and have company depth to tackle any job described in the Request for Proposal. Agencies we are currently under contract for emergency work are the following: ➢ Long Beach Water Department ➢ Los Angeles County Sanitation District ➢ Los Angeles County Department of Public Works ➢ City of Los Angeles ➢ City of Glendale ➢ City of West Hollywood ➢ County of San Bernardino ➢ City of Thousand Oaks ➢ Port of Long Beach ➢ South Coast Water District ➢ City of Anaheim 6 251-18 Following is a list of key personnel that may be assigned to the project: Michael Priich — President / Owner of Mike Prlich and Sons, Inc. (Est. 1998) From 1985 to 1998, worked for Mike Prlich & Sons Partnership. Mr. Prlich holds a Bachelor of Arts degree in Economics ('89) University of California at Berkeley. Mike Prlich Sr. — Consulting Engineer for Mike Prlich and Sons. Inc. 1998 - Present From 1956 to 1998, President of Mike Prlich & Sons Engineering B.A., Industrial - University of Southern California '55 Gregg Aifvegren — Dispatcher / Procurement / Office Administration Purchasing agent, dispatching, material supplying, safety training, safety compliance, drug testing program, driver compliance. Mike Prlich and Sons, Inc. 2002 - Present Bellarmine University, Kentucky'72 Milda Gandasetiawan — Book Keeper / Accountant Book-keeper, Accountant, Billings, Certified Payroll, Change Orders. Mike Priich and Sons, Inc. 2003 — Present. From 1999 — 2003, work for Colich and Sons, L.P. University of Jakarta '87 Lonny Laven — Project Manager / Estimator responsible for project planning, technical submittals, project schedules, traffic control plan preparation, management of subcontractors and material suppliers, and direct communication and interaction with project Owners, Designers, and Inspectors. Has more than 16 years of experience In Engineering Design and Construction involving underground utilities, water & wastewater transmission/treatment facilities, roadway rehabilitation, and reinforced concrete structures. Mr. Laven joined the MPS, Inc. group in 2015. CSLB - General Engineering License #1002648 Lance Laven — Project Manager I Estimator responsible for project planning, technical submittals, project schedules, traffic control plan preparation, management of subcontractors and material suppliers, and direct communication and interaction with project Owners, Designers, and Inspectors. Lance has more than 16 years of experience in assisting with engineering design and construction involving underground utilities, water & wastewater transmission/treatment facilities, roadway rehabilitation, and reinforced concrete structures. Mr. Laven joined the MPS, Inc. group in 2016. B.S. Environmental Analysis and Design'2008, University California Irvine 251-19 SUPERINTENDENTS Javier Corona —Superintendent-worked for T.L. Pavlich Construction Inc., Spinello Companies and Mladen Buntich for combined 30 years. Mr. Corona joined the MPS, Inc. group in 2016. Has completed various types of projects for including waterlines, sewers, storm drains, grading, slip lining, etc. Has managed jobs for our following Clients: City of Los Angeles, Orange County Sanitation District, Los Angeles County Sanitation District, and City of Long Beach. Mr. Corona maintains his membership In the Operating Engineers Union. Mark Zaich — Superintendent for Mike Prlich & Sons, Inc. since 1997, Worked for Matt Zalch Construction 1970-1987 as foreman operator, Mladen Buntich Construction 1990-1996. Has completed various types of projects including Box Storm Drain Construction, Culverts, Storm - captors, and Tunnels. Has worked for the following agencies -Orange County Sanitation District, Midway City Sanitary District, City of La Palma, Cal State Long Beach, City of Los Angeles Bureau of Engineering, and City of Carlsbad. Mlienko Eres —Superintendent for Mike Priich & Sons, Inc. He joined the company In 2009. He previously was employed by Mladen Grbavac Construction for the period of 16 years as a Superintendent. Mr. Eres maintains his membership in the Operating Engineers Union. FOREMAN John Milosevich — Worked for Mike Priich & Sons, Inc. for 19 years —1998 to Present Certificated as a Qualified SWPPP Practitioner (QSP, #23263) and a Certified Erosion, Sediment and Storm Water Inspector (CSSWI, #3044). • Falcon Construction (South Pasadena, CA) —Oct. 1982 —1999: Operating Engineer / Foreman • • Colich Construction (Gardena; CA) ID79-1982: Operating Engineer • S.S. Zarubica (Sun Valley, CA) 1974-1979: Operating Engineer • Wal-con Construction (Surfside, CA) 1973: Operating Engineer • Aristo Construction (CA) 1972 —1973: Operating Engineer / Oiler • US Army 1969 —1971 Javier Reyes — Worked for Mike Prlich & Sons, Inc. for 24 years —1993 to Present • Peter C. David Construction 1975-1993: Operating Engineer Steve Newton — Worked for Mike Prlich & Sons, Inc. for 15 years — 2003 to Present Tom Vukojevic — Worked for Mike Prlich & Sons, Inc. for 13 years — 2005 to Present Rene Maldonado — Worked for Mike Prlich & Sons, Inc. for 4 years — 2014 to Present 251-20 SECTION D: UNDERSTANDING SCOPE OF SERVICES Mike Prlich and Sons, Inc. anticipates that City will provide location of repair. Additionally, MPS assumes that if necessary the City will provide surveyed line and grade and geotechnlcal services and pre/post CCTV Inspection. MPS assumes all work will be performed under WATCH manual traffic control. If required MPS can provided engineered traffic drawings by Traffic Control Engineering, Inc. or other similar vendors at the direction of the City. Mike Prlich and Sons, Inc. has a proven track record of timely responses and rapid repairs to existing facilities for numerous emergency projects with several local agencies in Southern California. The response time excluding travel is always less than 1 hour, and typically within 10-minutes plus travel time. As provided In the Cover Letter, the direct cell phone numbers are listed for all key personnel directly authorized to respond to any given emergency. These numbers can be used 24-hours per day, in addition to the Office Phone number during regular working hours. Mobilization efforts are initiated promptly by Key Personnel to tine -up labor, equipment, materials, and subcontractors for the given emergency. The project supervision has the authority to direct the deployment of resources to meet the needs to an emergency. As with all construction projects, safety and affective communication will take priority over any work activities. All of our personnel maintain certification in First Aid/CPR and Confined Space Entry, as well Competent Person Training. Prior to entering any zone, we will perform a visual site assessment to identify potential risks and hazards associated with site access for both personnel and equipment. Once the risks and hazards have been identified, mitigation as needed will be Implemented. All of this Information will be communicated to the Owner and Interested Parties, as well as our own work force and subcontractors. Any emergency repair and/or maintenance activity work will be implemented with consent from the City. Staffing Plan The projects will be staffed full time by at least one Working Superintendent or Foreman. Additional Superintendents and Project Management / Project Engineering will be readily available depending on the nature of the emergency. The crew make up will be project specific, but typically craft specific Foreman with supporting Operating Engineers, Laborers, Teamsters, Pipe Layers, Carpenters, Teo. Will be used as necessary. A Quality Control Inspector will be utilized as necessary. Our in-house Project Engineering staff, along with the Project Managers will ensure that compliance with the contract documents, as well as additional local, state, and federal requirements are being met. In addition to sewer pipeline repairs, MPS has experience with all of the following tasks: Dams, debris basins, spreading grounds, pump stations, low flow diversions, seawater barriers projects, channel walls, channel inverts, channel access roads and ramps, channel drop structures catch basins, Inlet/outlet structures, ocean outlet structures, corrugated metal pipes (CMP), reinforced concrete pipes and boxes, and associated appurtenant structures Personnel will be adjusted and allocated to accommodate the City's emergency needs. This will be Priority One of our Work Plan. In addition, we have depths to run projects on a 24 hour basis 7 days per week. Likewise we are signatory with multiple trades. As such, additional labor HE 9 251-21 resources are available and will be vetted accordingly. MPS will work with the City to have additional subcontractors approved necessary. MPS will work with the County to provide cost estimates for any specialty subcontractors needed to complete the work lie. Lining, grouting, striping, soils stabilization, pipe supply, etc.) 10 251-22 SECTION E: RELEVANT PROJECT EXPERIENCE See attached full list of projects completed with reference contact information. W it 251-23 Prepare. Protect. Prova[W i ad HAR,rFd§D rmPtayenHersEtt quro aeme April 9, 2019 Re: Mike PrIlch & Slo.ps., Inc. Surety Pre -Qualification Letter Rego rcjs .1A HAIRTF.09V FJRE JNSQKM(COMPANY Y:. Arturo Ayr* Attbriieii-In-Fad U 251-24 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the Indiyidual_. who signed the document, to which this cehlt'6 to is attached, and not the truthfulness, accuracy, or Validity of that docuMeht. State of California County of b`rarige 1 On 04/09/2018 before me, Mel i $aAnn\%accaro a Notary l (In,Satt na:: a agil e,of iNe co8rj in car* udder P. P.j l V- OF PER,IU,RY Undet the lalys the 5$ate o(�allfol�tra' hat the (ore99i paragraph Is true and abl feet ;<�k tOEgsA!t WITNESS my hand aqd tifilclat eal: .. 4 Y XQ � '' 1a Q t 000 (\�� 4 „Mfxbmrcl A Y ,sosa 251-25 Direct/nqufrles/Clalms to: THE HARTFORD POWER OF ATTORNEY B°'T One 14M Plea Hardord, Cannecttouta6i66 B d 01 I a�th h rt7e�01 can, 686-Rfi8.7488 afrex:6W-767.667a KNOWALL PERSONS BYTHESEPRESENTS THAT: A9anoy Nama: COMWL SORBTY a BOND INS AGy/BONG Agenoy.Codo: 72-191009 QHartford Fire Insurance Company, acorporation duly artimized under the laws of the StateofCormecticut ® Hartford Casualty Insurance Company, a corporation duly organized under the lam ofthe Smteofln arac xQ Hartford Accldentand Indemnity Company, acorporation duly mganized under the laws ofthe SmteofCoanecticur Q Hartford underwriters Insurance Company, a corpomdon duly organized under the laws ofthe Stam at Comeodcut QTwin City Fire Insurance Company, a corporation duty argaahed undmthelaws oftho Smmoflndisaa Hartford Insurance Company of Illinois, a corporation duly organized under the laws of tha Smm aMois Hartford Insurance Company ofthe691dwest, awrporationduly organized undarthsmwsafthg. ode0f7ndiana Hartford Insurance Company of As 34Uthe2et, a.tgRpr§uar}duly gigegued-unQer,tae..laws nftlle gmeeoCF}odds up to me amount of unlimiteti , Arturo Ayala, Daniel Huckabay, Frank Moreaes, 9baunna Roselle Oetrem, Dwight Reilly DE ORANGE, California their true and lawful Altornsy(s)-In-Fact each In their separate capacity 9 mote than ode Is, named aboyp, to glgn Jts enr r� as Instrusuretyments only he as delineated above by ®, and to execute, seal and acknowledge any end at bonds, undertaldpgs, SPfpiagt$.�RQ Ian a, of contras In the nature thereof, on behalf of the Companies In their bUylness of guaranleainy the iWelity of persons guaranteeI, the , prfdrnlance of contracts and executing or guaranteeing bonds and undertakings reciiing of pirrfllfled In any actoha or )Iraceadinga allowed by law., In (Mirage Whereof, and as authorizer( by A R890-I,nttgn of the Board of Piro a(ors,af the CarpphrjQS qh Moy8, 2t11¢ fha Companies have caused these presents to be signed by Its Senior Vlpe Pmooloem en' tts gotooreleals to be hereto 2fiured, ;4.uly-eitealed by Its Assistant _ _ v ....o.e •µe r•„mnonma herabv bdemblauou5y afgml met They em John Gray, Assistant Secretary M. Ross rent STATE OF CONNECTICUT Hartford COUNTY OF HARTFORO On this lith day of January, 2018, hefam MO PQMonelly came M RDeeFia or.,' pts ktl4wn, Who being by me duly �twom, rid depose and say: that he resides In the County of Hartford, 91afe of Connectcub that he 1s �e .Setyor Vine •President of (he:Cj{mpenleg;.lhg corporations described In and which executed the aliove Inslnlmenl, that lie Iglo,We the aselg Q( the sold cprperatora $11W the geatsr is"s to the said instrument are such corporate seals; that they were so affixed by authoitty of.tile. 6onrds o) Dlrociprs Gf T}dId'aorpdi8)IgM a- that he slgred his name thereto by like authority. _ r„ I, the undersigned, Assistant Vice President of the Companies, D copy ofthe Power of Attorney executed by Sold.Compprise, which Is8911 in Signed and sailed at the Cih7Af,Hou fmd.__ 'FOAMIr ....KyblaanTab11 . Ali Yiurd - mom,.P- MyceMMhdongj L=My 31. neap pat the'ab`oV annd fOm�dnb Ti a we and correct April Htb,3019- President 251-26 0 sm� aAga mom 4ay� z s n a 251-27 o Pd a o s g i �IN'T', s�mq °vi z ti 251-28 G7 o ga s 8 A R m A °O S g q G 251-29 " �' Zv 5 ��(i' ohm g=`.a•*. $ .t"md. $ �e `�wY �T 7� � .lpd G P.5 G�U �i.�..1 z e n° 251-30 0 EMM@��®a sag spate 0 W w c sden cW ka �m � pj � cm v10'J Win oy� cy dF om+� y ga Gg n 251-31 ° a3� sas 3"s w as 3�� eat z� N3a 19 a S 1ag°n o m mom o 55�� .��ja egegpp W n 251-32 N m N s$ 1 � 3e 396 �a A'Im 0 S� cps sSPP FEE A E m A 251-33 L n aga3 kt lG 1m vi QWP7 Q ur 49 p( ^vi cm ` � D� �''.Pm. s �'°m 'u""�� z e m N m a m m m oo m m m `i 251-34 ao .4 erl ��� alp� ag� �d °tea e 80 ,$ aro �otw d 5 251-35 s s �o o � 3 aB� Q� By S a Wk6 S�� 5w^ a a e p o qq LLI W a O �a{, qq c N q '� nl 99 W N !-0 8 {0 a. FI M IC feAp� W Pt ui 6 e$n Z < Z G Q ¢ � G e en j(�j J$ -81 d P �o 251-36 pO G g ,gm5 �y m ee Jus v a Qp e a o a e y as < 1^ m Gm_ Li S C SHp S S yH� H S S O {H� Q 0 N m � o t N @°eo G$ a $qz3 Bggg$�� FF`' o xua ad ddd tq Du aq owe 3'sy 9� c93 uc5 SNP a'xa Nr: .7 c�iHx i3�a as m `f 251-37 {t Smw8 n' m 251-38 5 = 21"� y� a3a U y,pQ � �p y,� 9a���epas Q �� E' O N O N W W CO G o p U d m 251-39 a a J LLLCCC gg m N o y{ ,m ,S 6 pOp' 6 �C aCC �C C 'o r S¢I N N tV F1 p O � 'v� �` lz °: M op" N w ryas •n• ta U O � N m 0 L a 9 a g E w w N N gg� Rr O � �w ��yy gg yp R1 B 1V g u1G �a cm5 u�"i u� of c� O idh V qUV SG �� Id a V gP 9C.1 =�.Vd n' 251-40 e 9 gag tic ;oc ac c xE > . �c !21 F'L'.� yy Y b Qp C N N N P Ny5 3n` { Vi O t N ti p 's pY 6 P V 5 P � y a Al G a a& n r� E ggQ �g � r n � p d 66 i` tri � A 1, Awl c5 y�� $3� A da ��� .5 PR 8'�'o c�'.wS aIi� iq of m o yy a vi 49 vi qq m" c MHm a n 251-41 3y2 s eryJ $yryyyyyyy eV wo rii 4q A of A a vi 49 ��Z � om� om4q oy � r n �W Aepey `d c.� � oN� mfd G1 d � g o ry a h r m ry h 251-42 e � a q Y Yj l n b Cb_ N N N N Q a `m � o N m Y Ngg A �6g n Z a c�5 a a w W 8 uS i*1y s '.am w m mu S w � N a Nrl 0 a a o 2 F$e p1 g E w e LoL o •E.. a � S S � ffi 8 ffi g S $� 6 d ffi 0 4` ffi a S S r R O H� O H� w y� y f� � y Q• � .G a N P A � p y G �T y �p � m o Q yQ 251-43 9 r9m ugS7 .a �� 'u .. .� v,3 'ati urN a u ,� y`�t� u.^•.� d 11 y C A q q a P P of Q Q T a T P n' 251-44 mo W a U B F ti l y n �p N N N V pN N N N oN N Q O O O .B H y1}� Y FI' yti F m rgdg Y' ='d S N m �o a m a � fi m s c S a iJ a N N ry C N M N N p y A Y m yE Q y 3 Q k y A o S d 5 251-45 w w � E B � w 0. 9 a t Y+ pp a �a wq� "�jFry n (�a J N tOV Ce_ f1 C N �O`I �p Fp1 C O p yp l9 p $� y O 6 S N O � % Oo COC L N u .O 6 ry Y o E d 0�1 y G 5 RI O C O O O � N N fq§A C pM S Cry O C y$O y � qO m Rlid �+ 4 �y9A V �kk °yYi yYy $5 9 rm o � m < '•gyp � n'�n C1 `b 8 a p X 4 5 O � � 43 °§` 5 lid 6 &�5 ,�7�Eo 93 4111 ,m � 6H �-I� s 251-49 6 4 q e o of 0. p g8 19 Al 9 H— A 3c, L^. i�e ?C, wFi d: m°k•v �C '®n n n n n n n n �p• N IpV N pN N N p pN p Li N 6i L QoQ v� 5zp� O :7 W O m 6 � w � e o a Q N qb gq�a•�i. s, �� �e� p� •�^� •� � � �S 'g� $ n ?� � A 5i`t DY �p+� X tzgg-. �g W g d qp Patlp' pz� �6 � > �`p3�py3J' LAG � V�1 30 •�k5 y„y� � L� P: F �FIIR: .� 9i� W 0.�N g0. W •/ W Pr o � $ � �� q 9� ��� �� 'aa 5 � 8 •� g � �*a a g uiaa d 2 oo a o S o 0 n 251-50 a iJ a s N k 0 m 9d� N Sys a� 4j 3 �� 3aq O ey O W w u�,3 •ti -.a �:a a..a u.. .+ u .a u.. .� u..a u.. .� a Ci ..a 251-51 0 �1 {f ffi a W w��8n GO 4t ci p 'S vi I� vi ^a al vi F&l Ri lq a a d 5 251-52 $cg NC o d N N N N FQ O $ S EO $ M ifl �' VI C h W � � o IE a am w 3 let a � � e o� a"c ue AR r r r r Gr N N f N N $ y o ^ M 0 0 N N Sk r. F w F p S e ^„ qU I $ q r n Gr_ ry N N O O M e 'w s � v g z ^ ej s o Mu P ^ S •P fa' Q y1 6 i.P'. � .� u�a i3�s u^ NNa u f'JA u�5 i7kY-w ucipa u..a u..a n 251-53 7 9 a g C � V V � � 9 � ,b •E� y1 a1C RK C FCC U Gh 1`I h N ah CI h N h N 1G. CI ph f`I h N h N h N h N h a e bI p P •YC qg O Bey �CFi O �C � o N t � � o x � P-1 K �gC "N � 5NN B � 3E5p �yx� c� ECe S � nWW .� y ..c � o G p� � �G °•O� O a p�Uz p�U 0 U.-a d ry gg ^e 251-54 e �o �v ryW 6 r r n n (J N N N N pn pr_ N N r B k N L y N C 6� •y mo va � o W C a' �, d .pO. U C+ C �1 f.. � .°. C• ITi n n ea n n n N N N f�1 C pn N N ., 9 a� s o �v ed ed 3 F q m S C n g� q o a x � p � � N •�' p3q 9 .g.1 •a+ .�'. u l.I U ...1 u u ..1 N a z� U 251-55 L P. (y J na fqC Wac-' "i C 1qRi ma Y Gi p pp q 5$7,'pq �i y y O yC• B P ^rye G y 9 y N 1a9 N m eE c ,C N a m m 8 $ ti !x 3 n R � a e g ❑ jfi S G c..� c�yd o �r�55i i( x L e b f{ .E 0 251-56 FI 81 A EF Ll 2 2 U3 .a iL B r4 ro ig ul 251-57 v CS r$m xC�ES wC xC mCG q"C� I�vj N N rl N N M N C N p e G G p p p$ p p N O p w d aa! i � i � .L � .•E V N O COC L N 9 'e' a Y a � U $g� $ S $ 251-58 vi 18 0. u 251-59 r a 251-62 ! | . ! )| �/ )! i | ` 2 « k !\ { w ®i /!! \i\ y16 \� !! /{ -k A ©�4 \ƒ/ ,d! ,9A ~2 51- 2 \ ! SECTION F: REFERENCES See attached full list of projects completed with reference contact information. UAP 12 251-64 PPp�;noix ATTAQHMFNT - E.FERENCR$. List and describe fully the contracts performed by your firm which demonstrate your ability to provide the supplies, equipment or services included In the scope of the proposal specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference Customer Name: City of Oceanside Contact individual: Howard Arnold, P.E. Address: 300 N. Coast Highway Phone Number: (858) 699-3872 Oceanside, CA 92054 Contract Amount: $4,390,000.00 Facsimile Number: Year: 2018 Description of supplies, equipment, or services provided: Market Place Del Rio Trunk Sewer Replacement Project: 24"x1,200' Sewer Relocation/Replacement gconstruction of n amer ppu manhole, sewer bypass Reference Frank Contreras Customer Name: City of Redondo Beach Contact Individual: Public.Works.Manager tre ts/Sewer Address: 531 N. Gertrude Avenue Phone Number: (310) 318-0686, xt 4167 Redondo Beach CA 90277 Facsimile Number: (310) 374-4718 Contract Amount: $2,175,000.00 Year: 2017 Description of supplies, equipment, or services provided: 2017 Sewer Rbpiacemetft1 8,1000' x-8",'10"; 12" sewer. Installation of CIPPiining CIPP Manhole Rehabilitation tniction ..r..pw 48" Manholes Reference Customer Name: Murow CM / Lennar Homes Contact Individual: Steven Murow, President Address: 1151 DUry@a.A,vpnite Phone Number:. (714) 932-9992 Irving CA 92614 Facsimile Number: Contract Amount: $2 997410.00 Year. 2017 Description of supplies, equipment, or services provided: City of Chino - Edison Avenue Storm Drain Improvements: Installation of 72" RCP x 2,500' and 66" x 2 200' RCP On -Call Emergency Water and Sewer Repair Services Page 16 of 31 MIKE PRUCH AND SONS INC. 251-65 Appe�idlx ATTACHMENT 3,: REFEFZ0NC0 List and describe fully the contracts performed by your firm which demonstrate your ability to provide the supplies, equipment or services Included in the scope of the proposal specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference Customer Name: South Coast Water District Contact Individual: Kyle Gough, Transmission Manager Address: 31592 West Street Phone Number: (949) 499-4555, xt 3423 Laguna Beach, CA 92651 Facsimile Number: (949) 248-0682 ContractAmount: $66,007.07 Year: Description of r Sea Bright Drive October2018 or services provided: se Task Order No. 2 / Agreement Number 19-01-0003; Account Number Reference TK Lee P.E. City of Los Angeles Customer Name: Bureau of Engineering Contact Individual: Street 8 Storm Water Division Address: 1149 S. Broadway. Ste 810 Phone Number: (213) 485-4528 Los Angeles, CA 90015 Facsimile Number: Contract Amount: Range $2,000 -+I- $5,000,000Year: 1999 - On Going Description of supplies, equipment, or services provided: Pr6Vide Emergehcy Services' for m1§cellanecgs Storm Drain facilities ranging -from 4" -- 72" In diameter as needed pursuant to annual/semi annual contract renewal Reference Customer Name: City of Laguna Beach Contact Individual: David Shissler, Water Quality Manager Address: 5Q5 ForestAYen.11e,.2.nd. Floor Phone..Number: (949) 497-0328 Laguna Beach, CA 92651 Facsimile Number: ContractAmount: $2,681,230.00 Year: 2015-2016 Description of supplies, equipment, or services provided: LomaTerrace Sewer Relocation Project Contract No. 15-59: Removal and Replacement of existing Sewer facilities 180, 24"x 3,000 If with Sewer Bypass CIPP Lining Jack 6 Bore Manhole Rehabilitation THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. On -Call Emergency Water and Sewer Repair Services Page 16 of 31 MIKE PRLICH AND SONS INC. 251-66 SECTION 2: FEE SCHEDULE: LABOR AND EQUIPMENT RATES See attached separate submission. I= 13 251-67 Appendix ATTACHMENT 2: FEE SCHEDULE Certification - I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Appendix: Attachment 1) and am familiar with the scope of work. I am familiar with all the existing conditions and limitation that may impact work requests. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the City for clarification prior to the submission of my proposal. Proposer shall submit hourly rates schedule, which shall Include but not limited to, direct and Indirect costs for labor, for staff per job classification, material, equipment rates, overhead, Incidental supplies, travel, mileage, and fuel. Any special materials will be purchased by the contractor only after discussed and authorized by the City projects manager or designee In writing. Prior to commencement of services, Contractor shall provide separate quotes, upon request by the City, which shall be approved by the Clty's Public Works Agency. Note: This contract is subject to prevailing wages. Mike Prlich and Sons, Inc. 95-4724359 COMPLETE LEGAL NAME OF COMPANY TAXPAYER I.D. NO. 5103 91706 Michael A. Pdich President 61ds&II(epdichandsons,com (626) 813.1700 EMAILADDRESS PHONE NUMBER 760474-A 1000006538 CSLB NUMBER DIR REGISTRATION NUMBER City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 15 of 31 MIKE PRLICH AND SONS INC. 251-68 CITY OF SANTA ANA ON -CALL EMERGENCY SEWER AND WATER SYSTEM REPAIR SERVICES PROPOSAL NO. 19-032 MIKE PRUCH AND SONS, INC. LABOR RATES I U LY 1, 2019 - I U LY 1, 2020 CRAFT TIME HRLY RATE Laborer Group 1. STD 4160105 Laborer Group 2. STb OVT Laborer Group 3. StD Laborer Group 4. STD OVT -DBLJ Operator Eng. Group 8 STD Foreman Operator STD JS Ov'T Teamster Gr p". S STp 'rV OVT DBL "Rates are subject to an estimated annual Increase vj a % Pursuant to 6 1 dar-n-d 1-M-hin o-blij-0110"n- s. m 251-69 MIKE PRLICH AND SONS, INC. Equipment Inventory and Hourly Rate EQUIPMENT Unit Rate Class Make t Air Compressor r15 dm hr $ 19.55 AIRCP PORT 2 Air Compressor 185 dm hr $ 21.00 AIRCP PORT 3 90 lb lack Hammer hr $ 2.40 AIRTO ATOL 4 Rivet Buster hr $ 1.90 AIRTO ATOL 5 Air Digger hr $ 1.90 AIRTO ATOL 6 Broom - Self Propelled hr S 46.35 BRMSW SFPR 7 Broom - Pick Up Tvoe ('95 Athey no mode hr 1 $ io6.49 B SW SWSp a MuitlQufp Walk Behind Roller hr $ 4;66 COMM COMP 9 Compactor - Hand Held hr $ 421 COMHG COMP 10 Powder Puff Compactor hr $ 421 COIv1NO COMP 11 MuItIQwIp Jumping lack hr $ 431 COMHG COMP 12 Mult[Qhlp Vibrator Plate hr 'S 4.21 -CQ' HG COMP 13 Concrete Mixer hr 335 CONMX SORP 14 Concrete Vibrator hr t w6.' 'COHVB CVIB 15 Generator (Honda 5000 hr 4.23'. ;ELGEN GEN 16 Generator MMG35-2512w hr 1 $ 14.86'' ELGEN GEN 17 Generator (MQ DCA605512-48kw) hr 1 $ 1495' 'ELGEN GEN 18 Generator MQ DCA6055 45 hr I $ .14.95 ELGEN GEN 19 Light Towers - 4 Lights hr 635 ` ELGEN LITE 20 Fork Lift (Champion 530-70 - 70001b)hr 1$ 46.02' 'FKLFT FLT 21 Grader - CAT 12 hr 1$ 54.40' ORADR CAT 22 Hammer (Comparable to HVR-6o) hr .. $ '4026 HAM MR ABI 23 Hoe RamsCoo-GB4 hr I 16.'o7" 'HAMMR I NPK 24 CAT 320L Exca. hr 1$. 8743: 14CECL CAT '25""CAT34513LEkca: ---'hrr--$-'2o7.'66.--`-.AHCECL-._ CAT 26 Komatsu PC75 Exca. 2hw/69h-t6,47olb hr $ 36.66 HCECL CAT 27 CAT 235 Exca. hr 138.'O6 HCECL CAT 28 CAT 24SExca. hr ?3238; HCECL CAT 29 CAT 313E Exca. (Comparable to 312C) hr $ 59:" WCECL CAT 30 CAT 300.9 Excavator hr $ .'_<25,38!. 'HCECL CAT 31 CAT 302.7 Excavator hr $ 29.99 HEFT L CAT 32 CAT 305 Excavator hr $ 4o.72 HCECL CAT 33 CAT 308 Excavator hr 7$ ' '47;31 > '' HCECL CAT 34 Komatsu PC3007 Exca bF' T 10999:` 'HCECC- -1 ROMA 35 KOmatsu PC600.LC-6 Exca hr- 1 $ .-275t00' ;,HCECL I ROMA 36 Komatsu PCS$ Exca hr 1 $ ..45:'14.I .:H ECL. ROMA 37 Grove Crane'RT528B hr 1, $ "1.752 HCESP GROV 38 Gallon Crane. .Com arabletolSOP hr '$=66.11' HCETG GALN 39 Dresser Crane (Comparable to Gallon 15o hr- "$ " t6'6.11 HCETG GALN 40 CAT 436 Backhoe hr 49197 - . DRRT CAT .41- CAT 936-RT=Booder —hr --.S.-.::Bts.9....: LDRRT...,.. ..CAT... . 42 C .950 90A RT Loader hr S 7o5z. . LDRRT CAT 43 CAT 95oF RT Loader hr $ 11456-. LDRRT CAT 44 CAT 956C RT Loader h� $ `1Z5se7`_ LDRRT CAT 45 CAT 420 4wheel drive Backhoe hr $ b3:9t LDRRT ` CAT 46 CAT 430E Backhoe hr $ 67.W LDRRT CAT 47 CAT 446D Bachhoe hr $ 73.42 LDRRT CAT 48 CAT 45OF Backhoe hr $ 81.00 LDRRT CAT 49 CAT RT Loader 92BG hr $ 87,06. LDRRT CAT 50 CAT 9380 RT Loader hr $ 107.00 LDRRT CAT 51 Kawasak165ZIV RT Loader hr $ 83,09 LDRRT KAWA 52 Kawasaki 70Z IV RT Ldr (Compto 80Z II hr $ 107.43 LDRRT KAWA 53 Steel Plates Non -Skid -1" th - t-th" th day $ 27.00 NONOP MISC 54 GFashCushlonBarrel- filled j day $ 1J7 I NONOP TRAF 251.070 Equipment Inventory and Hourly Rate EQUIPMENT Unit Rate Class Make 55 K-Rail - 20' long day $ 0.44 NONOP TRAF 56 Asphalt ZIer-AZ360DRW hr $ 104.19 PGT-C ZIPR 57 Sub. PUMPS- 2 Inch wllhoses hr $ 3.56 PUMWA APMP Be Trash Pump-3 Inch hr $ 5.66 PUMWA APMP 59 Sub. Pumps- 31nch hr $ 5.66 PUMWA APMP 60 Trash Pump-4 Inch w/hoses hr $ 24.43 PUMWA APMP 61 Trash Pum -6Inch hr 1 $ 28.29 PUMWA APMP 62 D na ac CA15 hr 1 $ 6451 ROVIB DVPC 63 IR DD22 Roller hr $ 42.61 ROVIB I-R 64 IR DD24 Roller hr $ 41.81 ROVIB I-R 65 Rammax AR26 hr $ 41.81 ROVIB I-R 66 Rammax P33/24 Trench Roller hr S 1953 ROVIB RAMX 67 Rammax P33/24 Trench Roller - Remote Control hr $ 18.82 ROVIB RAMX 68 Walk Bewhind Concrete Saw hr $ 7.60 SAWCO ABOP 69 Saws Concrete and Masonry hr $ 3.34 SAWCO ABOP 70 Chain Saws hr I $ 5.34 SAWCO ABOP 71 BOBCAT 853 Skid Steer Loader hr 1 $ 38.05 TRACS >50 72 CAT 226B Skid Steer Loader hr $ 38.05 TRACS >50 73 CAT 246C Skid Steer Loader hr $ 38.05 TRACS >SO 74 Message Board Solar w/remote -Trailer Mounted hr $ t2.09 TRAFA CMSN 75 Solar Arrow Boards - Trader Mounted hr $ 3.40 TRAFA FLAS 76 Type 1 Barricade with light - per day day $ 12.00 TRAFC MAR 77 Type 1 Barricade w/o light - per day da $ 8.00 TRAFC 1BAR 78 Traffic Cone / Delineator Portableper day day $ 5.00 TRAFC 3DEL 79 H d Shores(Per Da day 1 $ 31.0o SHOR 80 Shoring Pump Per Da da $ 12.00 SHOR 81 Utility Trailer - AZ -Tex 16 -'02 hr $ 7.11 TRAIT T13-2 82 Tilt Top Trailer 2 Axle-Tralimax TO 42 -'08 hr $ 7.11 TRAIT TB-2 83 Tilt Top Troller 3 Axle-Trailmax TRD 54 -'05 hr $ 7.11 TRAIT TB-2 84 Low Bed Trailer Cozad 40xle-16whels with TT Kenworth hr $ 91.17 TRUCK T&TT 85 40 Ft Flat Bed Trailer with TT Kenworth hr $ 91.17 TRUCK T&TT e6 Truck -Tractor Kenworth hr $ 91.17 TRUCK T&TT 87 Pick Up Trucks hr $ 29.6o TRUCK T&'IT Be Flat Bed Trucks hr $ 37.38 TRUCK T&TT 89 Water Truck 2000 Gins hr $ 48.65 TRUCK T&TT 90 Water Truck 4000 Gins hr $ 51.92 TRUCK T&TT 91 Camera -CCTV Truch hr $ 135.0o I TRUCK T&TT 92 Bob Tall Dump Teach hr $ 55.69 TRUON TRUN 93 Ford 900010 Wheel Dump Truck hr $ 78.51 TRUON TRUN 94 Sterling to Wheel Dump Truck hr $ 78.51 TRUON TRUN 95 Kenworth TT W/End Dump (SAW hr S go.o8 TRUON TRUN 96 Vacuum -let Truck tqw hr $ t5o.00 VACIT VACT 97 CAT Skid Steer w/Dee Saw/Cutter 18"th. hr $ 71.36 98 CAT Skid Steer/ w/ Cold Planer 18"w hr 1 $ 71.52 251,74 SECTION 3: CERTIFICATIONS See attached separate submission. M 14 251-72 ,QPPE:NDIX ATTACHMENT 5 .CERTIFICATIONS City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 26 of 31 251-73 NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106 the BIDDER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the BIDDER or any other BIDDER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone Interested In the proposed contract; that all statements contained in the bid are true; and, further, that the BIDDER has not, directly or Indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and .will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note: The above Non -collusion Affidavit is part of the Proposal. BIDDERS are cautioned that making a fall certification may subject the certifier to criminal prosecutions , I1 i 7 i A Signed { \A� cL State of California Countyof Los Angeles Subscribed and sworn to (or affirmed) before me on this 24th day of May , 20 18 by Michael A. Prilch proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me Q tlhfic'� Notary Public Signature Notary Public Seal MIKE FRUCW ANDSONS INC, City of Santa Ana - RFP 1 g-032 On -Call Emergency Water and Sewer Repair Services Page 27 of 31 251-74 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies onlythe identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County o'r Los Angeles On Ift 24 I 2O/9 before me, Gregg Arden Alfvegren Notary Public (insert name and title of the officer) personally appeared Michael A. Mich who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged to me that he/she/they executed the same In his/her/their authorized capecity(ies), and that by his/her/their signature(s) on the Instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the Instrument I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. ,. .y'"• ex[ce annen eLtti•[eucrl � WITNESS my hand and official seal. w�?Pl oc uuFOxnU Ul 4w AncMs Coadn• Glw.,�' fIY COM{L ESP. JULY II, ]OID `� Signature (Seal) 251-75 - CITY OF SANTA ANA RFP NO.: 19-032 ON -CALL EMERGENCY WATER AND SEWER REPAIR SERVICES NON -LOBBYING CERTIFICATION The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for Influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress In connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, 'Disclosure of Lobbying Activities," in conformance with its Instructions. This certification is a material representation of Mot upon -which reliancewas.placed..when this transaction was made or entered into. Submission of this certification. is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the_language.of.this. certification be included in all lower tier subcontracts, which exceed $100,000 and that all such subrecipients shall certify aid disclose accordingly. Signed: Title: President Firm: Mike Pdich and Sons, Inc. Date: May 24, 2019 City of Santa Ana - RFP I M32 On -Call Emergency Water and Sewer Repair Services Page 1 of 31 MIKE PRLICH AND SONS INC. 251-76 CITY OF SANTA ANA RFP NO.: 19-032 ON -CALL EMERGENCY WATER AND SEWER REPAIR SERVICES NON-DISCRIMINATION CERTIFICATION The undersigned Contractor or corporate officer, during the performance of this contract, certifies as follows: 1. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. The Contractor shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all Information and reports required by Executive Order 11246 of September 24, 1965, and by rules; YegUlations; arid-oi-ders of -the Secretaryof-Labor; or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules; regulations; or* orders; -the contract may -be -canceled, .terminated, or suspended in whole or in part and the -Contractor -may be declared:ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such.ather sanctions may .,e imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 29 of 31 Ni IKE PRLICH AND SONS INC, 251-77 CITY OF SANTA ANA RFP NO.: 19.032 ON -CALL EMERGENCY WATER AND SEWER REPAIR SERVICES The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subContractor or Contractor as a result of such direction by the administering agency, the Contractor may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any Contractor of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. Signed: kr'AAJ Title: President Firm: Mike Prlich and Sons, Inc. Date: May 24, 2019 City of Santa Ana - ;FP 19-032 On -Call Emergency Water and Sewer Repair Services Page 30 of 31 MIKE PRLICH AND SONS INC. 251-78 MAYOR Miguel A. Pulido MAYOR PRO TEM Juan Vlllegas COUNCILMEMBERS Cecilia Iglesias David. Penaloza Vicente Sarmlenlo Jose solorio CITY OF SANTA ANA PUBLIC WORKS AGENCY 220 S. Daisy Avenue Santa Ana, CA 92703 tmw.sanla-ena.org 714-647-3320 ADDENDUM NO,1: Q & A CITY MANAGER Kdsilne Ridge CITYATTORNEY Sonia R. Carvalho ACTING CLERK OFTHE COUNCIL Norma Mitre-Ramiroz Request for Proposal No. 19.032 On -Call Emergency Sewer and Water System Repair Services June 6, 2019 Notice Is hereby given to bidders that, where applicable, the City of Santa Ana Water Resources Division has made certain clarifications, modifications, and/or deletions, for specifications of RFP 19.032 On -Call Emergency Sewer and Water System Repair Services. ALL OTHER TERMS, CONDITIONS, AND SPECIFICATIONS REMAIN UNCHANGED. Answers to Inquirles/Questions submitted by the deadline are as follows: 1. Q: Does this On -Call require a Community Work Force Agreement like the other bids the city of Santa Ana puts out? A. This is an RFP for on -call emergency repair services, per the RFP, individual Job/task quotes will be requested as the need for service arises. The Community Workforce Agreement terms apply to any project valued at over $250,000 and any single trade project valued at over $100,000. If a condition arises when we request a job/task through this emergency on -call agreement which is quoted at those price points, then the conditions of the City's Community Workforce Agreement would apply for those Jobs/tasks. 2. Q: What Is the value of the on -call agreement? A: Agreement amount has yet to be determined. Thank you for your participation and your Interest in doing business with the City of Santa Ana. Sincerely, Rodolfo Roses, P.E. Senior Civil Engineer CC: Reading File SANTA ANA CITY COUNCIL MIKE PRLICH AND SONS, INC. 5103 ELTON STREET SALDWIN PARK, CA917U6 Wpuul A. P.W. Jhjmvmepaa V=NO apnnlpnlc eaWd Pmulow Jow w0do WWI Cade lWast9a Mayor Maywftnfta Warda wONI WOrd2 Wuda WeNO Wod0 sryArIpld7smi"aa.om Menena nlasp narnvenran'O,onla-one, do "_ay,pp h2llohaanniaanwOm 1140�1 Jdl CITY OF SANTA ANA RFP NO.:19-032 ON -CALL EMERGENCY WATER AND SEWER REPAIR SERVICES ---End of RFP NO 19-032--- EEMW City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 31 of 31 MIKE PRLICH ANDSONS INC. 251-80 EXHIBIT B SECTION 2: FEE SCHEDULE: LABOR AND EQUIPMENT RATES See attached separate submission. 0 13 251-81 Appendix ATTACHMENT 2: FEE SCHEDULE Certification - I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Appendix: Attachment 1) and am familiar with the scope of work. I am familiar with all the existing conditions and limitation that may impact work requests. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the City for clarification prior to the submission of my proposal. Proposer shall submit hourly rates schedule, which shall Include but not limited to, direct and Indirect costs for labor, for staff per job classification, material, equipment rates, overhead, incidental supplies, travel, mileage, and fuel. Any special materials will be purchased by the contractor only after discussed and authorized by the City projects manager or designee In writing. Prior to commencement of services, Contractor shall provide separate quotes, upon request by the City, which shall be approved by the City's Public Works Agency. Note: This contract is subject to prevailing wages. Mike Pdlch and Sons, Inc. 95A724359 COMPLETE LEGAL NAME OF COMPANY TAXPAYER I.D. NO. Baldwin Padt, CA Michael A, Prllch President blds@mll(epdicliaridsons.com (626) 813-1700 EMAILADDRESS PHONENUMBER 760474-A 1000006538 CSLB NUMBER DIR REGISTRATION NUMBER City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 15 of 31 MIKE PRLICH ANDSONS INC. 251-82 CITY OF SANTA ANA ON -CALL EMERGENCY SEWER AND WATER SYSTEM REPAIR SERVICES PROPOSAL NO. 19-032 MIKE PRLICH AND SONS, INC. LABOR RATES JULY 1, 2019 - JULY 1, 2020 CRAFT TIME HRLY RATE Laborer Group 1. STD , "§$Np ovr i,A "WIM0 6BL Laborer Group 2. STD IN OVT D _7513 L Laborer Group 3. STD W.Mv , TIM 014 041 OVT D9Lg Log �Af Laborer Group 4. STD Ow DEL --- Operator Eng. Group 8 STD WMA a 'M OVT i)BL Q - L. Foreman Operator STD MAIM 0xv. 1:00) '10; Teamster Grp. 5 STD Ovr DEL 'Rates are subject to an estimated annual increase of 39pursuanito &wwwd w1an w1daff6hi 251-83 MIKE PRLICH AND SONS, INC. Equipment Inventory and Hourly Rate EQUIPMENT Unit Rate Class Make I Air Compressor 125 cfm hr $ 19.55 AIRCP PORT 2 Air Compressor 185 cfm hr $ 21.0o AIRCP PORT 3 90 lb Jack Hammer hr $ 2.40 AIRTO ATOL 4 Rivet Buster hr $ 1.90 AIRTO ATOL 5 A1r Digger hr $ 1.90 AIRTO ATOL 6 Broom - Self Propelled hr $ 46.35 BRMSW SFPR 7 Broom - Pick Up Tye C95 Athey no model hr 1 $ 106.40 BRMSW SWSP e MultiQuip Walk Behind Roller hr $ 0:86 COh1HG COMP 9 Compactor - Hand Held hr $ 431 CQMHG COMP 10 Powder Puff Compactor hr $ 4,21 CQMHG COMP 11 Multi ul lum Ing lack hr $ 421 CdMHG COMP 12 Multi ht .Vibrato Plate hr '$ 4:21i ' -CG ` HG COMP 713 Concrete Mixer hr i 3.35 : CONMX SORP 14 Concrete Vibrator hr 1.66.`' "CONVB CVIB 15 Generator Honda 5000 hr 4.23:. `;ELGEN GEN 16 Generator MMC35-25hw hr 1 $ 14.86' ELGEN GEN 17 Generator MQ DCA6055r2-4ekw hr I s i495' `ELGEN GEN 18 Generator DCA6o$5 45 hr S 14:95 ELGEN GEN 19 Light Towers - 4 Lights hr lkn ' ELGEN LITE 20 For Lift Cham ion 53o-70 - 7000lb r $ 46:02 ` FKLFT FLT 21 Grader - CAT 12 hr $ 54.40' `GRADR CAT 22 Hammer (Comparable to HVR-60 hr 1 M R ABI 23 Hoe Rams 06-OB47 hr I S 'Iftf ' All MR NPK 24 CAT B20L Exca. hr $. .:05: HCECL CAT 25 CATB456LEkca, - hr -2o7d6: :HC GL- CAT 26 Komatsu PC75 Exca. 2kw169h -i6 4701b hr 1 $ 3646 1 CECL CAT 27 CAT 235.Exca. hr I S mazy' HCECL CAT 26 CAT245 Exca. '232i38= HCECL CAT 29 CAT 3138 Exca. (Comparable to 312 hr 1 $ 59..W`f HCECL CAT 30 CAT 300.9 Excavator hr 1 $ '.W:38'1 CELL CAT 31 CAT B07-7 Excavator hr 1 $ -Z9.99',I CQCL I CAT 32 CAT 305 Excavator hr 1 $ 40.721 CECL I CAT 33 CAT 308 Excavator hr -$ `'"f17i31'* '4iIQECL CAT 34 KomatsuPC300-7 Exca h'r'"''$" 09:8J` HCECL"- 'HOMA 35 Komatsu PC600 LC-6 Exca hr 1 $--276i00. HCECL I ROMA 36 Komatsu PC88:Exca hr 1 $ :.45� H. ECL KOMA 37 Grove Crane'RT529B .hr $ ':77;52-. -HCE5P- GROV Be Galion Crane.. Com arable to150P hr -b�6.11' I . ETG GALN 39 Dresser :Crane Com arable to Ga ion 150 hr `$ ' 716.1f : "110ET.G GALN 40 CAT Waco: hr $ 4%07 - +DRRT CAT -4b- CAT 936-RT-Loader..... .. .. ......._ ...fir__. 4-•-SW9::..shOR111-.. ,...CAT..... . 42 CAT 95430A RT. Loader hr$ .70S2.: ..LDRRT CAT 43 CAT 95oF RT Loader hr $ 11456. LDRRT CAT 44 CAT 9566 RT Loader hr '1 '126's87 LDRRT CAT 45 CAT 420 4wheel drive Bachhoe hi 3 5;3 0i ,. LDRRT CAT 46 CAT 430E Backhoe hr $ 67.27 LDRRT CAT 47 CAT 446D Backhoe hr $ 75.42 LDRRT CAT 48 CAT 45OF Backhoe hr $ 81.00. LDRRT CAT 49 CAT RT Loader 9280 hr $ 87,o.6,.. LDRRT CAT 5o CAT 93BG RT Loader hr $ 107.00 LDRRT CAT 51 Kawasaki 65ZIV RT Loader hr $ 83.6B LDRRT KAWA 52 Kawasakl7OZ IV RT Ldr(Comp to 80Z II hr $ 107.43 LDRRT WA 53 Steel Plates Non -Skid -1° th-1-112° th da $ 27.0o NONOP MISC 54 Crash Cushlon Barrel -filled day $ 1.17 NONOP TRAF 2510084 Equipment Inventory and Hourly Rate EQUIPMENT Unit Rate Class Make 55 K-Rail - 20' long day $ 0.44 NONOP TRAP 56 Asphalt Zier-AZ360DRW he $ 104.19 POT-C ZIPR 57 Sub. Pumps- 21nch w//hoses he $ 3.56 PUMWA APMP 58 Trash Pum -31nch he S 5.66 PUMWA APMP 59 Sub. Pumps- 3 Inch he $ 5.66 PUMWA APMP 60 Trash Pump-4 Inch w/hoses he $ 24.43 PUMWA APMP 61 Trash Pum -6Inch he $ 28.29 PUMWA I APMP 62 D na ac CAI5 he $ 64.51 ROVIB DVPC 63 IR DD22 Roller he $ 42.81 ROVIB I-R 64 IR DD24 Roller he $ 41,81 ROVIB I-R 65 Rammax AR26 he $ 41.81 ROVIB I-R 66 Rammax P33124 Trench Roller fir $ 1953 ROVIB RAMX 67 Rammax P33/24 Trench Roller- Remote Control he $ 18.82 ROVIB RAMX 68 Walk Bewhind Concrete Saw he $ 7.60 SAWCO ABOP 69 Saws Concrete and Mason he $ 334 SAWCO ABOP 70 Chain Saws he $ 334 SAWCO ABOP 71 BOBCAT 853 Skid Steer Loader he 1 $ 38.05 TRACS >50 72 CAT 226B Skid Steer Loader he 1 $ 38.05 TRACS >50 73 CAT 246C Skid Steer Leader he $ 38.05 TRACS >50 74 Message Board Solar w/remote -Trailer Mounted he $ t2.09 TRAFA CMSN 75 Solar Arrow Boards - Trailer Mounted he $ 3.40 TRAFA FLAS 76 Type 1 Barricade with light - per day day $ 12.00 TRAFC tBAR 77 Type 1 Barricade w/o light - per day da $ 8.00 TRAFC IBAR 78 Traffic Cone / Delineator (Portable) per day da $ 5.00 TRAFC 3DEL 79 W d Shores(Per D do $ 31.00 SHOR 80 Shoring Pump Per Da da $ 12.00 SHOR 81 Utility, Trailer - AZ -Tex 16 -'02 he $ 7.11 TRAIT TB-2 82 Tilt Top Trailer 2 Axle -Trallmax TD 42 -'08 he $ 7.11 TRAIT TS-2 83 Tilt Top Trailer 3 Axle-Trallmax TRD 54 -'05 he $ 7.11 TRAIT T13-2 84 Low Bed Trailer Cozad 4axle-16whels with TT Kenworth he $ 91.17 TRUCK T&TT 84 40 Ft Flat Bed Trailer with TT Kenworth he $ 91.17 TRUCK T&TT 86 Truck -Tractor Kenworth he $ 91.17 TRUCK T&TT 87 Pick Up Trucks he $ 29.60 TRUCK T&TT 88 Flat Bed Trucks he $ was TRUCK T&TT 89 Water Truck 2000 Gins he $ 48.65 TRUCK T&TT 90 Water Truck 4000 Gins he $ 51.92 TRUCK T&TT 91 Camera -CCTV Truck he $ 135.00 TRUCK T&Tt 92 Bob Tail Dump Truck he $ 55.69 TRUON TRUN 93 Ford 900010 Wheel DumpTruck hr $ 7851 TRUON TRUN 94 Sterling 10 Wheel DumpTruck hr $ 78.91 TRUON TRUN 95 Kenworth TT w/End Ddm SAXL hr $ 90.09 TRUON- TRUN 96 Vacuum -let Truck Oc hr $ 150.00 VAC1T VACT 97 CAT Skid Steer w/Dee Saw/Cutter 18`th. he $ 71.36 98 CAT Skid Steer/ w/ Cold Planer 16°w hr $ 7152 251? P$�i 251-86 Exhibit 2 AGREEMENT TO PROVIDE ON -CALL EMERGENCY WATER AND SEWER SYSTEM REPAIR SERVICES THIS AGREEMENT is made and entered into this 20th day of August, 2019 by and between Paulus Engineering, Inc. ("Contractor"), 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. On May 16, 2019, the City issued Request for Proposal No. 19-032, by which it sought qualified contractors to provide on -call emergency water and sewer system repair services for the City's Public Works Agency. B. Contractor submitted a responsive proposal that was among those selected by the City. Contractor represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 19-032 and addendum thereto. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such 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 On an as -needed basis, and at the City's sole discretion, Contractor shall perform the services described in the scope of work that was included in RFP No. 19-032 and addendum thereto, and as more specifically delineated in Contractor's proposal, which is attached as Exhibit A and incorporated in full. 2. COMPENSATION a. City neither warrants nor guarantees any minimum or maximum compensation to Contractor under this Agreement. Contractor shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B. Contractor is one of three contractors selected to provide services on an as -needed basis under RFP No. 19-032. The annual compensation for services provided by all contractors selected under RFP No.19-032 shall not exceed the shared aggregate amount of $500,000 during the term of this agreement, including any extension periods. Page 1 of 8 251-87 b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and terminate on August 19, 2022, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended for one 2-year period upon a writing executed by the City Manager and City Attorney. 4. PREVAILING WAGES Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the services being performed are part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 5. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement ("Documents & Data!). Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and Page 2 of S 251-88 perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were provided to Contractor by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 7. INSURANCE Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the Califomia Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Contractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $ 1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Contractor pursuant to this section: (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. Page 3 of 8 251-89 (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect, by contractor, without thirty (30) days prior written notice to the City. (iv) Contractor shall supply City with a fully executed additional insured endorsement. If Contractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to famish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials expended prior to notification of termination. Contractor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. S. IINDEMNIFICATION Contractor agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor or its 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 Contractor farther agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8, the above indemnity shall be 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 Contractor. 9. INTELLECTUAL PROPERTY INDEMNIFICATION Contractor shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work Page 4 of 8 251-90 product or documents provided by Contractor to the City pursuant to this Agreement. 10. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 11. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Contractor agrees 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 importance, but in no event less than reasonable care. "Confidential Information" shall 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 Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City. 12. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. 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: Page 5 of 8 251-91 To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714- 647-6956 Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, CA 92702 To Contractor: Paulus Engineering, Inc. 2871 East Coronado Street Anaheim, CA 92806 Attn: Jason Paulus, President 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 timeframes, weekends, federal, state, County or City holidays shall be excluded. 14. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor regarding 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 Contractor. 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 Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without Page 6 of 8 251-92 the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other contractors retained by City. 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy, No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to 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 Contractor consents to the City's use thereof for such purposes as the City deems appropriate. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. NON-DISCRIMINATION Contractor shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19. 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. Page 7 of 8 251-93 20. PROFESSIONAL LICENSES Contractor shall, throughout the tern of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 21. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All exlribits 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: DAISY GOMEZ CLERK OF THE COUNCIL APPROVED AS TO FORM SONIA R. CARVALHO City Attorney If Ely: a{VI/. Ji&h M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency CITY OF SANTA ANA Kristine Ridge City Manager CONTRACTOR Paulus Engineeriru Name: Title: Page 8 of 8 251-94 EXHIBIT A PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION Request for Proposal (RFP) for On -Call Emergency Water and Sewer System Repair Services RFP NO.:19-032 To: City of Santa Ana Public Works Agency 215 S. Center Street, Building A Santa Ana, CA 92703 Attn: Cesar Barrera, P.E. Project Manager (714) 647-3387 Office cbarrera@santa-ana.org 251-95 PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION STATEMENT OF QUALIFICATIONS 251-96 PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION COVER LETTER 251-97 Padus Engineering, hc, 2871 East Coronado Street 714) 632-3322 Office Anaheim, CA 92806 714) 632-5077 FAX June 13, 2019 RE: Request for Proposal for On -Call Emergency Water and Sewer System Repair Services Dear Mr. Barrera, Attached is a Paulus Engineering, Inc. (PEI) Corporate Resume that will provide you with a brief description of our company and business experience. Also, included is a resume for Roger Betten, one of our veteran Project Managers. PEI is a corporation that has over 35 years of experience in the Wet Utility Industry and has worked on numerous successful projects in Southern California. We have crews available 24 hours a day, 7 days a week. PEI owns and maintains approximately 30 pieces of heavy equipment, along with 25 pieces of support equipment for operation on its projects. In addition to the above, PEI has established an outstanding safety record, having a current MOD Rate for Worker's Compensation at .062. Included in this package is our Statement of Qualification, Fee Schedule and Certifications per the Submittal Requirements. Sincerely, Jason Paulus President Paulus Engineering, Inc. epo Ow -u- PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION 251-98 PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION AGREEMENT STATEMENT 251-99 Paulus Engineering, Bnco 2871 East Coronado Street 714) 6323322 Office Anaheim, CA 92806 714) 632-5077 FAX June 13, 2019 RE: Request for Proposal for On -Call Emergency Water and Sewer System Repair Services Dear Mr. Barrera, Paulus Engineering Inc. is in full concurrence with all the provisions as contained in the standard agreement provided in the RFP Package. We are fully aware of The City's expectations and intend to abide to any and all provisions set forth. Sincerely "la son Paulus President Paulus Engineering, Inc. 0 PE i oz ,a_ PAULUS ENGINEERING. INC. PIPELINE CONSTRUCTION 251-100 PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION FIRM & TEAM EXPERIENCE 251-101 _954 PAULUS ENGINEERING, INC. PRCLIMC CONSTRUCTION Storm Drain • Water • Sewer fsla%bed 1983 (714) 6323975 /inlo�na�fusenry'nearin0.ram Founded by CEO Ron Paulus in 1983, and incorporated 1996 under the hands-on leadership of Jason Paulus, Paulus Engineering, Inc. (PEIi continues the company's legacy that specializes In wet utility pipelines, installing storm drainage systems, water pipelines, sewer mainlines, pump stations, lift stations, and fireline for public and private commercial, Industrial, institutional and residential new developments and backbone infrastructure throughout Southern California. "For over3S years, we pride ourselves in providing excellent construction services from start to jinlsh, safely, on time and with repeat business and satisfied, loyal customers where the results speakfor themselves. - Capabilities —PEI has hundreds of years of combined team experience In underground wet utilities ranging from Ih" to over120" pipeline; Contracts ranging from several Hundred Thousand to Multi -Million Dollars; with Millions of linear feet of pipeline installed at depths over 30 feet. o Storm Drainage Systems— RCP, HDPE, CMP, Retention/Detention Systems, Catch Basins, Junction Structures, Transition Structures, Fllterrap Units, Contech® Stormceptors, Oldcastle Precast®, Modular Wedands'" Bloretention Drainage Systems, Pumps Stations, o Sewer—VCP, PVC, Sewer Manholes, CCTV, Cleanout, Grease Interceptors, Laterals, UR Stations, o Water— PVC, Ductile Iron Pipe, CML&C, Includes Domestic, Reclaimed/Recycled Water Main Lines, Water Services, Air Vac assemblies, Blow -off assembly, Detector Checks, Backflows, Chlorination and Testing. o Fire line— PVC C900, DIP, Fused HDPE, Backflows, Detector Checks, FDC's, Fire Hydrants. o Trenching for Gas line, Electrical conduit, Time Warner, & Verizon Conduits. Paving over our own trench work, T-Cut, grind and cap. ✓ Licensed CA # 724114 A HA2, Bonded, Insured, Certified Payroll/Prevailing Wage, Will do PLA work! ✓ Safety -conscious — We hold one of the best safety records In our trade, with EMR safety rating under 1.00 for over S consecutive years. ✓. Emergency Response , We are a long-time, trusted, on -call 24/7 emergency service provider with several cities and water districts to repair ruptured pipelines. ✓ Equipment— We own and maintain the latest model equipment with full time expert mechanics who regularly maintain all equipment to reduce downtime, ensure safety, and Improve production to ensure timely completion of all projects. ✓ Tech Savvy — We use paperless technology with some of the best and latest software to manage all aspects of business. ✓ Associations —Active members of the Building Industry Association of Southern California (CBIA, NAHB, CHF), The Associated General Contractors of America (AGC), Orange County Water Association (OCWA) Past Performance Clients Include: public and Private Public Works Agencies for Capital Improvements with Cities, Counties, Water Districts such as: IRWD, EMWD, SMWD, MNWD, JCSD, YLWD, Serrano Water Distdct, Anaheim, Santa Ana, Buena Park, Newport Beach, etc. Private Industrial (Concrete tilt -ups, Industrial Centers, Logistics Centers); Institutional (Churches, Schools), Commercial (Retail, Shopping Centers, Office Buildings, Parking Structures): The Irvine Spectrum, Beckman Business Center, Prologis, Burbank Town Center, Kimball Business Park (China), The Grove (Los Angles); Residential (Single Family, Multi -Family, Cluster, CFD, Planning Areas, major Infrastructure and backbone work for new developments) such as The Irvine Company, Toll Bros, Shea Homes, Baker Ranch, and many more. Learn more About Us by visiting our website httos•iiwww oaulusengineering com( for more Information Including Images, videos, oLiirsy7ymgdiaand more. Contact ustodayand let usbeyourmnbactorofchoice ! @ a tkceilent Customer and Vendor References! 91at uriap Rpetne Pidasknols • 20711. Gawdo 8t, Anchft ib 92806 • rrerprtiMengneedy.tgo Paden Ea7lteekg, Inc • Geaud Ingle iq lonhcdol0c 124111 251-102 Roger Betten ( Project Manager) Education: High School 12 yrs. Iowa State University yrs. Iowa Land Improvement Contractors Survey Education 1 yr. Work Experience: Jensen Construction 1965 to 1969 3 yrs. Positions: Equipment Operator, Forman, Superintendent Type of Work: Installation of under ground drainage pipe for farm land owners approximate 250,000 feet per year. Equipment: Parsons 350 and 450 Trenchers, J.D. 310 & 410 Backhoes, J.D. 450 Dozer. Betten Construction Company Inc. 1970 to 198616 yrs. Position: President Type of work: Installation of under ground drainage pipe 700,000 to I million feet per year, design and install surface waterway drainage for farmland owners. Equipment: Parsons 450 Trencher, Fiat Allis 21B Dozer with mole, Fiat Allis 15 Dozer with winch, Fiat Allis 21B with 14' blade, J.D. 450 backboes, Multiple Track Tractors with trailers. J.R. Pipeline Inc.1986 to 1988 2 yrs. Heavy Equipment Operator Equipment: Cat. 235, 225 & 245 Exc., Case Baekhoes, Cat 966 loader, P&H Crane. Harbor Companies Inc. 1988 to 200012 M. Positions: Heavy Equipment Operator, Forman, Superintendent and Project Manager Equipment Experience: Mitsubislu 300 Exa, Cat. 225 Exc., Hitachi 40D, 450 & 550 Exc, with concrete processor, LabountyUP20 and UP40, UB 5000# & 7000# breakers, Bobcat 486, with breaker, sweeper and buckets, Cat. 446 hoes withbreakers, Ford 555, 655 & 755 backhoes, Cat. 950 & 966 loaders, Cat. Track loaders. Cat. Dozer. Job responsibility: Coordinate equipment and work forces for job application. Coordinate project scheduling with General Contractors. Coordinate abatement and cleanup of lead base paint from bridge demolition operations. General Contractors and Jobs: MCM Const. Co. Frwy. 5 and 91 intersection demo bridges Ball Ball & Brosmer Fwy 5 and Jamboree overpass demo Riverside Const. Co. Frwy 10 and Washington bridge Palm Springs Kewitt Pacific Const. Alameda Corridor three tressel RxR bridge Removal over the L.A. River 251-103 Hyperion Water Treatment Plant L.A. FCI Const. Co. Santa Clarity and Frwy.14 Sand Canyon Brdg. Demo Ventura Frwy 101 and Rose Ave. Brdg. Santa Barbara and Hwy. 54 Frwy 99 and Merced River Brdg. Demo Atascadero Brdg. Disassemble Morrison -Knudson (Washington Group) Frwy. 10 and Central, Mountain Brdg. Demo Frwy 10 from Frwy 57 and White Ave road removal Norton Air Force Base Runway removals Kaiser Permanente 5 story parking structure demo in Santa Anna Pave Tech Const. Co. Frwy 5 from San Onofre to Ocean Side Paulus Engineering: 2000 to Present Position: Project Manager Job responsibility: Coordinate equipment and work forces for job application. Coordinate project scheduling with General Contractors and Owners General Contractors and Jobs: Snyder- Langston Builders Entertainment Center Frwy. 5 and 405 Shady Canyon Golf Course Irvine The Pike ® Harbor View Long Beach L.N.R. Warner Center in Woodland Hills OPUS West Constr. Co. OPUS Center Irvine H SHEA Homes Ladera Ranch 5 tracts Aliso Viejo 3 tracts Yorba Linda 3 tracts City of Walnut i tract Public Works Jobs Irvine Ranch in Irvine Garden Grove City of Riverside Walnut Valley Water District Rowland Water District City of Stanton 251-104 WILL RARRIS 214 N Myers St Burbank, CA 91506 714-514-3513 willharrisng@a,aolcom PROFESSIONAL EXPERIENCE: Paulus Enginearing Inc. - Anaheim, CA 2014 to Present Project Ranges: $500k - $5 Million Project Manager/Estimator: Paulus Engineering is a medium size General Contractor specializing in underground utilities and concrete work My duties included estimating and managing all the utility work. Work included water, storm drain, sewer. Mark Company -Orange, CA Project Ranges: $50k - $3 Million Vice President Pipeline Division: Mark Company Contractor specializing in underground utilities and included estimating and managing all the utility work. sewer and wet/dry utility installation. 2012 to 2014 is a medium size General concrete work My duties Work included storm. drain, W_ 3H3 Construction - Burbank CA 2009 to 2012 Project Ranges: $lk - $250k Owner. Small Residential General Construction. Estimate & Manage, Build Projects from Start to Finish. Bathroom/Kitchen Remodels, New Construction Mark Company -Orange, CA 2005 to 2009 Project Ranges: $50k 43 Million General Manager/Project Manager/Estimator Pipeline Division: Mark Company is a medium size General Contractor specializing in underground utilities and concrete work My duties included estimating and managing all the utility work. Work included storm drain, sewer and wet/dry utility installation. Griffith Company - Sante Fe Springs, CA 2003 - 2005 Project Ranges: $500k - $22 Million Estimator/Superintendent for Heavy Utility Division: Estimated and Managed WWTP upgrades and expansions. Excel Paving Company - Long Beach, CA 2000 - 2003 ProjectRangas: $100k- $85 Million Project Manager/Estimator: Estimated and Managed various paving and utility projects for multiple public agencies. Projects varied from alley upgrades to freeway lane replacements. Den Boer Engineering and Construction - Palm Springs, CA 1996 - 2000 Project Ranges: $100k - $5 Million Estimator/Superintendent: Estimated and Managed W WTP facility upgrades, lift station construction and wet well station upgrades. Calfon Construction Company - Bialto, CA 1988 -1996 Project Ranges: $500k - $5 Million 251-105 Project Engineer: Assisted Superintendent in the management of large pipeline projects. Work included Sewer, Water and Storm Drain in all sizes ranging from 6" to 102" in steel, PVC, RCP and VCP. Willlam JHarris Construction -Los Angeles, CA 1984 -1988 Project Ranges: $50k - $500k Labor Foreman: Supervised crews for both large and small commercial projects. EDUCATION: Contractors License - B - #633317 California State University, Long Beach, CA 1988 -1991 Emphasis on Construction Engineering Management M.A.P.—Management Action Program Training 2006 COMPUTER SHILLS Bid2Win Estimating Software Microsoft Project Scheduling Software Primavera Scheduling Software Microsoft Office 251-106 PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION UNDERSTANDING SCOPE OF SERVICES 251-107 Paulus Engineering, Inc. General Engineering Contractor and Construction Management License Number 724114 Scone Letter Outline Experience Paulus has been an on -call contractor for about a dozen municipalities over the Iast 20+ years. We have performed repairs as small as a water service leak. to 24" waterline breaks costing hundreds of thousands of dollars. All our crews are certified in the latest technologies and safety training the industry has to offer. Performed Tasks Paulus performs water, sewer, and storm drain repair work, which also includes the following scopes just to name a few. 1. Excavation 2. Shoring 3. Traffic Control 4. Saw cutting 5. Asphalt/Concrete repair 6. Dewatering 7. Line Stops 8. Hot taps Approach At Paulus our approach is the salve weather it is a bid task order or emergency call and that is to give you the best product at the best rate possible, We have a 24-hour emergency on call phone system to serve all your needs as they arise. We will be on time and fully prepared to complete the work as needed. 2871 E. CORONADO ST., ANAHEIM, CA 92806 TEL (714) 632-3975 FAX (714) 632-5077 Scope Lettecdoar 251-108 IV .x; PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION ELENT PROM EXPERIENCE 251-109 PE PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION Storm Drain O Water • Sewer Established 1983 (714) 632-3975/info@paulusengineering.com ABOUT Paulus Engineering, Lee (PEI) is a general engineering construction company headquartered in Anaheim, California, and in business for over35yearx We install and convey domestic, reclaimed and fire water pipeline mains, force main and gravity sewer mains, storm drain, pump stations and storm water retention systems for private companies and public agencies and municipalities throughout Southern California. We are CA licensed, bondedandinsuredwith a strong bonding capacity. Paulus Engineering conducts ourselves based on the principle of "Customer First- and quality workmanship in a safe and timely manner. With over hundreds of successfully completed projects all over Southern California, we have established great working relationships with many developers, building contractors, private and public agencies. These relationships and experience help give Paulus Engineering a solid foundation of knowledge and expertise to help us keep your project running on time, safely and profitable. EQUIPMENT Paulus Engineering has its own fleet of heavy equipment excavators, backhoes, loaders and trucks of all sizes to get your project finished ahead of schedule. Our equipment is late model, emission compliant, electronically monitored and professionally maintained by our own staff so there are no 'down times" that could disrupt your project. PROMSSIONAL WORIG ANSHHe Any of the Paulus Engineering team working on your project is a dedicated group of professionals that have been together for many years. We are always learning to stay abreast of the latest trends in our industry to better serve our customers. We work efficiently, safely and use the newest technology for installation, communication and collaboration. Teamwork with. each other and. our customers is key to everyone's success. SArETY YOU CAN TRUST 'Safety always." Being safe on your projects is at the forefront of everything we do and is held as the highest order of priority. We have proudly earned one of the best safety records in our trade with an EMR rating ofunder 1.0 for many consecutive years. This is a safety record you can trust. PROJECTS Paulus Engineering, Inc., has completed site utility projects including commercial tilt ups, entertainment complexes, single family, multifamily, bridge crossings, street utility upgrades, ground water, hard rock installations, and have an on -call 24-hour emergency repair division which includes on -call contracts with Cities and Water Districts. We are non -union, and work with many prevailing wage/certified payroll /projectlaboragreements/PCA/-type projects. -Wearea// ys open/ Below is a partial list as of some of our projects you may recognize. We look forward to becoming your wet utility contractor of choice and partnering with you on your next project) �.aaaii �,ruetieo Wet Utility Pipeline Professionals • 2871 E. Coronado 5t, Anaheim, CA 92806 • mmpauluseaginaeringnm Paulus Engineering, Inc. • General Engineering Conlmclot lic 724114 251-110 PEI PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION President; Paullss F�»gin(xaing, Inc. RESIDENTIAL Storm Drain e Water • Sewer Eslabrrshed 1983 (714) 632-3915/info@poulusengineering.com ✓ Alondra 2 A021, Shea Homes, Mission Viejo, CA, S500K ✓ Augusta, Shea Homes, Yorba Linda, CA 550K ✓ Berkshire Tr 16157, Shea Homes, Ladera Ranch, CA, $580K ✓ Brenexus, Nexus Development. Irvine, CA S I MM (735/755) ✓ Cachette PA 9 Lawson, Pulte Homes, Irvine, CA, S400K ✓ Calypso, Shea Homes, Irvine, $ 320K ✓ Chase Knolls, Snyder Langston Residential, Sherman Oaks, CA, 940K, (1058) ✓ Citrus Heights N.Dev., Lewis Operating, Fontana, CA S750K ✓ Cortessa 2 A 13, Shea Homes, Mission Viejo. CA S91 OK ✓ Covenant Hills, Warmington Homes, Ladera, CA S 800K (761/764) ✓ Eastwood, Irvine, Company, S 1.2MM ✓ Elwood FamilyApts., Lucas Construction, Glendora, CA, S 220K (877/879) ✓ Glenwood Community, Shea Homes Aliso Viejo, CA $7MM (844/843) ✓ Hidden Canyon, Toll Bros., Irvine, CA $ I.5MM ✓ Hill Top Club House - RSM ✓ Hyde Park Apartments, RCI Builders, Los Angeles, CA (995) ✓ Ladera Ranch TR 15904, Warmington Homes, Rancho Santa Margarita, CA (61 I ) ✓ Lexington P24 011sites, Shea Homes, Ladera Ranch, CA S600K ✓ McCoy 200, HOT, Harbor City, CA, $ 300K ✓ Northpark Tr 15745, Warmington Homes, Irvine, CA (586) ✓ Orchard Hills, Toll Bros, Irvine, CA $2MM ✓ Perris Isle Apts., Lucas Construction, Moreno Valley, CA S700K (871) ✓ Placentia Sr. Apts., Lucas Construction. $600K (736,744) ✓ Portola Springs, Planning Area 6, Enclave 5B, The Irvine Company, Irvine, CA, $ 4.2MM ✓ Sagewood @Pavilion Park Shea Homes, Ladera Ranch, CA S520K (989) ✓ Sedona P30, Shea Homes, Ladera Ranch, CA, S490K ✓ Shady Trails, Lewis Operating, Fontana, CA S 370K (814) ✓ Terramor - Temescal Hills, Foremost Development, Corona, CA ✓ The Preserve, Lewis Operating, Chino, CA S 700K ✓ The Retreat (cffsite), Shea Homes, Santa Ana, CA $ 250K (829) ✓ Vands Stage 11, Shea Homes, Aliso Viejo, CA $2.6MM (834/852) ✓ Walden Estates, Shea Homes, Brea, CA $1.1 MM ✓ Wedgewood, Shea Homes, Yorba Linda, CA S 1.5M ✓ Yorba Linda Heights/ Tr 16321 & 15566, Pulte Homes, Yorba Linda, CA 52MM (729/763) War Utility Pipeline Processionals • 2871 E. Coronado 51., Anaheim, CA 92806 • snmi.paulusenglneedng.00m Paulus Engineering, Inc. • General Egineering Connacht Uc 114114 251-111 PEI PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION COMMERCIAL ✓ Anaheim Concourse Industrial Park, Ph 11, Alston Construction, S 500K ✓ Beckman Business Center, Oltmans, Fullerton, CA, $ 4.2MM ✓ Best Buy Retail Center, RCI Builders, Duarte, CA S 700K ✓ Blizzard Parking Structure, Bomel, Irvine, CA (1047) ✓ Burbank Town Center, W.E. O'Neil, $ 400K ✓ Foothill Crossing, Patterson Construction, Rancho Cucamonga, S 935K ✓ Gardenwalk Marrio4 W.E. O'Neil, Anaheim, CA.$550K ✓ Haven Park Oltmans, Rancho Cucamonga, CA S 540K ✓ Home Depot Signal Hills, AJ. Paddleford & Sons, Inc., S 1.3MM ✓ Hyatt House, Downtown Anaheim, S 700k ✓ Irvine Entertainment Center, Cuesta, Irvine, CA, ✓ Irvine Spectrum Entertainment Center, Cuesta, $ 700K ✓ Kimball Building 1-8, Oltmans, Chino, CA $ 4MM ✓ Lincoln Center, Buena Park CA ✓ Los Olivos Market Place, Cuesta, Irvine, CA S I.8MM ✓ Magnon Business Park, Hillwood, Riverside, CA S 1.9MM ✓ Mariners Church Lake Site, Oltmans, Irvine, CA S700K ✓ Matel Distribution, Oltmans, San Bernardino, S 550 ✓ Moreno Valley Industrial Park Phase 2, Oltmans, S 750K ✓ Moreno Valley Marketplace, CW Driver Construction, $ 1 MM ✓ North Star Golf Club, Palm Desert, CA $ 3.2MM ✓ Orchard Hills Retails Center, Cuesta, Irvine. CA, S865K ✓ Pacific Pointe East, Millie & Severson, Long Beach, CA, S 1.3MM ✓ Proctor & Gamble Distribution, Panattoni Development, Moreno Valley, S2.7MM ✓ Prologis Park Phase I, Oltmans, Beaumont, CA, $2.7MM ✓ Renaissance Buildings 5 & 6, Hillwood, Rialto, CA $ 2.5MM ✓ Serrano Business Park, Oltmans, Fontana, CA S905K ✓ Sierra Lakes West, JJ. Paddleford & Sons, Fontana, CA, S 890K ✓ The Commons, AJ. Paddleford & Sons, Inc.. La Verne, CA $ 520K ✓ The Grove, Whiting Turner, Los Angeles, CA, $ 2MM ✓ The Pike at Harbor View, Snyder Langston, Long Beach, CA $1.5MM ✓ The Shops on South Lake, Lyle Parks Jr., Pasadena, CA ✓ The Strand, Snyder Langston, Huntington Beach, CA S I.4MM ✓ Toyota, Lusardi, Rancho Santa Margarita, CA ✓ Westminster City Yard and PD Training Center, CW Driver, S 640K ✓ Yorba Linda Town Center, Near -Cal, $ 3MM Storm Drain a Water o Sewer fstahhshed 1983 (714) 632 3975 /info@paulusengineeling.mm V7081ilily Ppeline I'm essionals • 28711. Coronado St., Anaheim, CA 92806 • vrvnapoulusenglneelingsom Paulus Engineering, Inc. • General Engineering Conimchn lic 724114 251-112 PE PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION PUBLIC WORKS Storm Drain • Water • Sewer Es1a61ished 1983 (714) 6323975/mfo@poulusengineeling.com ✓ Calle Medusa Water - Temecula, Rancho California Water District (RCWD), $798K, (#992) ✓ Lampson Ave/Twintree Circle Sewer - Garden Grove, for the City of Garden Grove, $976K (#967) ✓ Malvern Ave Storm Drain - Fullerton, for the City of Fullerton, S 278K, (#968) ✓ Mission Viejo Lake Brine Discharge Pipeline, Mission Viejo, for Santa Margarita Water District (SMWD), for $313K (# 1054/ 1059) ✓ Morton Road Uft Station Pump Replacement, Perris, CA, for EM WD, S 391 K (# 107 11 ✓ Ontario Ave Zone 4 Waterline - Corona, for the City of Corona, $856K ✓ Portola Hills Lift Station, Irvine, IRWD, S 1,129,197.00 (#983) ✓ Portola Zone 9 Sewer , Irvine, ✓ PRS I & 2 Rehab, Anaheim, for City of Anaheim, S377K (# 1086) ✓ Springdale Water Main - Huntington Beach, ✓ St James Sewer Relocation - Newport Beach, CA ✓ Teed Street Storm Drain, Lake Forest, for City of Lake Forest, $ 546K (# 1080) ✓ Temple Hills Storm Drain - Laguna ✓ UCI Cooling Tower Recycled Water, Irvine, for IRWD, S250K (# 1062) ✓ University Ave Cathodic Protection, Irvine, ✓ Valve Replacements PH 11, Laguna Niguel, for Moulton Niguel Water District, $1,106,730.00 (# 1086) ✓ Zone C Recycled Water System Improvements, Mission Viejo, for Santa Margarita Water District (SMWD), for S 2,035,45 1.00 INSTITUTIONAL ✓ Anaheim HS, MP South Inc., S 37K (#780) ✓ Bonita Cyn Sports Park Newport Beach, Castello Engineering (0628) ✓ Cal Baptist University Lancer North Plaza, Riverside, Balfour Beatty Construction, S 214K (#993) ✓ CSUN Site Utilities, Northridge, Bomel Construction, S 141 K (0894) ✓ First Evangelical Free Church, Brea, S 282K (#866) ✓ First Evangelical Free Church, Fullerton, #S 292K (#887) ✓ Grace Bible Church, Anaheim, S 14K (#792) ✓ Irvine Medical Center, Irvine, Caisteal Builders, $ 313K (#861) ✓ Saddleback Church Cleaning of SD BMP, Lake Forest, , $8K (# 1009) ✓ Silverado Elementary School, Silverado, CA, Interlog Construction (# 1063) ✓ Skfrball, South Hall Bldg, Los Angeles, MATT Construction, S 94K (#682) ✓ St Nicolas Parish, Laguna, Hoffman Finn, S85K (#905) ✓ West Hollywood Library, West Hollywood, ✓ Whittier College Aquatic Center, Whittier, CW Driver, ✓ Xavier College Preparatory HS, Thousand Palms, Landmark/SDC, $ 585K (836) ✓ And many, many morel Wet Uglily Pipeline Professionals • 2871 E. Coronado St., Anaheim, CA 92806 • enVncpauluseagineelinponn Paulus Elilineering, Inc. • General Engineering Canhoclor lic 724114 251-113 PE Storm Drain • Water o Sewer Fsra6fished 1983 (714) 632-3975/info@paulusenginee(ng.com PAULUS ENGINEERING. INC. PIPELINECONSTRUCTION REFERENCES: (in alpha order) RESIDENTIAL: I. Barry Osborne, Offsite Superintendent, Shea Homes (retired but willing to provide a reference). M (714) 822- 5636: BarD-/.Osborne@SlieaHomes.com 2. Dave Burger, Sr. Construction Manager, Irvine Company, dburaer@irvinecomoanvcom M (714) 791-9257/ O: (714) 673-6327, 550 Newport Center Dr., Newport Beach, CA 92660-701 I 3. Isaac Ayala, Project Manager, Snyder Langston Residential, M(949) 331-0487; iavala@snvderianoston.com 4. John Vandervelde, VP of Operations/Land Development, Shea homes; O (949) 526-8815 Jolin.Vandervelde@SlieaHomes.com 5. Mark Montoya, VP Multifamily, Snyder Langston, M (626) 741-8428/ mmonrova@sl-residential.com 6. Martin Leon, Director of Construction, The Irvine Company, M (949) 279-5034, mleon@irvinecompany.com 7. Mike Rodebaugh, Sr. Dir of Construction & Engineering, Irvine Community Development Company/Irvine Company,• M (949) 395-1237 / Of (714) 673-6327/ 550 Newport Ctr Dr., Newport Beach, CA 92660. mrodebauoh@itvinecomoanv com COMMERCIAL \ INDUSTRIAL REFERENCES; I. Bob Klaewtanong, Vice President of Development, Sares Regis, M (949) 463-3264, bklaewtanono@sares- reais.com 2. Dan Wozniak, Construction Director, Oltmans, M (310) 489-5553/0 (562) 948-4242 danw@o)tmans.com 3. Darin Lee, Project Manager, Oltmans Construction, (562) 94&4242/ darinl@cltmans.com (Reference Beckman Project) 4. Devin Alexander, Millie &Severson, now with Monarch Construction M (949) 400-9035 5. John Coronel, Project Executive, Millie & Severson, Inc. (562) 49373611 x 243 / johnc@mandsinc com/ M (562) 889-1831 (Reference Long Beach project) 6. Mike Thomas, Project Manager, Hillwood Construction Services, M(626) 483-8866 / mike.thomas@hillwood.co (reference Renaissance Bldg 5) 7. Robert Caveche, Vice President, Millie & Severson, (562) 493-361 1 / rcavecche@mandsinc.com 8. Steve Hollis, IDI Logistics, VP Construction, M (949) 351-7243 / Steve.Hollis@idilcoistics.com PUBLIC WORKS REFERENCES - I . City of Anaheim, David Kim, Principal Engineer, Water Planning Resources, (714) 765-4206 / dkim@anaheim net/ Bill Moorhead, Principal Civil City Engineer (714) 765- 4165/ bf-noorliead@analieim.net ref PRS I & 2 Rehab 2. City of Lake Forest, Doug Erdman, Asst., City Engineering (949) 282-5233 / O (949) 461-3400 / derdman@lakeforestca.aov, Reference Teed Street Storm Drain. 3. City of Newport Beach, Michael J. Sinacori, P.E. , Acting City Engineer, (949) 644-3342. 4. City of Westminster, Jake Ngo P.E., Deputy City Engineer, (714) 548-3459 / inoo@westminster-ca oov 8200 Westminster Blvd., Westminster, CA 92683. - 5. Eastern Municipal Water District (EMWD), Karl Roland, Construction Inspection/Field Engineering Dept., (951) 928-3777 x 4442 / rolandk@emwd.ora , Reference Morton Road Lift Station Pump Replacement 9let 011111y Pipeline holessianols • 2871 E. COlanada St., Moheun, CA 92806 • wvnr.paulusen&aatilg.com Paulus Engmeeting, Inc. • General Engineering Connactot lic 724114 251-114 Storm Drain • Water • Sewer fsinhhhed I F83 PE j (714) 632-3975/info@poulusengineeling.com PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION Continued PUBLIC WORKS REFERENCES: 6. Irvine Ranch Water District (IRWD), Harry Cho, Project Manager (949) 453-5675/ CHO@irwd.com / Brad Jackson, Construction Inspection Supvsr (949) 453-561 I/ M 9949) 632-0627 / iackson@irwd.com for all On - Call, and Capital Improvement Projects. 7. Midway City Sanitary District (est 1939), Mr. Ken Robbins Jr., General Manager, l;robbins@mcsandsr.com/ (714) 893-3553 / 14451 Cedarwood Avenue., Westminster, CA 92683. 8. Moultan Niguel Water District (MNWD), Steve Merk, Supt of Engineering (949) 795-6799 / smerk@mnwd.com or Matt Crawl, Inspection Supervsr (949) 795-6759/ mcrowl@mnwd.com 9. Serrano Water District, Jerry Vlander, Jr., General Manager (714) 538-0079., general, on -call. Letters ofRecommendalion/Additional References and other resources available upon request. Aei -2 r .1_,c Viet Utility Pipeline Professionals • 2871 E. Coronada St, Anaheim, CA 92806 • smnj.pnulusengineeiing.com Paulus Engineering, Inc. • General Engineetirrg Contractor Uc 724114 251-115 PE I PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION REFERENCES 251-116 Appendix ATTACHMENT 3: REFERENCES List and describe fully the contracts performed by your firm which demonstrate your ability to provide the supplies, equipment or services included in the scope of the proposal specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference ��,�� Customer Name•//rs /�Z :r -.l Contact Individual:.. i i Address: fip j f "0"Phone Number.�97—SSit7— e!�A.l /l1Jg� l� fZlL7 Facsimile Number: Contract Amount: %srxa sowL Year: - Za zon _ z o a z Description of supplies, equipment, or services provided: Reference !/ �j /` Customer Name•, /� � /k l %iYI'✓k:Ontact Individual: Address:f 41.12' Phone Number. 2yf- yz f- 3fL7 Facsimile Number: Contract Amount: 1Z i Year. Zoiy — Zm z a Description of supplies, equipment, or services provided: Reference / Customer Name:�r l o2tact Individual: .� Address: 1z9v /� ,`G ��� Phone Number. ff/- Uzi 777y X/Lzr` Z�' l'ge Facsimile Number: Contract Amount: Year. Zo/9 zoa/ Description of supplies, equipment, or servicesprovided: / THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City of Santa Ana - RFP 19.032 On -Call Emergency Water and Sewer Repair Services Page 16 of 31 251-117 EXHIBIT B PAULUS ENGINEERING, INC. PIPELINE CONSTRUCTION FEE SCHEDULE 251-118 Appendix ATTACHMENT 2: FEE SCHEDULE Certification - I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Appendix: Attachment 1) and am familiar with the scope of work. I am familiar with all the existing conditions and limitation that may impact work requests. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the City for clarification prior to the submission of my proposal. Proposer shall submit hourly rates schedule, which shall Include but not limited to, direct and indirect costs for labor, for staff per job classification, material, equipment rates, overhead, incidental supplies, travel, mileage, and fuel. Any special materials will be purchased by the contractor only after discussed and authorized by the City projects manager or designee In writing. Prior to commencement of services, Contractor shall provide separate quotes, upon request by the City, which shall be approved by the City's Public Works Agency. Note: This contract is subject to prevailing wages. GSLB NUMBER DIR REGISTRATION NUMBER City of Santa Ana - RFP 19-032 Y On -Call Emergency Water and Sewer Repair Services Page 15 of 31 251-119 ,11 Cuslomer- WorkAufhodzedby Descrijetfan PrevnBing Superintendent TIME & MATERIAL WORKSHEET Project We or Dofe: Foremen: TM No. Job No. $ 78.42 $ 117.53 $ 158.64 . _ § _ _ , _... - S _...._r.-_ ..... �.... - $ It 83.72 $ 125.50 $ 187.44 $ - $ _ It , S 06.59 $ 1"Aq $ 193.18 $ $ § - S S6,68 $ 144.89 S 193.18 S $ $ $ 107.38 $ 161.07 $ 214.76 6- § 120.68 $ 180.87 $ 241.16 $ § § - Subtotal $ 3 S Mark Up% 16% S S - TOTAL $ $ S CITY I DARE EQUIPMENT I AMT. INIT TOTAL Ca1345 Excavator HR $ 22 ,00 S Compaction Wheal HR S 49.00 $ Htechl 400/460 Fxcavalor HR S 186.00 6 - Compaslbn Wheel HR $ 40.00 6 Cat 2401330-Yatanl 320 Excavator HR S 140.OD 3 Compac0an Wheel HR It 4040 $ - Cat 962Wheel Loader HR $ 127.00 6 - Cat 960Wheel Loader HR $ 110.0 3 - LowbedTractonTraler HR $ 96.00 $ - CalBackhpa HR $ 88.00 '$ - CempaetionWheelorBroaker HR $ 30.00 $ Boom Truck HR $ $2.00 $ - SuperlODumpTrack HR $ 125.00 $ S Wheel Dump Truck HR $ 62.00 S - 6WheelFlAtSedTruek HR $ 45.00 S - RQWr HIR $ 65.00 6 Crew Truck WIh Tools HR $ 40.00 S - Delivery Truck HR $ 36,00 $ - VactorPump Truck HR 3 145.00 $ - Miss Tools Shoring Jacks - per each Day S 13.00 $ Trends Plates - par each Day S 13.00 $ Trench Shield Day $ 158.00 $ Manhole Shield Day $ 90.00 It 3•PumpwlConnedms Day $ 109.00 $ K-Rd LF 6 18.00 $ Generatgr Day S 92.00 S Alf Compressor Day - • S 135.00 $ Air Sfower Day 8 70.00 $ Confined Space Equipment Day $ 768.00 $ Gas Detection Equipment Day It 69.00 $ Tnift Amow Board Day $ 125.00 $ Traffic Barricades Day $ 226 $ TraBk CoOeslDesmealona Day It 2.28 $ Welk Behind Vibratory Plate Day S 81.00 6 Mlso Small Tools Day 6 78.00 $ Subtotal S Mark Up % 16% 6 - TOTAL 0 AMT MATERI SUECONTR CT, MISC I Unit I TOTAL S - S - S It S - S - $ S It S Subtotal g Mark Up % 16% $ - TOTAL 6 Tool Overhead l PraOt TOTALWORKSHEET $ 251-120 Exhibit 3 AGREEMENT TO PROVIDE ON -CALL EMERGENCY WATER AND SEWER SYSTEM REPAIR SERVICES THIS AGREEMENT is made and entered into this 20th day of August, 2019 by and between T.E. Roberts, Inc. ("Contractor"), 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. On May 16, 2019, the City issued Request for Proposal No. 19-032, by which it sought qualified contractors to provide on -call emergency water and sewer system repair services for the City's Public Works Agency. B. Contractor submitted a responsive proposal that was among those selected by the City. Contractor represents that it is able and willing to provide the services described in the scope of work that was included in RFP No.19-032 and addendum thereto. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such 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 On an as -needed basis, and at the City's sole discretion, Contractor shall perform the services described in the scope of work that was included in RFP No. 19-032 and addendum thereto, and as more specifically delineated in Contractor's proposal, which is attached as Exhibit A and incorporated in full. 2. COMPENSATION a. City neither warrants nor guarantees any minimum or maximum compensation to Contractor under this Agreement. Contractor shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B. Contractor is one of three contractors selected to provide services on an as -needed basis under RFP No. 19-032. The annual compensation for services provided by all contractors selected under RFP No. 19-032 shall not exceed the shared aggregate amount of $500,000 during the term of this agreement, including any extension periods. b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Pa e 1 of 8 25121 Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and terminate on August 19, 2022, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended for one 2-year period upon a writing executed by the City Manager and City Attorney. 4. PREVAILING WAGES Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and 'Maintenance" projects. If the services being performed are part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 5. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreementis not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement ("Documents & Data"). Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Page 2 of 8 251-122 Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were provided to Contractor by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not.less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the California Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Contractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Contractor pursuant to this section: (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be famished to the City upon execution of this Agreement and shall be approved by the City. Pa e3of8 25�-123 (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect, by contractor, without thirty (30) days prior written notice to the City. (iv) Contractor shall supply City with a fully executed additional insured endorsement. f. If Contractor falls or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials expended prior to notification of termination. Contractor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEMNIFICATION Contractor agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) forpersonal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor or its 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 Contractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8, the above indemnity shall be 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 Contractor. 9. INTELLECTUAL PROPERTY INDEMNIFICATION Contractor shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work product or documents provided by Contractor to the City pursuant to this Agreement. Page 4 of 8 251-124 10. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 11. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Contractor agrees 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 importance, but in no event less than reasonable care. "Confidential Information" shall 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 parry 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 Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City. 12. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) Page 5 of 8 251-125 P.O, Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, CA 92702 To Contractor: T.E. Roberts, Inc. 306 W. Katella Ave., Unit B Orange, CA 92867 Attn: Timothy Roberts, President 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 timeframes, weekends, federal, state, County or City holidays shall be excluded. 14. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor regarding 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 Contractor. 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 Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other contractors retained by City. Page 6 of 8 251-126 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. TERMINATION This Agreement maybe terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to 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 Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. NON-DISCRIMINATION Contractor shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19. 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 fiuther 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. 20. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain allnecessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder Pa e7of8 25�-127 and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 21. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn: 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: DAISY GOMEZ CLERK OF THE COUNCIL APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: n M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency CITY OF SANTA ANA Kristine Ridge City Manager CONTRACTOR Name: Timothy Roberts Title: President Page 8 of 8 251-128 ��dJ� EXHIBIT A TEE v Roberts INCORPORATED auuu Lununc wnrma, June 12, 2019 City of Santa Ana Public Works Agency 215 S. Center Street, Building A Santa Ana, CA 92703 To Whom It May Concern: Please accept our proposal for your On -Call Emergency Water and Sewer System Repair Services, RFP No. 19-032, bidding today. T. E. Roberts, Inc. is an experienced underground pipeline contractor established in 1999. We specialize.in water, sewer and storm drain construction. We are a California Corporation with CSLB class A and C34 license N 603008, DIR registration N 1000000280, and is qualified to do business in the state of California. We are currently an On -Call Contractor with the City of Santa Ana, Contract N 14-044 in the amount of $800,000.00. We have a current business license with the City of Santa Ana, tt 348343. Thank you for the opportunity to bid on your project; we hope to continue serving your community. Sincerely, Timothy Roberts President 306 IYetl 4elelle Am., Unll 6 0,4,9,. (A 97061 1 714.669. 0070 1 714.700.02AI Llne ,. #600009 .we.lero6e.lf.t0m 251-129 H We are familiar with the scope of work, City requirements, and terms and conditions of the Agreement. We are accustomed to and compliant with Public Works requirements including prevailing wage rates, use of Apprentices and other DIR stipulations. We are in agreement with the recitals of the Standard Agreement (Attachment 4 of the project specifications) in its entirety. C. TEAM EXPERIENCE Timothy Roberts, President Oversees operations and management Tim worked his way up from Equipment Operator to Foreman to Superintendent with another pipeline contractor before forming his own pipeline construction company in 1999. Tim has over 35 years' experience in pipeline construction. He is hands-on and oversees all projects and operations. Justin Roberts, Project Manager Oversees field construction. Justin has over 15 years' experience in local pipeline construction and has performed duties of la:rorer, equipment operator and teamster. His well-rounded experience helps him supervise projects with maximum productivity. Superintendent -Dave Klein Supervises construction, quality control and safety. Dave has over 30 years' experience in the pipeline construction industry and is proficient in all aspects of pipe installation and repair. Superintendent -Javier Magana Supervises construction, quality control and safety. Javier has over 12 years' experience in the pipeline construction industry and is proficient in all aspects of pipe installation and repair. Gilbert Hartwell, Project Manager Gilbert has over 12 years' experience in local pipeline construction and started his pipeline construction career as a field laborer. Gilbert transferred his field knowledge and organizational skills to project management where he excels at supervising multiple on- going projects with efficiency. Superintendent -Dave Pope Supervises construction, quality control and safety. Dave has over 31 years' experience in pipeline construction and worked his way up to Foreman. He excels in managing large construction projects. Superintendent- Francisco Romero Supervises construction, quality control and safety. Francisco has over 20 years' experience in the pipeline construction industry and is proficient in all aspects of pipe installation and reoair. Troy Lane, Project Manager Troy has over 22 years' experience in local pipeline construction. Troy worked in underground construction as a pipe layer, heavy equipment operator, field engineer, and field supervisor. He has been a project manager for the past nine years. Superintendent -Bob Hartwell Supervises construction, quality control and safely. Bob has over 38 years' experience in pipeline construction, he owned his own pipeline construction company and has worked as a Field Inspector. Superintendent -Tom Zimprich Supervises construction, quality control and safety. Tom has over 37 years' experience in the pipeline construction industry and is proficient in all aspects of pipe installation and repair. Skilled Field Crew includes: Foremen, Equipment Operators, Teamsters, Laborers, Pipe Layers, Welders Office Administration Office Maria Per -Kim Newett Administrative Assistants: Mere Hush, Erica Friel, Diane Hartwell, Maria Sanchez, Erin Silber, Katie Todd Yard Staff Yard Superintendent -Jim Rader Mechanics: Brandon Morales, Joel Macias, Paul Johnston, Jason Clements 251-130 NJ T.E. Roberts, Inc. has been providing underground utility installation and repair services restoring water and sewer facilities throughout Southern California for twenty years. As an experienced wet utility On -Call Contractor servicing municipalities, and public and private agencies we have completed numerous small and large leak repairs on all types and sizes of pipe, small and large sewer repairs, storm drain repairs, storm debris removal, and other emergency repair services. We are qualified to construct and make repairs on all types of water lines including 4- 30" CML/C water mains, valves, pressure reducing valves, fire hydrants, provide dewatering services, provide traffic control per WATCH manual, disinfect, flush, and restore project sites. We are equally qualified to construct and make sewer repairs on 6-30" VCP and PVC sewer mains, manholes, cleanouts, laterals, provide dewatering services, bypass pumping, provide traffic control per WATCH manual and restore project sites. T. E. Roberts, Inc. is also able to construct and repair water and sewer pump stations and the related appurtenances. T.E. Roberts, Inc. has 90 employees with 70 skilled crew members in the field ready to serve your needs. Owning most of our own equipment we're ready to mobilize with excavators ranging from 5,000 to over 100,000 pounds, backhoes-mainly John Deere 710, loaders, dump trucks, crew trucks, trash pumps ranging in size from 1 1/2 to 6 inches, and shoring, safety shields and other job related tools. Permits will be secured as needed. A 24 hour Emergency Contact List with home and cell phone numbers of key personnel will be provided to the City upon award of contract. Upon notification T.E. Roberts, Inc. will immediately respond within one hour to assess the scope of work. Upon approval from the City to commence a crew will mobilize within four to eight hours with appropriate personnel, equipment and materials to begin repair work The repair work may encompass excavation, pavement cuts, minor grading, disposal and hauling of spoils and excess materials, backfill and compaction, asphalt repairwork and welding repairwork. We perform most services with our own forces, however we may subcontract saw cutting, some concrete work, and electrical work at the allowable markup. Safety is a priority at T. E. Roberts, Inc. and we comply with all applicable safety standards required by CAL -OSHA, comply with applicable Local, State and Federal regulations including SCAQMD. Our work sites will be free of hazards and will provide maximum safety to the public, city personnel and our crew. We have written Safety Policies and Procedures In place, W.A.T.C.H. Handbooks on all jobsites, maintain at least two Certified Competent Persons on every crew, and all employees are subject to random drug testing. 251-131 E. ON CALL PROJECTS City of Ontario, 1425 S. Bon View Avenue, Ontario, CA 91761 City of Newport Beach, 100 Civic Center Dr., Newport Beach, CA 92660 Don Meyer, 909 395-2677 Mike Sinacori, 949 644-3342 On Call Services since 2011, $1,200,000.00 per year On Call Services since 2015 1. Replacing old brick Manholes throughout the city, ongoing as needed 1. Vault Lid Repair, PCH and Dahlia, $7,910.00, 2-28.18 2. Water Meter Replacements throughout city, ongoing, average of 300 2. Meter Vault, Cliff Drive, $11,598.00, 9-15-17 per month 3. Repaired 30" Line In Oil Fields, $60,928.00, 3-11-16 3. Long Side Services, 6th Street, $62,442.00, 10.27-17 4. Davit Sleeve Pad, City Yard, $6,972.00, 31-21-15 4. Flood Repairs, 6th Street, $6,478.00, 11-30-16 S. V Ditch Repair, $16,512.00, 9.15-15 S. Sewer Repair, Milliken, $17,183.00, 8-12-16 Bayside Village, 300 E. Pacific Coast Highway, Newport Beach, CA 92660 Moulton Niguel Water District, 26161 Gordon Rd, Laguna Niguel, CA Brian Stith, 949673-1331 92677 1. Repaired 6" water main at PCH and Bayside. Received call at 6 pm, leak Matt Crowl, 949 831-2500 repaired and water flowing back by 11 pm, $4,117.00, 3-3-18 1. Repaired leaking water main, El Toro Rd, $65,973.00, 2-28-18 2. Removed V Ditch, Installed flush outs, restored landscaping and street, Hlllhurst, $43,025.00, 9.30.17 3. Diemer Pipeline Emergency Repair In SCRRA right of way, $142,000.00, 7.7-16 RECENTLY COMPLETED PROJECTS City of Newport Beach, 100 Civic Center Drive, Newport Beach, CA City of Anaheim, 200 South Anaheim Blvd., Anaheim, CA 92805 92660 Luis Tapia, 714 863-8020 Alfred Castanon 949 644-3314 Alderdale Avenue and Maychelle Drive Transmission Main Replacement Balboa Island Water Main Replacement Phase 1 Project 4,000' 4-12" PVC pipeline and appurtenances with restoration 1,570' 8" PVC pipeline and appurtenances with restoration $1,563,400.00 Project Awarded 12-1-17 Completed 4-18-18, 89%Own $469,744.00 Project Awarded 1.14-17 Completed 4-5-27 forces South Coast Water District, 31592 West Street., Laguna Beach, CA City of Anaheim, 200 South Anaheim Blvd., Anaheim, CA 92805 92651 Tim Flint, 714 765-4137 Joe Sinacorl, 949 499-4555 ext. 3178 Solomon Drive and Baja Drive Water Main Replacement Project PCH Recycled Water Distribution Bottleneck Upsizing Project 9,000' 12" DIP pipeline and appurtenances with restoration Installed 6,350' 16" PVC pipeline and appurtenances with restoration $,917,035.00 Project Awarded 5-9-17 Completed 4-10-18 90% Own $3,201,375.00 Project Awarded 7-26-16, Completed 5-27-17,84%Own forces forces City of Ontario, 1425 S. Bon View Avenue, Ontario, CA 91761 Upper San Gabriel Valley Municipal Water District In conjunction with Katie Gienger 909 395-2694 San Gabriel Valley Water Company, 11142 Garvey Ave., Ef Monte, CA Water Main Improvement, Phase 2 Project 91732 7,150' B-12" DIP pipeline and appurtenances with restoration Matt Yucelen 626448-6183 $2,338,077.00 Project Awarded 6-7-16, Completed 3-20-17 83% Own South El Monte Recycled Waterline Project, Phase I Project forces 13,000' 8-18" GWBR pipeline and appurtenances with restoration $1,770,047.00 (material provided) Project Awarded 9-15-15, Completed 1-20-17. 92% Own forces City of Newport Beach, 200 Civic Center Drive, Newport Beach, CA City of Ontario, 1425 S. Bon View Avenue, Ontario, CA 91761 92660 Omar Dandashl with NMC Builders LLC, 909 268-9918 Patrick Arcinlega 949 644-3347 Francis Domestic Water Loop and Recycled Water Project Corona del Mar Transmission Pipeline Improvement Project Wet utilities for New Model Colony Housing Development, 30,000' 24- 5,220' 30" CML/C, 2,600' 24" CML/C, 60' 18" CML/C, 490'16" CML/C 30" DIP water distribution system pipeline and appurtenances, bored under PCH, Included restoration $10,702,107.00 Project Awarded 10.13-13, Completed 9-30-14, 85°% $4,402,750 Project Awarded 1-23-13 Com leted 6-13-14, 88% Own forces Own forces 251-132 F. REFERENCES Matt Yucelen Phone (626) 448-6183 Vice President - Engineering and Operations San Gabriel Valley Water Company Michael Guerrero Principal Civil Engineer City of Manhattan Beach Phone: (310) 802-5355 Thomas O'Neill Phone: (909) 399-2601 Utilities Operations Division Manager TONeill@ontarioca.gov City of Ontario, Ontario Municipal Utilities Company Shane Chapman Phone: (626) 443-2297 General Manager Upper San Gabriel Valley Municipal Water District Michael Sinacorl Assistant City Engineer City of Newport Beach Michael Baron Director, Property Management Rose Hills Memorial Park & Mortuary Phone: (949) 644-3342 MSinacori ftewpo rtbeachca.gov Phone: (562) 205.4835 Jason Roehrborn Phone: (626) 914-8253 Civil Engineering Assistant City of Glendora Van Jew Phone: (909) 624.0035 Manager of Engineering, Operations and Maintenance Monte Vista Water District Steve Brown Water Distribution Superintendent Golden State Water Company Tom Sonkowkl Engineer Irvine Ranch Water District Bill Moorhead Project Manager City of Anaheim Sherry Shaw Engineering Manager Walnut Valley Water District Rick Shintaku Chief Engineer South Coast Water District Phone: (714) 528.1463 extension 101 Phone: (949) 453.5692 Phone: 714 765-4165 BMoorhead@anahelm.net Phone: (909) $95-1268 Phone: (949) 499-4555 extension 3156 251-133 Appendix ATTACHMENT 2: FEE SCHEDULE Certification - I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Appendix: Attachment 1) and am familiar with the scope of work. I am familiar with all the existing conditions and limitation that may impact work requests. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the City for clarification prior to the submission of my proposal. Proposer shall submit hourly rates schedule, which shall Include but not limited to, direct and Indirect costs for labor, for staff per job classification, material, equipment rates, overhead, incidental supplies, travel, mileage, and fuel. Any special materials will be purchased by the contractor only after discussed and authorized by the City projects manager or designee In writing. Prior to commencement of services, Contractor shall provide separate quotes, upon request by the City, which shall be approved by the City's Public Works Agency. Note: This contract is subject to prevailing wages. r, Mnn 7 m000no? z o CSLB NUMBER OIR REGISTRATION NUMBER City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 15 of 31 251-134 Appendix ATTACHMENT 3: REFERENCES List and describe fully the contracts performed by your firm which demonstrate your ability to provide the supplies, equipment or services included in the scope of the proposal specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference Customer Name: Clhi r4 3an+n Ana Contact Individual: _�I UV P05n ¢ Address: CiLtir_ (:AriLe_r PI a? n Phone Number: 114 lo47- 33-7 A .CnM-n Ane (A 911DI Facsimile Number: rrVsa5Fj^an{-n-Ana e> Contract Amount: W Ron 000 Year: _ 4.01-1- 12req{ri4- Description of supplies, equipment, or services provided: Errx__�'nri� Snnrrr and 161af-Pr R r tr Servlres On GO , Reference Customer Name:CjJ2j of Newport- BeaftPontactIndividual: Mike, Slnn�nrt Address:lDtl GVIr Later Drive- Phone Number: qNq 1sN4-33U9- PWj2Dr /'A IU40FacsimileNumber: mSinaGori(.9n�oorfhPac/)GA.�oV Contract Amount: dSDD.0D0 Year: jol$- proafv f Description of supplies, equipment, or services provided: _UnriPrnround UhILL/ Ir13,+/IIn-hnn and apair- DrI Call Reference Customer Name: Clky 0f N+tArir, Contact Individual: Don Me.lrr Address:lggS S. ftil ViPai AVe.nVe-Phone Number: WD`j 3g5-2L71 OniArtor (_A ghbl —Facsimile Nurnber:_r1m_.��nn+ei Contract Amount: 10 la,7,OQ 06o/�r� n-e- Year: 2G 11 - pr P a r ✓t +- Description of supplies, equipment, or services provided: LI-LA Strvtc.Ps -%nr Wa+er Dv!1-Hbu±ion and 5ruie3E. Lollrc}ian S1s1-rm keoIns THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 16 of 31 251-135 NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106 the BIDDER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the BIDDER or any other BIDDER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note: The above Non -collusion Affidavit is part of the Proposal. BIDDERS are cautioned that making a false certification may subject the certifier to Signed State of Cali rnia County of r Subscribed and sworn to (or affirmed) before me on this 1?,L day of JJ 1 nP , 204, by proved tome on the basis of satisfactory evidence to be the person(s) who appeared before me Notary Public Signature Notary Public Seal 'Sct a -+a 6h-r-d City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 27 of 31 251-136 CALIFORNIA JURAT WITH AFFIA,9T STATEMENT GOVERNMENT CODE § 8202 aamsexsr.crccstscrs� ,�N - - - See Attached Document (Notary to Gross out lines 1-6 below) . ee Statement Below (Lines 1-6 to -be completed only by document signer[s), not Notary) t .s ;1 7 f ' Signature of Document Signer No. 1 Signature of Document No. 2 (f any) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California Subscribed and sworn to (or affirmed) before me County of . Ors,()Q� J on this lalfi day of .)06to_ 20� by Date Month Year r (and (2) ) Name(s) of Signers) Proved to me on the basis of satisfactory evidence HIM E. NEWETT to be the person(s) who appeared before me. o ��- COMh1.02228431 z o: u•a Notary Publit • Calilornia z _ Orange County ° M Comm. Ex Tres Feb. 7, 2n22 Signature ,�.(l�i �,. Signature of Notary Public Seal Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: _ Signer(s) Other Than Named Above: 02014 National Notary Association - www.NationalNotary.org - 1-800-US NOTARY (1-800-876.6827) Item k5910 251-137 CITY OF SANTA ANA RFP NO,: 19.032 ON -CALL EMERGENCY WATER AND SEWER REPAIR SERVICES NON -LOBBYING CERTIFICATION The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in conformance with its instructions. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification Is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not.more than $100,000 for each such failure. The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language of this certification be included In all lower tier subcontracts, which exceed $100,0 0 nd that all such subrecipients shall certify and disclose acco t ly. Signed: 1- Timor %y 2obL_ r, Title: Dr,^, S Ira P.nf Firm: T. F. IZ nlnG,+e l,n! Date: I -13-1 9 City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sower Repair Services Page 1 of 31 ri'% 251-138 CITY OF SANTA ANA RFP NO: 19.032 ON -CALL EMERGENCY WATER AND SEWER REPAIR SERVICES NON-DISCRIMINATION CERTIFICATION The undersigned Contractor or corporate officer, during the performance of this contract, certifies as follows: 1. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. The Contractor shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be Imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 29 of 31 251-139 CITY OF SANTA ANA \ RFP NO.: 19-032 ON -CALL EMERGENCY WATER AND SEWER REPAIR SERVICES 7. The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subContractor or Contractor as a result of such direction by the administering agency, the Contractor may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any Contractor of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. Signed: y 2a yGrt� Title: _Pre i(Irr,+ Firm: T. E . R.ohe r is Ind Date: q City of Santa Ana - RFP 19.032 On -Call Emergency Water and Sower Repair Services Page 30 of 31 251-140 CITY OF SANTA ANA RFP NO.: 19-032 ON -CALL EMERGENCY WATER AND SEWER REPAIR SERVICES ---End of RFP NO 19-032--- City of Santa Ana - RFP 19-032 On -Call Emergency Water and Sewer Repair Services Page 31 of 31 251-141 MAYOR Migual A. Pulido MAYOR PRO TEM Juan Villegas COUNCILMEMSERS Cecilia Iglesias DavM Penal= Vicente Sannlento Jose Sdodo June 6,2019 CITY MANAGER Kristine Ridge CITY ATTORNEY ACTING CLERK OSonia THE COUNCIL Norma Mitre -Ramirez CITY OF SANTA ANA PUBLIC WORKS AGENCY 220 S. Daisy Avenue Santa Ana, CA 92703 www.santa-ana.org 714-647-3320 ADDENDUM NO.1: Q & A for Proposal No. 19-032 On -Call EmergencyRequest Sewer and Water Sytem Repair Services Notice is hereby given to bidders that, where applicable, the City of Santa Ana Water Resources Division has made certain clarifications, modifications, and/or deletions, for specifications of RFP 19-032 On -Call Emergency Sewer and Water System Repair Services. ALL OTHER TERMS, CONDITIONS, AND SPECIFICATIONS REMAIN UNCHANGED. Answers to Inquiries/Questions submitted by the deadline are as follows: Q: Does this On -Call require a Community Work Force Agreement like the other bids the city of Santa Ana puts out? A. This is an RFP for on call emergency repair services. Per the RFP, individual job/task quotes will be requested .as the need for service arises. The Community Workforce Agreement terms apply to any project valued at over $250,000 and any single trade Project valued at over $100,000, If a condition arises when we request a Job/task through this emergency on -call agreement which is quoted at those price points, then the conditions of the Citys Community Workforce Agreement would apply for those jobs/tasks. 2. Q: What is the value of the on -call agreement? A: Agreement amount has yet to be determined. Thank you for your participation and your interest in doing business with the City of Santa Ana. Sincerely, Rodolfo Rosas, P.E. Senior Civil Engineer CC: Reading File SANTA ANA CITY COUNCIL Y �A AmOo J,ui p Id eY12RJa}°.Ietla-an. I.Yp Ro TYn YC a W '�]]EEeM�1¢spy Vta,+a su-Yw, D.wv ANVti WYl1 W"7 Ano eYO•-0 Vrru s]Ymem�@11MLVAM nc.n.�lv[�¢ wYa] CxA�l _' ww� n� arrom.YA- wYve -251-142�°`�°°' EXHIBIT B Roberts INCORPORATED wnw uunuwa u.uw.. HOURLY RATE SCHEDULES T.E. Roberts, Inc. City of Santa Ana On -Call Emergency Water and Sewer Repair Services President -Timothy Roberts Project Managers -Justin Roberts, Gilbert Hartwell, Troy Lane Superintendents- Dave Pope, Dave Klein, Bob Hartwell, Francisco Romero, Javier Magana, Tom Zimprich Hourly Straight Tima LABOR Project Manager Superintendent -Op Eng Gr 8 Foreman -Operating Engineer Gr 8 Foreman -Laborer Group 5 Operator- Operating Engineer Gr 8 Laborer- Laborer Group 1 Pipe layer- Laborer Group 4 Welder- Laborer Group 5 Teamster- Teamster Group 3 6/12/2019 Rates EQUIPMENT $135.25 Large Excavator $132.00 Medium Excavator $127.12 Small Excavator $108.92 Back Hoe $122.25 Air Compressor w/JH $100.80 Dump Truck/Super 10 $105.11 Pickup Truck or Van $105.67 Crew Truck $97.35 Flatbed Truck Materials Bonds -if required SUBCONTRACTORS Structures Unlimited -concrete structures Penhall-sawcutting, concrete breaking Beard Electric -electrical Bed Trailer cost plus 15% Truck and Pup 1.5%of total Water Truck Cost plus to%for Sweeper first $s,000,then Wheel Loader 5%of amount over Skip Loader $5,000 Skid Steer/Bobcat Asphalt Zipper Arrowboard Hourly Rates $121.00 $110.00 $99.00 $46.20 $22.00 $49.50 $27.50 $33.00 $27.50 $49.50 $82.50 $38.50 $79.20 $60.50 $44.00 $44.00 $88.00 $16.50 251-143 251-144 REQUEST FOR COUNCIL ACTION [Ilk r1016111 k 4:4 111 I'Ll"B7a� i :9 AUGUST 20, 2019 TITLE: APPROVE MEMORANDUM OF UNDERSTANDING WITH COMMUNITY ACTION PARNTERSHIP OF ORANGE COUNTY, RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT, AND THE SOUTHERN CALIFORNIA INDIAN CENTER AS PARTNERS UNDER THE WORKFORCE INNOVATION AND OPPORTUNITY ACT (STRATEGIC PLAN NO 2,4) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY M NAGER RECOMMENDED ACTION Authorize the Mayor, City Manager and Clerk of the Council to execute a Memorandum of Understanding with the Santa Ana Workforce Development Board and Community Action Partnership of Orange County, Rancho Santiago Community College District, and the Southern Calfornia Indian Center as part of America's Job Center of California to establish a cooperative working relationship between the parties and to define respective roles and responsibilities, subject to non -substantive changes approved by the City Manager and City Attorney. WORKFORCE DEVELOPMENT BOARD RECOMMENDATION At its regularly scheduled meeting of May 16, 2019 by a vote of 13:0 (Absent: Alegre, Baetz, Korthuis, Smith), the Workforce Development Board recommended that the City Council approve the action. DISCUSSION In order to establish a high quality America's Job Center's of California (AJCC's) delivery system and enhance collaboration among partner programs, Workforce Innovation Opportunity Act (WIOA) requires Local Boards to develop Memorandum of Understanding's (MOU's) with all AJCC required partners within their Local Workforce Development Area (Local Area). These MOUs will serve as a functional tool as well as visionary plan for how the Local Board and AJCC partners will work together to create a unified service delivery system that best meets the needs of their shared customers. 25J-1 MOU with Community Action Partnership of OC, Rancho Santiago Community College District, and Southern Calfornia Indian Center as Partners Under the WIOA August 20, 2019 Page 2 The mandated programs and services which are available in the region thereby requiring the City and Workforce Development Board to have MOU's with are as follows: Program Organization MOU Status WIOA Title I — Adult, Dislocated Worker City of Santa Ana WORK Completed and Youth Center WIOA Title 11— Adult Education and Rancho Santiago Community pending Approval Literacy College WIOA Wagner-Peyser, Veterans, Trade California Employment Completed Adjustment Assistance Act Development Department WIOA Title IV Vocational Rehabilitation California Department of Rehabilitation Completed Carl Perkins Career Technical Education Rancho Santiago Community College pending Approval Title V Older Americans Act SER — Jobs for Progress Completed Job Corps Long Beach Job Corps Partner discussions ongoing Native American Programs — Section Southern California Indian Pending Approval 166 Center Community Services Block Grant Community Action Partnership of OC Pending Approval Housing and Urban Development City of Santa Ana Housing Completed Authority Unemployment Compensation (UI) California Employment Completed Development Department Temporary Assistance for Needy Orange County Social Completed Families/ CalWORKS Services Agency Staff have meet with the Community Action Partnership of Orange County, Rancho Santiago Community College District and the Southern California Indian Center to review the previous MOU, and update the document where necessary. Approval of the MOU's (Exhibit 1) will be in compliance with Directive WSD18-12 released April 30, 2019 by the State Employment Development Department. 25J-2 MOU with Community Action Partnership of OC, Rancho Santiago Community College District, and Southern Calfornia Indian Center as Partners Under the WIOA August 20, 2019 Page 3 STRATEGIC PLAN ALIGNMENT Approval assists the City in meeting Goal #2 Youth, Education, Recreation, Objective #4 (Partner with groups and organization to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Executive Director Community Development Agency Exhibits: 1. Memorandum -of Understanding with: A. Community Action Partnership of OC B. Rancho Santiago Community College District C. Southern California Indian Center 25J-3 25J-4 EXHIBIT 1A Memorandum of Understanding For Santa Ana Workforce Development Board and the Community Action Partnership of Orange County 25J-5 EXHIBIT 1A MEMORANDUM OF UNDERSTANDING 1) LEGAL AUTHORITY The Workforce Innovation and Opportunity Act ("WIOA") sec. 121(c)(1) requires that each Local Workforce Development Area develop and enter into a Memorandum of Understanding ( "MOU'� with each America's Job Center of California ("AJCC") Partner, consistent with WIOA See, 121(c)(2). This requirement is further described in the WIOA; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the AJCC System Joint Provisions: Final Rule at 20 CFR 678.506, 34 CFR 361.500, and 34 CFR 463.500, and in Federal guidance. 2) PARTIES The parties to this MOU are the City Council of the City of Santa Ana, the Santa Ana Workforce Development Board ("SAWDB"), and the Community Action Partnership of Orange County, a non -collocated one -stop AJCC Partner. 3) PURPOSE The purpose of the MOU is consistent with the provisions of WIOA sec. 121(c)(1), to establish a cooperative working relationship between the SAWDB and Community Action Partnersh{o of Orange County, the non -collocated AJCC Partner, and to define their respective roles and responsibilities concerning the operation of the AJCC as it relates to shared services and customers. It serves to establish the framework for providing services to employers, employees, job seekers and others needing workforce services. It also serves to establish a framework to support the established service delivery through the sharing of resources and costs. It is expressly understood that this MOU does not constitute a binding financial commitment, but rather an intent to commit specific resources in the future as the parties' allocations and budgets are known and the America's Job Center of California system evolves., 4) DURATION This MOU shall become effective as of the date of full execution of the MOU by all Parties ("Effective Date") and terminate June 30, 2022. This MOU will be reviewed not less than once every three years to ensure appropriate funding and delivery of services and to identify any substantial changes that require modification of this MOU. This MOU will remain in effect until the termination date, unless one of the conditions in section 32 occurs. 5) MODIFICATIONS AND REVISIONS This MOU and its Attachments 1, 2, 3, and 4, constitute the entire agreement between the parties, and no oral understanding not incorporated herein shall be binding on any of the parties hereto. This MOU may be modified, altered, or revised, as necessary, by mutual consent of the parties, by the issuance of a written amendment, signed and dated by the parties, which may require approval by the governing body of each Party. Assignment of responsibilities under this MOU by any of 25J-6 EXHIBIT 1A the parties shall require prior written notice and preapproval of all parties. Any assignee shall also commit in writing to the terms of this MOU. 6) SANTA ANA WORKFORCE DEVELOPMENT STRATEGIES Santa Ana's vision rests on integrating current and future resources through its SAWDB Partners. Integration. suggests more than partnering or assembling multiple funding sources. It means making certain that all elements of the workforce support system work together.to create inviting and seamless services wherever a client enters the system. Santa Ana's vision is sensitive to the needs of its unique demographics. The SAWDB's overall strategies include: a) Identifying regional industry clusters (e.g., manufacturing cluster, medical cluster, etc.) to create new jobs in which Santa Ana's'workforce can participate; b) Expanding small business development support as a creator of new jobs and method for growing the local tax base; c) Educating Santa Ana's current and future workforce through classroom pre -training and training activities, plus on-the-job training and workforce skill enhancement activities; d) Offering career pathway programs for both unemployed and employed adults and youth; e) Increasing access to jobs for disconnected and underserved populations, especially youth; f) Organizing, integrating and supporting social and other services through the SAWDB's network of partnerships, volunteer organizations, and established institutional resources; and, g) Assuring funding from all public, private, and other sources in support of its programs. 7) ONE -STOP SYSTEM & SERVICES A. LOCATION The AJCC is currently located in Santa Ana as follows: American Job Center (Comprehensive AJCC) Santa Ana WORK CENTER 801 W: Civic Center Drive, Suite 200 Santa Ana, CA 92701 (714)565-2600 Open to the Public: Monday— Friday 8:00 am-5:00 pm The AJCC is currently located at the Santa Ana WORK Center ("SAWC") as described in the Location of AJCC and all Partners, attached herein as Attachment 1 and incorporated herein by reference. Santa Ana ranks as the fourth densest city in the entire nation. SAWC, through its central location in downtown Santa Ana, shall provide and/or coordinate WIOA services to individuals, providing them with the necessary skills to participate in building a world -class workforce in Santa Ana. The SAWC offers the community a variety of informational, employment and training services based on individual needs. Those needs are met.bythe combined efforts of the SAWC Partners as described by the Santa Ana AJCC Partner Services, included herein as Attachment 2 and incorporated herein by reference. 25J-7 EXHIBIT 1A B. SERVICES PROVIDED AT THE SANTA ANA WORK CENTER Services and referrals provided at the SAWC by AJCC Partners may include, but are not limited to, the following: 1. Basic Career Services: a. Eligibility determination; b. Outreach, intake, and orientation to information and services; c. Initial assessment of skill levels, including: literacy, numeracy, and English proficiency; and, aptitudes, abilities, and support service needs; d. Labor exchange services, including: i. Job vacancy listings in labor market areas; ii. Information on job skills needed to obtain the vacant jobs; and, iii. Information relating to in -demand occupations, including earnings and opportunities for advancement; e. Provision of performance and program cost information on the Eligible Training Provider List ("ETPL') eligible programs by program and type ofprovider f. Provision of information in acceptable formats and languages that identify actual performance against performance accountability measures g. Provision of information related to support services h. Provision of information and assistance in filing Unemployment Insurance claims; and, i. Assistance in establishing eligibility for programs of financial aid assistance for training and education programs not funded through WIOA. 2. Individualized Career Services: a. Comprehensive and specialized assessment of skill levels and service needs including: Diagnostic testing; and, other assessment tools; b. In-depth interview and evaluation to determine barriers and goals; c. Development of Individual Employment Plan (IEP) to identify goals, objectives, and services; d. Group counseling; e. Individual counseling; £ Careerplanning; g. Short-term pre -vocational services,. including: development of learning skills; communication skills; and, other soft skills to prepare individuals for employment or training; h. Workforce preparation activities, including: basic academic; and, obtaining other skills necessary for successful transition into postsecondary education, training or employment; i. Financial literacy services; and, j. Out -of -area job search assistance and relocation assistance. 3. Training Services: a. Occupational skills training; b. On -the -Job training; c. Incumbent worker training; 4 25J-8 EXHIBIT .1A d. Programs that combine workplace training with related instruction, which may include cooperative education programs; e. Training programs operated by the private sector; £ Skill upgrading and retraining; g. Entrepreneurial training programs; h. Transitional jobs; i. Job readiness training provided in combination with any of the aforementioned training Services; j. Adult education and literacy activities, including: activities of English language acquisition; and, integrated education and training programs provided concurrently or in combination with any of the aforementioned training services; k. Customized training; 1. Internships and work experiences that are linked to careers; and, m. English language acquisition and integrated education and training program. 4. Employer Services: a. Recruitment and other business services on behalf of employers. C. SYSTEM STRUCTURE 1. AJCC ONE -STOP OPERATOR PROCUREMENT The SAWDB will procure the AJCC Operator through a competitive process in accordance with the Uniform Guidance Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200 (Uniform Guidance), including the Office of Management and Budget's (OMB) approved exceptions for the U.S. Department of Labor at 2 CFR part 2900, WIOA and its implementing regulations, and local procurement laws and regulations. All documentation for the competitive AJCC operator procurement will be available for public inspection. The State requires that the AJCC operator is re -competed at least every three years and no later than every four years. 2. ROLES AND RESPONSIBILITIES OF PARTIES a. Provision ofApplicable Career Services and Participation in Planning and Development. The parties to this MOU will work closely together .to ensure that the AJCC is a high - performing work place with staff that ensure quality of service. The AJCC Partner has indicated they shall provide an array of applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The AJCC Partner agrees to the responsibilities required of all Partners under WIOA Section 121(b). In addition, the AJCC Partners will participate in joint planning, plan development, and modification of activities to accomplish the following: i. Continuous partnership building; ' ii. Continuous planning in response to state and federal requirements; and, iii. Responsiveness to local and economic conditions, including employer needs. 25J-9 EXHIBIT 1A Parties agree to the co -enrollment of mutual customers in case management to better leverage the resources available for the benefit of the participant and enhance successful outcomes and participate in the operation of the one -stop system consistent with the terms of the MOU and requirements of authorized laws, Both parties agree to inform each other immediately when a customer violates an established policy that would require them to. be banned from the center or behavior that requires police intervention. Parties agree to collaborate and reasonably assist each other in the development of necessary service delivery protocols for the services outlined in this MOU. Parties agree that the provisions contained herein are made subject to all applicable federal and state laws, implementing regulations, and guidelines imposed on either or all the parties relating to privacy rights of customers, maintenance of records, and other confidential information relating to customers. Parties agree that all equipment and furniture purchased by any party for purposes described herein shall remain the property of the purchaser after the termination of this MOU. b. Parties shall comply with: i. Section 188 of the WIOA Nondiscrimination and Equal Opportunity Regulations (29 CFR Part 38; Final Rule, published December 2, 2016); ii. Title VI and VII of the Civil Rights Act of 1964 (Public Law 88-352), as amended; iii. Section 504 of the Rehabilitation Act of 1973, as amended; iv. The Americans with Disabilities Act of 1990, as amended; v. The Jobs for Veterans Act (Public Law 107-288) pertaining to priority of service in programs funded by the U.S, Department of Labor; vi. Training and Employment Guidance Letter (TEGL) 37-14, Update on Complying with Nondiscrimination Requirements: Discrimination Based on Gender Identity, Gender Expression and Sex Stereotyping are Prohibited Forms of Sex Discrimination in the Workforce Development System and other guidance related to implementing WIOA sec. 188; vii. The Non-traditional Employment for Women Act of 1991; viii. The Age Discrimination Act of 1967, as amended; ix. The Age Discrimination Act of 1975, as amended; x. Title D{ of the Education Amendments of 1972, as amended; xi. The Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. § 1232g; 34 CFR part 99); 25J-10 EXHIBIT 1A xii. Title 1X of the Education Amendments of 1972, as amended; xiii. Confidentiality requirements governing the protection and use of personal information held by the VR agency (34 CFR 361.38); xiv. The confidentiality requirements governing the use of confidential information held by the State UI agency (20 CFR part 603); and, xv. All amendments to each, and all requirements imposed by the regulations issued pursuant to these acts. The Parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or activity that requires policy intervention. 8) AJCC PARTNER RESPONSIBILITIES Partner commits staff, as appropriate, and to providing other professional learning opportunities that promote continuous quality improvement. Partner will further promote system integration to the maximum extent feasible through: a. Effective communication, information sharing, and collaboration with the AJCC operator; b. Joint planning, policy development, and system design processes; c. Commitment to the joint mission, vision, goals, strategies, and performance. measures; d. The design and use of common intake, assessment, referral, and case management processes; e. The use of common and/or linked data management systems and data sharing methods, as appropriate; f. Leveraging of resources, including other public agency and non-profit organization services; g. Participation in a continuous improvement process designed to boost outcomes and increase customer satisfaction; and h. Participation in regularly scheduled Partner meetings to exchange information in support of the above and encourage program and staff integration. Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. 7 25J-11 EXHIBIT 1A 9) REFERRALS The primary principle of the referral system is to provide integrated and seamless delivery of services to workers, job seekers, and employers. In order to facilitate such a system, Partners will ensure and agree to: a. Familiarize themselves with the basic eligibility and participation requirements, as well as with the available services and benefits offered, for each of the Partners' programs represented in the AJCC network; b. Develop materials summarizing their program requirements and making them available for Partners and customers; c. Develop and utilize common intake, eligibility determination, assessment, and registration forms, as appropriate; d. Provide substantive referrals to customers who are eligible for supplemental and complementary services and benefits under Partner programs; e. Regularly evaluate ways to improve the referral process, including the use of customer satisfaction surveys; f. Commit to robust and ongoing communication required for an effective referral process; g. Commit to actively follow up on the results of referrals and assuring that Partner resources are being leveraged at an optimal level; h. Ensure that intake and referral processes are customer -centered with the intent to provide high quality customer service; Ensure that general information regarding AJCC, programs, services, activities, and resources shall be made available to all customers as appropriate; j. Ensure that referrals will be made via email or other electronic means; k. Ensure that referrals will include a direct link or access to other AJCC Partner staff that can provide meaningful information or service, through the use of co -location, or real-time technology (two-way communication and interaction with AJCC Partners that results in services needed by the customer); and, 1. Ensure that the referral process will include specific staff name, the activity required, desired outcome and a method for communicating back to the referring agency that the service need was addressed. 10) AJCC OPERATING BUDGET The purpose of this section is to establish funds and services that contribute to the local AJCC. The parties consider this AJCC operating budget necessary to maintain the SAWDB's high- 25J-12 EXHIBIT 1A standard AJCd. It includes the following cost categories, as required by WIOA and its implementing regulations: a. SAWC Infrastructure costs; b. Career services; and c. Shared services. 11) INFRASTRUCTURE FUNDING The AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget, included as part of Attachment 4 (Comprehensive Cost Allocation and Partner. Contributions), is an integral component of the overall AJCC operating budget. The other component of the is the Applicable Career Services, attached herein as Attachment 3 and incorporated herein by reference, which includes the shared operating costs and shared services. The overall AJCC operating budget includes the Comprehensive Cost Allocation and Partner Contributions, attached herein as Attachment 4 and incorporated herein by reference. 12) AJCC DELIVERY SYSTEM COSTS It is expressly understood that this MOU does not constitute a binding financial commitment, but rather an intent to commit speck resources in the future as the parties' allocations and budgets are known and the America's Job Center of California system evolves. For those partners that will require a cost sharing agreement, cost will be based on proportionate use and agreed upon methodology as applicable. AJCC partners with shared costs will be reviewed yearly and may be modified as needed by any partner as long as it is identified as a revision, and it is signed and dated by the applicable parties. As required by W SD 16-09, the amount of funds that the AJCC Partner has budgeted to expend on applicable career services and other shared services, which cumulatively with the other AJCC Partners budgeted amounts shall form the Comprehensive Cost Allocation and Partner Contributions. a. Career Services Applicable to the AJCC Partner The AJCC Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The agreed upon Applicable Career Services Budget is set forth in Attachment 3 attached hereto and incorporated herein by reference. This budget consists of the AJCC Partner's costs for the service delivery of each applicable career service they indicated in the Santa Ana AJCC Partner Services. b. Required Consolidated Budget for the Delivery of "Applicable Career Services" The other system costs budget must be a consolidated budget for applicable career services. This budget must include each of the Partner's costs for the service delivery of each applicable career service and a consolidated system budget for career services applicable to more than one Partner as indicated in the Comprehensive Cost Allocation and Partner Contributions. AJCC Partners understand that while only collocated Partners share infrastructure costs, at this 25J-13 EXHIBIT 1A time, all non -collocated AJCC Partners must share in other System costs through non -cash (in kind) contributions as set forth herein. 13) DATA SHARING "Workforce Services Directive 16-23 from the Employment Development Department and the California Workforce Development Board, mandates the use of one integrated data system. Accordingly, all Title I Workforce Innovation and Opportunity Act (WIOA) recipients and sub - recipients are required to be direct entry into Ca1JOBS." Parties further agree that the collection, use, and disclosure of customers' personally identifiable information (PH) is subject to various requirements set forth in Federal and State privacy laws. Partners acknowledge that the execution of this MOU, by itself, does not function to satisfy all of these requirements. All data, including customer PH, collected, used, and disclosed by Partners will be subject to the following: a. Customer PH will be properly secured in accordance with the SAWDB's policies and procedures regarding the safeguarding of PH; b. The collection, use, and disclosure of customer education records, and the PII contained therein, as defined under FERPA, shall comply with FERPA and applicable State privacy laws; c. All confidential data contained in Unemployment Insurance wage records must be protected in accordance with the requirements set forth in 20 CFR part 603; d. All personal information contained in Vocational Rehabilitation records must be protected in accordance with the requirements set forth in 34 CFR 361.38; e. Customer data may be shared with other programs, for those programs' purposes, within the AJCC network only after the informed written consent of the individual has been obtained, where required; f. Customer data will be kept confidential, consistent with federal and State privacy laws and regulations; and, g. All data exchange activity will be conducted in machine readable format, such as HTML or PDF, for example, and in compliance with Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794 (d)). 14) CONFIDENTIALITY All parties expressly agree to abide by all applicable Federal, State, and local laws and regulations regarding confidential information, including PII from educational records, such as but not limited to 20 CFR Part 603, 45 CFR Section 205.50, 20 USC 1232g and 34 CFR part 99, and 34 CFR 361.38, as well as any applicable State and local laws and regulations. 10 25J-14 EXHIBIT 1A. Each party will ensure that the collection and use of any information, systems, or records that contain PH and other personal or confidential information will be limited to purposes that support the programs and activities described in this MOU and will comply with applicable law. Each party will ensure that access to software systems and files under its control that contain PH or other personal or confidential information will be limited to authorized staff members who are assigned responsibilities in support of the services and activities described herein and will comply with applicable law. Each party expressly agrees to take measures to ensure that no PII or other personal or confidential information is accessible by unauthorized individuals. To the extent that confidential, private, or otherwise protected information needs to be shared amongst the parties for the parties' performance of their obligations under this MOU, and to the extent that such sharing is permitted by applicable law, the appropriate data sharing agreements will be created and required confidentiality and ethical certifications will be signed by authorized individuals. With respect to confidential unemployment insurance information; any such data sharing must comply with all of the requirements in 20 CFR Part 663, including but not limited to requirements for an agreement consistent with 20 CPR 603.10, payments of costs, and permissible disclosures. With respect to the use and disclosure of FERPA-protected customer education records and the PH contained therein, any such data sharing agreement must comply with all of the requirements set forth in 20 U.S.C. § 1232g and 34 CFR Part 99. With respect to the use and disclosure of personal information contained in VR records, any such data sharing agreement must comply with all of the requirements set forth in 34 CFR 361.38. 15) PRESS RELEASES AND COMMUNICATIONS All parties shall be consulted and notified prior to communicating with the press, television, radio or any other form of media regarding its duties or performance under this MOU. Participation of each party in press/media presentations will be determined by each party's public relations policies. The parties agree to utilize the AJCC logo developed by the State of California and the SAWDB on buildings identified for AJCC usage when applicable. 16) ACCESSIBILITY Accessibility to the services provided by the AJCCs and all Partner agencies is essential to meeting the requirements and goals of the local AJCC network. Job seekers and businesses must be able to access all information relevant to them via visits to physical locations as well as in virtual spaces, regardless of gender, age, race, religion, national origin, disability, veteran's status, or on the basis of any other classification protected under state or federal law. 17) NON-DISCRD41NATION AND EQUAL OPPORTUNITY All parties to this MOU certify that they prohibit, and will continue to prohibit, discrimination, and they certify that no person, otherwise qualified, is denied employment, services, or other 11 25J-15 EXHIBIT 1A benefits on the basis of. (i) political or religious opinion or affiliation, marital status, sexual orientation, gender, gender identification and/or expression, race, color, creed, or national origin; (ii) sex or age, except when age or sex constitutes a bona fide occupational qualification; or (iii) the physical or mental disability of a qualified individual with a disability. 18) GRIEVANCES AND COMPLAINTS PROCEDURE The AJCC Partner agrees to establish and maintain a procedure for grievance and complaints as outlined in WIOA. The process for handling grievances and complaints is applicable to customers and Partners. These procedures will allow the customer or entity filing the complaint to exhaust every administrative level in receiving a fair and complete hearing and resolution of their grievance, The Partner further agrees to communicate openly and directly to resolve any problems or disputes related to the provision of services in a cooperative manner and at the lowest level of intervention possible. All Partners agree'to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or involves police authorities. 19) AMERICAN'S WITH DISABILITIES ACT AND AMENDMENTS COMPLIANCE The AJCC Partner agrees to ensure that the policies and procedures as well as the programs and services provided at the AJCC are in compliance with the Americans with Disabilities Act ("ADA") and its amendments. Additionally, the SAWDB and the AJCC Partners will ensure that policies and procedures established by the SAWDB and the AJCC Partners are in compliance with the ADA. 20) HOLD HARMi,ESS/INDENMFICATION/LIABILITY In accordance with provisions of Section 895.4 of the California Government Code, each signatory hereby agrees to indemnify, defend and hold harmless all other signatories identified in this MOU from and against any and all claims, demands, damages and costs arising out of or resulting from any negligent acts, or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. In addition, except for Departments of the State of California which cannot provide for indemnification of court costs and attorney's fees under the indemnification policy of the State of California, all signatories to this MOU agree to indemnify, defend and hold harmless each other from and against all court costs and attorney's fees arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. It is understood and agreed that all indemnity provided herein shall survive the termination of this MOU. 21) SEVERABILITY If any part of this MOU is found to be null and void or is otherwise stricken, the rest of this MOU shall remain in force. 22) DRUG AND ALCOHOL -FREE WORKPLACE All parties to this MOU certify they will comply with the Drug -Free Workplace Act of 1988, 41 U.S.C. 702 et seq., and 2 CFR part 182 which require that all organizations receiving grants from 12 25J-16 EXHIBIT 1A any Federal agency maintain a drug -free workplace. The recipient must notify the awarding office if an employee of the recipient is convicted of violating a criminal drug statute. Failure to comply with these requirements may be cause for suspension or debarment under 2 CFR part 180, as adopted by the U.S. Department of Education at 2 CFR 3485, and the U.S. Department of Labor regulations at 29 CFR part 94. 23) CERTIFICATION REGARDING LOBBYING All, parties shall comply with the Byrd Anti -Lobbying Amendment (31 U.S.C. Section1352), 29 C.F.R. Part 93, and 34 CFR part 82, as well as the requirements in the Uniform Guidance at 2 CFR 200.450. The parties shall not lobby federal entities using federal funds and will disclose lobbying activities as required by law and regulations. 24) DEBARMENT AND SUSPENSION All parties shall comply with the debarment and suspension requirements (E.0.12549 andl2689) and 2 CFR part 180 and as adopted by the U.S. Department of Labor at 29 CFR part 2998 and by the U.S. Department of Education at 2 CFR 3485. 25) PRIORITY OF SERVICE All parties certify that they will adhere to all statutes, regulations, policies, and plans regarding priority of service, including, but not limited to, priority of service for veterans and their eligible spouses, and priority of service for the WIOA title I Adult program, as required.by 38 U.S.C. sec. 4215 and its implementing regulations and guidance, and WIOA see. 134(c)(3)(E) and its implementing regulations and guidance. Partners will target recruitment of special populations that receive a focus for services under WIOA, such as individuals with disabilities, low-income individuals, basic skills deficient youth, and English language learners, as applicable. 26) BUY AMERICAN PROVISION Each party that receives funds made available under title I or II of WIOA or under the Wagner- Peyser Act (29 U.S.C. Section 49, et. seq.) certifies that it will comply with Sections 8301 through 8303 of title 41 of the United States Code (commonly known as the `Buy American Act.") and as referenced in WIOA Section 502 and 20 CFR 683.200(f). 27) SALARY COMPENSATION AND BONUS LIMITATIONS Each party certifies that, when operating grants funded by the U.S. Department of Labor, it complies with TEGL 05-06, Implementing the Salary and Bonus Limitations in Public Law 109- 234, TEGL 17-15, Public Laws 114-113 (Division H, title I, Section 105) and 114-223, and WIOA section 194(15)(A), restricting the use of federal grant funds for compensation and bonuses of an individual, whether charged to either direct or indirect, at a rate in excess of the Federal Office of Personnel Management Executive Level 11. 13 25J-17 EXHIBIT 1A 28) TERMINATION This MOU will remain in effect until the end date specified in section 4 above, unless: a. Federal oversight agencies charged with the administration of WIOA are unable to appropriate funds or if funds are not otherwise made available for continued performance for any fiscal period of this MOU succeeding the first fiscal period. Any party unable to perform pursuant to MOU due to lack of funding shall.notify the other parties as soon as the party has knowledge that funds may be unavailable for the continuation of activities under this MOU; b. WIOA is repealed or superseded by subsequent federal law; c. Local area designation is changed under WIOA; and, d. A party breaches anyprovision of this MOU and such breach is not cured within thirty (30) days after receiving -written notice from the SAWDE Chair (or designee) specifying such breach in reasonable detail. In such event, the non -breaching party(s) shall have the right to terminate this MOU by giving written notice thereof to the party in breach, upon which termination will go into effect immediately. In the event of termination, the parties to the MOU must convene within thirty (30) calendar days after the breach of the MOU to discuss the formation of the successor MOU. At that time, allocated costs must be addressed. , This MOU is of no force or effect until signed by authorized representatives of the participating parties, and approved by the Chief Local Elected Official or his/her designee. The MOU, once signed, becomes part of the local WIOA Plan. Any party may withdraw from this MOU by giving written notice of intent to withdraw at least thirty (30) calendar days in advance of the effective withdrawal date. If agreed to by allparties, the timeframes for notice may be reduced or extended. Notice of withdrawal shall be given to the SAWDE at the address listed in the signed attachments of this MOU, and to the contact person so listed, considering any information updates received by the parties, a courtesy notification shall be made to all parties of this MOU in a timely manner. 29) NOTICES All notices, requests, claims, correspondence, reports, statements authorized or required by this Agreement, and/or other communications shall be addressed as follows: City of Santa Ana: City of Santa Ana Administration Services 801 W. Civic Center Dr., Suite 200 Santa Ana, CA 92701 NON -COLLOCATED PARTNER: Community Action Partnership of Orange County 11870 Monarch Street Garden Grove, CA 92841 14 25J-18 EXHIBIT 1A 30) INSURANCE The AJCC Partners agree that their current in force insurance or self-insurance coverage programs shall apply to their operations performed under the Workforce Innovation Opportunity Act, including commercial general liability, property damage liability, business personal property, workers' compensation and employee dishonesty/crime coverages. The City of Santa Ana shall be named as additional insured for such insurance and the coverage shall be primary and non- contributory with regard to the City. 31) AUTHORITY AND SIGNATURES The individuals signing this MOU and its attachments, which are incorporated herein by reference, have the authority to commit the party they represent to the terms of this MOU, and do so commit by signing. ATTACHMENTS Attachment 1: AJCC Partners Location and Map Attachment 2: Santa Ana AJCC Partner Services Attachment 3: Applicable Career Services Attachment 4: Comprehensive Cost Allocation and Partner Contributions THIS MEMORANDUM OF UNDERSTANDING is hereby signed and agreed to on the date first written above. FOR THE CITY OF SANTA ANA Attest: Daisy Gomez, Clerk of the Council Recommended for Approval: Steven A. Mendoza, Executive Director Community Development Agency City of Santa Ana: Kristine Ridge, City Manager to Form: alho, City Attorney Assistant City Attorney WORKFORCE DEVELOPMENT BOARD 15 25J-19 EXHIBIT 1A G mmunity Development Agency FOR SANTA ANA WORKFORCE DEVELOPMENT BOARD Stacey Sanchez, Chair FOR AMERICA'S JOB CENTER OF CALIFORNIA PARTNER T 25J-20 EXHIBIT 1A Attachment 1 AJCC Partners Location and Map Partner Program Partner Organization ' Authorization/Category Physically Co -Located Title I Adult, Dislocated City of Santa Ana WIOA Title I Adult Dislocated Workers, Workers and Youth Youth Programs Yes programs Rancho Santiago WIOA title II Adult Education and Family Community College Literacy Act (AEFLA) program Adult Education/.Litera cy District Career and technical education (CTE) and Carl Perldns Career programs at the postsecondary level, No Technical Education authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seg.) Wagner-Peyser ' Employment WIOA title III Wagner-Peyser Employment Development Services, authorized under the Wagner-Peyser yes Department (EDD) Act (29 U.S.C. 49 et seq.), also providing the state's public labor exchange. Employment Jobs for Veterans State Grants (JVSG) Veterans Development . authorized under chapter 41 of title 38, U.S.C. Yes D artment DD Employment Trade Adjustment Assistance (TAA), Trade Act Development authorized under chapter 2 of title II of the Yes Department DD Trade Act of 1974 19 U.S.C. 2271 et seg.) Unemployment Insurance Employment Unemployment Insurance (UI) programs under (UI) Development state unemployment compensation laws, No Department EDD) State Department of WIOA title IV State Vocational Rehabilitation Vocational Rehabilitation Rehabilitation program authorized under title I. of the yes Services Rehabilitation Act of 1973 (29 U.S.C. 720 et s Temporary Assistance for Social Service Agency- Temporary Assistance for Needy Families Needy Families (TANF) Family Self -Sufficiency (TANF), authorized under part A of title IV of Yes the Social Security Act 42 U.S.C. 601 et s Senior Aid Program Senior Community Service Employment Senior Aid Program Regions II &. III Program (SCSEP) authorized under title V of Yes SER-Jobs for Progress, the Older Americans Act of 1965 (42 U.S.C. Inc. 3056 et seg.) Job Corps Long Beach Job. Corps WIOA Title I C, Jobs Corps No Native American Programs Southern California Indian and Native American Programs (Section No Indian Center 166 Housing & Urban Santa Ana Housing Housing & Urban Development (HUD) yes Development Authority Housing Choice Voucher (HCV) Orange County Housing HomeOwnership OC Homeownership option. The homeownership Yes Authority option allows first-time homeowners to receive assistance with homeownership expenses. Community Services Block Community Action Employment and training activities carried out Grant Partnership of Orange under the Community Services Block Grant No County Act CSBG 42 U.S.C. 9901 et s 25J-21 EXHIBIT 1A Santa Ana WORK Center America's Job Center of California Partners 1.V ti N 1 Santa Ana WORK Center 7� America's lob Center of California 801 W Civic Center Dr., #200 Santa Ana, CA 92701 Collocated Partners: Employment Development Department State Department of Rehabilitation O.C. Social Services Agency SER/Senlor Aid Program Santa Ana Housing Homeownership Centennial Adult Education O 2900W Edinger Ave. Santa Ana, CA 92704 Santa Ana College 1530 W. 17th St. Santa Ana, CA 92706 College & Workforce ®Preperation Center 1572 N. Main St. Orange, CA 92867 PL. LA VETA N Long Beach lob Corps 1903 Santa Fe Ave. Long Beach, CA 90810 Community Action ®Partnership of O.C. 1601 W. 2nd St. Santa Ana, CA 92703 Southern Califomia OIndian Center 10175 Slater Ave, #I So Fountain Valley, CA 92708 EXHIBIT 1A C� a a - w m cl�F o: m a+ r` L6 ao � co r vi a n o Vi c6 10 10 0 ro 16 a v v a v d hi v E rfm rf fy M N W N N N N OD N eti rl eel f'i m r q W 00 ei r•I � N p y n .0 to y D, n . •? G n O) V7 m IA r L 00 Ln W �` V n fri n N pCq y N N m d` a 0 ffl 01' [f1 00 ry V Y o a :b_a 1a a .0 '-I e-I '-1 ❑ N GO �"� r-I a -I rl W Yn � F Ol s n L6 1ri Ln l Q 14 n � ti m le r 'C 00 fn 01 QI LeQl O Vl H VI n N o0 0 0 00 1p � O 10 t0 e�-I lD V) 0 �` Vl V7 qF Vl r, N V1 N 00 M d a V m ~ V C N fV 1f7 N M 'm-I N M N vi N m N 1+1 t j d Oa ;0 m �j 01 ID ro f-i e-I .ti e-i e-1 f-I f-I .ti r•-I '~ N e-I N w f- N C C C G O C wd Q1. wy W m A(U0 Oa 00 Gl 0 N 0 W 0 01 c Y c a, W W u 00 E a O C m O N>❑>❑>❑>❑ C O N w U a O mV ❑v❑v Y 1+ ❑�❑ La w Y U O a u O U O u.. 0 L Y Y Y Y .0 (A C u c C N N a) E. w N w m. f0 = 2 � N •� '0 ¢ V E ¢ 1n o m �. E E �, E �, E (u 1n o c10i oa W E 2 m m T E co aj O u �m aCX Qm a) m L m 'u E cti c E 0 0 'e 'coo 00 Sc++�+ c a] 0 10 f0 O o w c O 0 al O U a U W O W❑ W❑ W❑ Y V1 a V) LL a u h d' C J VI U = C " C 0 LZ w •r a h L w > > aJ c 0 c U E La E Yo' La w ¢ E ' r o 2 u 07 v m as c c a �o a > > a ` c Yi ° � c m y Qj E N oiS E v L° ¢ c ° c o O °L ¢ c to a ¢ w (U,2 D Fo 4 E 3 LL a 'm 0 y o c o w tko a) W h 10 u u >_� > Z S❑ Q > of F Q > H V W -� 25J-23 EXHIBIT 1A N C m L v m u d 0 a n p g O a' a a 0 a w C u 2 E N L v a u z rZa- Q ` N d 00 W N C O O u O O x r ts Q O 1? C q o « W to O E Gl. W « E x 0 8 Om O- L t E u a m z o a g a r � ti Q c IL O 0 w E u E o 0 x u o b.�P,0 04 Ab.� S y cn 3 o o asddi Q �ro ct❑cy 0 cc aD o , a •GL�I b ig ,cq° •n� ,°q �. �• 5�0 0, y ° � p M 7% U ° Q y a„ ova ti ti Al to �a ow oaf a ai o 0 jt 5s«� ay6 aO3��6 6yv 5 0� tu off y�000 q ajyO a ° ° �°''°��� oao ti Ub" N O N ;� a ui w0 q F 0 o .50 ��iD qo W yo �w y °o04. o�°5O E35'^tip . {+y-I N W d y N a .b •iy �..i W 'O s r••� a O a U ���iii O G .W. N b Q �n •� tj y �i y ,O i s a s a 0 w a d di C 3 �g •ory v �q y '� `�' F •c❑N1 yam„ •� ° ;+yv7(�, tU. ttGvv •'�.�. O vi rA O ." . Cd w N M a 5 W h W u 25J-24 N EXHIBIT 1A t h Lf W b r W MI a'5 M 25J-25 I_Wi;113IffiI_1 E 2 w C o a� gg B R � N A. O V bA y yq v00 4 W O en •5 5 o pob o on v O as .°°s b �Y s� o� �w0 o•0 b q w d w w vo U e N •� 0 �d v gd V a w y ob aq' W U F > ps N H ��•I rl H 5 U O +li O KM VI d u u en M `m if; M to 2d'J-26 EXHIBIT 1A zo 0t 0 U qpq N NN� � N �5 q O p O •� ., ? .; �.� Aro .rg°J a •0p, b q tO ;p .� oD 0>1 '01Atl7 VOq, 00 �U oto •--� m S3 0 0 ° ayw Q '� 'O W �j '� �, . N y N bg❑aD0 O ro N •� a. '� ° o B 0 o a�i OP, e . a e�1u a °'tea" wo N p N U "� •^� U r.+ « o �i U GL U NNN U N �j �j U yU ;Ftly O O FL bUA O V .0 0 o .� OT7 � v ti a J a -do U8 a "y ° o a� too o o%=0? 00 .0 10 U,8 o b b o`dNgaq as "g a. �' yo y m o ro b o 60 �„to a B o 3 o Wbb"� to o c�. 9yi� 0 U .Fi o W 5 4' v 0.��i o E 3 •°d V l-Z 06 Qi CA rl N M EXHIBIT 1A V a 0 HH O a��U �o0' a0 Oo •� �.d .0��70J O 0 8 U w y p Ci U o op NA U aog°� 10 V b o� a� a� ova co a� p Rao�pp en W w a ao 0 awaEl a ¢wnaoz '� N wwoz E 25J-28 EXHIBIT 1A Attachment 3 APPLICABLE CAREER SERVICES Sharing Other One=Stop Delivery System Costs The budget must include "applicable career services" as well as any.other shared costs agreed upon by the AJCC partners. While only co -located partners share infrastructure costs, all One -Stop partners must share in other system costs, including applicable career services. Required Consolidated System Budget for "Applicable Career. Services" Summary of Career Services Applicable to Each AJCC Partner The MOU requires identification of the career services that are applicable to each partner program (Attachment 2). Accordingly, this budget includes each of the partner's costs for the service delivery of each applicable career service. Unlike infrastructure cost sharing, other system costs, including "Applicable Career Services" are not limited to the non -personnel costs and should include all costs related to the administration and delivery of those services. AJCC Applicable Career Services CAPOC Career Services: $225,000.00 . • Eligibility Determination (1) • Outreach, Intake and Orientation (2) • Initial Assessment (3) • Job Search, Placement Assistance, and Career Counseling (4) • Employment Statistics -Labor Market Information (5) • Eligible Provider performance and program Cost Information (6) • Local Performance Information (7) • Supportive Services' Information (8) • Unemployment Compensation (9) • Eligibility Assistance (10) Follow -Up Services (11) • Comprehensive and Specialized Assessments (12) • Individual Employment Plan Development (13) • Group Counseling (14) • Individual Counseling and Career Planning (15) • Case Management (16) • Short -Term Prevocational Services (17) Training $0 • Occupational Skills Training (1) • On -the -Job Training (OJT) (2) • Workplace and cooperative education (3) • Training programs operated by the private sector (4) • Skills upgrading and retraining (5) • Entrepreneurial training (6) . • Job -readiness training (7) • Adult Education and Literacy programs (8) • Customized training (9) 25J-29 EXHIBIT 1A APPLICABLE CAREER SERVICES Employer Services • Employer needs assessment (1) • Job posting (2) • Applicant pre-screening (3) • Recruitment assistance (4) • Training assistance (5) • Labor Market Information (6) • Employer information and referral (7) • Rapid Response and Layoff Aversion (8) Total Career Service Cost Attachment 8 $0 $225,000.00 25J-30 EXHIBIT 1A Attachment 4 Gornprehensiue Gost Allocation and Partner C' ntributon %.f Tob1 Opan 00nal Cost PaW for Basb on ManthNPngrty Mon", Gartas MondJy MnN AmOvnt:In-N�.b,utbmGaitmPrynm Sown rdmee; �, •R.nP and Manatemant Ins foiE4UIP=M EOWpmantuuia ...Bind6ramrt s"EN 8177M 43.58% $ 17,939.40 S .676.40 S 2.M.88 S 21'ssc 8 5 3,317.0415.73%,swIM{0apanmantdR.Mbmtat 219.03 143% $ 48L87 S $ 120.11 S 6OL99 S 5.349.48Se6-Svff n4y 3191.60 B1T3S, $' 2,63152 $357.43 S=r 2913"95 $0pW.00;219A3 L13% 5 48187 S $ 120.12 S 6OL99 S 2.25lt 43i6 2.2)% St*a L 9fi3'A, 'S'"', $;i,. 24058 I$".:� MI1 $ ,26134Ramho 3antiate Gm lyC.&S. Ohtd4t om 0.00% $ $ $ $ S1,19L70 Quf. andgn GMar 0.00 0A0% S $ $0,OOD.00'$ 5,000.OdioWRentableSpan 19321.00 100.00% $ 42.506.20 $ 676.40 $ 7,591.46 $ 50,774.08 $ 5.105.06 Revised 7/18/19 5:22:42 PM a Rmt4Si.loper SO fMwfth 3% Meer rnw0y •a yeady C4ner Se M4rport4d byrotpa "peRrn9tMdend may0tdude but b not Wted r Damen payn0, dlent t nfnteapmes,O nt siMmsexpense, ate f SEA b pa ft 1657.10 fa 3 viUdu fm 3 mo - ' 25J-31 25J-32 EXHIBIT 1B Memorandum of Understanding For Santa Ana Workforce Development Board and the Rancho Santiago Community College District 25J-33 EXHIBIT 1B MEMORANDUM OF UNDERSTANDING 1) LEGAL AUTHORITY The Workforce Innovation and Opportunity Act ("WIOA") sec. 121(c)(1) requires that each Local Workforce Development Area develop and enter into a Memorandum of Understanding ( "MOU") with each America's Job Center of California ("AJCC I) Partner, consistent with WIOA Sec. 121(c)(2). This requirement is further described in the WIOA; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the AJCC System Joint Provisions: Final Rule at 20 CFR 678.500, 34. CFR 361.500, and 34 CFR 463.500, and in Federal guidance. 2) PARTIES The parties to this MOU are the City Council of the City of Santa Ana, the Santa Ana Workforce Development Board ("SAWDB"), and the Rancho Santiago Community College District, a non - collocated one -stop AJCC Partner. 3). PURPOSE The purpose of the MOU is consistent with the provisions of WIOA sec. 121(c)(1), to establish a cooperative working relationship between the SAWDB and Rancho Santiago Community College District, the non -collocated AJCC Partner, and to define their respective roles and responsibilities concerning the operation of the AJCC as it relates to shared services and customers. It serves to establish the framework for providing services to employers, employees, job seekers and others needing workforce services. It also serves to establish a framework to support the established. service delivery through the sharing of resources and costs. It is expressly understood that this MOU does not constitute a binding financial commitment, but rather an intent to commit specific resources in the future as the parties' allocations and budgets are known and the America's Job Center of California system evolves. 4) DURATION This MOU shall become effective as of the date of full execution of the MOU by all Parties ("Effective Date") and terminate June 30, 2022. This MOU will be reviewed not less than once every three years to ensure appropriate funding and delivery of services and to identify any substantial changes that require modification of this MOU. This MOU will remain in effect until the termination date, unless one of the conditions in section 32 occurs. 5) MODIFICATIONS AND REVISIONS This MOU and its Attachments 1, 2, 3, and 4, constitute the entire agreement between the parties, and no oral understanding not incorporated herein shall be binding on any of the parties hereto. This MOU may be modified, altered, or revised, as necessary, by mutual consent of the parties, by the issuance of a written amendment, signed and dated by the parties, which may require approval by the governing body of each Party. Assignment of responsibilities under this MOU by any of 25J-34 EXHIBIT 113 the parties shall require prior written notice and preapproval of all parties. Any assignee shall also commit in writing to the terms of this MOU. 6) SANTA ANA WORKFORCE DEVELOPMENT STRATEGIES Santa Ana's vision rests on integrating current and future resources through its SAWDB Partners. Integration suggests more than partnering or assembling multiple funding sources. It means making certain that all elements of the workforce support system work together to create inviting and seamless services wherever a client enters the system. Santa Ana's vision is sensitive to the needs of its unique demographics. The SAWDB's overall strategies include: a) Identifying regional industry clusters (e.g., manufacturing cluster, medical cluster, etc.) to create new jobs in which Santa Ana's workforce can participate; b) Expanding small business development support. as a creator of new jobs and method for growing the local tax base; c) Educating Santa Ana's current and future workforce through classroom pre -training and training activities, plus on-the-job training and workforce skill enhancement activities; d) Offering career pathway programs for both unemployed and employed adults and youth; e) Increasing access to jobs for disconnected and underserved populations, especially youth; f) Organizing, integrating and supporting social and other services through the SAWDB's network of partnerships, volunteer organizations, and established institutional resources; and, g) Assuring funding from all public, private, and other sources in support of its programs. 7) ONE -STOP SYSTEM & SERVICES A. LOCATION The AJCC is currently located in Santa Ana as follows: American Job Center (Comprehensive AJCC) Santa Ana WORK CENTER' 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 (714)565-2600 Open to the Public: Monday— Friday 8:00 am-5:00 pm The AJCC is currently located at the Santa Ana WORK Center ("SAWC") as described in the Location of AJCC and all Partners, attached herein as Attachment 1 and incorporated herein by reference. Santa Ana ranks as the fourth densest city in the entire nation. SAWC, through its central location in downtown Santa Ana, shall provide and/or coordinate WIOA services to individuals, providing them with the necessary skills to participate in building a world -class workforce in Santa Ana. The SAWC offers the community a variety of informational,.employment and training services based on individual needs. Those needs aremet by the combined efforts of the SAWC Partners as described bythe Santa Ana AJCC Partner Services, included herein as Attachment 2 and incorporated herein by reference. 25J-35 EXHIBIT 1B B. SERVICES PROVIDED AT THE SANTA ANA WORK CENTER Services and referrals provided at the SAWC by AJCC Partners may include, but are not limited to, the following: 1. Basic Career Services: a. Eligibility determination; b. Outreach, intake, and orientation to information and services; c. Initial assessment of skill levels, including: literacy, numeracy, and English proficiency; and, aptitudes, abilities, and support service needs; d. Labor exchange services, including: i. Job vacancy listings in labor market areas; . ii. Information on job skills needed to obtain the vacant jobs; and, iii. Information relating to in -demand occupations, including earnings and opportunities for advancement; e. Provision of performance and program cost information on the Eligible Training Provider List ("ETPL`� eligible programs by program and type of provider f. Provision of information in acceptable formats and languages that identify actual performance against performance accountability measures g. Provision of information related to support services h. Provision of information and assistance in filing Unemployment Insurance claims; and, i. Assistance in establishing eligibility for programs of financial aid assistance for training and education programs not funded through WIOA. 2. Individualized Career Services: a. Comprehensive and specialized assessment of skill levels and service needs including: Diagnostic testing; and, other assessment tools; b. In-depth interview and evaluation to determine barriers and goals; c. Development of Individual Employment Plan (IEP) to identify goals, objectives, and services; d. Group counseling; e. Individual counseling; f. Career planning; g. Short-term pre -vocational services, including: development of learning skills; communication skills; and, other soft skills to prepare individuals for employment or training; h. Workforce preparation activities, including: basic academic; and, obtaining other skills necessary for successful transition into postsecondary education, training or employment; i. Financial literacy services; and, j. Out -of -area job search assistance and relocation assistance. 3. Traininu Services: a.. Occupational skills training; b. On -the -Job training; c. Incumbent worker training; 25J-36 EXHIBIT 1B d. Programs that combine workplace training with related instruction, which may include cooperative education programs; e. Training programs operated by the private sector; f. Skill upgrading and retraining; g. Entrepreneurial training programs; h. Transitional jobs; i. Job readiness training provided in combination with any of the aforementioned training Services; . j. Adult education and literacy activities, including: activities of English language acquisition; and, integrated education and training programs provided concurrently or in combination with any of the aforementioned training services; k. Customized training; 1. Internships and work experiences that are linked to careers; and, m. English language acquisition and integrated education and training program. 4. Employer Services: a. Recruitment and other business services on behalf of employers. C. SYSTEM STRUCTURE 1. AJCC ONE -STOP OPERATOR PROCUREMENT The SAWDB will procure the AJCC Operator through a competitive process in accordance with the Uniform Guidance Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200 (Uniform Guidance), including the Office of Management and Budget's (OMB) approved exceptions for the U.S. Department of Labor at 2 CFR part 2900, WIOA and its implementing regulations, and local procurement laws and regulations. All documentation for the competitive AJCC operator procurement will be available for public inspection. The State requires that the AJCC operator is re.competed at least every three years and no later than every four years. 2. ROLES AND RESPONSIBILITIES OF PARTIES a. Provision of Applicable Career Services and Participation in Planning andDevelopment. The parties to this MOU will work closely together to ensure that the AJCC is a high - performing work place with staff that ensure quality of service. The AJCC Partner has indicated they shall provide an array of applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The AJCC Partner agrees to the responsibilities required of all Partners under WIOA Section 121(b). In addition, the AJCC Partners will participate in joint planning, plan development, and modification of activities to accomplish the following: i. Continuous partnership building; ii. Continuous planning in response to state and federal requirements; and, iii. Responsiveness to local and economic conditions, including employer needs. 5 25J-37 EXHIBIT 1B Parties agree to the co -enrollment of mutual customers in case management to better leverage the resources available for the benefit of the participant and enhance successful outcomes and participate in the operation of the one -stop system consistent with the terms of the MOU and requirements of authorized laws. Both parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or behavior that requires police intervention. Parties agree to collaborate and reasonably assist each other in the development ofnecessary service delivery protocols for the services outlined in this MOU. Parties agree that the provisions contained herein are made subject to all applicable federal and state laws, implementing regulations, and guidelines imposed on either or all the parties relating to privacy rights of customers, maintenance of records, and other confidential information relating to customers. Parties agree that all equipment and furniture purchased by any party for purposes described herein shall remain the property of the purchaser after the termination of this MOU. b. Parties shall comply with: i. Section 188 of the WIOA Nondiscrimination and Equal Opportunity Regulations (29 CFR Part 38; Final Rule, published December 2, 2016); ii. Title VI and VII of the Civil Rights Act of 1964 (Public Law 88-352), as amended; iii. Section 504 of the Rehabilitation Act of 1973, as amended; iv. The Americans with Disabilities Act of 1990, as amended; v. The Jobs for Veterans Act (Public Law 107-288) pertaining to priority of service in programs funded by the U.S. Department of Labor; vi. Training and Employment Guidance Letter (TEGL) 37-14, Update on Complying with Nondiscrimination Requirements: Discrimination Based on Gender Identity, Gender Expression and Sex Stereotyping are Prohibited. Forms of Sex Discrimination in the Workforce Development System and other guidance related to implementing WIOA sec. 188; vii. The Non-traditional Employment for Women Act of 1991; viii. The Age Discrimination Act of 1967, as amended; , ix. The Age Discrimination Act of 1975, as amended; x. Title IX of the Education Amendments of 1972, as amended; xi. The Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. § 1232g; 34 CFR part 99); M. 25J-38 EXHIBIT 1B xii. Title IX of the Education Amendments of 1972, as amended; xiii. Confidentiality requirements governing the protection and use of personal information held by the VR agency (34 CFR 361.38); xiv. The confidentiality requirements governing the use of confidential information held by the State UI agency (20 CFR part 603); and, xv. All amendments to each, and all requirements imposed by the regulations issued pursuant to these acts. The Parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or activity that requires policy intervention. 8) AJCC PARTNER RESPONSIBILITIES Partner commits staff, as appropriate, and to providing other professional learning opportunities that promote continuous quality improvement. Partner will further promote system integration to the maximum extent feasible. through: a. Effective communication, information sharing, and collaboration with the AJCC operator; b. Joint planning, policy development, and system design processes; c. Commitment to the joint mission, vision, goals, strategies, and performance measures; d. The design and use of common intake, assessment, referral, and case management processes; e. The use of common and/or linked data management systems and data sharing methods, as appropriate; f. Leveraging of resources, including other public agency and non-profit organization services; g. Participation in a continuous improvement process designed to boost outcomes and increase customer satisfaction; and h. Participation in regularly scheduled Partner meetings to exchange information in support of the above and encourage program and staff integration. Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. 7 25J-39 EXHIBIT 113 9) REFERRALS The primary principle of the referral system is to provide integrated and seamless delivery of services to workers, job seekers, and employers. In order to facilitate such a system, Partners will ensure and agree to; a. Familiarize themselves with the basic eligibility and participation requirements, as well as with the available services and benefits offered, for each of the Partners' programs represented in the AJCC network; b. Develop materials summarizing theirprogram requirements and making them available for Partners and customers; c. Develop and utilize common intake, eligibility determination, assessment, and registration forms, as appropriate; d. Provide substantive referrals to customers who are eligible for .supplemental and complementary services and benefits under Partner programs; c. Regularly evaluate ways to improve the referral process, including the use of customer satisfaction surveys; f. Commit to robust and ongoing communication required for an effective referral process; g. Commit to actively follow up on the results of referrals and assuring that Partner resources are being leveraged at an optimal level; h. Ensure that intake and referral processes are customer -centered with the intent to provide high quality customer service; i. Ensure that general information regarding AJCC programs, services, activities, and resources shall be made available to all customers as appropriate; j. . Ensure that referrals will be made via email or other electronic means; k. Ensure that referrals will include a direct link or access to other AJCC Partner staff that can provide meaningful information or service, through the use of co -location, or real-time technology (two-way communication and interaction with AJCC Partners that results in services needed by the customer); and, 1. Ensure that the referral process will include specific staff name, the activity required, desired outcome and a method for communicating back to the referring agency that the service need was addressed. 10) AJCC OPERATING BUDGET The purpose of this section is to establish funds and services that contribute to the local AJCC. The parties consider this AJCC operating budget necessary to maintain the SAWDB's high- 25J-40 EXHIBIT 1B standard AJCC. It includes the following cost categories, as required by WIOA and its implementing regulations: a. SAWC Infrastructure costs; b. Career services; and c. Shared services. i �,�7 �.� rk I�t i7dl r The AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget, included as part of Attachment 4 (Comprehensive Cost Allocation and Partner Contributions), is an integral component of the overall AJCC operating budget. -The other component of the is the Applicable Career Services, attached herein as Attachment 3 and incorporated herein by reference, which includes the shared operating costs and shared services. The overall AJCC operating budget includes the Comprehensive Cost Allocation and Partner Contributions, attached herein as Attachment 4 and incorporated herein by reference. 12) AJCC DELIVERY SYSTEM COSTS . It is expressly understood that this MOU does not constitute a binding financial commitment, but rather an intent to commit specific resources in the future as the parties' allocations and budgets are Imown and the America's Job Center of California system evolves. For those partners that will require a cost sharing agreement, cost will be based on proportionate use and agreed upon methodology as applicable. AJCC partners with shared costs will be reviewed yearly and may be modified as needed by any partner as long as it is identified as a revision, and it is signed and dated by the applicable parties. As required by WSI)16-09, the amount of funds that the AJCC Partner has budgeted to expend on applicable career services and other shared services, which cumulatively with the other AJCC Partners budgeted amounts shall form the Comprehensive Cost Allocation and Partner Contributions. a. Career Services Applicable to the AJCC Partner The AJCC Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The agreed upon Applicable Career Services Budget is set forth in Attachment 3 attached hereto and incorporated herein by reference. This budget consists of the AJCC Partner's costs for the service delivery of each applicable career service they indicated in the Santa Ana AJCC Partner Services. b. Required Consolidated Budget for the Delivery of "Applicable Career Services" The other system costs budget must be a consolidated budget for applicable career services. This budget must include each of the Partner's costs for the service delivery of each applicable career service and a consolidated system budget for career services applicable to more than one Partner as indicated in the Comprehensive Cost Allocation and Partner Contributions. AJCC Partners understand that while only collocated Partners share infrastructure costs, at this time, all non -collocated AJCC Partners must share in other System costs through non -cash (in- 25J-41 EXHIBIT 1B kind) contributions as set forth herein. 1N]OyMm m.,1l ce "Workforce Services Directive 16-23 from the Employment Development Department and the California Workforce Development Board, mandates the use of one integrated data system. Accordingly; all Title I Workforce Innovation and Opportunity Act (WIOA) recipients and sub - recipients are required to be direct entry into CalJOBS." Parties further agree that the collection, use, and disclosure of customers' personally identifiable information (PII) is subject to various requirements set forth in Federal and State privacy laws. Partners acknowledge that the execution of this MOU, by itself, does not function to satisfy all of these requirements. All data, including customer PH, collected, used, and disclosed by Partners will be subject to the following: a. Customer PII will be properly secured in accordance with the SAWDB's policies and procedures regarding the safeguarding of PH; b. The collection, use, and disclosure of customer education records, and the PH contained therein, as defined under FERPA, shall comply with FERPA and applicable State privacy laws; c. All confidential data contained in Unemployment Insurance wage records must be protected in accordance with the requirements set forth in 20 CFR part 603; d. All personal information contained in Vocational Rehabilitation records must be protected in accordance with the requirements set forth in 34 CFR 361.38; e. Customer data may be shared with other programs, for those programs' purposes, within the AJCC network only after the informed written consent of the individual has been obtained, where required; f. Customer data will be kept confidential, consistent with Federal and State privacy laws and regulations; and, . g. All data exchange activity will be conducted in machine readable format, such as HTML or PDF, for example, and in compliance with Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794 (d)). 14) CONFIDENTIALITY All parties expressly agree to. abide by all applicable Federal, State, and local laws and regulations regarding confidential information, including PII from educational records, such as but not limited to 20 CFR Part 603, 45 CFR Section 205.50, 20 USC 1232g and 34 CFR part 99, and 34 CFR 361.38, as well as any applicable State and local laws and regulations. 10 25J-42 EXHIBIT 1B Each party will ensure that the collection and use of any information, systems, or records that contain PH and other personal or confidential information will be limited to purposes that support the programs and activities described in this MOU and will comply with applicable. law. Each party will ensure that access to software systems and files under its control that contain PH or other personal or confidential information will be limited to authorized staff members who are assigned responsibilities in support of the service's and activities described herein and will comply with applicable law. Each party expressly agrees to take measures to ensure that no PII or other personal or confidential information is accessible by unauthorized individuals. To the extent that confidential, private, or otherwise protected information needs to be shared amongst the parties for the parties' performance of their obligations under this MOU, and to the extent that such sharing is permitted by applicable law, the appropriate data sharing agreements will be created and required confidentiality and ethical certifications will be signed by authorized individuals. With respect to confidential. unemployment insurance information, any such data sharing must comply with all of the requirements in 20 CFR Part 603, including but not limited to requirements for an agreement consistent with 20 CFR 603.10, payments of costs, and permissible disclosures. With respect to the use and disclosure of FERPA-protected customer education records and the PH contained therein, any such data sharing agreement must comply with all of the requirements set forth in 20 U.S.C. § 1232g and 34 CFR Part 99. With respect to the use and disclosure of personal information contained in VR records, any such data sharing agreement must comply with all of the requirements set forth in 34 CFR 361.38. 15) PRESS RELEASES AND COMMUNICATIONS All parties shall be consulted and notified prior to communicating with the press, television, radio or any other form of media regarding its duties or performance tinder this MOU. Participation of each party in press/media presentations will be determined by each party's public relations policies. The, parties agree to utilize the AJCC logo developed by the State of California and the SAWDB on buildings identified for AJCC usage when applicable. 16) ACCESSIBILITY Accessibility to the services provided by the AJCCs and all Partner agencies is essential to meeting the requirements and goals of the local AJCC network. Job seekers and businesses must be able to access all information relevant to them via visits to physical locations as well as in virtual spaces, regardless of gender, age, race, religion, national origin, disability, veteran's status, or on the basis of any other classification protected under state or federal law. 17) NON-DISCRIMINATION AND EQUAL OPPORTUNITY All parties to this MOU certify that they prohibit, and will continue to prohibit, discrimination, and they certify that no person, otherwise qualified, is denied employment, services, or other benefits on the basis of: (i) political or religious opinion or affiliation, marital status, sexual 11 25J-43 EXHIBIT I orientation, gender, gender identification and/or expression, race, color, creed, or national origin; (ii) sex or age, except when age or sex constitutes a bona fide occupational.qualification; or (iii) the physical or mental disability of a qualified individual with a disability. 18) GRIEVANCES AND COMPLAINTS PROCEDURE The AJCC Partner agrees to establish and maintain a procedure for grievance and complaints as outlined in WIOA. The process for handling grievances and complaints is applicable to customers and Partners, These procedures will allow the customer or entity filing the complaint to exhaust every administrative level in receiving a fair and complete hearing and resolution of their grievance. The Partner further agrees to communicate openly and directly to resolve any problems or disputes related to the provision of services in a cooperative manner and at the lowest level of intervention possible. All Partners agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or involves police authorities, 19) AMERICAN'S WITH DISABILITIES ACT AND AMENDMENTS COMPLIANCE The AJCC Partner agrees to ensure that the policies and procedures as well as the programs and services provided at the AJCC are in compliance with the .Americans with Disabilities Act ("ADA') and its amendments. Additionally, the SAWDB and the AJCC Partners will ensure that policies and procedures established by the SAWDB and the AJCC Partners are in compliance with the ADA. 20) HOLD HARMLESS/INDEMNIFICATION/LIABILITY In accordance with provisions of Section 895.4 of the California Government Code, each signatory hereby agrees to indemnify, defend and hold harmless all other signatories identified in this MOU from and against any and all claims, demands, damages and costs arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. In addition, except for Departments of the State of California which cannot provide for indemnification of court costs and attorney's fees under the indemnification policy of the State of California, all signatories to this MOU agree to indemnify, defend and hold harmless each other from and against all court costs and attorney's fees arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. It is understood and agreed that all indemnity provided herein shall survive the termination of this MOU. 21) SEVERABILITY If any part of this MOU is found to be null and void or is otherwise stricken, the rest. of this MOU shall remain in force. 22) DRUG AND ALCOHOL -FREE WORKPLACE All parties to this MOU certify they will comply with the Drug -Free Workplace Act of 1988, 41 U.S.C. 702 et seq., and 2 CFR part 182 which require that all organizations receiving grants from any Federal agency maintain a drug -free workplace. The recipient must notify the awarding office if an employee of the recipient is convicted of violating a criminal drug statute. Failure to comply 12 25J-44 EXHIBIT 1B with these requirements may be cause for suspension or debarment under 2 CFR part 180, as adopted by the U.S. Department of Education at 2 CFR 3485, and the U.S. Department of Labor regulations at 29 CFR part 94. 23) CERTIFICATION REGARDING LOBBYING All parties shall comply with the Byrd Anti -Lobbying Amendment (31 U.S.C. Section1352), 29 C.F.R. Part 93, and 34 CFR part 82, as well as the requirements in the Uniform Guidance at 2 CFR 200.450. The parties shall not lobby federal entities using federal funds and will disclose lobbying activities as required by law and regulations. 24) DEBARMENT AND SUSPENSION All parties shall comply with the debarment and suspension requirements (E.0.12549 and12689) and 2 CFR part 180 and as adopted by the U.S. Department of Labor at 29 CFR part 2998 and by the U.S. Department of Education at 2 CFR 3485. 25) PRIORITY OF SERVICE All parties certify that they will adhere to all statutes, regulations, policies, and plans regarding priority of service, including, but not limited to, priority of service for veterans and their eligible spouses, and priority of service for the WIOA title I Adult program, as required by 38 U.S.C, sec. 4215 and its implementing regulations and guidance, and WIOA sec. 134(c)(3)(E) and its implementing regulations and guidance. Partners will target recruitment of special populations that receive a focus for services under WIOA, such as individuals with disabilities, low-income individuals, basic skills deficient youth, and English language learners, as applicable. . 26) BUY AMERICAN PROVISION Each party that receives funds made available under title I or II of WIOA or under the Wagner- Peyser Act (29 U.S.C. Section 49, et. seq.) certifies that it will comply with Sections 8301 through 8303 of title 41 of the United States Code (commonly known as the `Buy American Act.") and as referenced in WIOA Section 502 and 20 CFR 683.200(f). 27) SALARY COMPENSATION AND BONUS LIMITATIONS Each party certifies that, when operating grants funded by the U.S. Department of Labor, it complies with TEGL 05-06, Implementing the Salary and Bonus Limitations in Public Law 109- 234, TEGL 17-15, Public Laws 114-113 (Division H, title I, Section 105) and 114-223, and WIOA section 194(15)(A), restricting the use of federal grant funds for compensation and bonuses of an individual, whether charged to either direct or indirect, at a rate in excess of the Federal Office of Personnel Management Executive Level II. 28) TERMINATION This MOU will remain in effect until the end date specified in section 4 above, unless: a. Federal oversight agencies charged with the administration of WIOA are unable to appropriate funds or if funds are not otherwise made available for continued performance 13 25J-45 EXHIBIT 1 B for any fiscal period of this MOU succeeding the first fiscal period. Any party unable to perform pursuant to MOU due to lack of funding shall notify the other parties as soon as the party has knowledge that funds may be unavailable for the continuation of activities under this MOU; b. WIOA is repealed or superseded by subsequent federal law; c. Local. area designation is changed under WIOA; and, d. A party breaches any provision of this MOU and such breach is not cured within thirty (30) days after receiving written notice from the SAWDB Chair (or designee) specifying such breach in reasonable detail. In such event, the non -breaching party(s) shall have the right to terminate this MOU by giving written notice thereof to the party in breach, upon which termination will go into effect immediately. In the event of termination, the parties to the MOU must convene within thirty (30) calendar days after the breach of the MOU to discuss the formation of the successor MOU. At that time, allocated costs must be addressed, This MOU is of no force or effect until signed by authorized representatives of the participating parties, and approved by the Chief Local Elected Official or his/her designee. The MOU, once signed, becomes part of the local WIOA Plan. Any party may withdraw from this MOU by giving written notice of intent to withdraw at least thirty (30) calendar days in advance of the effective withdrawal date. If agreed to by all parties, the timeframes for notice maybe reduced.or extended. Notice of withdrawal shall be given to the SAWDB at the address listed in the signed attachments of this MOU, and to the contact person so listed, considering any information updates received by the parties, a courtesy notification shall be made to all parties of this MOU in a timely manner. 29) NOTICES All notices, requests, claims, correspondence, reports, statements authorized or required by this Agreement, and/or other communications shall be addressed as follows: City of Santa Ana: City of Santa Ana Administration Services 801 W. Civic Center Dr., Suite 200 Santa Ana, CA 92701 Rancho Santiago Community College District: Peter J. Hardash, Vice Chancellor Business Operations/Fiscal Services 2323 N. Broadway Avenue Santa Ana, CA 92706 30) INSURANCE The AJCC Partners agree that their current in force insurance or self-insurance coverage programs shall apply to. their operations performed under the Workforce Innovation Opportunity Act, including commercial general liability, property damage liability, business personal property, workers' compensation and employee dishonesty/crime coverages. The City of Santa Ana shall 14. 25J-46 EXHIBIT 1B be named as additional insured for such insurance and the coverage shall be primary and non- contributory with regard to the City. 31) AUTHORITY AND SIGNATURES The individuals signing this MOU and its attachments, which are incorporated herein by reference, have the authority to commit the party they represent to the terms of this MOU, and do so commit by signing. ATTACHMENTS Attachment 1: AJCC Partners Location and Map Attachment 2: Santa Ana AJCC Partner Services Attachment 3: Applicable Career Services Attachment 4: Comprehensive Cost Allocation and Partner Contributions THIS MEMORANDUM OF UNDERSTANDING is hereby signed and agreed to on the date first written above. FOR THE CITY OF SANTA ANA Attest: Daisy Gomez, Clerk of the Council Recommended for Approval: Steven A. Mendoza, Executive Director Community Development Agency City of Santa Ana: Kristine Ridge, City Manager Form: io, City Attorney Assistant City Attorney 15 25J-47 EXHIBIT 1B FOR AMERICA'S JOB CENTER OF CALIFORNIA PARTNER Rancho Santiago Community College District AJCC Partner Peter J. Hardash, Vice Chancellor Business Operations/Fiscal Services 2323 N. Broadway Avenue, Santa Ana, CA 92706 Partner Address Date Date IV 25J-48 EXHIBIT 1B Attachment 1 AJCC Partners Location and Map Partner Program Partner Organization Authorization/Category Physically Co -Located . Title I Adult, Dislocated City of Santa Ana WIOA Title I Adult Dislocated Workers Workers and Youth Youth Programs Yes programs Rancho Santiago WIOA title II Adult Education and Family Community College Literacy Act (AEFLA) program Adult Education/ Literacy District Career and technical education (CTE) and Carl Perkins Career programs at the postsecondary level, No Technical Education authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seg.) Employment WIOA title III Wagner-Peyser Employment Wagner-Peyser Development Services, authorized under the Wagner-Peyser Yes Department (EDD) Act (29 U.S.C. 49 et seq.), also providing the state's public labor exchange.' Employment Jobs for Veterans State Grants (JVSG) Veterans Development authorized under chapter 41 of title 38,�U.S.C. Yes Department DD Employment Trade Adjustment Assistance (TAA), Trade Act Development authorized under chapter 2 of title II of the Yes Department EDD Trade Act of 1974 19 U.S.C. 227let seg.) Unemployment Insurance Employment Unemployment Insurance (UI) programs under (UI) Development state unemployment compensation laws. No De artment(EDD) State Department of WIOA title IV State Vocational Rehabilitation Vocational Rehabilitation Rehabilitation program authorized under title I of the Yes Services Rehabilitation Act of 1973 (29 U.S.C. 720 et seg.) Temporary Assistance for Social Service Agency- Temporary Assistance for Needy Families Needy Families (TANF) Family Self -Sufficiency (TANF), authorized under part A of title IV of Yes the Social Security Act 42 U.S.C. 601 et seg.) Senior Aid Program Senior Community Service Employment Senior Aid Program Regions 11 & III Program (SCSEP) authorized under title V of Yes SER-Jobs for Progress, the Older Americans Act of 1965 (42 U.S.C. Inc. 3056 et seg.) Job Corps Long Beach Job Corps WIOA Title I C, Jobs Corps No Native American Programs Southern California Indian and Native American Programs (Section No •Indian Center 166) Housing & Urban Santa Ana Housing Housing & Urban Development (HUD) Yes Development Authority Housing Choice Voucher (HCV) Orange County Housing Homeownership OC Homeownership option. The homeownership Yes Authority option allows first-time homeowners. to receive assistance with homeownership expenses. Community Services Block Community Action Employment and training activities carried out Grant Partnership of Orange under.the Community Services Block Grant No County Act CSBG 42 U.S.C. 9901 et seq.) 25J-49 EXHIBIT 1B Santa Ana WORK Center America's Job Center of California Partners r. 1 Santa Ana WORK Center 7� Amedca'slob CenterofCalifornia 801 W. Civic Center Dr, 9200 Santa Ana, CA 92701 Collocated Partners: Employment Development Department State Department of Rehabilitation O.C. Social Services Agency SERISenlor Aid Program Santa Ana Housing Homeownership L. Centennial Adult Education 2900W. Edinger Ave. Santa Ana, CA 92704 Santa Ana College 1530W. 17th SL Santa Ana, CA 92706 College & Worldorce ®Preperation Center 1572 N. Main St. Orange, CA 92867 PL. a AV. N Long Beach lob Corps 1903 Santa Fe Ave. Long Beach, CA 90810 Community Action ©Partnership of O.C. 1601 W.2nd St. Santa Ana, CA 92703 Southern California OIndian Center 10175 Slater Ave, 4150 Fountain Valley, CA 92708 EXHIBIT 1B N G d E t V A a aNi V c t a C.) C1 a Z a a fA m Z' v O a a of a a m O AY �• H m 0] m m r 0 m ri 00 00 uj z n OL6 r OO (h �O t0 L t0 c. v v' a, -IFv " c a E ni m m cf M W N N N N N m N ri ri ri ti 00 I H W o0 r N y n m M cp w n O1 .m Ln � W N ri Fui a v ^ to v m N 00 Ln a o: O cr1 Oi Ir1 00 ni N M m .m 0 a ri rl rl ❑ N 00 ~ rti ri ri W yj E �- m a v Q ~ N to n c o u � � N O O n O 00 ri 1-1 � i ri r I ^ ti ri N h Ln ^ r Cil Ol N 01 p lA r-I O ei N io H t0 00 00 W �f Ori lA L -;e Lr n N W N 00 rri n ri a N a cri n ni N v m w a m d ri N N re N m N ri N N to O0 Mf N al ~ r eti'�-i ri r-I ri ri ri c-I r'I N ti N W r N C C C C O C E E E E a °E E m o_ o_ o_ o c v N>❑❑>❑>❑ o C Z N U_ W m 'C m C 00 _ (U ❑ m ❑ w ❑ 01 ❑ (U m _ W b0 N U m o ❑�❑`L ❑�❑� c 3 m o U o=_ O o C V YL...Y G Y C Y C Y y L O V Vi Y L V 1 L N> °n' ^¢ Qoo w w > E E E d= w w E E E,`o o o u am am Qm —oa W m L m> 'u E u c E 'c m mm c YY 3 c W❑ W❑ W❑ m o LN J U C U LLE1 ❑ V w {/OI li D: U K LL VOl U 2 C lu O Q v 3 c c G E m E wL+ 3 �° > v m a V w c m, �.. oo o :: Q E ° _ r o > w ar 'O o u :n a ar C L C O Ol v1 m Y C m L a0. m E Q C m U m m N 0 a. ~ m E K h ar .` v > C m a 3 a c Y, u o 10 C c v N 'W^O E ri 06 E C Q Cm Cl. �. C O �' Q C to Cl Oo W aUcurE u >u vm a m v o a L c o > u w o _n o x❑ 25J-51 EXHIBIT 113 u m 'a. 2'� m Np01S� O a a N O 6 E W u c 2 c m � � F aJ m a u Z z Z � v¢i v `m u m 00 e N E to c a CO U Q 'C o a w uo `o �� to �z Y E'c O 4 u am a cu ai c mE Z U O a c a c C .. a O ° E E c; ° x u° 0- U tl 40. to rn �y ,7�y bbAA O p .E a e� S� as qqq" y O yyy ° T •� a E O CZ D+ E.' ❑ y� O fO� N ' O - m tea. coj owe° li tl o N 5�en .0� apeaa°gi�5a� ar tp� .� Ow .°j' O •��+ V� g 77 W y - ri q %Wap M 00,.1, FiU.n•j 50 5 o 0 v `�r°�ao o•p� Lpi•° 5 GTa w° u{o? P, •S. m a ,mq •� P .E �`!yr 3 a3 u T q b ii3 0 5 o A 8�� � �� y a�° ffi O U A �O p p U 8.0 m Y O FL E Oi o -49 a a g o rn toU°o U 5a�o� wwoo�gGw .c•oa � a a .d o v v m U �i W U 25J-52 5, EXHIBIT 1B N u A a 13 i W n to w0 U. 4 m 25J-53 EXHIBIT 1B P o � o O U N Iy W y n b U p " U t'� 'a q o a G O "tgq,C U y^ •r"' "N� V 3 U d a a ed U ° `n a� d m o n W a U •5 y � •5 � U � y o � U cc A s .�n +a .9 oa s 25J-54 M F V' M EXHIBIT 1B N C G! E m V W 0 W G '•V N f/1 P I I W) 25J `5 EXHIBIT 1B N C d E s m b U 7.. w a.� 4 ° > a a n ^ N N a N PL4 d �waFcwa,oz 0-1 25J-56 EXHIBIT 1B Attachment 3 APPLICABLE CAREER SERVICES Sharing Other One -Stop Delivery System Costs . The budget must include "applicable career services" as well as any other shared costs agreed Upon by the AJCC partners. While only co -located partners share infrastructure costs, all One -Stop partners must share in other system costs, including applicable career services. Required Consolidated System Budget for "Applicable Career Services" Summary of Career Services Applicable to Each AJCC Partner The MOU requires identification of the career services that are applicable to each partner program (Attachment 2). Accordingly, this budget includes each of the partner's costs for the service delivery of each applicable career service. Unlike infrastructure cost sharing, other system costs, including "Applicable Career Services" are not limited to the non -personnel costs and should include all costs related to the administration and delivery of those services. AJCC Applicable Career Services RSCCD Career Services: $283,089,95 • Eligibility Determination (1) • Outreach, Intake and Orientation (2) • Initial Assessment (3) • Job Search, Placement Assistance, and Career Counseling (4) • Employment Statistics -Labor Market Information (5) • Eligible Provider performance and program Cost Information (6) • Local Performance Information (7) • Supportive Services' Information (8) • Unemployment Compensation (9) • Eligibility Assistance (10) • Follow -Up Services (11) • Comprehensive and Specialized Assessments (12) • Individual Employment Plan Development (13) • Group Counseling (14) • Individual Counseling and Career Planning (15) • Case Management (16) • Short -Term Prevocational Services (17) Training $1,228,101.75 • Occupational Skills Training (1) • On -the -Job Training (OJT) (2) • Workplace and cooperative education (3) • Training programs operated by the private sector (4) • Skills upgrading and retraining (5) • Entrepreneurial training (6) • Job -readiness training (7) • Adult Education and Literacy programs (8) •' Customized training (9) 25J-57 EXHIBIT I Attachment 3 APPLICABLE CAREER SERVICES Employer Services $ 0 • Employer needs assessment (1) • Job posting (2) • Applicant pre-screening (3) • Recruitment assistance (4) • Training assistance (5) • Labor Market Information (6) • Employer information and referral (7) • Rapid Response and Layoff Aversion (8) Total Career Service Cost $1,511,191.70 25J-58 EXHIBIT 1B Attachment 4 Comprehensive Cost Ailocat+'ron amd Partner wntribution . 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Do0%._ $aFy, ,-:R'S.L $'6x ,,. •r:' I$-'o, ,�^.n225p90.gU'.19321.M 100.W% $ 42,50610 S 676.40 $ 7.591.48 $ SD,774.08sS &.565,105.06 Revised 7118119 522:42 PM • Met hSL20per Square fmt Nth]%Steeese a me0y •e7ead7 Carter SIMme la reportedhyeaspe lt. Parente. fisted and mayMduM hul beat WNad topartnenpayrap, a8antbalnln8 eapemua, dlenlsankOeepen4a, Cl t SER Is paying 1gS7.M for 7 4uNda.for 3..the 25J-59 25J-60 EXHIBIT 1C Memorandum of Understanding For Santa Ana Workforce Development Board and the Southern California Indian Center 25J-61 EXHIBIT 1C MEMORANDUM OF UNDERSTANDING 1) LEGAL AUTHORITY The Workforce Innovation and Opportunity Act ("WIOA") sec. 121(c)(1) requires that each Local Workforce Development Area develop and enter into a Memorandum of Understanding ( "MOU") with each America's Job Center of California ("AJCC") Partner, consistent with WIOA Sec, 121(c)(2).' This requirement is further described in the WIOA; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the AJCC System Joint Provisions: Final Rule at 20 CFR 678.500, 34 CFR 361.500, and 34 CFR 463.500, and in Federal guidance. 2) PARTIES The parties to this MOU are the City Council of the City'of Santa Ana, the Santa Ana Workforce Development Board ("SAWDB"), and the Southern California Indian Center, a non -collocated one -stop AJCC Partner. 3) PURPOSE The purpose of the MOU is consistent with the provisions of WIOA sec. 121(c)(1), to establish a cooperative working relationship between the SAWDB and the Southern California Indian Center, the non -collocated AJCC Partner, and to define their respective roles and responsibilities concerning the operation of the AJCC as it relates to shared services and customers. It serves to establish the framework for providing services to employers, employees, job seekers and others needing workforce services. It also serves to establish a framework to support the established service delivery through the sharing of resources and costs. It is expressly understood that this MOU does not constitute a.binding financial commitment, but rather an intent to commit specific resources in the future as the parties' allocations and budgets are known and the America's Job Center of California system evolves. 4) DURATION This MOU shall _become effective as of the date of full execution of the MOU by all Parties ("Effective Date") and terminate June 30, 2022. This MOU will be reviewed not less than once every three years to ensure appropriate funding and delivery of services and to identify any substantial changes that require modification of this MOU. This MOU will remain in effect until the termination date, unless one of the conditions in section 32 occurs. 5) MODIFICATIONS AND REVISIONS This MOU and its Attachments 1, 2, 3, and 4, constitute the entire agreement between the parties, and no oral understanding not incorporated herein shall be binding on any of the parties hereto. This MOU may be modified, altered, or revised, as necessary, by mutual consent of the parties, by the issuance of a written amendment, signed and dated by the parties, which may require approval by the governing body of each Party. Assignment of responsibilities under this MOU by any of 25J-62 EXHIBIT 1C the parties shall require prior written notice and preapproval of all parties. Any assignee shall also commit in writing to the terms of this MOU. 6) SANTA ANA WORKFORCE DEVELOPMENT STRATEGIES Santa Ana's vision rests on integrating current and future resources through its SAWDB Partners. Integration suggests more than partnering or assembling multiple funding sources. It means making certain that all elements of the workforce support system work together to create inviting and seamless services wherever a client enters the system. Santa Ana's vision is sensitive to the needs of its unique demographics: The SAWDB's overall strategies include: a) Identifying regional industry clusters (e.g., manufacturing cluster, medical cluster, etc.) to create new jobs in which Santa Ana's workforce can participate; b) Expanding small business development support as a creator of new jobs and method for growing the local tax base, c) Educating Santa Ana's current and future workforce through classroom pre -training and training activities, plus on-the-job training and workforce skill enhancement activities; d) Offering career pathway programs for both unemployed and employed adults and youth; e) Increasing access to jobs for disconnected and underserved populations, especially youth; f) Organizing, integrating and supporting social and other services through the SAWDB's network of partnerships, volunteer organizations, and established institutional resources; and, g). Assuring funding from all public, private, and other sources in support of its programs. 7) ONE -STOP SYSTEM & SERVICES A. LOCATION The AJCC is currently located in Santa Ana as follows: American Job Center.(Comprehensive AJCC) Santa Ana WORK CENTER 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 (714)565-2600 Open to the Public: Moriday — Friday 8:00 am-5:00 pm The AJCC is currently located at the Santa Ana WORK Center ("SAWC") as described in the Location of AJCC and all Partners, attached herein as Attachment 1 and incorporated herein by reference. Santa Ana ranks as the fourth densest city in the entire nation. SAWC, through its central location in downtown Santa Ana, shall provide and/or coordinate WIOA services to. individuals, providing them with the necessary skills to participate in building a world -class workforce in Santa Ana. The SAWC offers the community a variety of informational, employment and training services based on individual needs, Those needs are met by the combined efforts of the SAWC Partners as described by the S anta Ana AJCC Partner Services, included herein as Attachment 2 and incorporated herein by reference. 25J-63 EXHIBIT 1C B. SERVICES PROVIDED AT THE SANTA ANA WORK CENTER Services and referrals provided at the SAWC by AJCC Partners may include, but are not limited to, the following: 1. Basic Career Services: a. Eligibility determination; b. Outreach, intake, and orientation to information and services; c. Initial assessment of skill levels, including: literacy, numeracy, and English proficiency; and, aptitudes, abilities, and support service needs; d. Labor exchange services, including: i. Job vacancy listings in labor market areas; ii. Information on job skills needed to obtain the vacant jobs; and, iii. Information relating to in -demand occupations, including earnings and opportunities for advancement; e. Provision of performance and program cost information on the Eligible Training Provider List (' BTPL') eligible programs by program and type of provider f. Provision of information in acceptable formats and languages that identify actual performance against performance accountability measures g. Provision of information related to support services h. Provision of information and assistance in filing Unemployment Insurance claims; and, i. Assistance in establishing eligibility_ for programs of financial. aid assistance for training and education programs not funded through WIOA. 2. Individualized Career Services: a. Comprehensive and specialized assessment of skill levels and service needs including: Diagnostic testing; and, other assessment tools; b. In-depth interview and evaluation to determine barriers and goals; c. Development of Individual Employment Plan (IEP) to identify goals, objectives, and services; d. Group counseling; e. Individual counseling; £ Career planning; g. Short-term pre -vocational services, including: development of learning "skills; communication skills; and, other soft skills to prepare individuals for employment or training; h. Workforce preparation activities, including: basic academic; and, obtaining other skills necessary for successful transition into postsecondary education, training or employment; i. Financial literacy services; and, j. Out -of -area job search assistance and relocation assistance. 3. Training Services: a. Occupational skills training; b. On -the -Job training; c. Incumbent worker training; 4 25J-64 EXHIBIT 1C d. Programs that combine workplace training with related instruction, which may include cooperative education programs; e. Training programs operated by the private sector; f. Skill upgrading and retraining; g. Entrepreneurial training programs; h. Transitional jobs; i. Job readiness training provided in combination with any of the aforementioned training Services; j. Adult education and literacy activities, including: activities of English language acquisition; and, integrated education and training programs provided concurrently or in combination with any of the aforementioned training services; k. Customized training; 1. Internships and work experiences that are linked to careers; and, m. English language acquisition and integrated education and training program. 4. Employer Services: a. Recruitment and other business services on behalf of employers. C. SYSTEM STRUCTURE 1. AJCC ONE -STOP OPERATOR PROCUREMENT The SAWDB will procure the AJCC Operator through a competitive process in accordance with the Uniform Guidance Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200 (Uniform Guidance), including the Office of Management and Budget's (OMB) approved exceptions for the U.S. Department of Labor at 2 CFR part 2900, WIOA and its implementing regulations, and local procurement laws and regulations. All documentation for the competitive AJCC operator procurement will be available for public inspection. The State requires that the AJCC operator is re -competed at least every three years and no later than every four years. 2. ROLES AND RESPONSIBILITIES OF PARTIES a. Provision of Applicable Career Services and Participation in Planning and Development. - The parties to this MOU will work closely together to ensure that the AJCC is a high - performing work place with staff that ensure quality of service. The AJCC Partner has indicated they shall provide an array of applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The AJCC Partner agrees to the responsibilities required of all Partners under WIOA Section 121(b). In addition, the AJCC Partners will participate in joint planning, plan development, and modification of activities to accomplish the following: i. Continuous partnership building; ii. Continuous planning in response to state and federal requirements; and, iii. Responsiveness to local and economic conditions, including employer needs. 25J-65 EXHIBIT 1C Parties agree to'the co -enrollment of mutual customers in case management to better leverage the resources available for the benefit of the participant and enhance successful outcomes and participate in the operation of the one -stop system consistent with the terms of the MOU and requirements of authorized laws. Both parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or behavior that requires police intervention. Parties agree to collaborate and reasonably assist each other in the development of necessary service delivery protocols for the services outlined in this MOU. Parties agree that the provisions contained herein are made subject to all applicable federal and state laws, implementing regulations, and guidelines imposed on either or all the parties relating to privacy rights of customers, maintenance of records, and other confidential information relating to customers. Parties agree that all equipment and furniture purchased by anyparty for purposes described herein shall remain the property of the purchaser after the termination of this MOU. b. Parties shall comply with: i. Section 188 of the WIOA Nondiscrimination and Equal Opportunity Regulations (29 CFR Part 38; Final Rule, published December 2, 2016); ii. Title VI and VII of the Civil Rights Act of 1964 (Public Law 88-352), as amended; iii. Section 504. of the Rehabilitation Act of 1973, as amended; iv. The Americans with Disabilities Act of 1990, as amended; v. The Jobs for Veterans Act (Public Law 107-288) pertaining to priority of service in programs funded by the U.S. Department of Labor; vi. Training and Employment Guidance Letter. (TEGL) 37-14, Update on Complying with Nondiscrimination Requirements: Discrimination Based on Gender Identity, Gender Expression and Sex Stereotyping are Prohibited Forms of Sex Discrimination in the Workforce Development System and other guidance related to implementing WIOA sec. 188; vii. The Non-traditional Employment for Women Act of 1991; viii. The Age Discrimination Act of 1967, as amended; ix. The Age Discrimination Act of 1975, as amended; x. Title IX of the Education Amendments of 1972, as amended; xi. The Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. § 1232g; 34 CFR part 99); 25J-66 OWIMINI« xii. Title IX of the Education Amendments of 1972, as amended; xiii. Confidentiality requirements governing the protection and use of personal information held by the VR agency (34 CFR 361.38); xiv. - The confidentiality requirements governing the use of confidential information held by the State UI agency (20 CPR part 603); and, xv. All amendments to each, and all requirements imposed by the regulations issued pursuant to these acts. The Parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or activity that requires policy intervention. 8) AJCC PARTNER RESPONSIBILITIES Partner commits staff, as appropriate, and to providing other professional learning opportunities that promote continuous quality,improvement. Partner will further promote system integration to the maximum extent feasible through: a. . Effective communication, information sharing, and collaboration with the AJCC operator; b. Joint planning, policy development, and system design processes; c. Commitment to the.joint mission, vision, goals, strategies, and performance measures; d. The design and use of common intake, assessment, referral; and case management processes; ' e. The use of common and/or linked data management systems and data sharing methods, as appropriate; f. Leveraging of resources, including other public agency and non-profit organization services; g. Participation in a. continuous improvement process designed to boost outcomes and increase customer satisfaction; and h. Participation in regularly scheduled Partner meetings to exchangeinformation in support of the above and encourage program and staff integration. Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. 7 25J-67 EXHIBIT 1C 9) REFERRALS The primary principle of the referral system is to provide integrated and seamless delivery of services to workers, job seekers, and employers. In order to facilitate such a system, Partners will ensure and agree to: a. Familiarize themselves with the basic eligibility and participation requirements, as well as with the available services and benefits offered, for each of the Partners' programs represented in the AJCC network; b. Develop materials summarizing their program requirements and making them available for Partners and customers; c. Develop and utilize common intake, eligibility determination, assessment, and registration forms, as appropriate; d. Provide substantive referrals to customers who are eligible for supplemental and complementary services and benefits under Partner programs; e. Regularly evaluate ways to improve the referral process, including the use of customer satisfaction surveys; f. Commit to robust and ongoing communication required for an effective referral process; g. Commit to actively follow up on the results of referrals and assuring that Partner resources are being leveraged at an optimal level; h. Ensure that intake and referral processes are customer -centered with the intent to provide high quality customer service; i. Ensure that general information regarding AJCC programs, services, activities, and resources shall be made available to all customers as appropriate; j. Ensure that referrals will be made via email or other electronic means; k. Ensure that referrals will include a direct link or access to other AJCC Partner staff that can provide meaningful information or service, through the use of co -location, or real-time technology (two-way communication and interaction with AJCC Partners that results in services needed by the customer); and, 1. Ensure that the referral process will include specific staff name, the activity required, desired outcome and a method for communicating back to the referring agency that the service need was addressed. 10) AJCC OPERATING BUDGET The purpose of this section is to establish funds and services that contribute to the local AJCC. The parties consider this AJCC operating budget necessary to maintain the SAWDB's high- 25J-68 EXHIBIT 1C standard AJCC. It includes the following cost categories, as required by WIOA and its implementing regulations: a. SAWC Infrastructure costs;, b. Career services; and c. Shared services. 11) INFRASTRUCTURE FUNDING The AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget, included as part of Attachment 4 (Comprehensive Cost Allocation and Partner Contributions), is an integral component of the overall AJCC operating budget. The other component of the is the Applicable Career Services, attached herein as Attachment 3 and incorporated herein by reference, which includes the shared operating costs and shared services. The overall AJCC operating budget includes the Comprehensive Cost Allocation and Partner Contributions, attached herein as Attachment 4 and incorporated herein by reference. 12) AJCC DELIVERY SYSTEM COSTS It is expressly understood that this MOU does not constitute a binding financial commitment, but rather an intent to commit specific resources in the future as the parties' allocations and budgets are known and the America's Job Center of California system evolves. For those partners that will require a cost sharing agreement, cost will be based on proportionate use and agreed upon methodology as applicable. AJCC partners with shared costs will be reviewed yearly and may be modified as needed by any partner as long as it is identified as a revision, and it is signed and dated by the applicable parties. As required by WSD16-09, the amount of funds that the AJCC Partner has budgeted to expend on applicable career services and other shared services, which cumulatively with the other AJCC Partners budgeted amounts shall form the Comprehensive Cost Allocation and Partner Contributions. a. Career Services Applicable to the AJCC Partner The AJCC Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The agreed upon Applicable Career Services Budget is set forth in Attachment 3 attached hereto and incorporated herein by reference. This budget consists of the AJCC Partner's costs for the service delivery of each applicable career service they indicated in the Santa Ana AJCC Partner Services. b. Required Consolidated Budget for the Delivery of "Applicable Career Services" The other system costs budget must be a consolidated budget for applicable career services. This budget must include each of the Partner's costs for the service delivery of each applicable career service and a consolidated system budget for career services applicable to more than one Partner as indicated in the Comprehensive Cost Allocation and Partner Contributions. 25J-69 EXHIBIT 1C AJCC Partners understand that while only collocated Partners share infrastructure costs, at this time, all non -collocated AJCC Partners must share in other System costs through non -cash (in - kind) contributions as set forth herein. 13) DATA SHARING "Workforce Services Directive 16-23 from the Employment Development Department and the California Workforce Development Board, mandates the use of one integrated data system. Accordingly, all Title I Workforce Innovation and Opportunity Act (WIOA) recipients and sub - recipients are required to be direct entry into Ca1JOBS." Parties further agree that the collection, use, and disclosure of customers' personally identifiable information (PE) is subject to various requirements set forth in Federal and State privacy laws. Partners acknowledge that the execution of this MOU, by itself, does not function to satisfy all of these requirements. All data, including customer PII, collected, used, and disclosed by Partners will be subject to the following; a. Customer PII will be properly secured in accordance with the SAWDB's policies and procedures regarding the safeguarding of PII; b. The collection, use, and disclosure of customer education records, and the PH contained therein, as defined under FERPA, shall comply with FERPA and applicable State privacy laws; c. All confidential data contained in Unemployment Insurance wage records must be protected in accordance with the requirements set forth in 20 CFR part 603; d. All personal information contained in Vocational Rehabilitation records must be protected in accordance with the requirements set forth in 34 CFR 361.38; e. Customer data may be shared with other programs, for those programs' purposes, within the AJCC network only after the informed written consent of the individual has been obtained, where required; f. Customer data will be kept confidential, consistent with Federal and State privacy laws and regulations; and, g, All data exchange activity will be conducted in machine readable format, such as HTML or PDF, for example, and in compliance with Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794 (d)). 14) CONFIDENTIALITY All parties expressly agree to abide by all applicable Federal, State, and local laws and regulations regarding confidential information, including PH from educational records, such as but not limited it 25J-70 EXHIBIT 1C to 20 CFR Part 603, 45 CFR Section 205.50, 20 USC 1232g and 34 CFR part 99, and 34 CFR 361.38, as well as any applicable State and local laws and regulations. Each party will ensure that the collection and use of any information, systems, or records that contain PH and other personal or confidential information will be limited to purposes that support the programs and activities described in this MOU and will comply with applicable law. Each party will ensure that access to software systems and files under its control that contain PH or other personal or confidential. information will be limited to authorized staff members who are assigned responsibilities in support of the services and activities described herein and will comply with applicable law. Each party expressly agrees to take measures to ensure that no PII or other personal or confidential information is accessible by unauthorized individuals. To the extent that confidential, private, or otherwise protected information needs to be shared amongst the parties for the parties' performance of their obligations under this MOU, and to the extent that such sharing is permitted by applicable law, the appropriate data sharing agreements will be created and required confidentiality and ethical certifications will be signed by authorized individuals. With respect to confidential unemployment insurance information, any such data sharing must comply with all of the requirements in 20 CFR Part 603, including but not limited to requirements for an agreement consistent with 20 CFR 603.10, payments of costs, and permissible disclosures. With respect to the use and disclosure of FERPA-protected customer education records and the PH contained therein, any such data sharing agreement must comply with all of the requirements set forth in 20 U.S.C. § 1232g and 34 CFR Part 99. With respect to the use and disclosure of personal information contained in VR records, any such data sharing agreement must comply with all of the requirements set forth in 34 CFR 361.38. 15) PRESS RELEASES AND COMMUNICATIONS All parties shall be consulted and notified prior to communicating with the press, television, radio or any other form of media regarding its duties or performance under this MOU. Participation of each party in presstmedia presentations will be determined by each party's public relations policies. The parties agree to utilize the AJCC logo developed by the State of California and the SAWDB on buildings identified for AJCC usage when applicable. 16) ACCESSIBILITY Accessibility to the services provided by the AJCCs and all Partner agencies is essential to meeting the requirements and goals of the local AJCC network. Job seekers and businesses must be able to access all information relevant to them via visits to physical locations as well as in virtual spaces, regardless of gender, age, race, religion, national origin, disability, veteran's status, or on the basis of any other classification protected under state or federal law. 17) NON-DISCRINIINATION AND EQUAL OPPORTUNITY 11 25J-71 EXHIBIT I All parties to this MOU certify that they prohibit, and will continue to prohibit, discrimination, and they certify that no person, otherwise qualified, is denied employment, services, or other benefits on the basis of, (i) political or religious opinion or affiliation, marital status, sexual orientation, gender, gender identification and/or expression, race, color, creed, or national origin; (ii) sex or age, except when age or sex constitutes a bona fide occupational qualification; or (iii) the physical or mental disability of a qualified individual with a disability. 18) GRIEVANCES AND COMPLAINTS PROCEDURE The AJCC Partner agrees to establish and maintain a procedure for grievance and complaints as outlined in WIOA. The process for handling grievances and complaints is applicable to customers and Partners. These procedures will allow the customer or entity filing the complaint to exhaust every administrative level in receiving a fair and complete hearing and resolution of their grievance. The Partner further agrees to communicate openly and directly to resolve any problems or disputes related to the provision of services in a cooperative manner and at the lowest level of intervention possible. All Partners agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or involves police authorities. 19) AMERICAN'S WITH DISABILITIES ACT AND AMENDMENTS COMPLIANCE The AJCC Partner agrees to ensure that the policies and procedures as well as the programs and services provided at the AJCC are in compliance with the Americans with Disabilities Act ("ADA") and its amendments. Additionally, the SAWDB and the AJCC Partners will ensure that policies and procedures established by the SAWDB and the AJCC Partners are in compliance with the ADA. 20) HOLD HARMLESS/INDEMNIFICATION/LIABILITY In accordance with provisions of Section 895A of the California Government Code,.each signatory hereby agrees to indemnify, defend and hold harmless all other signatories identified in this MOU from and against any and all claims, demands, damages and costs arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. In addition, except for Departments of the State of California which cannot provide for indemnification of court costs and attorney's fees under the indemnification policy of the State of California, all signatories to this MOU agree to indemnify, defend and hold harmless each other from and against all court costs and attorney's fees arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. It is understood and agreed that all indemnity provided herein shall survive the termination of this MOU. 21) SEVERABILITY If any part of this MOU is found to be null and void or is otherwise stricken, the rest of this MOU shall remain in force, 22) DRUG AND ALCOHOL -FREE WORKPLACE 12 25J-72 EXHIBIT 1C All parties to this MOU certify they will comply with the Drug -Free Workplace Act of 1988, 41 U.S.C. 702 et seq., and 2 CFR part 182 which require that all organizations receiving grants from any Federal agency maintain a drag -free workplace. The recipient must notify the awarding office' if an employee of the recipient is convicted of violating a criminal drug statute. Failure to comply with these requirements may be cause for suspension or debarment under 2 CFR part 180, as adopted by the U.S. Department of Education at 2 CFR 3485, and the U.S. Department of Labor regulations at 29 CFR part 94. 23) CERTIFICATION REGARDING LOBBYING All parties shall comply with the Byrd Anti -Lobbying Amendment (31 U.S.C. Sectionl352), 29 C.F.R. Part 93, and 34 CFR part 82, as well as'the requirements in the Uniform Guidance at 2 CFR 200.450. The parties shall not lobby federal entities using federal funds and will disclose lobbying activities as required by law and regulations. 24) DEBARMENT AND SUSPENSION All parties shall comply with the debarment and suspension requirements (E.0.12549 andl2689) and 2 CFR part 180 and as adopted by the U.S. Department of Labor at 29 CFR part 2998 and by the U.S. Department of Education at 2 CFR 3485. 25) PRIORITY OF SERVICE All parties certify that they will adhere to all statutes, regulations, policies, and plans regarding priority of service, including, but not limited to, priority of service. for veterans and their eligible spouses, and priority of service for the WIOA title I Adult program, as required by 38 U.S.C. sec. 4215 and its implementing regulations and guidance, and WIOA sec. 134(c)(3)(E) and its implementing regulations and guidance. Partners will target recruitment of special populations that receive a focus for services under WIOA, such as individuals with disabilities, low-income individuals, basic skills deficient youth, and English language learners, as applicable. 26) BUY AMERICAN PROVISION Each party that receives funds made available under title I or II of WIOA or under the Wagner- Peyser Act (29 U.S.C. Section 49, et. seq.) certifies that it will comply with Sections 8301 through 8303 of title 41 of the United States Code (commonly known as the `Buy American Act.") and as referenced in WIOA Section 502 and 20 CFR 683.200(fl. 27) SALARY COMPENSATION AND BONUS LIMITATIONS Each party certifies that, when operating grants funded by the U.S. Department of Labor, it complies with TEGL 05-06, Implementing the Salary and Bonus Limitations in Public Law 109- 234, TEGL 17-15, Public Laws 114-113 (Division H, title I, Section 105) and 114-223, and WIOA section 194(15)(A), restricting the use of federal grant funds for compensation and bonuses of an individual, whether charged to either direct or indirect, at a rate in excess of the Federal Office of Personnel Management Executive Level 11. 13 25J-73 EXHIBIT 1C 28) TERMINATION This MOU will remain in effect until the end date specified in section 4 above, unless: a.Federal oversight agencies charged with the administration of WIOA are unable to appropriate funds or if funds are not otherwise made available for continued performance for any fiscal period of this MOU succeeding the first fiscal period. Any party unable to perform pursuant to MOU due to lack of funding shall notify the other parties as soon as the party has knowledge that funds may be unavailable for the continuation of activities under this MOU; b. WIOA is repealed or superseded by subsequent federal law; c. Local area designation is changed under WIOA; and, d. A party breaches any provision of this MOU and such breach is not cured within thirty (30) days after receiving written notice from the SAWDB Chair (or designee) specifying such breach in reasonable detail. In such event, the non -breaching party(s) shall have the right to terminate this MOU by giving written notice thereof to the party in breach, upon which termination will go into effect immediately. Iri the event of termination, the parties to the MOU must convene within thirty (30) calendar days after the breach of the MOU to discuss the formation of the successor MOU. At that time, allocated costs must be addressed. This MOU is of no force or effect until signed by authorized representatives of the participating parties, and approved by the Chief Local Elected Official or his/her designee. The MOU, once signed, becomes part of the local WIOA Plan: Any party may withdraw from this MOU by giving written notice of intent to withdraw at least thirty (30) calendar days in advance of the effective withdrawal date. If agreed to by all parties, the timeframes for notice maybe reduced. or extended. Notice of withdrawal shall be given to the SAWDB at the address listed in the signed attachments of this MOU, and to the contact person so listed, considering any information updates received by the parties, a courtesy notification shall be made to all parties of this MOU in a timely manner. 29) NOTICES All notices, requests, claims, correspondence, reports, statements authorized or required by this Agreement, and/or other communications shall be addressed as follows: City of Santa Ana: City of Santa Ana Administration Services 801 W. Civic Center Dr., Suite 200 Santa Ana, CA 92701 NON -COLLOCATED PARTNER: Southern California Indian Center, Inc. 10175 Slater Ave. Ste. 150 Fountain Valley, CA 92708 14 25J-74 EXHIBIT 1C 30) INSURANCE The AJCC Partners agree that their current in force insurance or self-insurance coverage programs shall apply to their operations performed under the Workforce Innovation Opportunity Act, including commercial general liability, property damage liability, business personal property, workers' compensation and employee dishonesty/crime coverages. The City of Santa Ana shall be named as additional insured for such insurance and the coverage shall be primary and non- contributory with regard to the City. 31) AUTHORITY AND SIGNATURES The individuals signing this MOU and its attachments, which are incorporated herein by reference, have the authority to commit the party they represent to the terms of this MOU, and do so commit by signing. ATTACHMENTS Attachment 1: AJCC Partners Location and Map Attachment 2: Santa Ana AJCC Partner Services Attachment 3: Applicable Career Services Attachment 4: Comprehensive Cost Allocation and Partner Contributions THIS MEMORANDUM OF UNDERSTANDING is hereby signed and agreed to on the date first written above. FOR THE CITY OF SANTA ANA Attest: Daisy Gomez, Clerk of the Council Recommended for Approval: Steven A. Mendoza, Executive Director Community Development Agency City of Santa Ana: Kristine Ridge, City Manager to Form: alho, City Attorney A ANA WORKFORCE DEVELOPMENT BOARD Stacey Sanchez, Assistant City Attomey 15 25J-75 EXHIBIT 1C THIS MEMORANDUM OF UNDERSTANDING is hereby signed and agreed to on the date first written above. FOR THE CITY OF SANTA ANA Attest: Recommended for Approval: Steven A. Mendoza, Executive Director Community Development Agency City of Santa Ana: Kristine Ridge, City Manager Approved as to Form: Sonia R. Carvalho, City Attorney Ryan O. Hodge, Assistant City. Attorney FOR SANTA ANA WORKFORCE DEVELOPMENT BOARD Stacey Sanchez, Chair FOR AMERICA'S JOB CENTER OF CALIFORNIA PARTNER Southern California Indian Center AJCC Partner imerf'el, Executive 144rcf for zz /� bate 16 25J-76 EXHIBUTall9nent 1 AJCC Partners Location and Map Partner Program Partner Organization Authorization/Category Physically Co -Located Title I Adult, Dislocated City of Santa Ana WIOA Title I Adult Dislocated Workers Workers and Youth Youth Programs Yes programs Rancho Santiago WIOA title II Adult Education and Family Community College Literacy Act (AEFLA) program Adult Education/ Literacy District Career and technical education (CTE) and Carl Perkins Career programs at the postsecondary level, No Technical Education authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) Wagner-Peyser Employment WIOA title III Wagner-Peyser Employment Development Services; authorized under the Wagner-Peyser Yes Department (EDD) Act (29 U.S.C. 49 et seq.), also providing the state's public labor exchange. Veterans Employment Development Jobs for Veterans State Grants (JVSG) yes authorized under chapter 41 of title 38, U.S.C. Department D Employment Trade Adjustment Assistance (TAA), Trade Act Development authorized under chapter 2 of title II of the yes Department D Trade Act of 1974 19 U.S.C. 2271ct s Unemployment Insurance Employment Unemployment Insurance (UI) programs under (i7I) Development state unemployment compensation laws. No De artment D State Department of WIOA title IV State Vocational Rehabilitation Vocational Rehabilitation Rehabilitation program authorized under title I of the yes Services Rehabilitation Act of 1973 (29 U.S.C. 720 et seg.) Temporary Assistance for stance(TANF Social Service Agency- Temporary Assistance for Needy Families Needy Families Family Self -Sufficiency (TANF), authorized under part A of title IV of Yes the Social Security Act 42 U.S.C. 601 et seg.) Senior Aid Program Senior Community Service Employment Senior Aid Program Regions II & III Program (SCSEP), authorized under title V of Yes SER-Jobs for Progress, the Older Americans Act of 1965 (42 U.S.C. Inc. 3056 et s Job Corps Long Beach Job Corps WIOA Title I C Jobs Corps No Native American Programs Southern California Indian and Native American Programs (Section No Indian Center 166 Housing & Urban Santa Ana Housing Housing & Urban Development (HUD) Yes Development Authority Housing Choice Voucher (HCV) Orange County Housing Homeownership OC Homeownership option. The homeownership Yes Authority option allows first-time homeowners to receive assistance with homeownership expenses. Community Services Block Community Action Employment and training activities carried out Grant Partnership of Orange under the Community Services Block Grant No County Act CSBG 42 U.S.C. 9901 et seg.) 25J-77 EXHIBIT 1C Santa Ana WORK Center America's Job Center of California Partners LA VETA AV. 0 12 WARNER AV.SEGERSTROMALTON AV.MACARTHUR VPLz BL. c@@ SUNFLOWER AV. 405 Santa Ana WORK Center Centennial Adult Education Long Beach lob Corps Americ6 lob Center of California 02900W. Edinger Ave. G 1903 Santa Fe Ave. 801 W. Civic Center Dr, 8200 Santa Ana, CA 92704 Long Beach, CA 90810 Santa Ana, CA 92701 Santa Ana College Community Action Collocated Partners: 3 Partnership of O.C. St.® Employment Development Department Santa Ana, CA 92706 1601 W. 2nd SL Sant An State Department of Rehabilitation Santa Ana, CA 92703 O.C. Social Services Agency College & Workforce Southern California SER/Senior Aid Program ® Preperation Center Indian Center Santa Ana Housing 1572 N. Main St. 10175 Slater Ave., 9150 Homeownership Orange, CA 92867 Fountain Valley, CA 92708 EXHIBIT 1 C M ar Z� O a a c a a 4,o 0)F h d ¢ d d d o F a m o ri a ri ri a a a a m a O CL m . cc 1= cd co v o trS to to td po mto a E v t» a m v tri a th c; - a' m W N N N N N 0D N rl 'i rl rf 00 'i w 00 l vi C G y u ' .a Ot ri cm a td r W N i~• � L ^ rl m L y N ao dr p rti r oo en a, N 00 ~ t-i rZ H w U F a U ~ k6rl N Q - L �. � C H e-I LK '-I N N � O Q 0, N ei a' tY1 Gl ti m u o o N .i o ti tb ri N N to ni o o ti m to .i o e-I to o ""�rq to N 00 d 00 u1 td vi 00 w Lr 0d �I `"� C y v v � , �,rl a N W N W a v m v Kin m N v H v H N cri N rri o N Ki N Ol ti N N RI m ty' •M :O f!1 nj lz LD 1 rl N' ei N w F N C C C C us+ L O C t- oj E O) . 0, E IN 6 . E o a a a a > 2 0 o a o 0 0 0 0 c W E L m A N> > > 7 0 C U_ N W u C �+ o a c ¢ _ w 0 w 0 p�G�G�p w p ar v p W w E a own — tv m to o `� 'c c c c c o u to V o= — ci o w L a+ ym, c m ar ar w m a �. '2 '�-10 � 0. c u u Q U vfQ a 3 E E E E E vin = � n o 3¢ m w c W E O 2 N C m 2 N 0 T E y^ w m � C tLJ i0 0, N U E O O c t 0J c m o E a E' a E a E v m s cu E a c nn o c U C U W O W a W W Q t% w I^ to CL ..O.I N U 2 � y O y Yn c c ¢ E dL m v m ° u m E as E m } ¢ y L U O ec J W O c r 1° �o v L° C E cc a -SO a ri u a oT C Y c 9 o N n E a o� E o. a w C � C L Qj > C: m n O, a, N , d; 'O .Yy1 E y m W Z a u 0 u° >° 'N tJ w O i- .'] Q >y.FQ > Uoj T. 7 I- Zv > > F UW 2O 25J-79 EXHIBIT 1C m V co V c a V V 'a z Q. H Q N u m m a a T O G E u C in m ti a a {aN y u 00 - N to O 0 U 00 o p A T C S-o Q O t c Imp u N w t'o c L E m E r Y O Q U a :co. m E O U ° d 2 z ` O• o 01 L y �j Q 3 � Li E Ed = 4 U A p 5 y W.49 to tom+ 0,0 o N a o74 A° 5 0 yipbbp p g� by E 0 A. q ,d 27 0 U •d 5 ❑ Y " A p ti O ti m E bn y g. O N � d0 Oq •'� U bq O " o t� O p O O V .� O O ,.v�� 5 O v1 wo w w� P dqq b O p G a S of U y '�' N •G R y •^°i 9.8 �.E p °> ° v�cwdo 10 � Co. � � .. ty ° '� ° o 'ate a p�3r-O 3 o vo0 q 0 U O .O 19� & m Y R y° V cgE q w a"i m a'"i R' � qq a 00 U b V to O O N N b m q h is' 'GC '«� S q L� '" q y �y q •c� O~ O .� .q r7i O 'd u qOq O ttl gn g U W FGC� d W•° ry U a W a U 25J-80 N EXHIBIT 1C a N 0 m N y 'F1 N a^J .d p 8 rl dd 78 a •b � `C 7 N v a Q a o 0 5 ra. r S r W W W t- 4 0 M 25J-81 EXHIBIT 1C ;3 C N 'i7 N •y cc v O W 52 en p5 o Cam, o U 5 U yyq 0 N W p • N a P+� a ca ca W ep1 d d •po � U b `� E" a S, F V 'r EXHIBIT 1C W 25JW83 A ti m E kn EXHIBIT I o m H •" N N � tl� y 'b o o ti W U 0 25J-84 EXHIBIT 1C Attachment 3 APPLICABLE CAREER SERVICES Sharing Other One -Stop Delivery System Costs The budget must include "applicable career services" as well as any other shared costs agreed upon by the AJCC partners. While only co -located partners share infrastructure costs, all One -Stop partners must share in other system costs, including applicable career services. Required Consolidated System Budget for "Applicable Career Services" Summary of Career Services Applicable to Each AJCC Partner The MOU requires identification of the career services that are applicable to each partner program (Attachment 2). Accordingly, this budget includes each of the partner's costs for the service delivery of each applicable career service. Unlike infrastructure cost sharing, other system costs, including "Applicable Career Services" are not limited to the non -personnel costs and should include all costs related to the administration and delivery of those services. AJCC Applicable Career Services Indian Center Career Services: $ 6,000 • Eligibility Determination (1) • Outreach, Intake and Orientation (2) • Initial Assessment (3) • Job Search, Placement Assistance, and Career Counseling (4) • Employment Statistics -Labor Market Information (5) • Eligible Provider performance and program Cost Information (6) • Local Performance Information (7) • Supportive Services' Information (8) • Unemployment Compensation (9) • Eligibility Assistance (10) • Follow -Up Services (11) • Comprehensive and Specialized Assessments (12) • Individual Employment Plan Development (13) • Group Counseling (14) • Individual Counseling and Career Planning (15) • Case Management (16) • Short -Term Prevocational Services (17) Training $ 2,000 • Occupational Skills Training (1) • On -the -Job Training (OJT) (2) • Workplace and cooperative education (3) • Training programs operated by the private sector (4) • Skills upgrading and retraining (5) • Entrepreneurial training (6) • Job -readiness training (7) • Adult Education and Literacy programs (8) • Customized training (9) 25J-85 EXHIBIT 1C APPLICABLE CAREER SERVICES Employer Services • Employer needs assessment (1) • Job posting (2) • Applicant pre-screening (3) • Recruitment assistance (4) • Training assistance (5) • Labor Market Information (6) • Employer information and referral (7) • Rapid Response and Layoff Aversion (8) Total Career Service Cost Attachment 3 $ 2,000 $10,000 25J-86 EXHIBIT 1C Attachment 4 try C Mill si e Cost �� III acat�ota anld Partner Contributions - Squan Faen6e �JCC %Pl7mal' Comprehensive) P Mer .. OyeratronalCmL PaW kr&iH on Spmre Monehh ProP'M Monmp Mrpt M MyRanti farERWPmant Epmpmen[un6a GPartnerPrgnm yoPigmentRathfm DRIV SN+irq/ ,Rant• ;K! �EDO 6t))210 e3SM $ 17.939A0 S 676.e0 3 2.MM S 21.554M S. L/93,317Ad $ lIZ35IN7.20 DRpart ofhhabftUO 219.03 Lim S e8L6] S $ 120.12 3 aol" S $ L9e5,309A6 SOWISeivkir Rd myh "lls siFsLl � `tee ' 1191.60 6AM S 2.621.52 5 'Sf = 357.43 - SawM lloueln9authorlty 219,03 1.135: S Mat S S t10.12 5 2.21% $ 963.)S $ `$�, Y 2a058j ..i I Ss:Yl8.01 S}'a $ S.Ta13aNmhoSenDpGmmu�yGLp Clsold MOD 0.m 5. $ S AO$Y $ S 1,531,191.10 77 77777 si ! ..tY 0.00 O.M S 5 S S 3 f0W000 000X,'$; 1K v�' $' 236AU0.00. oW Rentable $Doll 19321.00 100.00% $ a2,506.20 $ 676.e0 $ -7,59118 $ 50,71a.08 $ - S 6,565,105.06 Revised 7/18/19 5:22:42 PM •RerdpSS10 WrSpuanfoptteM3%frrmnesmma0y •• yeady Greer Stn ftnported byrelpecWt partn,MWW u maylrc0afe but Ienot Milted to partmnpayroq d1lM"dn$eapnua, tllentundwtaapenee, etc t SER Is payW 1657.10 to, 3 Rvhida fm 3 monW 25J-87 25J-88 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN AGREEMENT WITH PRIORITY LANDSCAPE SERVICES, LLC TO PROVIDE LANDSCAPE MAINTENANCE SERVICES IN DISTRICT A FOR AN AMOUNT NOT TO EXCEED $329,739 FOR THE PERIOD JULY 1, 2019 TO JUNE 30, 2020 TO BE FUNDED BY CIVIC CENTER AUTHORITY FUNDS (STRATEGIC PLAN NO. 6, 1) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2n1 Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with Priority Landscape Services, LLC to provide landscape maintenance services in District A for an amount not to exceed $329,739, which includes a 15% contingency, for the period July 1, 2019 to June 30, 2020 to be funded by Civic Center Authority funds, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On April 8, 2019, the Parks, Recreation and Community Services Agency issued a request for proposal (RFP) for landscape maintenance services in District A. The City notified 151 companies, 23 companies downloaded the documents, and two companies submitted proposals. The city conducted the evaluation process, selected a company, and entered into negotiations. Unfortunately, the City and contractor were not able to settle on the terms of the agreement. The remaining proposer had a low score eliminating them from consideration resulting in the rejection of all proposals. The agreement with the existing vendor (Priority Landscape) has expired and they have agreed to continue services until the City is able to issue a new RFP and award a new agreement. Therefore, the City is requesting to enter into a one-year agreement with Priority Landscape to provide landscape maintenance services in District A. The agreement will contain a 30-day termination clause as the City anticipates for the RFP process to be completed no later than December 2019. 25K-1 Agreement with Priority Landscape Services, LLC to Provide Landscape Maintenance Services in District A August 20, 2019 Page 2 The City will review and modify the scope of work to encourage additional companies to submit proposals. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (Establish and maintain a Community Investment Plan for all City assets). FISCAL IMPACT Funds are budgeted and made available in the following account for the specified year: Fiscal Accounting Fund Accounting Unit, Account Amount Year Unit -Account # Description Description FY 19-20 07413250- Civic Center Civic Center -Regular Maintenance, $329,739 62320 Fund Maint. & Re air / Bldn . & Ground Lisa4Rddloff Executive Director Parks, Recreation and Community Services Agency Exhibit: 1. Agreement APPROVED AS TO FUNDS AND ACCOUNT: A� " Kathryn Downs, CPA Executive Director Finance and Management Services Agency 25K-2 AGREEMENT FOR LANDSCAPE MAINTENANCE SERVICES CITY OF SANTA ANA (DISTRICT A) THIS AGREEMENT is made and entered into this 20th day of August, 2019 by and between Priority Landscape Services, LLC, a California Limited Liability Company ("Contractor"), 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.. ' On April 8, 2019 City issued a Request for Proposal ("RFP") for landscape maintenance services in District A (Santa Ana Stadium and Civic Center). Ultimately, all of the proposals were rejected by the City. B. Contractor had the previous landscape maintenance agreement with the City for District A which expired June 30, 2019. Contractor has agreed to continue providing services pursuant to the same scope of services and fees that governed the 2016 Agreement between the parties for a maximum of one year to allow City to issue another RFP. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional 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 Contractor shall perform those services as set forth in Exhibit A to this Agreement. Contractor's proposal is incorporated herein by reference. 2. COMPENSATION a. City agrees to pay, and Contractor agrees to accept as total payment for its services the rates and charges identified in Exhibit B. The total sum to be expended under this Agreement shall not exceed $329,739-during the term of this Agreement. This annual amount is comprised of (1) the base agreement amount of $286,729 and (2) a 15% contingency of up to $43,009.35 for services as may be performed by Contractor at the sole discretion of City. b. Payment by City shall be made within forty-five of days (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work that fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and terminate on June 30, 2020, unless terminated earlier in accordance with Section 15, below. The parties acknowledge and agree that #5944v1 251,[_3 this Agreement includes payment for landscape maintenance services rendered since July 1, 2019. 4. PREVAILING WAGES Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. Since the services being performed are part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws 5. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement ("Documents & Data"). Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were provided to Contractor by the City. City shall not be limited in any way in its use of the Documents and Data at anytime, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 7. INSURANCE Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts #5944vl 26�'C-4 involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 .per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the California Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Contractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. C. The following requirements apply to the insurance to be provided by Contractor pursuant to this section: (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. (iv) Contractor shall supply City with a fully executed additional insured endorsement. f. If Contractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials expended prior to notification of termination. Contractor waives the right to receive compensation and agrees to.indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEMNIFICATION Contractor agrees to and shall indemnify and hold harmless the City, 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, #5944vl 25K-5 z including death, and claims for property damage, which may arise from the negligent operations of the Contractor or its, 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 Contractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor. 9. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longerperiod required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 10. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Contractor agrees 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 importance, but in no event less than reasonable care. "Confidential Information" shall 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 Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. #5944v1 25R'C-6 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: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714- 647-6956 With courtesy copies to: To Contractor: Executive Director Parks, Recreation, and Community Services Agency City Attorney City of Santa Ana City of Santa Ana 20 Civic Center Plaza M-23 20 Civic Center Plaza (M-29) P.O. Box 1988 P.O. Box 1988 Santa Ana, California 92702 Santa Ana, California 92702 Fax 714-571-4211 Fax 714-647-6515 Priority Landscape Services, LLC. Attention: Simon C. Rocha, President 521 Mercury Lane Brea, California 92821 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 Contractor regarding the subject matter therein, 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 #5944vl 2 5 K-% c signed by the City and by an authorized representative of Contractor. 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 Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other consultants retained by City. 15. TERMINATION This Agreement may be terminated by the City upon thirty (3 0) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to 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 Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work that fails to meet the standard of performance specified in the Recitals of this Agreement. 16. NONDISCRIMINATION Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 17. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 18. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other #5944v1 25K-8 governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 19. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 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: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney Br&= A Laura A. Rossini Senior Assistant City Attorney RECOMMENDED FOR APPROVAL: Lisa Rudloff Executive Director Parks, Recreation, and Community Services Agency CITY OF SANTA ANA Kristine Ridge City Manager CONTRACTOR: Simon C. Rocha tPresident �n 25K-9 SCOPE OF SERVICES #5944v1 25K-1 0 Appendix ATTAC)EN[ENT 1 SCOPE OF WORK CITY OF SANTA ANA REQUEST FOR PROPOSALS FOR LANDSCAPE MAINTENANCE (DISTRICT A) RFP NO.:16-063 Description of Work ROUTINE MAINTENANCE Each morning at the start of the workday the Contractor's Supervisor or their designated representative shall inspect each site and respond immediately to any malfunctions, vandalism, hazardous conditions or otherwise abnormal conditions that are inconsistent with the quality standards specified herein or threaten people and/or property by reporting the condition immediately to the Director's Representative. Failure to inspect each site daily before 9:00am will result in a $300 penalty per site. Routine maintenance shall include but not be limited to the following services performed at the Work Sites and per the City of Santa Ana Park Services Standards. 1.0 Turf Care The Civic Center area turf is considered to be all "Priority" turf and therefore the contractor should follow the specifications for "Priority" turf below. The Contractor shall maintain mowers that provide a smooth, even cut without ridges or depressions and without tearing of the leaf blades. Mowing shall be performed at the speed the mowers manufacturer specifies to maximize quality of cut. Mowing shall be performed with straight and flowing patterns approved by the Director's Representative. All visible turf clippings shall be removed from the site the same day turf care occurs pursuant to SAMC Chapter 16. Furthermore, the Contractor shall prevent turf clippings from leaving the site into streets or any other adjacent properties. From time to time the Director's Representative will direct the Contractor to change mowing patterns to minimize rutting and compaction. 1.1 Priority Turf Mowing- All "priority" turf shall be mowed once a week all year. The Contractor shall mow the priority turf areas at 1/2". In order to achieve a quality cut at this height and not leave clippings the Contractor will perform a first cut using a rotary mower with, clipping catching capability followed by using a Kubota L5060 tractor equipped with turf type tires and tractor powered Trimax ProCutS3-237 91" rotary mower and a walk behind Jacobsen Eclipse2 reel mower along skinned infield brickdust areas, turf infields, turf infield foul areas, soccer/football fields, soccer/football out of bound areas (see Attachment 7). The Director's Representative shall direct the Contractor to mow the priority turf lower than 1/2", if necessary. 1.2 Edging and Detailing City of Santa Ana RFP 16-063 Page 11 25K-11 Edging/detailing shall be performed at the same time mowing occurs All edging shall be performed with the use of a McClain's edger or approved substitute walk -behind or fixed blade stick edger. Contractor shall edge all turf adjacent to all improved hard surfaces such as concrete, decomposed granite, asphalted concrete paved areas, pavers, etc. Edging/detailing may occur with string trimmers around site amenities that are not immediately adjacent paved surfaces. Chemical detailing of turf may occur only with the Director's Representatives approval. If chemical detailing is performed, the Contractor shall spray maximum 3" and use the string trimmer to remove the treated turf within one (1) week after symptoms of phytotoxicity become recognizable. The Contractor shall use the McClain's edger, or approved substitute, to edge straight lines along fences, walls, or long flowing arcs. The Director's Representative may require the Contractor to use string or rope lines to edge straight lines if the Contractor's staff fails to achieve this quality without this method. The Contractor shall detail around trees, along walls/fences and other Civic Center amenities first using a sharpened shovel cut to establish a concentric round circle around trees, poles, etc. Once the initial detailed circle is established a string trimmer may be used to maintain the circle. Should the circle begin to deform the Director's Representative shall direct the Contractor to repeat the detail process. Shovel cut detailing shall be repeated a minimum of every 3 months to maintain crisp evenly round lines. The Contractor shall detail turf not greater than I" away from Civic Center amenities walls or fences. Detail lines shall be made straight and shall be maintained straight. The Contractor shall, at his own cost, supply sandy loam top soil and an approved turf sod to reduce any existing bare soil areas along walls/fences that are greater than 1". 1.3 Fertilization Priority Turf - Contractor shall apply fertilizer two times per year (first week of January and July) per the City's Agronomic Plan. 1.4 Weed Control The Contractor shall notify the Director's Representative via email a minimum of 48 hours in advance of any pesticide applications. The required information shall be the name of the QAL/QAC and company performing the application, the proposed pesticides to be applied listing the manufacturer/name of the pesticide, the rate(s) of application, the reentry period and the method of application. Furthermore, the Contractor shall copy the email to the Agricultural Commissioner's Office, thereby, notifying their Inspectors of your sub -contractor's or QAL/QAC intent to apply pesticides. Furthermore, Contractor's sub -contractor or QAL/QAC shall post on A -frame barricades plastic sealed 18"x24" at minimum 300' intervals (where applicable) public notification posters listing the City of Santa Ana RFP 16-063 Page 12 25K-12 company performing the application, the proposed pesticides to be applied listing the manufacturer/name of the pesticide, the rate(s) of application, the reentry period and the method of application. The Contractor's Agricultural Pest Control sub -contractor or QAL/QAC staff shall continuously apply Post Emergent Herbicides to keep all turf free of all turf type weeds, especially Dallis Grass, Goose Grass, Smut Grass, Pea Annua, Nut Sedge, Neddle Grass and broadleaf weeds at all times. The Contractor shall, along with the monthly Pesticide Use report, submit a written schedule for weed abatement in turf specifying the method, day and location where weed abatement will be performed. The Director's Representative will review and approve written schedule taking into consideration the park's use. Should the Contractor fail to control weeds in turf to the satisfaction of the Director's Representative he/she may hire an agricultural pesticide operator to perform the work and subtract the cost for this work from the Contractor's monthly invoice. Contractor's Agricultural Pest Control sub -contractor or QAL/QAC staff may apply Dimension pre -emergent herbicide to all turf areas as needed in order to control the germination and growth of all weeds in all turf year around. i.e. Dallis Grass, Goose Grass, Crab Grass, Nutsedge, Plantain, Oxalis, etc. Should turf type or broadleaf type weeds germinate, the Contractor shall control the weeds immediately upon recognition by way of selective and/or broad-spectrum post emergent herbicides and methods approved by the Director's Representative. 1.5 Replanting Should turf begin to stress for any reason, or become thin in appearance, the Contractor shall direct CITA's to begin immediately applying supplemental water and shall overseed these turf areas using Stovers Seed Company Bermuda Dunes (spring/summer) or Jacklin Seed Company CSI perennial rye (fall/winter) seed at the manufacturer's recommended rate and process. The Contractor shall use STA approved YV minus compost seed topper to cover the seed topper pre mixed with California Organic 7-1-2 Phyta Boost fertilizer at a rate of 35 cubic yards per acre. Should turf die back to the point where soil is visible, the Contractor shall install thick cut sod to those turf areas using West Coast Turf Bandera Bermuda cropped over with perennial rye grass (fall/winter) and West Coast Turf Bandera Bermuda (spring/summer). The Contractor understands and accepts that at the beginning of the agreement there may be existing turf areas that are thin or bare. The Contractor, by entering into the agreement, shall routinely and at no extra cost to the City, repair thin or bare turf areas by overseeding or sodding with approved seed or sod until a thick healthy stand of turf is established. Contractor also understands and accepts that Civic Center area is very heavily used, including increased foot traffic, and other uses and, therefore, acknowledges that he/she will immediately respond to thin or bare areas in turf without delay. City of Santa Ana RFP 16-063 Page 13 25K-13 1.6 Aeration The Contractor shall aerate priority turf four (4) times per year in March, June, September, and December. Aeration shall be performed by AerWay aerator using shatter tines. Contractor shall perform multiple passes per the Director's Representatives direction (in the same direction) in heavier compacted areas. 1.7 Renovation The Contractor shall have a "Priority Turf Renovation Crew," separate from their "Routine Maintenance Crews," to perform all aspects of the sport turf renovation process. The exception to the above requirement shall be the Contractor's scheduling of CM1T's, CIT's and/or CITA's to audit, repair, improve and manage the priority turf s irrigation systems. Renovations shall be a maximum of 12 weeks from date of closure to date of reopening: during the spring/summer or the fall/winter (as determined by the Director) the Contractor shall renovate priority turf using: 1.7.1 spring/summer - Stovers Seed Company Bermuda Dunes seed at six (6) pounds per 1,000 square feet in bare areas and four pounds per 1,000 square feet where turf exists; 1.7.2 fall/winter — Simplot Jacklin Seed Company CSI self -repairing perennial rye seed at three (3) pounds per 1,000 square feet and Stovers Seed Company Bermuda Dunes seed at two (2) pounds per 1,000 square feet. This shall be accomplished by mowing the existing turf down to ''/4" followed by verticutting (straight blades spaced 1.25" to 1.50" apart) to remove thatch. Prior to seeding, the contractor shall eradicate all weeds and have the irrigation system functioning properly and have a plan to provide supplemental irrigation as necessary to germinate the seed to 100%. Seeding shall be performed followed immediately by covering the seed with Santa Ana Mix (STA tested and approved''/4" minus compost seed topper pre mixed with California Organic 7-1-2 Phyta Boost fertilizer at a rate of 35 cubic yards per acre using a Dakota Turf Tender or approved equal). The Contractor shall guarantee 100% uniform germination within 10 weeks from the time the first application of seed or will sod any thin or bare areas with "thick cut" (thickest available cut) West Coast Turf Bandera Bermuda sod or West Coast Turf Bandera Bermuda Sod that has been "cropped over" with perennial rye grass. Renovation must be completed within three months of field closure. The Director's Representative shall determine the quantity of thick cut sod needed to achieve 100% coverage. Overseeding: Once per month the Contractor shall overseed sport fields at a rate of one (1) pound per 1,000 square feet by mowing the existing turf down to 1/2" followed by verticutting (straight blades spaced 1.25" to 1.50" apart) to remove thatch. This overseeding occurs on all priority sport turf regardless of whether or not a renovation was completed. The Director's Representative shall have it within his/her authority to City of Santa Ana RFP 16-063 Page 14 25K-14 aggregate several months of overseeding together in lieu of overseeding one time per month. 1.8 Irrigation Maintenance Contractor shall ensure irrigation schedules are continually monitored to provide adequate moisture in the soil for healthy turf, and avoid excess wet conditions. The Contractor shall visually check all sites each morning and physically check each sites systems monthly indicating in writing the: 1) site name; 2) the controllers manufacturer, model and serial number; 3) controller letter/number; 4) run days; 5) start times; 6) station run times; 7) water budget percentage; 8) weekly Et; 9) deficiencies noticed; and, schedule to cure/repair deficiencies. Contractor shall not schedule irrigation of turf that would impact programs/events or at least 24 hours prior to the mowing process. During cooler periods of the year avoid irrigating 48 hours prior to the mow procedures to ensure a quality cut of the turf. Under normal conditions the contractor shall not schedule irrigation on Friday and Saturday nights to avoid wet conditions during weekend usage. Prior approval will be required to irrigate during weekends to coordinate with reservations. Turf areas shall be watered as required by weather conditions to provide adequate moisture for optimum growth. At no time shall turf areas show a lack of green color or a loss of resilience due to lack of water, unless approved or directed by the Director's Representative for water conservation purposes). If Contractor estimates additional water above and beyond the monthly Estimated Applied Water (EAW) may be needed, he/she shall request approval from the Director's Representative prior to exceeding the monthly irrigation budget as detailed in the Monthly Water Conservation Report Estimated Applied Water (EAW) requirements. Failure to get approval from Park Services prior to exceeding the monthly irrigation budget will result in the Contractor paying for the excess water. When an irrigation system does not adequately provide water to the turf area in which it is installed, due to any reason including but not limited to controller failure, valve failure, broken heads, poor system design, etc., the Contractor shall direct their CITA's to immediately provide supplemental irrigation at no extra cost to the City. The Contractor may use any reasonable means necessary to uniformly irrigate turf areas. Contractor may also submit AEWs with engineered drawings to improve these areas of the system. Failure to maintain turf in a green and healthy condition will result in deductions from the monthly invoice. Automatic irrigation shall be conducted between the hours of 10:00 p.m. and 4:00 a.m. and shall be programmed not to exceed the EAW. In the event that Contractors water consumption exceeds the EAW City may deduct said overages from the Contractor's monthly invoice. Contractor shall ensure that all Certified Irrigation Technicians (CIT) and Certified Irrigation Technician Assistant (CITA) working on irrigation possess the following credentials (see Section 2 Workforce): City of Santa Ana RFP 16-063 Page 15 25K-15 Certified Irrigation Technician a. Fullerton College Associate in Science Ornamental Horticulture or Landscape Management. Or Certificate of Proficiency in Landscape Irrigation Program totaling over 30 units b. Mt. San Antonio College Associate of Science in Ornamental Horticulture or Park and Sports Turf Management. Or two skilled Certificates in landscape and park management totaling over 30 units. c. UC Riverside Certificate in Landscape Irrigation Certificate Program d. Irrigator Tech Certificate Program (must possess all of the following): i. Certified Irrigation Repair Technician (CIRT) ii. Certified Irrigation Auditor (CIA) iii. Smart Water Certified (SWC) iv. Certified Irrigation Installer (CII) Certified Irrigation Technician Assistant a. 50% completion of Fullerton College Certificate of Proficiency in Landscape Irrigation Program b. 50% completion of UC Riverside Certificate in Landscape Irrigation Certificate Program c. Irrigator Tech Certificate Program (must possess all of the following): i. Certified Irrigation Repair Technician (CIRT) ii. Certified Irrigation Installer (CII) From time to time City staff will advise contractor of special events occurring in contract areas and contractor will be required to adjust irrigation scheduling to avoid negatively impacting the event. Should the contractor fail to properly adjust irrigation or otherwise prepare the area for the special event, a failure. to perform in the amount of $500 will be assessed for liquidated damages. 2.0 Groundcover Care 2.1 Maintenance The Contractor shall service ground cover/shrub beds. These areas shall be maintained within their intended bounds and edged and/or detailed to keep the beds looking manicured at all times. Groundcovers shall not be allowed to grow into other groundcover beds, shrubs, vines or on trees, All plant material shall be maintained in an attractive and healthy condition, Ground cover shall not encroach into lawns, shrubs, adjacent desirable bare areas, curbs, wall fixtures, furniture, beneath and/or into other plants, etc. All sites shall be cleaned immediately following each edging/detailing, including streets. 2.2 Replanting of Bare Areas All bare areas in groundcover beds shall be replanted from flats once per month at the Contractor's expense with like groundcover genus -species at 12" on center. City of Santa Ana RFP 16-063 Page 16 25K-16 2.3 Mulching of Bare Areas In all groundcover areas where bare soil is visible or where the groundcover is thin so the soil is visible, the Contractor shall apply US Composting Council STA tested and approved compost mulch 1 "-2" minus by 2" thick minimum twice per year (third week of January and July) and as necessary to maintain uniform and complete coverage. Leaf litter and other organic materials other than mulch shall be removed on a continuous basis. 2.4 Replanting -Other On a monthly basis the Contractor shall, at their own expense, be responsible for the replanting of ground cover of the same genus -species lost due to vandalism, normal attrition or due to Contractor's failure to perform under the terms of this Agreement. The Contractor shall plant the groundcover from 64 count flats at 12" on center to fill all bare areas in the groundcover/shrub bed. 3.0 Shrub Care 3.1 Maintenance 3.1.1 Bi-weekly Pruning/Trimming-All shrubs shall be serviced every other week. Shrubs growing in the work areas shall be pruned such that the plants remain in a healthy growing condition. Plant growth shall be maintained to prevent overgrowth into passageways, walks, streets, view of signs or in any manner deemed objectionable by the Director's Representative. Dead or damaged limbs shall be removed so that no projections or stubs remain. Pruning/trimming shall be done by hand shears or loppers in a manner to permit plants to grow naturally in accordance with their normal growth characteristics. `Box hedging" may be required on some shrubs, as set designated by the Director. "Box hedged" plants will be required to have all three sides level and straight to the satisfaction of the Director's Representative. In order to achieve straight and level lines of shrubs the Contractor shall run string lines to assure straight pruning. Shear hedging or severe pruning/trimming of plants, unless authorized by the Director's Representative, is not permitted. Topping of plants whose natural growth stems from the base of the plant is not permitted. Should the Contractor top, shear hedge or severely prune plants and disfigure or damage the plants, the Contractor shall be responsible for replacing those plants with like kind and size, subject to approval by the Director's Representative. The Contractor may be requested from time to time to raise the bottom of the shrubs for security reasons. 3.1.2 Monthly Shrub Replanting -On a monthly basis the Contractor, at his own expense, be responsible for the complete removal and replacement of poor looking or unhealthy shrubs, In addition the Contractor shall, at his own expense replace missing shrubs or shrubs lost due to normal attrition or due to Contractor's failure to perform under the terms of this Agreement. The shrubs City R Santa Ma RFP 16-063 Page 17 25K-17 shall be planted at appropriate spacing so as to achieve complete coverage once the plant is 2/3rds mature. 3.2 Mulching of Bare Areas In all shrub areas where bare soil is visible or where the shrubs are so thin the soil is visible, the Contractor shall apply US Composting Council STA tested and approved compost mulch 1 "-2" minus by 2" thick minimum twice annually (third week of January and July) and as necessary to maintain uniform and complete coverage. Leaf litter and other organic materials other than mulch shall be removed on a continuous basis. 4.0 Vine Care 4.1 Maintenance Contractor shall trim the vine once it reaches the top of the wall or at a specific height on the wall, as determined by the Director's Representative. The Contractor shall also prune the vine back to the wall to reduce the width and weight of the vine one-time per year in May. The Contractor shall keep vines off telephone poles or other non -wall surfaces at all times. 4.2 Planting The Contractor shall irrigate the all vines and fertilize as necessary to promote healthy and vigorous growth. The Contractor will immediately replace any vine at the Contractor's expense that is lost for any reason including but not limited to lack of water, vandalism, accidental post emergent spraying, etc. 5.0 Tree Care The Contractor shall perform all tree services per the City of Santa Ana Park Services Tree Services Specifications (PSTSS) up to a height of 15'. All pruning shall be `Complete' per the PSTSS (see Attachment 5). 5.1 Tree Service The Contractor shall perform continuous `Complete' tree pruning service including but not limited to raising tree branches to a safe and functional height for the type of activity beneath or around the tree (see Director's Representative for appropriate heights per activity beneath or around trees), In addition, the Contractor shall remove stubs, damaged, diseased or dead branches from trees. All trees within the scope of work shall be maintained to keep the natural integrity and shapes of the trees. Pruning shall be accomplished in a manner that will ensure that each individual tree is `Complete' pruned as set forth in the PSTSS (see Attachment 5). In addition, the Director's Representative may require the Contractor to remove or prevent encroachment of trees into the public right of way where the tree blocks vision or is considered undesirable. Low branches overhanging sidewalks shall be trimmed to a City of Santa Ana RFP 16-063 Page 18 25K-18 height of nine (9) feet above finish grade. Young trees needing pruning(trimming, training, and shaping to develop caliper and a strong structural framework may have low branching laterals and or appropriate sucker growth. Contractor shall remove hangers under 15" and fallen limbs 801bs. or less. 5.2 Annual Tree Evaluation Report In November of each year the Contractor shall have an International Society of Arborist TRAQ Certified Hazardous Tree Professional evaluate all District trees and provide a written report by park site listing findings and recommendations by priority of which trees need; 1) immediate service; 2) service within six months; or 3) service within one year; or, 4) service within two-four years. 5.3 Staking, Tying and Guying All trees requiring staking shall be securely staked at all times with stakes and rubber cinch ties approved by the Director. Rubber hoses and wire are not permitted ties. Ali stakes shall be set perpendicular to prevailing winds unless designated otherwise by the Director. Tree stakes shall also be set a consistent distance away from the trunk of the tree (minimum six (6) inches) to reduce abrasion and cell elongation. The tops of all tree stakes shall be removed approximately three (3) inches above the highest tie to reduce abrasion of main or lateral branches of the tree. 5.4 Hazardous Tree Reporting In the event the Contractor detects any tree displaying roots heaving or girdling (either by roots or a foreign material), leaning, broken or hanging limbs, or if Contractor determines that potential safety hazard may exist Contractor shall dispatch their. International Society of Arborist TRAQ Certified Hazardous Tree Professional evaluate the trees and provide a written report listing findings and recommendations. 5.5 Loss of Trees The Contractor shall be responsible for the complete removal and replacement of any and all trees lost due to the Contractor's failure to perform under this agreement. Failure to perform includes but is not limited to, girdling trees with string trimmers or tree ties, improper planting of new trees, improper pruning/trimming techniques which disfigure or destroy the trees natural integrity and shape, or failure to detect and prevent treatable diseases and insect infestations. All trees that exhibit the signs of disease or pests, or any other signs of distress shall be inspected by an International Society of Arborist TRAQ Certified Hazardous Tree Professional approved by the Director's Representative. Contractor shall provide an exact location and separate evaluation/report for each tree in decline. Contractor shall treat any tree in decline at no additional cost to City. Should the TRAQ Certified Hazardous Tree Professional determine that the tree had a terminal disease that the Contractor could not have treated or prevented, the Contractor shall not be responsible to replace the tree. However, should the TRAQ Certified Hazardous Tree Professional determine that the tree's unhealthy condition or death could have been prevented had the City of Santa Ana RFP 16-063 Page 19 25K-19 Contractor treated the tree then Contractor shall be responsible for the cost of treatment to restore the tree to a healthy condition or replace the tree. The latest American Shade Tree Conference guidelines for value determination will determine the value of the trees lost. By entering into agreement with the City the Contractor acknowledges that they accept the condition of each tree and should a tree go into decline or expire, the Contractor agrees to replace the tree with like species and size or agree that the City shall withhold payment equal to the value of the tree. 6.0 Weeds, Disease and Pest Control —All Areas Agricultural pest control services shall be performed by a state licensed/certified agricultural pest control sub -contractor or employee. The Contractor shall notify the Director's Representative via email a minimum of 48 hours in advance of any pesticide applications. The required information shall be the name of the company performing the application, the proposed pesticides to be applied listing the manufacturer/name of the pesticide, the rate(s) of application, the reentry period and the method of application. Furthermore, the Contractor shall copy the email to the Agricultural Commissioner's Office, thereby, notifying their Inspectors of your sub -contractor's or QAUQAC intent to apply pesticides. Furthermore, Contractor's sub -contractor or QAL/QAC shall post on A -frame barricades plastic sealed 18"x24" at minimum 300' intervals (where applicable) public notification posters listing the company performing the application, the proposed pesticides to be applied listing the manufacturer/name of the pesticide, the rate(s) of application, the reentry period and the method of application. 6.1 Weed Control All hardscape and landscape areas shall be kept free of weeds at all times. Weeds shall be removed by hand and/or approved mechanical or chemical methods. The Director's Representative may dispatch City staff or other contractor's to remove/eradicate weeds that reach two (2) inches or greater or when weeds exist in turf areas and are not removed/eradicated immediately. In such instance, the cost will be deducted from the Contractor's monthly invoice. Contractor, in accordance with the Agronomic Plan — Pre -Emergent may apply Dimension and Gallery to all turf areas (except sport(priority fields due for renovation within twelve weeks) and Snapshot two times per year minimum to all groundcover/shrub areas. Note that when applying Snapshot Contractor shall take precaution not to overlap the application on to adjacent turf. Should damage occur to adjacent turf, the Contractor shall remove the damaged turf and replace the affected area with Greg Norman 1 Hybrid Bermuda thick cut sod to the satisfaction of the Director's Representative. Beginning in April all turf shall be sprayed/applied with post -emergent herbicides Revolver (16-17 oz/acre), Speedzone non-ionic surfactant and ferrous oxide pre -mixed in a tank, per the agronomic pre -emergent plan. All applications shall be applied by a state licensed Qualified Applicator sub -contractor or QAL/QAC using a calibrated boom sprayer with appropriate nozzles. Following the initial application of post -emergent City of Santa Ana RFP 16-063 Page 20 25K-20 herbicide the Contractor shall continuously apply post emergent herbicides to eradicate all turf of turf and broadleaf weeds. Following the eradication of turf type weeds the Contractor shall overseed with Stovers Bermuda Dunes at two (2) pounds per 1,000 square feet (spring/summer) and Simplot Jacldin Seed Company CSI Perennial Rye at three (3) pounds per 1,000 square feet and Stovers Seed Company Bermuda Dunes seed at two (2) pounds per 1,000 square feet. 6.2 Disease and Pest Control The Contractor shall inspect on a daily basis in the morning all landscaped areas (turf, trees, shrubs, ground cover, and annual color) for presence of disease, insect, rodent infestation or any other pests. If any pests, such as but not limited to, disease, insect, algae, birds, animals, such as rabbits, rats, squirrels, or rodent infestation (rodents including rats, gophers, moles, voles, etc.) is discovered, it shall immediately be controlled by the Contractor Qualified Applicator sub -contractor or QAL/QAC at his/her expense using the safest and most expedient method. Note that rodents, such as rats, if found in the landscape, regardless of whether or not they inhabit adjacent buildings, are considered agricultural pests and shall be treated as apart of this agreement. The Contractor is responsible for inspecting all plant material on a continuous basis and, as necessary, treating plant material to maintain optimum health of the plants. If any plant material (turf, groundcover, shrubs, trees) dies for any reason the Contractor will be required to replace the plant with like species and size at no extra cost to the City. In the case where turf is lost due to pest damage, the Contractors shall replace the area of turf lost with thick cut West Coast Turf Bandera Bermuda (during spring/summer) and thick cut.West Coast Turf Bandera Bermuda that has been cropped over with Perennial Rye grass (during fall/winter). 7.0 General Maintenance and Clean -Up The Contractor shall clean and maintain all site amenities, walls, planters, raised curbing, railing, exterior of buildings, light standards, patios, walkways and pedestrian paved areas free of debris, slap tags, tape, string, nails, push pins, wire, etc. Monday through Sunday The Contractor shall establish a Trash Crew to blow down all paved areas, pick-up trash/debris and to empty trash receptacles daily. Vacuums, blowers, sweepers, shovels or other approved equipment may be used to clean hardscape areas. Debris shall not be blown or swept onto adjacent planters, streets or property. All debris must be thoroughly cleaned and picked up/removed from the site. All trash and debris (twigs, branches, sand, gravel, rock, wood chips, glass, metal, paper, etc.) on the ground or in trash receptacles shall be blown-off/removed from all worksites landscaped and paved areas each day Monday through Sunday before 12:00 p.m. This includes all landscape areas, paved areas, street curb gutters, Stadium parking lot and grounds. The Contractor shall not blow broken glass or any other potentially hazardous materials into landscape areas. Trash shall consist of all items 80 lbs. or less. All trash receptacles and lids shall be wiped clean with a germicidal product. All non -pedestrian pavement, curb top/bottom, gutters, etc. shall be thoroughly cleaned once per City of Santa Ana RFP 16-063 Page 21 25K-21 week. Debris and litter that shall be cleaned includes, but is not limited to, leaves, twigs, branches, loose rock, sand, soil and trash. The City shall approve any equipment that is to be used for cleaning parking lots. Large trash items in excess of five inches length or width, a muddle of smaller items, spills, and any material (including tree/plant material) that creates a safety hazard shall be picked up daily. The Contractor shall be required to clean trash and large debris in parking lots in the Civic Center. The work shall be performed in the early morning hours or at a time of day that will not disturb residents. If the work is to be performed during the day, the contractor shall develop a strategy to close off parking lots to prevent people from parking so he/she may clean the entire parking lot. All signage, drinking fountains, concrete pads, trash receptacles, concrete or asphalt areas with stains around trash receptacles, security lights, park benches, walls, and the pavement beneath them and other Civic Center amenities shall be cleaned daily. The contractor shall rake, hand remove, or vacuum leaves that are not absorbed by planting. This shall be done as often as required to maintain a neat appearance. After heavy windstorms or other inclement weather that impacts sites under this agreement, the Contractor shall bring in extra staff to clean all Civic Center areas within twenty four hours (24hrs.) at no cost to the City. Debris (80 lbs. or less), such as but not limited to, litter, fallen branches, trash, limbs, branches, soil erosion, etc., shall be removed from the worksites. Drain inlets shall be checked and if necessary cleaned once per day to avoid flooding of areas during inclement weather. The Contractor shall perform pressure washing quarterly (second week of July, October, January and April) to remove dirt, grime, algae, stains, gum, tar, etc. from walkways, between seats and in the pedestrian tunnels of the Santa Ana Stadium to achieve a consistently clean surface, free of all stains and foreign material, etc. Contractor shall also pressure wash around park restrooms. The Plaza of the Flags shall have flags displayed at all times. The Contractor shall visually inspect the flag every day to assure it is in good condition. Should, in the opinion of the Director's Representative, the flag is not be in good condition (faded, discolored, torn and/or having holes) the Contractor shall immediately request from the Director's Representative a new flag. Contractor shall raise the new flag immediately upon receipt from the Director's Representative. The Contractor shall replace the flags twice a year (January, July) with flags provided by the City. Japanese Garden Pagoda shall be cleaned daily of trash and debris. 8.0 Irrigation System Maintenance 8.1 General Responsibilities Contractor's Certified Irrigation Technician (CIT) shall coordinate with Calsense Irrigation to establish a central computerized control irrigation management system at the Contractor's office. The CIT shall have sole responsibility to program all automatic City of Santa Ana RFP 16-063 Page 22 25K-22 irrigation systems, either from the central computerized control system or in the field, to irrigate all landscape areas detailed in this Agreement. In the event the existing irrigation system fails to provide full and proper coverage, the Contractor shall immediately dispatch CIT'sto repair the system from the RCV to the meter and Certified Irrigation Technician Assistants (CITA) to provide alternate/supplemental irrigation and/or to repair heads/laterals to achieve full and proper coverage to all areas in the work site at no extra cost to the City. Failure of the Contractor's CMIT to respond immediately by dispatching of CIT's and/or CITA's to provide alternate/supplemental irrigation and/or repair heads/laterals to stressed plant material and/or turf areas shall result in up to a $300 per day penalty to the Contractor, Stressed turf or plant material is not acceptable unless approved by the Director's Representative. Contractor's Certified Irrigation Technicians (CIT) shall make repairs to the irrigation system from RCV to the meter per the City of Santa Ana Park Services' specifications and details. Contractor's Certified Irrigation Technician Assistants (CITA) shall be under the direction of the CMIT and CIT and shall assist the CMIT and CIT by preparing an irrigation system for repair. The CITA may trench, clean, prepare the job by bringing the proper tools to the site, bring pipe and fittings to the site, and otherwise assist the CMIT and CIT in job preparation. To allow the CITA to gain training he/she may perform repairs of the irrigation system only in the direct presence of the CMIT and/or CIT. The CMIT and/or CIT must be immediately (physically) present at all times to direct/train the CITA in the art of professional quality irrigation system repairs. Should the CITA be found performing repairs without the presence of the CMIT and/or CIT a penalty of up to $500 will be issued to the Contractor 8.2 Operation of Automatic Irrigation Controllers Where the operation of automatic irrigation controllers is required, the Contractor's CMIT shall: Not duplicate any coded City key furnished by the Parks, Recreation and Community Services Agency for access and operation of the controller. ' Surrender all keys furnished by the Parks, Recreation and Community Services Agency at the end of the contract period or at any time deemed necessary by the Director's Representative to prevent serious loss to the City of Santa Ana. Protect the security of City property by keeping controller cabinet and building doors locked at all times. Refrain from using locked premises for storage of materials, supplies or tools, except as approved by the Director's Representative. Program normal irrigation between the hours of 10:00 p.m. and 4:00 a.m. unless alternative hours are approved by City. 8.3 Water Conservation City of Santa Ana RFP 16-063 Page 23 25K-23 The Contractors Certified Irrigation Technician (CIT) shall meet when requested with the Director's Representative to review the Monthly Water Conservation Report to discuss water conservation strategies. These discussions may include, but not be limited to, the Contractor turning off irrigation systems during periods of rainfall and times when suspension of irrigation is desirable to conserve water while remaining within the guidelines of the EAW. When Park Services determines that plant material (turf, groundcover, shrubs, and trees) must be irrigated, all controllers shall be activated within twenty-four (24) hours. 8.4 Inspection and Reporting The Certified Irrigation Technicians (CIT) shall physically inspect the operation of all irrigation systems once a month and prepare a written report specifying controller location/name, start times, run times, program name, station number, water budget percent, weekly Et and deficiencies. All deficiencies shall be cured/repaired within five working days or the Director's Representative shall impose penalties for failure to respond and/or hire a Certified Irrigation Technician to remedy the system. The Contractor shall maintain all sprinkler systems using City standard irrigation products and details, All repairs shall be to City of Santa Ana Park Services' specifications and details. Repairs to irrigation heads shall be with matching precipitation nozzles. Contractor shall ensure that excessive over spray/runoff into street right-of-ways or other areas not intended to receive irrigation is controlled. The Contractor shall repair at his own expense, by way of C1TA's, any irrigation head and lateral line rendered inoperable or malfunctioning due to attrition, vandalism, etc. All other repairs, RCV to meter, shall be performed by Certified Irrigation Technicians and shall be "tagged" using the City of Santa Ana Park Services ."tagging" system noting the Company and Irrigation Tech that performed the repair, the date of the repair and the Contractor's and Irrigation Technicians contact information. All repairs shall be warrantied for two years from the date of the approved repair. All head and lateral lines shall be repaired within five days of discovery of malfunction/repairs needed. All other irrigation repairs shall be performed immediately following approval of the work. The CMIT shall perform a daily visual inspection of all irrigated areas first thing each morning. All areas receiving marginal coverage shall receive supplemental irrigation by being irrigated by a portable irrigation method. The contractor shall furnish all portable hoses, nozzles, sprinklers, etc., necessary to accomplish this additional irrigation. Care shall be exercised to prevent a waste of water, erosion, and/or detrimental seepage into existing underground improvements or structures. 8.5 Repairs The Contractor shall be responsible at his own expense for repairs to all irrigation heads, swing joints and lateral lines as a part of this agreement. The City will be responsible for repairs to the irrigation system from the valve to the water meter. The Contractor shall submit proposals to the Director's Representative for extra work to repair/improve the irrigation system from the RCV to the meter. City of Santa Ana RFP 16-063 Page 24 25K-24 9.0 Work Not Scheduled The Director's Representative may delete a portion of or the entire work site from contractual maintenance during a construction period or any period where the Director determines that work cannot be scheduled. The deletion of this portion of work will be reflected as a reduction in the monthly payment to the Contractor. The amount of reduction will be based on the percentage of area involved and will be determined by the City. 10.0 City Inspection The Director's Representative shall regularly inspect the parks, playgrounds, fields and all other City property subject to this Agreement. If said inspection results in discovery of work that is not performed in the manner, and to the professional degree set forth in the Specifications, The Contractor agrees that the City shall; 1) withhold from Contractor's next monthly payment, the City's actual or estimated cost of performing the work; or, 2) hire a contractor or City staff to perform the work not performed and then withhold from the Contractor's next monthly payment the City's actual cost for performing the work to bring the property into conformance with the specifications. Additionally, City shall impose liquidated damages of up to $300.00 per inspection, per park, per item specified herein not performed, per day not meeting the specifications during any such inspection. Furthermore, it is not the Director's Representatives responsibility to inform the Contractor when work specified in the specifications was not performed or that deficiencies exist. It is the Director's Representatives responsibility to inspect the properties to verify that work was performed to the specified level of quality and time frame followed by reporting that the work was performed satisfactorily or not. It is the Contractor's responsibility to provide adequate supervision and staffing to perform all aspects specified in this agreement. Should the Director's Representative create Power Point punch lists, essentially performing the Contractor's Supervisor's responsibilities/duties of determine what work needs to be performed in accordance with the agreement specificaitons, the City shall deduct $300 per Power Point punch list from the Contractor's monthly invoice. City of Santa Ana RFP 16-063 Page 25 25K-25 Consultant Responsibilities: 1.0 GENERAL CONDITIONS 1.1 Definitions- 1.1.1 "Director's Representative" shall mean the Executive Director of Parks, Recreation and Community Services designated representative. 1.1.2 "SAPRF" shall mean Santa Ana Park and Recreation Facilities. 1.1.3 "Pruning" shall mean the practice of removing lateral shrub or tree branches and may also be referred to as "trimming." 1.1.4 "Weed" shall mean any undesirable or misplaced plant. 1.1.5 "Hardscape" shall mean any resilient surface other than turf or planting beds, such as but not limited to curbs, gutters, sidewalks, decomposed pathways, asphalt pavement, mowstrips, etc. 1.2 Scheduling of Work -The Contractor shall provide landscape/grounds maintenance between the hours of 6:00 a.m. and 6:00 p.m., Monday through Sunday. The schedule may be modified only with the Director's Representative consent. Landscape/grounds maintenance that generates excess noise cannot begin before 8:00 a.m. The Contractor shall establish schedules of "routine work" to be followed in the performance of this contract. In addition to the Contractor submitting the Monthly Park Maintenance Inspector's Inspection Schedule and other required monthly reports, the Contractor shall submit weekly schedules listing the work tasks, crew performing the task, and the projected hours to complete the task. The schedules shall be emailed to Director's Representative by Thursday at 4:00pm for the upcoming week. Any changes in scheduling shall be reported in writing 48 hours before the proposed change and must be approved by the Director's Representative, The schedule shall include days of the week and what person/crew will be performing specific work in accordance with the specification. 1.3 Local Office -The Contractor shall maintain a physical office within the 714 area code (local office). The local office shall be open Monday through Friday 8:00 a.m. to 5:00 p.m. with a company representative present at all times. Answering services or mobile telephones will not be considered a local office. 1.4 Outside the Scope of Work -Damage or malfunction to plant material or irrigation system equipment (from valve to water meter), with the exception of irrigation heads and lateral lines, by any of the following may be considered outside the scope of this Agreement: -Acts of God -Civil Disorder -Vehicle Collision (excluding Contractor and its employees and subs) -Excavation or re -surfacing of the street -Power failures -Underground wiring damage Contractor will not be considered responsible for replacement. Contractor must prove to the satisfaction of Director that one of the above occurred in order to be excused from performing under the Agreement. City of Santa Ana RFP 15-063 Page 26 25K-26 2.0 UNIFORMS AND VEHICLES IDENTIFICATION 2.1 The Contractor shall provide to all field personnel a standard uniform including but not limited to uniform company hats, collared work shirts, pants, jackets, cold weather vests and ANSI approved safety shoes. All uniforms will be marked by patch, silk screen or embroidery with the company name and logo or other form of identification. 2.2 All equipment shall be clearly identified on both sides and rear of the vehicles as belonging to the Contractor, well maintained, in excellent working condition, be clean in appearance and without extensive visible damage, dirt graffiti etc. In addition, all vehicles shall have the company's name, contractor's license number and contact information clearly identified on both sides and the rear of the vehicle. 2.3 The Director's Representative reserves the right to direct the Contractor to remove an employee or piece of equipment for not meeting high maintenance and appearance standards. 3.0 SAFETY REQUIREMENTS 3.1 All work performed under this contract shall be completed with maximum safety as the priority above all other requirements. The Contractor shall be incompliance with his/her companies City approved Illness and Injury Prevention Program. 3.2 All work performed under this contract shall be performed in strict compliance with all federal, state and local safety laws, regulations or other authoritative mandates that protect workers and the general public, including but not limited to, excavation/trenching/shoring, blood home pathogens, hazardous .waste identification and transport and pesticide use and reporting. 3.3 In the event unsafe work is observed by City staff or otherwise reported, the Director's Representative may at his discretion order the Contractor to stop performing and pay all costs and or damages resulting from the delay. 3.4 In addition, the Contractor shall submit to the Director's Representative each year upon renewal of the agreement his/her updated Illness and Injury Prevention Plan and update OSHA safety training records and employee safety training certificates. 4.0 SAFETY NOTIFICATION 4.1 If Contractor identifies a potential safety issue, Contractor shall: 4.1.1 Notify the public that potentially unsafe conditions exist by installing yellow "Caution Tape" and "A" frame barricades or equal substitute around the condition. 4.1.2 Notify the Director's Representative of the condition first by phone and then in writing (e-mail is acceptable) including digital photographs of the potential safety concern. Once the Contractor has notified the City and the public of the condition, as specified above, Contractor shall have no further responsibility regarding the condition. City of Santa Ma RFP 16-063 Page 27 25K-27 5.0 UNDERGROUND ALERT SYSTEMS 5.1 Underground Alert Systems (telephone number 1-800-422-4133) must be notified 48- hours in advance prior to any excavation work, 6.0 PROPERTY DAMAGE 6.1 Any damage to private property caused by Contractor shall be immediately reported to the property owner. Contractors shall pay for any damage caused to private property in performing this agreement. 7.0 ACCESS TO PRIVATE PROPERTY 7.1 Prior to any work involving private property, the Contractor shall notify the City of the proposed work and obtain all necessary permits and/or consent required from City and/or property owner 8.0 PROTECTION AND RESTORATION OF EXISTING IMPROVEMENTS 8.1 The Contractor shall protect City and/or private property adjacent to work areas including sprinkler systems, drain pipes, lawns, brick work, plantings, masonry work, fences, walls, sidewalks, street paving, etc., located on either public or private property. Contractor shall, at its expense, replace any property that is removed or damaged, other than property pre -approved for removal. Contractor shall abide by the City's "Policy for Driving on Park Property" (See Attachment 4). 9.0 TRAFFIC.CONTROL 9.1 The Contractor will not interrupt traffic flow on City streets without obtaining a no -fee permit from the City. Prior to performing maintenance activities where Contractor employees work immediately adjacent City vehicular lanes or any other situation covered under the California MUTCD, the Contractor shall implement no -fee permitted City approved traffic safety plans to protect the health and welfare of its employees and the general public prior to commencement of the agreement. 10.0 MONTHLY REPORTS 10.1 Prior to the first of each month the Contractor shall submit to the Director's Representative for approval: 1) the Excel Park Maintenance Inspector's Inspection Schedule including a detailed annual, monthly, weekly and daily work schedules consistent with task frequencies in Exhibit A; 2) certified payroll of employees assigned to the contract areas; 3) organizational chart or equal listing the names, titles, schedules and assignments of all persons working on the project; 4) invoices and packing slips of name, type and quantities of commodities purchased; 5) annual/monthly pesticide use report completed on the City's Excel form; 6) irrigation report including, but not limited to, name of park/facility, location in park/facility, controller letter, station numbers and their description (priority turf, groundcover, shrub, annual color) days of week on/off, run times, start times, water budget percent, weekly ET, percent of ET programmed, a City of Santa Ana RFP 16-063 Page 28 25K-28 detailed description of system deficiencies and schedule of repairs; and, 7) "green waste" recycling report. The information contained in the above referenced documents shall be updated with any new information as changes occur. The Director's Representative shall be immediately notified of any changes to the above information. Failure to submit a report by the first of each month shall result in a fine of $100.00 per day for each report submitted late. 11.0 WATER CONSERVATION & PROGRAMMING OF CONTROLLERS 11.1 The City shall be responsible for programming irrigation controllers and conserving water. The Contractor shall be responsible for all repairs and performing the weekly visible irrigation checks and the providing a monthly written irrigation test report by park/controller/station. 12.0 SPECIFICATIONS INTERPRETATION 12.1 The intent of these specifications is (mown by the City of Santa Ana and SAPRF. Any questions relating to the interpretation of these specifications must be addressed, in writing, prior to the start of work. The Contractor agrees that interpretations of this contract after the start of work are at the sole discretion of the Director's Representative, and the Contractor shall abide by all such interpretations 13.0 PROTECTION OF EXISTING FACILITIE&AND STRUCTURES 13.1 The Contractor shall exercise due care in protecting from damage all existing facilities, structures, and utilities, both above surface and underground on the City's property. Any damage to City, Santa Ana Park and Recreation Facilities (SAPRF), or private property caused by the Contractor's neglect shall be corrected and paid for by the Contractor at no cost to the City of Santa Ana or SAPRF. The City of Santa Ana and/or Director's Representative shall make the determination of fault. The Director's Representative reserves the right to issue a Stop Work Notice if the Contractor does not promptly repair any damage, within twenty-four (24) hours of the damage incurred. 13.2 If the Directors Representative requests or directs the Contractor to perform work in a given area, it will be the Contractor's responsibility to verify and locate any underground systems (i.e. utility lines) and take responsibility for taking reasonable precaution when working in these areas. 13.3 Contractor shall call Underground Alert (800) 422-4133) at least two working days prior to digging for line locations. Any damage or problems shall be reported immediately to the Director's Representative and the City of Santa Ana. If the Contractor discovers something unexpected or a unique problem occurs, he should stop work and immediately contact an authorized Director's Representative for a timely resolution of the problem. 14.0 SUBSTITUTIONS City of Santa Ana RFP 16-063 Page 29 25K-29 14.1 Whenever a specific type of material is specified, no substitutions shall be allowed without written consent of the SAPRF representative. 15.0 CERTIFICATION & APPLICATION OF MATERIALS 15.1 All materials shall be delivered on the site in original containers, Materials shall be subject to inspection by the Director's Representative. The Director's Representative will not approve materials not meeting the SAPRF standards, and Contractor shall return any such non -satisfactory items at his/her cost. 15.2 No materials shall be applied prior to the Director's Representative verifying the specified quantities of materials. Furthermore, should the Contractor apply materials before the Director's Representative verifies correct materials and quantities, the Contractor shall not receive credit for the applied materials. The Contractor shall then reorder and deliver the materials, thereby not receiving credit for the applied materials. 16.0 CONTRACTOR NEGLECT 16.1 Any damage to the City of Santa Ana, SAPRF, or private property, which has been determined to be due to the Contractor's neglect, shall be corrected at no additional cost to the City of Santa Ana or the SAPRF. 17.0 CONSTRUCTION EQUIPMENT 17.1 The Contractor shall take all necessary precautions for safe operation of his equipment and the protection of the public from injury and damage from such equipment. 18.0 . SOUND CONTROL REQUIREMENTS 18.1 The Contractor shall comply with all local sound control and noise level rules, regulations and ordinances that apply to any work performed pursuant to the Contract. Each internal combustion engine used for any purpose on the job or related to the job shall be equipped with a muffler of a type recommended by the manufacturer of such equipment. No internal combustion engine shall be operated on the project without said muffler, Full compensation for conforming to the requirements of this section shall be considered as included in the prices paid for the various contract items of work involved and no additional compensation will be allowed therefore. Sounds, such as loud music, that are not related to the project, shall be kept at levels so as to not disturb the general public. 19.0 INQUIRIES AND COMPLAINTS 19.1 The Contractor shall maintain an office at some fixed place and shall maintain a telephone thereat, listed in the telephone directory in his own name or in the firm name by which he is most commonly known. Furthermore, the Contractor shall, at all times, have some responsible person(s), employed by the Contractor, to take the necessary action regarding all inquiries and complaints that may be received from the City of Santa Ana, Director's Representative, and/or private citizens during normal working hours. City of Santa Ana RFP 16-063 Page 30 25K-30 Whenever immediate action is required to prevent impending injury, death or property damage to the facilities being maintained, the Director's Representative may, after reasonable attempt to notify the Contractor cause such action to be taken by the SAPRF work force. All costs of any such action shall be charged against the Contractor, or the Director's Representative may deduct such cost from any amount due to Contractor. All complaints shall be abated as soon as possible after notification, to the satisfaction of the City of Santa Ana and/or Director's Representative. If any complaint is not abated within a reasonable time, the Director's Representative shall be notified immediately of the reason for not abating the complaint followed by a written report to the Director's Representative within five (5) days. If the complaints are not abated within the time specified or to the satisfaction of the Director's Representative, the Director's Representative may correct the specific complaint and the total cost incurred by the SAPRF will be deducted and forfeit from the payments owing to the Contractor from the SAPRF. Such cost shall include all SAPRF staff time required to resolve the problem and appropriate overhead charges 20.0 NOTIFICATION OF LOCATIONS OF WORK 20.1 The Contractor shall notify the Director's Representative when the contractor's crews will be working within the SAPRF. Said notifications will be made on a daily basis by telephone, cell phone, fax, or by weekly written schedules which specify the entire weeks work locations. 21.0 WORK FORCE 21.1 The Director's Representative may evaluate each of the Contractor's staff and if he/she finds that a Contractors employee or sub -contractor's employee is not performing to the satisfaction of the Director's Representative, the Director's Representative shall require the Contractor to remove the employee from work sites at his or her discretion within 24 hours of written notice. 22.0 MATERIALS 22.1 The Director's Representative shall approve or reject all materials delivered to the work site. In addition, the Contractor shall not apply any materials until the Director's Representative inspects the materials to confirm they are correct per specifications. Note that the Director's Representative may stay at the work site to confum that all materials are applied correctly and in the quantities specified. Materials applied by the Contractor prior to the Director's Representative inspecting the materials shall be considered not applied. Therefore, the Contractor shall not be given credit towards the quantity of the specified material required to be applied by the specification. The Contractor shall then be required to deliver the specified quantity of material to the work site and, following the Director's .Representatives approval, apply the materials in the presence of the Director's Representative: Prior to the application or use of any materials the Contractor shall submit to the Director's Representative a minimum 48 hours before delivery to the work site a list of all materials and/or chemicals that may be used pursuant to the terms of this Agreement. City of Santa Ana RFP 16-063 Page 31 25K-31 The list shall include the name of the product, the products specifications, and the quantity of materials, prescribed method of use/application, Material Safety Data Sheets and chemical analysis where applicable, recommended usage and any other manufacturer's data that may be pertinent. The list must be submitted before any materials/chemicals are used pursuant to this Agreement. 22.1.1 The materials and chemicals utilized in furtherance of this Agreement shall comply with the following standards: All fertilizers shall be complete, furnishing the required percentage of nitrogen, phosphoric acid and potash to keep turf, trees, shrubs and other plants in a healthy and vigorous growing condition. Pesticides including but not limited to: Insecticides, fungicides, herbicides, algaecides, aviacides, and rodenticides shall be of the best quality obtainable and available on the market, properly labeled with guaranteed analysis, and brought to the job site in the manufacturer's original container. Materials shall as specified herein, matching those existing at the work site, or as specified by the Director's Representative. 22.1.2 All materials delivered to the site shall be accompanied by a packing slip or other form from the vendor indicating the specific commodity delivered and the quantity. 23.0 TRASH DISPOSAL AND RECYCLING All organic waste (including leaves, grass clippings, brush, branches, and tree parts) resulting from work performed under this contract shall be disposed of pursuant to the requirements of the Santa Ana Municipal Code (SAMC) Chapter 16. Organic waste cannot be taken to a landfill. Every month, the Contractor shall submit receipts from licensed composters/green waste recycling facilities, to the Director listing the tons of organic waste recycled and the names and addresses of the composting or processing companies. As an alternative, the City may allow Contractor to dispose of green waste and trash in bins provided by the City. The City will determine the amount of green waste and trash allowed to be dumped in these bins based on historical amounts. Any additional disposal fees must be paid by Contractor. At no time will the contractor be allowed to dispose of trash or green waste that was not collected as part of this contract. If the City finds that the contractor is disposing of trash from other contracts, the City will discontinue this service for the contractor and the contractor will be required to pay for their own trash service.\ City Responsibilities 1.0 CITY -DIRECTOR'S AUTHORITY The Director's Representative is the only person authorized to direct changes in any of the requirements under the Agreement and, not withstanding any provisions contained elsewhere in the Agreement, and said authority remains solely in the Director's Representative. In the event that the Contractor effects any such changes at the direction of any person other than the Director's Representative, the changes will be considered to have been made without authority City of Santa Ana RFP 16-063 Page 32 25K-32 and solely at the risk of the Contractor. In addition, the Director's Representative shall have the authority to accept/reject materials, workmanship and to make changes in work or schedule, when the City determines that no extra costs are involved. The Director's Representative shall also have the authority to suspend portions of the specifications and withhold the cost of the suspended portion of the agreement at his/her discretion. The intent of these specifications is known by the City of Santa Ana. Any questions relating to the interpretation of these specifications must be addressed, in writing, prior to the start of work. When the performance of the work or completion per schedule is determined to be sub -standard or not on schedule, the Director's Representative may recommend that all or a portion of payment be withheld. In addition, the Director's Representative shall have the option to hire another qualified contractor to perform any portion of the work specified and withhold payment in the amount of the cost to hire the qualified contractor. Payment to be withheld shall be deducted from the next or subsequent monthly payment due, or if the amount is insufficient to cover payment, the Contractor shall be liable for said deficiency and will be billed accordingly, The Director's Representative shall decide all questions, which may arise as to the interpretation of the quality of work, manner of performance, completion per schedule, acceptable fulfillment of the Agreement by the Contractor, interpretation of the specifications, and compensation, including completion of work by alternate sources. Special Requirements See -ATTACHMENT 4: ADDITIONAL PROVISIONS City of Santa Ana RFP 16-063 Page 33 25K-33 APPENDIX ATTACHMENT 4: ADDITIONAL PROVISIONS 1. TERM This Agreement shall commence on upon execution of the agreement through June 30, 2018 with the option for the City to grant up to two one-year renewal options, at the same fee structure identified in Attachment 3-6 Fee Schedule, exercisable by the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15, below. 2. ADDITIONAL SERVICES The City reserves the right to request additional services associated landscape maintenance. Prior to performance of any work the City will negotiate scope/pricing and the contractor must provide a quotation for the requested work that is to be approved in writing by the City. City written approval may be in the form of an "Authorization for Extra Work" form. 3. ANNUAL COLOR PLANTING AND MAINTENANCE SPECIFICATION Before each annual planting the area should be tilled 8 to 16 inches deep. Organic matter in the form of nitrified redwood must be incorporated to a depth of 8" of the top soil. The contract administrator may adjust this if adequate organic matter is already present in the soil but the successful bidder must be prepared to incorporate this organic matter at every color rotation. Organic matter must comprise 25% of the soil volume where the roots will be. This requires 2" of nitrified redwood tilled to an 8" depth. Apply 1.5 pounds of nitrogen per t000 sq. ft. as a complete low nitrogen material with a ratio of 1:2:1, 1:1:1, 1:2:2 or similar. Do not use a higher rate of nitrogen as this may result in excessive vegetative growth and a suppression of flowering. After establishment, fertilize as necessary to maintain a robust appearance and maximum flowering. After incorporating organic material and other supplements, the beds must be raked smooth and slightly mounded. Sticks clods and other material mast be removed from the bed. During planting gently crush the root mass with the fingers to stimulate root growth in the surrounding soil. Begin planting in the center of the bed and keep traffic in the worked soil to a minimum. Make the hole slightly larger than the root ball and set the plant at the same depth or slightly higher than it was growing in the container. Smooth out the soil around the plants after planting, including footprints. Water plants to a depth of 5 inches immediately after planting for 4" plant material (deeper for larger pots). Plants are to be rotated four times a year and are to be kept disease free and healthy on a consistent basis. There must be no dead or missing plants at any time and the beds must be kept in a weed free condition. Plants will be in 4" pots and will be planted in an 8" triangular spacing pattern. Rows must be in a straight alignment at the time of planting. Plant species that may be planted at different times of the year may include, but not be limited, to the following annual bedding plants as approved by the Director: Spring/Summer—April through October 1 Alyssum, Lobelia, Salvia, Marigold, Gloriosa Daisy, Penstemon, Cosmos, Dahlia, Impatiens, Begonias, Double Impatiens, Petunia, Verbena, Vinca rosea (periwinkle) Zinnias • Fall/Winter Iceland poppies, Pansies, Viola, Stock, Snapdragons, Primroses, Ranunculus City of Santa Ana RFP 16-063 Page 50 25K-34 Contractor shall check annual color beds daily (Monday through Friday). If plants are missing or vandalized, the Contractor shall provide the City's representative with a proposal to replace missing/damaged plants. After the City's Representative signs the proposal, the Contractor shall then replant/replace missing/damaged plants within 48 hours. The City's contract administrator shall be the sole judge of whether the above specifications are met. The contract administrator shall also approve the types and combinations of color bedding plants prior to installation, 4, STA SEED TOPPER TESTING REQUIREMENTS (IS THIS NEEDED) The purpose of this specification is to assure that compost products, such as mulch and seed topper, are of high quality by evidence of meeting the U.S. Composting Council's Compost Analysis Proficiency Program (CAPTP) requirements. All compost products must meet or surpass all the requirements specified in the CAPTP program, including but not limited to, having compost products tested by a CAPTP certified lab. All products must be tested and approved by a CAPTP certified lab within 30 days of delivery to the City of Santa Ana. The Director's Representative reserves the right to take samples of compost products delivered or used in the City of Santa Ana and submit the samples to a CAPTP certified lab to verify that the compost products meet or exceed the requirements set forth by the CAPTP. Should products delivered or used in the City of Santa Ana not meet the CAPTP compost requirements, the City will consider this as a failure to perform by the contractor. 5. POLICY FOR DRIVING ON PARK PROPERTY Driving on park turf is allowed only when necessary to perform an official City maintenance or business function, and under the following circumstances: A. When delivering over 30 lbs.. of equipment or supplies to ajob site B. When there is no improved surface within 40 yards of the worksite C. When emergency personnel are responding to an emergency, or performing other City business When driving on park turf, employees and contractors must, to the best of their ability, avoid damage to sprinkler heads, valve boxes, other irrigation systems components, trees, ground cover and other park amenities. D. Vehicles weighing in excess of 8,000 lbs. are not allowed on park turf without prior approval of the Park Services Supervisor. If approved, the Park Services Supervisor or his designee will meet with the employee or contractor and designate the path in and out of the park that will be the least likely to cause damage. E. Employees and contractors must avoid driving on turf any time damage is likely. This includes periods after rain and heavy watering. F. Driving on designated DG pathways and other improved pathways is acceptable when performing visual inspection of park, park projects, and amenities. Driving on turf is not acceptable in these situations. City of Santa Ana RFP 16-063 Page 51 25K-35 APPENDIX ATTACHMENT 5: TREE SERVICE SPECIFICATION 1.0 INTRODUCTION Trees and other woody plants respond in specific and predictable ways to pruning and other maintenance practices. Careful study of these responses, has led to pruning practices, which best preserve and enhance the beauty, structural integrity, and functional values of trees. In an effort to promote practices, which encourage the preservation of tree structure and health, the following policies and procedures have been established. These specifications are presented as working guidelines, recognizing that trees are individually unique in form and structure, and that their pruning needs may not always fit strict rules. 2.0 OVERVIEW OF SPECIFICATIONS Any tree work performed in the City of Santa Ana Park and Recreation Facilities (SAPRF) must be done according to the SAPRF specifications. There are different criteria for pruning depending on the purpose for the pruning. 2.1 Complete Prune Specifications are used when circumstances deem the entire tree needs to be fully pruned. 2.2 Complete and Aesthetic Specifications are used when circumstances deem the entire tree needs to be fully pruned and in addition shall be reduced on the perimeter of the tree canopy to provide a formal appearance. Examples of when Complete and Aesthetic pruning may occur are government civic centers, commercial -retail centers, and formal landscapes where uniformity in appearance is required. 2.3 Safety Prune Specifications require less pruning and are used when specific, possibly hazardous (dead/dying) limbs need removal to eliminate all safety concerns. Safety pruning may be recommended in some circumstances instead of a complete prune. Safety pruning specifications are used for "as needed" pruning as outlined above and address only safety concerns. Safety pruning includes only the basic requirements and does not include the fine pruning detail work outlined in a complete prune. 2.4 Power Line Clearance Prune (PLC) Specifications are used for private tree power line clearance work and for street tree (PLC) pruning when the tree is pruned between its periodic complete pruning cycles. 2.5 Palm Pruning Specifications are used when pruning any type of palm. All specifications are based on International Society of Arboriculture, National Arborist Association and American National Standards Institute criteria. This guarantees that SAPRF trees receive the best possible care. 3.0 GENERAL REQUIREMENTS The following requirements shall be used during any pruning work to be performed on SAPRF trees: City of Santa Ana RFP 16-063 Page 52 25K-36 3.1 Proper disposal of all tree debris generated. 3.2 Assuring good traffic control and minimize disruption of the public. 3.3 Assuring adequate safety of employees and the public. Prior to starting any tree work on an SAPRF tree, the Contractor must contact an authorized SAPRF representative. 4.0 ISA CERTIFICATION REQUIREMENTS The Contractor shall employee a full-time, permanently certified personnel, as accredited by the International Society of Arboriculture. 4.1 The Contractor shall employee an ISA Board Certified Master Arborist® to oversee the project. The ISA Board Certified Master Arborist® credential is the highest level of certification offered by ISA. This credential recognizes ISA Certified Arborists® who have reached the pinnacle their profession. In addition to passing an extensive scenario - based exam, candidates must abide by a Code of Ethics, which ensures quality of work. Fewer than two percent of all ISA Certified Arborists® currently hold this certification. 4.2 The Contractor shall employee an ISA Certified Arborist®-Tree Risk Assessment Qualification (TRAQ) Working/On Site Supervisor to be on site at all times work is in progress to manage the correct pruning of the trees. To earn an ISA Certified Arborist® credential, you must be trained and knowledgeable in all aspects of arboriculture. ISA Certified Arborist® have met all requirements to be eligible for the exam, which includes three or more years of full-time, eligible, practical work experience in arboriculture and/or a degree in the field of arboriculture, horticulture, landscape architecture, or forestry from a regionally accredited educational institute. This certification covers a large number of topics giving the candidates flexibility in the arboricultural profession. TRAQ is an ISA qualification program that trains arborists how to use the methodologies outlined in the ISA Best Management Practices for Tree Risk Assessment. This qualification promotes the safety of people and property by providing a standardized and systematic process for assessing tree risk. The results of a tree risk assessment can provide tree owners and risk managers with the information to make informed decisions to enhance tree benefits, health, and longevity. A Code of Ethics for ISA Certified Arborists® strengthens the credibility and reliability of the work force. This certification is accredited by the American National Standards Institute, meeting and exceeding ISO 17024. 4.3 All Contractor Working/On Site Supervisor shall be ISA Certified Tree Worker Climber Specialist® and/or The ISA Certified Tree Worker Aerial Lift Specialist®. To be a ISA Certified Tree Worker Climber Specialist®, candidates must have the skill and endurance to climb trees, demonstrate high regard for safety, and be able to get the job done off the ground. This credential is different from the other certifications because you ARE tested in both a classroom setting and a field setting. Candidates must have training in aerial rescue, CPR, and First Aid to obtain this certification. 4.4 The Contractor's employees shall be ISA Certified Tree Worker Aerial Lift Specialist when working on trees beneath or in the vicinity of utilities. The ISA Certified Tree City of Santa Ana RFP 16-063 Page 53 25K-37 Worker Aerial Lift Specialist® requires candidates to demonstrate their ability to perform as a competent aerial lift operator. The knowledge gained with this certification can improve the productivity, quality of care, and safety practices of those who earn the credential. Along with proven knowledge of CPR and first aid, candidates have been tested on safety procedures, and must be able to complete thorough truck and tree inspection. 5.0 SPECIFIC TREE PRUNING SPECIFICATIONS 5.1 All persons performing tree work on SAPRF trees must be trained according to tree care standards accepted by the International Society of Arboriculture. 5.2 All persons performing tree work on SAPRF trees in or around primary electrical lines must be trained to do so according to the "Electrical Safety Orders" of the State of California, including all amendments and revisions. 5.3 When tree pruning cuts are made to a side limb, such remaining limb must possess a basal thickness of at least one third (1/3) of the diameter of the wound so affected. Such cuts shall be considered proper only when such remaining limb is vigorous enough to maintain adequate foliage to produce wood growth capable of callusing the pruning cut so affected within a reasonable amount of time. 5.4 All final tree pruning cuts shall be made in such a manner so as to favor the earliest possible covering of the wound by natural callus growth. Flush cuts, which produce large wounds or weaken the tree at the cut, shall not be made. The branch collar shall not be removed. 5.5 Tree limbs shall be removed and controlled in such a manner as to cause no damage to other parts of the tree, or to other plants or property. 5.6 All tools used on a tree known to contain an infectious tree disease shall be properly disinfected immediately before and after completing work on such tree. All major diseases and/or pest problems shall be promptly reported to an authorized SAPRF representative. 5.7 All cutting tools and saws used in tree pruning shall be kept sharpened to result in final cuts with smooth wood surface and secure bark remaining intact. All trees six (6) inches in diameter or less shall be pruned with hand tools only. Chain saws will not be permitted on any trees six (6) inches in diameter or less. This is to prevent any unnecessary abrasions to cambial tissue that may predispose a tree to insect and/or disease problems. 5.8 Whenever pruning cuts are to be made, while removing limbs too large to hold securely in one hand during the cutting operation, the limbs shall be cut off first, one (1) to two (2) feet beyond the intended final cut. Then the final cut shall be made in a manner to prevent unnecessary tearing back of the bark and wood. Such cutting back shall not include the removal of any live, healthy limbs in excess of six (6) inches in diameter without prior approval from an authorized SAPRF representative. City of Santa Ma RFP 16-063 Page 54 25K-38 5.9 No more than twenty five (25) percent of the live wood may be removed from the crown of any tree, without approval of an authorized SAPRF representative, excepting live oaks, which are limited to no more than ten (10) percent. Resulting in keeping as much of the crown of the tree as possible. 5.10 Any extraneous metal, wire, rubber or other material (i.e. stakes, ties) interfering with tree growth shall be removed immediately. 5.11 Any defective or weakened trees shall be reported to an authorized SAPRF representative. Specifically, any structural weakness of a tree, decayed trunk or branches, shall be reported in writing, noting the location of the tree by street address and a description of the hazard found in the tree. 5.12 The use of climbing spurs or spike shoes in the act of pruning trees is prohibited, except palms that are more than sixty-five (65) feet in height. 5.13 Beneficial animal, bird nests, nesting cavities or other wildlife habitat shall be preserved and protected whenever feasible, unless doing so would create a hazard. 6.0 COMPLETE TREE PRUNING SPECIFICATIONS Complete tree pruning shall consist of the total removal of dead or living branches that may threaten the future health, strength and attractiveness of trees. Specifically, trees shall be pruned in such a manner as to: 6.1 Prevent branch and foliage interference with requirements of safe public passage. Over street clearance shall be kept to a minimum of sixteen (16) feet above the paved surface of the street, fifteen (15) feet above the curb and eight (8) feet above the surface of a public sidewalk or pedestrian way. Exceptions are allowed for young trees, which would be irreparably damaged by such pruning action. 6.2 Remove all dead and dying branches and branch stubs that are one half (1/2) inch diameter or larger. 6.3 Remove all broken or loose branches. 6.4 Remove any live branches, which interfere with the tree's structural strength, and healthful development, which will include the following: 6.4.1 Branches, which rub and abrade a more important branch. 6.4.2 Branches of weak structure, which are not important to the framework of the tree. 6.4.3 Branches, which if allowed to grow, would wedge apart the junction of more important branches. 6.4.4 Branches forming multiple leaders in a single leader type tree. 6.4.5 Branches near the end of a limb, which will produce more weight or offer more resistance to wind than the limbs are likely to support. 6.4.6 Selective removal of undesirable sucker and sprout growth paying specific attention not to nick or damage the sprout "burl". 6.4.7 Selective removal of one or more developing leaders where multiple branch growth exists near the end of broken or stubbed limbs. City of Santa Ana RFP 16-063 Page 55 25K-39 6.4.8 Selective removal of limbs obstructing buildings or other structures or traffic signs. Generally, limbs closer than five (5) feet to a building or other structure should be removed unless doing so would severely damage a tree. 6.4.9 Removal of branches, which project too far outward beyond an otherwise symmetrical form. 6.5 Cut back ends of branches and reduce weight where excessive overburden appears likely to result in breakage of supporting limbs. 6.6 Clear trees of sprout or sucker growth to a minimum height of eight (8) feet above ground level. Exceptions are allowed for young trees, which would be irreparably damaged by such pruning action. 6.7 Obtain a balanced appearance when viewed from the opposite side of the street immediately opposite the tree, unless authorized by an SAPRF representative to do otherwise. 6.8 Remove all vines entwined in trees and on tree trunks. Vine tendrils shall be removed without injury to said trees. 6.9 Clear all branches and foliage within ten (10) feet of primary electrical lines and three (3) to five (5) feet of secondary electrical lines. 6.10 Clear all branches that interfere with telephone, cable and other utility lines within one (1) foot of lines, wherever feasible. 7.0 COMPLETE & AESTHETIC TREE PRUNING SPECIFICATIONS Complete and Aesthetic tree pruning shall consist of work performed in accordance with the specifications in 6.0 Complete Tree Pruning Specifications and in addition shall include that trees shall be consistently and concisely pruned whereby the canopies are "topiaried" in forms consistent with the species of tree being pruned. In specific cases where a group of same specie trees are present, the group of trees may be required to be "topiaried" all the same size and shape. 8.0 SAFETY TREE PRUNING SPECIFICATIONS Safety tree pruning shall consist of the total removal of dead or living branches that may menace the future health, strength and attractiveness of trees. Specifically, trees shall be pruned in such a manner to; 8.1 Prevent branch and foliage interference with requirements of safe public passage. Over street clearance shall be kept to a minimum of sixteen (16) feet above the paved surface of the street, fifteen (15) feet above the curb and eight (8) feet above the surface of a public sidewalk or pedestrian way. Exceptions are allowed for young trees, which would be irreparably damaged by such pruning action. 8.2 Remove dead and dying branches and branch stubs that are two (2) inches in diameter or more. 8.3 Remove all broken or loose branches. City of Santa Ana RFP 16-063 Page 56 25K-40 8.4 Removing any live branches, which interfere with the tree's structural strength and healthful development, will include the following: 8.5 Limbs of weak structure or otherwise hazardous. 8.6 Selective removal of limbs obstructing buildings or other structures or traffic signs. Generally, limbs closer than five (5) feet to a building or other structure should be removed unless doing so would severely damage a tree. 8.7 Clear trees of sprout or sucker growth to a minimum height of eight (8) feet above ground level. Exceptions are allowed for young trees, which would be irreparably damaged by such pruning action. 9.0 POWER LINE CLEARANCE (PLC) PRUNING SPECIFICATIONS When trees are in the proximity of overhead energized lines and equipment, reliability of service, safety, and governmental standards require a reasonable amount of tree pruning to avoid conductor contacts and grounding of circuits through the trees. Power line clearance pruning, therefore, shall consist of the removal of tree branches for proper electric line clearance in order to minimize the likelihood of power outages and improve safety. Specifically, trees shall be pruned in such a manner as to: 9.1 Clear all branches and foliage within ten (10) feet of primary electrical lines. 9.2 Clear all branches that interfere with secondary electric lines within three (3) to five (5) feet. 9.3 Protect current tree health, condition and symmetry using Dr. Alex Shigo's book, Pruning Trees Near Electric Utility Lines as a guide. During the tree pruning process, all safe minimum working distances for energized conductors shall be observed. These clearances are defined under ANSI Z133.1-1994. Current ANSI specifications will supersede these requirements when they take effect. Any contact with energized lines shall be promptly reported to an authorized SAPRF representative. Access to backyards must be closely coordinated with the property owner, whenever feasible. Spikes may be used for PLC pruning on palms or other trees only when needed for proper safety reasons. 10.0 PALM PRUNING SPECIFICATIONS Palms shall be pruned at the 10:00 and 2:00 o'clock positions. Palm pruning shall consist of the pruning of the following, but not limited to, palms (Syagrus romanzoffianum (queen palm), Archontophoenix cunninghamiana (icing palm), Phoenix Canariensis (Canary Island date palm), Phoenix Dactylifera (date palm), Washingtonia filifera (California fan palm); and Washingtonia Robusta (Mexican fan palm) per these specifications, 10.1 The removal of all dead fronds and other dead plant parts from the trunk. All loose frond sheaths shall be removed along the entire length of the palm trunk. City of Santa Ana RFP 16-063 Page 57 25K-41 10.2 The shaping of the palms "pineapple" beneath the fronds to achieve a consistent and aesthetic appearance. 10.3 The removal of all flowers and fruit parts whether dead or alive. 10.4 The use of climbing spurs or spike shoes in the act of pruning trees is prohibited, excepting palms that are more than sixty-five (65) feet in height. 10.5 Palms, especially, the Canary Island Date Palm (Phoenix Canariensis) trunks shall be cleaned of any weed species. The immediate area below the green fronds shall be trimmed to a symmetrical (pineapple) appearance. The shape shall not exceed a minimum of forty-eight (48) inches or a maximum of sixty- (60) inches length below the green fronds. The trunk when pruning operations are complete shall be left in a clean, unscathed appearance throughout the entire length of the palm trunk. Canary Island date palms shall be pruned using a sterilized handsaw. The handsaw must be cleaned and sterilized before and after pruning each tree. 10.6 All volunteer palm seedlings must be removed that are growing within the streets, parkways, or setback dedicated areas. 11.0 UNACCEPTABLE PRUNING The following procedures, or others that will result in tree decline, are not allowed (storm damage and other extenuating circumstances exempted): 11.1 Severe cutting back of all growing tips usually referred to as topping, pollarding, or hat racking. 11.2 Flush cutting where. a cut. is made even with the surface of the trunk or limb, removing the branch collar and branch bark ridge. 11.3 Stub cutting where branch removal results in the base of branch removed protruding more than approximately one fourth (1/4) inch beyond the zone of branch collar and branch bark ridge. 11.4 Removal of a healthy main leader, for reasons other than power line clearance. 11.5 Excessive cutting or lifting that exceeds the International Society of Arboriculture or SAPRF standards. 12.0 DAMAGE TO PUBLIC OR PRIVATE PROPERTY Should any structure or property be damaged during the tree pruning operations, the persons conducting the work shall immediately notify the proper owners and an authorized SAPRF representative. Repairs to property damaged by the responsible party shall be made within forty- eight (48) hours, except utility lines, which shall be repaired the same working day. Repairs on private property shall be made in accordance with the appropriate building code under permits. issued by the City of Santa Ana. Any damage caused by the Contractors employees shall be repaired or restored by them at their expense to a condition similar or equal to that existing before such damage or injury, or they shall repair such damage in a manner acceptable to the City of Santa Ana and/or SAPRF. Special attention is drawn to sprinkler systems in City City of Santa Ana RFP 16-063 Page 58 �m �� landscapes and the need to avoid damage. All damage to irrigation systems shall be repaired as soon as possible at Contractors expense. 13.0 WORK PERFORMED ON PRIVATE PROPERTY No SAPRF contracted tree worker shall perform work upon private property without the written consent of the property owner and an authorized SAPRF representative. 14.0 PUBLIC SAFETY AND COOPERATION All tree work shall be conducted in a manner as to cause the least possible interference with, or annoyance to others. Pedestrian and vehicular traffic shall be allowed to pass through the work areas only under conditions of safety and with as little inconvenience and delay as possible. Unless the work area is totally barricaded or otherwise kept safe, at least one worker shall serve to coordinate safe operations on the ground at all times when work operations are in progress. 14.1 Whenever larger tree sections are being cut in a treetop, which may endanger persons or property, such sections shall be secured by ropes and lowered safely to the ground in a controlled manner. 14.2 All fire hydrants, meter vaults, water and gas shut off valves, backflow devices, irrigation field controllers and similar facilities must remain accessible during the course of work. 14.3 Noise levels, resulting from tree work operations, must be kept to a minimum at all times. All tree work operations are subject to compliance with all local Noise Restrictions. Operation of tree work equipment shall not take place between the hours of 9:00 p.m. and 7:00 a.m. weekdays, or between 9:00 pm and 8:00 am on weekends (Saturday and Sunday). Emergencies are exempt from any time restrictions. 14.4 All tree work done to SAPRF trees must comply with all tree related safety requirements as stated in the safety standards ANSI Z133.1-1994 of the American National Standards Institute, Inc. 1430 Broadway, New York, NY 10018. 15.0 SITE CLEANUP Cleanup of any debris resulting from any tree pruning operations shall be promptly and properly accomplished. The work area shall be kept safe at all times until all operations are completed. Under no circumstances shall the accumulation of debris be allowed in such a manner as to result in a hazard to the public. All debris from tree operations shall be cleaned up each day before the work crew leaves the site, unless permission is given by an authorized SAPRF representative to do otherwise. All lawn areas, parkways, streets and sidewalks shall be raked and/or blown clean, and all brush, branches, or other debris shall be removed from the site. Areas are to be left in a condition equal to or better than that which existed prior to the commencement of tree pruning operations. All cuttings, branches, wood chips and other debris shall be cleared from the site and disposed of by the Contractor. The Contractor shall obtain permits required for this purpose. Disposal expenses will be the Contractor's responsibility. Debris, such as wood chips, shall be left on property only at the direct and specific request of the owner and an authorized SAPRF representative. Firewood four (4) inches diameter or larger will be left at the work location in a safe manner, unless the wood is not usable as firewood. All firewood to be removed (wood four (4) inches of diameter or larger) must be authorized by an SAPRF representative. City of Santa Ma RFP 16-063 Page 59 25K-43 16.0 TIME FOR COMPLETION If awarded this project, the Contractor agrees to complete the work within the time parameters jointly agreed upon by the City, SAPRF, and the Contractor prior to work commencement, unless specific time deadlines are specified elsewhere in these specifications. Once the work has commenced, the Contractor shall diligently prosecute the same to completion. 17.0 PAYMENTS WITHHELD/PENALTIES Should the Contractor fail to finish the work as agreed upon in these specifications the Contractor shall be charged by SAPRF penalties in the amount of five hundred dollars ($500.00) for each calendar day that the work remains incomplete beyond the dates specified. Any amount so charged shall be deducted by the SAPRF from any monies which otherwise are or become payable to the Contractor. In case all the work called for is not completed in all parts and requirements within the time specified, the SAPRF shall have the right to grant or deny an extension of time for completion, as may be seen best to serve the interests of the SAPRF. The Contractor shall not be assessed with penalties during the delay in the completion of the work caused be acts of God or of the Public Enemy, acts of the State, floods, epidemics, quarantine, restrictions, strikes, or unusually severe weather. The SAPRF representative will ascertain the facts and the extent of the delay, and their findings thereon shall be final and conclusive. 18.0 SUBCONTRACTORS Subcontractors are not allowed without written approval from the City. Subcontractors used in the performance of this project shall be listed in the Contractors Bid Proposal. Subcontractors shall be properly licensed by the State of California as a contractor to perform work of this specialty and hold a valid business permit and certificate of insurance with the City of Santa Ana. Should any subcontractor fail to perform the -work undertaken by him to the satisfaction of the SAPRF, said subcontractor shall be removed immediately from the project upon the request of the SAPRF and shall not again be employed on the project. The Contractor shall be held liable for the correction of any deficient work. 19.0 ADDITIONS AND/OR DELETIONS OF WORK The SAPRF representative reserves the right to add and/or delete tree work on this project as deemed necessary and in the best interest of the SAPRF. Additions and/or deletions shall be made at the unit price accepted by SAPRF upon award of contract. 20.0 INSPECTIONS An authorized SAPRF representative will inspect the work performed by the contractor to insure completion of the pruning in accordance with SAPRF Pruning specifications. Should more than two (2) inspections be required on trees needing additional work, the contractor will be billed for SAPRF staff time. City of Santa Ana RFP 16-063 Page 60 25K-44 APPENDIX ATTACHMENT 6: MAP City of Santa Ana RFP 16-063 Page 61 25K-45 APPENDIX ATTACHMENT 7: APPROVED EQUIPMENT The purpose of this specification is to assure that all maintenance equipment used in the agreement is appropriate for the performance of the work specified, is well maintained and in safe condition for the operators. The Director has the authority direct the Contractor to remove a piece of equipment deemed unsafe, not in top mechanical condition, performing unsatisfactorily or for any reason deemed necessary. All equipment shall be maintained, at the least, to the manufacturer's requirements or specifications. The Contractor shall possess and maintain the following equipment, or approved equals, for the duration of the agreement. The Contractor shall also show that they have back-up equipment or can acquire back-up equipment within 12 hours from the time a piece of equipment fails due to breaks down and/or is directed to be removed due to it being unsafe and/or is performing unsatisfactorily: Mowers 1. Kubota L5060 tractors equipped with turf type tires and tractor powered Trimax ProCutS3-237 91" rotary mowers for priority large turf. 2. Kubota L5060 tractors equipped with turf type tires and tractor powered Trimax ProCutS3-178 69"rotary detail mowers for priority turf areas between trees and other site amenities 3. Walk -behind Reel Mower — Jacobsen Eclipse2 reel mower along skinned infield brickdust areas, turf infields, turf infield foul areas, soccer/football fields, soccer/football out of bound areas and pitches. Turf Sweeper — Toro Rake-O-Vac sweeper 4.75 cubic yard capacity. Turf Verticut Units — Kesmac 5 Gang Vertical Mower with blades 1.25" to 1.5" spacing apart. Aerator — AerWay 3-Point Hitch 75" wide Aerator using Shattertine blades. The aerator shall have all blades intact and not be any less than 6" in length in order to achieve 6" penetration into the soil. Top Dress Turf Tender — Turfco Mete-R-Matic® XL 60.75 cubic foot Topdresser. Turf Slit Seeder — Land Pride OS 1572 Solid Stand Overseeder. Boom Sprayer —John Deere HD200 SelectSpray three-way folding 15/21ft. spray boom fitted on John Deere 24 HP ProGator utility vehicle. Pressure Washer —Landa VNG Series Hot Water Pressure Washer (Electric Powered/Natural Gas Heater) City of Santa Ana RFP 16-063 Page 62 25K-46 May 23, 2015 ADDENDUM NO.1 REQUEST FOR PROPOSAL FOR LANDSCAPE MAINTENANCE (DISTRICT A) RFP REFERENCE NO: 16-063 Notice is hereby given that the City of Santa Ana, Parks, Recreation and Community Services Agency has made certain modifications, additions, and/or deletions, in the specifications to RFP NO: 16-063 FOR LANDSCAPE MAINTENANCE (DISTRICT A). This addendum shall become a part of the original Request for Proposal due by 5:00 p.m, on June 1, 2016. (please provide yourself plenty of time to submit the proposal to allow for parking time, navigating the civic center area and accessing the building) This addendum is provided in response to comments made and questions asked through May 23, 2016. 1) Page 19, item 5.1, Tree Service shall include the following paragraphs: "All trees below 15' shall be pruned four times per year (first week in January, April, July, and October) using hand shears and toppers. Cyads and Palms shall be fertilized two times per year (first week of March and September)." 2) Page 21, item 7.0, General Maintenance and Clean -Up shall include the following: "All pedestrian hardscape areas, including by not limited to grandstand bleachers, ramps, tunnels and sidewalks shall be blown and/or swept clean Monday through Sunday. All site amenities, including but not limited to, signage, benches, hand railing, electrical boxes, public telephones, newspapers machines, cigarette urns, light bollards, etc.., shall be completely wiped clean with a germicidal cleanser and polished continuously as stains and dust appear. All cigarette urns shall be sifted Monday, Wednesday and Friday. The sand in the cigarette urns shall be fresh and leveled. Contractor shall replace cigarette urns sand with #20 white silica sand as needed to maintain a clean, debris free appearance. Grandstand bleachers shall be inspected continuously and wiped clean as stains and dust appear." 3) Page 23 second paragraph, last sentence, the following sentence shall be deleted: "Contractor shall also pressure wash around park restrooms" 4) Page 51 item 3, Annual color planting and maintenance specifications shall be deleted 25K-47 Questions received Question: "Are turf renovations part of the scope?" Answer: Per page 14 of the RFP, the contractor shall perform turf renovation. Question: "Is aeration part of the scope?" Answer: Per page 14 of the RFP, the contractor shall perform turf aeration. Question: "What is the process for moving people in order to mow?" Answer: The contractor is responsible for moving people from turf to perform mowing. If people are unwilling to move, please contact the project manager. Question: "When is mowing currently occurring?" Answer: Mowing is currently done on Tuesdays. Question: "Is the contractor responsible for event trash?' Answer: The contractor is responsible for event trash during and after the events. Question: "Is the contractor responsible for stadium clean up after an event?' Answer: The contractor is responsible for event trash during and after the events. Question: "What is the current contract amount?" Answer: The current contract is for $222,252, but the recommendation is for the proposer to submit a proposal based on an evaluation of this RFP. Question: "How many staff are currently used?" Answer: The city does not monitor the number of staff on the job. This is a performance based contract and the contractor is expected to have sufficient staffing to perform the service requested. Question: "Is irrigation maintenance included" Answer: Per page 15 and 23 of the RFP, the contractor shall perform irrigation maintenance, Question: "Is there a maximum number of pages the proposal submittal should contain" Answer: Proposals should be a maximum of 30 pages total, including cover letter, certifications, fee schedule, etc. Question: "Is the listed equipment required?" Answer: Contractor is required to comply with the specifications of the RFP. Question: "Is the contractor responsible for additional clean up after soccer games?' Answer: The contractor is not responsible for additional clean up after small games. 25K-48 Question: "Is there a schedule of events at the stadium?" Answer: Events are based on when reservations are made and schedules may vary from year to year. For your reference, information from the 2015 football season and a couple of other large events is shown below. March 19-21 & 23 NCAA College Lacrosse Games June 5 Commencement Ceremony June 15-19 Graduations FOOTBALLSEASON 4 Friday MaterDei------- Tesoro 11,- },; Frlilay Sadayl. 12 Saturday SAC ------- L.A. Harbor 1 24 Thursday Santa AnaHS------- LaQuinta 7pm 1.000 1 "Friday'. .,SantaAnaWS.; :BolsaGrande ? 7pm'.%-;:..> .:.::>800, 3 Saturday SAC Saddleback 61)m 1,000 ay, ..._.SanEa'AnaHS_'".::,:,,: �_ .;,. `.:;:Loara.,.,c,' =:.•7pm': 10 Saturday "SAC ChaffeyCollege Ipm 700 y16 FRIDAY MaterDel St John Bosca 7pm ": 5,000 17 Friday SASun Devils ------- TBA istgame @9am-last 1,500 game @ Am 23 Friday Materbei. 56mte Pm 9,000 30 Friday Santa AnaHS ------- Westminster 7pm ^Ipm 1000 ' 31 Saturday SAC ------- Westminster 7D0 6 :.Friday. Saddleback -- Estancia 7 Saturday SA Sun Devils ------- TBA 14 Saturday SAC. Palomar 3 25K-49 7pm 3,000 1st game @ 9am-last 1,500 game @ 7pm Ipm ... 700 Question: "Is an agronomic plan available?" Answer: Attached at the end of the addendum. 25K-50 pLRe a 7�ur�HreTt>tinua�es, ,yTTtaagxenrauu�r,T, WI9,rvdPaw�Bog G0�m.'OPIg49ood Plavlmdr-e-2 G0�bPEyhBmtPlpntlb0e r-T-s I/4•M�Cav�ae 7-1-2pdwMG)#WM TM4 mwnwP.M r-l-s cea onroouwwo7 I CiNeCmlm t93600 0.016 0.% 03T0 1S9 TOTAL ISO GC/�,ub let101Satlov BM G S-RYia�PooJ T-1-2 1 C5vic Cenkr 9SIJl9 0.018 0.% OJ01 106 toe ,I I lia I � 3 civic Cenla 49060D 0,016 Tol 139 WTA 139 Real I 3 0.01G O.OT 0970 ISDI 550 R AL 130 300 25K-51 May 26, 2015 ADDENDUM NO.2 REQUEST FOR PROPOSAL FOR LANDSCAPE MAINTENANCE (DISTRICT A) RFP REFERENCE NO: 16-063 Notice is hereby given that the City of Santa Ana, Parks, Recreation and Community Services Agency has made certain modifications, additions, and/or deletions, in the specifications to RFP NO: 16-063 FOR LANDSCAPE MAINTENANCE (DISTRICT A). This addendum shall become a part of the original Request for Proposal due by 5:00 p.m, on June 1, 2016. (please provide yourself plenty of time to submit the proposal to allow for parking time, navigating the civic center area and accessing the building) Map of District A Attached 25K-52 FEE/RATESSCHEDULE #5944v1 25K-54 V Ar 6 t w A 91 k r I 25K-55 25K-56 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN AMENDMENT TO THE AGREEMENT WITH STRAIGHTLINE COMMUNICATIONS, LLC, IN THE ANNUAL AMOUNT OF $25,000 FOR ADDITIONAL AUXILIARY SERVICES, FOR A NEW ANNUAL AMOUNT NOT TO EXCEED $95,000 (STRATEGIC PLAN NO. 5, 4) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1$ Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an amendment to the agreement with Straightline Communications, LLC, to provide additional auxiliary support services related to community outreach and education by increasing the annual agreement amount by $25,000, for a total annual amount not to exceed $95,000 for the remaining 2 years of the agreement and the 2- year optional extension, if exercised, which increases the total agreement amount by $100,000, to a total of $450,000 inclusive of the 2 year optional extension, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On April 3, 2018, at the conclusion of a competitive bid process, the City entered into a 3-year agreement with Straightline Communications, LLC, to assist with preparation of the annual comprehensive Water Quality Consumer Confidence Report and to provide related auxiliary support services. The auxiliary support services included developing a water conservation campaign, outreach, communications, and other branding services as needed by the Public Works Agency Water Resources Division. Staff recommends amending the existing agreement with Straightline Communications, LLC, to expand their scope of work to include community outreach and education for the dual Water and Census Campaign and additional auxiliary support services (Exhibit 1). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #4 (support neighborhood vitality and livability). 25L-1 Agreement Amendment with Straightline Communications, LLC August 20, 2019 Page 2 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are available for expenditure in Water Quality & Measurement — Professional Services account (No. 06017644-62300) and General Non -Departmental — Professional Services account (No. 01105015-62300) in Fiscal Year 2019-20. Funds will be budgeted for future years as follows: Fiscal Year Accounting Unit Fund Accounting Unit, Amount — Account # Description Account Description FY 19-20 06017644-62300 Water Water Quality, Contract $23,500 Services -Professional General General Non- FY 19-20 01105015-62300 Fund Departmental, Contract $1,500 Services- Professional FY 20-21 06017644-62300 Water Water Quality, Contract $25,000 Services -Professional Extension O tion FY 21-22 06017644-62300 Water Water Quality, Contract $25,000 Services -Professional FY 22-23 06017644-62300 Water Water Quality, Contract $25,000 Services -Professional Amendment Total: $100,000 Fuad % Sweiss, PE, PLS Execut�yle Director Public orks Agency FSS/NS/RR Exhibit: 1. Amendment to Agreement APPROVED AS TO FUNDS AND ACCOUNTS: lZ%�. 41� Kathryn Downs, CPA Executive Director 07 Finance and Management Services Agency 25L-2 Exhibit 1 FIRST AMENDMENT TO AGREEMENT WITH STRAIGHTLINE COMMUNICATIONS THIS FIRST AMENDMENT to the above -referenced agreement is entered into on September 3, 2019, by and between Straightline Communications, LLC ("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-2018-086, dated April 3, 2018, by which Consultant agreed to prepare a comprehensive Water Quality Consumer Confidence Report and to provide related auxiliary support services for the Water Resources Division of the City's Public Works Agency ("Agreement"). B. The Agreement remains in effect through April 2, 2021, with provision for extension, and the parties now wish to expand the scope of work and increase the annual amount to be expended under the Agreement in consideration of the expanded scope. The Parties therefore agree: 1. Section 1, Scope of Services, is amended to include the additional services related to the City's 2020 Dual Water and Census Campaign that are described in Exhibit A, as attached. 2. Section 2.a., Compensation, is amended to increase the total annual sum to be expended under the term of Agreement, including any extension periods, from 570,000 to $95,000. 3. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney By: �Vl l J N M. FUNK Assistant City Attorney KRISTINE RIDGE City Manager CONSULTANT me- inda O'Hanlon Titl : President Page 1 of 2 25L-3 RECOMMENDED FOR APPROVAL FUAD S. SWEISS, PE, PLS Executive Director Public Works Agency Page 2 of 2 25L-4 STATEMEN OF WORK The purpose of this Statement of Work (SOW) is to outline our strategic communications/ marketing activities along with the corresponding budget for the City of Santa Ana's 2020 Water & Census Campaign. EXHIBIT A �,w Ca m pa ign 25L-5 STATEMENT OF WORK-2020 DUAL WATER & CENSUS CAMPAIGN 8/1/2019to4/30/2020 Page 1 2 25L-6 STATEMENT OF WORK-2020 DUAL WATER & CENSUS CAMPAIGN 8/1/2019 to 4/30/2020 INTRODUCTION The City of Santa Ana recognizes the importance of the upcoming 2020 dual Water and Census Campaign in securing federal funding, grants and support for programs impacting housing, education, transportation, employment, health care and public policy, as well as to ensure fair representation in Congress. As such, the City Manager's Office has launched a year -long co - marketing campaign to encourage high participation in the 2020 Water and Census campaign among Santa Ana residents and businesses. The community outreach campaign includes, but is not limited to, community events, marketing, media relations, social media engagement and advertising. In addition to promoting water awareness, the City of Santa Ana is looking to break any barriers to participation by communicating the importance, benefits and ease of participation as well as dispelling any misconceptions/mistrust or concerns about tap water and the 2020 census. The City Manager's office contacted Linda O'Hanlon of Straightline Communications (SLC) to discuss the idea of developing a co -marketing campaign and the City's need for marketing support. While SLC's capabilities encompass strategic communications planning, messaging and Integrated marketing campaigns, the scope of SLC's Involvement [as defined by the City] is limited to the design and development of promotional and marketing items to support the 2020 Water and Census Campaign. Below is a general explanation of activities we anticipate, along with the estimated corresponding budget. DUAL -CAMPAIGN PROMOTIONAL ITEMS Currently, the Water Resources Division has a robust marketing and community outreach program which includes various campaigns. In conjunction with the division's "Every Drop Counts" campaign, SLC will develop, coordinate and oversee the production of dual -branded promotional items to be distributed by Water Resources Division and City Manager's Office staff at community events, and chamber of commerce and neighborhood association meetings. General Scope of Work: SLC will focus on crafting messaging (when appropriate) and developing camera-ready art for various promotional items including dual -campaign branded water pitchers, tee- shirts (men/women/youth), baseball hats, sports bottles, tote bags, post -it notes, notebooks, memory sticks, and reusable grocery bags*. Production includes coordinating the artwork with the City's vendors. * While reusable grocery bags were not discussed at our initial meeting, we believe this item is widely used, functional, widely used and visible. We recommend a promotional campaign with major super markets in Santa Ana, which we can assist in developing. Page 1 3 25L-7 STATEMENT OF WORK-2020 DUAL WATER & CENSUS CAMPAIGN 8/1/2019 to 4/30/2020 2020 MARKETING ITEMS We will design, coordinate and oversee the production of various marketing items to create more awareness, communicate key messaging and educate the public, including: • 1 Kid's Activity Placemat + Crayons for restaurants • 1 Table Top Tent for restaurants • 12020 Calendar (English/Spanish) • 2 Different Custom Printed X-Spider Banners (for display at events, meetings and public venues) • 1 Step'n Repeat Banner (backdrop at events with alternating logos: 150-Year Anniversary, Santa Ana Water, City Seal, 2020 Census) • 1 Bill Insert General Scope of Work: Original design for each of the items listed above. Design of the 28-page calendar will include visually impactful photos of city landmarks and messaging to promote both the Water Campaign and encourage participation in 2020 Census. SLC will be responsible for all copywriting, design, approvals, development of camera-ready art, and coordination of production with the City's vendors. SLC will also develop a letter to restaurant owners to encourage participation by displaying the table top tents and passing out the placemats/crayons to patrons. STUDENT EDUCATION PROGRAM Overview: Engaging school age children with the City's Water Campaign and the 2020 Census Campaign will establish the groundwork for better -informed adults and Santa Ana residents. We will design and coordinate the production of a bilingual (English/Spanish) Kids Activity Book titled "I Count." This Kids Activity Book will not only communicate positive messages to youth about "self - value" and why they are each unique and important, it will also educate youth on why civic involvement is important and how their family's participation will make a difference in their lives. We will also design and coordinate the production of a bilingual (English/Spanish) school pouch with similar branding. Since the Water Resources Division already has in place a student education program through the SAUSD, we will leverage the Division's existing distribution of school materials in September to distribute the "I Count" Kids Activity Book, streamlining the process and saving costs for the City. General Scope of Work: Original design of a 20-page Kids Activity Book complete with word searches, word scrambles, coloring pages, mazes, and other activities to appeal to grade and middle school youth. Original design of the school pouch. We will also develop a letter to school administrators and teachers explaining the importance of the City's dual 2020 Water and Census Campaign and how their support in distributing the Activity Books to students is vital. We will oversee all production with the City's vendors and coordinate distribution with SAUSD administration and Water Resources Division staff. Page 1 4 25L-8 STATEMENT OF WORK-2020 DUAL WATER & CENSUS CAMPAIGN 8/1/2019 to 4/30/2020 MISCELLANEOUS In addition to these key areas, SLC's engagement will include miscellaneous writing projects such as the development of articles for the Santa Ana Green newsletter and other communications platforms, as well as press releases. The miscellaneous budget will include meetings and conference calls with the client. Proposed Budget: $10,000 We recommend a budget of $10,000 for the services and activities outlined in the proposal to support the City of Santa Ana's 2020 Water and Census Campaign. We will track and bill the City of Santa Ana for actual time, never to exceed the budget agreed upon and outlined In an executed agreement. Hours and rates are listed below as well as a breakdown of estimated time/costs upon which we based this budget. Not included in the budget are out-of-pocket expenses (if applicable) such as wire services (e.g., PR Newswire/BusinessWire), photography, printing, and advertising. Should client requests call for out- of-pocket expenses, we will obtain approval prior to incurring any additional costs. Out of pocket expenses will be billed at cost after client approval and once Incurred. 2019 Rates Professional services (e.g., research, creative development, writing, editing, and editorial placement, editorial contact and follow-up, general client counsel and meetings etc.) ., $185 @ hour Graphic design ................................................ Estimated Time For Professional/Design Services $115 @ hour Account Administration (Client meetings, conference calls, research etc.) .................................. $1,250 Camera -Ready Art For 10 Dual -Campaign Branded Promotional Items...........................................$750 Camera -Ready Art For 1 Kid's Activity Placemat + Crayon Box.........................................................$600 Camera -Ready Art For 1 Table Top Tent..............................................................................................$400 Camera -Ready Art For 12020 Calendar......................................................................................... $2,500 Camera -Ready Art For 2 Custom Printed X-Spider Banners..............................................................$800 Camera -Ready Art For 1 Step'n Repeat Banner................................................................................$350 Camera -Ready Art For 1 Bill Insert .......................................................................................................$400 Camera -Ready Art For 20-Page Kids Activity Book......................................................................... $1,225 Camera -Ready Art For School Pouch Miscellaneous Projects..................................................................................................................... $1,500 Professional + Design Services: 70.80 hours................................................................................. $9,975 Page 1 5 25L-9 STATEMENT OF WORK-2020 DUAL WATER & CENSUS CAMPAIGN 8/1/2019 to 4/30/2020 If this Statement of Work is agreeable, please sign, scan and e-mail back to ohanlon@straigthlinecomm.com. Monthly billings are invoiced on the 1st of the month; invoices are due and payable net 30. Note: The budget does not include costs for wire services, photography, printing, mailing or other outside expenses. Page 1 6 25L-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT IN THE AMOUNT OF $696,120; ADOPT A RESOLUTION AMENDING RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN; AND APPROVE A MEMORANDUM OF UNDERSTANDING WITH THE SANTA ANA POLICE MANAGEMENT ASSOCIATION {STRATEGIC PLAN NO. 7, 4, & 6) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER Approve an Appropriation Adjustment to move $696,120 from the General Fund Non - Departmental accounting unit into the appropriate General Fund accounting units noted in Exhibit 1. 2. Adopt a Resolution Amending Resolution No. 2015-026 to effect certain changes to the City's Basic Classification and Compensation Plan. Exhibit 2. 3. Authorize the City Manager and the Clerk of the Council to execute a Memorandum of Understanding with the Santa Ana Police Management Association (SAPMA) for the period July 1, 2018 through June 30, 2021, regarding wages and other terms of conditions of employment as Exhibit 3. The current Santa Ana Police Management Association (SAPMA) Memorandum of Understanding (MOU) expired on June 30, 2018. The City and the SAPMA recently completed contract negotiations resulting in a new three-year MOU. The MOU covers July 1, 2018 through June 30, 2021. The major provisions of this agreement include: 55A-1 Agreement with SAPMA 2018-2021 August 20, 2019 Page 2 1. Term: A three-year term, from July 1, 2018 through June 30, 2021. 2. Salary: a. Effective July 1, 2018, classifications covered by this MOU shall receive a retro-active base salary increase of five (5) salary rate ranges (approximately 2.5%). b. Effective January 1, 2019, classifications covered by this MOU shall receive a retro-active base salary increase of five (5) salary rate ranges (approximately 2.5%). C. Effective July 1, 2019, classifications covered by this MOU shall receive a retro-active base salary increase of eight (8) salary rate ranges (approximately 4%). d. Effective July 1, 2020, classifications covered by this MOU shall receive a base salary increase of eight (8) salary rate ranges (approximately 4%). Retro-active salary increases will be provided to those currently employed on the date the MOU is approved by Council. 3. Sworn Step "E": Effective July 1, 2019, a Step "E" (approximately 5% increase from Step "D") will be added to the sworn classifications in this unit. 4. Sworn Performance Bonus: Performance Bonus and/or Merit Step Advancement available when it is determined that their overall performance significantly exceeds or exceeds expectations as outlined in Section 4.8 of the MOU, at the Chiefs discretion after completing 1 full year at D or E step during the period of July 1, 2019 through December 31, 2020. On 12/31/20 this provision will sunset and then beginning 1/l/2021, sworn employees will be eligible for only a performance bonus when it is determined that their overall performance significantly exceeds or exceeds expectations as outlined in Section 4.8 of the MOU after completion of one (1) full year at E Step. Non -Sworn will remain unchanged with eligibility after completing f full year at D Step. 5. Eliminate Compaction: Effective July 1, 2020, the City agrees, after implementation of the four percent (4%) increase to base salary adjustment effective July 1, 2020, to maintain an approximate five percent (5%) between the classifications of Sergeant (top step with all eligible pay additives) in the Santa Ana Police Association unit and Police Commander (Lieutenant) (Step "D" including Supervisory Post and Bilingual additives). 6. Education Incentive Restructure: Effective July 1, 2019, (Current PMA members, employees hired or promoted into the PMA unit on or after July 1, 2019 shall not be eligible for the Educational Incentives Program described in 6.1 in the MOU (Attachment 3) but shall now be eligible for the Education Incentives as described below. Those that were previously receiving incentives in Section 6.1 shall be grandfathered in to continue to receive those 'MAW Agreement with SAPMA 2018-2021 August 20, 2019 Page 3 incentives, should they qualify for the provisions below on or after July 1, 2019, shall not be eligible for both only the greater benefit of the two. SWORN ONLY • Level 1: Supervisory POST = 5% on base pay (cap=5%). • Level 2: Supervisory POST AND Cal Command OR FBI Cert = 10% on base pay (cap=10%). • Level 3: MA/MS Degree AND Supervisory POST = 10% on base pay (cap 10%). • Level 4: MA/MS Degree AND Supervisory POST AND Cal Command College OR FBI Cert = 15% on base pay (cap 15%). NON -SWORN • MA/MS Degree — 5% (cap 5%). 7. Long Term Disability (LTD): Effective January 1, 2020, the City shall continue to pay one hundred percent (100%) of the premium cost for a long term disability insurance plan for employees covered by this MOU as said plan. Effective January 1, 2020, Police Management employees covered by this MOU shall receive a monthly benefit of sixty-six and two-thirds percent (66 2/3%) of their base monthly salary (to a maximum monthly benefit of $7,500). 8. Vacation Carry-over: Effective December 31, 2019, any vacation not used by December 31s' of each calendar year that is above the maximum carry-over amount shall be cashed out at a straight -time rate. Members are only eligible for cash out if they used 80 hours of vacation during the calendar year. 9. Retiree Health Savings (RHS): Effective July 1, 2019, increase city contribution to member's ICMA-RC account by 1.25% for a total contribution of 4% total. 10. City Observed Holiday: Effective January 1, 2020 the City will observe Cesar Chavez Holiday. 11. Credit of Unused Sick Leave: Upon adoption of the MOU, members with at least 10 (ten) years or more of full-time City service that retire from the City within 120 days of separation from employment can convert up to 2000 hours of accrued un-used sick leave towards CalPERS service credit. 12.Classification of Correctional Manager: Effective upon adoption of this MOU, amend the Basic Classification and Compensation Plan in order to move the classification of Correctional Manager from Santa Ana Management Association (SAMA) to the SAPMA unit as a non -sworn member at the monthly five (5) step -salary rate range; PMA-NSWN 754 $8,269 - $10,055 (range prior to salary increase effective July 1, 2019, as described in item #2 above). 55A-3 Agreement with SAPMA 2018-2021 August 20, 2019 Page 4 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #7 - Team Santa Ana, Objective #4, Establish employee compensation that attracts and retains a highly qualified workforce, objective #5, Create a culture of innovation and efficiency within the organization, objective #6, Provide a positive workplace environment that supports the health of its employees and celebrates its success, and objective #7 Develop a culture of motivated and innovative leaders in the organization. FISCAL IMPACT The additional expenditures will be recorded in the affected departmental salary accounts (no. series 61000). It is estimated that this agreement will result in a net cost to the City of $141,568 for FY 18-19, $554,552 for FY 19-20 (total impact of $696,120) and $980,696 for FY 20-21 for a total of $ 1,676,816 during the term of this agreement. Appropriation Adjustment - General Fund This agreement will result in a cost of $696,120 (within the various salary accounts 61000) during fiscal year 2019-20, entirely within the General Fund. Detail by Fund Accounting Unit (General Fund) is noted in Exhibit 1. &<--Aw Steven V. Ph -am Executive Director Human Resources Department APPROVED AS TO FUNDS AND ACCOUNTS: &46a a, Kathryn Dovins, CPA Executive Director 11-7 Finance and Management Services Agency Exhibits: 1. PMA EXHIBIT 1: FY 2018-21 2. Resolution Amending Resolution No. 2015-026 3. SAPMA MOU July 1, 2018 through June 30, 2021 55A-4 a 0 a-4 M om^ ko O N O m I� to M O O m to I, m 0 00 r-IN ci m wm wr-I aNi to 1l w l0 m w o w n w O m w m ri v v cP m of v ri Z e v U iri v u W M M M N N m V m a-i N m m mMA O Y. O C u_ O N � � E C y `1 Ln z N v N u 0 0J C t+ y1 CL C UD V O i d m U O O C 3 C 7 u v m N vYi N m = rl •o CO N In Q N C N C N N 7 m u aj C C d Y C •m > � 7 N a O a+ m F- m 00 O 'B E C O u C C 0) 'O £ m a O O_ m Y C LL c`o c ar o c v 'u aui o" Z F LL 4-. E w c U 00 j0 c a'ZI Q u V of Ln p 01 > U C K Gl a 3 z ci In o m o m Ln o In o In ci In o is O O a-i c-1 N N M lD to I� n 00 ,Q a v a a v v v a v v-tl' h a-i 'i a-i ei ei a-i r l a l a l a-i el a l r-I r-I Ca�i e-i a�-I 1-4 r-I r-I cr-I a�-I a�-I a�-I '�-I a l 1-1 r-I C' O O O O O O O O O O O O O O u � a Y Y Y Y Y Y Y Y Y Y Y Y Y Y c C c c c c c c c c c c c C Qi ar ar ar m Qi v d v v v m ar ar C E E E E E E E E E E E E E E E m `m m `m `m m m m m m m m `m m a c. n a a a a a n o. c n Cl a • m v ar a� ar ar a� ar a� v ar v m v ar d 0 0 p p o p r7 p p p p p d m ar v v ar a� ar d v v ar a� v v p U V U U U U V _u U U U U U U 6 6 0 0 6 0 0 6 0 o o o o o n. LL a LL a a n. LL LL LL a a a a O O N N r-I H Ia & O rn rn LO ko m Y C N E t m OQ 0) C O z m Iv C N J Q � Z LnZ ei Q Q Ln CD l7 Q O C:) J H Q O W o a c a Y C C� yG L m O ar p c 0 z v c 3 LL cu �o cu c c au 55A-5 y RESOLUTION NO. 2019-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Section 1004, Article X of the City Charter of the City of Santa Ana requires the City Manager to prepare, install and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. On June 16, 2015, the City Council adopted Resolution No. 2015-026 amending and re-establishing the Basic Classification and Compensation Plan for all Full -Time and Part -Time Classifications of Officers and Employees of the City of Santa Ana ("City"). C. It is the City's practice to assign job titles that reflect the duties and responsibilities of the classification and are consistent with other classifications within the Citys organizational structure as well as comparable job titles in the labor market, while maintaining internal pay equity relationships and attracting and retaining qualified candidates. D. As part of the bargaining process for the Memorandum of Understanding between the City and the Santa Ana Police Management Association ("SAPMA"), the parties tentatively agreed to move the Correctional Manager position from another bargaining unit into the SAPMA subject to City Council approval. E. The City Council has amended and reestablished the Basic Classification and Compensation Plan on numerous occasions since its adoption. F. It is now desired to amend Council Resolution No. 2015-026, as amended, in order to effect these changes, as shown below: #5765v2 Resolution 2019-XXX Page 1 of 3 55A-7 Section 2: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "C" as follows: A. Adding the following full time classification title at the monthly five -step salary rate range indicated: 5-Step Salary Rate Range Effective 07/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Correctional Manager (RM) M-754 $8,269 - $10,055 (Non -Sworn) Section 3: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "E" as follows: A. Deleting the following full time classification title at the monthly five -step salary rate range indicated: 5-Step Salary Rate Range Effective 09/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Correctional Manager (AM) AM-737 $8,256 - $10,037 Section 4: All salary rate range classifications are set forth in the City's "Salary Schedule" as periodically updated. Section 5: That except as amended by this Resolution, all other provisions of Resolution No. 2015-026 as amended shall remain in full force and effect Section 6: This Resolution is operative from and after the date upon which it is adopted. ADOPTED this 20th day of August, 2019. Miguel A. Pulido Mayor Resolution 2019-XXX Page 2of3 y • APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: r�L4 t U Laura A. Rossini Senior Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original Resolution adopted by the City Council of the City of Santa Ana on August 20, 2019 Date: #5765v2 Resolution 2019-XXX Page 3 of 3 Clerk of the Council City of Santa Ana 55A-9 55A-10 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SANTA ANA GPI► SANTA ANA POLICE MANAGEMENT ASSOCIATION REPRESENTATION UNIT JULY 19 2018 THROUGH JUNE 30, 2021 55A-11 TABLE OF CONTENTS ARTICLE SUBJECT PAGE ARTICLE I Recognition 3 ARTICLE II Non -Discrimination Clause 4 ARTICLE III Attendance, Workday, Workweek and Work Schedule 5 ARTICLE IV Salaries ARTICLE V Assignment and Other Special Pay Additives 13 ARTICLE VI Educational Incentive Program 14 ARTICLE VII Training and Educational Assistance Program 17 ARTICLE VIII Overtime 20 ARTICLE D{ Holidays 21 ARTICLE X Vacation 24 ARTICLE XI Other Leaves of Absence 27 ARTICLE XII Employee Insurance 35 ARTICLE XIII Reserved 38 ARTICLE XIV Retirement 39 ARTICLE XV Technology Stipend 41 ARTICLE XVI Expanded Residency 42 ARTICLE XVII Controlled Parking and Take Home Vehicle Privileges 43 ARTICLE XVIII Discipline 44 ARTICLE XD{ Grievance Review Procedure 45 ARTICLE XX Dues Deduction and Indemnification 47 ARTICLE XXI City Rights 48 ARTICLE XXII Strikes and Work Stoppages 50 ARTICLE XXIII Sole and Entire Agreement 51 ARTICLE XXIV Waiver of Bargaining During the Term of MOU 52 ARTICLE XXV Severability Provision 53 ARTICLE XXVI Tenn of MOU 54 ARTICLE XXVII Ratification and Execution 55 2 55A-12 ARTICLE I 1.0 RECOGNITION 1.1 Pursuant to the provisions ofthe 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 Management Association (hereinafter called the "Association") as the recognized representative of the bargaining unit which includes full-time Police Department employees in the sworn, "safety -member" classifications and assignments of Police Commander, and Deputy Chief of Police, and full-time department employees in the non -sworn, "miscellaneous -member" classifications and assignments of Police Communications Manager, Police Administrative Budget Manager, Police Administrative Manager, Jail Administrator, Correctional Manager, and Police Systems Manager. (The former titles of Police Lieutenant and Police Captain may continue to be used by the City for such purposes as salary surveys and compensation comparisons for the titles of Police Commander and Deputy Chief of Police, respectively). 55A-13 ARTICLE 11 2.0 NON-DISCRRVHNATION CLAUSE 2.1 The City and the Association agree that they shall not discriminate against any employee in violation of State or Federal law. The City and the Association shall reopen anyprovision of this Memorandum of Understanding (hereinafter called the "MOU") for the purpose of complying with any order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this MOU in compliance with State or Federal anti -discrimination laws. 2.2 Whenever reference is made to the masculine gender, it shall be understood to include the feminine gender, unless expressly stated otherwise. 55A-14 ARTICLE III 3.0 ATTENDANCE, WORKDAY, WORKWEEK & WORK SCHEDULE 3.1 Attendance. Employees covered by this MOU shall be in attendance at their work during hours prescribed by the Police Chief or his or her designee(s) and shall not absent themselves during prescribed hours without authorization from the Police Chief or his or her designee. Employees shall not be required to submit a Leave of Absence Request for absences of two (2) hours or less. 3.2 Alternative Work Schedules. A. All represented employees, except those Commanders assigned as Watch Commanders or assigned to positions designated by the Police Chief as special exemptions, shall be permitted, at the employee's option, to work a 4/10 work schedule. Each workday shall consist of ten (10) hours of work and thirty (30) minutes unpaid mealtime. Said schedule shall beset by the Police Chief and subject to annual review by the Police Chief. B. All represented employees (except those Commanders assigned as Watch Commanders) not assigned to the 4/10 work schedule shall work a 9180 work schedule. Employees assigned to the 207(k) 9/80 work schedule shall work either five (5) nine -hour workdays in the first seven (7) day span and three (3) nine -hour and one (1) eight -hour workdays in the second seven (7) day span, or alternatively three (3) nine -hour workdays and one (1) eight -hour workday in the first seven (7) day span and five (5) nine -hour workdays in the second seven (7) day span, Each nine (9) hour workday shall consist of nine (9) hours of work and thirty (30) minutes unpaid mealtime. The eight (8) hour workday shall consist of eight (8) hours ofwork and thirty (30) minutes of unpaid mealtime. C. Police Commanders assigned to the Field Operations Division as Watch Commanders will continue to be assigned to a 3/12 — 4/12 work schedule. The minimum work day for these employees will consist of 11 hours and 30 minutes of work, with 30 additional minutes for meals. A minimum work period shall consist of two (2) consecutive weeks, with three (3) shifts of 11 hours and 30 minutes in one (1) week and four (4) shifts of 11 hours and 30 minutes in the second week. D. For purposes of computing holiday, vacation, and sick leave accruals, an eight (8) hour day shall be the basis for computation. 55A-15 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. 4.2 Salary Schedule. The basic salary schedule, as periodically updated and published by the City is comprised of four (4) steps or rate ranges of pay for sworn (CaIPERS "Safety") employees and five (5) steps or rate ranges ofpay for non -sworn (CalPERS "Miscellaneous") employees. Effective July 1, 2019, a Step "B" (approximately 5% increase from Step "D") will be added to the sworn classifications in this unit. The basic salary schedule for sworn (CalPERS "Safety) employees will be increased to five (5) steps or rate ranges of pay. The steps within each range are identified by the letters "A" through "E" inclusive for sworn (CaIPERS "Safety") classifications and "AA" through "D" inclusive for non -sworn (CaIPERS "Miscellaneous") classifications, with Step "A" being the lowest step for sworn (CaIPERS "Safety") and Step "AA" being the lowest step for non -sworn (CalPERS "Miscellaneous") classifications. The assignment of classes to salary rate ranges during the term of this MOU is listed in the City's salary schedule, as periodically updated and published by the City. 4.3 Salaries. A. The base salaries of employees covered by this MOU shall be adjusted as follows: 1. Effective July 1, 2018, classifications covered by this MOU shall receive a retro-active base salary increase of five (5) salary rate ranges (approximately 2.5%). 2. Effective January 1, 2019, classifications covered by this MOU shall receive a retro-active base salary increase of five (5) salary rate ranges (approximately 2.5%). Effective July 1, 2019, classifications covered by this MOU shall receive a retro-active base salary increase of eight (8) salary rate ranges (approximately 4%). 55A-16 4. Effective July 1, 2020, classifications covered by this MOU shall receive a base salary increase of eight (8) salary rate ranges (approximately 4%). 5. Effective July 1, 2020, the City agrees, after implementation of the 4% base salary increase effective July 1, 2020 (as noted as #3 of this section) to maintain ten (10) salary rate ranges (approximately 5%) between the classes of Top Step Sergeant including all pay additives available to this classification and Police Commander "D" Step including Supervisory Post Additive (minimum 5%) and Bilingual Pay Additive. 6. The City and Association agree that upon the expiration of this MOU and during the period of good faith negotiations for a subsequent contract, salary and benefits shall continue at the then current rate. Although there are some retroactive compensation adjustments included in this 2018-2021 MOU, all compensation adjustments provided for in this MOU shall apply only to those employees who are employed on the day in which the City Council approves this MOU. This applies to compensation adjustments in any Article of this MOU. B. The parties agree that the City may, at its sole discretion, alter its payroll practices to eliminate the salary and wage step increases system as set forth in its current payroll matrix, as outlined in the City's salary schedule, as periodically updated and published by the City, and replace them with an equivalent percentage system. For example, a five (5) salary rate range increase would not be computed as set forth on the current matrix, but would instead be exactly 2.5%, rounded up to or down to the nearest penny. This system would apply to all salary increases as set forth in this MOU, including Article IV (" Salaries"), Article V ("Assignment and Other Special Pay Additives") and the rate ranges assigned to the classifications represented by this bargaining unit. There shall be no negative consequences to any represented employee by such conversion. C. The City agrees, during the term of this MOU, to maintain thirty-four (34) salary rate ranges (17%) between the classes ofDeputy Chief of Police and Police Commander. 4.4 Anolication of Basic Compensation Plan. All employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate, as set forth in the City's salary schedule, as periodically updated and published by the City. 4.5 Beginning Rates. An employee appointed to one of the designated sworn (CalPERS "Safety") classifications of employment listed in this MOU maybe placed by the appointing authority at Step "A," Step "B," Step "C", or Step "D" within the applicable rate range in the schedule to which the class has been allocated by Resolution of the City, provided that such 7 55A-17 employee shall be assigned such salary step upon the commencement of his or her service in said classification and such assignment having once been made shall remain in effect until the said employee shall be entitled to advance to the next salary step in accordance with the further provisions of the Article. An employee appointed to one of the designated non -sworn (Ca1PERS "Miscellaneous") classifications of employment listed in this MOU maybe placed by the appointing authority at Step "AA", Step "A", Step `B", or Step "C" within the applicable salary rate range as provided above. 4.6 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 a higher classification or service in a classification allocated to the same salary rate range and having generally similar duties and requirements. Employees hired after the first (11h 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 ten (10) calendar days by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purpose of this MOU and any such employee reentering the service of the City shall be considered as a new employee, except that he or she may be reemployed within two (2) years and placed in the same salary step in the appropriate salary rate as he or she was at the time of termination of employment. "Resignation, quit, or discharge" for purposes of this section shall mean leaving City service altogether and not movement within City employment by way of transfer, promotion, or demotion between and among any City departments. 4.7 Advancement Within Ranges. The following regulations shall govern salary advancement within rate ranges: A. For any employee covered by this MOU who has been initially appointed to a step lower than Step "E," advancement to the next higher step (Step "A" from Step "AA," Step `B" from Step "A," Step "C" from Step "B," Step "D" from Step "C," or Step "E" from Step "D" respectively) shall be granted for continued satisfactory and efficient service by said employee in the effective performance of the duties of his or her position. The effective date of an increase from Step "AA' to Step "A," if granted shall be the first (11) day of the month following the completion of six (6) months of service at Step "AA." The effective date of such step increase from Step "A," Step "B," Step "C," Step "D", or Step `B" if granted, shall be the first (P) day of the month following the completion of one (1) year of service at the step to which said employee is being advanced. Such merit advancement shall require the following: 55A-18 There shall be on file in the Office of the Executive Director of Human Resources a copy of each periodic efficiency or performance report required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. 2. The Police Chief, at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall file with the City Manager a statement recommending the granting or denial of the step increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified of the reasons therefore. 3. No advancement in salary above the lowest step in the salary rate range of the designated classification shall become effective until approved by the City Manager, except when placement on a salary step above the lowest step in the applicable salary rate range results from promotion under the provisions of Section 4.9 of this Article. B. When any such employee has not been approved for advancement to the next higher salary step, he or she may be reconsidered for advancement to the next higher step above his or her then current step after the completion of three (3) months of additional service and shall be reconsidered for such advancement after the completion of six (6) months of additional service. 4.8, Performance Based Salary Adjustments: Each Non -Sworn employee covered by this MOU who has attained Step "D" maybe eligible to receive an annual performance bonus as a one-time monetary incentive payment based on a percentage of current annual rate ofbase salary in accordance with the following criteria in Section 4.8A-C below. Effective July 1, 2019 through December 31, 2020, eligible Sworn employees coveredbythis MOU who have attained Step "D" or "E" maybe eligible to receive an annual performance bonus and/or a merit step advancement as defined in Section 4.7 of this MOU. On December 31, 2020, this provision will sunset. Beginning January 1, 2021, Sworn employees covered by this MOU maybe eligible only for an annual performance bonus who have attained Step E. Annual performance bonuses are a one-time monetary incentive payment based on a percentage of current annual base salary in accordance with the criteria in Section 4.8A-C below. 55A-19 A. Performance Levels For overall performance rated as `5' Significantly Exceeds Expectations, a one-time monetary incentive payment of five percent (5%). 2. For overall performance rated as `4' Exceeds Expectations, a one-time monetary incentive payment of two and one-half percent (2.5%). For overall performance rated as '3' Meets Expectations, no monetary incentive payment. 4. For overall performance rated as `2' BeIow Expectations, no monetary incentive payment. 5. For overall performance rated as `1' Significantly Below Expectations, no monetary incentive payment. B. Upon an employee failing to receive a rating of "Significantly Exceeds Expectations" in their Annual Performance Evaluation, the supervisor shall promptly prepare a written document which details objectives the employee must meet in order to receive a "Significantly Exceeds Expectations" rating for that evaluation period and provide that document to the employee. The employee's evaluation will be held in abeyance for a period no longer than 90 days, allowing the employee time to attempt to achieve the objectives. During this time any Performance Based Salary Adjustment for an "Exceeds Expectations," if awarded, shall not be processed. Ifthe employee fails to achieve a rating of "Significantly Exceeds Expectations" within the 90dayperiod, he/she will not be eligible for the "Significantly Exceeds Expectations" bonus for that rating period. C. Application of Guidelines 1. Any one-time incentive payment granted under this plan is not an increase in base salary and no salary rate range applicable to any Association employee covered by this MOU shall be changed or deemed to have been changed by reason of such payment. However, such incentive payment for Classic Ca1PERS members as allowable under CCR Section 571a will be reported to Ca1PERS as special compensation for calculation towards retirement. 2. In the event that Ca1PERS determines that such payments do not meet the definitions listed in CCR Section 571a as special compensation to be reported to CalPERS, the City will convert the incentive payment for eligible 10 55A-20 employees to a meritorious step on the salary range as set forth in section 4.8C (7) below. Any Association employee that is deemed to be a "New CaIPERS Member" is not eligible to have the incentive payment reported to Ca1PERS as special compensation. See, Government Code section 7522.34(c) and PERS circular 200-064-17 dated December 6, 2017, a bonus is not "PERSable" compensation for new members. 4. Any Association employee that is off on IOD or other leave of absence whose Performance Appraisal date occurs while off work will have their appraisal date adjusted when returning to work for the time not worked. The employee will not be eligible for the incentive bonus payment until completing the required time in their regular position necessary to be evaluated per current departmental policy. 5. Performance based monetary incentive payment amounts for Association personnel shall be recommended by the employee's Supervisor and requires the approval of both the Police Chief and City Manager. 6. The Police Chief shall beresponsible for the development and administration of detailed administrative procedures and guidelines for the consistent and effective application of the Association performance appraisal evaluation criteria. Such procedures and guidelines shall define how performance objectives, measure and standards are developed; when and howperformance reviews are to be carried out; how overall performance ratings will be determined; and how performance based monetary incentive payment options are to be exercised. 7. If it is determined by PERS that the "Bonus" is not eligible to be included as PERSable compensation, the City shall convert the bonus to two (2) additional merit based steps at increments of 2.5% for the last year that the employee earned the Bonus. The Association understands and agrees that these steps would be merit based and employees must maintain a Significantly Exceeds Rating to receive or maintain the 5% or Exceeds expectations rating to receive or maintain the 2.5%. Employees who do not receive Significantly Exceeds rating or Exceeds Expectations rating will be returned to Step 4 of the Association salary schedule. 4.9 Promotional Salary Advancement. When an employee is promoted to a position in a higher classification from a position in a lower classification, he or she shall be reassigned to the lowest step in the appropriate salary rate range for the higher classification that gives the employee a minimum increase of one (1) salary step (approximately 5%) over his or her 11 55A-21 current base salary step (plus any pay for performance bonus if said employee was at top step in their current classification) and exclusive of anypay additive or additives such as shift differential, assignment pay, special skill pay or the like. 4.10 Demotion. When an employee is demoted to a position in a lower classification, his or her salary rate shall be fixed in the appropriate salary rate range for the lower classification in accordance with the following provisions: A. The salary rate shall be reduced by at least one (1) step. B. The new salary rate must be within the appropriate salary rate range. C. The new salary rate shall not be higher than the salary step to which the employee would have been entitled had his or her service time in the higher classification been spent in the lower classification. 4.11 Reallocation of Salary Rate Ranges. Any employee who is employed in a classification which is reallocated to a different salary rate range from that previously assigned shall be retained in the same salary step in the new salary rate range as he or she had previously held in the prior rate range and shall retain credit for length of service in such step towards advancement to the next higher step. 12 55A-22 ARTICLE V 5.0 ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES 5.1 Bilingual Assignment Pay. An employee who speaks both English and either Spanish, Samoan, Vietnamese or other languages designated by the Police Chief, will be paid a monthly assignment pay differential in accordance with the criteria and amounts set forth below: A. Any Deputy Chief of Police or Police Captain who has been certified by the Executive Director of Human Resources as having satisfactorily demonstrated conversational fluency in both languages shall be paid amonthly differential of one hundred seventy-five ($175) above his or her then current base monthly salary step. B. Any other member of the Association who works in a position where it has been determined by the Police Chief that bilingual proficiency is essential to carry out duties and responsibilities of a critical and/or emergencynature without ready access to backup assistance, or positions where bilingual public contact is a major and essential element of the work being performed, as determined by the Police Chief or his or her designee, shall be paid a monthly differential of one hundred seventy five ($175) above his or her then current base monthly salary step, upon certification by the Executive Director of Human Resources that this person has satisfactorily demonstrated conversational fluency in both languages. 13 55A-23 ARTICLE VI 6.0 EDUCATIONAL INCENTIVE PROGRAM 6.1 Effective July 1, 2019, all eligible members of PMA currently receiving Educational Incentives listed in Section 6.lA--I (as described below) as of July 1, 2019 will be "grandfathered in" to continue to receive those incentives but no other members of the association will be able to participate in this educational incentive. In no event shall the application of this Educational Incentive program described in Section 6.1 result in an employee being eligible to earn more than ten percent (10%) above his or her then current base monthly salary step. A. FBI National Academy. Any employee covered by this MOU who successfully completes the FBI National Academy shall be paid at a rate set ten (10) salary rate ranges (approximately 51/o) above his or her then current base monthly salary step. B. California Command College. Any employee covered by this MOU who successfully completes the California Command College shall be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step. C. LAPD Leadership Pro gram. Any employee covered by this MOU who successfully completes the LAPD Leadership Program shall be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. D. Police Executive Research Forum (PERF) Senior Management Institute for Police. Any employee covered by this MOU who successfully completes the Senior Management Institute for Police shall be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. E. FBI National Academy (LEEDS Program). Any employee covered by this MOU who successfully completes the FBI LEEDS Program shall be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. International Association of Chiefs of Police. Any employee covered by this MOU who successfully completes the Leadership in Police Organizations Program shall be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. G. Homeland Security Executive Leaders Program. Any employee covered by this MOU who successfully completes the Homeland Security Executive Leaders 14 55A-24 Program shall be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. H. Advanced Leadership Program. The advanced leadership courses listed below represent curriculum that exceed minimum training mandates for law enforcement managers. The subject matter addresses a variety of critical topics associated with advanced organizational development and the role of leaders within the organization. All courses are applicable to sworn and civilian managers, Any employee covered by this MOU who successfully completes a cumulative total of 112 hours of the below listed advanced leadership courses shall be paid at a rate set five (5) salary rate ranges (approximately2.5%) above his or her then current base monthly salary step. Leadership Courses Hours Command Institute for Law Enforcement Executives F.B.I. — LEEDA 40 Contemporary Leadership Issues .B.I. — LEEDA 32 Executive Development Course .O.S.T. 80 Management Civilian Seminar Part I P.O.S.T. 24 Management Civilian Seminar art P.O.S.T. 24 Organizational Leadership .O.S.T. 40 Police Management Seminar Advanced .O.S.T. 24 Supervisor Leadership Institute .B.I. — LEEDA 40 POST Management Update 24 POST Supervisory Update 24 FBI-LEEDA Executive Survival 32 Role of the Police Chief 40 POST Supervisory/Leadership Update 24 Effective Executive Communication 24 Police Management Seminar Advanced 24 Civilian Management Seminar 40 Advanced Civilian Management 24 I. Additional Courses. Any other course, 24 hours or longer, which focuses on developing leadership skills or increasing knowledge of contemporary law enforcement issues of a management/executive nature, or which enhances knowledge of community policing strategies or trends, shall be reviewed and approved by the Chief of Police after he/she ensures that the above criteria are met. 6.2 Educational Incentive Program: Effective July 1, 2019 for all members covered by this MOU, including Current PMA members, employees hired or promoted into the PMA unit on or after July 1, 2019, shall not be eligible for the Educational Incentives Program described in Section 6.1 A -I (above) but shall now be eligible for the 15 55A-25 Education Incentives listed in this section of this MOU. Those that were previously receiving incentives in Section 6.1 A -I that qualify for the provisions in this section on or after July 1, 2019, shall not be eligible for both, only the greater benefit of the two. A. SWORN ONLY Sworn employees may only qualify for one (1) Education Incentive Level at one time and not intended to be compounded with one another. 1. Level 1 - Any sworn employee covered by this MOU who successfully obtains his/her Supervisory POST certificate, shall be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step (cap=5%). 2. Level 2 - Any sworn employee covered by this MOU who successfully obtains his/her Supervisory POST AND California Command College OR FBI National Academy shall be paid at twenty (20) salary rate ranges (approximately 10%) above his or her then current base monthly salary step (cap=10%). 3. Level 3 - Any sworn employee covered by this MOU who attains their MA/MS Degree AND Supervisory POST shall be paid at twenty (20) salary rate ranges (approximately 10%) on above his or her then current base monthly salary step (cap 10%). 4. Level 4- Any sworn employee covered by this MOU who attains their MA/MS Degree AND Supervisory POST AND California Command College OR FBI National Academy shall be paid at thirty (30) salary rate ranges (approximately 15%) on above his or her then current base monthly salary step (cap 15%). B. NON -SWORN 1. Any non-swom employee covered by this MOU who successfully attains a Masters of Art or Master of Science degree shall be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step (cap=5%). 16 55A-26 ARTICLE VII 7.0 TRAINING & 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 (Updated effective July 1, 2019). A. Application for tuition reimbursement will be considered only from full-time, regular City employees covered by this MOU who have completed probation. B. Reimbursement is not authorized for courses for which the employee is receiving financial assistance from other sources such as the 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 in the course plan to qualify for a degree that is directly related to his job, may be reimbursable only after all required, occupationally -related courses have been completed E. Prior to receiving tuition reimbursement, employees must submit documentaryproof 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 a Board of Education and certain non -collegiate training seminars approved by the Police Chief. Other 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 Police Department with prior approval of the Police Chief. 17 55A-27 7.3 Reimbursement (updated effective July 1, 2019). A. Reimbursement will be based on the cost of tuition or registration fees and all required texts and related material for each course. Additional expenses such as meals and parking fees are not reimbursable. If, however, an employee is required by the Police Chief to attend a particular course or seminar, the expense shall be home entirely by the Department. B. Costs for required textbooks are eligible for one hundred percent (100%) reimbursement subject to the following conditions: That a duplicate of the required textbook(s) was unavailable for loan from the Department library prior to the commencement of cwursework; and 2. That any textbook(s) purchased by the City shall be submitted to the employee's Departmental library in order that such textbook(s) maybe made available to all employees. C. Tuition and registration costs are eligible for one hundred percent (100%) reimbursemeatup to a maximum total of two thousand dollars ($2,000) per fiscalyear (including non-P.O.S.T. reimbursable courses and approved non -collegiate seminar training courses). Reimbursement for non -collegiate seminar training courses require the prior approval of the Police Chief and shall be limited to two (2) such courses per year and a maximum of $500 per course. 7.4 Procedures. A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete, in duplicate, 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. C. The Executive Director of Human Resources will approve or disapprove the application for the City. One (1) copy will be returned to the employee and the duplicate will be retained by the Human Resources Department. It is advisable that the applicant accomplish the procedure 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. 18 55A-28 D. The employee will submit his or her copy of the approved application to the Human Resources Department within three (3) months after he or she has completed the course and received his or her final grade with appropriate receipts for tuition and textbook costs. 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. E. Upon receipt of the application and required documentation, the Executive Director of Human Resources will compute the amount of reimbursement, authenticate the application and forward it to the Police Chief. F. 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. 19 55A-29 ARTICLE VHI 8.0 OVERTIME 8.1 Compensation for Overtime. Employees in any of the designated classes of employment listed in this MOU are not eligible for monetary compensation for overtime work or for compensatory time off with pay for overtime work, unless so required by the Fair Labor Standards Act, or any other State or Federal laws. pill 55A-30 ARTICLE IX 9.0 HOLIDAYS 9.1 Legal Holidays observed by full-time permanent and probationary employees of the City of Santa Ana are as follows: o January 1" -New Year's Day o Third (3'a) Monday in January - In observance of Martin Luther King, Jr's Birthday o Third (31") Monday in February - In observance of Presidents' Day o March 3181— In observance of Cesar Chavez Day (Effective January 1, 2020) o Last Monday in May - In commemoration of Memorial Day o July 41h - In observance of Independence Day o First (11) Monday of September - In observance of Labor Day o November I Vb - In observance of Veteran's Day o Fourth (4`h) Thursday in November - In observance of Thanksgiving Day o The Friday immediately following Thanksgiving Day o Last working day before Christmas Day, unless Christmas Day falls on Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof. o December 25 h - In observance of Christmas Day o One (1) Floating Holiday - Any workday selected by the employee with prior permission of the employee's supervisor. o 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. 9.2 Full-time permanent and probationary employees covered by this MOU shall be entitled to receive twelve (12) working days off, eight (8) hours per day, during the calendar year in lieu of the holiday benefits specified in Section 9.1, supra. Therefore, employees with alternative 21 55A-31 work schedules shall be credited with ninety-six (96) hours ofHolidayTime at the beginning of every calendar year in lieu of twelve (12) holidays in the year. Effective January 1, 2020, Full-time permanent and probationary employees covered bythis MOU shall be entitled to receive thirteen (13) working days off, eight (8) hours per day, during the calendar year in lieu of the holiday benefits specified in Section 9.1, supra. Therefore, employees with alternative work schedules shall be credited with 104 hours of Holiday Time at the beginning of every calendar year in lieu of thirteen (13) holidays in the year. For purposes of computing holiday accruals, an eight (8) hour day shall be the basis for computation. Said substitute holidays may be taken at any time during the calendar year with prior permission of the employee's supervisor and subject to the operational needs of the Department. However, if an employee who separates from the service of the City has taken time off for holidays in advance of the date or day the holidays actually occur, he or she must pay the City the cash value for such used but unearned holiday time offbenefits prior to or at the time of separation. 9.3 A employee must actually work at least one (1) day preceding the day a holiday listed in Section 9.1, supra, actually occurs in order to receive credit for such holiday during the month in which it occurs. 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, supra, actually occurs in order to receive compensation for the 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. 9.4 Holiday time off may be taken in 30-minute increments. 9.5 Holiday benefits may not be carried over from one (1) calendar year to the next. 9.6 Leave Cash Option. Employees covered by this MOU may cash out a combination of holiday, vacation, and management vacation leaves, up to a maximum of 260 hours in a calendar year. A. Holiday Leave: Employees may receive cash compensation, computed on a straight time basis, up to a maximum of eighty (80) hours of their holiday leave benefits, including the floating holiday, set forth in Section 9.2 above, 22 55A-32 B. Vacation Leave: 1. Employees may receive cash compensation, computed on a straight time basis, for up to a maximum of 150 hours of earned, unused vacation leave benefits, set forth in Sections 10.2D herein. 2. Effective December 31, 2019, "must -use" vacation earned in the current calendar year over the max carry-over limit will be cashed out as specified in Article 10.2 C 2 and 3. This requires an employee to take at a minimum eighty (80) hours of vacation leave within the calendar year in order to receive cash out of max carry over hours. If employee does not take eighty (80) hours of vacation leave in the calendar year, the employee will not receive cash -out or carry-over into next calendar year as indicated in Section 10.2 C.2. C. Management Vacation Leave: Employees may receive cash compensation, computed on a straight time basis, up to a maximum of 150 hours of earned, unused management vacation leave benefits, set forth in Section 10.3 herein. Employees covered by this MOU shall accrue 100 hours of management vacation per year. Such cash option may be eliminated or modified to the extent it is construed as overtime under Department of Labor Guidelines implementing provisions of the Fair Labor Standards Act. D. Association members who notify the City, in writing, of their intent to retire within 12 calendar months shall be allowed to cash out any and all eligible leave bank balances, including sick leave, upon request. Employees shall receive payment as soon as practical, and no longer than 30 days after the request has been made. If an employee cashes out his or her eligible leave bank balances prior to retirement and subsequently remains employed one year after their initial notice of intent to retire, said employee shall be ineligible to accrue 100 hours of management vacation the next calendar year. 23 55A-33 !U VACATION m! Purpos .#gthe policy oftbCity »grant employees vacation mwaord cmprovide Um with abreak Btheir regular work schedule and this purpose will & used aaguide in tbadministration ethe provisions oftEArti. !a2 Vacation. A. Effective January %»IRthregular and longevity vacation accruals 2bargaining unit members were combined into one singlevacation bank. The accrual rates remained the ,_e. Membersshall acc _ U combined vac:with pay ma monthly basis _ a 5+ in the following table. Completed Years Annual Vacation Accrued dMonthly: 02 c w ! 15 2 !2 , 12 o / 4 12 o d s 12 POW 6 Ig 7 128 ± a 132 mho y 9 136 AT Z g 140 # I# Q !# t q g 152 a 15 n e !m » 18 0n d r 176 2\ 6 « a !N ' 33 g 16 : 16 00 k or more 2nn � }e6ta B. Vacation time off may&taken Eincrements esmall as one m b# with fractional usage rounded upward » the next higher multiple eone O« e SSA- 4 C. Computing Regular Vacation. In computing vacation, each municipal holiday that occurs during the vacation, and that falls on a day which the employee would have worked had he or she not been on vacation, shall be deducted from the computation so that one (1) additional day of vacation shall be allowed to the employee. Should an employee be confined to a hospital for sickness or injury while on authorized vacation, each full day of such confinement, when confirmed by a physician's statement and approval of the Police Chief, may be deducted from the computation of vacation expended and charged against the employee's accumulated sick leave. 2. No employee may carry over from one (1) calendar year to the next, more than the maximum vacation carryover as set forth in the following table. Beginning December 31, 2019, and each December 311t thereafter, any vacation not used beyond the maximum carryover amount from the current calendar year will be cashed out at the employee's base rate of pay by the City at the end of the current calendar year provided that the employee takes a minimum of eighty (80) hours of accrued vacation leave time off in that calendar year. 3. Any employee that does not take a minimum of eighty (80) hours of vacation leave hours during the calendar year beyond the maximum carryover amount as described in this section 10.2.C.2., the hours beyond the maximum carry over amount from year to year will be forfeited, meaning that no pay shall be received for such unused vacation at any time. This provision constitutes a waiver of any rights to vested vacation benefits under California Labor Code section 227.3. Completed Years Max Carryover 1 120 2 240 3 240 4 240 5 240 6 244 7 252 8 260 9 268 10 276 11 284 12 292 25 55A-35 13 300 14 308 15 316 16 328 17 344 18 360 19 376 20 392 21 400 22 400 23 400 24 400 25 400 4. Employees may or may not be allowed or required to accumulate or split vacations. The time at which an employee shall take his or her vacation shall be determined by seniority within rank, with due regard for the needs of the service. For purposes of computing vacation accruals, an eight (8) hour day shall be the basis for computation. D. Leave Cash Options. Refer to Section 9.6.B.1-2 of this MOU for details. 10.3 Management Vacation Benefit. All employees covered by this MOU will be granted one hundred (100) hours of management vacation per calendar year over the vacation schedules. Employees may accrue a maximum of 480 hours of such Management Vacation. 10.4 Effect of Extended Sick Leave on Vacation Accrual. An employee that is absent on paid sick leave or unpaid leave for aperiod of time greater than fifteen (15) consecutive calendar days in any one (1) calendar month shall not accrue vacation credits during that month. CO, 55A-36 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 his or her position, and shall be deemed to include time in quarantine resulting from exposure to a contagious disease. B. Accrual. Each employee shall be entitled to, and shall earn, eight (8) hours of sick leave for each full calendar month of service in which he is employed by the City with full pay; provided, 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. Subject to the other provisions in this Article, sick leave shall accrue to the credit of each employee to the extent that it is not used. Notwithstanding the foregoing, an employee on leave of absence for service -connected illness or injury who is 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 he or she is employed by the City with full pay during said absence for service - connected Illness or injury. For purposes of computing sick leave accruals, an eight (8) hour day shall be the basis for computation. C. Authorized Only When Necessary. Sick leave is not a right which an employee may use at his or her discretion, but shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Subsection I below. When an accepted industrial illness or injury has caused a non -sworn employee's absence, for which benefits are required under the State Workers' Compensation Insurance and Safety Act, paid sick leave will be allowed such employee during the first three (3) days of the statutory waiting period. If the workers, compensation related illness or injury continues past the initial three (3) consecutive days, the employee will have the three (3) used sick days recredited to his or her account. Paid sick leave will continue until the fourth (4a) day when the City pays the employee workers' compensation benefits for such illness or injury. If the employee does not have sufficient accumulated sick leave at the commencement of such industrial illness or injury, they will be advanced sick leave for this purpose. Subsequently, the City will deduct an equal amount previously advanced from any sick leave accrued by the employee until the total amount is recovered. If the employee terminates before recovery of all advanced sick leave, the City will deduct the umecovered cost of sick leave from such terminated employee's final paycheck, to the extent possible. 27 55A-37 The Citymay authorize employees to use sick leave, vacation, or compensatory time for approved workers' compensation medical appointments as specified herein. The City may authorize use of such leave for City approved medical appointments whenever such appointments cannot be secured outside the employee's regular workday, and salary continuation or workers' compensation benefits are not available. D. Limit. The maximum total accumulation of sick leave with pay shall be 2,000 hours. Sick leave usage of less than a full day shall be charged in minimum increments of one (1) hour, with fractional usage rounded upward to the next higher multiple of one (1). E. Extended. The City Manager may grant leave up to six (6) months without pay to an employee who has exhausted all of his accrued sick leave if a licensed physician indicates that the employee will be sufficiently recovered to return to his employment within a six (6) month period. Prior to the expiration of the additional time, the employee may return to his position provided that the employee has a certificate from a licensed physician stating that the employee is able to perform all the duties of his 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, he or she may be granted permission to take any earned vacation he or she may have accrued. G. Notice. The employee taking sick leave shall notify his or her immediate supervisor as establishedby the Police Department regulations. When the absence is more than three (3) consecutive working days, the employee must present to the Police Chief a physician's certificate stating that, in the physician's opinion, the employee could not report to work because of such illness or injury and that the employee is sufficiently recovered to safely return to work. Such certificate shall be transmitted to the Human Resources Department with the report of the employee's return to work. A physician's certificate or other satisfactory written evidence of actual illness or injury may be required after an absence of any duration less than three (3) days. 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; or, sickness or disability sustained while engaged in employment other than employment by the City, for monetary gain or other compensation, or by reason of engaging in business or activity for monetary gain or other compensation. m 55A-38 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 vacation leave benefit; finally, deducted from the next scheduled salary payment. Personal Necessity Leave. Each employee shall be afforded the opportunity to use up to 48 hours of sick leave per calendar year, on a non -cumulative basis, as personal necessity leave. All of this personal necessity leave may be used to attend to an illness of a child, parent, spouse, or registered domestic partner of the employee. As used in this section, a child means a biological, foster, or adopted child, a stepchild, a legal ward, or a child of a person standing in loco parentis; and a parent means a biological, foster, adoptive parent, a stepparent, or a legal guardian of an employee or the employee's spouse or registered domestic partner, or aperson who stood in loco parentis when the employee was a minor child. This section also applies to the employee's grandparent, grandchild, or sibling. California's Healthy Workplaces/Healthy Families Act of 2014 (AB1522) also known as California's Paid Sick Leave Law, required the City to provide paid sick leave to eligible employees upon oral or written request, within the parameters of the law, for the following purposes: • Diagnosis, care, or treatment of an existing health condition of, or preventative care for an employee or an employee's qualified family member; • Specified purposes for an employee who is a victim or domestic violence, sexual assault, or stalking. Up to three (3) days of this personal necessity leave maybe 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 him or her to report for duty. For the 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 his or her specific workday schedule. K. Payment for Unused Sick Leave. (effective upon adoption of this NIOU). Payment criteria and limitations. Upon non -disciplinary termination of employment after ten (10) years of cumulative full-time service with the City, each qualified employee shall be entitled to the following cash out provisions below: a. After ten (10) years, but less than 15 years of service, the employee shall be entitled to 50% of the amount ofunused sick leave benefits credited to his or her Retirement Health Savings (RHS) account upon the effective 29 55A-39 date of separation, not to exceed a maximum limit of 640 hours. b. After fifteen (15) years, but less than 20 years of service, the employee shall be entitled to 50% of unused sick leave benefits credited to his or her Retirement Health Savings (RHS) account upon the effective date of separation, not to exceed a maximum limit of 800 hours. c. After twenty (20) years, but less than 25 years of service, the employee shall be entitled to 66.67% of unused sick leave benefits credited to his or her Retirement Health Savings (RHS) account upon the effective date of separation, not to exceed a maximum limit of 1,067 hours. d. After twenty-five (25) years of service or more, the employee shall be entitled to 100% of the amount of unused sick leave benefits credited to his or her Retirement Health Savings (RHS) account upon the effective date of separation, not to exceed a maximum limit of 1,600 hours. 2. A lump sum payment shall be made to the beneficiaries of any eligible employee whose death occurs while such employee is an active employee ofthe City, such payment to be in the amount of two-thirds (2/3) of the total sick leave benefit credited to the employee's account at the time of his or her death, and at the rate of pay effective on the date of the death. 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 his/her specific workday schedule. Such leave is designated as bereavement leave. "Immediate family" as used in this section is limited to: A. Any relative by blood or marriage who is a member of the employee's household; B. A parent, parent -in-law, spouse, child, brother, sister, grandparent or grandchild of the employee, regardless of residence; C. Any other relative of the employee by blood or marriage where it can be established by the employee that as a result of such relative's death, the employee's presence is required. 11.3 Military Leave. A. Proof of Orders and Reinstatements. An employee shall be granted military leave if he or she furnishes the Executive Director of Human Resources satisfactory proof of his or her order to report for duty. Upon return and upon showing of proof of actual 30 55A-40 service pursuant to such orders, he or she will be reinstated as provided in Section 9- 143 of the Civil Service Rules and Regulations of the City of Santa Ana. B. Temporary. Members of the reserve forces of the United States or the National Guard, granted temporary leave when ordered to duty, in accordance with the Military and Veterans Code, will be granted leave with pay not to exceed thirty (30) working days in each calendar year after one (1) years' 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 witness in any court action, he or she shall be allowed to 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 him or her to such service and shall pay into the City Treasury the fees collected for such service, with the exception of reimbursement for transportation expenses, if any. 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 time off benefits. 11.6 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. 11.7 Authorized Absence Without Pay - Short Term. Absence without pay, not to exceed five (5) consecutive worldngdays, maybe authorized bythe Police Chief Absence without pay, not to exceed fifteen (15) calendar days, maybe authorized by the Department with the approval of the City Manager. Such an absence may be authorized only if, in the judgment of the Police Chief, it serves 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 actionbythe Police Chief recommending approval of the request, the City Manager may grant a leave of absence without pay for up to six (6) months. An employee returning to duty with the City shall inform the Police Chief and the Executive Director ofHuman Resources of his or her intention at least thirty (30) calendar days prior to the expiration of the six (6) months period or a shorter period of the full six (6) months if not taken. Upon receipt of such notice, the Police Chief will take steps necessary to restore the employee to his or her former position. 31 55A-41 11.9 Industrial Leave. A. Each "safety member" employee covered by the provisions of Labor Code Section 4850 who is compelled to be absent from dutybecause of anillness or injurycovered 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 his or her normal salary and accrue other benefits in accordance with the provisions of Labor Code Section 4850. B. Anyperiod of time during which an employee is required to be absent from bis or her position by reason of an industrial injury or industrial illness for which he or she is entitled to receive compensation shall not be considered abreak in continuous service for the purpose of his or her right to salary adjustments or to the accrual of vacation, seniority and any other benefits. 11.10 Administrative Leave Policy. The City Manager is authorized to grant, at his or her discretion, paid or unpaid administrative leave for employees covered by this MOU. 11.11 Catastrophic Leave Donation. In order to assist employees otherwise granted leave of absence without pay by the City Manager because of catastrophic non -industrial medical condition or injury, the City and Association agree to implement a Catastrophic Leave Donation procedure. Nothing herein shall be construed to alter City policies and procedures as provided in the Charter or ordinances of the City of Santa Ana or other provisions of this MOU with regard to granting unpaid leaves of absence. The Catastrophic Leave benefit will be provided for non -industrial injury or sickness only. The leave shall cover the uncompensated time prior to the employee becoming eligible for Long Term Disability (L.T.D). benefits. A. Guidelines. It shall be understood that all donations under this procedure are voluntary and subject to taxation for the recipient. Employees may donate vacation or compensatory time or one in lieu holiday to the eligible employee. In no event shall sick leave be donated. 2. Employees shall be provided a two -week period to submit donations. Donations received after this two -week period shall not be processed. The two -week period for each case shall be designated by the Police Chief or his designee as provided herein below. 3. Donations shall be for a minimum of two (2) hours and a maximum of eight 32 55A-42 (8) hours per donor. All donations must be made in two (2) hour increments, except in lieu holidays must be for eight (8) hours. 4. Any authorization of donations not made in accordance with the procedures outlined in Section C, subparagraph 2 below, 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. B. Eligibili Regular, full-time employees shall be eligible for Catastrophic Leave donations if the following criteria are met: 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 his/her 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. Upon receipt of a valid request for donations from an eligible employee, the Police Chief or his or her 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. Employees wishing to donate time to an eligible employee must sign his or her authorization of the transfer of such donated time and provide: His/her name, department name, and employee number. 2. The number of hours of compensatory or vacation time of the donation within the limitations of Section A, subparagraph 3 above. 3. The name, department and employee number of the recipient. 33 55A-43 4. A statement indicating that the donor understands such donation of time is irrevocable. M 55A-44 ARTICLE XII 12.0 EMPLOYEE INSURANCE 12.1 Health Insurance. The City shall contribute an allowance towards the employee's Cafeteria Benefit plan for health insurance premiums for affected employees and their dependents under The Public Employees' Medical & Hospital Care Act (PEMHCA) which governs the California Public Employees' Retirement System (CalPERS) Health Insurance Programs pursuant to the provisions below. A. The City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $654.00 • Employee+l $1,307.00 • Employee + Family $1,700.00 B. Any contribution necessary to maintain benefits under any health insurance program provided by the City for its employees and their eligible dependents in excess of the amount of the City contribution to the Cafeteria Benefit Plan specified above shall be borne entirely by the employee. C. For each such employee who is covered under a spouse's non -City sponsored health plan, the City will pay the employee a cash -in -lieu payment (subject to taxation as wages) each month in an amount equal to one hundred percent (100%) of the monthly premium amount for the City's lowest "employee -only" coverage, if said employee waives, in writing, City -paid coverage. If an employee waives City provided coverage, said employee shall provide proof of medical insurance coverage in anon -City -sponsored health plan. Said waiver shall include a provision warning such employee that reentry into any of the City -sponsored plans is allowed only at open enrollment, unless there is a qualifying event, and may require proof of insurability for such employee and/or family. 12.2 Dental Insurance. The City agrees to contribute towards the Cafeteria Benefit Plan the payment ofpremiums for dental insurance plans provided by the City for employees covered by this MOU and their eligible dependents on the following basis: A. One hundred percent (100%) of the premium cost for "employee -only" coverage. B. Up to one hundred ten dollars ($110) permonthper employee for "family" coverage. 35 55A-45 Any contribution necessary to maintain benefits under said dental plans in excess of the amount of the City contribution to the cafeteria plan specified above shall be borne entirely by the employee. For each such employee who is covered under a spouse's non -City sponsored dental plan, the City will pay the employee a cash -in -lieu payment (subject to taxation as wages) each month in an amount equal to one -hundred percent (100%) of the City's contribution, if the employee waives, in writing, City -paid coverage. Such waiver shall include a provision warning such employee that reentry into any City -sponsored plan is allowed only at open enrollment, unless there is a qualifying event, and mayrequire proof of insurabilityfor such employee and/or family. 12.3 Disability Insurance. The City shall continue to pay one hundred percent (100%) of the premium cost for a long term disability insurance plan for employees covered by this MOU as said plan. Effective January 1, 2020, Police Management employees covered by this MOU shall receive a monthly benefit of sixty-six and two-thirds percent (66 2/3%) of their base monthly salary (to a maximum monthly benefit of $7,500). 12.4 Life Insurance. The City shall continue to pay one hundred percent (100%) of the premium cost for term life insurance coverage under the policy it maintains on behalf of its officers and employees in order to provide employees covered by this MOU with life insurance coverage in an amount equal to twice such employee's annual rate of salary to a maximum of three hundred thousand dollars ($300,000), provided said affected employees can provide evidence of insurability of coverage above one hundred fifty thousand dollars ($150,000) if so required by the terms and conditions of said tern life insurance policy. In the event any such employee is determined to be ineligible for said insurance coverage, the City will attempt to provide as much coverage as may be obtained at reasonable cost without having to provide evidence of insurability. 12.5 The City shall retain the right to change health, dental and life insurance carriers, administer the insurance benefits provided thereunder, and select and/or change any excess or supplemental insurance carriers as a part of any self-insurance plan during the term of this MOU, provided that employees covered by this MOU continue to receive equivalentbenefits and provided that the parties have met and conferred before the changes have been made. 12.6 Cafeteria Benefit Plan. The City provides a Cafeteria Benefit Plan adopted in accordance with the provisions of Internal Revenue Code § 125 for employees covered by this MOU. Affected employees will be eligible to receive cash (subject to taxation as wages) through the Cafeteria Benefit Plan if they either opt -out ofreceiving one of the optional benefits provided through the plan or if they choose optional benefits that do not cost as much as the maximum dollar amount they have received through the plan. in 55A-46 If two City employees are married, at least one of the two employees must maintain insurance coverage, The amount of money that can be redesignated by the employee waiving coverage is limited to the value of the "employee -only" level within each type of insurance. In the event the City experiences an adverse impact in rates due to utilization of the redesignation option, the City and PMA agree to meet and confer over the impact. 12.7 Medical Retirement Subsidy Plan. The City provides the "Vantage Care" Retirement Health Savings Plan ("RHS"), which designated ICMA-RC as the administrator of the plan. A. The City shall contribute two and three-quarter percent (2.75%) of base salary, plus pay additives. Effective July 1, 2019, the City shall contribute four (4%) percent of base salary, plus pay additives each pay period into the individual accounts of Association members established with the City's plan administrator ICMA-RC. Employees covered by this MOU shall continue to contribute one half of one percent (.50%) of base salary, plus pay additives, each pay period into their individual RHS accounts established with plan administrator ICMA-RC. 2. In addition to the contributions referenced above, an Association member may contribute unused sick leave, vacation, and other benefits to the trust as defined by the plan guidelines. 3. The program is not intended to create any form of lifetime insurance subsidy, benefit or entitlement. 12.8 Vision Insurance. The City shall maintain in effect its existing vision care plan through EyeMed, for employees covered by this MOU. This plan is voluntary on behalf of the employee and shall be fully funded by the participating employee. 37 55A-47 ARTICLE XIH 13.0 RESERVED m 55A-48 ARTICLE XIV 1[�:_ I: u ► 14.1 General. The terms of the existing contract between the City and California Public Employees' Retirement System (CalPERS) governing the City retirement benefits of employees covered by this MOU are incorporated by reference herein, The City shall continue to make contributions to CalPERS in accordance with its contract with CalPERS for employees covered by said contract as amended. 14.2 Deferred Retirement. The City will continue to make payment to CalPERS onbehalf of each affected employee, in an amount necessary to pay one hundred percent (100%) of his or her individual employee retirement contribution. Such payments shall be credited to the individual employee's CalPERS account. Such payments are not increases in base salary and no salary rate ranges 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. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, and not ordinary income. For thepurpose ofreporting an employee's compensation to CalPERS, the City shall include these payments as if they were part of the employee's base salary. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each said employee shall forthwith be increased by eighteen (18) salary rate ranges (approximately 9%) for "safety member" employees covered under the 3% at age 50 CalPERS formula and sixteen (16) salary rate ranges (approximately 8%) for all "miscellaneous member" employees covered under the 2.7% at age 55 CalPERS Formula. 14.3 1959 Survivor's Benefit. The City shall provide CalPERS fourth level of 1959 Survivor's Benefits to all eligible employees in the unit. 14.4 Pre -Retirement Optional Settlement 2 Death Benefit. The City shall provide the Pre - Retirement Optional Settlement 2 Death Benefit to all employees covered by this MOU. 14.5 2.7% at 55 Service Retirement Benefit for Classic Miscellaneous Members. The City agrees to continue to provide Classic Miscellaneous employees covered by this MOU who are defined as Classic Members under the California Public Employees' Pension Reform Act (PEPRA) of 2013 with the 2.7% at 55 Service Retirement benefit. Am 55A-49 Payment of 2.7% at 55 Service Retirement Benefit. Classic Miscellaneous employees covered by this MOU shall pay eight percent (8%) of CalPERS reportable compensation toward the employer cost of the 2.7% at 55 enhanced retirement formula. This payment shall be implemented as cost -sharing pursuant to Government Code section 20516(f), Pre -Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, this eight percent (8%) employee contribution shall be implemented through payroll deductions on a pre-tax basis. 2% at 62 Retirement Benefit for New Miscellaneous Members. The City agrees to provide Miscellaneous employees covered by this MOU who are defined as New Members under PEPRA, with the 2% at 62 Service Retirement benefit. The California Public Employees' Pension Reform Act (PEPRA) went into effect on January 1, 2013. The parties agree that if there is any other clean up or other retirement legislation which goes into effect during this MOU and if there are provisions of that legislation which, by law, automatically goes into effect, either party may request to negotiate over the legislation, including over the impact. Final compensation for New Miscellaneous Members will be based on the highest annual average compensation earnable during a period of at least thirty-six (36) consecutive months preceding the effective date of his or her retirement per Government Code Section 7522.32. Effective July 1, 2013, employees covered under the 2% at 62 retirement formula for Miscellaneous shall pay one half of the normal cost rate, as established by CalPERS. 14.6 3% at 50 Service Retirement Benefit for Classic Safety Members. The City agrees to continue to provide Classic Safety employees covered by this MOU who are defined as Classic Members under the California Public Employees' Pension Reform Act (PEPRA) with the 3% at 50 Service Retirement benefit. Payment of 3% at 50 Service Retirement Benefit. Effective January 1, 2018, Classic Safety employees covered by this MOU shall pay twelve percent (12%) of CalPERS reportable compensation toward the employer cost of the 3% at 50 enhanced retirement formula. This payment shall be implemented as cost -sharing pursuant to Government Code Section 205 t 6(o. Pre -Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations this twelve -percent (12%) employee contribution shall be implemented through payroll deduction on a pre-tax basis. 2.7% na 57 Retirement Benefit for New Safety Members. The City agrees to provide Safety 40 55A-50 employees covered by this MOU who are defined as New Members under PEPRA with the 2.7% @ 57 Service Retirement benefit. The California Public Employee's Pension Reform Act (PEPRA) went into effect on January 1, 2013. The parties agree that if there is any other clean up or other retirement legislation which goes into effect during this MOU and if there are provisions of that legislation which, by law, automatically goes into effect, either party may request to negotiate over the legislation, including over the impact. Final compensation for New Safety Members will be based on the highest annual average compensation eamable during a period of at least 36 consecutive months preceding the effective date of his or her retirement. per Government Code Section 7522.32. Effective July 1, 2013, employees covered under the 2.7% @ 57 retirement formula for Safety shall pay one half of the normal cost rate, as established by CalPERS. 14.7 Military Service Credit as Public Service. "Safety" employees and "miscellaneous" employees may elect 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 per Government Code Section 21024. 14.8 Credit for Unused Sick Leave at Retirement. All sworn and non -sworn employees covered by this MOU can have unused accumulated sick leave at the time of retirement converted to additional service credit at the rate of 0.004 years of service credit for each day, eight (8) hours per day, ofunused sick leave (i.e., 200 days of sick leave equals .80 additional years of service credit), pursuant to regulations prescribed by PERS. Effective upon adoption of this MOU, the maximum total unused sick leave that can be converted shall be two -hundred fifty days (250) eight (8) hours working days equal to two thousand (2000) hours. Any accumulated sick leave in excess of 2000 hours shall be forfeited. The City must report only those hours of unused sick leave that were accrued by the employee during the normal course of employment. This section applies to members whose effective date ofretirement is within four (4) months or 120 days of separation from employment. (Government Code Section 20965) 41 55A-51 ARTICLE XV 15.0 TECHNOLOGY STIPEND 15.1 The City shall provide a $75 a month Electronic Device Stipend ("Stipend") for those Association employees whose positions require the regular use of a cell phone and/or tablet and who choose to use their own personal devices for business -related conversations and activities. These employees may be eligible to receive a Stipend to compensate for business - related costs incurred while using their individually -owned electronic devices. Eligibility for the stipend requires the employee to return to the City any City issued electronic device for which the employee will be substituting his or her personal device. 42 55A-52 ARTICLE XVI 16.0 EXPANDED RESIDENCY 16.1 The City shall continue to permit employees covered by this MOU to reside outside the limits of Orange County, so long as such residency is not an unreasonable distance nor requires an unreasonable response time to the particular employee's place of employment. Any affected employee who desires to take advantage of the opportunity to reside outside of Orange County shall fast request permission to do so from the Police Chief. Said request shall be granted by the Police Chief if it is determined that the intended residence is not an unreasonable distance nor requires an unreasonable response time to the employee's place of employment. Should the Police Chief refuse any such request, the employee shall have the right to appeal said determination to the City Manager for reconsideration. W 55A-53 ARTICLE XVII 17.0 CONTROLLED PARKING AND TAKE HOME VEHICLE PRIVILEGES 17.1 Parkins. The City shall provide non -sworn employees covered by this MOU with free panting for personal vehicles during on -duty hours in controlled parking facilities in the Civic Center area. 17.2 Take Home Vehicle. All employees in the classifications of Deputy Chief of Police and Police Commander shall receive a City -owned and maintained vehicle for traveling between the employee's residence and the Police Department or other business -related location, as necessary in the performance of his or her duties. 44 55A-54 "MAOCNOWVI111 18.0 DISCIPLINE 18.1 An employee covered by this MOU may only be disciplined in accordance with the standards and procedures and subjects to all rights of appeal set forth in Section 1000d of the City Charter and Municipal Code Sections 9-9, 9-10, 9-118.1 et. seq. 18.2 In addition, anew section shall be added to the Municipal Code to provide as follows: A. In the event an employee is ordered to absent himself from the job based on probable cause and it is subsequently determined by the Police Chief, the City Manager, Personnel Board or a court of competent jurisdiction, that cause did not exist for the ordered absence, the employee shall have restored to him any paid leaves of absence against which such absence may have been charged, and he shall be granted a retroactive leave of absence with pay for the time during which he was prohibited from performing the duties ofhis position, less any compensation paid to him bythe City during such ordered absence. B. In the event an employee is reduced, suspended, and/or discharged, and upon appeal the City Manager, Personnel Board or a court of competent jurisdiction does not sustain such reduction, suspension, and/or discharge, the employee shall be entitled to his base rate of salary including all additives, vacation, and sick leave as if such unsustained reduction, suspension, or discharge had not been invoked. However, in no event shall an employee be entitled to any salary credit for vacation and sick leave for any period of time covered by a suspension sustained on appeal or for any period of time waived by the employee as a condition to the granting of a continuance of any hearing on appeal. C. If, during an absence for which an employee is paid pursuant to this Section, he earned any money which he would not have earned had he continued to perform the duties of his position, such sum shall be deducted from the salary otherwise payable to him pursuant to this Section. 45 55A-55 ARTICLE XDC 19.0 GRIEVANCE REVIEW PROCEDURE 19.1 Definition of a Grievance. A grievance shall be defined as a timely complaint by an employee or group of employees of 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 Personnel Board by those provisions of the City Charter and the Civil Service Rules and Regulations. No employee shall suffer any reprisal because of filing or processing of a grievance or participation in the Grievance Review Procedure. 19.2 Informal Process. A. An employee must first attempt to resolve the grievance on an informal basis through discussion with his or her immediate supervisor without undue delay, but in no case, beyond a period often (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 given rise to the grievance. B. Every effort shall be made to find an acceptable solution to the grievance through this informal means at the most immediate level of supervision. C. In order that this informal procedure maybe responsive, both parties involved shall expedite this process. If, within five (5) working days, amutually acceptable solution has not been reached at the informal level, the employee and/or the employee's designated representative shall then set forth the grievance in writing, indicate the nature of the action desired, sign it, and submit it to the Police Chief. At this point, the grievance review process becomes formal. Should the grievant and/or his or her designated representative fail to file a written grievance, and in the manner specified above, within ten (10) working days after first discussing the grievance with the employee's immediate supervisor, the grievance shall be barred and waived. 19.3 Formal Process, A. If a grievance is not resolved through the informal process, and a written grievance is filed within the time limits set forth above, the grievant's immediate supervisor shall add his or her comments and any justification he or she considered proper, sign it, and forward it to the Police Chief without undue delay or, in no case, more than ten (10) calendar days, m 55A-56 B. If the grievant files a written grievance to the Police Chief in the manner and within the time limits specified, then a conference shall be held at the request of the employee or the Police Chief. C. Police Chief shall inform the employee of his or her action within ten (10) calendar days of the conference referenced in subsection (B) above. The original of the grievance form and the Chief s decision shall be filed in the Personnel Records of the Department. D. If no satisfactory settlement has been reached at the Department level, the employee may, within ten (10) calendar days after being informed by the Police Chief of his or her decision on the matter, and the reasons thereof, submit the grievance in writing to the City Manager, or his or her duly authorized representative, for determination. Failure of the grievant to take this action will constitute a waiver and bar to the grievance, and the grievance will be considered settled on a basis of the Police Chiefs response. E. The City Manager or his or her duly authorized representative, after a careful review, shall render a final decision on the merits of the grievance, in writing, and return it to the grievant within thirty (30) calendar days after receiving the grievance. A copy of the written grievance to the City Manager, or his or her duly authorized representative, and of the City Manager's or his representative's written decision shall be filed in the Personnel Records of the Department and the grievant's personnel jacket maintained in the Human Resources Department. F. After the procedures set forth in this Article have been exhausted, the grievant, the Association, and the City shall have all rights and remedies to pursue said grievance under the law. 47 55A-57 ARTICLE XX 20.0 DUES DEDUCTION AND INDEMNIFICATION 20.1 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. 20.2 Indemnification. The Association agrees to hold the City harmless and indemnify the City against any claims, causes of action, or lawsuits instituted by a member or members of the Association arising out of the deductions or transmittal of 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. am 55A-58 ARTICLE XXI 21.0 CITY RIGHTS 21.1 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 existence or non-existence of facts which are the basis of the Management decision. C. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services. D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. E. To determine methods of financing. F. To determine types of equipment or technology to be used. G. To determine and/or change the facilities, methods, technology, means, and size of the workforce by which the City operations are to be conducted. H. 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 contract for or subcontract any work or operation of the City. I. 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. To relieve employees from duties for lack of work or similar nondisciplinaryreason, subject to the provisions of the City Charter, Municipal Code, Federal and State law and this MOU. K. To establish and modify productivity and performance programs and standards. L. To discharge, suspend, demote, or otherwise discipline employees for proper cause in ELI 55A-59 accordance with the provisions set forth in the City Charter and Santa AnaMunicipal Code. M. To determine job classifications and to reclassify employees. N. To hire, transfer, promote and demote employees for nondisciplinary reasons in accordance with this MOU. O. To determine policies, procedures and standards including, but not limited to, quality and quantity standards and to require compliance therewith. P. To establish employee performance standards including, but not limited to, quality and quantity standards and to require compliance therewith. Q. To maintain order and efficiency in its facilities and operations. R. 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. S. To take any and all necessary action to carry out the mission of the City in emergencies. 21.2 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 this MOU. 21.3 La offs. During the term of this MOU, the City agrees to meet and confer regarding both the decision and the impact of layoffs to the ranks of Police Commander or Deputy Chief of Police, respectively. 21.4 Transfer of Bargaining Unit Work. As required by the Meyers-Milias-Brown Act, the City agrees to meet and confer prior to the implementation of said transfer as follows: A. Transfer of bargaining unit work from an Association classification to a class not represented by the Association; or B. Transfer of work from a classification outside the Association to a classification represented by the Association. 50 55A-60 ARTICLE XXII 22.1 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, workout, 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. 22.2 Association Responsibility. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Subsection A, Section 22.1 above of this Article, 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 the conduct prohibited and return to work. 51 55A-61 ARTICLE XXIH 23.0 SOLE AND ENTIRE AGREEMENT 23.1 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 ofunderstanding, 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. 23.2 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. 52 55A-62 ARTICLE XXIV 24.0 WAIVER OF BARGAINING DURING THE TERM OF MOU 24.1 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 of conditions of employment, whether or not covered by this MOU or in the negotiations leading thereto, unless required by specific provision 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. 53 55A-63 ARTICLE XXV 25.0 SEVERABILITY PROVISION 25.1 Should anyprovision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction or by statue, 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 replace the invalidated benefits with benefits of comparable value. 54 55A-64 ARTICLE XXVI 26.0 TERM OF MOU 26.1 The term of this MOU shall be from July 1, 2018 through June 30, 2021. 55 55A-65 ARTICLE XXVII 27.0 RATIFICATION AND EXECUTION 27.1 The City and the Association have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge the City Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and the Association acknowledge that this MOU shall not be in full force and effect until ratified by the membership of the Association and adopted by the City Council of the City of Santa Ana, Subject to the foregoing, this MOU is hereby executed by the authorized representatives of the City and the Association and entered into this 20' day of August, 2019. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: MAYOR Dated: By: CITY MANAGER Dated: EXECUTIVE DIRECTOR OF HUMAN RESOURCES ATTEST: CLERK OF THE COUNCIL APPROVED AS TO FORM: A - P. ,,'&. Ah�'t ct glte�ne� CITY ATTORNEY 56 55A-66 This 2018-2021 SAPMA Memorandum of Understanding has been ratified by the membership of the Santa Ana Police Management Association. Dated: By: PRESIDENT, SANTA ANA POLICE MANAGEMENT ASSOCIATION 57 55A-67 55A-68 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT IN THE AMOUNT OF $277,818; ADOPT A RESOLUTION AMENDING RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN; AND APPROVE A MEMORANDUM OF UNDERSTANDING WITH THE SANTA ANA MANAGEMENT ASSOCIATION (SAMA) (STRATEGIC PLAN NO. 7, 4, & 6) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2n1 Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve an Appropriation Adjustment transferring $277,818 from General Fund Non - Departmental into the appropriate General Fund Accounting Units (Exhibit 1). 2. Adopt a Resolution Amending Resolution No. 2015-026 to effect certain changes to the City's Basic Classification and Compensation Plan (Exhibit 2). 3. Authorize the City Manager and the Clerk of the Council to execute a Memorandum of Understanding with the Santa Ana Management Association (SAMA) for the period January 1, 2019 through June 30, 2022, regarding wages and other terms of conditions of employment (Exhibit 3). DISCUSSION The current Santa Ana Management Association (SAMA) Memorandum of Understanding (MOU) expired on December 31, 2018. Per the terms and conditions of that MOU, negotiations with SAMA for a successor MOU commenced and resulted in a new three and one-half year agreement that has been ratified by the membership of SAMA. 55B-1 Agreement with SAMA 2019-2022 August 20, 2019 Page 2 The major provisions of this agreement include: 1. Term: Effective January 1, 2019 through June 30, 2022. 2. Salary: The agreement provides a cost of living adjustment of 3.5% effective July 1, 2019; 2020; 2021. Medical: Effective January 1, 2020, the City shall contribute an additional $50.00 allowance per month towards employee health insurance premiums. Effective January 1, 2021, the City shall contribute an additional $50.00 allowance per month towards employee health insurance premiums. Effective January 1, 2022, the City shall contribute an additional $50.00 allowance per month towards employee health insurance premiums. 4. Dental: Effective January 1, 2020, the City shall contribute an allowance of $120 per month per employee. Effective January 1, 2021, the City shall contribute an allowance of $125 per month per employee. Effective January 1, 2022, the City shall contribute an allowance of $130 per month per employee. 5. Long Term Disability (LTD): Effective January 1, 2020, the City shall increase the maximum plan coverage benefit from $5,000 to $10,000. 6. Holidays: Effective January 1, 2020, the City shall add Cesar Chavez Day as a City recognized holiday and add one additional (1) Floating Holiday. 7. Holiday Closure: The City and SAMA have agreed to a mandatory City-wide winter holiday closure each year during the term of this MOU and shall sunset on June 30, 2022. 8. Management Vacation: Effective January 1, 2020, the City shall increase Management Vacation (Management Leave) from 50 hours to 65 hours per calendar year. 9. Technology Stipend: Upon adoption of the MOU, City shall increase the technology stipend from $75 per month to $100 per month. 10.Wellness and Fitness Reimbursement: Effective January 1, 2020, the City shall provide employees reimbursement up to $300 per fiscal year for qualified wellness and fitness programs. 11. Retiree Health Savings (RHS): Upon adoption of the MOU, City will contribute 1 % of base pay to employee's ICMA-RC (RHS) account upon adoption of the MOU. 12. Credit of Unused Sick Leave: Upon adoption of the MOU, employees with at least ten (10) years of full-time City service that retire from the City within one -hundred -twenty (120) days of separation from employment can convert up to two thousand (2000) hours of accrued un- used sick leave towards CalPERS service credit. 55B-2 Agreement with SAMA 2019-2022 August 20, 2019 Page 3 13.Amend Resolution 2015-026 of the City's Basic Classification and Compensation Plan to move the following five (5) full-time classifications from the Confidential Association of Santa Ana to the Santa Ana Management Association's Administrative Management unit at the monthly five -step salary rate ranges (prior to salary increase effective 7/1/19, item #2 above) as noted in Exhibit 2. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #7 — Team Santa Ana, Objective #4, Establish employee compensation that attracts and retains a highly qualified workforce, objective #5, Create a culture of innovation and efficiency within the organization, objective #6, Provide a positive workplace environment that supports the health of its employees and celebrates its success, and objective #7 Develop a culture of motivated and innovative leaders in the organization. FISCAL IMPACT Fund are available in the affected departmental salary accounts (no. 61000). It is estimated thal this agreement will result in a net cost to the City of $436,136 for FY 19-20, $922,056 for FY 20-21 and $1,268,242 for FY 21-22 for a total of $ 2,626,434 during the term of this agreement LW_ N Steven V. Pham Executive Director Human Resources APPROVED AS TO FUNDS AND ACCOUNTS: k Kathryn Do s, CPA Executive Director a-7 Finance and Management Services Agency Exhibits: 1. SAMA EXHIBIT 1: FY 2019-20 2. Resolution to amend City's Basic Classification and Compensation Plan 3. SAMA MOU January 1, 2019 through June 30, 2022 55B-3 55B-4 SAMA EXHIBfF L FY 201 20 GfNEPACFUNO M,.—m A®uMryUnh Numbea Amuntlq Unh Hame 1.1finpact Oty Mavgnes OLfi 01103010 AdmNW¢tbn 16,123 dark oftne CnunN 01107031 AdmNkenOon 6,a. Oty Atmmefs ONke Ol.adn O AMmNa ORl 81,5 Human Rewurm 011MW Humam Pewu¢ea 8,351 Finance 011101W M.,—mt&Support 13,906 Flnan¢ 01110110 A®untAg 7,892 Finance 01110115 Payroll 7J9g FNan¢ 01110"0 Treasury 3,166 Paris &PeneaOon Agmry 01113220 2m 7,9{1 PaM1s&Paamlon AOmry 01113230 Pemiatbn& fommumRy Sem ces 8,152 Paris& PeraeaOan Agency 011132W Pah F.Caides 13,953 Polka Department 0111A Offxe OFMOakI a,921 Planning &BUI1dIn0 Aganry 01116503 AcmNkOrtbn 8,OU Planning & Building Avxy 01116510 Planning 27AID Planning & Building 4ema 01136520 New Eo..., 11,258 Planning & Building Agmry 03E36560 Gdeukmammt 2LZ47 Publl[WaM1x Nanry 011276. Trafflc/ranxportatbn Engineering 7,136 Public Wmb Agenry 01I17663 Senllatbn5ervkn 62W EommunlN Oev<Iapment Nan, 01119810 Emnom"welopment Liss fommunity Dwekpmmt Agmry 01118811 Homehs Xnea- 7,503 AddMovSubMNd 2n,810 NOQepWaNrrenUl(MLL FOAPOOtWIDA5Ql5 M NNon Geneml Fund GmmlNan-0epertmenGl j33)AUj GFIIFMIfUNO N£1fISfALIMPAR a OeWrtment MmuMna Unit Number A®umbylMAName Fb¢I Impact Human Rmkurt OBQTI051 Oena¢IWblu[y 7,076 Human R—o— 081030S3 Employee Gmup Benenb ),01) Human R—m.. 092MM Woriem'Eampen¢Uon .2.1 Publl[WorS[ASenry 03171M BuIMng Malntmen¢ 6,713 Publk Worls Agmry 0]51]1W Bien Malntenan[e Publl[Wori[A{enry W617611 fnmhutlbn FngneMng 10,639 lubll[Wmis Pgmry U617612 OeslN Engln¢M8 10,639 Publl[ Worts ABmry 101175l AdmINMWn 11947 PublicworaA{mry loll)WS Cevebpmmt E,unimm, 6,763 ofarmaelonTMnkic, IM201M HelenH{&Telnommuol¢Oon[ ".1 klc- Jon TttumWgy IM20141 Ememmisndems 9j41 Inlmmatbn Techmbey I093014) Don,.[er 4,W1 AddhbvSubcotol 80AI4 OaPratmem Number A®u Xumber Amud*,'Mea, Fb¢83 Prank. 02SUnn Pakam, [n )63 PubncWofla4mcy 0561D1317W 0561)610 Lnd 2,6W Publl[Warismam, 05317M 3annee Fedemlhan Watup 8440 Publle Worie Nenry Wa[u ),29) PubllcWoha A{mry C601)640 0601)611 ata...ninumany WaanS Melntman¢ 2,6W Publle Wodu Nenry OWI2fi41 Wail WFW OuaBty 2.693 Publl[Woha Agency C601)615 Scus 5,636 Publlew.Hul enry a680640 `makan-lbtaa[lon FnrVoidwnry Sanln,0 6,a90 Publl<worci4em, _ Roativay 0eaning 6,682 publk WaM1l A{enry .917. ReNU COBcttbnServl[e 9,68E riams.W AddltlenlSubroNl W,543 mwN r. G;gGmnb&OLefFn edFuasi&'e.5. � PowHmmM1 Auwrrtb{Unn Numkea A®uaNnvunnwma Fk¢I lmpaG Publle WohaA{enry M917620 GasTaa-TnMaSI{nal MalnL Lan Human Rauumm"a, 03IMW AOMOHR 3,26E Planning &Building M-W 0311651D AW.I. M3 fommunity Dweiopment Agency 13.M. HOMEFMMM L269 EommunlryO oopmmt A&emy U318780 Houan{Audiomy 418 Dommuni i,l).lapin.A{mry 135197M MaG 2,020 Enmmuniry0.veiapment Agmry 1401876D Houaln{Authmu, ZWD Community Development Pgmry 41718820 Houau Aulhorlry 2A)O Pommunity Dwdopmealkenry 60)2g810 Sucanor HouLng Agenry Lan CommunlrypevelopmentNerXy 62018843 Sucomaoragency 5A68 AddMaal SPW.t ",a. A00{S M GMNO TOTAL(AU FUNOSf A3G136 55B-5 55B-6 EXHIBIT 2 RESOLUTION NO. 2019-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Section 1004, Article X of the City Charter of the City of Santa Ana requires the City Manager to prepare, install and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. On June 16, 2015, the City Council adopted Resolution No. 2015-026 amending and re-establishing the Basic Classification and Compensation Plan for all Full -Time and Part -Time Classifications of Officers and Employees of the City of Santa Ana. C. It is the City's practice to assign job titles that reflect the duties and responsibilities of the classification and are consistent with other classifications within the City's organizational structure as well as comparable job titles in the labor market, while maintaining internal pay equity relationships and attracting and retaining qualified candidates. D. The Human Resources Department has completed a review of the various departmental requests to make changes to the City's organizational structure, classification titles, and staffing which revealed the need to effect certain changes to the City's basic classification and compensation plans. E. The City Council has amended and reestablished the Basic Classification and Compensation Plan on numerous occasions since its adoption. F. It is now desired to amend Council Resolution No. 2015-026, as amended, in order to effect these changes, as shown below: Section 2: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "B" as follows: A. Deleting the title for the following full time classification titles at the monthly six -step salary rate range indicated: Resolution 2019-XXX Page 1 of 3 #5358v2 55B-7 Classification Title Secretary to the City Manager (UC) Senior Budget Analyst (UC) Senior Financial Analyst (UC) Senior Human Resources Analyst (UC) Senior Management Analyst (UC) 6-Step Salary Rate Range Effective 09/01/17 Monthly Salary SSR Minimum -Maximum 666 $5840 - $7453 697 $6791-$8668 707 $7133 - $9102 707 $7133 - $9102 697 $6791 - $8668 Section 3: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "E" as follows: A. Adding the following full time classification titles at the monthly five -step salary rate range indicated: Classification Title Secretary to the City Manager (AM) Senior Budget Analyst (AM) Senior Financial Analyst (AM) Senior Human Resources Analyst (AM) Senior Management Analyst (AM) 5-Step Salary Rate Range Effective 09/01/17 Monthly Salary SSR Minimum -Maximum AM-676 $6131 - $7453 AM-707 $7133 - $8668 AM-717 $7490 - $9102 AM-722 $7674 - $9330 AM-707 $7133 - $8668 Section 4: All salary rate range classifications are set forth in the City's "Salary Schedule' as periodically updated. Section 5: That except as amended by this Resolution, all other provisions of Resolution No. 2015-026 as amended shall remain in full force and effect Section 6: This Resolution is operative from and after the date upon which it is adopted. ADOPTED this 20th day of August, 2019. Miguel A. Pulido Mayor Resolution 2019-XXX Page 2 of 3 55B-8 APPROVED AS TO FORM: By:�,,,2,R, 0-1 J,� Sonia R. Carvalho City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-_ to be the original Resolution adopted by the City Council of the City of Santa Ana on August 20, 2019 Date: Resolution 2019-XXX Page 3 of 3 Clerk of the Council City of Santa Ana #5358v2 55B-9 55B-10 EXHIBIT 3 OF UNDERSTANDING BETWEEN CITY OF SANTA ANA Fo-wo SANTA ANA MANAGEMENT ASSOCIATION January 1, 2019 — June 30, 2022 SANTA ANA MANAGEMENT ASSOCIATION (SASWU f 1-2022 0 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA MANAGEMENT ASSOCIATION FOR FISCAL YEARS 2019-2022 TABLE OF CONTENTS ARTICLE I RECOGNITION 3 ARTICLE II PURPOSE AND INTENT 4 ARTICLE III IMPLEMENTATION 5 ARTICLE IV ATTENDANCE, WORKDAY, WORKWEEK & WORK SCHEDULE 6 ARTICLE V SALARIES 9 ARTICLE VI ADDITIONAL COMPENSATION 17 ARTICLE VII OVERTIME PAY 18 ARTICLE Vlll HOLIDAYS 19 ARTICLE IX VACATION 23 ARTICLE X OTHER LEAVES OF ABSENCE 27 ARTICLE XI EMPLOYEE INSURANCE 37 ARTICLE XII WELLNESS & FITNESS REIMBURSEMENT 41 ARTICLEXIII RETIREMENT 42 ARTICLE XIV TRAINING & EDUCATION ASSIST. PROGRAM 45 ARTICLE XV ELECTRONIC DEVICE STIPEND 48 ARTICLE XVI STRIKES AND WORK STOPPAGES 49 ARTICLE XVII SOLE AND ENTIRE MOU 50 ARTICLE XVIII SEPARABILITY PROVISION 51 ARTICLE XIX GRIEVANCE REVIEW PROCEDURE 52 ARTICLE XX WAIVER OF BARGAINING DURING THE TERM OF THIS MOU 54 ARTICLE XXI EMERGENCY WAIVER PROVISION 55 ARTICLE XXII TERM 56 ARTICLE XXIII NON-DISCRIMINATION 57 ARTICLE XXIV RATIFICATION AND EXECUTION 58 EXHIBIT A ADMINISTRATIVE MANAGEMENT JOB TITLES 60 EXHIBIT B MIDDLE MANAGEMENT JOB TITLES 61 SANTA ANA MANAGEMENT ASSOCIATION (SA tMily022 ARTICLE I 1.0 RECOGNITION 1.1 Pursuant to the Employee Relations Resolution of the City of Santa Ana (Resolution Number 81-075) and applicable State law, the City of Santa Ana (hereinafter called "the City") certified the Santa Ana Management Association (herein after called "SAMA") on September 25, 2002, as the majority of the Middle Management and Administrative Management Representation Unit (hereinafter called the "Unit") previously found appropriate by the Employee Relations Officer. The City hereby recognizes SAMA as the certified majority representative of the full time employees in said Unit. The term "employee" or "employees" as used herein shall refer only to full-time employees employed by the City in said Unit in the employee classifications comprising said Unit as listed in the attachments shown as listed "Exhibit A & B," as well as such classifications as may be added hereafter by the employee designated as the employee relations officer pursuant to Resolution No. 81-75. SANTA ANA MANAGEMENT ASSOCIATION (SJSBU:, 32022 -73 ARTICLE II 2.0 PURPOSE AND INTENT 2.1 It is the purpose of this Memorandum of Understanding MOU (hereinafter referred to as MOU) to promote and provide for harmonious relations, cooperation and understanding between the City and employees covered by this MOU. It sets forth the full and entire understanding reached in good faith negotiations regarding the wages, hours, terms and conditions of employment of employees covered by this MOU. 2.2 Notwithstanding the following provisions of this MOU, the parties agree that they have intended nothing herein to entitle, alter, or award Civil Service rights or privileges to any employee represented by SAMA who is in the Excepted Service of the City. SANTA ANA MANAGEMENT ASSOCIATION (SA M-I N022 M ARTICLE III Kxwu1;aile1&11`►(t1�V MCa]►1 3.1 This MOU constitutes a recommendation jointly submitted to the City Council of the City of Santa Ana. The parties agree that this MOU shall not be binding upon the parties until said City Council: A. Acts, by majority vote, formally to approve said MOU and, B. Acts to appropriate the necessary funds required to implement the provisions of this MOU that require funding. 3.2 Implementation shall be effective as of the date the MOU is both approved by the City Council and the funding has been appropriated pursuant to Section 3.1 above. If the parties fail to agree to implement provisions of this Memorandum not requiring City Council approval, then negotiations shall resume upon the request of either party. SANTA ANA MANAGEMENT ASSOCIATION (SA .g't 152022 ARTICLE IV 4.0 ATTENDANCE, WORKDAY, WORKWEEK, & WORK SCHEDULE 4.1 Attendance. All full time SAMA employees covered by this MOU shall be in attendance at their assigned worksite during hours prescribed by the City Manager or Executive Director they report to, or designee(s) and shall not absent themselves during prescribed hours without authorization. SAMA employees shall not be required to submit Leave of Absence Requests for absences of two (2) hours or less. 4.2 Hours of Work. Eight (8) hours of work shall constitute a normal day and forty (40) hours of work shall constitute a minimum workweek, except for employees for whom special regulations have been approved by the City Manager. A. 4/10 Work Schedule. The Executive Director, with the approval of the City Manager, may assign SAMA employees to a workweek consisting of four (4) ten (10) hour day with an additional one-half (1/2) or one (1) hour for unpaid lunch periods. The regular workweek shall consist of forty (40) hours. A regular day off shall consist of ten (10) hours. B. 9/80 Work Schedule. All SAMA employees shall be permitted to work a 9/80 work schedule when authorized by the Executive Director and approved by the City Manager. A SAMA employee will not be permitted to work this schedule if in the discretion of the Executive Director and City Manager, the 9/80 work schedule may reduce service to the public. 1. 9/80 Work Schedule Defined. The 9/80 work schedule shall be defined as working eighty hours over nine days in a two -week period. An employee shall work eight days for nine hours per day and one day for eight hours, excluding a one -hour lunch break during each work shift, totaling forty (40) working hours in each work week. a. The Work Week Period. The forty (40) hourwork weekperiod shall be defined as the work period starting from Friday at mid -shift to Friday at mid -shift. No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will occur in the middle of the day on Fridays. b. The 9/80 Work Period. The 9/80 two -week work period for employees starts Friday mid -shift and continues for fourteen (14) days until Friday mid -shift. During this period, each week is made SANTA ANA MANAGEMENT ASSOCIATION (SttjgU:1161022 M up of four nine -hour work days (thirty-six hours) and one four-hour Friday and those hours equal forty work hours in each work week (e.g., the Friday is split into four hours for the first shift, which is charged to work week one and four hours for the second shift, which is charged to work week two). C. SAMA employees cannot change schedules without prior approval of their Executive Director. The purpose of this authorization is to review the impact on supervision, staffing and workload. Employees may change schedules at the beginning of any work period with approval of their Executive Director. d. Modifications of the 9/80 work week period are not permitted unless authorized by the Executive Director of Human Resources and the City Manager. C. Emergencies: All SAMA employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions that, in the opinion of the City Manager, Executive Director or designee, may require such service from any of said employees. 2. Leave Benefits. When a SAMA employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 3. Holidays. Provisions for holiday leave are found in Article VIII of this MOU. 4. Jury Duty Leave. The provisions of the MOU shall continue to apply; however, if an employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a City holiday, then the jury duty shall be considered the same as having occurred during employee's day off work. SANTA ANA MANAGEMENT ASSOCIATION (S15{J 0L1J6F-2022 M 4.3 It is intent of the parties that no additional paid time off shall be gained or lost as a result of implementing any alternate work schedules. The City and SAMA agree to meet and confer to discuss abandoning any work schedule and implementing an alternate work schedule if the current schedule has not achieved the desired results. SANTA ANA MANAGEMENT ASSOCIATION (SA -1v022 M ARTICLE V 5.0 SALARIES 5.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all full-time personnel who are now employed or will in the future be employed in any of the designated classifications of employment represented by SAMA as listed in this MOU and its attachments. 5.2 Schedule of Salaries. A. Two separate schedules of salary rate ranges, one for classifications of employment designated as SAMA Middle Management (MM) assigned to 17-step monthly salary rate ranges, and one for classifications of employment designated as SAMA Administrative Management (AM) assigned to 5-step monthly salary rate ranges, are attached hereto in matrix format as though set forth herein. The assignment of classifications to salary rate ranges for SAMA Middle Management (MM) and SAMA Administrative Management (AM) is listed in the City's salary schedule, as periodically updated and published by the City. B. The basic salary schedule for SAMA Middle Management classifications contains numerous salary rate ranges, each range comprised of seventeen (17) separate rates of pay shown in monthly amounts. The respective rate ranges are identified by a two -digit number preceded by the capital letters "MM." The separate rates of pay or steps within each salary rate range are identified by the numbers "1" through "17" inclusive, with Step "1" being the lowest or minimum rate of the range, Step "9" the middle or midpoint rate of the range, and Step "17" being the highest or maximum rate. The purpose of each step and criteria for advancement are set forth in Subsection 5.8(A) below. C. The basic salary schedule for SAMA Administrative Management contains salary rate ranges comprised of five (5) steps or rates of pay shown in monthly amounts, identified by the letters "A" through "E" inclusive, with Step "A" being the lowest step in the range. The purpose of each step and criteria for advancement to the next higher step within a particular salary rate range are set forth in Subsection 5.8(B) below. SANTA ANA MANAGEMENT ASSOCIATION (SAS , 192022 M 5.3 Salaries A. Effective July 1, 2019, the base salaries of classifications represented by this MOU shall be increased by three and one-half percent (3.5%). B. Effective July 1, 2020, the base salaries of classifications represented by this MOU shall be increased by three and one-half percent (3.5%). C. Effective July 1, 2021, the base salaries of classifications represented by this MOU shall be increased by three and one-half percent (3.5%). 5.4 Application of Basic Compensation Plan. The salary rate ranges contained in Subsection 5.2 are monthly salary rate ranges. All employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate. 5.5 Probation. Except for employees in the Excepted Service as defined by the City Charter and employees re-employed from re-employment eligible lists, the probationary period shall be one (1) year from the date of appointment from an open eligible list (new hire) or a reappointment eligible list (rehire) or appointment from a promotional eligible list. 5.6 Beginning Rates A. SAMA Middle Management Classifications. An employee appointed to a Middle Management classification shall be compensated at any rate within the lower third of the 17 step salary rate range (Steps "1" through "6") for their job classification as authorized by the Appointing Authority. When economic conditions, unusual employment conditions, or exceptional qualifications of a candidate for employment indicate a higher rate would be in the City's best interest, the City Manager may authorize hiring at a higher rate in the salary rate range but this higher rate generally shall not be above the midpoint. B. SAMA Administrative Management Classifications. An employee appointed to an Administrative Management classification may be placed by the Appointing Authority at any step within the applicable five (5) step salary rate range (Steps "A" through "E") in the schedule to which the classification has been assigned through adoption of this MOU, provided that such employee shall be assigned such salary step upon the commencement of his or her service in said classification and such assignment having once been made shall remain in effect until the said employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article as set forth below. SANTA ANA MANAGEMENT ASSOCIATION (SA M2lpr2022 m 5.7 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 rate range and having generally similar duties and requirements. Notwithstanding the above, employees in classifications represented by SAMA who are hired after the first (I") working day of the month shall not be credited with time in service for that month when determining the length of service for salary advancement. A lapse of service by an employee for a period of time longer than ten (10) calendar days, by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purpose of this MOU, and any such employee reentering the service of the City shall be considered as a new employee, except that he or she may be reappointed as provided in Santa Ana Municipal Code (SAMC) Chapter 9-114 and may be placed in the same salary step in the appropriate salary rate range as he or she was at the time of termination of employment. 5.8 Advancement Within Ranees, A. SAMA Middle Management Classes: The following provisions shall govern salary advancement within rate ranges for employees employed in SAMA Middle Management classes: Steps "1" through "15" Advancement: For any employee in a SAMA Middle Management classification covered by this MOU who has been initially appointed to a step lower than Step "15", advancement in the SAMA Middle Management schedule of salary rate ranges may be granted only for continued meritorious and efficient service by said employee in the effective performance of the duties of his or her position. Such advancement shall be in two-step increments, each step being equivalent to 2.5%, for a total increase of 5% per year, until Step "15" is achieved. For example, an employee covered by this MOU shall advance from Step 1 to Step 3, Step 3 to Step 5, Step 5 to Step 7, Step 7 to Step 9, Step 9 to Step 11, Step I I to Step 13, or Step 13 to Step 15. The effective date of such merit step increase, if granted, shall be the first (11) day of the month following the completion of one (1) year of service at the step from which said employee is being advanced. SANTA ANA MANAGEMENT ASSOCIATION (SABSS V,21-2022 2. Advancement to Steps "16" and "17": Any employee in a SAMA Middle Management classification covered by this MOU, who has reached Step "15" or Step "16" in the SAMA Middle Management schedule of salaryrate ranges, may advance to the next higher step in the SAMA Middle Management schedule of salary rate ranges only for continued meritorious and efficient service by said employee in the effective performance of the duties of his or her position. Such advancement shall be in one-step increments, each step being equivalent to 2.5% per year until Step "17" is achieved. For example, an employee covered by this MOU shall advance from Step "15" to Step "16", and Step "16" to Step 17", respectively. 3. Any current SAMA Middle Management employee who previously advanced through the steps of each salary rate range using his or her initial date of hire into a middle management class shall retain that date as the anniversary date for purposes of advancing through the steps of each salary rate range while in his or her current class and for any subsequent promotions to a SAMA Middle Management class. The effective date of such merit step increase, if granted, shall be the first (I") day of the month following the anniversary date. Such merit advancement shall require the following: a. There shall be on file in the office of the Executive Director of Human Resources a copy of each periodic performance appraisal required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. b. The Appointing Authority, at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall file with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Appointing Authority as to such recommendations and shall be informed of the reasons. C. No advancement in salary shall become effective until approved by the City Manager, except when placement on a salary step above SANTA ANA MANAGEMENT ASSOCIATION(SA :222022 Step "I"results from promotion under the provisions of Section 5.9 (A) of this MOU. d. Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step advance shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step advance shall be retroactive to the first (I") day of the month following the completion of the required length of service. 4. When an employee in a SAMA Middle Management classification has not been approved for advancement to the next higher salary step, he or she may be reconsidered for such advancement after the completion of three (3) months of additional continued service in the classification and shall be reconsidered for advancement to the next higher step above his or her then current step after the completion of six (6) months of additional continued service in the classification. An employee in a SAMA Middle Management classification who is being paid at any salary step above Step "1" may be reduced to the next lower step in the appropriate salary rate range upon the recommendation of the Appointing Authority and the approval of the City Manager. Procedure for such reduction shall follow the same procedure for merit advancement in Subsection 5.8 Paragraph (A) (4) above, and such officer or employee may be considered for readvancement under the same provisions as contained in Subsection 5.8 Paragraph (A) (4) above. B. SAMA Administrative Management Classifications: The following conditions shall govern salary advancement within 5-step rate ranges for employees employed in SAMA Administrative Management classifications: For any employee in an Administrative Management classification covered by this MOU who has been initially appointed to a step lower than Step "E," advancement to the next higher step (Step "B" from Step "A" or Step "C" from Step "B," etc.) may be granted only for continued meritorious and efficient service by said employee in the effective performance of the duties of his or her position. The effective date of such merit step increase, if granted, shall be the first day of the month following the completion of one year of service at the step from which said employee is being advanced. SANTA ANA MANAGEMENT ASSOCIATION (SPBSOU23-2022 Such merit advancement shall require the following: a. There shall be on file in the Office of the Executive Director of Human Resources a copy of each periodic performance appraisal required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. b. The Appointing Authority, at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall file with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Appointing Authority as to such recommendations and shall be informed of the reasons. C. No advancement in salary shall become effective until approved by the City Manager, except when placement on a salary step above Step "A" results from promotion under the provisions of Section 5.9(B) of this MOU. d. Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step increase shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step increase shall be retroactive to the first (1st) day of the month following the completion of the required length of service. 2. When any such employee in a classification designated as Administrative Management (AM) has not been approved for advancement to the next higher salary step, he or she may be reconsidered for such advancement after the completion of three (3) months of additional service and shall be reconsidered for advancement to the next higher step above his or her then current step after the completion of six (6) months of additional service. This reconsideration shall follow the same steps and shall be subject to the same actions as provided in Subsection 5.8(B)(1) above. SANTA ANA MANAGEMENT ASSOCIATION (SA LM022 m 3. Any employee in an Administrative Management classification who is being paid at any salary step above "A" may be reduced to the next lower step in the appropriate salary rate range upon the recommendation of the Executive Director and the approval of the City Manager. Procedure for such reduction shall follow the same procedure for merit advancement provided in Subsection 5.8(B)(1) above, and such employee may be considered for re -advancement under the same provisions as contained in Subsection 5.8(B)(2) above. 5.9 Promotional Salary Advancement. A. SAMA Middle Management Classifications: When an employee in a non- management classification of the City service is promoted to a SAMA Middle Management classification, they shall be placed at a salary rate in the appropriate salary rate range that will provide at least a five percent (5%) pay increase. B. SAMA Administrative Management Classifications: Promotion from a Non -Management Classification. An employee who is promoted to a SAMA Administrative Management classification from a non -management classification of the City service shall be placed at a salary rate in the appropriate Administrative Management monthly salary rate range that provides a pay increase of at least five percent (5%). 2. Promotional Salary Advancement. When an employee in a classification designated as Administrative Management (AM) is promoted to a higher classification from a position in a lower classification in the same occupational career ladder, he or she shall be reassigned to the beginning step in the appropriate monthly salary range for the higher classification; provided, however, that if the base salary currently being paid such employee is already equal to or higher than such beginning step, he or she shall be placed in the lowest step in the appropriate monthly salary rate range as will grant the employee a pay increase of at least five percent (5%) over his or her current base salary step exclusive of pay premiums such as bilingual pay, special skills or the like. SANTA ANA MANAGEMENT ASSOCIATION (SAR�BU:252022 5.10 Demotion. A. SAMA Middle Management Classifications: When an employee in a Middle Management classification is demoted to a position in a lower classification, he or she shall be placed at a rate in the lower salary rate range which provides at least a five percent (5%) reduction in pay. B. SAMA Administrative Management Classifications: When an employee in a SAMA Administrative Management Classification is demoted to a position in a lower classification, his or her salary rate shall be fixed in the appropriate salary rate range for the lower classification accordance with the following provisions: The salary rate shall be reduced by five percent (5%). 2. The new salary rate must be within the appropriate salary rate range. 3. The new salary rate shall not be higher than the salary step to which the employee would have been entitled had his or her service time in the higher classification been spent in the lower classification. 5.11 Probationary Rejection. A promotional employee who is rejected during the probationary period from a SAMA classification shall be returned to the classification in which he or she holds regular status and at his or her former salary step, unless the reasons for failure to complete probation would also be cause for dismissal from City service. 5.12 Reallocation of Salary Rate Ranges. An employee who is employed in a classification covered by this MOU which is reallocated to a different salary rate range from that previously assigned shall be retained in the same salary step in the new salary rate range as he or she had previously held in the prior rate range and shall retain credit for length of service in such step towards advancement to the next higher step. 5.13 Acting Pay. An employee in a classification covered by this MOU may be appointed by the Executive Director to serve in an acting capacity during an unplanned absence from work of thirty (30) calendar days or more of another employee represented by SAMA. Represented SAMA employees who are granted "acting pay" shall receive a five percent (5%) increase or the minimum rate of the higher salary range while serving in an "acting" capacity. SANTA ANA MANAGEMENT ASSOCIATION (SAI�M�t.(6�1� IA2022 16 ARTICLE VI 6.0 ADDITIONAL COMPENSATION 6.1 Bilingual Pay, An employee whom the Executive Director or his designee assigns to a position requiring bilingual capability in both English and either Samoan, Spanish, Vietnamese or other languages designated by the City Manager, will be paid a monthly premium in accordance with the criteria and amounts set forth below: A. Certification by the Executive Director of Human Resources as having satisfactorily demonstrated conversational fluency in both languages for any position requiring bilingual capability. B. Positions for which the Executive Director has determined that 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 and essential element of the work being performed, will be designated as Primary Bilingual Assignments. A qualified incumbent of such position will be paid a monthly premium of one hundred seventy-five dollars ($175) above his or her then current base monthly salary step. C. Positions where it has been determined by the Executive Director that regular and frequent bilingual usage is necessary to the performance of duties, but not a major, essential or integral element of the work, will be designated as Secondary Bilingual Assignments. A qualified incumbent of such position will be paid a monthly differential of forty dollars ($40.00) above his or her monthly salary step for each of such assignment. D. The number of such Primary and/or Secondary Bilingual Assignment shall be no larger than the requirements of the department as determined by the Executive Director and the City Manager. E. There may be annual re -certification of such bilingual capability. 6.2 All assignments to positions providing for bilingual pay as set forth in this Article shall be made or revoked at the sole discretion of the Executive Director. SANTA ANA MANAGEMENT ASSOCIATION (SW IU2I-2022 m ARTICLE VII 7.0 OVERTIME PAY 7.1 Compensation for Overtime. Employees in any of the designated classifications of employment listed in this MOU are designated as exempt from the provisions of the Fair Labor Standards Act (FLSA) provided by Section 13(a)(1) of the FLSA as defined by Regulations, 29 CFR Part 541, are not eligible for monetary compensation for overtime work or for compensatory time off with pay for overtime work, unless so required by the FLSA, or any other State or Federal laws. SANTA ANA MANAGEMENT ASSOCIATION (SAnaU:282022 ARTICLE VIII FMIJ:1i111"0 201 8.1 Employees covered by this MOU who work a regular forty (40) hour workweek schedule shall be entitled to receive the following days off during the calendar year as paid holidays: • January 1 st - New Year's Day • Third (3rd) Monday in January - In observance of Martin Luther King's Birthday • Third (3rd) Monday in February - In memory of George Washington's Birthday • March 31n — In observance of Cesar Chavez Day (Effective January 1, 2020) • Last Monday in May - In commemoration of Memorial Day • July 4th -In observance of Independence Day • First (1st) Monday in September - In observance of Labor Day • November I 1 th - In observance of Veteran's Day • Fourth (4th) Thursday in November - In observance of Thanksgiving Day • The Friday immediately following Thanksgiving Day • Last working day before Christmas Day, unless Christmas Day falls on a Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof • December 25th - In observance of Christmas Day • One (1) 9-hour Floating Holiday. Effective January 1, 2020, Two (2) 9-hour Floating Holidays. 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. 8.2 Holidays — Employees on Alternate Work Schedules. A. Full-time employees whose regular scheduled days off are other than Saturday and Sunday shall be entitled to receive thirteen (13) working days off during the year in lieu of the holiday benefits specified in Section 8.1 above. Holidays will be credited based on the employee's working schedule. If the holiday falls on a regular 9-hour day, then 9 holiday hours will be credited. If the holiday falls on the 8 hour 19 SANTA ANA MANAGEMENT ASSOCIATION (S�'0ff 2A'y-2022 working Friday then 8-hours of holiday pay will be credited, with the exception of floating holidays that will be granted at nine (9) hours regardless of work schedule. B. Said substitute holidays may be scheduled by the Executive Director or his or her designee, normally during the same month that the holiday is observed by other City employees. An employee entitled to time off in lieu of holidays shall receive that time off in proportions to his or her service at full pay in such capacity during the year. 8.3 Employees must actually work at least one (1) day preceding the day a holiday listed in Section 8. 1, supra, actually occurs in order to receive credit for such holidays during the month in which it occurs. 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 8.1, supra, actually occurs in order to receive compensation for the holiday. A newly appointed employee must complete six (6) months of continuous full-time service in order to receive credit for the two (2) Floating Holidays listed in Section 8.1 above. 8.4 Holiday time off may be taken in increments of eight (8) hours by employees who work 8 hour days. Employees assigned to the 4/10 must use their holiday in ten (10) hour increments. Effective with the date of approval of this MOU by the City Council, employees assigned to a 9/80 work schedule must use their holidays in nine (9) hour increments. 8.5 If a holiday falls on an employee's Friday off, the employee must then take their holiday off before or after the regular holiday as their holiday off with supervisor and/ or Executive Director approval. If the SAMA employee cannot take their holiday off before or after the regular scheduled holiday off the employee will bank eight hours of holiday leave to be used at a later date with the supervisor's approval. 8.6 Holiday benefits may not be carried over from one (1) calendar year to the next. 8.7 Mandatory Holiday Closure. A. Effective upon adoption of this MOU, City Hall and all other City departments (with the exception of the Police Department, Santa Ana Zoo, and select employees in Fleet Services Division) shall be closed for a mandatory winter holiday SANTA ANA MANAGEMENT ASSOCIATION (SA�7QIj1t2022 m closure each year during the term of this MOU. B. Sunset Clause for Mandatory Holiday Closure This provision shall expire on June 30, 2022 and no additional mandatory winter holiday closures maybe implemented after the 2021 winter holiday closure, unless mutually agreed to otherwise by the parties. C. Dates of Closures 1. 2019: The closure shall run from Tuesday, December 24, 2019 through Wednesday, January 1, 2020. The City shall re -open and employees report back to work as scheduled on Thursday, January 2, 2020. Employees shall observe the three (3) City paid holidays provided in Section 8.1 on: • Tuesday, December 24, 2019 (Last workday before Christmas Day) • Wednesday, December 25, 2019 (Christmas Day) • Wednesday, January 1, 2020 (New Year's Day) On each of the holiday closure days for 2019; December 26, 30 and 31, 2019 as well as December 27, 2019 for those employees who, but for the holiday closure, would be scheduled to work that day as their working Friday. Employees may use any of the following accrued leaves (if employees have such leaves): vacation, management vacation, or holiday leave. Employees may also choose to be off on any or all of these days on a leave without pay. 2. 2020: The closure shall run from Thursday, December 24, 2020 through Friday, January 1, 2021. The City shall re -open and employees report back to work as scheduled on Monday, January 4, 2021. Employees shall observe the three (3) City paid holidays provided in Section 8.1 on: • Thursday, December 24, 2020 (Last workday before Christmas Day) • Friday, December 25, 2020 (Christmas Day). For employees whose alternating regular day off is on December 18, 2020 who would otherwise be scheduled to work on December 25, 2020, the Christmas Holiday is on December 25, 2020. For employees whose alternating regular day on will be on December 18 who would otherwise be scheduled off on Friday December 25, they will receive SANTA ANA MANAGEMENT ASSOCIATION (S/8582:TJB-2022 nine (9) floating holiday hours for Christmas Day 2020, and Friday, January 1, 2021 (New Year's Day). For employees whose alternating regular day on is on December 18, 2020 who would otherwise be scheduled to work on January 1, 2021, the New Year's Holiday is on January I, 2021. For employees whose alternating regular day off will be on December 18, 2020 who would otherwise be scheduled off on Friday January 1, 2021, they will receive nine (9) floating holiday hours for New Year's Day 2020. On each of the holiday closure days for 2020, (December 28, 29, 30 and 31, 2020) employees may use any of the following accrued leaves (if employees have such leaves): vacation, management vacation, or holiday leave. Employees may also choose to be off on any or all of these days on a leave without pay. 3. 2021: The closure shall run from Friday, December 24, 2021 through Friday, December 31, 2021. The City shall re -open and employees report back to work as scheduled on Monday, January 3, 2022. Employees shall observe the three (3) City paid holidays provided in Section 8.1 on: Friday, December 24, 2021 (Last work day before Christmas Day). For employees whose alternating regular day off is on December 17, 2021, who would otherwise be scheduled to work on December 24, 2021, the Christmas Eve Holiday is on December 24, 2021. For employees whose alternating regular day on will be on December 17 who would otherwise be scheduled off on Friday December 24, they will receive nine (9) floating holiday hours for Christmas Eve 2021. • Monday, December 27, 2021 (Christmas Day) Thursday, December 31, 2021(New Year's Day) For employees whose alternating regular day on is on December 17, 2020 who would otherwise be scheduled to work on December 31, 2021, the New Year's Holiday is on December 31, 2021. For employees whose alternating regular day off will be on December 17, 2020 who would otherwise be scheduled off on Friday December 31, 2021, they will receive nine (9) floating holiday hours for New Year's Day 2022. • On each of the holiday closure days (December 28, 29, and 30 (employees may use any of the following accrued leaves (if employees have such leaves): vacation, management vacation, or holiday leave. Employees may also choose to be off on any or all of these days on a leave without pay. SANTA ANA MANAGEMENT ASSOCIATION (SA -201JL2022 SANTA ANA MANAGEMENT ASSOCIATION (SASW-332022 23 ARTICLE IX 9.0 VACATION 9.1 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. 9.2 Vacation. A. Effective January 1, 2016, the regular and longevity vacation accruals of bargaining unit members shall be combined into one single vacation bank. The accrual rates will remain the same. However, after January 1, 2016 there will no longer be a reference to longevity vacation. Longevity vacation earned but not advanced in 2015 will be credited to the employee's vacation bank effective January 1, 2016. Thereafter, members shall accrue the combined vacation with pay on a monthly basis as set forth in the following table. Beginning Years Annual Vacation Hours Accrued Monthly Accrual Rate 1 120 10.00 2 120 10.00 3 120 10.00 4 120 1 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 SANTA ANA MANAGEMENT ASSOCIATION (SA5A' f 5,7.319.2022 B. No employee shall be entitled to, or receive payment for, any vacation until he or she has completed six (6) months of continuous service. C. On or after the first (I ') 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 his or her earned vacation, subject to scheduling approval of the employee's supervisor. D. Vacation time off may be taken 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). E. The time at which an employee shall take his or her vacation shall be determined by the Department Head, with due regard for the wishes of the employee and particular regard for the needs of the City. Computation of Vacation. In computing vacation, each municipal holiday that occurs during the vacation, and that falls on a day which the employee would have worked had he or she not been on vacation, shall be deducted from the computation so that one (1) additional day of vacation shall be allowed to the employee unless departmental practice provides some other manner of compensating for municipal holidays. Should an employee be confined to a hospital for sickness or injury while on authorized vacation, each full day of such confinement, when confirmed by a physician's statement and approved by the Executive Director, may be deducted from the computation of vacation expended and charged against the employee's accumulated sick leave. 2. A period of earlier service does not apply toward the calculation of the completed years of service factor for vacation accrual when an employee has had a break in continuous service, unless the break in service is concluded by reappointment, as provided in Section 9-114 of the Civil Service Rules and Regulations, or by reemployment from layoff within one (1) year. Leave of absence without pay, as provided in Article X, Subsection 10.1 (E) (Sick Leave - Extended), Article X, Subsection 10.7 (Authorized Absence Without Pay - Long Term) and Article X, Subsection 10.11 (Catastrophic Leave) herein, does not constitute a break in continuous service as used in this section; however, the leave of absence period shall not be applied toward the accumulation of vacation. Absence on military SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-35 leave followed by reinstatement, as provided in Chapter 9-143 of the Civil Service Rules and Regulations, does not constitute a break in service, and the period of absence on such military leave shall be applied toward the accumulation of vacation. 3. Vacation Buy -Back. Employees covered by this MOU are eligible to require the city to buy back up to eighty (80) hours of their banked vacation per fiscal year. 9.3 Vacation Carry Over A. No employee 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 is forfeited, meaning that no pay shall be received for such unused vacation at any time. With respect to any vacation forfeited in this manner, this provision constitutes a waiver of any rights to vested vacation benefits under California Labor Code section 227.3. Completed Years Maximum Hours of Vacation Carry Over 1 120 2 240 3 360 4 360 5 360 6 364 7 372 8 384 9 396 10 408 11 420 12 432 13 444 14 456 15 468 16 484 17 504 18 528 19 552 20 576 21 592 22 600 23 600 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 26 55B-36 24 1 600 25 or more 1 600 9.4 Effect of Extended Sick Leave on Vacation Accrual. Absence on sick leave for a period in excess of fifteen (15) consecutive calendar days, in any one (1) calendar month, shall not be considered as service time for vacation accrual purposes. 9.5 Management Vacation Benefit. A. SAMA employees covered by this MOU will be granted fifty (50) hours per calendar year of Management Vacation. Effective January 1, 2020, employees will be granted sixty-five (65) hours per calendar year of Management Vacation. In addition to the vacation accrual table in Section 9.2.A. above subject to a maximum accrual of thirty (30) days (240 hours) of such additional Management Vacation. 9.6 Management Vacation Pay Option. A. SAMA employees shall be given once each calendar year the option to receive cash compensation, computed on a straight time basis, in lieu of up to five (5) 8-hour working days of earned, unused Management Vacation benefits. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 27 55B-37 ARTICLE X 10.0 OTHER LEAVES OF ABSENCE 10.1 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, injury, medical, or dental appointment that prevents the employee from performing the duties of his or her position, and shall be deemed to include time in quarantine resulting from exposure to a contagious disease. B. Accrual. Each employee shall be entitled to, and shall earn, one (1), eight (8) hour working day of sick leave for each full calendar month of service in which he is employed by the City with full pay; provided, 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. Subject to the other provisions in this Article, sick leave shall accrue to the credit of each employee to the extent that it is not used. C. Authorized Only When Necessary Use of sick leave by City employees shall be authorized as follows: Sick leave is not a right which an employee may use at his or her discretion, but shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Subsection J below. 2. When an accepted industrial illness or injury has caused an employee's absence, for which benefits are required under the State Workers' Compensation Insurance and Safety Act, paid sick leave will be allowed such employee during the first three (3) days of the statutory waiting period. If the workers' compensation related illness or injury continues past the initial three (3) consecutive days, the employee will have the three (3) used sick days recredited to his or her account, if the employee remains off work longer than 14 days. Paid sick leave will continue until the fourth (4°i) day when the City pays the employee workers' compensation benefits for such illness or injury. If the employee does not have sufficient accumulated sick leave at the commencement of such industrial illness or injury, they will be advanced sick leave for this purpose. Subsequently, the City will deduct an SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 W. 55B-38 D. Limit. equal amount previously advanced from any sick leave accrued by the employee until the total amount is recovered. If the employee terminates before recovery of all advanced sick leave, the City will deduct the unrecovered cost of sick leave from such terminated employee's final paycheck, to the extent possible. Commencing with Council approval of this MOU, the City may authorize employees to use sick leave or vacation time for approved workers' compensation medical appointments as specified herein. The City may authorize use of such leave for City approved medical appointments whenever such appointments cannot be secured outside the employee's regular workday, and salary continuation or workers' compensation benefits are not available. The maximum total accumulation of sick leave with pay shall be two hundred fifty (250) eight (8) hour working days equal to two thousand (2000) hours. Sick leave usage of less than a full day shall be charged in minimum increments of one-half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one-half (1/2) hour. 2. The total amount of accumulated sick leave permitted to be compensated or converted to employee's Retirement Health Savings Account as specified herein under Subsection 10.1 (K) of this Article at the time of non - disciplinary termination shall not exceed one thousand two hundred (1200) hours. E. Extended. The City Manager may grant leave up to six (6) months without pay to an employee who has exhausted all of his or her accrued sick leave if a licensed physician designated by the City Manager indicates that the employee will be sufficiently recovered to return to his or her employment within a six (6) month period. Prior to the expiration of the additional time, the employee may return to his or her position provided that the employee has a certificate from the designated physician stating that the employee is able to perform all the duties of his or her 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, SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 m 55B-39 he or she may be granted permission to take any unused vacation leave benefits he or she may have accrued. G. Notice. The employee taking sick leave shall notify his or her immediate supervisor either prior to or within four (4) hours after the time he or she is scheduled to report for duty, or as otherwise established by departmental regulations. When the absence is more than three (3) consecutive working days, the employee must present to his or her Executive Director a physician's certificate stating the cause of illness and that, in the physician's opinion, the employee could not report to work because of such illness or injury and that the employee is sufficiently recovered to safely return to work. Such certificate shall be transmitted to the Executive Director of Human Resources with the report of the employee's return to work. A physician's certificate or other satisfactory written evidence of actual illness or injury may be required after an absence of any duration less than three (3) days. 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; or, sickness or disability sustained while engaged in employment other than employment by the City, 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 an employee, such excess sick leave will, first, be deducted from any available vacation leave benefit; second, from the next scheduled salary payment. Necessity Leave. Each employee shall be afforded the opportunity to use up to 48 hours of sick leave per calendar year, on a non -cumulative basis, as personal necessity leave. All of this personal necessity leave may be used to attend to an illness of a child, parent, or spouse of the employee or as further specified below. 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; "parent" means a biological, foster, adoptive parent, a stepparent, or a legal guardian; and "immediate family" means any member of the employee's household related by blood or marriage; a parent, parent -in-law, spouse, child, brother, sister, grandparent, or grandchild of the employee, regardless of residence; any other relative of the employee by blood or marriage, where it can be established by the employee that the employee's presence is required to handle emergency arrangements and/or other matters. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-40 Up to 48 hours 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 family, home, or other valuable property; d) when the existence of external circumstances beyond the employee's control make it impossible for him or her to report for duty; or e) attend to medical or dental appointments for members of the employee's household. For the 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 his or her specific workday schedule. K. Payment for Unused Sick Leave (updated upon adoption of this MOU) 1. Except in cases of disability retirement, upon non -disciplinary termination of employment: 2. Payment After Ten Years. After ten (10) years but less than fifteen (15) 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 accrued sick leave benefit credited into his or her individual Retirement Health Savings (RHS) account upon the effective date of such termination, not to exceed a maximum limit of four hundred and twenty-seven (427) hours, at the base rate of pay effective on the date of such termination. Payment After Fifteen Years. After fifteen (15) years but less than twenty-five (25) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for two-thirds (2/3) of the total accrued sick leave benefit credited into his or her individual RHS account not to exceed a maximum limit of eight hundred hours (800) hours, at the base rate of pay effective on the date of such termination. 4. Payment After Twenty -Five Years. After twenty-five (25) years but less than thirty (30) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for two-thirds (2/3) of the total accrued sick leave benefit credited into his or her individual RHS account, not to exceed a maximum limit of one thousand sixty-six (1066) hours, at the base rate of pay effective on the date of such termination. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-41 5. Payment After Thirty Years. After thirty (30) years or more of cumulative full-time service with the City, each qualified employee shall be entitled to payment for three-quarters (3/4) of the total accrued sick leave benefit credited into his or her individual RHS account, not to exceed a maximum limit of one thousand two - hundred (1200) hours, at the rate of base pay effective on the date of such termination. 6. SAMA members who notify the City, in writing, of their intent to retire within 12 calendar months shall be allowed to cash out any eligible sick leave bank balances (10.1K) upon request. Employees shall receive payment as soon as practical, and no longer than 30 days after the request has been made. If said employee cashes out his/her eligible sick leave bank balances prior to retirement and subsequently does not retire from City, all future sick leave accrual for said employee shall be subject to the same cash out provision elected and will be processed on the final paycheck. All combined cash outs cannot exceed what the said employee would have been entitled to if the cash out was processed on the final paycheck only. Effective upon adoption of this MOU, employees with at least ten (10) years of full- time city service that retire from the City of Santa Ana within 120 days of separation shall be eligible to convert up to two -thousand (2000) hours of accumulated unused sick leave to Ca1PERS Service Credit as defined in Section 13.3. 8. The City Manager is authorized to grant a newly appointed incumbent of a SAMA classification sick leave credit up to an amount equal to any earned but unused sick leave credit available to such appointee at the time of his or her separation from his or her most recent previous employer. 9. 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 his or her death, and at the rate of pay effective on the date of death. 10.2 Bereavement Leave. A. An employee shall be granted up to three (3) days leave without loss of pay in case SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-42 of death of a member of the employee's immediate family. Such leave is designated as bereavement leave. "Immediate family" as used in this section is limited to: Any member of the employee's household related by blood or marriage; 2. A parent, parent -in-law, spouse, child, brother, sister, grandparent or grandchild of the employee, regardless of residence; 3. Any other relative of the employee by blood or by marriage where it can be established by the employee that as a result of such relative's death, the employee's presence is required to handle funeral arrangements and/or matters of estate. B. Whenever an employee is required to travel one way more than 500 miles to attend to the death of a member of the employee's immediate family, an employee may use up to sixteen (16) hours of additional leave charged to their Personal Necessity Leave balance when authorized by the Executive Director. 10.3 Military Leave. A. Proof of Orders and Reinstatements. An employee shall be granted military leave if he or she furnishes the Executive Director of Human Resources satisfactory proof of his or her order to report for duty. Upon return and upon showing of proof of actual service pursuant to such orders, he or she will be reinstated as provided in Chapter 9-143 of the Civil Service Rules and Regulations of the City of Santa Ana. B. Temoorarv. Members of the reserve forces of the United States, or the National Guard, granted temporary leave when ordered to duty, in accordance with the Military and Veterans Code, will be granted leave with pay not to exceed thirty (30) calendar days in each calendar year after one (1) years' service with the City upon presenting satisfactory proof of orders to and from such temporary active duties. 10.4 Jury and Witness Leave. When an on -duty employee is called to serve as a juror or non- party witness in any court action, he or she shall be allowed to leave for the time actually required for such service without loss of pay. Each on -duty employee called for such service shall present to his or her Executive Director for examination the subpoena calling him or her to such service and shall pay into the City Treasury the fees collected for such service, with the exception of reimbursement for transportation expenses, if any. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 33 55B-43 10.5 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 himself or herself makes an explanation satisfactory to the Executive Director regarding the cause of his or her absence, the Executive Director may restore him or her to his or her position, with the City Manager's approval. 10.6 Authorized Absence Without Pay - Short Term. Absence without pay not to exceed five (5) consecutive working days, may be authorized by the Executive Director. Absence without pay not to exceed fifteen (15) calendar days may be authorized by the Executive Director with the approval of the City Manager. Such an absence may be authorized only if in the judgment of the Executive Director it serves the best interest of the City. 10.7 Authorized Absence Without Pay -Long Term. Upon receipt of a written request from an employee having permanent status, plus action by the Executive Director recommending approval of the request, the City Manager may grant a leave of absence without pay for up to six (6) months. An employee returning to duty with the City shall inform the Executive Director and the Executive Director of Human Resources of his or her intention at least thirty (30) calendar days prior to the expiration of the six (6) month period, or shorter period if the full six (6) months is not taken. Upon receipt of such notice, the Executive Director will take steps necessary to restore the employee to his'or her former position. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year leave of absence without pay. 10.8 Industrial Leave. Any period of time during which an employee is required to be absent from his or her position by reason of an industrial injury or industrial illness for which he or she is entitled to receive compensation shall not be considered a break in continuous service for the purpose of his or her right to salary adjustments or to the accrual of vacation and seniority. 10.9 Pregnancy Disability Leave. A pregnant employee is entitled to a reasonable leave of absence without pay for any temporary disability resulting from pregnancy, miscarriage, childbirth or recovery therefrom. Such reasonable leave of absence shall not exceed four (4) months. However, an employee may be granted up to an additional two (2) months of leave, at the discretion of the City Manager, for a total of up to six (6) months in which to recover from the disability if substantiated by a physician's certificate. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 34 55B-44 Employees may take an unpaid leave of absence during pregnancy disability consistent with the law. As with all other temporary disabilities, a physician's certificate is required to verify the extent and duration of the temporary disability. An employee who plans to take a pregnancy leave must give a reasonable notice (not less than four (4) weeks before the date she will take the leave and the estimated duration of the leave. Health and welfare insurance coverage will be continued only if the employee pays a cash premium to continue coverage while on a leave of absence without pay or is covered under the Family Medical Leave Act (FMLA) or California Family Rights Act (CFRA) provisions. 10.10 Administrative Leave. The City Manager is authorized to grant, at his or her discretion, paid or unpaid leave for full time SAMA employees. 10.11 Catastrophic Leave. 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 City and SAMA agree to implement a Catastrophic Leave Donation Program. Nothing herein shall be construed to alter City policies and procedures as provided in the Charter or ordinance of the City of Santa Ana or other provisions of this MOU with regard to granting unpaid leaves of absence. The Catastrophic Leave benefit will be provided for non -industrial injury or sickness only. The leave shall cover the uncompensated time prior to the employee's becoming eligible for the Long Term Disability benefits. A. Guidelines. It shall be understood that all donations under this procedure are voluntary and subject to taxation for the recipient. Employees may donate vacation time or one in lieu holiday to the eligible employee. In no event shall sick leave be donated. 2. Employees shall be provided a two -week period to submit donations. Donations received after this two -week period shall not be processed. The two -week period for each case shall be designed by the Executive Director SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-45 or his or her designee as provided herein below. 3. All donations must be made in two (2) hour increments and a maximum of eight (8) hours per donor, except in lieu holidays must be for eight (8) hours. 4. Any authorization of donations not made in accordance with the procedures outlined in Subsection 10.11(C)(2) below, will not be processed. 5. All donations shall be irrevocable. 6. In 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 way be used pursuant to Subsection 10.1 (A) through 1O.1(K). 7. Donations shall be limited to employees of this bargaining unit or any other unrepresented unit. B. Eligibility. SAMA employees shall be eligible for Catastrophic Leave Donations if the following criteria are met: When it is reasonably foreseeable that all accrued time on the books, such as sick leave and vacation, will be exhausted and the employee's illness will continue past the time when the employee will be on paid status. 2. The employee's Executive Director, or his or her designee, has approved a written request for donation 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. Upon receipt of a valid request for donations from an eligible employee, the Executive Director or his or her designee shall post a notice of the eligible employee's need for donation on bulletin boards accessible to employees. No confidential medical information shall be included in the posted notice. 2. Employee wishing to donate time to an eligible employee must sign his or SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 36 55B-46 her authorization of the transfer of such donated time and provide: a. His or her name, department name, and employee number. b. The number of hours of vacation time of the donation within the limitation of Subsection 10.11(A)(3) above; C. The name, department and employee number of the recipient; d. A statement indicating that the donor understands such donation of time is irrevocable. 3. At the close of the donation period, the department shall verify that each donating employee has accrued vacation time balances sufficient to cover the designated donation. 4. The department shall submit all approved donation authorizations for an eligible employee atone 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 Subsection 10.11(A) herein. 5. The City shall add the donated time to the recipient's sick leave account. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-47 ARTICLE XI 11.0 EMPLOYEE INSURANCE 11.1 Health Insurance. 1. Effective January 1, 2018, the City shall contribute the following to insurance coverage: Employee Only Employee + 1 Employee + 2 or more $654.00 per month $1,307.00 per month $1,700.00 per month 2. Beginning Jan 1, 2020: The City shall contribute an allowance towards the employee's Cafeteria Benefit plan for health insurance premiums for eligible employees and their qualified dependents under The Public Employees' Medical & Hospital Care Act (PEMHCA) which governs the California Public Employees' Retirement System (Ca1PERS) Health Insurance Programs pursuant to the provisions below: A. Effective January 1, 2020, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $704.00 • Employee +1 $1,357.00 • Employee + Family $1,750.00 B. Effective January 1, 2021, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $754.00 • Employee+l $1,407.00 • Employee+Family $1,800.00 C. Effective January 1, 2022, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $804.00 • Employee+l $1,457.00 • Employee + Family $1,850.00 D. Any contribution necessary to maintain benefits under any health insurance program SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 M 55B-48 provided by the City for its employees and their eligible dependents in excess of the amount of the City contribution to the Cafeteria Benefit Plan specified above shall be home entirely by the employee. E. Cafeteria Benefit Plan. Effective January 1, 2020, the City provides a Cafeteria Benefit Plan adopted in accordance with the provisions of Internal Revenue Code § 125 for employees covered by this MOU. Employees will be eligible to receive through the Cafeteria Benefit Plan, the cash difference (subject to taxation as wages) if the monthly City allowance exceeds the monthly cost of the Medical and Dental monthly plan premium cost. 2. For each such employee who is covered under a spouse's non -City sponsored health plan, the City will pay the employee a cash -in -lieu payment (subject to taxation as wages) each month in an amount equal to one hundred percent (100%) of the monthly premium amount for the City's lowest "employee -only" coverage, if said employee waives, in writing, City -paid coverage, said employee shall provide proof of medical insurance coverage in a non -City -sponsored health plan. Said waiver shall include a provision warning such employee that re-entry into any of the City -sponsored plans is allowed only at open enrollment, unless there is a qualifying event, and will require proof of insurability for such employee and/or eligible dependents. 11.2 Dental Insurance. A. The City shall continue to contribute the current maximum amount of $90 per month per SAMA employee for employee dental insurance premiums. Effective January 1, 2016, the City contribution amount will be increased to a maximum of one hundred ten dollars ($110) per month per employee. B. Any contribution necessary to maintain benefits under said dental plans in excess of the amount set forth above shall be borne entirely by the employee. 2. Effective January 1, 2020, the City agrees to contribute towards the Cafeteria Benefit plan the payment of premiums for dental insurance plans provided by the City for employees covered by this MOU and their eligible dependents on the following basis: A. Effective January 1, 2020, the City shall contribute an allowance towards the employee's Cafeteria Benefit plan for dental insurance premiums for eligible employees and their qualified dependents in the amount of one hundred twenty dollars ($120) per month per employee. B. Effective January 1, 2021, the City shall contribute an allowance towards the SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 39 55B-49 employee's Cafeteria Benefit plan for dental insurance premiums for eligible employees and their qualified dependents in the amount of one hundred twenty-five dollars ($125) per month per employee. C. Effective January 1, 2022, the City shall contribute an allowance towards the employee's Cafeteria Benefit plan for dental insurance premiums for eligible employees and their qualified dependents in the amount of one hundred thirty dollars ($130) per month per employee. D. Any contribution necessary to maintain benefits under said dental plans in excess of the amount of the City contribution to the cafeteria plan specified above shall be bome entirely by the employee. E. For each such employee who is covered under a spouse's non -City sponsored dental plan, the City will pay the employee a cash -in -lieu payment (subject to taxation as wages) each month in an amount equal to one -hundred percent (100%) of the City's contribution, if the employee waives, in writing, City -paid coverage. Such waiver shall include a provision warning such employee that reentry into any City -sponsored plan is allowed only at open enrollment, unless there is a qualifying event, and may require proof of insurability for such employee and/or eligible dependents. 11.3 Long -Term Disability (L.T.D.)Insurance. 1. The City shall continue to pay one hundred percent (100%) of the premium cost for a 60- day elimination period long term disability insurance plan for employee covered by this MOU. 2. Effective January 1, 2020, for employees covered by this MOU, the City shall continue to pay one hundred percent (100%) of the premium cost for a 60-day elimination period long term disability insurance plan with a maximum benefit of $10,000 per month for employee only coverage. 11.4 Life Insurance. The City shall continue to pay one hundred percent (100%) of the premium cost for term life insurance coverage under the policy it maintains on behalf of employees in order to provide employees covered by this MOU with life insurance coverage in an amount equal to two times (2x) employee's annual rate of salary to a maximum of three hundred thousand ($300,000) provided said employees can provide evidence of SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-50 insurability of coverage, if so required by the terms and conditions of said term life insurance policy. In the event any such employee is determined to be ineligible for said insurance coverage, the City will attempt to provide as much coverage as may be obtained at reasonable cost not to exceed the actual monthly premium amount allotted for said coverage without having to provide evidence of insurability. 11.5 The City shall retain the right to change health, dental and life insurance carriers, administer the insurance benefits provided thereunder, and select and/or change any excess or supplemental insurance carriers as a part of any self-insurance plan during the term of this MOU, provided that employees covered by this MOU continue to receive equivalent benefits and provided that the parties have met and conferred before the benefits changes are made. 11.6 Retirement Health Savings (RHS) Plan. A. Effective October 1, 2014, employees covered under this MOU began participating in the "Vantage Care" Retirement Health Savings Plan (RHS), as earlier implemented by the City, which designated ICMA-RC as the administrator of the plan. At that time, employees covered under this MOU received a one-time increase of 1.25% in their base pay, which amount was deposited into their individual RHS account each pay period going forward. B. Effective upon adoption of this MOU, the City will contribute one percent (1 %) of employee's base pay deposited into their individual RHS account each pay period going forward. 11.7 Vision Plan. The City shall maintain in effect a vision care plan for employees covered by this MOU. This plan is voluntary on behalf of the employee and shall be fully funded by the participating employee. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 41 55B-51 ARTICLE XII 12.0 WELLNESS AND FITNESS REIMBURSEMENT PROGRAM 12.1 Effective January 1, 2020, the City agrees to provide to employees represented by this bargaining unit up to a three -hundred dollars ($300) per fiscal year reimbursement for qualified wellness programs and fitness memberships as defined below: 1. Membership in a health/fitness club. 2. Participation in a weight loss/smoking cessation/wellness/fitness program Employees must complete a wellness and fitness reimbursement program form and provide proof of enrollment, and receipt of purchase during the current fiscal year in order to receive reimbursement. Forms with required back up documentation will be turned into Human Resources for the Executive Director of Human Resources or his designee's approval. A copy will be kept in Human Resources and the original will be returned to the employee. If approved for reimbursement, the department will complete a Direct Payment Voucher (DPV) along with form and back-up documentation to the Finance Department for processing. Reimbursement requests will not be processed if the request is turned later than 30 days from the end of the fiscal year in which enrollment and purchase was made. The city will not reimburse employees for any of the above listed activities for family/dependent -health related expenses. The Wellness -Fitness reimbursement is defined as "wages" in section 61(a)(1) of the Internal Revenue Code and § 1.61-21(a)(3) of the Income Tax Regulations provide that except as otherwise provided in subtitle A, gross income includes compensation for services, including fees, commissions, fringe benefits, and similar items. As such, the reimbursement is considered wages subject to employment taxes under sections 312(a), 3306(b), and 3401(a). The wellness -fitness reimbursement defined in this section is not intended to be defined as compensation eamable under Public Employees Retirement Law (PERL), Government Code (G.C.) section 20636. SANTA ANA M ANAGEM ENT ASSOCIATION (SAMA) MOU: 2019-2022 42 55B-52 ARTICLE XIII 13.0 RETIREMENT 13.1 General. The terms of the existing contract between the City and California Public Employees' Retirement System (CaIPERS) governing the City retirement benefits for affected employees are incorporated by reference herein. The City shall continue to make contributions to CaIPERS in accordance with its contract with CaIPERS for SAMA employees covered by said contract as amended. 13.2 Deferred Retirement. The City will continue to make payment to CaIPERS on behalf of each SAMA employee, in an amount necessary to pay one hundred percent (100%) of his or her individual retirement contribution which is currently equal to eight percent (8%) of base salary, effective January 1, 2009. Such payments shall be credited to the individual employee's CaIPERS account as Employer Paid Member Contribution (EPMC). Such payments are not increases in base salary and no salary rate 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. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, and not ordinary income. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each said employee shall forthwith be increased by eight percent (8%) after January 1, 2009. For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments as if they were a part of the employee's base salary. 13.3 Credit for Unused Sick Leave. A. An employee covered by this MOU with less than ten (10) years of full-time City service, can have up to a maximum of 1600 hours of unused accumulated sick leave at the time of retirement converted to additional service credit at the rate of 0.004 years of service credit for each day of unused sick leave (i.e., 200 days of sick leave equals .80 additional years of service credit). The City must report only those days of unused sick leave that were accrued by the employee during the normal course of employment. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-53 This section applies to members whose effective date of retirement is within 120 days or four (4) months of separation from employment. B. Effective upon adoption of this MOU, employees with at least 10 years of full-time City service that retire from the City of Santa Ana within 120 days of separation from employment can convert up to 2000 hours of accrued un-used sick leave towards Ca1PERS Service Credit. The City must report only those days of unused sick leave that were accrued by the employee during the normal course of employment. 13.4 Military Service Credit as Public Service. An employee covered by this MOU may elect 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. 13.5 2.7% at 55 Service Retirement Benefit for Classic Miscellaneous Members. The City agrees to provide Miscellaneous employees covered by this MOU with the 2.7% at 55 Service Retirement benefit. pursuant to CalPERS regulations. This formula will apply to each year of eligible service credited with the City of Santa Ana. Emnlovee Contribution for Retirement Benefit. The employee's contribution rate will be 8%. All employee contributions for retirement benefits are paid to the employer cost (i.e., employer contribution) in accordance with Government Code section 20516(o. The parties acknowledge that this provision has been mutually negotiated and incorporated as an essential element of the parties' MOU. In the event that either party wishes to modify this provision in a successor MOU, the parties intend for this provision to remain unchanged until a successor MOU is ratified or impasse procedures have been concluded. Pre -Taxable Benefit. To the extent permitted by Ca1PERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.6 For "New Members" within the meaning of the California Public Employees' Pension Reform Act (PEPRA) of2013 The PEPRA went into effect on January 1, 2013. The parties agree that if there is any other clean up or other retirement legislation which goes into effect during this MOU and if there are provisions of that legislation which, by law, automatically goes into effect, either party may request to negotiate over the legislation, including over the impact. Retirement Formula: Per Government Code Section 7522.20(a), the 2%@ 62 retirement formula for non-swom. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-54 Final compensation will be based on the highest annual average compensation eamable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. Employees shall pay one half of the normal cost rate, as established by CalPERS. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 m 55B-55 ARTICLE X1V 14.0 TRAINING & EDUCATIONAL ASSISTANCE PROGRAM 14.1 SAMA employees shall continue to be eligible to participate in the existing Training and Education Assistance Program provided for all regular, full-time employees of the City; except, however, reimbursement for eligible employees shall be one hundred percent (100%) of tuition and registration costs up to a maximum of three thousand dollars ($3,000), per fiscal year in accordance with the provisions of the program defined in this section, updated upon adoption of this MOU. 14.2 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. 14.3 Eligibility. A. Applications for tuition reimbursement shall be considered only from full-time permanent City employees who have completed their probationary period. B. Reimbursement is not authorized for courses for which the employee is receiving financial assistance from other sources such as G.I. Bill, scholarships, grants, etc. C. Applications shall 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 his or her job will be reimbursable so long that it meets the requirements in 14.3 E. E. Prior to receiving tuition reimbursement, employees must submit documentary proof of SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 M 55B-56 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 shall be limited to courses given by accredited colleges and universities, city colleges or adult education courses under the sponsorship of a Board 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 his or her Department Head to attend a particular course or seminar, the expense shall be bome entirely by the department. 14.4 Reimbursement. A. Reimbursement shall be based on the cost of tuition, required enrollment/registration fees, miscellaneous fees (health, parking, student union fees, etc.) and all required texts, eBooks and related material for each course. Additional expenses such as meals are not reimbursable. B. Costs for required texts are eligible for one hundred percent (100%) reimbursement subject to the following conditions: 1. A duplicate of the required text(s) and eBooks was unavailable for loan from the departmental libraries prior to the commencement of course work; or 2. 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. Maximum tuition reimbursement is three thousand dollars ($3,000) per fiscal year, which the employee may claim either as costs are incurred during the year or as one lump sum. 14.5 Procedures. A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete, in duplicate, an Application for Training and Educational Assistance form along with a copy of the course plan and schedule, and submit it to his or her Department Head prior to the commencement of class(es) or the payment of fees SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 m 55B-57 for registration/tuition. B. The Department Head shall recommend approval or disapproval based on established criteria and budgetary constraints, and then shall forward the application to the Executive Director of Human Resources. C. The Executive Director of Human Resources or his or her designee shall approve or disapprove the application for the City Manager. One copy shall be returned to the employee and the duplicate shall be retained by the Human Resources Department. It is advisable that the applicant accomplish the procedure so far described in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy prior to the inception of the course or disbursement of personal funds. D. The employee shall submit his or her copy of the approved application to the Human Resources Department within three (3) months after he or she has completed the course and received his or her final grade. Such employee must include official verification of his or her final grade with appropriate receipts for tuition and textbook costs. Applications not submitted to the Human Resources Department within three (3) months following completion of the course become void. E. Upon receipt of the application and required documentation, the Human Resources Department shall determine whether the completed course of instruction is compatible with the provisions of this Article and shall compute the amount of reimbursement, authenticate the application and forward it to the employee's Department Head. F. The Department Head shall then authorize the Finance & Management Services Department to reimburse the employee the approved amount out of the budget of the department concerned. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-58 ARTICLE XV 15.0 ELECTRONIC DEVICE STIPEND 15.1 Electronic Device Stipend All full-time SAMA employees covered under this MOU, whose supervisor determines are required to have a cellphone or tablet will be given the option to choose one of the following: A. Be provided a City paid phone or tablet, or B. First month following adoption of this MOU, be compensated $100.00 monthly to cover costs related to the use of personal electronic devices (phone and/or tablet) for City business. Employees who use their own devices will comply with the City's policy. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-59 ARTICLE XVl 16.0 STRIKES AND WORK STOPPAGES 16.1 Prohibited Conduct. A. SAMA, its officers, agents, representatives, and members agree that during the term of this MOU, they will not cause or condone any unlawful strike, walkout, slowdown, sickout, or any other unlawful job action by withholding or refusing to work. B. According to City Charter Section 1014 (Work Stoppages), any employee who participates in any conduct prohibited in Subsection A above shall be subject to suspension, demotion or dismissal by the Appointing Authority. 16.2 SAMA Responsibility, Whenever SAMA, its officers, agents, representatives, or members engage in any of the conduct prohibited in Subsection 16.1(A) above of this Article, SAMA will immediately instruct any persons engaging in such conduct that their conduct is violating this MOU and unlawful, and they must immediately cease engaging in the conduct prohibited in said Subsection 16.1(A) above, and return to work. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 50 55B-60 ARTICLE XVII 17.0 SOLE & ENTIRE MOU 17.1 It is understood and agreed that the parties to this MOU are subject to all current and future applicable Federal and California laws, The City of Santa Ana Charter, its Municipal Code, and its City's Employer -Employee Relations Resolution Number 81-075. It is the intent of the parties hereto that the provisions of this MOU will supersede all prior MOUs, memoranda of MOU, memoranda of understanding, or contrary salary, and /or personnel rules and regulations, Municipal Code provisions of the City, oral or written MOUs expressed or implied between the parties. This MOU will govern the entire relationship and will be the sole source of any rights that they may assert hereunder. This MOU is not intended to conflict with Federal or State law or the City Charter. 17.2 Notwithstanding the above, there exists within the City personnel rules and regulations and departmental rules and regulations. The City shall continue these rules and regulations to the extent that they do not contravene specific provisions of this MOU. Such rules and regulations may, from time to time, be changed by the City. If these changes affect wages, hours, or other terms and conditions of employment, the City shall meet and confer with SAMA; provided further, the parties shall change no provision of the rules and regulations to contravene specific provisions of this MOU. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 51 55B-61 ARTICLE XVI11 18.0 SEPARABILITY PROVISION 18.1 Should any provisions of this MOU be found to be inoperative, void, or invalid by a court 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 replace the invalidated benefits with benefits of comparable value. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 52 55B-62 ARTICLE XIX 19.0 GRIEVANCE REVIEW PROCEDURE 19.1 Definition of a Grievance. A grievance shall be defined as a timely complaint by an employee or 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 those provisions of the City Charter and the Civil Service Rules and Regulations. No employee shall suffer any reprisal because of filing or processing of a grievance or participation in the Grievance Review Procedure. 19.2 Informal Process. A. An employee must first attempt to resolve the grievance on an informal basis through discussion with his or her immediate supervisor 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. B. Every effort shall be made to find an acceptable solution to the grievance through this informal means at the most immediate level of supervision. C. In order that this informal procedure may be responsive, both parties involved shall expedite this process. If, within five (S) working days, a mutually acceptable solution has not been reached at the informal level, the employee shall then set forth the grievance in writing, indicate the nature of the action desired, sign it, and submit it in duplicate to his or her immediate supervisor. At this point, the grievance review process becomes formal. Should the grievant fail to file a written grievance, and in the manner specified above, within ten (10) working days after first discussing the grievance with the employee's immediate supervisor, the grievance shall be barred and waived. 19.3 Formal Process. A. If a grievance is not resolved through the informal process, and a written grievance is filed within the time limits set forth above, the grievant' s immediate supervisor SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-63 shall add his or her comments and any justification he or she considers proper, sign it, and forward it to the Department Head without undue delay or, in no case, more than ten (10) calendar days. B. If the grievant files a written grievance with the Department Head in the manner and within the time limits specified, then a conference shall be held at the request of the employee or the Department Head. C. The Department Head shall inform the employee of his or her action within ten (10) calendar days after receipt of the request of the settlement. The original of the grievance form and the Department Head's decision shall be filed in the personnel records of the department. D. If no satisfactory settlement has been reached at the departmental level, the employee may, within ten (10) calendar days after being informed by the Department Head of his or her decision on the matter, and the reasons thereof, submit the grievance in writing to the City Manager, or his or her duly authorized representative, for determination. Failure of the grievant to take this action will constitute a waiver and bar to the grievance, and the grievance will be considered settled on the basis of the Department Head's response. E. The City Manager or his duly authorized representative, after a careful review, shall render a final decision on the merits of the grievance, in writing, and return it to the grievant within fifteen (15) calendar days after receiving the grievance. A copy of the written grievance to the City Manager, or his or her duly authorized representative, and of the City Manager's or his or her representative's written decision shall be filed in the personnel records of the department and the grievant' s personnel jacket maintained in the Human Resources Department. After the procedures set forth in this Article have been exhausted, the grievant, the Association, and the City shall have all rights and remedies to pursue said grievance under the law. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 54 55B-64 ARTICLE XX 20.0 WAIVER OF BARGAINING DURING THE TERM OF THIS MOU 20.1 During the term of this MOU, the parties mutually agree that they will not seek to negotiate or bargain concerning wages, hours, or terms and conditions of employment, whether or not covered by the MOU, or in the negotiations leading thereto, and whether or not such matters were discussed, or were even within the contemplation of the parties during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however, by mutual MOU, in writing, agree to meet and confer about any matter not covered by this MOU, or to carry out any provision of salary or benefit tied to another bargaining unit during the term of this MOU. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55 55B-65 ARTICLE XXI 21.0 EMERGENCY WAIVER PROVISION 21.1 In case of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this MOU or the Santa Ana Municipal Code or Resolutions, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergencies. After the City declares the emergency over, this MOU will be reinstated immediately. SAMA shall have the right to meet and confer with the City regarding the impact of the suspension of the provisions in the MOU during the emergency. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 m 55B-66 ARTICLE XXII 22.0 TERM 22.1 The term of this MOU shall commence on the date when the terms and conditions for its effectiveness, as set forth in Article III, Implementation, are fully met, but in no event shall said MOU become effective prior to 12:01 a.m. on January 1, 2019. This MOU shall expire and otherwise be fully terminated at 12:00 midnight on June 30, 2022. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-67 ARTICLE XXIII 23.0 NON-DISCRIMINATION 23.1 The parties mutually recognize and agree fully to protect the rights of all employees covered hereby to join and participate in the activities of SAMA and all other rights in the Employer -Employee Relations Resolution (Resolution Number 81-075) and Government Code, Sections 3500 through 3511. 23.2 The provisions of this MOU shall be applied equally to all employees covered hereby without favor or discrimination because of race, color, sex, sexual orientation, age, national origin, political or religious opinions or affiliations, or disability status or other factors not directly related to the successful performance of the job. SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 m 55B-68 ARTICLE XX1V 24.0 RATIFICATION & EXECUTION 24.1 The City and SAMA have reached an understanding as to certain recommendations to be made to the City Council of the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and SAMA acknowledge that this MOU shall not be in full force and effect until ratified by the membership of SAMA and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this MOU is hereby executed by the authorized representatives of the City and SAMA and entered into 16th day of July 16, 2019. Dated: Dated: Dated: ATTEST: Clerk of the Council CITY OF SANTA ANA, a Municipal Corporation of the State of California By: Mayor M City Manager By: Executive Director of Human Resources APPROVED AS TO FORM: City Attorney SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-69 This 2019-2022 MOU has been ratified by the membership of the Santa Ana Management Association. Dated: SAMA: 92 President Chief Negotiator Orange County's Employee Association (OCEA) Vice President SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 55B-70 EXHIBIT A ADMINISTRATIVE MANAGEMENT JOB TITLES EXHIBIT A ADMINISTRATIVE MANAGEMENT JOB TITLES Applications Systems Manager (AM) Applications/Tech Support Manager (AM) Assistant Public Works Maintenance Manager (AM) Benefits & Compensation Manager (AM) Budget and Research Manager (AM) Budget Supervisor (AM) Code Enforcement Principal (AM) Correctional Manager (AM) Facilities Maintenance Manager (AM) Fleet Services Manager (AM) Homeless Services Manager (AM) Payroll Manager (AM) Principal Human Resources Analyst (AM) Principal Management Analyst (AM) Principal Planner (AM) Project Management Officer (AM) Public Affairs Information Officer (AM) Risk Management Supervisor (AM) Secretary to the City Manager (AM) Senior Budget Analyst (AM) Senior Financial Analyst (AM) Senior Human Resources Analyst (AM) Senior Management Analyst (AM) Supervisor of Inspections (AM) SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 61 55B-71 EXHIBIT B MIDDLE MANAGEMENT JOB TITLES Accounting Manager (MM) Administrative Services Manager (MM) Assistant City Attorney (MM) Assistant Clerk Of The Council (MM) Assistant Dir of Finance and Management Svcs (MM) Assistant Director of Community Development (MM) Assistant Director of Human Resources (MM) Assistant Director of Parks Rec and Cmty Svcs (MM) Assistant Director of Planning and Building (MM) Assistant to the City Manager (MM) Building Safety Manager (MM) Chief Assistant City Attorney (MM) City Traffic Engineer (MM) Code Enforcement Manager (MM) Community Development Manager (MM) Community Services Manager (MM) Corporate Yard Facilities/Fleet Svcs Mgr (MM) Council Services Manager (MM) Deputy City Attorney (MM) Deputy Public Works Director/City Engineer (MM) Deputy Public Works Director/Maintenance Services Manager (MM) Deputy Public Works Director/Water Resources Manager (MM) Economic Development Manager (MM) Facilities and Fleet Maintenance Manager (MM) Facilities Maintenance Superintendent (MM) Housing Division Manager (MM) Information Services and Network Manager (MM) Library Operations Manager (MM) Planning Manager (MM) Principal Civil Engineer (MM) Risk Manager (MM) Senior Assistant City Attorney (MM) Strategic Communications Manager (MM) Transit Program Manager (MM) Transportation Manager (MM) Treasury and Customer Services Manager (MM) Zoo Manager (MM) SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 62 55B-72 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2019-2022 63 55B-73 55B-74 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSMENT IN THE AMOUNT OF $183,279; APPROVE AN AMENDMENT TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN AND APPROVE A MEMORANDUM OF UNDERSTANDING WITH THE CONFIDENTIAL ASSOCIATION OF SANTA ANA (STRATEGIC PLAN NO. 7,4 & 6) aw MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 20d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve an Appropriation Adjustment transferring $183,279 from General Fund Non - Departmental into the appropriate General Fund Accounting Units noted in (Exhibit 1). 2. Approve an amendment to the Resolution No. 2015-026 to effect certain changes to the City's Basic Classification and Compensation Plan (Exhibit 2). 3. Authorize the City Manager and the Clerk of the Council to execute a Memorandum of Understanding (MOU) with the Confidential Association of Santa Ana (CASA) for the period of January 1, 2019 through June 30, 2022, regarding wages and other terms and conditions of employment (Exhibit 3). DISCUSSION The City and the Confidential Association of Santa Ana (CASA) recently completed contract negotiations, resulting in a new Memorandum of Understanding (MOU). The provisions of the agreement include: 1. Term: Effective January 1, 2019 through June 30, 2022. 55C-1 Agreement with CASA 2019-2022 August 20, 2019 Page 4 2. Salary: The agreement provides a cost of living adjustment of 3.5% effective July 1, 2019; 2020; 2021; with removal of "me too" clause. Salary increases apply to those members employed upon adoption of the MOU. 3. Medical: Effective January 1, 2020, the City shall contribute an additional $50.00 allowance per month towards employee health insurance premiums. Effective January 1, 2021, the City shall contribute an additional $50.00 allowance per month towards employee health insurance premiums. Effective January 1, 2022, the City shall contribute an additional $50.00 allowance per month towards employee health insurance premiums. Part-time Civil Service will receive a pro -rated allowance equal to 75% of the applicable coverage level. 4. Dental: Effective January 1, 2020, the City shall contribute an allowance of $100 per month per employee. Effective January 1, 2021, the City shall contribute an allowance of $105 per month per employee. Effective January 1, 2022, the City shall contribute an allowance of $110 per month per employee. Part-time Civil Service will receive a pro -rated allowance equal to 75% of the applicable coverage level. 5. Long-term Disability (LTD): Effective January 1, 2020, the City shall increase the level of benefit coverage from the current 60-day plan at $5,000 maximum benefit to a 60-day plan with a $7,500 maximum benefit). 6. Life: Effective January 1, 2020, the City shall increase the Group Term Life benefit coverage from $30,000 to $50,000. 7. City Observed Holiday: Effective January 1, 2020, the City shall add Cesar Chavez as a City recognized holiday and add one additional (1) Floating Holiday. 8. Holiday Closure: The City and CASA have agreed to a mandatory City-wide winter holiday closure each year during the term of this MOU and shall sunset on June 30, 2022. This provision expires June 30, 2022, unless mutually agreed otherwise by the parties. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #7 — Team Santa Ana, Objective #4, Establish employee compensation that attracts and retains a highly qualified workforce, objective #5, Create a culture of innovation and efficiency within the organization, objective #6, Provide a positive workplace environment that supports the health of its employees and celebrates its success, and objective #7 Develop a culture of motivated and innovative leaders in the organization. FISCAL IMPACT For FY 2019-20 the agreement will result in a cost of $267,810 for all funds (within the various salary accounts 61000) during fiscal year 2019-20. In addition, the agreement has annual cost 55C-2 Agreement with CASA 2019-2022 August 20, 2019 Page 4 (all funds) of $498,360 during fiscal year 2020-21, and a cost of $747,112 during fiscal year 2021-22 for a total cost to the City of $1,513,282 during the term of the MOU. b- 7 Steven V. Pham Executive Director Human Resources APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Dow s, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Fund Break-out — General Fund Accounting Units and Fund Categories 2. Resolution to amend City's Basic Classification and Compensation Plan 3. CASA MOU January 1, 2019 through June 30, 2022 55C-3 55C-4 CASA EXHIBIT 1: FY 2019-20 GENERAL FUND ^� _ _ Department Accounting Unit Number Accounting Unit Name Fiscal Impact City Manager's Office 01103010 Administration 27,828 City Attorney's Office 01108032 City Attorney's Office 22,642 Human Resources 01109050 Human Resources 54,375 Finance 01110100 Management & Support 18,551 Finance 01110115 Payroll 19,399 Parks & Recreation Agency 01113200 Administration 11,166 Police Department 01114400 Office of the Chief 3,780 Police Department 01114401 Fiscal & Budget 5,134 Police Department 01114402 Human Resources 14,061 Planning& Building Agency 01116500 Administration 4,306 Public Works Agency 01117643 Sanitation Services 2,038 Additions5ubtotal 183,279 TRANSFER FROM NON -DEPARTMENTAL TO ABOVE -REFERENCE GENERAL FUND ACCOUNTING UNITS General Fund Non -Departmental 0110515 General Nan -Departmental (183,279) GENERAL FUND NET FISCAL IMPACT 0 FISCAL IMPACT AMOUNTS NOTED BELOW WILL BE ABSOBED WITHIN EXISTING BUDGET(S) NOTED BELOW ':? +, InternalSMhc-r Funds Department Accounting Unit Number Accounting Unit Name Fiscal Impact Public Works Agency 07317100 Building Maintenance 5,917 Public Works Agency 08617612 Design Engineering 4,112 Public Works Agency 10117601 Administration 13,737 Human Resources 08009051 General Liability 5,258 Human Resources 08109053 Employee Group Benefits 12,592 Human Resources 08209054 Workers' Compensation 12,928 Additions Subtotal 54,543 Enterprise Funds- Department Accounting Unit Number Accounting Unit Name Fiscal Impact Finance - 02710131 Parking Meter 2,930 Finance 02710132 Parking Facilities 2,965 Public Works Agency 06017645 Water Administration 5,725 Public Works Agency 06817640 Environmental Sanitation 1,997 Public Works Agency 06817641 Roadway Cleaning 1,997 Public Works Agency 06917640 Refuse Collection Service 1,437 Additions Subtotal 17,052 Grdnts'&Other Restricted Ponds Department Accounting Unit Number Accounting Unit Name Fiscal Impact Human Resources 03109050 Air Quality Improvement Fund-HR 2,343 Community Development Agency 12318752 W.O.R.K, Center-Admin 1,229 Community Development Agency 12418737 Economic Dev-Special Projects 940 Community Development Agency 13318780 Housing Authority 1,978 Community Development Agency 13518780 CDBG 1,229 Community Development Agency 14018760 Housing Authority 1,337 Community Development Agency 41718820 Housing Authority 1,229 Community Development Agency 60718810 Successor Housing Agency 1,229 Community Development Agency 67019843 Successor Agency 1,423 Additions Subtotal 12,936 ADDITIONS GRAND TOTAL (ALL FUNDS) 267,810 55C-5 55C-6 EXHIBIT 2 RESOLUTION NO. 2019-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Section 1004, Article X of the City Charter of the City of Santa Ana requires the City Manager to prepare, install and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. On June 16, 2015, the City Council adopted Resolution No. 2015-026 amending and re-establishing the Basic Classification and Compensation Plan for all Full -Time and Part -Time Classifications of Officers and Employees of the City of Santa Ana. C. It is the City's practice to assign job titles that reflect the duties and responsibilities of the classification and are consistent with other classifications within the City's organizational structure as well as comparable job titles in the labor market, while maintaining internal pay equity relationships and attracting and retaining qualified candidates. D. During labor negotiations between the Confidential Association of Santa Ana ("CASA") and the City for a new Memorandum of Understanding to be effective January 1, 2019, the parties tentatively agreed, subject to City Council approval, to delete the classification of Senior Worker's Compensation Systems Technician from the City s Basic Classification and Compensation Plan. E. The City Council has amended and reestablished the Basic Classification and Compensation Plan on numerous occasions since its adoption. F. It is now desired to amend Council Resolution No. 2015-026, as amended, in order to effect these changes, as shown below: #3568v2 Resolution 2019-XXX Page 1 of 3 55C-7 Section 2: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "B" as follows: A. Deleting the title for the following full time classification title at the monthly six -step salary rate range indicated: 6-Step Salary Rate Range Effective 09/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Sr. Workers Compensation Systems Technician (UC) 627 $4827 - $6161 Section 3: All salary rate range classifications are set forth in the City's "Salary Schedule" as periodically updated. Section 4: That except as amended by this Resolution, all other provisions of Resolution No. 2015-026 as amended shall remain in full force and effect Section 5: This Resolution is operative from and after the date upon which it is adopted. ADOPTED this 20th day of August, 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: ' y.LLwsylsi' . (l4/� Laura A. Rossini Senior Assistant City Attorney Miguel A. Pulido Mayor Resolution 2019-XXX Page 2 of 3 55C-8 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original Resolution adopted by the City Council of the City of Santa Ana on August 20, 2019 Date: #3568v2 Resolution 2019-XXX Page 3 of 3 Clerk of the Council City of Santa Ana 55C-9 55C-10 EXHIBIT 3 JANUARY 1, 2019 THROUGH JUNE 30, 2022 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SANTA ANA AND CONFIDENTIAL ASSOCIATION OF THE CITY OF SANTA ANA CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Pagel 55C-11 ABLE OF CONTENTS ARTICLE SUBJECT PAGE ARTICLE I RECOGNITION 3 ARTICLE II NON-DISCRIMINATION CLAUSE 4 ARTICLE III IMPLEMENTATION 5 ARTICLE IV ATTENDANCE, WORKDAY & WORKWEEK 6 ARTICLE V SALARIES 11 ARTICLE VI ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES 18 ARTICLE VII OVERTIME Y5 ARTICLE VIII TRAINING & EDUCATIONAL ASSISTANCE PROGRAM 30 ARTICLE IX HOLIDAYS 33 ARTICLE X VACATION 39 ARTICLE XI OTHER LEAVES OF ABSENCE 44 ARTICLE XII EMPLOYEE INSURANCE 53 ARTICLE XIII RETIREMENT 57 ARTICLE XIV SAFETY 60 ARTICLE XV GRIEVANCE REVIEW PROCEDURE 61 ARTICLE XVI ASSOCIATION RIGHTS 64 ARTICLE XVII DUES DEDUCTION & INDEMNIFICATION 67 ARTICLE XVIII CITY RIGHTS 68 ARTICLE XIX STRIKES & WORK STOPPAGES 70 ARTICLE XX LAYOFFS 71 ARTICLE XXI MISCELLANEOUS PROVISIONS 73 ARTICLE XXII SOLE & ENTIRE AGREEMENT 76 ARTICLE XXIII _ WAIVER OF BARGAINING DURING THE TERM OF THIS MOU 77 ARTICLE XXIV EMERGENCY WAIVER PROVISION 78 ARTICLE XXV SEPARABILITY PROVISION 79 ARTICLE XXVI TERM OF MOU 80 ARTICLE XXVII RATIFICATION & EXECUTION 81 EXHIBITS EXHIBIT A ASSIGNMENT OF CLASSIFICATIONS REPRESENTED BY CASA 83 EXHIBIT RESOLUTION NO.81-75 85 EXHIBIT C 9/80 HARDSHIP CLAIM FORM 98 CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU; JANUARY I, 2019 THROUGH JUNE 30,2022 Page 2 55C-12 ARTICLE I 1.0 RECOGNITION 1.1 Pursuant to the provisions of the Meyers-Milias-Brown Act, Government Code Section 3500, et sea., the City of Santa Ana (hereinafter called "the City") has recognized the Confidential Association of Santa Ana (hereinafter called "CASA") as the majority representative of the bargaining unit which includes all full-time and designated Part -Time Civil Services (PTCS) employees employed by the City of Santa Ana in classifications heretofore designated as "confidential' and which are listed in Exhibit A of this Memorandum of Understanding ("MOU"). 1.2 Notwithstanding the following provisions of this MOU, the parties agree that they have intended nothing herein to entitle, alter or award Civil Service rights or privileges to any employee represented by CASA who is in the Excepted (Exempt) Service of the City of Santa Ana. 1.3 During the term of this MOU, no substantive issue of representation shall be raised contrary to this MOU except as provided in this MOU or in Resolution No. 81-75, the Employer -Employee Relations Resolution of the City of Santa Ana (refer to Exhibit B). 1.4 The term "employee" or "employees" as used herein shall refer only to full- time and designated Part -Time Civil Service CASA employees of the City, in the employee classifications listed in Exhibit A of this MOU, as well as such classifications as may be added hereinafter by resolution of the City Council. 1.5 It is the purpose of this MOU to promote and provide for harmonious relations, cooperation and understanding between the City and employees covered by this MOU. It sets forth the full and entire understanding reached in good faith negotiations regarding the wages, hours, terms and conditions of employment of employees covered by this MOU, which the parties intend to submit jointly and recommend for approval to the City Council of the City of Santa Ana. 1.6 Employees with classifications designated as Part -Time Civil Service (PTCS) within this Bargaining Unit are covered under all sections of this MOU. PTCS employees will work between 20 and 39 hours per week. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 3 55C-13 ARTICLE II 2.0 NON-DISCRIMINATION CLAUSE 2.1 The City and CASA agree that they shall not discriminate against any employee because of race, color, gender, sexual orientation/association or perception, age, national origin, ancestry, disability, medical condition, marital status, pregnancy, childbirth or related medical conditions, genetic information, political or religious opinions oraffiliations, or CASA membership. The City and CASA shall reopen any provision of this MOU for the purpose of complying with any order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this MOU in compliance with State or Federal anti -discrimination laws. 2.2 Whenever reference is made to the masculine gender, it shall be understood to include the feminine gender, unless expressly stated otherwise. CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30,2022 Page 4 55C-14 ARTICLE III 3.0 IMPLEMENTATION 3.1 The parties agree that this MOU shall not be binding upon the parties until the City Council: A. Acts, by majority vote, to formally approve this MOU; and B. Acts to appropriate the necessary funds required to implement the provisions of this MOU that require funding. 3.2 Notwithstanding the foregoing, in the event the City Council fails to take all actions necessary to implement this MOU in a timely manner, the parties understand that they may mutually agree to implement appropriate provisions of this MOU that do not require specific approval by the City Council. 3.3 Implementation shall be effective as of the date the MOU is formally approved by the City Council. If the parties fail to agree to implement provisions of this MOU not requiring City Council approval, then negotiations shall resume upon the request of either party. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 5 55C-15 ARTICLE IV 4.0 ATTENDANCE, WORKDAY & WORKWEEK 4.1 Attendance. Employees covered by this MOU shall be in attendance at their work during hours prescribed by the Department Head or his or her designee(s) and shall not absent themselves without approval of the Department Head or his or her designee(s). 4.2 Hours of Work. Eight (8) hours of work shall constitute a normal workday and forty (40) hours of work shall constitute a minimum workweek, except for employees for whom special schedules have been approved by the City Manager. A. 4/10 Work Schedule. The Department Head, with the approval of the City Manager, may assign employees to a workweek consisting of four (4) ten-hour (10-hour) days with an additional one-half (1 /2) or one (1) hour for unpaid lunch, as negotiated with CASA. The assigned employee shall work four (4) ten (10) hour days and shall have three (3) consecutive days off in a workweek. Upon mutual agreement between the supervisor and employee, the employee may waive his or her right to three (3) consecutive days off in a workweek. The regular workweek shall consist of forty (40) hours. A regular day off shall consist of ten (10) hours. 9/80 Work Schedule. The work schedule described below is known as the "9/80" work schedule. The "9/80" work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. Employees shall be permitted to work a "9/80" work schedule when authorized by the Department Head and approved by the City Manager. A departmental work unit shall not be permitted to work this schedule if in the discretion of the Department Head and City Manager, the "9/80" work schedule may reduce service to the public. 1. "9/80" Work Schedule Defined. The "9/80" work schedule shall be defined as working eighty hours (80) over nine (9) days in a two -week period. An employee shall work eight (8) days for nine (9) hours per day and one day for eight (8) hours, excluding CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 6 55C-16 a one -hour lunch during each work shift, totaling forty (40) working hours in each FLSA workweek. a. The Work Week Period. The forty (40) hour FLSA work week period shall be defined as the work period starting from Friday at mid -shift to Friday at mid -shift. No employee working the "9/80" work schedule shall be able to flex their Friday start time nor the time they take their lunch break, which shall occur in the middle of the day on Fridays. b. The 9/80 Work Period. The "9/80" two -week work period for employees starts Friday mid -shift and continues for fourteen (14) days until Friday mid -shift. During this period, each week is made up of four (4) nine -hour work days (thirty-six hours) and one (1) four-hour Friday for a total of forty (40) work hours in each workweek (e.g., the Friday is split into four (4) hours for the first shift, which is charged to work week one, and four hours (4) for the second shift, which is charged to work week two). C. Work Schedule Changes. Employees shall not be permitted to change their work schedules without prior approval of their supervisor and Department Head. d. Modifications of the FLSA Work Week. Modifications of the FLSA work week period are not permitted unless authorized by the Executive Director of Human Resources and the City Manager. e, Emeraencies. All employees on the "9/80" work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions that, in the opinion of the City Manager, Department Head or designee, may require such service from any of said employees. 4.3 9/80 Schedule Hardship Claims. Any employee having been authorized to work the "9/80" work schedule who subsequently encounters a personal hardship with his or herwork hours may request an accommodation from his or her Department Head. A "hardship request" shall be limited to an employee's authorized hours of work. An accommodation shall be CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 7 55C-17 considered only after the employee has exhausted all other personal options to resolve the hardship. If the employee is unable to resolve his or her problem, the employee may request an accommodation from their Department Head by submitting a hardship claim. The Department Head may authorize an accommodation after reviewing the claim or assign a manager to investigate and recommend a resolution of the hardship claim. The manager may recommend one of the following: A. Approve an appropriate flex schedule that does not disrupt the department's ability to deliver its services or that does not create disruption in the work unit; or B. Disapprove the employee's proposed solution to resolve the hardship; or C. Reassign the employee to a 5/40 work schedule. The Department Head may accept any one of the manager's recommendations or advance his own to resolve the hardship. D. Hardship Claims. The following process shall applyto CASA employees on a 9/80 schedule with hardship concerns: Employees shall be required to explore and exhaust all personal options to resolve the hardship. The employee's efforts to resolve his or her personal situation must be explained on the form. 2. An employee claiming an ongoing hardship due to the 9/80 work schedule should submit a hardship claim form (Exhibit C of this MOU) to the Department Head through his or her manager. The Department Head may authorize an accommodation after reviewing the claim or may assign a manager to investigate and recommend a resolution. If, according to the employee, the hardship claim was not resolved through the Department Head's recommendation, the employee may submit the claim form to the Human Resources Department, M-24. A Hardship Committee shall be established to assist in the resolution of hardship claims and meets on an as - CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 8 55C-18 needed basis. The Hardship Committee will review the claim and make a recommendation to the Department Head. 4. Hardship claims due to health reasons, eitherthe employee's or a dependent's, must be supported by medical verification signed by the employee's or dependent's private physician. 5. In cases where a hardship exists, as determined by the Hardship Committee, efforts will be made to identify alternatives with due regard to the employee's request but, with particular concern to the needs of the department. The Department Head has final approval on any work schedule adjustment. 6. If transferred or reassigned to a different department and a hardship continues, a new hardship claim must be filed with the new Department Head. It is the employee's responsibility to notify his or her supervisor if the hardship terminates and return to the normal 9/80 work schedule. Inconvenience or preference does not constitute a hardship. 4.4 Overtime Defined. All FLSA nonexempt employees working under the "9/80" work schedule shall earn overtime for all hours worked after the first forty (40) hours in an FLSA workweek as required under FLSA. Employees are required to obtain supervisor authorization before working any overtime. A. Overtime Compensation. Overtime work, and compensation forsame, shall follow the provisions stated in Article VI - Overtime. B. Compensatory Time. Terms and compensationforCompensatoryTime shall follow the provisions stated in Article VII — Overtime. 4.5 Leave Benefits. When an employee is off on a scheduled workday underthe "9/80" work schedule, nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance; if the day off is a Friday, then eight (8) hours shall be charged. When an employee is off on a scheduled workday under the "4/10" work schedule, ten (10) hours of eligible leave per workday shall be charged against the employee's leave balance. All leaves shall continue under the current accrual, eligibility, request and approval requirements. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 9 55C-19 A. Vacation Leave. Provisions for vacation leave are found in Article X of this MOU. Sick Leave. Provisions for sick leave are found in Article XI of this MOU. C. Bereavement Leave. Provisions for bereavement leave are found in Article XI of this MOU. D. Holidays. Provisions for holiday leave are found in Article IX of this MOU. E. Jury Duty Leave. If an employee is called to serve on jury duty during a normal Friday off, or a Saturday, or Sunday, or on a City holiday, then thejury duty shall be considered the same as having occurred during the employee's day off work; therefore, the employee shall receive no added compensation. See Article XI, Section 11.4, Jury and Witness Leave. PTCS designated employees shall accrue vacation, sick, personal necessity and any other types of leave at a rate of 75% of the monthly provided rate of the Full -Time Civil Service equivalent as designated in this MOU. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 10 55C-20 ARTICLE V 5.0 SALARIES 5.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all full-time and designated PTCS personnel who are now employed or shall in the future be employed in any of the designated classifications of employment represented by CASA as listed in this MOU and its attachments. 5.2 Salary Schedule. The basic salary schedule, periodically updated and published by the City provides numerous salary rate ranges, each comprised of six (6) steps or rates of pay. The steps within each rate range are identified by the letters "AA" through "E" inclusive, with Step "AA" being the lowest step in the range. The purpose of each step and the length of service required foradvancement to the next higher step within a particular salary rate range as set forth in the City's salary schedule, as periodically updated and published by the City. The assignment of classifications to salary rate ranges forfull time personnel is listed in the City's salary schedule, as periodically updated and published by the City. 5.3 Salaries. Effective in the pay period including July 1, 2019, July 1, 2020 and July 1, 2021, classifications covered by this MOU shall receive a base salary increase of 3.5%. The initial salary increase will be provided to those currently employed as of the date the MOU is adopted by Council retroactively to the pay period including July 1, 2019. 5.4 Application of Basic Compensation Plan. The salary rate ranges discussed in Section 5.2 are monthly salary rate ranges. All full-time 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 his or her employment. The regular rate of pay shall be computed as provided for by the FLSA. Any hourly rate of pay, defined as the regular hourly rate of pay, shall be computed by dividing the monthly salary rate plus any applicable premiums by 173.33. In determining the hourly rate as herein provided, computation CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page I I 55C-21 shall be made to the nearest whole cent and a computation resulting in an even one-half cent shall fix the rate at the next higher whole cent. 5.5 Probation. Except for employees in the Excepted Service as defined by the City Charter, and employees re-employed from re-employment lists, the probationary period shall be one (1) year from the date of appointment from an open eligible list (new hire) or a reappointment eligible list (rehire) and six (6) months from the date of appointment from a promotional eligible list. 5.6 Beginning Rates. A new employee of the City of Santa Ana shall be paid the rate shown as Step "AA" in the salary rate range allocated to the classification of employment for which he or she has been hired. In special instances where such new employee possesses unique and exceptional educational 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 Step "A," "B," "C," "D" or "E" within the allocated salary rate range, provided that such employee shall be assigned such salary step upon the commencement of his or her service in the classification of employment to which the salary rate 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 provisions of this Article. 5.7 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 a higher classification, or service in a classification allocated to the some salary rate range and having generally similar duties and requirements. Employees hired after the first (lst) 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, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purposes of this MOU, and such employee reentering the service of the City shall be considered as a new employee, except when he or she is being or will be reappointed as provided in the Santa Ana Municipal Code Section 9-114 within one (1) year and placed in the same salary step in the appropriate salary rate as he or she was at the time of termination of employment. "Resignation, quit, or discharge for purposes of this section shall mean separating from full-time City employment altogether, CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 12 55C-22 not leaving one position to accept appointment to another position in an unrelated classification outside the career ladder. 5.8 Advancement within Ranges. A. Length of Service Advancements. After the salary of an employee has been first established and fixed under this plan, such employee shall be advanced from Step "AA" to Step "A," from Step "A" to Step "B," from Step "B" to Step "C," or from Step "C" to Step "D," whichever is the next higher step to that on which the employee has been previously paid, effective the first day of the month following the date of completion of the length of service required for such advancement as provided in Section 5.2 and the City's salary schedule, as periodically updated and published by the City. B. Merit Advances. An employee shall be considered for advancement from Step "D" to Step "E" upon the completion of the required length of service as provided in Section 5.2 and the City's salary schedule, as periodically updated and published by the City; the effective dote of such merit increase, if granted, shall be on the first (15}) day of the month following the completion of such required length of service. Advancement to Step "E" may be granted only for continued meritorious and efficient service and continued improvement by the employee in the effective performance of the duties of his or her position. Such merit advancement shall require the following: 1. There shall be on file in the office of the Executive Director of Human Resources a copy of each periodic performance appraisal report required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. 2. The Department Head, at least twenty (20) calendar days, prior to the anticipated completion of such employee's required length of service, shall file with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Department Head as to such recommendations and of the reasons therefore. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 13 55C-23 3. No advancement in salary above Step "D" shall become effective until approved by the City Manager, except when placement on a salary step above Step "D" results from promotion under the provisions of Section 5.8 of this Article. 4. Effective January 1, 2018, notwithstanding the foregoing provisions of this subsection to the contrary, a merit "E" step advance shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed, the effective date of such merit step advance shall be retroactive to the first (1 st) day of the month following the completion of the required length of service. C. Lenath of Service Required When Advancement Denied. When an employee has not been approved foradvancementto merit Step "E," he or she may be reconsidered for such advancement after the completion of three (3) months of additional service and shall be reconsidered for such advancement after the completion of six (6) months of additional service. This reconsideration shall follow the same steps and shall be subject to the same actions as provided in subparagraphs B.2 and B.3 of this section. 5.9 Reduction in Salary Steps. Any employee who is being paid at merit Step "E" may be reduced to Step "D" of the appropriate salary range, upon the recommendation of the Department Head, and the approval of the City Manager. Procedure for such reduction shall follow the some procedure as outlined for merit advancements in Section 5.8 above, and such employee may be considered for re -advancement under the some provisions as contained in Subsection C of Section 5.8 above. 5.10 Promotional Salary Advancement. When an employee is promoted to a position in a higher classification from a position in a lower classification in the some occupational career ladder, he or she shall be reassigned to Step "AA" in the appropriate salary rate range for the higher classification; provided, however, that if the base salary step currently being paid such employee is already equal to or higher than Step "AA," he or she shall be placed in the lowest step in the appropriate salary rate range as will grant that employee a minimum increase of 5% over his or her current base salary step, inclusive of lead pay, and exclusive of any other assignment or special pay additive or additives such as bilingual pay, shift differential, special skill pay or the like, except when placement at "E" step will not be sufficient to provide a 5% increase. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2D19 THROUGH JUNE 30, 2022 Page 14 55C-24 5.11 Demotion. When an employee is demoted to a position in a lower classification, his or her salary rate shall be fixed in the appropriate salary rate range for the lower classification in accordance with the following provisions: A. The salary rate shall be reduced by at least one (1) salary step (approximately 5%). The new salary rate must be within the appropriate salary rate range. C. The new salary rate shall not be higher than the salary step to which the employee would have been entitled had his or her service time in the higher classification been spent in the lower classification. D. If the salary rate recommended bythe Department Head is lowerthan the maximum step permissible under Subsection C above, such recommendation shall be considered a reduction in pay in addition to the demotion and shall be handled in accordance with the provisions for salary reductions in Section 5.9 above. 5.12 Reallocation of Salary Rate Ranges. Any employee who is employed in a classification which is reallocated to a different salary rate range from that previously assigned shall be retained in the some salary step in the new salary rate range as he or she had previously held in the prior rate range and shall retain credit for length of service in such step towards advancement to the next higher step. 5.13 Reauest for Classification Review. Any employee who, for a continuous period exceeding six (6) months, believes he or she is regularly and consistently performing duties and/or responsibilities not in conformance with their classification concept or, duties and/or responsibilities of another classification, may request a classification review of their position through their supervisor to the Department Head. The employee must submit their request on a form specified by the Executive Director of Human Resources, outlining in writing how they believe their current duties and/or responsibilities differ from their classification concept. A. The Department Head shall review the employee's submitted request and within sixty (60) days shall make one of the following determinations: CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 15 55C-25 Will support the employee's request. a. If the Department Head supports the employee's request for a classification review, he or she shall forward the request to the Executive Director of Human Resources along with justification for support of the employee's request. b. The Department Head shall notify the employee that his or her request has been submitted to the Executive Director of Human Resources. 2. Will not support the employee's request. a. If the Department Head does not support the employee's request for a classification review, he or she shall notify the employee of this decision in writing and set forth the basis for the decision. b. If the Department Head does not support the employee's request, but agrees that some of the duties and/or responsibilities being performed by the employee are those of a higher level City classification, he or she can do the following: Return the employee to performance of the duties and/or responsibilities of their proper classification. ii. Eliminate the higher duties and/or responsibilities being performed by the employee, for which the City has agreed are those forwhich it shall provide higher compensation. B. Any employee request for classification review approved by the Department Head shall be forwarded to the Executive Director of Personnel Services. The Executive Director of Human Resources shall confirm receipt of the request in writing to the employee. Within sixty (60) days of receipt of the request, the Executive Director of Human Resources shall notify the employee and Department Head of the decision as to whether a study will be conducted. If the Executive Director of Human Resources determines that a study is appropriate, the Executive Director of Human Resources shall so notify the CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 16 55C-26 employee and the Department Head in writing and shall provide the employee and Department Head with an approximate start date for the study. C. All determinations of the Department Head and the Executive Director of Human Resources are final. D. All studies and study findings shall require City Manager approval before proceeding. E. All recommendations resulting from study findings require the approval of the City Council and shall be implemented in accordance to the City's Civil Service rules. 5.14 Wherever reference is made to a required number of days, months, or years for Full Time Civil Service employees in this Article, an equivalent number of hours shall be substituted to satisfy an equivalent to 75% requirement for designated PTCS employees. Any hourly rate of pay, defined as the regular hourly rate of pay, shall be computed by dividing the monthly salary rate plus any applicable premiums by 173.33. In determining the hourly rate as herein provided, computation shall be made to the nearest whole cent and a computation resulting in an even one-half cent shall fix the rate at the next higher whole cent. CONFIDENTIAL ASSOCIATION OF SANTA ANA )CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 17 55C-27 ARTICLE VI 6.0 ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES 6.1 Assignment Pay Differential. Assignment pay differentials, as listed herein and throughout the MOU, shall, in each case, be added individually and separately to the employee's base salary. In no event shall one assignment pay differential be added to the employee's base salary as a basis for the calculation of an additional pay differential. A. Employees who are assigned by a Department Head, with the prior approval of the City Manager, to a position requiring the ability to take dictation at a rate of 70 words per minute or better on a regular basis or as an essential or integral element of the work of the position, shall be paid a monthly differential of sixty dollars ($60) above his or her then current base monthly salary step for each full month of such assignment. Full-time incumbents in any classification listed in this MOU who are required by a Department Head or their designee to perform the duties of a Notary Public for the City, in addition to regular duties, shall be paid a monthly pay premium of forty dollars ($40) above his or her then current base monthly salary step. 6.2 Lead Pay. Incumbents in any classification listed in this MOU who are regularly and continuously assigned to lead a functional unit which includes two (2) or more positions in the same or lower classifications as the incumbent may be compensated forsuch duties upon mutual agreement of the City and CASA and approval of the Department Head and the Executive Director of Human Resources. This compensation shall be referred to as "lead pay" and shall be calculated at a rate 5%above the employee's then current base salary step. In addition, incumbents in any classification listed in this MOU who are regularly and continuously assigned to perform lead supervisory responsibilities shall receive lead pay compensation at a rate 5%above his or her then current base monthly salary step. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 18 55C-28 6.3 Bilingual Pay. An employee who is assigned by a Department Head or his or her designee to a position requiring bilingual capability in both English and either Spanish, Samoan, Vietnamese or other languages designated by the City Manager, shall be paid a monthly assignment pay differential in accordance with the criteria and amounts set forth below: A. The employee must be certified by the Executive Director of Human Resources, or his or her designee, as having satisfactorily demonstrated conversational fluency in both English and the second language for any position requiring bilingual capacity. B. Positions where it has been determined by the Department Head that 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, shall be designated as Primary Bilingual Assignments. A qualified incumbent of such position shall be paid a monthly differential of one hundred seventy-five dollars ($175) above his/her then -current base monthly salary step. C. Positions where it has been determined by a Department Head that regular and frequent bilingual usage is necessaryto the performance of duties, but not a major, essential or integral element of the work, shall be designated as Secondary Bilingual Assignments. A qualified incumbent of such position shall be paid a monthly differential of forty dollars ($40) above his or her base monthly salary step for each full month of such assignment. D. The number of such Primary and/or Secondary Bilingual Assignments shall be no larger than the requirements of the department as determined by the Department Head and the City Manager. E. There shall be periodic recertification of such bilingual capability. F. All assignments to positions set forth in this Article shall be made or revoked at the discretion of the Department Head. G. If the City modifies the amount of bilingual pay for any other bargaining unit during the term of this MOLI, CASA agrees to form a Joint Labor Management Team with the City to review bilingual pay provisions and assignments (see also Article XX1, Section 21.3). CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 19 55C-29 6.4 Shift Differential, A. Generally. An employee in a classification represented by CASA who is continuously and regularly assigned to a schedule of work which requires that he or she actually work a minimum of four and one-half (4'/2) hours between the hours of 5:00 p.m. and 7:00 a.m., shall be paid a shift differential for his or her entire work shift at a rate set 5% higher than his or her then -current base monthly salary step. B. Standby Pay. Employees who are released from active duty but who are required by their department to leave notice where they can be reached and be available to return to active duty when required by the department at any time other than their regularly scheduled working hours, shall be said to be on standby duty. Effective no later than the first (lsr) day of the second (2nd) payroll period following City Council approval of this MOU, such employees shall receive two hundred dollars ($200) per week when assigned to be on standby duty. 6.5 Temporary Upgrade Assignment Pay. In order to provide an equitable method of compensating employees who are assigned temporarily to a vacant, full-time, budgeted, higher -level position the following shall apply: A. General Guidelines Temporary Upgrade Assignments shall be limited to the temporary filling of vacant, full-time, budgeted positions due to the termination, promotion or authorized long-term absence of the incumbent. A temporarily vacant position need not be a position without an incumbent. 2. Each such assignment may be terminated at anytime, but in no event shall such assignment continue beyond one hundred eighty (180) days of such assignment. 3. Prior to recommending to the City Manager that a pay differential for a Temporary Upgrade Assignment be granted, the Department Head shall make the following determinations: a. The duties and responsibilities of the position to be filled are of such nature that they cannot remain unassigned CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 20 55C-30 pending the return to duty of the absent incumbent or preparation of an eligible list, whichever is applicable. b. It is not practical to assign the duties of the vacant position to any other employee or employees in the same or higher classification. 4. The City Manager or his or her designee must give written approval of all Temporary Upgrade Assignments involving an increase in pay for the appointee. B. Eliaibility. Regular, full-time employees shall be eligible to receive Temporary Upgrade Assignment Pay if the work assumed encompasses the majority of the typical duties and responsibilities of the vacated higher -level position, and the employee meets the qualifications outlined in B.2, below. a. Employees in the following categories shall not be assigned to Temporary Upgrade work unless specifically authorized by the City Manager: Non -permanent employees (Probationary, Part- time, Seasonal, etc.). ii. Employees performing work above their regular classification in a training capacity. 2. To qualify for temporary upgrade assignment pay, employees must serve in an acting capacity in the higher -level classification as follows: o ten (10) consecutive working days of eight (8) hours each; or o eight (8) consecutive working days of ten (10) hours each for employees working an alternative work schedule; or o any combination of consecutive working days consisting of nine (9) hours each and one (1) working day consisting of eight (8) hours, for a CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 21 55C-31 total of 80 hours of work for employees working the "9/80" work schedule. a. A permitted absence of two working (2) days or less during such ten (10) day period shall not be deemed to void such consecutive service; however, the days of absence shall not be counted in the computation of eligibility to qualify forthe temporary upgrade assignment pay. b. In computing qualifying service rendered, only full days of actual duty shall be included, and partial days shall not be combined to make full days unless they are normally granted holiday hours. Normally granted holidays will be included in computing actual duty days. C. Employees must re -qualify for a Temporary Upgrade Assignment if the employee has not worked in this specific upgrade assignment for a period of eighteen (18) consecutive months or longer. The employee shall only be considered to work in a higher classification if such work is duly and specifically authorized by the employee's Department Head. 3. Whenever practicable, the appointing authority shall rotate Temporary Upgrade Assignments among all qualified employees. C. Payment. On the next consecutive working day following the qualification period for temporary upgrade that an employee has been serving in a Temporary Upgrade Assignment, and for each additional consecutive working day the employee so serves, he or she shall receive the beginning rate (Step "AA") assigned to the higher classification or the lowest rate in that range which is at least 5% higher than the current base salary rate he or she normally receives (inclusive of lead pay and exclusive of any other assignment or special pay additive or additives), whichever is greater, except when placement at "E" step shall not be sufficient to provide the 5% increase. CONFIDENTIAL ASSOCIATION OFSANTAANA (CASA) MOU: JANUARY I, 2019THROUGH JUNE30,2022 Page 22 55C-32 During the term of this MOU, if an employee has worked in a higher classification for the required minimum number of consecutive work days to qualify for temporary upgrade assignment pay, the employee shall thereafter receive upgrade pay for each day the employee is assigned to work in the higher classification during the term of this MOU. 2. Assignment or special pay additives, such as bilingual pay, shift differential, special skills pay, etc., paid to an employee prior to becoming eligible forTemporory Upgrade Assignment Pay, shall not be considered in computing the amount of higher pay to which he or she is entitled in Subparagraph 6.5C above. If the special circumstances upon which the additive is based are also applicable to the Temporary Upgrade Assignment and the employee remains eligible for such pay while in the temporary upgrade position, this amount shall be added to the new salary rate range. 3. Temporary Upgrade Assignments which entail moving an employee into a classification represented by an employee unit other than that which represents his or her permanent classification shall not include any change in fringe benefits for the affected employee. 4. While working in a Temporary Upgrade Assignment, an employee shall continue to accrue, and have recorded, general, special or normal salary step increases in the employee's permanent position; however, such salary increases shall be paid only to maintain the minimum five percent (5%) differential above the salary to which an employee is entitled in his or her permanent position. 6.6 Confidential Premium - An employee who is routinely and consistently assigned to sensitive positions by a Department Head, involving labor negotiations which require trust and discretion, in accordance with Government Code section 3507.5, will be paid at a rate set 2.5% above his or her then current base monthly salary step. 6.7 All assignments of personnel to positions set forth in Sections 6.1 through 6.6 above shall be made or revoked at the discretion of the Department Head. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 23 55C-33 6.8 Career Development Incentives. Employees hired in a classification which requires a specialized certificate as a prerequisite to hiring, either upon appointment or by the time of the employee's passage of probation ("regular appointment"), shall not be eligible for career incentive pay for that prerequisite certificate. However, they shall be eligible for career incentive pay for any other certificates approved for their classification. In no event shall the application of this Career Development Incentive provision result in an individual being eligible to earn more than 12.5%above his or her current monthly base salary step. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE30, 2022 Page 24 55C-34 ARTICLE VII 7.0 OVERTIME 7.1 General Policy for Overtime Work. When 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 Department Head, or a duly authorized representative of the City Manager or the Department Head, may require an employee to perform overtime work. 7.2 Definition. Overtime work for those on a 5/40 work schedule is defined as: A. That authorized or required time worked in excess of the normal workday, tour of duty, or workweek schedule for the particular classification and organizational unit of an employee. Aworkweekis a fixed and regularly recurring period of 168 consecutive hours - 7 consecutive 24-hour periods - as designated by the appointing authority. An employee's work schedule within the workweek shall not be changed to avoid payment of overtime; provided, however, nothing shall abridge management's right to establish and change work schedules and assignments in accordance with the rights of management contained in Article XVIII. Work on observed holidays or work on any regularly scheduled non - work day of which there shall be two (2) per week, if work on any regularly scheduled non -work day is worked at management's direction. 7.3 Computation of Forty (40) Hour Workweek. In computing the forty (40) hour workweek, the following type of work hours shall be included in the computation: actual work time, jury/witness leave, and bereavement leave. Any combination of these work hours in excess of eight (8) hours per day (except for employees on a 4/10 or the 9/80 work schedule) or forty (40) hours per week shall entitle the employee to overtime compensation. Paid time off for vacation leave, all unpaid leave, Association release time and compensatory time off shall not be credited towards the forty (40) hour workweek. No employee shall work overtime hours unless authorized by the department head or his/her designee. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 25 55C-35 7.4 All FLSA nonexempt employees working under the "9/80" work schedule shall earn overtime for all hours worked after the first forty (40) hours in a FLSA work week as required under FLSA. Should the City modify the manner by which it pays overtime (FLSA) to members of other miscellaneous bargaining units, CASA agrees to reopen this topic for discussion. 7.5 Compensation for Overtime. A. The preferable method by which overtime shall be compensated is by monetary payment, at one and one-half (1.5) times the employee's regular rate of pay, subject to the provisions of Subsection C below. B. Should the Department Head determine that the best interests of the City will be served thereby, he or his designee may permit an employee to be compensated for overtime work by taking paid compensatory time off in lieu of monetary compensation. C. Employees shall have the option with Department Head approval to convert a maximum of eighty (80) hours of time and one-half paid overtime (in compensation for 53 1/3 [fifty-three and one-third] overtime hours worked) to time and one-half compensatory time off benefits. Such compensatory time off shall be taken at the discretion of the employee when requested at least 72 hours in advance, provided it does not unduly disrupt the operations of the agency. If the Department Head or his or her designee subsequently denies the requested compensatory time off, the employee and department shall mutually agree on a future date within one year when the employee can use the paid compensatory time off. If the requested compensatory time off is not used within that one year, such compensatory overtime will be paid off in cash. D. The compensatory time bank for employees covered by this MOU has a maximum accrual limit of one hundred and sixty (160) hours. E. Because each hour of overtime worked is accrued on a time and one- half basis, compensatory time off shall be taken, and monetary payment shall be paid, on a straight -time basis. Also, upon termination, any earned, unused compensatory time off ("time -on -the - books") shall be paid on a straight -time basis. Time off with pay to compensate for overtime worked may be taken in increments as small as a half ('/2) hour. CONFIDENTIAL ASSOCIATION OF SANTA ANA ICASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 26 55C-36 G. If compensatory time off is used in excess of that available, such excess compensatory time off shall first be deducted from any available vacation benefits, after which it shall finally be deducted from the next scheduled wage or salary payment. H. Time off with pay as compensation for overtime may not be granted or taken in advance of the overtime work for which the time off compensates. Before compensatory time off with pay may be taken, as herein provided, the overtime worked must have been recorded on official payroll records at or about the time the overtime work was performed, In the absence of such recording, no compensatory time off with pay will be permitted. 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 by resignation, retirement, layoff or otherwise, he or she shall forthwith be compensated for any overtime accumulated to the time immediately preceding such promotion or separation. 7.6 No Effect on Other Benefits. Overtime work shall not apply to the earning of employee benefits (retirement, holidays, vacation accrual, sick leave accrual and employee insurance benefits), toward the completion of probationary period, or to progression within salary rate range. 7.7 Overtime Work to be Minimized. To the extent that he or she is reasonably able to do so, the Department Head or his or her designee shall arrange work programs to minimize overtime work. Necessary overtime work shall be apportioned among employees of like classification and assignment. 7.8 Call -Back Duty. Any employee covered by this MOU who is recalled to active duty from off -duty, shall be entitled to overtime pay at the rate of one and one-half (1 '/2) times the normal hourly pay rate for such employee for time actually worked after reporting to the place of duty, or three (3) hours pay at the normal rate of pay, whichever is greater. 7.9 Declaration of State of Emergency. Upon the occurrence of fire, flood, earthquake, strike, riot, or other catastrophe or emergency which directly affects city operations or the welfare of the City's citizens, the City Manager may declare a state of emergency to exist. Upon the declaration of a state of emergency, the City Manager may require any or all regular full-time CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 27 55C-37 employees of the City to work overtime or off -shift as he or she shall determine, to protect life and property within the City. 7.10 Applicability of Fair Labor Standards Act. The parties agree that if the applicability of the Fair Labor Standards Act to local governmental entities is eliminated by either legislative orjudicial action, they shall meet and confer regarding any proposed changes to this MOU; however, no such changes shall be made except on mutual agreement. 7.11 Reopener. If, during the term of this MOU, the City modifies the manner in which if pays overtime (pursuant to the Fair Labor Standards Act), the City and CASA agree to reopen this provision of the MOU and commence discussions regarding the City's modifications to overtime payments. 7.12 Court Appearance, Compensation for court appearance by employees covered by this MOU shall be as follows; A. For each required court appearance made by an employee during his or her off -duty time in regard to City business, the employee 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 during his or her off -duty hours. If separate court appearances are made both in the morning and afternoon of a particular day, a minimum of two (2) hours overtime shall be allowed for each session attended. If the employee is not released from a morning session and must remain available for afternoon court, the employee shall be paid overtime for all hours the court is in session that day. The employee must provide a copy of the subpoena requiring his or her attendance to initiate payroll procedures. A subpoenaed employee scheduled to appear in court on City business during off -duty time may be placed on standby status by the Department Head or his or her authorized representative if the employee can respond to the court, if called, within 60 minutes of the employee's notification. In the event such off -duty employee is on standby status during any court session and is not required to appear in court, such employee shall be compensated two (2) hours on a straight time basis, for each court session. Such employee may elect, in lieu of paid time, two (2) hours of compensatory time off for standby CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30,2022 Page 28 55C-38 time and not appearing in court, with the approval of the Department Head. If such off -duty employee on standby actually appears in court, he or she shall be compensated as provided in Subsection A. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 29 55C-39 ARTICLE VIII 8.0 TRAINING & EDUCATIONAL ASSISTANCE PROGRAM 8.1 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. 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. 8.2 Elinibility. A. Applications for tuition reimbursement shall be considered only from full-time and designated PTCS, permanent City employees who have completed the probationary work test period. B. Reimbursement is not authorized for courses forwhich the employee is receiving financial assistance from other sources such as G.I. Bill, scholarships, etc. C. Applications shall 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 his or herjob, 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. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 30 55C-40 Approval shall be limited to courses given by accredited colleges and universities, city colleges or adult education courses under the sponsorship of a Board 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 his or her Department Head to attend a particular course or seminar, the expense shall be borne entirely by the department. 8.3 Reimbursement. A. Reimbursement shall be based on the cost of tuition, required enrollment/registration fees, miscellaneous fees (health, parking, student union fees, etc.) and all required texts, eBooks and related material for each course. Additional expenses such as meals are not reimbursable. B. Costs for required texts are eligible for one hundred percent (100%) reimbursement subject to the following conditions: A duplicate of the required text(s) and eBooks was unavailable for loan from the departmental libraries prior to the commencement of course work; or 2. 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. Maximum tuition reimbursement is three thousand five hundred dollars ($3,500) per fiscal year, which the employee may claim either as costs are incurred during the year or as one lump sum. 8.4 Procedures. A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete, in duplicate, an Application for Training and Educational Assistance form and submit it to his or her CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 31 55C-41 Department Head prior to the commencement of class(es) or the payment of fees for registration/tuition. B. The Department Head shall recommend approval or disapproval based an established criteria and budgetary constraints, and then shall forward the application to the Executive Director of Human Resources C. The Executive Director of Human Resources or his or her designee shall approve or disapprove the application for the City Manager. One copy shall be returned to the employee and the duplicate shall be retained by the Human Resources Department. It is advisable that the applicant accomplish the procedure so far described in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy prior to the inception of the course or disbursement of personal funds. D. The employee shall submit his or her copy of the approved application to the Human Resources Department within three (3) months after he or she has completed the course and received his or her final grade. Such employee must include official verification of his or her final grade with appropriate receipts for tuition and textbook costs. These shall 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. E. Upon receipt of the application and required documentation, the Human Resources Department shall determine whether the completed course of instruction is compatible with the provisions of this Article and shall compute the amount of reimbursement, authenticate the application and forward it to the employee's Department Head. The Department Head shall then authorize the Finance & Management Services Department to reimburse the employee the approved amount out of the budget of the department concerned. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1. 2019 THROUGH JUNE 30, 2022 Page 32 55C-42 ARTICLE IX 9.0 HOLIDAYS 9.1 Legal holidays observed by full-time and designated PTCS permanent and probationary employees of the City of Santa Ana are as follows: o January I - New Year's Day. o Third (3rd) Monday in January - In observance of Martin Luther King, Jr.'s Birthday. o Third (3rd) Monday in February - In commemoration of President's Day. o March 31 st - In observance of Cesar Chavez Day. (Effective January 1, 2020) o Last Monday in May - In commemoration of Memorial Day. o July 4th - In observance of Independence Day. o First (1st) Monday in September- In observance of Labor Day. o November 11 th - In observance of Veterans' Day. o Fourth (4th) Thursday in November - In observance of Thanksgiving Day. o The Friday immediately following Thanksgiving Day. o Last working day before Christmas Day, unless Christmas Day falls on Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof. o December 25th -In observance of Christmas Day. o Two (2) Floating Holidays - Any workday selected by the employee with prior permission of the employee's supervisor. o Every day proclaimed by the Mayor of the City as a holiday for City employees. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 33 r 55C-43 o Any holiday which falls on a Sunday shall be observed on the following Monday. o Any holiday which falls on a Saturday shall be observed on the Friday preceding the holiday. 9.2 Holidays - Shift Personnel and Employees on Alternate Work Schedules. A. Full-time employees on a 5/40 schedule whose regularly scheduled days off are other than Saturday and Sunday shall be entitled to receive fourteen (14) eight-hourworking days off during the yearin lieu of the holiday benefits specified in Section 9.1 above. Employees on a 9/80 or 4/10 work schedule shall be entitled to fourteen (14) holidays. Holidays shall be paid in accordance with the hours scheduled for the day the holiday falls on. For employees on a 9/80 schedule: If a holiday falls on a regularly -scheduled nine (9) hour workday (Monday, Tuesday, Wednesday or Thursday), nine (9) hours of holiday time shall be paid. If a holiday falls on a regularly -scheduled eight (8) hour workday (Friday), eight (8) hours of holiday time shall be paid. If a holiday falls on an employee's regularly -scheduled day off work, the employee shall receive credit for nine (9) hours of holiday time to be used in accordance with Section 9.2 (B) or 9.6 below. For employees on a 4/10 schedule: If the holiday falls on a regularly -scheduled ten (10) hourworkday, ten (10) hours of holiday time shall be paid. If a holiday falls on an employee's regularly -scheduled day off work, the employees shall receive credit for ten (10) hours of holiday time to be used in accordance with Section 9.2 (B) or 9.6 below. Substitute holidays may be scheduled by the Department Head or his or her designee, normally during the same month that the holiday is observed by other City employees. An employee entitled to time off in lieu of holidays shall receive that time off in proportion to his or her service at full pay in such capacity during the year. CONFIDENTIAL ASSOCIATION OF SANTA ANA ICASAI MOU: JANUARY I, 2019 THROUGH JUNE 3D, 2022 Page 34 55C-44 9.3 Modified Holiday Schedule- Employees Assigned to the Library. Employees assigned to the Library shall, during the term of this MOU, observe holidays on the dates specified in Section 9.1 above. 9.4 A newly appointed employee must 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 during the month in which it occurs. 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 compensation for the holiday. A newly appointed employee must complete six (6) months of continuous full-time service or part-time civil service in order to receive credit for the Floating Holiday listed in Section 9.1 above. 9.5 Floating Holiday time off may be taken in half hour increments. 9.6 If a holiday falls on an employee's Friday off, the employee must then take their holiday time off on the day before or after the regular scheduled holiday with supervisor and Department Head approval. If the employee cannot take their holiday off before or after the regular scheduled holiday off, the employee shall bank the hours of his or her regular workday (nine or ten hours) as holiday leave to be used at a later date with the supervisor's approval. 9.7 Holiday benefits may not be carried over from one (1) calendar year to the next. 9.8 Mandatory Holiday Closure A. Effective upon adoption of this MOU, City Hall and all other City departments (with the exception of the Police Department, Santa Ana Zoo, and select employees in Fleet Services Division) shall be closed for a mandatory winter holiday closure each year during the term of this MOu. Sunset Clause for Mandatory Holiday Closure This provision shall expire on June 30, 2022 and no additional mandatory winter holiday closures may be implemented offer the CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 35 55C-45 2021 winter holiday closure, unless mutually agreed to otherwise by the parties. C. Dates of Closures: 2019: The closure shall run from Tuesday, December 24, 2019 through Wednesday, January 1, 2020. The City shall re -open and employees report back to work as scheduled on Thursday, January 2, 2020. Employees shall observe the three (3) City paid holidays provided in Section 9.1 on: Tuesday, December 24, 2019 (Last work day before Christmas Day) Wednesday, December 25, 2019 (Christmas Day) Wednesday, January 1, 2020 (New Year's Day) On each of the holiday closure days for 2019: (December 26, 30 and 31, 2019 as well as December 27, 2019 for those employees who, but for the holiday closure, would be scheduled to work that day as theirworking Friday, employees may use any of the following accrued leaves (if employees have such leaves): vacation, compensatory time off, or holiday leave. Employees may also choose to be off on any or all of these days on a leave without pay. 2. 2020: The closure shall run from Thursday, December 24, 2020 through Friday, January 1, 2027. The City shall re -open and employees report back to work as scheduled on Monday, January 4, 2021. Employees shall observe the three (3) City paid holidays provided in Section 9.1 on: Thursday, December 24, 2020 (Last work day before Christmas Day) Friday, December 25, 2020 (Christmas Day). For employees whose alternating regular day off is on December 18, 2020 who would otherwise be scheduled to work on December 25, 2020, the Christmas Holiday is on December 25, 2020. For employees whose alternating regular day on will be on December 18 who CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 36 55C-46 would otherwise be scheduled off on Friday December 25, they will receive nine (9) floating holiday hours for Christmas Day 2020 Friday, January 1, 2021 (New Year's Day). For employees whose alternating regular day on is on December 18, 2020 who would otherwise be scheduled to work on January 1, 2021, the New Year's Holiday is on January 1, 2021. For employees whose alternating regular day off will be on December 18, 2020 who would otherwise be scheduled off on Friday January 1, 2021, they will receive nine (9) floating holiday hours for New Year's Day 2020 On each of the holiday closure days for202O, (December 28, 29, 30 and 31, 2020) employees may use any of the following accrued leaves (if employees have such leaves): vacation, compensatory time off, or holiday leave. Employees may also choose to be off on any or all of these days on a leave without pay. 3. 2021: The closure shall run from Friday, December 24, 2021 through Friday, December 31, 2021. The City shall re -open and employees report back to work as scheduled on Monday, January 3, 2022. Employees shall observe the three (3) City paid holidays provided in Section 9.1 on: Friday, December 24, 2021 (Last work day before Christmas Day). For employees whose alternating regular day off is on December 17, 2021, who would otherwise be scheduled to work on December 24, 2021, the Christmas Eve Holiday is on December 24, 2021. For employees whose alternating regular day on will be on December 17 who would otherwise be scheduled off on Friday December24, theywill receive nine (9) floating holiday hours for Christmas Eve 2021 Monday, December 27, 2021 (Christmas Day) Thursday, December 31, 2021 (New Year's Day). For employees whose alternating regular day on is on December CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 37 55C-47 17, 2020 who would otherwise be scheduled to work on December 31, 2021, the New Year's Holiday is on December 31, 2021. For employees whose alternating regular day off will be on December 17, 2020 who would otherwise be scheduled off on Friday December 31, 2021, they will receive nine (9) floating holiday hours for New Year's Day 2022. On each of the holiday closure days (December 28, 29, and 30 (employees may use any of the following accrued leaves (if employees have such leaves): vacation, compensatory time off, or holiday leave. Employees may also choose to be off on any or all of these days on a leave without pay. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 38 55C-48 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 shall be used as a guide in the administration of the provisions of this Article. 10.2 Vacation Period. A. Effective January 1, 2016, the regular and longevity vacation accruals of bargaining unit members were combined into one single vacation bank. The accrual rates remained the same. Members shall accrue the combined vacation with pay on a monthly basis as set forth in the following table. Completed Years Annual Vacation Hours Accrued Monthly Accrual Rate 1 80 6.67 2 80 6.67 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 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 39 55C-49 19 1 192 16.00 1 20 or more]_200 16.67 B. An employee who has completed less than one year's service during the calendar year shall receive a proportionate fraction in accordance with the amount of service to his or her credit during the year; provided, however, no employee shall be entitled to, or receive payment for, any vacation until he or she has completed six (6) months of continuous service. C. On or after the first (1 It) day of the month following completion of six (6) months of continuous full-time service or part-time civil service, an employee may be allowed to take all or a proportionate fraction of his or her earned vacation, subject to scheduling approval of the employee's supervisor. D. Vacation time off may be taken in increments as small as one-half ('/2) hour, with fractional usage rounded upward to the next higher multiple of one-half ('/2). E. Computation of Vacation. In computing vacation, each municipal holiday that occurs during the vacation, and that falls on a day which the employee would have worked had he or she not been on vacation, shall be deducted from the computation so that one (1) additional day of vacation shall be allowed to the employee unless departmental practice provides some other manner of compensating for municipal holidays. Should an employee be confined to a hospital for sickness or injury while on authorized vacation, each full day of such confinement, when confirmed by a physician's statement and approved by the Department Head, may be deducted from the computation of vacation expended and charged against the employee's accumulated sick leave. 2. No employee shall have a right to accumulate or split his or her vacations, but the same may be allowed or required by the Department Head. The time at which an employee shall take his or her vacation shall be determined by the Department CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 40 55C-50 Head, with due regard for the wishes of the employee and particular regard for the needs of the service. 3. A period of earlier service does not apply toward vacation accumulation when an employee has had a break in continuous service, unless the break in service is concluded by reappointment, as provided in Section 9-114 of the Civil Service Rules and Regulations, or by reemployment from layoff within one (1) year. Leave of absence without pay, as provided in Article XI, Section 11.1E (Sick Leave - Extended), Article XI, Section 11.8 (Authorized Absence Without Pay- Long Term) and Article XXI, Section 21.2 (Catastrophic Leave Donation) herein, does not constitute a break in continuous service as used in this section; however, the leave of absence period shall not be applied toward the accumulation of vacation. Absence on military leave followed by reinstatement, as provided in Section 9-143 of the Civil Service Rules and Regulations, does not constitute a break in service, and the period of absence on such military leave shall be applied toward the accumulation of vacation. Vacation Buy -Back. Employees covered by this agreement are eligible to require the City to buy-back up to eighty (80) hours of their banked vacation per calendar year. G. PTCS designated employees shall accrue vacation leave at a rate of 75% of the monthly provided rate of the Full -Time Civil Service equivalent as designated in this MOU. 10.3 Limitation on Vacation. A. 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 fifty (50) working days (400 hours) in any one year. 10.4 Vacation Carry -Over A. No employee may cam/ 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 is forfeited, meaning that no pay shall be received for such unused vacation at anytime. With respect CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 41 55C-51 to any vacation forfeited in this manner, this provision constitutes a waiverof any rights to vested vacation benefits under California Labor Code section 227.3. B. In no way is the maximum vacation carryover for each calendar year as set forth in the table below meant to be considered a cap on hours an employee can accrue throughout the calendar year. Completed Years Max Carryover Into 2019 and for all years forward 1 80 2 160 3 200 4 240 5 240 6 244 7 252 8 260 9 268 10 276 11 284 12 292 13 300 14 308 15 316 16 328 17 344 18 360 19 376 20 392 21 400 22 400 23 400 24 400 25 400 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 42 55C-52 10.5 Excess Usage. If vacation time off is used in excess of that available, such excess vacation time off will, first, be deducted from any available compensatory time off accrual and if none, then from the next scheduled salary payment, 10.6 Effect of Extended Sick Leave on Vacation Accrual. Absence on sick leave for a period in excess of fifteen (15) consecutive calendar days shall not be considered as service time for vacation accrual purposes. CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU: JANUARYI, 2019 THROUGH JUNE 30,2022 Page 43 55C-53 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, injury, medical, or dental appointment that prevents the employee from performing the duties of his or her position, and shall be deemed to include time in quarantine resulting from exposure to a contagious disease. B. Accrual, Each employee shall be entitled to, and shall earn, one (1), eight (8) hour working day of sick leave for each full calendar month of service in which he is employed by the City with full pay; provided, however, any absence on sick leave for a period of time greater than fifteen (15) consecutive calendar days in anyone (1) calendar month shall not be considered to be service entitling an employee to earn sick leave as aforesaid. Subject to the other provisions in this Article, sick leave shall accrue to the credit of each employee to the extent that it is not used. PTCS designated employees shall accrue sick and personal necessity leave at a rate of 75% of the monthly provided rate of the Full -Time Civil Service equivalent as designated in this MOU. C. Authorized Only When Necessary. Use of sick leave by City employees shall be authorized as follows: Sick leave is not a right which an employee may use at his or her discretion, but shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Subsection J below. 2. When an accepted industrial illness or injury has caused an employee's absence, for which benefits are required under the State Workers' Compensation Insurance and Safety Act, paid sick leave shall be allowed such employee during the first three (3) days of the statutory waiting period. If the workers' compensation related illness or injury continues past the initial three (3) consecutive days, the employee shall have the three CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30,2022 Page 44 55C-54 (3) used sick days recredited to his or her account if the employee remains off work longer than fourteen (14) days. Paid sick leave shall continue until the fourth (4th) day when the City pays the employee workers' compensation benefits for such illness or injury. If the employee does not have sufficient accumulated sick leave at the commencement of such industrial illness or injury, they shall be advanced sick leave for this purpose. Subsequently, the City shall deduct an equal amount previously advanced from any sick leave accrued by the employee until the total amount is recovered. If the employee terminates before recovery of all advanced sick leave, the City shall deduct the unrecovered cost of sick leave from such terminated employee's final paycheck, to the extent possible. The City may authorize employees to use sick leave, vacation, or compensatory time for approved workers' compensation medical appointments as specified herein. The City may authorize use of such leave for City approved medical appointments wheneversuch appointments cannot be secured outside the employee's regular workday, and salary continuation or workers' compensation benefits are not available. D. Limit. The maximum total accumulation of sick.leave with pay shall be two hundred (200), eight (8) hour working days. Sick leave usage of less than a full day shall be charged in minimum increments of one- half ('/z) hour, with fractional usage rounded upward to the next higher multiple of one-half (A). E. Extended, The City Manager may grant leave up to six (6) months without pay to an employee who has exhausted all of his or her accrued sick leave if a licensed physician designated by the City Manager indicates that the employee shall be sufficiently recovered to return to his or her employment within a six (6) month period. Prior to the expiration of the additional time, the employee may return to his or her position provided that the employee has a certificate from a licensed physician stating that the employee is able to perform all the duties of his or her 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. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 45 55C-55 F. Extension by Use of Accrued Compensatory Time Off and/or Vacation. After an employee's sick leave has been exhausted, he or she maybe granted permission to use, first, any unused compensatory time off benefits, then, any unused vacation leave benefits he or she may have accrued. G. Notice. The employee taking sick leave shall notify his or her immediate supervisor either prior to or within four (4) hours after the time he or she is scheduled to report for duty, or as otherwise established by departmental regulations. When the absence is more than three (3) consecutive working days, the employee must present to his or her Department Head a physician's certificate stating that, in the physician's opinion, the employee could not report to work because of such illness or injury and that the employee is sufficiently recovered to safely return to work. A physician's certificate or other satisfactory written evidence of actual illness or injury may be required after an absence of any duration less than three (3) days. 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; or, sickness or disability sustained while engaged in employment otherthan employment by the City, for monetary.gain or other compensation, or by reason of engaging in business or activity for monetary gain or other compensation. Excess Usage. If sick leave is used in excess of that due and available an employee, such excess sick leave will, first, be deducted from any available compensatory time off benefit; second, from any available vacation leave benefit; finally, deducted from the next scheduled salary payment. J. Necessity Leave. Each employee shall be afforded the opportunity to use up to 48 hours of sick leave per calendar year, on a non- cumulative basis, as personal necessity leave. All of this personal necessity leave may be used to attend to an illness of a child, parent, or spouse of the employee. 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; "parent" means a biological, foster, adoptive parent, a stepparent, a person who stood in loco parentis when the employee was a minor child, or a legal CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 45 55C-56 guardian; and "immediate family" means any member of the employee's household related by blood or marriage, a parent, parent -in-law (including biological, adoptive, foster, stepparent, and legal guardian), spouse, registered domestic partner, child, brother, sister, grandparent, or grandchild of the employee, regardless of residence, or any other relative of the employee by blood or marriage, where it can be established by the employee that the employee's presence is required to handle emergency arrangements and/or other matters. Up to three (3) days of this personal necessity leave may be used: 1. To attend to a serious accident to members of the employee's immediate family; 2. For childbirth; 3. To cope with imminent danger to the employee's family, home, or other valuable property; 4. When the existence of external circumstances beyond the employee's control make it impossible for him or her to report for duty; or 5. To attend to medical or dental appointments for members of the employee's household. For the 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 his or her specific workday schedule. K. Payment for Unused Sick Leave. Except in cases of disability retirement, upon non -disciplinary termination of employment payment of all unused sick leave shall be deposited in the employee's individual Retirement Health Savings Plan Account (RHS) (Article 12.8 of this MOU). 2. 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 his or her account upon the effective date of such termination, not to exceed a maximum limit of 427 hours (53.3 eight -hour days), at the base rate of pay effective on the date of such termination. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 47 55C-57 Payment after 15 Years. Affected employees who have completed fifteen (15) years of cumulative full-time service with the city shall be entitled to payment for one-half (1/2) of the total accrued unused sick leave benefit credited to his or her account upon the effective date of his or hertermination, not to exceed a maximum limit of 800 hours, at the rate of base pay effective on the date of such termination. Payment after 20 Years. Affected employees who have completed twenty (20) years of cumulative full-time service with the city shall be entitled to payment for two-thirds (2/3) of the total accrued unused sick leave benefit credited to his or her account upon the effective date of his or her termination, not to exceed a maximum limit of 1066 hours, at the rate of base pay effective on the date of such termination. 5. Payment after 25 years. Affected employees who have completed twenty-five (25) years of cumulative full-time service with the City shall be entitled to payment for three -fourths (3/4) of the total accrued un-used sick leave benefit credited to his or her account upon the effective date of his or her termination, not to exceed a maximum limit of 1,200 hours, at the rate of base pay effective on the date of termination. 6. CASA members who notify the City, in writing, of their intent to retire within 12 calendar months from the date of retirement shall be allowed to cash out any eligible sick leave bank balances (K.1 through K.5), upon request. Employees shall receive payment as soon as practical, and no longer than 30 days after the request has been made. If the employee cashes out his or her eligible sick leave bank balances prior to retirement and subsequently does not retire from the City, all future sick leave accrual for the employee shall be subject to the same cash out provision elected and will be processed on the final paycheck. All combined cash outs cannot exceed what the employee would have been entitled to if the cash out was processed on the final paycheck only. 7. 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 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 48 55C-58 to the employee's account at the time of his or her death, and at the rate of pay effective on the date of death. L. California's Healthy Workplaces/Healthy Families Act of 2014 (AB1522) also known as California's Paid Sick Leave Law, required the City to provide paid sick leave to eligible employees upon oral or written request, within the parameters of the law, for the following purposes: Diagnosis, care, or treatment of an existing health condition of, or preventative care for an employee or an employee's qualified family member; Specified purposes for an employee who is a victim or domestic violence, sexual assault, or stalking. 11.2 Bereavement Leave. A. An employee covered under this MOU shall be granted up to three (3) working days leave without loss of pay in the case of a death of a member of the employee's immediate family. Such leave is designated as bereavement leave. "Immediate family" as used in this section is limited to: Any member of the employee's household related by blood or marriage; 2. A parent, parent -in-law, stepparent, spouse, child, brother, sister, stepbrother, stepsister, grandparent or grandchild of the employee, regardless of residence; 3. Any other relative of the employee by blood or by marriage where it can be established by the employee that as a result of such relative's death, the employee's presence is required to handle funeral arrangements and/or matters of estate. B. Whenever an employee is required to travel one way more than 500 miles to attend to the death of a member of the employee's immediate family, an employee may use up to sixteen (16) hours of additional leave charged to their Personal Necessity Leave balance when authorized by the Department Head. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 49 55C-59 11.3 Military Leave. A. Proof of Orders and Reinstatements. An employee shall be granted military leave if he or she furnishes the Executive Director of Human Resources satisfactory proof of his or her order to report for duty. Upon return and upon showing of proof of actual service pursuant to such orders, he or she shall be reinstated as provided in Section 143 of the Civil Service Rules and Regulations of the City of Santa Ana. B. Temoorarv. Members of the reserve forces of the United States, or the National Guard, granted temporary leave when ordered to duty, in accordance with the Military and Veterans Code, shall be granted leave with pay not to exceed thirty (30) calendar days in each calendar year after one (1) years' 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 non-party witness in any court action, he or she shall be allowed to leave for the time actually required for such service without loss of pay. Each on -duty employee called for such service shall present to his or her Department Head for examination the subpoena calling him or her to such service and shall pay into the City Treasury the fees collected for such service, with the exception of reimbursement for transportation expenses, if any. 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 shall be granted leave with pay for the time actually required without loss of any accrued vacation time off benefits. 11.6 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. Unauthorized absence from duty for a consecutive number of working hours equal to the number of working hours in the employee's normal workweek (five (5) consecutive working days) may be deemed a resignation from City service; provided, however, if upon return to duty the person so absenting himself or herself makes an explanation satisfactory to the Department Head regarding the cause of his or her absence, the Department Head may restore him or her to his or her position, with the City Manager's approval. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 5D 55C-60 11.7 Authorized Absence Without Pay - Short Term. Absence without pay not to exceed five (5) consecutive working days may be authorized by the employee's Department Head. Absence without pay not to exceed fifteen (15) calendar days may be authorized by the Department Head with the approval of the City Manager. Such an absence may be authorized only if in thejudgment of the Department Head it serves 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 Department Head recommending approval of the request, the City Manager may grant a leave of absence without pay for up to six (6) months. An employee returning to duty with the City shall inform the Department Head and the Executive Director of Human Resources of his or her intention at least thirty (30) calendar days prior to the expiration of the six (6) month period, or shorter period if the full six (6) months is not taken. Upon receipt.of such notice, the Department Head shall take steps necessary to restore the employee to his or her former position. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year leave of absence without pay. 11.9 Industrial Leave. Any period of time during which an employee is required to be absent from his or her position by reason of an industrial injury or industrial illness for which he or she is entitled to receive compensation shall not be considered a break in continuous service for the purpose of his or her right to salary adjustments or to the accrual of vacation and seniority. 11.10 Preanancv Disability Leave. A pregnant employee is entitled to a reasonable leave of absence without pay for any temporary disability resulting from pregnancy, miscarriage, childbirth or recovery therefrom. Such reasonable leave of absence shall not exceed four (4) months. However, an employee may be granted up to an additional two (2) months of leave, at the discretion of the City Manager, for a total of up to six (6) months in which to recover from the disability if substantiated by a physician's certificate. Employees may take an unpaid leave of absence during pregnancy disability consistent with the law. As with all other temporary disabilities, a physician's certificate is required to verify the extent and duration of the temporary disability. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 51 55C-61 An employee who plans to take a pregnancy leave must give a reasonable notice (not less than four (4) weeks) before the date she shall take the leave and the estimated duration of the leave. Health and welfare insurance coverage shall be continued only if the employee pays a cash premium to continue coverage while on a leave of absence without pay or is covered under the Family Medical Leave Act (FMLA) or California Family Rights Act (CFRA) provisions. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 52 55C-62 ARTICLE XII 12.0 EMPLOYEE INSURANCE 12.1 Health Insurance. The City shall contribute the following amounts toward the payment of premiums for affected employees and their dependents under the existing health insurance programs or new program or programs providing substantially similar or improved coverage and benefits selected in accordance with procedures in effect on the effective date of this MOU: A. For each such employee who is covered under a spouse's non -City sponsored health plan, the City shall pay the employee a cash payment each month in an amount equal to 50% of the monthly premium amount for the City's lowest "employee -only" coverage, if the employee waives, in writing, City -paid coverage. If an employee waives City provided coverage, said employee shall provide proof of medical insurance coverage in a non -City -sponsored health plan. Beginning Jan 1, 2020: The City shall contribute an allowance towards the employee's health insurance premiums for eligible employees and their qualified dependents under The Public Employees' Medical & Hospital Care Act (PEMHCA) which governs the California Public Employees' Retirement System (CaIPERS) Health Insurance Programs pursuant to the provisions below: Effective January 1, 2020, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $704.00 • Employee+l $1,357.00 • Employee + Family $1,750.00 2. Effective January 1, 2021, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $754.00 • Employee +l $1,407.00 • Employee + Family $1,800.00 3. Effective January 1, 2022, the City will provide a monthly contribution to health insurance premiums at the following rates: CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 53 55C-63 Employee Only $804.00 Employee +1 $1,457.00 Employee + Family $1,850.00 C. Any contribution necessary to maintain benefits under City -sponsored medical plans in excess of the amount set forth above shall be borne entirely by the employee. D. The parties recognize that certain State and Federal laws, programs and regulations, including the Affordable Care Act, may impact future medical plan offerings. In the event that reform measures enacted during the term of this MOU alter healthcare options, cost or other elements of healthcare services, thereby materially altering the provisions of this MOU, the parties agree that upon the request of either party the parties shall re -open Section 12.1 hereof regarding medical insurance for the purpose of discussing alternative approaches and proposals to providing healthcare benefits hereunder. In addition, should State or Federal laws concerning the taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. 12.2 Dental Insurance. A. The City agrees to contribute towards the premiums for dental insurance plans provided by the City for employees covered by this MOU and their eligible dependents on the following basis: Effective January 1, 2020, the City shall contribute an allowance towards the employee's Cafeteria Benefit plan for dental insurance premiums for eligible employees and their qualified dependents in the amount of one hundred dollars ($100) per month per employee. 2. Effective January 1, 2021, the City shall contribute an allowance towards the employee's Cafeteria Benefit plan for dental insurance premiums for eligible employees and their qualified dependents in the amount of one hundred five dollars ($105) per month per employee. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU; JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 54 55C-64 3. Effective January 1, 2022, the City shall contribute an allowance towards the employee's Cafeteria Benefit plan for dental insurance premiums for eligible employees and their qualified dependents in the amount of one hundred ten dollars ($110) per month per employee. Any contribution necessary to maintain benefits under said dental plans in excess of the amount of the City contribution to the cafeteria plan specified above shall be borne entirely by the employee. 12.3 Vision Plan. The City shall maintain in effect its existing vision plan, for employees covered by this MOU. All costs of the premium shall be paid by the employee. 12.4 Long -Term Disability (L.T.D.) Insurance. The City shall continue to pay one hundred percent (100%) of the premium cost fora 60-day elimination period With a maximum benefit of $5,000 per month for a long-term disability insurance plan for employees covered by this MOU. Effective January 1, 2020, the City shall pay one hundred percent (100%) of the premium cost for a 60-day elimination period with a maximum benefit of $7,500 per month for a long-term disability insurance plan for employees covered by this MOU. 12.5 Life Insurance. The City shall maintain in effect its existing life insurance plans covering employees covered by this MOU, including term life insurance coverage for each affected employee in the amount of twenty thousand dollars ($20,000) plus twenty thousand dollars ($20,000) Accidental Death and Dismemberment (AD&D) coverage at no cost to the employee. A. Effective January 1, 2020, the term life insurance coverage for each affected employee will increase to a maximum benefit amount of fifty thousand dollars ($50,000) plus fifty thousand dollars ($50,000) Accidental Death and Dismemberment (AD&D) coverage at no cost to the employee. 12.6 The City shall retain the right to change health, dental and life insurance carriers, administer the insurance benefits provided thereunder, and select and/or change any excess or supplemental insurance carriers as a part of any self-insurance plan during the term of this MOU, provided that CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30,2022 Page 55 55C-65 employees covered by this MOU continue to receive equivalent benefits and provided that the parties have met and conferred before the benefits changes are made. 12.7 When there is a need to discuss matters relating to employee insurance and the City believes it would be beneficial to involve an Insurance Committee, CASA shall have an equal number of representatives as the City on such a committee, and the Committee shall meet as necessary. 12.8 Retirement Health Sovinas Plan. A. Effective October 1, 2014, employees covered under this MOU began participating in the "Vantage Care" Retirement Health Savings Plan (RHS), as earlier implemented by the City, which designated ICMA-RC as the administrator of the plan. At that time, employees covered under this MOU received a one-time increase of 1.25% in their base pay, which amount was deposited into their individual RHS accounts each pay period going forward. Employees covered underthis MOU shall continue to contribute 1.25% of their base pay each pay period to the RHS plan, which amount shall . be deposited into the employee's individual RHS account. 12.9 PTCS employees that are covered under this article will receive the same benefits as the Full -Time employees covered under this MOU. City contributions to those benefits are 75%of the value provided to the Full -Time Civil Service designated employees. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 56 55C-66 ARTICLE XIII 13.0 RETIREMENT 13.1 General. The terms of the existing contract between the City and the California Public Employees' Retirement System (CQIPERS) governing the City retirement benefits for affected employees are incorporated by reference herein. The City shall continue to make contributions to CaIPERS in accordance with its contract with CaIPERS for affected employees covered by such contract as amended. 13.2 Deferred Retirement. The City shall continue to make payment to CaIPERS on behalf of each affected employee, as defined in Sections 13.3.A and 13.13 (below), in an amount necessary to pay one hundred percent (100%) of his or her individual retirement contribution which is equal to eight percent (8%) of base salary. Such payments shall be credited to the individual employee's CaIPERS account. Such payments are not increases in base salary and no salary rate 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 shall not treat these payments as ordinary income and, thus shall not withhold Federal or State income tax from these payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, and not ordinary income. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each employee shall forthwith be increased by 8%. For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments as if they were a part of the employee's base salary. 13.3 2.7% at 55 Service Retirement Benefit for Miscellaneous Members. A. The City agrees to continue to provide Miscellaneous employees covered by this MOU who were appointed to their classification on or before December 31., 2012 with the 2.7% at 55 Service Retirement benefit. Pursuant to CaIPERS regulations, this formula shall apply only to CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 57 55C-67 the aforementioned CASA employees that are in an active status. This formula shall apply to each year of eligible service credited with the City of Santa Ana. B. The City agrees to provide Miscellaneous employees covered by this' MOU who are appointed to their classification on or after January 1, 2013 and are not new members as defined by the California Public Employees' Pension Reform Act of 2013 (AB340), with the 2.7% at 55 Service Retirement benefit. Pursuant to CaIPERS, this formula shall apply only to the aforementioned CASA employees that are in an active status. This formula shall apply to each year of eligible service credited with the City of Santa Ana. C. Payment toward the 2.7% at 55 Service Retirement Benefit a Employees defined in Section 13.3,A (above) covered by this MOU contribute 8% of their salary to the employer's share of the cost of the 2.7% at 55 enhanced retirement formula. All employee contributions to the employer's cost of the CoIPERS retirement benefits shall be implemented as cost -sharing pursuant to Government Code Section 20516(f). To the extent permitted by CaIPERS and the Internal Revenue Service, this 8%contribution shall be implemented through payroll deductions on a pre-tax basis. Employees defined in Section 13.3.13,(above) shall contribute 87. of their salary toward the employer contribution of the 2.7% at 55 retirement benefit. All employee contributions to CaIPERS for their retirement benefits shall be implemented as cost -sharing pursuant to Government Code Section 20516(f), 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. 13.4 2.07o at 62 Service Retirement Benefit for Miscellaneous Members A. The City agrees to provide Miscellaneous employees covered by this MOU who were appointed to their classification on or after January 1, 2013, and who are defined as new members under the California Public Employees' Pension Reform Act of 2013 (AB340), with the 2.0% at 62 Service Retirement benefit. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 58 55C-68 Pursuant to CalPERS regulations, this formula shall apply only to the aforementioned CASA employees that are in an active status. This formula shall apply to each year of eligible service credited with the City of Santa Ana. B. Payment towards the 2 0% at 62 Service Retirement Benefit. Employees defined in 13.4.A (above) covered by this MOU shall contribute at least 50% of normal cost of the 2.07. at 62 retirement benefit. 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. 13.5 Credit for Unused Sick Leave. An employee covered by this MOU shall be permitted to have unused accumulated sick leave at the time of retirement converted to additional service credit at the rate of 0.004 years of service credit for each eight -hour day of unused sick leave (i.e., 200 days of sick leave equals .80 additional year of service credit). The City must report only those days of unused sick leave that were accrued by the employee during the normal course of employment. This section applies to members whose effective date of retirement is within four (4) months of separation from employment. 13.6 Military Service Credit as Public Service. An employee covered by this MOU shall be permitted 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. 13.7 Deferred Compensation. A. Background. Prior to July 1, 1991, the City authorized an amount equal to one percent (1.0%) of base pay for a deferred compensation benefit for full time "confidential" employees. This benefit was treated separately from salary, and was not included in the City's salary and wage schedule. Effective July 1, 1991, to comply with CaIPERS wage reporting requirements, this benefit was added to the pay rate assigned to each "confidential" classification and reported as "salary" to CcIPERS. Thereafter, pay levels for "confidential" classifications included this additional one percent (1%) deferred compensation benefit. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 59 55C-69 ARTICLE XIV 14.0 SAFETY 14.1 General. The City and the employees of the City agree to comply with all applicable Federal, State and local laws, and the City of Santa Ana regulations, which relate to health and safety. 14.2 Central Safety Committee. CASA may designate two (2) representatives and two (2) alternates to serve on the City's Central Safety Committee. CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30,2022 Page 60 55C-70 ARTICLE XV 15.0 GRIEVANCE REVIEW PROCEDURE 15.1 Definition of a Grievance. A grievance shall be defined as a timely complaint by an employee or group of employees or CASA 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 those provisions of the City Charter and the Civil Service Rules and Regulations. 15.2 Informal Process - First Step A. An employee and/or his or her designated representative must first attempt to resolve the grievance on an informal basis through discussion with his or her immediate supervisor without undue delay, but in no case, beyond a period of fifteen (15) business 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. B. Every effort shall be made to find an acceptable solution to the grievance through this informal means at the most immediate level of supervision. C. In order that this informal procedure may be responsive, both parties involved shall expedite this process. If, within fifteen (15) business days, a mutually acceptable solution has not been reached at the informal level, the employee and/or the employee's designated representative shall then set forth the grievance in writing, indicate the nature of the action desired, sign it, and submit it in duplicate to the employee's Department Head. If the Department Head is the immediate supervisor, the employee may proceed directly to the City Manager or his or her designee. At this point, the grievance review process becomes formal. Should the grievant fail to file a written grievance, and in the manner specified above, within fifteen (15) business days after first discussing the grievance with the employee's immediate supervisor, the grievance shall be barred and waived. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 61 55C-71 D. Any resolution of the grievance at the informal stage by any person other than a middle manager or above shall not become precedent or be used to establish past practice regarding implementation, interpretation, or application of this MOU. 15.3 Formal Process. A. Second Step. The Department Head or his or her designated representative shall meet with the employee and/or the employee's designated representative within fifteen (15) business days after the grievance has been submitted to the Department Head. The Department Head, or his or her designated representative, shall review the grievance and may affirm, reverse or modify the disposition made at the First Step and shall deliver his or her answer to the employee and/or the employee's designated representative within ten (10) business days after this meeting. B. Third Step. If the grievance is not satisfactorily resolved at the Second Step, the employee and/or fhe employee's representative may submit the grievance in writing to the City Manager or his or her designated representative within thirty (30) days of being informed of the disposition made at the Second Step. Failure of the grievant and/or his or her designated representative to take this action shall constitute a waiver and bar to the grievance, and the grievance shall be .considered settled on the basis of the disposition made at the Second Step. The City Manager or his or her designated representative shall meet with the employee and/or the employee's designated representative within fifteen (15) business days after submission of the grievance. The City Manager, or his or her designated representative, after careful review, may affirm, reverse, or modify the disposition made at the Second Step and his or her decision, which shall be final and binding, shall be delivered in writing, to the employee and/or the employee's designated representative within fifteen (15) business days after this meeting. A copy of the written grievance to the City Manager, or his or her duly authorized representative, and of the City Manager's or his or her representative's written decision, shall be filed in the personnel records of the department and maintained in the City Human Resources Department. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 62 55C-72 15.4 Reservation of Rights. After the procedure set forth in this Article has been exhausted, the grievant, CASA, and the City shall have all rights and remedies to pursue the grievance under the law. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 63 55C-73 ARTICLE XVI 16.0 ASSOCIATION RIGHTS 16.1 Release Time for Association Representatives. CASA shall have the right to appoint/elect a reasonable number of representatives who are recognized by the City as officers or work site leaders/stewards. A. Such reasonable number of work site leaders/stewards recognized by the City shall be limited to six (6). B. The City's Executive Director of Human Resources shall be provided with a list of names and classification titles of CASA's officers as set forth in Exhibit B of the Confidential Association of Santa Ana City MOU, as well as the names and classification titles of all work site leaders/stewards and other Association representatives. The Association agrees to inform the City in writing of any changes in this list within ten (10) calendar days. C. During the term of this MOU, the City agrees to allow reasonable time off without loss of compensation to enable the officers and worksite leaders/stewards to assist other CASA unit employees in processing grievances under the Grievance Review Procedure and other CASA business activities; provided, however, that such officers and worksite leaders/stewards shall make advance -arrangement with their supervisors prior to absenting themselves for such purpose. The officers and worksite leaders/stewards 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. Time spent by the Association President, officers or worksite leaders/stewards on Association Release time, under this MOU, shall not be considered time worked for computation of overtime according to the Fair Labor Standards Act. 16.2 Worksite Access. A. Officers, worksite leaders/stewards and/or Association representatives shall be permitted to visit break and lunch areas designated by the City, before or after work or during designated lunch periods, for the purpose of discussing Association business, provided that CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 64 55C-74 arrangements are made in advance with the manager responsible for the worksite. B. Such visits shall not disrupt the work of City employees, interfere with the normal operations of the department or with established safety and security requirements. Where any such problems arise, CASA and the City will agree on an alternate meeting/conference facility forthe purpose of providing a place for CASA to hold a meeting before or after work or during lunch periods. If the City facility provided CASA as an alternate meeting site during non -working hours is a public meeting room, its scheduling and use shall be governed in accordance with regulations pertaining to the use of public meeting rooms at City facilities. C. Solicitations of membership and all activities concerned with the internal management of CASA, such as collecting dues, holding membership meetings, preparation of petitions, campaigning for office, conducting elections and distributing literature, shall not be conducted during working hours. D. Officers and employees may perform those duties assigned to them by CASA, but in no event shall they have the right to interfere with the performance of work of any other employee or interfere with City operations or to call a strike, slowdown, work stoppage, sympathy strike or take any economic action against the. City. 16.3 Release Time for Employee Representatives. A. In the event that CASA is formally meeting and conferring with representatives of the City on matters within the scope of representation during regular City business hours, a reasonable number of officers, employee representatives or other officials of CASA shall be allowed reasonable time off without loss of compensation or other benefits. Such officers and employee representatives shall not leave their duty or work station or assignment without the prior knowledge of their supervisor or such supervisor's supervisor. C. Such meetings are subject to scheduling in a manner consistent with City operating needs and work schedules. CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30,2022 Page 65 55C-75 16.4 Use of Bulletin Boards. Space shall be made available to CASA on the City's existing employee bulletin boards for the purpose of posting notices pertaining to Association business, subject to the following conditions: A. Material posted by CASA shall not include campaign material on municipal election matters, including elections for City Council, other City positions, or other municipal political matters. B. Material posted is not derogatory to the City, City employees or other employee organizations. C. All materials are dated, identify CASA and bear the signature of the authorized representative(s) of CASA responsible for their issuance. D. The City reserves the right to determine what reasonable portion of employee bulletin boards are to be allocated to Association materials. E. If CASA does not abide by these provisions; it will forfeit its right to have materials posted on the City's employee bulletin boards. F. CASA shall not be permitted to post any material that is prohibited by State law or the City Charter. 16.5 Use of City Facilities. The City shall allow CASA to conduct meetings in the City'spublic meeting rooms during non -working hours provided such meetings are scheduled in accordance with regulations governing the use of public meeting rooms at City facilities; provided, however, CASA shall not be permitted to use City facilities to discuss or present any matter that is prohibited by State law or the City Charter. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 66 55C-76 ARTICLE XVII 17.0 DUES DEDUCTION & INDEMNIFICATION 17.1 Dues Deduction. Upon ratification and approval of dues collection by Association membership, the City shall deduct dues, on a regular basis, from the pay of all employees recognized to be represented by CASA, 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 CASA within thirty (30) calendar days following their deduction. Provisions for such dues deduction shall be included in future MOUs should CASA members elect to authorize the deduction. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 67 55C-77 ARTICLE XVIII 18.0 CITY RIGHTS 18.1 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. To determine the existence or nonexistence of facts which are the basis of the Management decision. C. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services. D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. E. To determine methods of financing. F. To determine types of equipment or technology to be used. G. To determine and/or change the facilities, methods, technology, means, and size of the workforce by which the City operations are to be conducted. H. 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. 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. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 68 55C-78 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. K. To establish and modify productivity and performance programs and standards. L. To discharge, suspend, demote, or otherwise discipline employees for proper cause in accordance with the provisions set forth in the City Charter and Santa Ana Municipal Code. M. To determine job classifications and to reclassify employees. N. To hire, transfer, promote and demote employees for non -disciplinary reasons in accordance with this MOU. O. To determine policies, procedures, and standards forselection, training and promotion of employees. To establish employee performance standards including but not limited to quality and quantity standards and to require compliance therewith. Q. To maintain order and efficiency in its facilities and operaf ions. R. 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. S. To take any and all necessary action to carry out the mission of the City in emergencies. 18.2 Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, wheneverthe 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 CASA regarding the impact of the contemplated exercise of such rights priorto exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 69 55C-79 ARTICLE XIX 19.0 STRIKES & WORK STOPPAGES 19.1 Prohibited Conduct. A. Any employee of the City covered by this MOU who engages in any strike, sickout, or other partial or total stoppage of work shall be subject to suspension, demotion or dismissal by the appointing authority without right of appeal to the Personnel Board in accordance with City Charter Section 1014. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 70 55C-80 ARTICLE XX 20.0 LAYOFFS 20.1 It is the hope of the City not to separate any employee(s) from employment because of a reduction in the workforce orwork week during the term of this MOU. However, circumstances arising during this MOU may require such separation(s). In that event, the City shall notify CASA in writing of the layoff at least 30 days prior to the occurrence of the layoff of the employee and, if requested by CASA, schedule a meeting to discuss the same. Only the written notice is required to occur 30 days before the proposed layoff. This provision in not intended to be a waiver of any other rights the parties may have under this MOU. 20.2 If it is decided to contract out work currently being performed by employees of this bargaining unit and it is projected that no employee covered by this MOU is to be laid off, receive a reduction in hours worked, or receive a loss in pay due to such contracting out, the City shall provide CASA reasonable notice of the decision to contract out, shall meet with CASA upon CASA's request over the impact of the decision to contract out and shall consider reasonable alternatives provided by CASA. 20.3 If the City determines to contemporaneously replace employees covered by this MOU with contract workers to perform the some work under similar circumstances, it shall expeditiously notify CASA of its intentions. Upon request by CASA, the City shall schedule meetings with CASA leadership to discuss this objective and give CASA the opportunity to present information before any final decision. The City and Association leadership agree to commence meeting when practicable for a period not to exceed forty-five days, unless mutually agreed to meet longer. At the end of the agreed upon time and if the parties have not achieved satisfactory resolution, the issues shall be resolved according to the City's Employer -Employee Relations Resolution (Resolution No. 81-75 — Exhibit B of this MOU). 20.4 Notwithstanding Section 20.2 and/or Section 20.3 hereof, if any bargaining unit member is laid off as a result of a decision by the City to contract out work, the City shall make a reasonable effort to cause the affected employee(s) to become employed by the company or entity with which the City contracted for the applicable services. 20.5 The principles of seniority (length of service) shall govern layoffs as described herein, except in the event that more than one employee has the same CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 71 55C-81 seniority date, in which case performance also shall be considered. The City's determination of performance shall not be arbitrary or capricious in nature. Any dispute over the application of the principles outlined in this Article XX shall be subject to the grievance procedure. A. Classification seniority is defined as length of service in the classification, and shall begin on the first date worked by the employee in that classification. Whenever a position within a classification is to be eliminated, resulting in the layoff of an employee, seniority shall govern the order of layoff. The employee with the lowest seniority in the affected classification shall be laid off first. In lieu of layoff, an employee may elect to work in a lower classification, in which he or she has served, providing that a vacancy exists and the classification is within the same job family/career ladder. In that event, the employee's length of service in the next lower classification shall be added to his or her length of service in the affected classification, and the 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. C. The reemployment list shall be valid for one year from the date of its establishment. Reemployment shall be in reverse order of layoffs. The Joint Labor Management Team. as outlined in Article XXI shall determine Job Family/Career Ladder for purposes of layoff. See Article XXI, Section 21.3, Joint Labor Management Teams. 20.6 A bargaining unit employee who is laid off from full time City employment pursuant to this Article, may be granted a temporary appointment to a vacant position in any classification for which there is no eligible list and for which the employee meets the minimum qualifications established for the classification and possesses the requisite knowledge, skills and abilities to satisfactorily perform the work of the classification. Such temporary appointment shall be terminated upon the establishment of a new eligible list for the classification or on the one hundred eightieth (I Both) day following the initial day of such temporary appointment, whichever occurs first. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 72 55C-82 ARTICLE XXI 21.0 MISCELLANEOUS PROVISIONS 21.1 The City agrees to distribute Association membership pamphlets to bargaining unit employees at the new employee orientation sessions conducted by the City. 21.2 Catastrophic Leave Donation. In order to assist employees otherwise granted leave of absence out pay by the City Manager because of a catastrophic, non -industrial medical condition or injury, the City and Association agree to implement a Catastrophic Leave Donation Program. Nothing herein shall be construed to alter City policies and procedures as provided in the Charter or ordinances of the City of Santa Ana or other provisions of this MOU with regard to granting unpaid leaves of absence. The Catastrophic Leave benefit will be provided for non -industrial injury or sickness only. The leave shall cover the uncompensated time prior to the employee's becoming eligible for Long Term Disability (L.T.D.) benefits. Any remaining Catastrophic Leave benefit will be used to supplement L.T.D. benefit payments to ensure an employee continues to receive his or her full salary continuation between both benefits. A. Guidelines. It shall be understood that all donations under this procedure are voluntary and subject to taxation for the recipient. Employees may donate vacation or compensatory time or one in lieu holiday to the eligible employee. In no event shall sick leave be donated. 2. Employees shall be provided a two -week period to submit donations. Donations received after this two -week period shall not be processed. The two -week period for each case shall be designated by the Department Head or his or her designee as provided herein below. 3. All donations must be made in two (2) hour increments and a maximum of eight (8) hours per donor, except in lieu holidays must be for eight (8) hours. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASAI MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 73 55C-83 4, Any authorization of donations not made in accordance with the procedures outlined in Section C, Subparagraph 2 below, will not be processed. 5. All donations shall be irrevocable. 6. In the event fhe 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, Section 11.1. B. Eliaibilif . Regular, full-time employees shall be eligible for Catastrophic Leave Donations if the following criteria are met: When it is reasonably foreseeable that all accrued time on the books, such as sick leave, compensatory time and vacation, will be exhausted and the employee's illness will continue past the time when the employee will be on paid status. 2. The employee's Department Head, or his or her 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. Upon receipt of a valid request for donations from an eligible employee, the Department Head or his or her 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. Employees wishing to donate time to an eligible employee must sign his or her authorization of the transfer of such donated time and provide: a. His or her name, department name, and employee number; CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU: JANUARYI, 2019 THROUGH JUNE 30,2022 Page 74 55C-84 b. The number of hours of compensatory or vacation time of the donation within the limitations of Section A, subparagraph 3 above; C. The name, department and employee number of the recipient; and d. A statement indicating that the donor understands such donation of time is irrevocable. 3. At the close of the donation period, the department shall verify that each donating employee has accrued vacation and/or compensatory 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. 21.3 Joint Labor Management Teams. The City and CASA agree to form Joint Labor Management Teams for the purpose of exploring issues of mutual concern. Each team shall be comprised of an equal number of labor and management employees and shall be chaired by the Executive Director of Human Resources, or his or her designee. In no case shall the activity of a team create a delay or hindrance to the ongoing operation of the City. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 75 55C-85 ARTICLE XXII 22.0 SOLE & ENTIRE AGREEMENT 22.1 It is understood and agreed that the parties to this MOU are subject to all current and future applicable Federal and California laws, the City of Santa Ana Charter and Municipal Code, as well as the City's Employer -Employee Relations Resolution number 81-75 (Exhibit C). 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 or written, express 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. The City shall provide employees covered by this MOU a copy of this MOU and its attachments, including a section containing the Employer -Employee Relations Resolution of the City of Santa Ana. 22.2 Notwithstanding the foregoing, there exists within the City personnel rules and regulations and departmental rules and regulations. These rules and regulations shall be continued to the extent they do not contravene specific provisions of this MOU. Such rules and regulations may, from time to time, be changed by the City. If these changes affect wages, hours, and/.or other terms and conditions of employment, the City shall meet and confer with CASA; provided, further, however, no provision of the rules and regulations shall be changed to contravene specific provisions of this MOU. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 76 55C-86 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 theywill 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, and irrespective of whetheror 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. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 77 55C-87 ARTICLE XXIV 24.0 EMERGENCY WAIVER PROVISION 24.1 In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this MOU orthe Personnel Rules or Resolutions of the City, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergency. After the emergency is declared over, this MOU will be reinstated immediately. CASA shall have the right to meet and conferwith the City regarding the impact on employees of the suspension of the provisions in the MOU during the course of the emergency. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 78 55C-88 ARTICLE XXV 25.0 SEPARABILITY PROVISION 25.1 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 replace the invalidated benefits with benefits of comparable value. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 79 55C-89 ARTICLE XXVI 26.0 TERM OF MOU 26.1 The term of this MOU shall be from January 1, 2019 to June 30, 2022. 26.2 If this MOU is not replaced by anew mutually -agreed upon MOU between the City of Santa Ana and CASA before June 30, 2022, then it is agreed that all provisions of this MOU shall remain in effect until mutual agreement is reached on a new MOU. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 80 55C-90 ARTICLE XXVII 27.0 RATIFICATION & EXECUTION 27.1 The City and CASA have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge the City Council to adopt a new wage and salary resolution which will provide for the changes contained in the joint recommendations. The City and CASA acknowledge that this MOU shall not be in full force and effect until ratified by the membership of CASA and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this MOU is hereby executed by the authorized representatives of the City and CASA and entered into this 20th day of August, 2019. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: Mayor Dated: By: City Manager Dated: Executive Director, Human Resources ATTEST: Clerk of the Council APPROVED AS TO FORM: M City Attorney CONFIDENTIAL ASSOCIATION OF SANTA ANA(CASA) MOU: JANUARY], 2019 THROUGH JUNE 30,2022 Page 81 55C-91 This MOU 2019-2022 has been ratified by the membership of the Confidential Association of Santa Ana (CASA). CASA: Dated: Dated: By: Orange County Employees Association Chief Negotiator By: CASA President CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 82 55C-92 Exhibit A Full-time Classifications Administrative Secretary (UC) Budget Aide (UC) Budget Analyst (UC) Council Services Secretary (LIC) Executive Assistant (UC) Executive Secretary to City Attorney (UC) Executive Secretary to the Police Chief (UC) Financial Analyst (UC) Human Resources Administrative Assistant (UC) Human Resources Analyst (UC) Human Resources Executive Secretary (UC) Human Resources Secretary (UC) Human Resources Specialist (UC) Human Resources Systems Analyst (UC) Human Resources Technician (LIC) Legal Office Assistant (LIC) Legal Secretary (LIC) Litigation Assistant (UC) Management Aide (UC) Management Analyst (UC) Management Assistant (Exempt) (UC) Paralegal (UC) Payroll Systems Analyst (UC) Payroll Technician (UC) Police Human Resources Specialist (UC) Risk Management Analyst (UC) Risk Management Assistant (LIC) Risk Management Technician (UC) Senior Human Resources Specialist (UC) Senior Human Resources Technician (UC) Senior Legal Management Assistant (Exempt) (UC) Senior Legal Office Assistant (UC) Senior Legal Secretary (UC) Senior Management Assistant (Exempt) (UC) Senior Paralegal (Exempt) (LIC) Senior Payroll Technician (UC) Training Coordinator (UC) CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU; JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 83 55C-93 Part-time Civil Service Classifications Human Resources Technician-PTCS (UC) CONFIDENTIAL ASSOCIATION OF SANTA ANA ICASAI MOU: JANUARY 1, 2019 THROUGH JUNE 30,2022 Page 84 55C-94 Exhibit I3 RESOLUTION NO. 81-75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA RELATING TO EMPLOYER -EMPLOYEE RELATIONS IN THE PUBLIC SERVICE OF THE CITY OF SANTA ANA WHEREAS, the Council of the City of Santa Ana declares that it is the public policy of the City to maintain and enhance its administration of employer -employee relations and to protect the public by assuring at all times the orderly and uninterrupted operations and services of City government; and WHEREAS, the City of Santa Ana desires to establish uniform and orderly methods of communication between the City and its employees, including provisions for (a) recognizing the rights of employees to join organizations of their own choosing for the purpose of representation on matters affecting employee relations or to represent themselves individually in dealing with the City; and (b) establishing equitable and uniform rules and procedures to provide for the orderly and systematic presentation, consideration and resolution of employer -employee relations matters; and WHEREAS, the City of Santa Ana has met and conferred in good faith with representatives of the Santa Ana City Employees' Association; Santa Ana Police Benevolent Association; Santa Ana Firemen's Benevolent Association; and the American Federation of State, County and Municipal Employees, AFL-CIO, which are the only employee organizations known to the City to have among their members employees of the City, concerning the rules and regulations for the administration of employer -employee relations set forth herein; and NOW, THEREFORE, the City Council of the City of Santa Ana does hereby resolve as follows: Section l: Title of Resolution This Resolution shall be known as the "Employer -Employee Relations Resolution of the City of Santa Ana". Section 2: Definitions As used in this Resolution, the following terms shall have the meanings indicated: APPROPRIATE UNIT - means a unit of employee classifications or positions established pursuant to Section 11 of this Resolution. CITY - means the City of Santa Ana, a municipal corporation, and where appropriate herein, "City" refers to the City Council or any duly authorized management employee as herein defined. DAY - means calendar day unless expressly stated otherwise. EMPLOYEE - means any person regularly employed by the City on a full time basis except those persons elected by popular vote. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASAI MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 85 55C-95 EXHIBIT B (Continued) EMPLOYEE, CONFIDENTIAL- means on employee who is assigned to perform work directly involved in the development, preparation or presentation of management positions with respect to employer - employee relations. EMPLOYEE, MANAGEMENT- means any employee having responsibility forformulating, administering or managing the implementation of City policies or programs, including but not limited to, department and assistant department heads, division heads, and professional administrative staff employees employed to render advice and assistance pertaining to the conduct of legal, fiscal, budgetary, personnel management and employer -employee relations affairs of the City. EMPLOYEE, PROFESSIONAL - means a classification of employees engaged in work (a) predominantly intellectual and varied in character as opposed to routine mental, manual, mechanical or physical work; (b) involving the constant exercise of discretion and judgment in its performance; and (c) requiring knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study in an institution of higher learning, as distinguished from a general academic education, or from an apprenticeship or from training in the performance of routine, mental, manual or physical processes. EMPLOYEE, SUPERVISORY - means any employee, regardless of job description or title, having authority, in the interest of the employer, to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward, or discipline other employees, or the responsibility to assign work to and direct them, or to evaluate or review their grievances, or effectively to recommend such actions, if in connection with any of the foregoing, the exercise of such responsibility is not of merely routine or clerical nature, but requires the use of independent judgment. EMPLOYEE ORGANIZATION - means any lawful organization which includes employees of the City and which has as one of its primary purposes representing such employees in their employment relations with the City; provided, however, that said organization has no restrictions on membership based on race, color, creed, sex or national origin. EMPLOYEE RELATIONS OFFICER - means the City's principal representative in all matters of employer - employee relations designated pursuant to Section 3 hereof, or his duly authorized representative. EMPLOYER -EMPLOYEE RELATIONS - means the relationship between the City and its employees and their employee organization, or when used in a general sense, the relationship between City management and individual employees or employee organizations. GRIEVANCE - means a dispute, claimed by an employee, group of employees or a recognized employee organization concerning the meaning, application, or enforcement of any of the provisions of the City's Employer -Employee Relations Policy or of a memorandum of understanding; and for which specific hearing or appeal procedure is not otherwise provided, or is not specifically withheld, by civil service rule, ordinance, resolution, charter provision, or memorandum of understanding. CONFIDENTIAL ASSOCIATION OF SANTA ANA jCASAI MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 86 55C-96 EXHIBIT B (Continued) IMPASSE - means that the representatives of the City and a Recognized Employee Organization have reached a point in their meeting and conferring in good faith where their differences concerning matters on which they are required to meet and confer, remain so substantial that further meeting and conferring would not be likely to result in an agreement. MEDIATION OR CONCILIATION -means the efforts of an impartial third person or persons, functioning as Intermediaries, to assist the parties in reaching a voluntary resolution to an impasse, through interpretation, suggestion and advice. Mediation and conciliation are interchangeable terms. MEET AND CONFER IN GOOD FAITH - (sometimes referred to herein as "meet and confer" or "meeting and conferring") - means the performance by duly authorized City representatives and duly authorized representatives of a recognized employee organization of their mutual obligation personally to meet and confer in good faith promptly upon the request of eitherporty and continue for a reasonable period of time in order to exchange freely information, opinions and proposals, and to endeavor to reach agreement on matters within the scope of representation prior to the adoption by the City of its final budget for the ensuing year. This does not require either party to agree to a proposal or to make a concession. MEMORANDUM OF UNDERSTANDING - means a written memorandum of the agreement between the City and a recognized employee organization reached through meeting and conferring. PEACE OFFICER - means an employee of the Santa Ana Police Department whose principal duties consist of active law enforcement and who is designated as a "peace officer" as that term is defined in Section 830, California Penal Code, except that, for purposes of this Resolution only, "peace officer" does not mean a park patrolman, security guard or a member of the fire department, whether the latter be serving as a member of an arson investigating unit, as a deputy or assistant state fire marshal, or in any capacity wherein the member would have the status of peace officer for purposes other than that of this Resolution. RECOGNIZED EMPLOYEE ORGANIZATION - means an employee organization which has been granted formal recognition by the Employee Relations Officer as the employee organization which has the right to meet and confer in good faith as the majority representative of all members of an appropriate representation unit pursuant to Section 11 hereof, except those employees in such unit who have exercised their right not join an employee organization and who choose to represent themselves individually with the City, or has been designated through a secret ballot election as the exclusive representative of the employees in an appropriate representation unit pursuant to Section 11 of this Resolution. SCOPE OF REPRESENTATION - means those matters relating to employment conditions and employer - employee relations including, but not limited to, wages, hours, and other terms and conditions of employment except, however, that the scope of representation shall not include consideration of the merits, necessity, or organization of any service or activity provided by law or executive order. Section 3: Designation of the Citv's Employee Relations Officer The City Council hereby designates the City Manager as the Employee Relations Officer who shall be the City's principal representative on all matters of employer -employee relations, with authority CONFIDENTIAL ASSOCIATION OF SANTA ANA ICASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 87 55C-97 EXHIBIT B (Continued) to meet and confer in good faith on matters within the scope of representation, and to administer all provisions of this Resolution and the employee relations rule and procedures adopted pursuant thereto. The Employee Relations Officer is authorized to delegate his duties and responsibilities. Section 4: Meet and Confer in Good Faith - Scope City representatives and representatives of formally recognized employee organizations having exclusive representation rights, have the mutual obligation personally to meet and confer in good faith in order to exchange freely information, opinions and proposals and to endeavor to reach agreement on matters within the scope of representation prior to the adoption by the City of its final budget for the ensuring year. The City shall not be required to meet and confer in good faith on a subject preempted by Federal or State law or by the City Charter. Section 5: Notice The Citywill give reasonable written notice to each recognized employee organization affected by any ordinance, rule, resolution, or regulation relating to matters within the scope of representation proposed to be adopted by the City, and each such organization shall be given the opportunity to meet and confer with the Employee Relations Officer prior to such adoption. In cases of emergency when the City determines that an ordinance, rule, resolution, or regulation relating to matters within the scope of representation must be adopted immediately without prior notice or meeting with recognized employee organization, the Employee Relations Officer shall provide such notice and opportunity to meet at the earliest practicable time following the adoption of such ordinance, rule, resolution or regulation. Section 6: Petition for Recognition An employee organization that seeks to be formally acknowledged as the Recognized Employee Organization representing the employees in an appropriate unit shall file a petition with the Employee Relations Officer containing the following information and documentation: Name and address of the employee organization. Names and titles of its officers. Names and titles of employee organization representatives who are authorized to speak on behalf of the organization. A statement that the employee organization has, as one of its primary purposes, representing the employees in their employment relations with the City. A statement whether the employee organization is a chapter or local of, or affiliated directly or indirectly in any mannerwith, a regional orstate, or national or international organization, and, if so, the name and address of each such regional, state or international organization. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 88 55C-98 Certified copies of the employee organization's constitution and bylaws, including all amendments thereof. A designation of those persons, not exceeding three in number, and their addresses, to whom sent by first class or certified United States mail will be deemed sufficient notice on the employee organization. A statement that the employee organization is cognizant of the provisions of Section 3509 of the Meyer-Milias-Brown Act. A statement that the employee organization has no restriction on membership based on race, color, creed, sex, or national origin. A description of the composition of the unit or units claimed to be appropriate, including the job classifications of employees and the number of member employees therein, as well as a statement of reasons why the unit or units is or are considered to be appropriate. A statement that the employee organization has in its possession written proof, dated by the signer Within six (6) months of the date upon which the petition is filed, to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the City. Such written proof shall be made in such language and form as the Employee Relations Officer shall prescribe and shall be submitted for confirmation to the Employee Relations Officerto a mutually agreed upon disinterested third party. Notwithstanding the above, the Employee Relations Officer, in his sole discretion, may accept employee dues deduction authorization, using the payroll register for the period immediately preceding the date of filing of a Petition of Recognition, as proof of employee support for the petitioning organization, except thatdues deduction authorizations for more than one employee organization for the account of any one employee shall not be considered as proof of employee support for any employee organization, unless it can otherwise be shown that the dues deduction for the petitioning organization is the only one which provides full membership rights and privileges, including the right to vote. A request that the Employee Relations Officer recognize the petitioning employee organization as the Recognized Employee Organization representing the employees in the unit(s) claimed to be appropriate for the purpose of meeting and conferring in good faith on all matters within the scope of representation. The Petition, including all accompanying documents, shall be declared to be true, correct and complete, under penalty of perjury, by the duly authorized officer(s) of the employee organization 1. executing it. The Employee Relations Officer may require additional information as required by this Resolution to be included in the Petition. The Employee Relations Officer shall give prompt written notice of the filing of a Petition to any recognized employee organization affected thereby. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA( MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 89 55C-99 EXHIBIT B (Continued) Section 7: City Response to Recognition Petition Upon receipt of the Petition, the Employee Relations Officer shall within ten (10) days determine whether: There has been compliance with the requirements of the Recognition Petition; and The proposed representation unit is an appropriate unit in accordance with Section 11 of this Resolution. If an affirmative determination is made by the Employee Relations Officer on the foregoing two matters, he shall within ten (10) days after making said determination, inform the petitioning employee organization, shall give written notice of such request for recognition to the employees In the unit and shall take no action on said request for thirty (30) days thereafter. If either of the foregoing matters are not affirmatively determined, the Employee Relations Officer shall meet and discuss the matter with such petitioning employee organization, and, if such determination thereafter remains unchanged, shall inform that organization of the reasons therefore in writing. The petitioning employee organization may appeal such determination in accordance with Section 13 of this Resolution. Section 8: Open Period forfing Challenging Petition(s) Within thirty (30) days of the date written notice was given to affected employees that a valid Recognition Petition(s) for an appropriate unit has been filed, any other employee organization may file a competing request to be formally acknowledged as the recognized employee organization of the employees in the same or in an overlapping unit (one which corresponds with respect to some but not all the Classifications or positions set forth in the Recognition Petition being challenged), by filing a petition(s) evidencing proof of employee support in the unit claimed to be appropriate of at least thirty (30) percent and otherwise in the same form and manner as set forth in Section 6 of this Resolution. If such challenging petition(s) seeks establishment of an overlapping unit, the Employee Relations Officer shall call for a hearing on such overlapping petitions for the purpose of ascertaining the more appropriate unit, at which time the petitioning employee organizations shall be heard. Thereafter, the Employee Relations Officer shall determine the appropriate unit or units in accordance with the standards in Section 11 of this Resolution. The petitioning employee organizations shall have fifteen (15) days from the date notice of such unit determination Is communicated to them by the Employee Relations Officer to amend their petitions to conform to such determination or to appeal such determination pursuant to Section 13 of this Resolution. Section 9: Election Procedure The Employee Relations Officer shall arrange fora secret ballot election to be conducted by a party agreed to by the Employee Relations Officer and the concerned employee organization(s) in accordance with its rules and procedures subject to the provisions of this Resolution. All employee organizations who have duly submitted petitions which have been determined to be in CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 90 55C-100 EXHIBIT B (Continued) conformance with this Resolution shall be included on the ballot. The choice of "no organization" shall also be included on the ballot. Employees entitled to vote in such election shall be those persons employed full time in regular, permanent positions within the designated appropriate unit who were employed during the pay period immediately prior to the date which ended at least fifteen (15) days before the date the election commences, including those who did notwork during such period because of illness, vacation or other authorized leaves of absence, and who are employed by the City in the same unit on the date of election. An employee organization shall be formally acknowledged as the Recognized Employee Organization forthe designated appropriate unit following an election or runoff election if it received a numerical majority of all valid votes cast in the election. If an election involving three or more choices, where none of the choices receives a majority of the valid votes cast, a runoff election shall be conducted between the two choices receiving the largest number of valid votes cast (that Is, either between two employee organizations, or one employee organization and no representation); the rules governing an initial election being applicable to a runoff election, except that the runoff election shall be held within fifteen (15) days following the certification of the initial election results. There shall be no more than one valid election under this Resolution pursuant to any petition in a 12- month period affecting the some unit. In the event that the parties are unable to agree on a third party to conduct an election, the election shall be conducted by the California State Conciliation Service. Costs of conducting elections shall be borne in equal shares by the City and by each employee organization appearing on the ballot. In cases where a Memorandum of Understanding between the City and an employee organization is in effect on the effective date of this Resolution, it shall be presumed for the duration of the Memorandum of Understanding that the unit set forth in the Memorandum of Understanding is appropriate and that the employee organization is the majority representative of the employees covered therein. Unless a petition is filed pursuant to Section 12 below, it shall be presumed that when said Memorandum of Understanding terminates the employee organization shall continue to be a majority representative of employees covered by said Memorandum of Understanding for the purposes of meeting and conferring regarding matters within the scope of representation; provided, however, the employee organization files with the City the information required by Section 6(a), 1 through 13 of this Resolution. Nothing contained herein shall preclude an employee organization from filing a petition for recognition pursuant to Section 6 or Section 10 of this Resolution at the expiration of Memoranda of Understanding which expire on June 30, 1981. Section 10: Procedure for Decertification of Recoanized Employee Organization A Decertification Petition alleging that the incumbent Recognized Employee Organization no longer represents a majority of the employees in an established appropriate unit may be filed with the Employee Relations Officer only during the month of January of any year following the first full year of recognition or during the thirty (30) day period commencing one hundred eighty (180) days prior to the termination date of a Memorandum of Understanding then having been in effect less than three (3) years, whichever occurs later. A Decertification Petition may be fled by employees or their representative, or on employee organization, and shall contain the following information and documentation declared by the duly authorized signatory under penalty of perjury to be true, correct and complete: CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU; JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 91 55C-101 EXHIBIT B (Continued) The name, address and telephone number of the petitioner and a designated representative authorized to receive notices of requests for further information. The name of the established appropriate unit and of the incumbent Recognized Employee Organization sought to be decertified as the representative of that unit. An allegation that the incumbent Recognized Employee Organization no longer represents a majority of the employees in the appropriate unit, and any otherrelevant and material facts relating thereto. Proof of employee support that a majority of the employees in the established appropriate unit no longer desires to be represented bythe incumbent Recognized Employee Organization. Such proof shall be submitted forconfirmation to the Employee Relations Off icerorto a mutually agreed upon disinterested third party. The Employee Relations Officer can only accept those petitions which 1) request decertification of the current formally recognized employee organization and 2) do not request to carve out another unit from the already established appropriate unit. An employee organization may file a Petition under this Section in the form of a Recognition Petition that conforms to the requirements of Section 6 of this Resolution in satisfaction of the Decertification Petition requirements hereunder. The Employee Relations Officer shall initially determine whether the Decertification Petition or Recognition Petition, if any, have been filed in compliance with the applicable provisions of this Resolution. If his determination is in the negative, he shall offer to consult thereof with the representative(s) of such petitioning employees or employee organization, and if such determination thereafter remains unchanged, shall return such Petition(s) to the employees or employee organization with a statement of the reasons therefore in writing. The petitioning employees cremployee organization may appeal such determination in accordance with Section 13 of this Resolution. If the determination of the Employee Relations Officer is in the affirmative, or if his negative determination is reversed on appeal, he shall give written notice of such Decertification of Recognition Petition to the incumbent Recognized Employee Organization and to unit employees. The Employee Relations Officer shall thereupon arrange for a secret ballot election to be held on or about fifteen (15) days after such notice to determine the wishes of unit employees as to the question of decertification, and if an accompanying Recognition Petitionwas duly filed, and, in the event decertification of the incumbent Recognized Employee Organization is voted, the question of representation. Such election shall be conducted in conformance with Section 9 of this Resolution. The cost of any election proceeding under the provisions of this Section shall be borne entirely by the employee organization(s) challenging the incumbent recognized employee organization. An employee organization which displaces another employee organization as a formally recognized employee organization following an election conducted pursuant to this Section shall CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 92 55C-102 EXHIBIT B (Continued) assume any existing Memorandum of Understanding then in effect as a condition of recognition and said Memorandum of Understanding shall remain in full force and effect for the balance of the term thereof. Section 11: Poky and Standards for Determination of Appropriate Units The basic policy objectives in determining the appropriateness of units shall be the effect of a proposed unit on 1) the efficient operations of the City and its compatibility with the primary responsibility of the City and its employees to effectively and economically serve the public and 2) providing employees with effective representation based on recognized community of interest considerations. These policy objectives require that the appropriate unit shall be the broadest feasible grouping of positions that share an identifiable community of interest. Factors to be considered shall be: Similarity of the general kinds of work performed, types of qualifications required, and the general working conditions. History of representation in the City and similar employment; except however, that no unit shall be deemed to be an appropriate unit solely on the basis of the extent to which employees in the proposed unit have organized. The effect of the proposed unit on efficient operations of the City and the compatibility of the unit with the responsibility of the City and its employees to serve the public. The effect on the administration of employer -employee relations created by the fragmentation of classifications and proliferation of units. Effect on the classification structure and impact on the stability of the employee relationship of dividing a single or related classification among two or more units. Notwithstanding the foregoing, management employees shall only be included in a unit consisting solely of management employees and confidential employees shall be included in a unit consisting solely of confidential employees. When the City establishes new classifications or positions, or modifies the job content of an existing classification or position, the Employee Relations Officer shall, after notice to and consultation with all affected employee organizations, determine which, if any, representation unit shall include such new or modified c(assification(s) or position(s). Section 12: Procedure for Modification of Established Appropriate Units Requests by employee organizations for modifications of established appropriate units may be considered by the Employee Relations Officer only during the period specified in Section 10 of this Resolution. Such requests shall be submitted in the form of a Recognition Petition, and, in addition to the requirements set forth in Section 6 of this Resolution, shall contain a complete statement of all relevant facts and citations in support of the proposed modified unit in terms of the policies and CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 93 55C-103 EXHIBIT B (Continued) standards set forth in Section 11 hereof. The Employee Relations Officersholl process such petitions as other Recognition petitions under this Resolution. The Employee Relations Officer may on his motion propose, during the period specified in Section 10 of this Resolution, that an established unit be modified. The Employee Relations Officer shall give written notice of the proposed modification(s) to any affected employee organization and shall hold a meeting concerning the proposed modification(s), at which time all affected employee organizations shall be heard. Thereafter the Employee Relations Officer shall determine the composition of the appropriate unit or units in accordance with Section 11 of this Resolution, and shall give written notice of such determination to the affected employee organizations. The Employee Relations Officer=s determination may be appealed as provided in Section 13 of this Resolution. If a unit is modified pursuant to the motion of the Employee Relations Officer hereunder, employee organizations may thereafter file Recognition Petitions seeking to become the Recognized Employee Organization for such new appropriate unit or units pursuant to Section 6 hereof. Section 13. Appeals An employee organization aggrieved by an appropriate unit determination of the Employee Relations Officer under this Resolution may, within ten (10) days of notice thereof, appeal such determination to the City Council for final decision. An employee organization aggrieved by a determination of the Employee Relations Officer that a Recognition Petition (Section 6); Challenging Petition (Section 8) or Decertification Petition (Section 10) or employees aggrieved by a determination of the Employee Relations Officer that a Decertification Petition (Section 10) has not been filed in compliance with the applicable provisions of this Resolution, may, within fifteen (15) days of notice of such determination, appeal the determination to the City Council for final decision. Appeal to the City Council shall be filed in writing with the City Clerk, and a copy thereof served on the Employee Relations Officer. The City Council shall commence to consider the matter within thirty (30) days of the filing of the appeal, and shall render a final and binding decision regarding the resolution of the disputed issue(s) raised by the appeal after each party involved has been given an opportunity, during a public meeting, to present written and oral arguments in support of their respective positions and, if the City Council so desires, after any future investigation or review of the matter as it may deem appropriate. The City Council, may, in its discretion, refer the dispute to a third party hearing process for the purpose of seeking an advisory determination prior to making its final decision regarding the resolution of the dispute. Section 14: Submission of Current Information by Recognized Employee Organizations All changes in the information filed with the City by a Recognized Employee Organization under Items 1 through 13 of its Recognition Petition under Section 6 of this Resolution shall be submitted in writing to the Employee Relations Officer within fifteen (15) days of such change. Section 15: Payroll Deductions on Behalf of Employee Organizations CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 94 55C-104 EXHIBIT B [Continued) Upon formal acknowledgment by the City of a Recognized Employee Organization under this Resolution, only such Recognized Employee Organization may be provided payroll deductions of membership dues and insurance premiums for plans sponsored by such organization upon the written authorization of employees in the unit represented by Recognized Employee Organization on forms provided therefore by the City. The providing of such service to the Recognized Employee Organization by the City shall be contingent upon and in accordance with the provisions of Memorandum of Understanding and/or applicable administrative procedures. Section 16: Emplovee Oraanization Activities - Use of City Resources Access to City work locations and the use of City paid time, facilities, equipment and other resources by employee organizations and those representing them shall be authorized only to the extent provided for in Memorandum of Understanding and/or administrative procedures; shall be limited to activities pertaining directly to the employer -employee relationship and not such internal employee organization business as soliciting membership, campaigning for office, and organization meetings and elections; and shall not interfere with the efficiency, safety and security of City operations. Section 17: Administrative Rules and Procedures The Employee Relations Officer is hereby authorized to establish such rules and procedures as appropriate to implement and administer the provisions of this Resolution after consultation with affected employee organizations. Section 18: Initiation of Impasse Procedures If the meet and confer process has reached impasse as defined in this Resolution, either party may initiate the impasse procedures by filing with the other party a written request for an impasse meeting, together with a statement of its position on all disputed issues. An impasse meeting shall then be scheduled promptly by the Employee Relations Officer. The purpose of such impasse meeting shall be: To identify and specify in writing the issue or issues that remain in dispute; To review the position of the parties in a final effort to resolve such disputed issue or issues; and If the dispute is not resolved, to discuss arrangement for the utilization of the impasse procedures provided herein. Section 19: Im osse Procedures Impasse procedures are as follows: If the parties so agree, the issue or issues at impasse shall be submitted directly to the City Council for determination. CONFIDENTIAL ASSOCIATION OF SANTA ANA ICASAI MOU: JANUARY I, 2019 THROUGH JUNE 30,2022 Page 95 55C-105 EXHIBIT B (Continued) If they do not agree within seven (7) days following the conclusion of the impasse meeting set forth in Section 18 above, either party may submit the impasse to mediation. All mediation proceeding shall be private and the mediatorshall make no public recommendation, nor take any public position at any time concerning the issues. If the parties are unable to agree on a mediatorafter a reasonable period of time, they shall select the mediator from a list of three names to be provided by the State Conciliation Service, or if that agency for any reason shall fail to provide such list, by the American Arbitration Association. Upon receipt of such list, the parties shall alternately strike names from the list until a single name remains who shall become the mediator. The priority of striking names shall alternate from one party to the other each time impasse procedures are invoked by the same parties. The employee organization or the City shall commence this process in an order determined by lot striking the first name from such list of names in any initial mediation. The cost of the mediator, if any, shall be shared equally by both parties If the parties have failed to resolve all their disputes through mediation within fifteen (15) days after the mediator commenced meetings with the parties, the parties may agree to submit the issues in dispute directly to the City Council. In that event, the City Council shall finally determine the issues after conducting a public hearing thereon and after such further investigation of the relevant facts as it may deem appropriate. If the parties have exhausted the mediation process, the matter shall be submitted to the City Council for resolution. Section 20: Construction This Resolution shall be administered and construed as follows: Nothing in this Resolution shall be construed to deny to any person, employee, organization, the City, or any authorized officer, body or other representative of the City, the rights, powers and authority granted by Federal or State law or City Charter provisions. Nothing in this Resolution shall be construed as making the provisions of California Labor Code Section 923 applicable to City employees or employee organizations, or of giving employees or employee organizations the right to participate in, support, cooperate or encourage, directly or indirectly, any strike, sickout, other total or partial stoppage or slowdown of work or any other interference with the conduct of the City's operations. Nothing contained in this Resolution shall abrogate any written Memorandum of Understanding between any employee organization and the City in effect on the effective date of this Resolution. All such agreements shall continue in effect for the duration of the term specified therein unless modified or rescinded by mutual agreement of the parties thereto. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY I, 2019 THROUGH JUNE 30, 2022 Page 96 55C-106 EXHIBIT B (Continued) Whenever written notice is required by this Resolution, such notice shall deem to have been received on the day immediately following the day on which it was mailed (excluding Saturdays, Sundays, and holidays on which the offices of the City are closed) provided the same was sent by first class or certified mail, postage prepaid to the City at 20 Civic Center Plaza, Santa Ana, California 92701, or to any employee organization at its last address furnished to the City. Section 21: Severability In any section, subsection, sentence, clause or phrase of this Resolution, or the application of such portion to any person or circumstance, shall be held invalid by a decision of any court of competent jurisdiction, the remainder of this Resolution, or the application of such portion to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. The City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any or more sections, subsections, sentences, clauses or phrases be declared invalid. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana: that this Resolution shall be operative from and after May 18, 1981. ADOPTED this 18}h day of May, 1981, by the following vote: AYES: Acosta, Bricken, Griset, Luxembourger, Markel, McGuigan, Senat CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 97 55C-107 EXHIBIT C 9/80 HARDSHIP CLAIM FORM Name: Division/Section: Position: Work Telephone Number: Supervisor Name and Telephone: Work Hours: Proposed Work Hou Basis for Hardship Claim: options explored by employee to resolve the hardship: Employee's proposed solution: Supervisor's needs/concerns/comments: Hardship Committee Recommendation to Department Head: CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JANUARY 1, 2019 THROUGH JUNE 30, 2022 Page 98 55C-108 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: ADOPT A RESOLUTION REINSTATING THE LIBRARY DEPARTMENT (STRATEGIC PLAN NO. 7,6) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a resolution reinstating the Library Department. DISCUSSION Historically, the City has maintained a Library Department for many years. During the recent economic recession, the Library Department moved under the Parks, Recreation and Community Services Agency as the Library Division. The Santa Ana Public Library is an essential part of the community and provides residents access to free library cards allowing patrons to borrow books, DVDs, CDs, Hotspots, use computers, access eBooks, databases, eMagazines, and receive one-on-one tech and research assistance. The City's current library system includes a main branch, a learning center, and services at three community centers. In addition, a variety of programs and services are offered to the community that include story times, youth, tween, teen and adult programs, workshops and special events. The demand for additional library services has increased over time including the commitment and resources to operate the library. Since June 4, 2019, an interim Library Director has provided leadership over the library division and is evaluating current operations of the library system. Many positive changes are in process and others have been identified for the new Library Director to implement including but not limited to increasing operating hours at Newhope Branch Library from 27 to 48 weekly and adding a Librarian to be in charge of the facility, bookmobile/tech mobile, organization of the history room at the main library to properly store items, and updating spaces within the main and New Hope Branch Libraries. 55D-1 Adopt Resolution Reinstating the Library Department August 20, 2019 Page 2 In July 2019, the Santa Ana City Council approved the creation of the Library Services Director classification as part of the Fiscal Year 2019-2020 Budget process. The Library Services Director will oversee all operations at the Main Library and Newhope Branch Library including Adult Services, Youth Services, and Technology and Support Services to ensure an integrated program of library services. In order for the Library to operate independently from the Parks, Recreation and Community Services Agency, the reinstatement of the Library Department with a Library Services Director is needed as the Executive Director or Department Head of the Agency. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #7 Team Santa Ana, Objective #5 (Create a culture of innovation and efficiency within the organization), Strategy E (Identify best practices and opportunities for process improvement and automation across City departments in order to provide effective and efficient delivery of City services to the community). FISCAL IMPACT As part of the fiscal year 2019-2020 city-wide budget process, the City Council approved a General Fund budget for the Library in the amount of $5,414,880 (Accounting Unit 01111150), which included 25 funded full-time employees and one unfunded full-time employee. Additionally, there is one full-time funded employee included in the Strategic Plan Fund (Accounting Unit 05213018) to support the E-Library program. Therefore, the accounting structure for the Library to become a stand-alone department has already been established with the adoption of the fiscal year 2019- 2020 city-wide budget. rlf�_WU_J& Steven V. Mam Executive Director Human Resources Department Exhibit: 1. Resolution APPROVED AS TO FUNDS AND ACCOUNTS Kathryn Ddvns syA Executive Director Finance and Management Services Agency 55D-2 LAR 8.20.19 RESOLUTION NO.2019-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REINSTATING THE LIBRARY DEPARTMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Historically, the City of Santa Ana maintained a Library Department. In February 2009, the Library Director retired. At the time, the economy was experiencing a recession and the decision was made to combine the Library Department with the Parks, Recreation and Community Services Agency. B. Numerous Southern California cities including Orange, Long Beach, Newport Beach, Mission Viejo, San Diego, Riverside, Fullerton and Huntington Beach operate Library Departments. C. There is a significant commitment of time and resources that are necessary to run effective community services and recreation programs, as well as, to operate a multitude of City Parks and Community Centers. In addition, the City Council has expressed a desire to devote additional resources to the development of Library services for the residents of the City of Santa Ana. Therefore, it has been determined that, the City should reinstate the Library Department, separate and apart from the Parks, Recreation and Community Services Agency. D. In July 2019, the Santa Ana City Council created a Library Services Director (EM) classification as part of the Fiscal Year 2019-2020 Annual Budget process. E. The Santa Ana City Council has determined that the needs of the residents of the City of Santa Ana will be best served by the reinstatement of the Library Department with the Library Services Director as the Executive Director or Department Head. Section 2: The Santa Ana City Council hereby reinstates the Library Department with the Library Services Director as the Executive Director. #5864v2 Resolution No. 2019-XXX Page 1 of 2 55D-3 Section 3: This Resolution is operative from and after the date upon which it is adopted. ADOPTED this 20th day of August, 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Laura A. Rossini Senior Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original Resolution adopted by the City Council of the City of Santa Ana on August 20, 2019 Date: Clerk of the Council City of Santa Ana Resolution 2019-XXX Page 2 of 2 55D-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: ADOPT A RESOLUTION ACCEPTING A DONATION OF POLICE K-9 ANIMALS, EQUIPMENT AND SUPPLIES FROM JOHANNA SCILLIERI FOR THE SANTA ANA POLICE DEPARTMENT K-9 PROGRAM (STRATEGIC PLAN GOAL NO. 1, C) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution accepting the donation of Police K-9 animals, equipment and supplies from Johanna Scillieri for the Santa Ana Police Department's K-9 Program. DISCUSSION The Santa Ana Police Department's K-9 Program provides a valuable less lethal resource to enhance officer safety and reduce liability exposure. From time to time, community members contribute funding and supplies to enhance the program. Recently, Police Volunteer Johanna Scillieri has donated K-9 "Kaylee", K-9 training obstacles, and K-9 trading cards to the Santa Ana Police Department's K-9 Program. Ms. Scillieri's most recent donation K-9 "Mojo" will replace the soon to be retired K-9 "Puskas", allowing the Police Department to maintain the number of Police K-9's at six, not counting the Bloodhound. The total value of K-9 animals, equipment and supplies donated by Johanna is $38,897, as detailed below. K-9 Kaylee $11,025 K-9 Mojo $12,122 K-9 Training Obstacles $14,924 K-9 Trading Cards $826 Total $38,897 55E-1 Resolution Accepting a Police K-9 for the Santa Ana Police Department August 20, 2019 Page 2 In addition to her generous support of the Santa Ana Police Department's K-9 Program, Johanna volunteers up to 30 hours per week in support of the Investigations Division. Ms. Scillieri has also expressed interest in contributing resources towards a natural plant beautification project for the main entrance to the PD Administration Building. The Santa Ana Police Department appreciates the partnership that exists between the Department and its volunteers, and recommends approval of the resolution. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #1 Community Safety - Objective #1 (Modernize the Community Policing philosophy to improve customer service, crime prevention and traffic/pedestrian/bicycle safety), Strategy C (Deliver crime prevention/community policing programs based on the community policing plan). FISCAL IMPACT There is no fiscal impact associated with this action. David in hief of Police Santa Ana Police Department Exhibit: 1. Resolution 55E-2 TB 8.20.2019 RESOLUTION NO.2019-xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACCEPTING THE DONATION OF POLICE K-9 ANIMALS, EQUIPMENT AND SUPPLIES FROM JOHANNA SCILLIERI FOR THE SANTA ANA POLICE DEPARTMENT K-9 PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. WHEREAS, the Santa Ana Police Department's K-9 program provides support for our officers in the field; and B. WHEREAS, the Police K-9 program currently maintains six (6) K-9's; and C. WHEREAS, the Police K-9 program is anticipating the retirement of K-9 Puskas; and D. WHEREAS, community members contribute funding and supplies to enhance the K-9 program, Police Volunteer Johanna Scillied, whom volunteers up to 30 hours per week in support of the Investigations Division, and has a passion for animals, and the Santa Ana Police Department's K-9 program in particular, Ms. Scilleri donated to the City two (2) Police K-9's to the Santa Ana Police Department; and E. WHEREAS, the Police K-9's identified as Kaylee and Mojo, will be trained and certified under the City's current program with Adlerhorst International, LLC, and will both serve in the City's K-9 program; and F. WHEREAS, the total value to purchase each K-9, and the inclusion of the equipment and supplies donated by Ms. Scilleri is approximately $38,897. Section 2. The City hereby accepts the donation of K-9 Officers Kaylee and Mojo, to its ranks, and the equipment and supplies for each K-9. Section 3. If any surcharge or fee, section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this #6277v3 Resolution No. 2019-xx Page 1 of 2 55E-3 jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed and adopted this Resolution, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of August, 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: _ PBkgosia Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: #6277v2 Clerk of the Council City of Santa Ana Resolution No. 2019-xx Page 2 of 2 55E-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ADOPT A RESOLUTION AMENDING ❑ As Recommended THE FEE FOR RELEASE OF IMPOUNDED El El ElOOrrdinance on 18' Reading VEHICLES FOR UNLICENSED OR ❑ Ordinance on 2"d Reading SUSPENDED/REVOKED DRIVER'S ❑ Implementing Resolution LICENSES ❑ Set Public Hearing For (STRATEGIC PLAN NO. 4, 2A) CONTINUED TO FILE NUMBER CITY ANAGER RECOMMENDED ACTION Adopt a resolution amending the fee for Release of Impounded Vehicles (Unlicensed or Suspended/Revoked Driver's Licenses) for Fiscal Year 2019-2020. DISCUSSION The Miscellaneous Fee Schedule is comprised of various charges associated with various City services. On an annual basis, fees and related services associated with the Miscellaneous Fee Resolution, are reviewed and adjusted to reflect the City's costs in delivering the services. Unless otherwise noted, the Fees are increased 3.92%. This percentage increase reflects the change in the Consumers Price Index (CPI) — Urban, All Services Components, for the Los Angeles — Riverside — Orange County area in a twelve-month period ending December 31, 2018. At their June 4, 2019 regulary scheduled meeting, the City Council adopted a Resolution establishing a Uniform Schedule of Miscellaneous Fees for Fiscal Year 2019-2020. Upon subsequent review of the fee schedule, it was noted that the following fee was inadvertently deleted prior to Council approval. Fee I FY 2018-2019 FY 2019-2020 Release of Impounded Vehicles (Unlicensed or $218.74 Suspended/Revoked Driver's Licenses)$210.49 This Fee is intended to cover staff costs associated with impounding a vehicle, conducting the post storage hearing, and completing the release paperwork. The deletion of the Fee was a clerical error and approval of the proposed Resolution is recommended to re-establish the fee in the FY 2019-2020 Misellaneous Fee Schedule. The Police Department has confirmed the actual cost of providing the service does not exceed the proposed fees for FY 2019-2020. 55F-1 Miscellaneous Fee Resolution August 20, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #2, (provide a reliable five- year financial forecast that ensures financial stability in accordance with the strategic plan), Strategy A (adopt a budget that is in alignment with the financial forecast and strategic plan). FISCAL IMPACT The proposed fee will generate approximately an annual amount of $45,800 for the City, which has been included in the revenue estimates for FY 2019-2020 in the General Fund (no. 01114002 53400) and the Traffic Offender Program Fund (no. 02014002 57490). APPROVED AS TO FUNDS AND ACCOUNTS: alentin Kathryn Do ns, CPA Chief of Police Executive Director UYLk o) Santa Ana Police Department Finance and Management Services Agency Exhibit: 1. Miscellaneous Fee Resolution 55F-2 TB 8.20.2019 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MODIFYING THE UNIFORM SCHEDULE OF MISCELLANEOUS FEES AMENDING THE FEE FOR RELEASE OF IMPOUNDED VEHICLES FOR UNLICENSED OR SUSPENDED/REVOKED DRIVER'S LICENSES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby, finds, determines and declares as follows: A. Each year, for the convenience of the public, the City Council gathers in a single document a comprehensive listing of fees and service charges imposed by the City upon those persons seeking services of value from the City. B. This document is known as the "Miscellaneous Fee Schedule' for Fiscal Year 2019-2020 and is on file at the Clerk of the Council office. C. As part of approving the Miscellaneous Fee Schedule for Fiscal Year 2019- 2020, the various agencies of the City analyzed the cost to administer the various programs, activities and applications for which the City imposes fees or service charges. D. The City Council adopted the City's Miscellaneous Fee Resolution on June 4, 2019 (Resolution 2019-038). During a recent review of the adopted fees, staff discovered that a certain fee published within the Miscellaneous Fee Schedule for FY 19- 20 was inadvertently deleted and did not provide the Fees for Release of Impounded Vehicles (Unlicensed or Suspended/Revoked Driver's License) previously established by the City. E. The adopted FY 18-19 Miscellaneous Fee Schedule provided an established Fee of $210.49. The proposed amount recommended by staff for FY 19-20 is $218.74. F. The Council finds, determines and declares that such corrected charges, fees or service charges do not exceed the City's estimated reasonable cost to provide the pertinent service, process the specified application or administer the certain program for which the charge, fee or service charge is imposed. G. Accordingly, the City Council has determined to make the following corrections to the Miscellaneous Fee Schedule for Fiscal Year 2019-20. Section 2: The Miscellaneous Fee Schedule for Fiscal Year 2019-2020 shall be amended to include a Fee in the amount of $218.74 for the Release of Impounded Vehicles #6466v3 Resolution No. 2019-xx Page 1 of 3 55F-3 TB 8.20.2019 (Unlicensed or Suspended/Revoked Driver's License). Upon approval, staff will apply the new corrected fees on a going -forward basis for Release of Impounded Vehicles (Unlicensed or Suspended/Revoked Driver's License) Section 3: To the extent that any fee or service charge established pursuant to City Resolution No. 2019-038 is inconsistent with the fees or service charges established pursuant to this Resolution, such inconsistencies in Resolution No. 2019-038 are hereby repealed. Section 4: If any charge, fee, service charge, section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed and adopted this Resolution, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Tamara Bogosian Assistant City Attorney #6466v3 Miguel A. Pulido Mayor Resolution No. 2019-xx Page 2 of 3 55F-4 TB 8.20.2019 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-xx to be the original resolution adopted by the City Council of the City of Santa Ana on , 2019. Date: #6466v3 Clerk of the Council City of Santa Ana Resolution No. 2019-xx Page 3 of 3 55F-5 55F-6 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: ADOPT REIMBURSEMENT AGREEMENT RESOLUTION FOR LAND USE APPLICATIONS AND PROJECTS (STRATEGIC PLAN NO. 3, 5A) CITY MA'NAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt the proposed Resolution authorizing the City Manager to execute deposit/reimbursement agreements with applicants and developers who propose land use and project applications, requiring the City to engage third -party experts who are necessary to assist with CEQA, traffic, legal or economic analysis in conjunction with processing applications through various stages. DISCUSSION The City of Santa Ana's Planning and Building Department processes numerous land use applications requiring the City to engage subject -matter experts in a variety of areas of expertise. City staff often requires an advance deposit from the applicant to cover City expenses incurred in engaging various experts who assist with CEQA, traffic, legal or economic analysis in conjunction with processing applications through various stages. The City may also require an applicant, through the imposition of conditions of approval, to defend and indemnify the City in the event of a challenge to a project approved by the City Planning Commission or City Council. A formal deposit/reimbursement agreement is an enforceable legal instrument the City can use to ensure it is reimbursed for expenses rather than having the burden of the expenses fall upon the City and its General Fund. Costs and expenses to be reimbursed generally include, but are not limited to: (i) consulting services (if necessary) for the processing of any environmental review; (ii) reimbursement of extraordinary staff time and any administrative costs (i.e. drafting applications and staff reports, attendance at meetings, pre -planning work related to Project, etc.) related to the planning, review and processing of the project where such exceed the costs reflected in ordinary application fees; (iii) costs for legal services provided by staff or outside counsel; and (iv) other costs associated with a particular project. 55G-1 Adopt Resolution Concerning Reimbursement Agreements for Land Use Applications August 20, 2019 Page 2 In addition, on occasion the City's approval of a project is challenged in court. Often the challenge is in the form of a writ of mandate. The City is the named defendant in these cases and the developer is what is known as a real party in interest (RPI). As the defendant the City must engage legal counsel to represent the City and it is the City that incurs costs. A reimbursement agreement will ensure the City receives timely deposits and is reimbursed for the costs resulting from approval of the application. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #5 (Leverage private investment that results in tax base expansion and job creation citywide), Strategy A (Identify and market underutilized properties for new development that will create new jobs and expand the City's tax base). FISCAL IMPACT There is no immediate fiscal impact to the City in adopting the proposed Resolution, in the future certain applicants will be required to post a deposit with the City to cover consultant, legal and planning costs associated with development projects where the City anticipates incurring significant expenses. Minh Thai Executive Director Planning and Building Agency APPROVED AS TO FUNDS AND ACCOUNTS: 6� h Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Resolution Reimbursement Agreements 2. Reimbursement Agreement Template 55G-2 EXHIBIT 7 RESOLUTION NO.2019-xx RESOLUTION OF THE CITY OF SANTA ANA AUTHORIZING THE CITY MANAGER TO EXECUTE DEPOSIT/REIMBURSEMENT AGREEMENTS FOR PROFESSIONAL SERVICES RELATED TO DEVELOPMENT PROJECTS WHEREAS, from time -to -time Applicants propose the development of real property in the City (the Project) and the processing of the applications require the City to retain the necessary expertise to prepare required environmental documentation, traffic analysis, or legal analysis, as an example: and WHEREAS, as a condition to the City's processing of the Project review process, the Applicant has agreed to reimburse the City for the Consultants' reasonable costs and expenses related to the City's review process for the Project in the manner set forth in a Reimbursement Agreement; and WHEREAS, the Applicant's reimbursement of Consultant costs and expenses under this ensure that the City has the necessary resources to diligently and efficiently process the Project; and WHEREAS, the City has entered into Deposit/Reimbursement Agreements in the past and has fully recovered expenses. NOW, THEREFORE, the City Council of the City ofSanta Ana does hereby resolve as follows: SECTION 1. The City Manager is hereby authorized to execute Deposit/Reimbursement Agreements in substantially the same form as those entered into in the past on behalf of the City, subject to any clarifying or conforming changes approved by the City Attorney. SECTION 2. The Clerk of the Council shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions. SECTION 3. This Resolution shall take effect immediately upon its adoption. SECTION 4. The Mayor shall sign this Resolution, and the City Clerk shall attest and certify to the passage and adoption thereof. PASSED, APPROVED, AND ADOPTED this _ day of 2019. Miguel A. Pulido Mayor 55G-3 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: C ' Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-xx to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Clerk of the Council City of Santa Ana 55G-4 REIMBURSEMENT AND INDEMNIFICATION AGREEMENT BETWEEN THE CITY OF SANTA ANA AND FOR THE PAYMENT OF FEES AND COSTS RELATED TO CONTRACT ENVIRONMENTAL, LEGAL AND ENGINEERING SERVICES FOR THE DEVELOPMENT LOCATED AT IN SANTA ANA RELATED TO ENVIRONMENTAL DOCUMENTATION This Agreement ("Agreement") is entered into as of , by and between 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"), and , ("Developer'), who agree as follows: 1. Recitals. This Agreement is made with reference to the following facts and circumstances: Developer is seeking entitlement to certain real property consisting of a located at , in the City of Santa Ana ("Property") (APN # B. Developer has filed applications to develop the Property with a project and street improvements (the "Project"), including approximately units, and square feet of commercial space and parking spaces. The discretionary applications may consist of a General Plan Amendment (GPA), Amendment Application (AA), Zoning Ordinance Amendment (ZOA), Variances, Site Plan Review, Conditional Use Permit, and Vesting Tentative Map. C. City does not have personnel with sufficient expertise to prepare or review the Environmental Document and related studies, reports and analyses for the project. In order for City to process the Project, City is in need of contracting with an environmental consultant. In addition to the environmental consultant, processing the Project will also require work to be performed by the City Attorney's Office and the City Engineer. The work to be performed by such persons and firms in processing the Project is collectively referred to herein as the "Services." D. City believes it is in the public interest for Developer to pay for such Services. E. Developer desires to move forward with the processing of its Project subject to the reimbursement obligations set forth herein. 2. Agreement to Pay for Services. Developer agrees to pay for all professional costs and expenses related to the Services as provided for in this Agreement, even though the actual amounts may be 1 55G-5 different than the proposal for the environmental consultant as listed in Section 3, and the amount of costs for the City Attorney's Office and City Engineer have not been estimated. 3. Environmental Consultant City Attorney, and Contract Engineer Services. A. For the purpose of conducting the environmental analysis, the Environmental Consultant and their subcontractors will prepare technical analysis of: Air Quality and Greenhouse Gas Emissions, Traffic Impact Analysis, Phase 1 Site Assessment, Native American Coordination, Noise Study, and any other studies deemed necessary by the Environmental Consultant to properly conduct the environmental analysis. B. For the purpose of conducting the environmental analysis, the Developer has submitted a Conceptual Site Plan, Landscape Plan, Grading Plan, and Building Elevations/Renderings, Preliminary Water Quality Management Plan and Hydrology Report/Study ( ) Sewer/Water Study ( ). C. For the purpose of providing environmental and technical services, the City has received a Proposal to Provide Environmental and Technical Services from in the estimated amount of ($ .00) Dollars. The Scope of Services is attached herewith as Exhibit A, and the Cost Estimate is attached herewith as Exhibit B. Both Exhibits are incorporated herein by this reference. A 10% administrative overhead will be charged to developer for oversight of the Agreement. The City shall make the determination as to what type of Environmental Document is required after reviewing studies that are required for the Project. D. The Planning and Building Agency, City Attorney's Office, and the City Engineer will provide Services in connection with this Project, on an hourly basis. The City Attorney's Office hourly billing rate for reimbursable services is Dollars ($.00) per hour, and the City Engineer's hourly rate is Dollars ($.00) per hour. City may also utilize additional external consultants, including, but not limited to, attorneys and engineers, as necessary to complete the review. Said consultants will be billed at their agreed upon rates with the City. E. Developer has deposited with City the amount of Dollars ($ .00) to provide initial funding for the Services to be provided by Planning and Building Agency, City Attorney's Office and City Engineer. This amount shall be applied to pay invoices received from the Planning and Building Agency, City Attorney's Office and City Engineer for their Services. F. City shall provide Developer with a monthly statement of draws against the deposit described in Section &E., accompanied by invoices, time records, or other reasonable back-up therefor. 55G-6 G. It is understood and agreed that if any consultant begins work on the Project prior to execution and delivery of this Agreement by all parties, the fees incurred in connection with the Project prior to such execution and delivery will be subject to reimbursement pursuant to this Agreement upon execution and delivery of this Agreement by all parties and the deposit of funds by Developer pursuant to Section 3.C. 4. Deposit. A. At any time that City determines in good faith that the sums then held in any deposits made pursuant to Sections 3.E above are inadequate to pay for the projected Services to be paid from such deposit over the succeeding two (2) month period, Developer shall replenish the relevant deposit with the amount requested by City in writing, which amount shall not exceed Twenty -Five Thousand Dollars ($25,000) for any particular replenishment, within ten (10) Business Days of such written request. B. Should any deposit not be replenished in the time and amount specified as set forth in Section 6.A., City may direct that all Services to be paid from the deposit applicable to such Services be halted until such time as such applicable deposit is replenished. C. All deposits will be placed in a non -interest bearing trust account. Developer understands and agrees that City will not pay interest to Developer on the deposits, and Developer will not seek interest payments from City. D. No later than forty (40) days after the earliest to occur of: (1) final action is taken by City on the Project, (2) Developer notifies the City in writing of its withdrawal of the Project applications, or (3) the Project is otherwise abandoned, City will provide Developer with a final accounting of costs and expenses, accompanied by invoices, time records or other reasonable back-up therefor, which accounting the Developer agrees will be conclusive, in the absence of manifest error. Should the total reimbursement amount required for any Services be less than the total amount deposited by Developer with respect to such Services, City will refund any remaining deposit amount relating to such Services to Developer within forty-five (45) days after determining the final reimbursement amount for such Services. E. In the event Developer fails or refuses to make any of the deposits required herein, Developer shall be liable to City for the amount of all fees charged to the City for Services actually provided which exceed the amount of the deposit paid by Developer for such Services, and City shall have the right to pursue a breach of contract action, or any other pertinent legal action available to the City, against the Developer. Further, the prevailing party in any dispute and/or litigation necessary to enforce or interpret this Agreement shall be entitled to seek and collect its costs and reasonable attorney's fees from the other party. 5. Other Costs. Developer acknowledges that the cost of the Services does not include all application, permitting, inspection, or other fees which may be charged by City in connection with the Project. To the extent the fees ordinarily charged by City for 55G-7 projects similar to the Project relate to costs that are not reimbursed under this Agreement, such fees shall be separately paid in accordance with the relevant City fee schedule. 6. No Guarantee of Approval. Developer acknowledges that its payments and deposits described herein do not mean that the City will approve the Project nor that City staff will make a recommendation in favor of the Project. Even if the Project is not approved, Developer shall remain liable for all costs for Services actually provided concerning the Project. 7. Independence of Consultants. A. During the term of this Agreement, Developer will not directly or indirectly enter or propose to enter into any financial or business relationship with any of City's consultants that are working on the Project. B. Developer hereby acknowledges and agrees as follows: i. City has sole discretion to select which of its employees or independent contractors are assigned to work on Developer's application; ii. City has sole discretion to determine which persons City will hire as consultants to work on Developer's application. iii. As between City and Developer, City has sole discretion to direct the work and evaluate the performance of the consultants whom the City hires to work on Developer's application. City retains the right to terminate or replace at any time any consultant who is assigned to work on Developer's application. iv. City has sole discretion to determine the amount of compensation paid to consultants hired by City to work on Developer's application. V. City, not Developer, shall pay consultants hired or assigned by City to work on Developer's application from a City account under the exclusive control of City, which is to be funded by Developer as set forth in this Agreement. vi. Except for those disclosures required by law, including, without limitation, the Public Records Act, all conversations, notes, memoranda, correspondence and other forms of communication by and between the City and its consultants shall be, to the extent permissible by law, privileged and confidential and not subject to disclosure to the Developer. vii. Developer shall have no claim to, nor shall Developer assert any right in any reports, correspondence, plans, maps, drawings, news releases or any and all other documents or work product produced by the consultants. C. City and Developer hereby acknowledge and agree that processing of Developers application is not contingent on the hiring of any specific consultant. 55G-8 D. City and Developer hereby acknowledge and agree that Developer's duty to reimburse City is not contingent upon the approval or disapproval of the proposed Project, or upon the result of any action of the City. E. Neither Developer nor its officers, employees or agents, shall communicate with , or any of the City's consultants, during the term of this Agreement without prior approval of the City, unless such communication is initiated by or any of the City's consultants, to obtain information about the Project which is needed to prepare the Environmental Document. 8. Term and Termination. Absent a formal withdrawal of the Project application(s), Developer shall not be entitled to terminate this agreement. If Developer does formally withdraw the Project application(s), Developer shall remain liable for all costs for the Services incurred through the date of termination. The term of this Agreement shall commence upon the execution and delivery of this Agreement by all parties hereto and shall terminate on the earliest to occur of: (a) the City taking final action on the Project; and (b) Developer formally withdrawing its Project applications. The provisions of Sections 6 through 23 (inclusive) shall survive termination of this Agreement. 9. Developer Default. A. Should Developer fail to perform any of its obligations under this Agreement, then City may, at its option, pursue any or all of the remedies available to it under this Agreement, at law or in equity. B. Without limiting any other remedy which may be available to it, if Developer fails to perform any. of its obligations under this Agreement,. City may cease performing its obligations under this Agreement. C. If any amounts remain owing to City for Services actually performed prior to termination of this Agreement, City may bring an action to recover all costs and expenses incurred by the City in completing such Services, together with interest thereon from the date incurred at the rate of ten percent (10%) per annum, or at the maximum legal rate, whichever is greater. D. City will not take the Project forward for consideration of discretionary actions unless and until all fees are paid. If any amounts remain owing to City pursuant to this Agreement for Services actually performed prior to termination of this Agreement, City may withhold consideration of discretionary actions, permits and/or certificates of occupancy until all such amounts are paid. 10. Indemnification. Developer further agrees that to the fullest extent permitted by law, the Developer shall defend, indemnify, protect, and hold harmless, the City of Santa Ana and its constituent public agency members, officers, employees, volunteers, attorneys and agents (in the aggregate, the "City Indemnitees") from any and all liability, demand, claim, action, or proceeding, whether actual, alleged, or threatened, including by way of example but not exclusion, proceedings of an s 55G-9 administrative or regulatory nature and proceedings that may be associated with alternative dispute resolution (an "Indemnified Claim") brought by third parties against any City Indemnities (including any advisory agency of the City), to attack, set aside, void, annul, or challenge the validity of any approvals granted for the Project, the Environmental Document concerning the Project, or seeking damages which may arise from any approvals granted for the Project, the Environmental Document concerning the Project, or this Agreement, other than liabilities, demands, claims, actions or proceedings caused by the sole active negligence or willful misconduct of the City or any City Indemnitee. In any defense of any City Indemnitees, City shall have the absolute right to unilaterally select the legal counsel for such City Indemnitees (with the intention of using one law firm to defend all City Indemnitees unless conflicts of interest preclude such joint representation), and any experts or consultants deemed necessary by City in an exercise of City's sole discretion. Developer shall reimburse City for one hundred percent (100%) of the City's actual fees and costs in connection with the Litigation ("Fees and Costs"). Such Fees and Costs shall include, but not be limited to, all reasonable court costs and attorneys' fees, including other City staff time, consultants or experts, spent in regard to defense of an Indemnified Claim. City shall promptly render notice to the Developer of the existence of the Indemnified Claim (a "Notice") and Developer shall defend the City Indemnitees at Developer's expense. City shall cooperate fully with Developer in the defense of any Indemnified Claim. In any Notice, City shall estimate the cost of its defense, which shall include, but not be limited to, actual attorney fees, court costs, expert witnesses and consultant fees, and all other costs that may arise out of, or be incurred by City in the defense of an Indemnified Claim. Upon such Notice, Developer shall promptly deposit funds equal to the first three (3) months of the Estimated Cost with the City and shall make additional deposits as and when required to fund the further costs of defending the City Indemnitees for such Indemnified Claim. Failure of Developer to deposit such funds shall be deemed a material breach of this Agreement. City shall refund, without interest, any unused portion of the deposits once litigation is finally concluded or a dispute is resolved regarding an Indemnified Claim. 11. Compliance with Law. Developer will, at its sole cost and expense, comply with all of the requirements of all federal, state, and local laws now in force, or which may hereafter be in force, pertaining to this Agreement. 12. Waiver of Breach. Any express or implied waiver of a breach of any term of this Agreement will not constitute a waiver of any further breach of the same or any other term of this Agreement. 13. Notices. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this Agreement or by law to be served on or given to either party to this Agreement by the other party shall be in writing and will be deemed received on: (i) the day of delivery if delivered by hand, e-mail (with 55G-10 confirmation of receiving party) and fax (both email and fax required for notices delivered by email or fax), or overnight courier service, during regular business hours; or (ii) on the third business day following deposit, with postage prepaid, in the United States Postal Service and addressed to the contracting parties. Name, address, telephone numbers, and e-mail addresses of the Parties are as follows: City: City of Santa Ana Attention: Community Development Executive Director 20 Civic Center Plaza (M-25) Santa Ana, CA 92701 Telephone: (714) 647-5360 Fax: (714) 647-6549 E-mail: SMendoza asanta-ana.orq A Copy to: Sonia Carvalho City Attorney, City of Santa Ana 20 Civic Center Plaza (M-29) Santa Ana, CA 92701 Telephone: (714) 647-5203 Fax: (714) 647-6549 E-mail: SCarvalho(a,santa-ana.org Developer: Either party may change its address for the purpose of this Section by giving written notice of the change to the other party. 14. Interpretation. This Agreement is deemed to have been prepared by all of the parties hereto, and any uncertainty or ambiguity herein shall not be interpreted against the drafter, but rather, if such ambiguity or uncertainty exists, shall be interpreted according to the applicable rules of interpretation of contracts under the law of the State of California. 15. Business Day. For purposes of this Agreement, 'Business Day' means any day other than a Saturday, Sunday, a federal holiday, or a day on which City Hall for the City of Santa Ana is closed for the conduct of regular business. 16. Successors. This Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective parties hereto. However, this Agreement shall not be assigned by Developer in whole or in part without the prior written consent of City. 55G-11 17. Governing Law. This Agreement has been made in and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this Agreement will be in Orange County. 18. Attorneys' Fees. If a Party hereto files any action or brings any action or proceeding against another Party arising out of this Agreement, then the prevailing Party shall be entitled to recover as an element of its costs of suit, and not as damages, its reasonable attorneys' fees as fixed by the court, in such action or proceeding or in a separate action or proceeding brought to recover such attorneys' fees. For the purposes hereof the words "reasonable attorneys' fees" mean and include, in the case of the City, salaries (or fees) and expenses of the lawyers employed by the City (allocated on an hourly basis) who may provide legal services in connection with the representation of the City in any such matter. 19. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of this Agreement will remain in effect, unimpaired by the holding. 20. Integration. This instrument constitutes the sole agreement between City and Developer respecting the above matters, and correctly sets forth the obligations of City and Developer. Any Agreements or representations by City to Developer not expressly set forth in this instrument are void. 21. Construction. The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party, whether or not that party drafted all or a portion hereof. 22. Authority/Modification. Each party represents and warrants that all necessary action has been taken by such party to authorize the undersigned to execute this Agreement on behalf of such party and to engage in the actions of such party described herein. This Agreement may be modified solely by written amendment signed by both City and Developer. City's City Manager, or designee, may execute any such amendment on behalf of City. 23. Counterparts. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument executed on the same date. Signature page follows 55G-12 ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA CARVALHO City (Attorney By: GYM f! LISA STORCK Assistant City Attorney DEVELOPER: Date: CITY OF SANTA ANA KRISTINE RIDGE City Manager RECOMMENDED FOR APPROVAL: MINH THAI, Director Planning and Building Agency M Name Title 55G-13 55G-14 EXHIBIT 2 REIMBURSEMENT AND INDEMNIFICATION AGREEMENT BETWEEN THE CITY OF SANTA ANA AND FOR THE PAYMENT OF FEES AND COSTS RELATED TO CONTRACT ENVIRONMENTAL, LEGAL AND ENGINEERING SERVICES FOR THE DEVELOPMENT LOCATED AT IN SANTA ANA RELATED TO ENVIRONMENTAL DOCUMENTATION This Agreement ("Agreement") is entered into as of , by and between 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'), and , ("Developer"), who agree as follows: 1. Recitals. This Agreement is made with reference to the following facts and circumstances: A. (APN # Developer is seeking entitlement to certain real property consisting of a located at , in the City of Santa Ana ('Property") B. Developer has filed applications to develop the Property with a project and street improvements (the 'Project'), including approximately units, and square feet of commercial space and parking spaces. The discretionary applications may consist of a General Plan Amendment (GPA), Amendment Application (AA), Zoning Ordinance Amendment (ZOA), Variances, Site Plan Review, Conditional Use Permit, and Vesting Tentative Map. C. City does not have personnel with sufficient expertise to prepare or review the Environmental Document and related studies, reports and analyses for the project. In order for City to process the Project, City is in need of contracting with an environmental consultant. In addition to the environmental consultant, processing the Project will also require work to be performed by the City Attorney's Office and the City Engineer. The work to be performed by such persons and firms in processing the Project is collectively referred to herein as the "Services." D. City believes it is in the public interest for Developer to pay for such Services. E. Developer desires to move forward with the processing of its Project subject to the reimbursement obligations set forth herein. 2. Agreement to Pav for Services. Developer agrees to pay for all professional costs and expenses related to the Services as provided for in this Agreement, even though the actual amounts may be 55G-15 different than the proposal for the environmental consultant as listed in Section 3, and the amount of costs for the City Attorney's Office and City Engineer have not been estimated. 3. Environmental Consultant, City Attorney, and Contract Engineer Services. A. For the purpose of conducting the environmental analysis, the Environmental Consultant and their subcontractors will prepare technical analysis of: Air Quality and Greenhouse Gas Emissions, Traffic Impact Analysis, Phase 1 Site Assessment, Native American Coordination, Noise Study, and any other studies deemed necessary by the Environmental Consultant to properly conduct the environmental analysis. B. For the purpose of conducting the environmental analysis, the Developer has submitted a Conceptual Site Plan, Landscape Plan, Grading Plan, and Building Elevations/Renderings, Preliminary Water Quality Management Plan and Hydrology Report/Study ( ) Sewer/Water Study ( ). C. For the purpose of providing environmental and technical services, the City has received a Proposal to Provide Environmental and Technical Services from in the estimated amount of ($ .00) Dollars. The Scope of Services is attached herewith as Exhibit A, and the Cost Estimate is attached herewith as Exhibit B. Both Exhibits are incorporated herein by this reference. A 10% administrative overhead will be charged to developer for oversight of the Agreement. The City shall make the determination as to what type of Environmental Document is required after reviewing studies that are required for the Project. D. The Planning and Building Agency, City Attorney's Office, and the City Engineer will provide Services in connection with this Project, on an hourly basis. The City Attorney's Office hourly billing rate for reimbursable services is Dollars ($_ 00) per hour, and the City Engineer's hourly rate is Dollars ($.00) per hour. City may also utilize additional external consultants, including, but not limited to, attorneys and engineers, as necessary to complete the review. Said consultants will be billed at their agreed upon rates with the City. E. Developer has deposited with City the amount of Dollars ($ .00) to provide initial funding for the Services to be provided by Planning and Building Agency, City Attorney's Office and City Engineer. This amount shall be applied to pay invoices received from the Planning and Building Agency, City Attorney's Office and City Engineer for their Services. F. City shall provide Developer with a monthly statement of draws against the deposit described in Section 3.E., accompanied by invoices, time records, or other reasonable back-up therefor. E 55G-16 G. It is understood and agreed that if any consultant begins work on the Project prior to execution and delivery of this Agreement by all parties, the fees incurred in connection with the Project prior to such execution and delivery will be subject to reimbursement pursuant to this Agreement upon execution and delivery of this Agreement by all parties and the deposit of funds by Developer pursuant to Section 3.C. 4. Deposit. A. At any time that City determines in good faith that the sums then held in any deposits made pursuant to Sections 3.E above are inadequate to pay for the projected Services to be paid from such deposit over the succeeding two (2) month period, Developer shall replenish the relevant deposit with the amount requested by City in writing, which amount shall not exceed Twenty -Five Thousand Dollars ($25,000) for any particular replenishment, within ten (10) Business Days of such written request. B. Should any deposit not be replenished in the time and amount specified as set forth in Section 6.A., City may direct that all Services to be paid from the deposit applicable to such Services be halted until such time as such applicable deposit is replenished. C. All deposits will be placed in a non -interest bearing trust account. Developer understands and agrees that City will not pay interest to Developer on the deposits, and Developer will not seek interest payments from City. D. No later than forty (40) days after the earliest to occur of: (1) final action is taken by City on the Project, (2) Developer notifies the City in writing of its withdrawal of the Project applications, or (3) the Project is otherwise abandoned, City will provide Developer with a final accounting of costs and expenses, accompanied by invoices, time records or other reasonable back-up therefor, which accounting the Developer agrees will be conclusive, in the absence of manifest error. Should the total reimbursement amount required for any Services be less than the total amount deposited by Developer with respect to such Services, City will refund any remaining deposit amount relating to such Services to Developer within forty-five (45) days after determining the final reimbursement amount for such Services. E. In the event Developer fails or refuses to make any of the deposits required herein, Developer shall be liable to City for the amount of all fees charged to the City for Services actually provided which exceed the amount of the deposit paid by Developer for such Services, and City shall have the right to pursue a breach of contract action, or any other pertinent legal action available to the City, against the Developer. Further, the prevailing party in any dispute and/or litigation necessary to enforce or interpret this Agreement shall be entitled to seek and collect its costs and reasonable attorney's fees from the other party. 5. Other Costs. Developer acknowledges that the cost of the Services does not include all application, permitting, inspection, or other fees which may be charged by City in connection with the Project. To the extent the fees ordinarily charged by City for 3 55G-17 projects similar to the Project relate to costs that are not reimbursed under this Agreement, such fees shall be separately paid in accordance with the relevant City fee schedule. 6. No Guarantee of Approval. Developer acknowledges that its payments and deposits described herein do not mean that the City will approve the Project nor that City staff will make a recommendation in favor of the Project. Even if the Project is not approved, Developer shall remain liable for all costs for Services actually provided concerning the Project. 7. Independence of Consultants. A. During the term of this Agreement, Developer will not directly or indirectly enter or propose to enter into any financial or business relationship with any of City's consultants that are working on the Project. B. Developer hereby acknowledges and agrees as follows: i. City has sole discretion to select which of its employees or independent contractors are assigned to work on Developer's application; ii. City has sole discretion to determine which persons City will hire as consultants to work on Developer's application. iii. As between City and Developer, City has sole discretion to direct the work and evaluate the performance of the consultants whom the City hires to work on Developer's application. City retains the right to terminate or replace at any time any consultant who is assigned to work on Developer's application. iv. City has sole discretion to determine the amount of compensation paid to consultants hired by City to work on Developer's application. V. City, not Developer, shall pay consultants hired or assigned by City to work on Developer's application from a City account under the exclusive control of City, which is to be funded by Developer as set forth in this Agreement. vi. Except for those disclosures required by law, including, without limitation, the Public Records Act, all conversations, notes, memoranda, correspondence and other forms of communication by and between the City and its consultants shall be, to the extent permissible by law, privileged and confidential and not subject to disclosure to the Developer. vii. Developer shall have no claim to, nor shall Developer assert any right in any reports, correspondence, plans, maps, drawings, news releases or any and all other documents or work product produced by the consultants. C. City and Developer hereby acknowledge and agree that processing of Developer's application is not contingent on the hiring of any specific consultant. rd 55G-18 D. City and Developer hereby acknowledge and agree that Developer's duty to reimburse City is not contingent upon the approval or disapproval of the proposed Project, or upon the result of any action of the City. E. Neither Developer nor its officers, employees or agents, shall communicate with or any of the City's consultants, during the term of this Agreement without prior approval of the City, unless such communication is initiated by or any of the City's consultants, to obtain information about the Project which is needed to prepare the Environmental Document. 8. Term and Termination. Absent a formal withdrawal of the Project application(s), Developer shall not be entitled to terminate this agreement. If Developer does formally withdraw the Project application(s), Developer shall remain liable for all costs for the Services incurred through the date of termination. The term of this Agreement shall commence upon the execution and delivery of this Agreement by all parties hereto and shall terminate on the earliest to occur of: (a) the City taking final action on the Project; and (b) Developer formally withdrawing its Project applications. The provisions of Sections 6 through 23 (inclusive) shall survive termination of this Agreement. 9. Developer Default. A. Should Developer fail to perform any of its obligations under this Agreement, then City may, at its option, pursue any or all of the remedies available to it under this Agreement, at law or in equity. B. Without limiting any other remedy which may be available to it, if Developer fails to perform any of its obligations under this Agreement, City may cease performing its obligations under this Agreement. C. If any amounts remain owing to City for Services actually performed prior to termination of this Agreement, City may bring an action to recover all costs and expenses incurred by the City in completing such Services, together with interest thereon from the date incurred at the rate of ten percent (10%) per annum, or at the maximum legal rate, whichever is greater. D. City will not take the Project forward for consideration of discretionary actions unless and until all fees are paid. If any amounts remain owing to City pursuant to this Agreement for Services actually performed prior to termination of this Agreement, City may withhold consideration of discretionary actions, permits and/or certificates of occupancy until all such amounts are paid. 10. Indemnification. Developer further agrees that to the fullest extent permitted by law, the Developer shall defend, indemnify, protect, and hold harmless, the City of Santa Ana and its constituent public agency members, officers, employees, volunteers, attorneys and agents (in the aggregate, the "City Indemnitees") from any and all liability, demand, claim, action, or proceeding, whether actual, alleged, or threatened, including by way of example but not exclusion, proceedings of an 5 55G-19 administrative or regulatory nature and proceedings that may be associated with alternative dispute resolution (an "Indemnified Claim") brought by third parties against any City Indemnities (including any advisory agency of the City), to attack, set aside, void, annul, or challenge the validity of any approvals granted for the Project, the Environmental Document concerning the Project, or seeking damages which may arise from any approvals granted for the Project, the Environmental Document concerning the Project, or this Agreement, other than liabilities, demands, claims, actions or proceedings caused by the sole active negligence or willful misconduct of the City or any City Indemnitee. In any defense of any City Indemnitees, City shall have the absolute right to unilaterally select the legal counsel for such City Indemnitees (with the intention of using one law firm to defend all City Indemnitees unless conflicts of interest preclude such joint representation), and any experts or consultants deemed necessary by City in an exercise of City's sole discretion. Developer shall reimburse City for one hundred percent (100%) of the City's actual fees and costs in connection with the Litigation ("Fees and Costs"). Such Fees and Costs shall include, but not be limited to, all reasonable court costs and attorneys' fees, including other City staff time, consultants or experts, spent in regard to defense of an Indemnified Claim. City shall promptly render notice to the Developer of the existence of the Indemnified Claim (a "Notice") and Developer shall defend the City Indemnitees at Developer's expense. City shall cooperate fully with Developer in the defense of any Indemnified Claim. In any Notice, City shall estimate the cost of its defense, which shall include, but not be limited to, actual attorney fees, court costs, expert witnesses and consultant fees, and all other costs that may arise out of, or be incurred by City in the defense of an Indemnified Claim. Upon such Notice, Developer shall promptly deposit funds equal to the first three (3) months of the Estimated Cost with the City and shall make additional deposits as and when required to fund the further costs of defending the City Indemnitees for such Indemnified Claim. Failure of Developer to deposit such funds shall be deemed a material breach of this Agreement. City shall refund, without interest, any unused portion of the deposits once litigation is finally concluded or a dispute is resolved regarding an Indemnified Claim. 11. Compliance with Law. Developer will, at its sole cost and expense, comply with all of the requirements of all federal, state, and local laws now in force, or which may hereafter be in force, pertaining to this Agreement. 12. Waiver of Breach. Any express or implied waiver of a breach of any term of this Agreement will not constitute a waiver of any further breach of the same or any other term of this Agreement. 13. Notices. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this Agreement or by law to be served on or given to either party to this Agreement by the other party shall be in writing and will be deemed received on: (i) the day of delivery if delivered by hand, e-mail (with :A 55G-20 confirmation of receiving party) and fax (both email and fax required for notices delivered by email or fax), or overnight courier service, during regular business hours; or (ii) on the third business day following deposit, with postage prepaid, in the United States Postal Service and addressed to the contracting parties. Name, address, telephone numbers, and e-mail addresses of the Parties are as follows: City: City of Santa Ana Attention: Community Development Executive Director 20 Civic Center Plaza (M-25) Santa Ana, CA 92701 Telephone: (714) 647-5360 Fax: (714) 647-6549 E-mail: SMendoza(cDsanta-ana.org A Copy to: Sonia Carvalho City Attorney, City of Santa Ana 20 Civic Center Plaza (M-29) Santa Ana, CA 92701 Telephone: (714) 647-5203 Fax: (714) 647-6549 E-mail: SCarvalho(c santa-ana.org Developer: f Either party may change its address for the purpose of this Section by giving written notice of the change to the other party. 14. Interpretation. This Agreement is deemed to have been prepared by all of the parties hereto, and any uncertainty or ambiguity herein shall not be interpreted against the drafter, but rather, if such ambiguity or uncertainty exists, shall be interpreted according to the applicable rules of interpretation of contracts under the law of the State of California. 15. Business Day. For purposes of this Agreement, `Business Day" means any day other than a Saturday, Sunday, a federal holiday, or a day on which City Hall for the City of Santa Ana is closed for the conduct of regular business. 16. Successors. This Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective parties hereto. However, this Agreement shall not be assigned by Developer in whole or in part without the prior written consent of City. 55G-21 17. Governing Law. This Agreement has been made in and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this Agreement will be in Orange County. 18. Attorneys' Fees. If a Party hereto files any action or brings any action or proceeding against another Party arising out of this Agreement, then the prevailing Party shall be entitled to recover as an element of its costs of suit, and not as damages, its reasonable attorneys' fees as fixed by the court, in such action or proceeding or in a separate action or proceeding brought to recover such attorneys' fees. For the purposes hereof the words "reasonable attorneys' fees' mean and include, in the case of the City, salaries (or fees) and expenses of the lawyers employed by the City (allocated on an hourly basis) who may provide legal services in connection with the representation of the City in any such matter. 19. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of this Agreement will remain in effect, unimpaired by the holding. 20. Integration. This instrument constitutes the sole agreement between City and Developer respecting the above matters, and correctly sets forth the obligations of City and Developer. Any Agreements or representations by City to Developer not expressly set forth in this instrument are void. 21. Construction. The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party, whether or not that party drafted all or a portion hereof. 22. Authority/Modification. Each party represents and warrants that all necessary action has been taken by such party to authorize the undersigned to execute this Agreement on behalf of such party and to engage in the actions of such party described herein. This Agreement may be modified solely by written amendment signed by both City and Developer. City's City Manager, or designee, may execute any such amendment on behalf of City. 23. Counterparts. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument executed on the same date. Signature page follows 0 55G-22 ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA CARVALHO City Attorney By: LISA STORCK Assistant City Attorney Date: CITY OF SANTA ANA KRISTINE RIDGE City Manager RECOMMENDED FOR APPROVAL: MINH THAI, Executive Director Planning and Building Agency Name Title 55G-23 55G-24 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: AUGUST 20, 2019 TITLE: APPROVED ❑ As Recommended APPROVE A DENSITY BONUS ❑ As Amended AGREEMENT TO ALLOW A 552 UNIT ❑ Ordinance on 1" Reading AFFORDABLE RENTAL PROJECT AT 2110, ❑ Ordinance on Reading [1Re Implementing Resolution 2114, AND 2020 EAST FIRST STREET ❑ Set Public Hearing For (STRATEGIC PLAN NOS. 3, 2; 5, 3) CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute a Density Bonus Agreement with Santa Ana Pacific Associates, and Santa Ana Pacific Associates II, or assigns, for a 55-year term, for the development of a 552-unit affordable rental project at 2110, 2114, and 2020 East First Street, subject to non -substantive changes approved by the City Manager and City Attorney. PLANNING COMMISSION ACTION At a Special Meeting on June 4, 2018, the Planning Commission recommended approval of Density Bonus Agreement No. 2017-02 (Exhibit 1) by City Council as conditioned to allow construction of a 552-unit affordable rental residential community at 2110, 2114, and 2020 East First Street located in the Metro East Mixed Use Overlay District (OZ-1). Planning Commission approved the recommended action by a vote of 4:1 (Bacerra opposed). CITY COUNCIL PRIOR ACTIONS This item was previously continued from the May 7, 2019, May 21, 2019, and June 4, 2019. City Council meetings with direction for the applicant to work with staff and provide additional information on the developer's Parking Management Plan. Following this direction, a Parking Management Plan was prepared and presented to the City Council on July 16, 2019. The City Council discussed the item and voted down a motion to approve a project (2 ayes, 3 noes, 1 abtention) with no substitute motion for denial or continuance, therefore, resulting in no action by the City Council regarding this matter. The matter is now being presented for reconsideration by the City Council. The Applicant has made several refinements to the parking management plan in response to comments received at the meeting. In particular, the plan has been further clarified with an emphasis that the valet transportation service will be provided at no cost to the residents and that all off -site rental spaces are to be negotiated, procured, and coordinated via the property management company and must be located within a 10 minute drive from the site. 60A-1 Density Bonus Agreement for 2110, 2114, and 2020 East First Street August 20, 2019 Page 2 PARKING MANAGEMENT PLAN The Parking Management Plan submitted by the Applicant continues to provide key enforcement and implementation tools for when the development becomes operational, including but not limited to 1) an off -site parking valet service for residents opting to include offsite parking space rentals as part of the lease agreement and a shuttle service to major transit and service hubs during peak demand periods (6-9 am and 3-6 pm) daily, and 2) an on -demand emergency transportation service provided during off-peak hours for residents to get to the offsite parking spaces. Critical to the enforceability of the program, among other enforceable obligations and as part of the agreement with the City, is if overflow of parking from the site is found to occur, the management of the apartment project will cease to lease vacant units or will pay for additional parking spaces off -site. The Parking Management Plan is attached as Exhibit 2. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Objective # 5 (leverage private investment that results in tax base expansion and job creation citywide) and Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Executive Director Community Development Agency Exhibits: 1. Density Bonus Agreement 2. Parking Management Plan MAWMFWIY Minh Thai Executive Director Planning and Building Agency 60A-2 EXHIBIT 1 RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Santa Ana Clerk of the Council 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, California 92702 Attention: Clerk of the Council Free Reeording pursuant to Government Code 27383 DENSITY BONUS HOUSING AGREEMENT This DENSITY BONUS HOUSING AGREEMENT ("Agreement"), made and entered into this 16`s day of April, 2019 ("Effective Date"), by and between the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"), and Santa Ana Pacific Associates, A California Limited Partnership, a California limited partnership, and Santa Ana Pacific Associates II, A California Limited Partnership, a California limited partnership (collectively, "Developer"). City and Developer are sometimes referred to collectively as the "Parties" and individually as a "Party." RECITALS A. Developer is the leasehold owner of certain property located within the City of Santa Ana, County of Orange, State of California, commonly known as 2110, 2114, and 2020 East First Street, Santa Ana, California, and legally described as set forth in Exhibit A attached hereto and incorporated herein by this reference as if set forth in full ("Property"). B. Developer is proposing to develop an affordable rental family -oriented mixed use commercial and residential community consisting of 9,998 square feet of leasable commercial area and five -hundred and fifty-two (552) residential units on the Property as more particularly set forth in Density Bonus Application No. 2017-02 and Site Plan Review No. 2017-09 ("Project"). C. Santa Ana Municipal Code sections 41-1600, et seq. ("City Density Bonus for Affordable Housing"), and California Government Code sections 65915, et seq. ("State Density Bonus Law"), set forth a process to provide increased residential densities to property owners who guarantee that a portion of their residential development will be available to low income, very low- income, or senior (also known as "qualified") households. These regulations are intended to materially assist the housing industry in providing adequate and affordable housing for all economic segments of the community and to provide a balance of housing opportunities for very low-income, low income and senior households throughout the city. D. Although the Project is proposing a total number of units (552) that is below the maximum City -prescribed density for the Project site based on its acreage (620), the Developer is able to seek up to three (3) density bonus concessions and a waiver because it is a 100-percent 60A-3 affordable Project. The three (3) requested concessions and the waiver are permitted by State Density Bonus Law. Specifically, Developer is seeking concessions allowed pursuant to Government Code section 65915(d)(1) pertaining to: publicly accessible open space; building setbacks; and, residential parking; as well as a waiver allowed pursuant to Government Code section 65915(e)(1) pertaining to driveway width. E. For the purpose of implementing State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance concessions in response to Developer's request for three (3) density bonus concessions and a waiver, Developer has agreed to restrict all Units in the Project, except for five (5) manager's units, to Eligible Households, which includes Very Low Income and Low Income Tenants. F. The Project complies with the affordable housing requirements set forth in the State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance. For purposes of this Agreement, the Project shall be the "housing development" as defined in the State Density Bonus Law. G. In light of the purpose of the State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance, and the express provisions of Government Code section 65915(n), as well as Santa Ana Municipal Code section 41-1904.1, the City has determined to grant Developer's application for density bonuses and related concessions and incentives. H. This Agreement, and the exhibits attached hereto and incorporated herein by reference, is intended to set forth the terms and conditions for the implementation of the Project's requirement to provide affordable housing units in exchange for receiving the Density Bonus concessions and incentives set forth herein. 1. The Developer has paid the City's Density Bonus Setup fee in the amount of $82,084.05. NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein by this reference, and of the mutual covenants contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. DEFINITIONS AND EXHIBITS 1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows: 1.1.1 "Adjusted for family size appropriate to the unit" shall have the meaning set forth by the California Tax Credit Allocation Committee, from time to time, in administering the low income housing tax credit programs. 60A-4 1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be charged to and paid by an Eligible Household for the Affordable Units, as required by the terms of this Agreement. 1.1.3 "Affordable Rent Schedule" means a rent schedule established as of the date of issuance of an occupancy permit (exclusive of tenant utility payments or security deposits) for the required number/percentage of the total number of units in the Project which are to be rented or available for rent to very low or low income tenants. Said Affordable Rent Schedule shall be established at the time of the issuance of the occupancy permit ("Initial Rent Schedule") and shall be created in accordance with the Orange County, California Primary Metropolitan Statistical Area ("PMSA") as published by the United States Department of Housing and Urban Development ("HUD"), adjusted for family size. 1.1.4 "Affordable Units" means five -hundred and fifty-two (552) units which shall be comprised of twenty-seven (27) one(l) bedroom Units, two -hundred and thirty-nine (239) two (2) bedroom Units, one -hundred and forty-six (146) three (3) bedroom Units, and one -hundred and fortv'(140) four (4) bedroom Units, of which five (5) Unrestricted Units (i.e. —manager's unit), with unit sizes as may be determined by the Developer. 1.1.5 "Agreement" means this Density Bonus Housing Agreement. 1.1.6 Reserved 1.1.7 "City" means the City of Santa Ana, California 1.1.8 "City Council" means the City Council ofthe City of Santa Ana. 1.1.9 "City Attorney" means the City Attorney for the City of Santa Ana. 1.1.10 "City Manager" means the City Manager for the City of Santa Ana. 1.1.11 "City's Planning Commission" means the Planning Commission for the City of Santa Ana. 1.1.12 "Density Bonus Housing Agreement Term" means the period during which this Agreement shall be in full force and effect, as provided for in Section 6.1 below. 1.1.13 Reserved 1.1.14 "Developer" means collectively, Santa Ana Pacific Associates, A California Limited Partnership, a California limited partnership, and Santa Ana Pacific Associates II, A California Limited Partnership, a California limited partnership, and their permitted successors and assigns to all or any part of the Property. 1.1.15 "Effective Date" means the date the City Council of City approves this Agreement and from then on this Agreement shall be in full force and effect. 60A-5 1.1.16 "Eligible Household" means a Household whose income does not exceed the qualifying limit for a "very low income tenant" or "lower income tenant" as defined herein, which means persons and families whose income does not exceed the qualifying limit for very low income or lower income households. 1.1.17 "Household" means all persons residing in a Unit. 1.1.18 "Low Income Tenant" means persons and families whose income does not exceed eighty percent (80%) area median income for the Orange County, California PMSA, adjusted for household size, as published by the California Tax Credit Allocation Committee. 1.1.19 "Median Income" means the Orange County, California area median income, adjusted for family size appropriate to the unit, as periodically published by the California Tax Credit Allocation Committee. 1.1.20 "Monthly Rent" means the total of monthly payments for (a) use and occupancy of each Affordable Unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, application fees or credit check fees (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone or cable service, and (d) possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than Developer. In the event that certain utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent for that type of utility charge. 1.1.21 "Project" means that certain residential development as more particularly described in Recital B and Section 2 of this Agreement. 1.1.22 "Property" means that certain real property more particularly described in the legal description in Exhibit A and improvements thereon. 1.1.23 "State Density Bonus Law" means Government Code sections 65915, et seq., as they exist on the Effective Date. 1.1.24 "Unit" means a residential dwelling unit within the Project to be constructed by Developer pursuant to this Agreement. 1.1.25 "Unrestricted Units" means the Units within the Project to be constructed by Developer to a Household without restriction (i.e. — manager's unit). 1.1.26 "Very Low Income Tenant" means persons and families whose income does not exceed fifty (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by the California Tax Credit Allocation Committee. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: 1.2.1 Exhibit A — Legal Description of the Property 1.2.2 Exhibit B — Tenant Verification 2. DEVELOPMENT OF THE PROPERTY 2.1 Project. Developer shall develop, operate, and maintain the Property as a five - hundred and fifty-two (552) Unit affordable rental family -oriented mixed -use commercial and residential community. 2.2 Density Bonus. The Project shall have five -hundred and fifty-two (552) Units, to be rented, occupied, operated, and maintained pursuant to the terms and conditions of this Agreement. Developer understands and agrees that Developer is not utilizing a density bonus increase provided by the State Density Bonus Law or a density bonus provided by the City's Housing Opportunity Ordinance. However, Developer is only proposing five -hundred and fiftv- two 552 Units, so Developer shall not construct or develop, or otherwise claim a right to construct or develop any additional State and/or City Density Bonus Units on the Property. 2.3 Development Concessions and Waivers. As set forth in the City entitlements, Developer petitioned for and was granted the following concessions and waivers as part of the approval of Site Plan Review No. 2017-09 for the Project: 2.3.1 The residential parking requirements for the Project shall be reduced from two (2) spaces per unit overall to 1.03 spaces per unit. 2.3.2 The publicly accessible open space requirement calculation shall be reduced from 15% of total lot area to less than 2% of total lot area. 2.3.3 The building front yard setback requirement shall be amended from a minimum of twenty (20) feet to a minimum of six (6) feet. The building side yard setback requirement shall be amended from a minimum of ten (10) feet to a minimum of six (6) feet. The building rear yard setback requirement shall be amended from a minimum of one hundred (100) feet to a minimum of forty-five (45) feet. 2.3.4 The driveway width requirement shall be increased from a maximum of twenty-four (24) feet to thirty-eight to forty-six (38-46) feet. 2.4 In exercising the rights granted to the developer under AB 744 the parking . requirements for the Project shall be reduced in accordance with Government Code Section 65915(p), such that a total of 566 resident and guest parking spaces will be provided in an at -grade parking area beneath the residential levels, as well as 50 parking spaces for the commercial component and 4 spaces for the leasing office and the development's employees. 60A-7 2.5 No Further Concessions or Incentives. Developer acknowledges and agrees that the waivers and incentives set forth in section 2.3 above fully satisfy any duty City may have under the Santa Ana Municipal Code, the Density Bonus Law, or any other law or regulation applicable to the Project, to provide any development incentive or to waive any building, zoning, or other requirement. By this Agreement, Developer releases any and all claims Developer may have against City in any way relating to or arising from City's obligation to waive requirements of or provide development incentives pursuant to any state, federal, or local law, rule, or regulation applicable to the Project. 2.6 Unrestricted Units, The Project, for purposes of this Agreement, may have no more than five 5 Unrestricted Units (i.e. — manager's unit) with unit sizes as may be determined by the Developer. Developer may alter the unit distribution of the Unrestricted Units in Developer's discretion, provided that the Project has the minimum number of Affordable Units and the minimum distribution thereof as specified in this Agreement. 2.7 Affordable Units. The Project, for purposes of this Agreement, shall have no less than five -hundred, forty-seven f547) Units designated as Affordable Units pursuant to the terms and conditions ofthis Agreement. The Affordable Units shall be consistent with all City approvals, and shall be located throughout the Project. 2.8 Minimum Development Standards for Affordable Units. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for any Unrestricted Units, regardless of whether such Unrestricted Units are in the Project. 2.9 Permits and Processing, Compliance with Laws. Developer at its sole cost and expense shall secure or cause to be secured any and all permits that may be required by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, Developer shall carry out and perform the development, operation, and maintenance of the Project in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued by the City Council and City's Planning Commission for the Project. Any changes to the Project shall be reviewed by the City to determine compliance with this Agreement. If any changes to the Project shall materially alter the ability of Developer to comply with any terms of this Agreement in City's sole determination, then City shall have the option to declare this Agreement null and void in its sole discretion. 2.10 Relocation Prior to Development of Project. If relocation is required prior to the completion of development of the Project, Developer shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs as may be required to comply with applicable federal and state laws and regulations. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all .1 M alleged or actual claims, causes of action, liabilities, and damages from any third party for relocation assistance, benefits and costs prior to the completion of the development of the Project. 2.11 Local Sourcing Plan. Developer agrees to make a good faith effort to encourage contractors and suppliers to hire and procure locally, to the extent that it is cost effective and does not delay the overall project development schedule. Prior to issuance of Building Permit, Developer shall develop and submit to the Community Development Agency (the "CDA") a local sourcing plan for the Project targeting, to the extent feasible, the hiring of qualified workers, construction contractors, or the purchasing of goods locally within the City of Santa Ana. The plan must be reviewed and approved by the CDA which if not granted or denied within five (5) Business Days, shall be deemed approved (with such approval not to be unreasonably withheld) and be implemented for the construction of the project prior to issuance of Building Permit. 2.12 Mechanic's Liens; Indemnification. Developer shall take all actions reasonably necessary to remove any future mechanic's liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof, by reason of work, labor, services, or materials supplied or claimed to have been supplied to Developer or anyone holding the Property or Project, or any part thereof, through or under Developer. Prior to the recording of this Agreement (or memorandum thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company of any new recordings against the Property or Project. City hereby reserves all rights to post notices of non -responsibility and any other notices as may be appropriate upon a filing of a mechanic's lien. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party by reason of a mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to Developer or anyone holding the Property or Project, or any part thereof, through or under Developer. 3. AFFORDABILITY 3.1 Total Affordability Term. Each Affordable Unit shall be restricted to use and occupancy by an Eligible Household for a total period of no less than fifty-five (55) years ("Total Affordability Term"). The Total Affordability Term for an Affordable Unit shall commence on the date that the Affordable Unit receives all required occupancy permits from the City. By way of explanation of the foregoing two sentences, it is possible that the Total Affordability Period for one Affordable Unit will neither commence on the same date nor terminate on the same date as another Affordable Unit, and it is possible that the Total Affordability Terms for all Affordable Units will commence on different days and terminate on different days. 3.2 Memorializing Commencement of Total Affordability Term. Developer shall keep detailed records of the commencement date of the Total Affordability Term for each Affordable Unit. City shall have the right to review and verify said records to ensure that the commencement date specified by Developer for an Affordable Unit coincides with the date that the initial 60A-9 Affordable Unit received all permits from City required for occupancy of the Unit. In the event that a conflict exists between the date specified by Developer for the commencement of the Total Affordability Term for an Affordable Unit and the date specified by City's issuance of all required permits for occupancy of the Unit, the date specified by City's issuance of all required permits for occupancy of the Unit shall control. 3.3 Levels of Affordability. 3.3.1 Very Low income Tenants. Developer covenants that no less than fifty-six (56) Affordable Units in the Project shall at all times during the Density Bonus Housing Agreement Term be rented to, or held vacant and available for immediate occupancy by Very Low Income Tenants, at a rent that does not exceed thirty percent (30%) of fifty percent (50%) of the area median income, as adjusted for household size, including an allowance for utilities. 3.3.2 Low Income Tenants. Developer covenants that no less than four hundred. ninety-one (491) Affordable Units in the Project shall at all times during the Density Bonus Housing Agreement Term be rented to, or held vacant and available for immediate occupancy by Lower Income Tenants, at a rent that does not exceed thirty percent (30%) of sixty percent (60%) of the area median income, as adjusted for household size, including an allowance for utilities. 3.4 Affordable Rental Schedule. The Affordable Rental Schedule shall be determined by the regulatory agreements entered into between the Developer and the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) governing the project. 4. OWNERSHIP AND OPERATION OF THE PROJECT BY OWNER 4.1 RecordingofDocuments. No later than issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property and the Project. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State Density Bonus Law, City Density Bonus Law, and the City Housing Opportunity Ordinance, and to ensure the continued supply of Affordable Units in the Project. 4.2 Rental of Units. Upon the completion of construction of the Project and receipt by Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in accordance with the terms and conditions set forth in this Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible Household for the Total Affordability Term. 60A-10 4.3 Location of Affordable Units. During the Density Bonus Housing Agreement Term, the Affordable Units shall be disbursed throughout the Project in accordance with the terms and conditions set forth in this Agreement. 4.4 Occupancy Levels. The number of persons permitted to occupy each Affordable Unit shall not exceed the occupancy permitted pursuant to the requirements of the United States Department of Housing and Urban Development. In the event that a household residing in an Affordable Unit exceeds the permitted number of persons, then that household shall be placed on the waiting list for the appropriate -sized unit and be eligible for transfer when that unit becomes available. If the household refuses to transfer to the appropriate -sized unit then the Owner will have grounds to terminate that household's lease. 4.5 Use of the Property. All uses conducted on the Property, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and local laws, rules, and regulations. The Project shall at all times during the term of this Agreement be used as an apartment complex and none of the Housing Units in the Project shall at any time be utilized on a transient basis, nor shall the Property or any portion thereof ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home, or be converted to condominium ownership. All of the community facilities and any social programs provided to the Project's residents shall be available on an equal, nondiscriminatory basis to residents of all Housing Units at the Project. 4.6 Maintenance. Owner shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project. If at any time Developer fails to maintain the Project or the Property in accordance with this Agreement and such condition is not corrected within five (5) days after written notice from City with respect to debris and waste material, or thirty (30) days after written notice from City with respect to general maintenance, landscaping and building improvements, then City, in addition to whatever remedy it may have at law or at equity, shall have the right to enter upon the applicable portion of the Project or the Property and perform all acts and work necessary to protect, maintain, and preserve the Project and the Property, and to attach a lien upon the Property, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by City and/or costs of such cure, including a reasonable administrative charge, which amount shall be promptly paid by Developer to City upon demand. 4.6.1 Property Maintenance Agreement. Subject to review and applicability by the Planning and Building Agency (the "PBA"), the CDA, the Public Works Agency (the "PWA"), and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained, Developer (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the applicant) shall execute a maintenance agreement with the City of Santa Ana prior to occupancy which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The 60A-11 maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (a) Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); (b) Compliance with ongoing operational conditions, requirement and restrictions as applicable, the proper storage and disposal of trash and debris, and/or restrictions on certain uses; (c) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable; (d) Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); (e) If Developer and the owner of the property are different (e.g., if the applicant is a tenant or licensee of the property or any portion thereof), both the applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms; (t) The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement; (g) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City; and, 10 60A-12 (h) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of the Certification of Occupancy. 4.7 Marketing Program. Each Affordable Unit shall be leased to Eligible Households selected by Developer who meet all of the requirements provided herein. Prior to Certificate of Occupancy, Developer shall prepare and obtain City's approval, which approval shall not be unreasonably withheld, of a marketing program for the leasing of the Housing Units at the Project ("Marketing Program"). The leasing of the Housing Units shall thereafter be marketed in accordance with the Marketing Program as the same may be amended from time to time with City's prior written approval, which approval shall not unreasonably be withheld. Upon request, Developer shall provide City with periodic reports with respect to the leasing of the Housing Units. 4.8 Management Plan. Prior to Certificate of Occupancy, Developer shall submit for the reasonable approval of City a "Management Plan" which sets forth in detail Developer's property management duties, a tenant selection process in accordance with this Agreement, a security system and crime prevention program, the procedures for the collection of rent, the procedures for eviction of tenants, the rules and regulations for the Property and manner of enforcement, a standard lease form, an operating budget, the identity and emergency contact information of the professional property management company to be contracted with to provide 24-hour onsite property management services at the Property ("Property Manager"), and other matters relevant to the management of the Property. The Management Plan shall require Developer to adhere to a fair lease and grievance procedure. The management of the Property shall be in compliance with the Management Plan as approved by City. If City determines that the performance of the Property Manager is deficient based upon the standards set forth in the approved Management Plan and in this Agreement, City shall provide notice to Developer of such deficiencies and Developer shall use its best efforts to correct such deficiencies. In the event that such deficiencies have not been cured within thirty (30) days, City shall have the right to require Developer to immediately remove and replace the Property Manager with another property manager or property management company which is reasonably acceptable to the City Manager, which is not related to or affiliated with Developer, and which has not less than five (5) years experience in property management, including significant experience managing housing facilities of the size, quality and scope of the Project. 4.9 Selection of Tenants. 4.9.1 Developer shall be responsible for the selection of tenants for the Housing Units in compliance with lawful and reasonable criteria and the requirements of this Agreement. Developer agrees that all of Affordable Units will be available to families or qualifying residents as defined under California Civil Code section 51.3. 4.9.2 Local preference for Santa Ana residents and workers in tenant selection shall be a requirement of the Project. Subject to applicable laws and regulations governing nondiscrimination and preferences in housing occupancy required by the State of California, the Developer shall give preference in leasing units to households that live and/or work in the City of 11 60A-13 Santa Ana or who have an active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any other Public Housing Authority. 4.9.3 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall verify the income of the tenant(s) as set forth herein. 4.10 Income Verification and Certification. Owner covenants to City that it will at all times abide by all specific compliance standards set forth in the regulatory agreements entered into between the Owner and the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC), including but not limited to such standards as relate to the number of very -low and low income affordable units by number of bedrooms, standards for qualifying household incomes and other qualifying criteria. Owner shall provide City with a certified copy of each of the recorded Regulatory Agreements applicable to the Project. The compliance standards set forth in said Regulatory Agreements are hereby incorporated by reference as fully set forth herein. In the event of a conflict between this Agreement and the Regulatory Agreements: (1) the more stringent requirement shall prevail if such interpretation eliminates the relevant conflict; or (2) the Regulatory Agreements, or any of them, shall prevail. Developer agrees to make a good faith effort to verify that the income and asset statement provided by an applicant in an income certification is accurate by taking at least one of the following steps as apart of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. 4.11 Monitoring and Recordkeeping. Throughout the Term of this Agreement, Developer shall annually complete and submit to City a Certification of Continuing Program Compliance in the form provided by City. Owner agrees to pay a reasonable fee, as set by City resolution, for the purpose of paying the actual costs associated with the City's obligation to monitor Owner's compliance with the affordability restrictions contained in this Agreement related to the Density Bonus units, not to exceed monitoring costs for up to 133 units. The City shall first start with the review of all reports and monitoring prepared by Owner for the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) each year. Representatives of City shall be entitled to enter the Property if necessary after review of above documentation, upon at least forty-eight (48) hour notice, to monitor compliance with this Agreement, and shall be entitled to inspect the records of the Project and to conduct an independent audit or inspection of such records at a location within the City that is reasonably acceptable to the City. Developer agrees to cooperate with City in making the Property and the 12 60A-14 records of the Project available for such inspection or audit. Developer agrees to maintain each record of the Project for no less than five (5) years after creation of each such record. Developer shall allow the City to conduct annual inspections of each of the Affordable Units on the Property after the date of construction completion, with reasonable notice. Developer shall cure any defects or deficiencies found by the City while conducting such inspections within ten (10) Business Days of written notice thereof, or such longer period as is reasonable within the sole discretion of the City. 4.12 Annlication and Financial Preparedness. Developer shall submit for review and approval by the CDA and the PBA, a booklet completed by the Developer at least 12 months prior to the initial leasing of the units. This booklet can be made available at the Property Manager's office or at another location agreed upon by the Owner, the CDA, and the PBA. The purpose of this booklet is to inform interested persons regarding minimum application and eligibility requirements and to assist interested persons with application and financial preparedness and eligibility for residency at the Project at the initial leasing of the units. Developer shall also work with CDA to hold a minimum of two workshops to be coordinated by the Developer at least 12 months prior to the initial leasing of the units. 4.13 Onsite Supportive Services, Programs and Amenities. Throughout the Term of this Agreement, and to the extent such can be coordinated with and largely supplied by philanthropic and other social welfare providers, Developer shall provide residents of the Project access to discounted or no -cost onsite supportive services, programming, and amenities that promote independent living and include but are not limited to: health and wellness services, transportation services, social activities, and physical or recreational amenities. 4.14 Alternative Transportation and Energy Source, Resource Conservation, and LEED Certification. While not a condition of the project's Density Bonus, in recognition of the City's desire to optimize the energy efficiency of the project, Developer agrees to consult with the project design team, a CABEC certified 2016 Certified Energy Analyst, a LEED AP Homes (low-rise and mid -rise), LEED AP BD+C (high rise), National Green Building Standard (NGBS) Green Verifier, or GreenPoint Rater (one person may meet both of these latter qualifications) early in the project design process to evaluate a building energy model analysis and identify and consider energy efficiency or generation measures beyond those required by the TCAC minimum construction standards. Prior to the meeting, the energy analyst shall complete an initial energy model based on either current T24 standards or, if the project is eligible, the California Utility Allowance Calculator using best available information on the project. To the extent financially feasible for the project, Developer agrees to incorporate and optimize energy efficient building materials, methods, and amenities. 4.15 Reserved. 4.16 Onsite Property Manager, The Project shall include the provision to have 24-hour on - site Property Management services and personnel. Up-to-date 24-hour contact information for the on -site personnel shall be provided to the following City Agencies on an ongoing basis: (a) Police Department 13 60A-15 (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 4.17 Emergency Evacuation Plan. Developer shall submit and obtain approval of an Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for the on -site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 4.18 Crime Free Housing. Developer shall work with City Staff to develop a crime free housing policy, procedure, and design plan (the "CFH Plan"). Developer shall submit and obtain approval from the PBA the CFH Plan meeting the requirements of this Subsection 4.18 prior to issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented and administered by Property Management. 4.19 Onsite Parking Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take appropriate measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the PBA a Parking Management Plan (the "PMP") meeting the requirements of this Subsection 4.19. The approved PMP shall be adhered to and be enforced by the Project at all times. 4.20 Parking Shuttle and/or Valet Service. (a) Developer must identify which parking lots have agreed to rent out parking spaces for the valet service; (b) Developer must identify specific shuttle stop locations and must obtain approval from the Orange County Transportation Authority (OCTA) to utilize its bus stops/pullouts as part of its shuttle service operations; (c) All residents of driving age must disclose any owned, leased, or rented vehicles to be permitted to park on the project site or any properties as part of the valet or shuttle service; (d) Each tenant must agree to terms prohibiting parking of his or her vehicle on any City -owned property; (e) Every such agreement must contain penalties/consequences for violating the terms of the agreement; (f) Terms shall also be incorporated into the City's housing plan or agreement for the Project; (g) The shuttle shall be operated by the Developer and be at the Developer's expense; 14 �• •. (h) The Developer and/or management company shall maintain a copy of the shuttle's operating plan, including days, times, and frequency of service, with the City's Planning Division and Public Works Agency; (i) The City can record a lien to collect any unpaid fines or monitoring costs; (j) The City may require the Developer and/or management company to include lease provisions that limit the number of vehicles a tenant may possess during the term of occupancy; and, (k) The Developer and/or management company shall work with the City's Planning Division, Public Works Agency, and City Attorney's Office to document and record the agreement. 4.21 Prior to issuance of building permits for above -ground construction, the Developer shall provide the City of Santa Ana a copy of a recorded easement for reciprocal access (ingress, egress, and fire access) for any and all proposed shared drive aisle(s) between the project site and the adjacent property to the west. [INTENTIONALLY RESERVED] 6. TERM OF THIS AGREEMENT 6.1 Term. The term of this Agreement ("Density Bonus Housing Agreement Term") shall commence on the Effective Date and shall continue until the date that is fifty-five (55) years after the City issues the last certificate of occupancy for the Project. DEFAULT AND TERMINATION, INDEMNIFICATION 7.1 Default. Failure or delay by any Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein), constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 7.2 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 7.3 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel 15 60A-17 upon City's and Developer's consent) indemnify and hold harmless City and its respective officers, officials, agents, employees, representatives, and volunteers (collectively, "Indemnitees") from and against any loss, liability, claim, or judgment arising from any act or omission of Developer in connection with its obligations under this Agreement, except to the extent caused by the active negligence or willful misconduct of Indemnitees. 8. ASSIGNMENT: COVENANTS RUN WITH THE LAND 8.1 Assignment by Developer. 8.1.1 Prohibited Transfers or Assignments. Except as authorized in Section 8.1.2 below, Developer shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Developer's rights and obligations in this Agreement, without City's prior written approval, which shall not be unreasonably withheld. Except for Permitted Transfers set forth in Section 8.1.2 below, Developer shall: (i) notify City in writing of the sale, transfer, or assignment of all or any portion of the Property, and (ii) deliver to City an assignment and assumption agreement (or other agreement) in a form approved by City and executed by Developer and its transferee/assignee pursuant to which Developer's transferee/assignee assumes all of Developer's covenants and obligations set forth herein with respect to the Property or the portion thereof so transferred. Any request for transfer or assignment of the Agreement by Developer shall require the payment of fees or a deposit to compensate the City for approximate expenses incurred by Developer to City, as applicable, for the City's review of the request. 8.1.2 Sale of Property/Change of Use: Owner agrees and declares that the Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, operated, sold, and approved subject to all obligations set forth or incorporated in this Agreement, all of which are for the purpose of enhancing and protecting the value and attractiveness of the Property and the Project. All of the obligations set forth or incorporated in this Agreement shall constitute covenants which run with the land and shall be binding on Owner and its successors and assigns, and all parties having or acquiring any right, title or interest in, or to any part of the Property or Project. Owner further understands and agrees that the Density Bonus permit approvals received for this Project have been made on the condition that Owner and all subsequent owners, or other successors and assigns of the Property and/or Project lease and rent the Units in accordance with the terms and conditions stipulated in Sections 4, 5 and 6 of this Agreement for a term of 55 consecutive years commencing upon the date that the Project is first occupied. 8.1.3 Subsequent Assignment. As used in this Agreement, the term "Developer" shall be deemed to include any such transferee or assignee after the date such sale, transfer, or assignment occurs in compliance with this Agreement. 8.1.4 Unoermitted Assignments Void. Any sale, transfer, or assignment made in violation of this Agreement shall be null and void, and City shall have the right to pursue any right or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales, transfers, or assignments. 16 �. 1 8.2 Covenants Run with the Land. The Property shall be held, sold, conveyed, hypothecated, encumbered, used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Developer and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. However, all such covenants and restrictions shall be deemed to run in favor of all real property owned by City which real property shall be deemed the benefited property of such covenants and this Agreement shall create equitable servitudes and covenants appurtenant to all real property owned by City and running with the Property in accordance with the provisions of Civil Code Section 1468. Furthermore, all of the covenants, conditions, and restrictions contained herein shall also constitute easements in gross running in favor of City. City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Developer hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Developer's interest in the Property is rendered less valuable thereby. Developer hereby further declares its understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City. 9. MISCELLANEOUS 9.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth and contain the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 9.2 Amendment. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance approved by the City Council and signed on behalf of each party. Any requested alteration, change or modification of the Agreement by Developer shall require the payment of fees or deposit by Developer to City, as applicable, for the City's review of the request. Each alteration, change, or modification to this Agreement shall be recorded against the Site in the Official Records of Orange County, California. 17 60A-19 9.3 Notices. 9.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (M) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next -day document delivery service (such as Federal Express), charges prepaid and delivery scheduled next -day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (v) the first business day following the date of transmittal of any facsimile, provided confirmation of successful transmittal is retained by the sending Party. All notices shall be addressed as follows: If to City: City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) P.O. Box 1988 Santa Ana, California 92702 Attention: Housing Manager With a copy to: Office of the City Attorney City of Santa Ana 20 Civic Center Plaza, 7th Floor (M-29) Santa Ana, California 92702 If to Developer: Santa Ana Pacific Associates, A California Limited Partnership Santa Ana Pacific Associates I1, A California Limited Partnership 430 E. State Street, Suite 100 Eagle, Idaho 83616 With a copy to: BCP/First Point I, LLC BCP/First Point II, LLC c/o Boston Capital Partners One Boston Place, 21 s` Floor Boston, MA 02108 Attention: Asset Management (First Point Apartments) 9.3.2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 18 60A-20 9.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder ofthis Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 9.5 Interpretation and Governing Law. This Agreement and any dispute hereunder shall be governed and interpreted in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 9.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 9.7 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates. 9.8 Joint and Several Obligations. If at any time during the term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one Developer, all obligations of such Developer under this Agreement shall be joint and several, and the default of any such Developer shall be the default of all such Developers. 9.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 9.10 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term "days" shall mean calendar days. For purposes of this Agreement and all Exhibits attached hereto, "business days" shall mean every day of the week except Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a) or successor statute, and any days in which Santa Ana City Hall is closed for business. 9.11 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. 9.12 Non -Discrimination. In performing its obligations under this Agreement, Developer shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other related activities. Developer affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19 60A-21 9.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall have any right of action based upon any provision of this Agreement. 9.14 Force Maieure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control (including the Party's employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Party's control, including delays by any governmental entity (although the City may not benefit from this provision for a delay that results from City's failure to perform its obligations under this Agreement), or an insurance company of either party. If any such events shall occur, the term of this Agreement and the time for performance by either Party of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance. 9.15 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 9.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each Party and each successor in interest approved pursuant to this Agreement during ownership of the Property or any portion thereof. 9.17 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument. 9.18 Jurisdiction and Venue. Any action at law or in equity under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 9.19 Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the Developer of such property. 20 60A-22 9.20 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other actions and negotiate and execute any additional agreements as may be necessary or proper to fulfill the City's obligations under this Agreement. The City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City. 9.21 Estoaoel Certificate. Within ten (10) business days following a written request by any of the Parties, the other Party shall execute and deliver to the requesting Party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification, except as may be represented by the requesting Party, and that there are no uncured defaults in the performance of the requesting Party, except as may be represented by the requesting Party. 9.22 No Subordination. City's approval of the necessary land use entitlements that authorize Developer to develop, operate, and maintain the Project was based upon Developer's obligation to provide the Affordable Units pursuant to the State Density Bonus Law, City Density Bonus Law, City Housing Opportunity Ordinance, and the terms and conditions of this Agreement. For the Term of the Density Bonus Housing Agreement, this Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Developer expressly understands and acknowledges that state law requires preservation ofaffordability covenants in connection with the approval of this density bonus project. 9.23 Attomevs' Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement arising out of or in connection with this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and costs of suit from the losing Party. 9.24 Authority to Execute. The person or persons executing this Agreement on behalf of each Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder. (Signatures on following page) 21 60A-23 IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing Agreement to be executed on the date set forth at the beginning of this Agreement. ATTEST: CITY OF SANTA ANA Kristme Ridge DAISY GOMEZ C3tyiVfanager CLERK OF THE COUNCIL APPROVED AS TO FORM Sonia R. Carvalho City Attorney By: Wyan Hodge Assistant City Attomey RECOMMENDED FOR APPROVAL: Steven A. Mendoza Executive Director Community Development Agency SANTA ANA PACIFIC ASSOCIATES, A CALIFORNIA LIMITED PARTNERSHIP C qb Roope TPC Holdings VI, LLC General Partner SANTA ANA PACIFIC ASSOCIATES II, A CALIFORNIA LIMITED PARTNERSHIP Ca b Roope T Holdings VI, LLC General Partner 22 60A-24 A notary public or other officer completing this certificate verifies only the Identity of the Individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of Idaho County of Ada On March 26. 2019 before me, Peter Van Dome, Notary Public, personally appeared Caleb R000e, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Idaho that the foregoing paragraph is true and correct. WITNESS my harA and offic Signature (Seal) PETER VAN DORNE COMMISSION 592857 NOTARY PUBLIC STATE OF IDAHO MY COMMISSION EXPIRES 0a101120M 60A-25 A notary public or other officer completing this certificate verifies only the Identity of the Individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of Idaho County of Ada On March 26, 2019 before me, Peter Van Dome, Notary Public, personally appeared Caleb R000e, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Idaho that the foregoing paragraph is true and correct. WITNESS my nd an o ial seal. Signature (Seal) PETER VAN DORNE COMMISSION #32357 NOTARY PUBLIC STATE OF IDAHO MY COMMISSION EXPIRES M01/202s EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY 23 60A-27 Exhibit A Legal Description All that real property situated in the City of Santa Ana, County of Orange, State of California and more particularly described as follows: PARCEL 1: THAT CERTAIN PARCEL OF LAND, LOCATED AT 16812 EAST FIRST STREET, SANTA ANA, CALIFORNIA, WHICH PROPERTY IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF LOT "D" OF THE STAFFORD AND TUSTIN TRACT, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 2, PAGES 618 THROUGH 619, OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, THENCE WEST ALONG THE SOUTH SIDE OF FIRST STREET, 417.75 FEET OF A POINT; THENCE SOUTH 733.36 FEET TO A POINT; THENCE EAST 417.75 FEET TO THE EAST LINE OF SAID LOT "D"; AND THENCE NORTH 733.36 FEET TO THE POINT OF BEGINNING. EXCEPT THEREFROM THE NORTHERN NINETEEN (19.00) FEET, AS CONVEYED TO THE CITY OF SANTA ANA, A MUNICIPAL CORPORATION, IN A DOCUMENT RECORDED DECEMBER 22, 1965 AS INSTRUMENT NO. 16905, IN BOOK 7781, PAGE 486 OFFICIAL RECORDS. NOTE: SAID LAND IS ALSO SHOWN ON A RECORD OF SURVEY, FILED ON JULY 13, 1964 IN BOOK 74, PAGE 3 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 2: A DRAINAGE EASEMENT FOR DISCHARGING WATER FROM THE EAST 417.75 FEET OF THE NORTH 733.36 FEET OF LOT "D" OF THE STAFFORD AND TUSTIN TRACT AS PER MAP THEREOF RECORDED IN BOOK 2, PAGES 618 AND 619 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, BY MEANS OF UNDERGROUND PIPELINES, WITH THE RIGHT TO LAY, PLACE, USE, MAINTAIN, ALTER, ADD TO, REPAIR, REPLACE AND/OR REMOVE SAID PIPELINES, ALONG THE FOLLOWING DESCRIBED REAL PROPERTY: PARCEL (A): THE SOUTH FIVE (5.00) FEET OF THAT CERTAIN REAL PROPERTY IN THE RANCHO SANTIAGO DE SANTA ANA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS: COMMENCING AT THE NORTHWEST CORNER OF LOT "D" OF THE STAFFORD AND TUSTIN TRACT AS PER MAP RECORDED IN BOOK 2, PAGE 618 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA; THENCE EAST ON THE NORTH LINE OF SAID LOT "D" 225.75 FEET TO A POINT, A STONE A-1 OVER A BRICK BEING SET IN THE GROUND 3 INCHES EAST OF SAID POINT; THENCE SOUTH 733.36 FEET TO A POINT, A STONE SET OVER A BRICK BEING SET IN THE GROUND 3 INCHES WEST OF SAID POINT; THENCE WEST 225.75 FEET TO THE WEST LINE OF SAID LOT "D'; THENCE NORTH 733.36 FEET TO THE POINT OF BEGINNING. PARCEL (B): THE WEST SIX (6.00) FEET OF THAT CERTAIN REAL PROPERTY IN THE RANCHO SANTIAGO DE SANTA ANA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA., DESCRIBED AS: A PORTION OF THE SOUTH HALF OF LOT "D" OF THE STAFFORD AND TUSTIN TRACT, AS SHOWN ON A MAP RECORDED IN BOOK 2, PAGES 618 AND 619, MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE NORTH LINE OF THE COUNTY ROAD KNOWN AS MAIN STREET, SAID POINT BEING ALSO THE SOUTHEAST CORNER OF SAID LOT "D"; THENCE NORTH ALONG THE EASTERLY LINE OF SAID LOT "D", 501.13 FEET; THENCE WEST 9.75 CHAINS TO THE WEST LINE OF SAID LOT "D'; THENCE SOUTH 501.5 FEET TO THE NORTH LINE OF MAIN STREET; THENCE EAST 9.75 CHAINS TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN A DOCUMENT TO LEROY G. CONNELLY AND WIFE, RECORDED DECEMBER 3, 1954, IN BOOK 2887, PAGE 120, OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN A DOCUMENT TO THE STATE OF CALIFORNIA, RECORDED NOVEMBER 17, 1955, IN BOOK 3285, PAGE 542, OFFICIAL RECORDS. APN: 402-191-01, 402-191-02, 402-191-04 A-2 60A-29 EXHIBIT B TENANT VERIFICATION 24 60A-30 EXHIBIT B INCOME COMPUTATION AND CERTIFICATION NOTE TO APARTMENT OWNER: This form is designed to assist you in computing Annual Income in accordance with the method set forth in the Department of Housing and Urban Project ("HUD") Regulations (24 CFR 813). You should make certain that this form is ate all times up to date with the HUD Regulations. Re: Santa Ana, California I/We, the undersigned state that I/we have read and answered fully, frankly and personally each of the following questions for all persons who are to occupy the unit being applied for in the above apartment project. Listed below are the names of all persons who intend to reside in the unit: 1. 2. 3. 4. Name of Members Relationship of the to Head of Social Security Household Household Age Number HEAD SPOUSE Income Computation 5. Place of Employment 6. The total anticipated income, calculated in accordance with the provisions of this Certification, of all persons over the age of 18 years listed above for the 12-month period beginning the date that I/we plan to move into a unit is $ Included in the total anticipated income listed above are: (a) all wages and salaries, overtime pay, commissions, fees, tips and bonuses and other compensation for personal services, before payroll deductions; (b) the net income from the operation of a business or profession or from the rental of real or personal property (without deducting expenditures for business expansion or amortization of capital indebtedness or any allowance for depreciation of capital assets), (c) interest and dividends (including income from assets excluded below); (d) the full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including any lump sum payment for the delayed start of a periodic payment; B-1 60A-31 (e) payments in lieu of earnings, such as unemployment and disability compensation, workmen's compensation and severance pay; (0 the maximum amount of public assistance available to the above persons other than the amount of any assistance specifically designated for shelter and utilities; (g) periodic and determinable allowances, such as alimony and child support payments and regular contributions and gifts received from persons not residing in the dwelling; (h) all regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is the head of the household or spouse; and (i) any earned income tax credit to the extent that it exceeds income tax liability. Excluded from such anticipated income are: (a) casual, sporadic or irregular gifts; (b) amounts which are specifically for or in reimbursement of medical expenses; (c) lump sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and workmen's compensation), capital gains and settlement for personal or property losses; (d) amounts of educational scholarships paid directly to the student or the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships or payments to veterans not used for the above purposes are to be included in income; (e) special pay to a household member who is away from home and exposed to hostile fire; (f) relocation payments under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (g) foster child care payments; (h) the value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1977, (i) payments to volunteers under the Domestic Volunteer Service Act of 1973; 0) payments received under the Alaska Native Claims Settlement Act; (k) income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes; (1) payments or allowances made under the Department of Health and Human Services Low - Income Home Energy Assistance Program; L3�1' 60A-32 (m) payments received from the Job Training Partnership Act; (n) income derived from the disposition of funds of the Grand River Band of Ottawa Indians; (o) the first $2,000.00 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the Court of Claims; and (p) at the discretion of Housing Authority of the City of Santa Ana all other income exclusions recognized by the HUD Section 8 Certificate and Voucher Programs. 7. Do the persons whose income or contributions are included in item 6 above: (a) have savings, stocks, bonds, equity in real property or other form of capital investment (excluding the values of necessary items of personal property such as furniture and automobiles and interests in Indian trust land)? No Yes (b) have they disposed of any assets (other than at a foreclosure or Credit Bankruptcy sale) during the last two years at less than fair market value? No Yes (c) If the answer to (a) or (b) above is yes, does the combined total value of all such assets owned or disposed of by all such persons total more than $5,000? No Yes (d) If the answer to (c) above is yes, state: (1) the amount of income expected to be derived from such assets in the 12-month period beginning on the date of initial occupancy in the unit that you propose to rent: (2) the amount of such income, if any, that was included in item 6 above: 8. (a) Are all of the individuals who propose to reside in the unit full-time students*? No _ Yes *A full-time student is an individual enrolled as a full-time student during each of 5 calendar months during the calendar year in which occupancy of the unit begins at an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance and is not an individual pursuing a full-time course of institutional or farm training under the supervision of an accredited agent of such an educational organization or of a state or political subdivision thereof. IM 60A-33 (b) If the answer to 8(a) is yes, is at least 1 of the proposed occupants of the unit a husband and wife entitled to file a joint federal income tax return? No _ Yes 9. Neither myself nor any other occupant of the unit I/we propose to rent is the owner of the rental housing project in which the unit is located (hereinafter the "Owner"), has any family relationship to the Owner; or owns directly or indirectly any interest in the Owner. For purposes of this paragraph, indirect ownership by an individual shall mean ownership by a family member, ownership by a corporation, partnership, estate or trust in proportion to the ownership or beneficial interest in such corporation, partnership, estate or trustee held by the individual or a family member; and ownership, direct or indirect by a partner of the individual. 10. This certificate is made with the knowledge that it will be relied upon by the Borrower to determine maximum income for eligibility to occupy the unit, and I/we declare that all information set forth herein is true, correct and complete and based upon information I/we deem reliable and that the statement of total anticipated income contained in paragraph 6 is reasonable and based upon such investigation as the undersigned deemed necessary. 11. I/we will assist the Owner in obtaining any information or documents required to verify the statements made herein, including either an income verification from my/our present employer(s) or copies of federal tax returns for the immediately preceding calendar year. 12. I/we acknowledge that I/we have been advised that the making of any misrepresentation or misstatement in this declaration will constitute a material breach of my/our agreement with the Owner to lease the unit and will entitle the Owner to prevent or terminate my/our occupancy of the unit by institution of an action for ejection or other appropriate proceedings. I/we declare under penalty of perjury that the foregoing is true and correct. Executed this _ day of in the City of . California. Applicant Applicant [Signature of all persons over the age of 18 years listed in number 2 above required] MP 60A-34 FOR COMPLETION BY APARTMENT OWNER ONLY: 1. calculation of eligible income: a. Enter amount entered for entire household in 6 above: $ b. (1) If answer to 7(c) above is yes, enter the total amount entered in 7(d)(1), subtract from that figure the amount entered in 7(d)(2) and enter the remaining balance ($ ); (2) Multiply the amount entered in 7(c) times the current passbook savings rate to determine what the total annual earnings on the amount in 7(c) would be if invested in passbook savings ($ ), subtract from that figure the amount entered in 7(d)(2) and enter the remaining balance (3) Enter at right the greater of the amount calculated under (1) or (2) above: $ C. TOTAL ELIGIBLE INCOME Line La plus line l.b(3)): $ 2. The amount entered in l.c: Qualifies the applicant(s) as a Low Income Tenant(s). Does not qualify the applicant(s) as a Low Income Tenant(s). 3. Number of apartment unit assigned: Bedroom Size: _ Rent $ 4. This apartment unit [was/was not] last occupied for a period of 31 consecutive days by persons whose aggregate anticipated annual income as certified in the above manner upon their initial occupancy of the apartment unit qualified them as Low Income Tenants. 5. Method used to verify applicant(s) income: Employer income verification. Copies of tax returns. Other ( ) Manager 60A-35 INCOME VERIFICATION (for employed persons) The undersigned employee has applied for a rental unit located in a project financed under the Housing Authority of the City of Santa Ana Multifamily Housing Revenue Bond Program for persons of low income. Every income statement of a prospective tenant must be stringently verified. Please indicate below the employees current annual income from wages, overtime, bonuses, commissions or any other form of compensation received on a regular basis. Annual wages Overtime Bonuses Commissions Total current income I hereby certify that the statements above are true and complete to the best of my knowledge. Signature Date Title I hereby grant you permission to disclose my income to in order that they may determine my income eligibility for rental of an apartment located in their project which has been financed under the Housing Authority of the City of Santa Ana Multifamily Revenue Bonds. Signature Date Please sent to: INCOME VERIFICATION (for self-employed persons) I hereby attach@ copies of my individual federal and state income tax returns for the immediately preceding calendar year and certify that the information shown in such income tax returns is true and complete to the best of my knowledge. Signature 11 Date 60A-37 o. 1 pl Id z r ri n qJ 5;3m' gAna .1 G I i n F r JIA�,��,`,7y•.'__33II '„C rAlly_ ttIN��� lE0.SYG f1FNTEfl / � �'� •F/ "�' T� WUt,t:. W If�Yt `& r. ri•IA.iLh� � � !i I Y•;rl i���'.:I � >. Aft TABLE OF CONTENTS FIRST POINT PARKING MANAGEMENT PLAN SECTION 1: INTRODUCTION SECTION 2: SHUTTLE PLAN SECTION 3: VALET PLAN SAMPLE PARKING LEASE LETTER OF INTENT MAP OF POTENTIAL PARKING LOTS LISTING OF PARKING LOT OWNERS SECTION 4: SAMPLE PARKING ADDENDUM SAMPLE TENANT PARKING AND EVICTION ADVISORY FORM FIRST POINT PARKING MANAGEMENT PLAN SECTION 1- INTRODUCTION In order to conform with the requirements of the Density Bonus Agreement and project entitlement, this Parking Management Plan (PMP) is submitted to discuss the proposed development, on -site parking capacity, and additional parking related provisions that will ensure that resident parking needs are satisfactorily handled and do not become a burden for the project's neighborhood or for the City of Santa Ana. Project Description The project is located on an approximately 6.85-acre site currently addressed as 2112 and 2116 East First Street in the City of Santa Ana. The site has previously been occupied by a used car dealership (2110 E. First Street) and several other small businesses in a single story office building (2114 E. First Street). The scope of the First Point project includes demolition of these older commercial buildings (now completed) and construction of an affordable, rental, family - oriented, mixed -use community with approximately 10,000 square feet of leasable commercial space. The project will contain two structures consisting of a ground -level podium parking and five levels of residential above. A total of 552 affordable rental units will be provided on the project site. A total of 566 resident and guest parking spaces will be provided under the podium and within the First Point site plan, which equates to one space per household plus parking for the handicapped and guests. An additional 50 parking spaces will be available on -site for the commercial component and 4 spaces for the leasing office and the development's employees. The project is located within walking distance of shopping, restaurants, and a number of major employers such as Caltrans, the Social Security Administration, Kaiser Permanente, the Tustin Rehabilitation Hospital, and the Orange County Global Medical Center. Demand Analysis An analysis of parking demand was prepared by Abrams Associates Traffic Engineering, Inc. on May 2, 2018. Using conventional methods of determining parking demand and relying on widely -accepted standards, the report concludes that the on -site parking capacity proposed is more than sufficient for anticipated demand. As a requirement of this PMP, project ownership will engage an update of this parking study that further incorporates and analyzes the effect of the various parking demand mitigation commitments made in this PMP. Such report will be provided by the developer to the City of Santa Ana upon completion, within 90 days following City Council approval of the project's density bonus agreement. Such report will also update and include references to City of Santa Ana parking code requirements. The report, using standards from the Parking Generation Manual, 4th Edition, Institute of Transportation Engineers, as well as a comparison of typical affordable housing developments and affordable housing developments, concludes the following: 60A-41 "Using the assumptions above, the residential portion of the project is forecast to have an unadjusted peak parking demand of 349 vehicles. Including the SO spaces required for the retail space would increase the forecast total peak parking demand for the project to 399 parking spaces. Please note that if it were conservatively assumed that all the affordable housing sites surveyed in the Los Angeles study also had excellent transit access (and the separate reduction for transit access was eliminated from the parking calculations) then the project would have a forecast average peak parking demand of 504 vehicles. Based on the proposal to accommodate this demand with an on -site parking garage with 620 parking spaces, our conclusion is that no parking impacts to the surrounding roadways or properties in the area would be anticipated. " The analysis provided clearly demonstrates that the parking to be provided at First Point is more than sufficient based on widely -accepted methods of determining parking demand, particularly as applied to affordable housing with excellent access to transit options. Additional Parking Related Provisions In order to comply with the project's entitlement and density bonus, and in order to address concerns that resident parking behavior and project circumstances may change over time, the project owner will provide additional measures to mitigate unforeseen parking demand. Such measures will be reviewed annually between the City and the project owner and adjusted as appropriate between the owner and the City and within the bounds of the entitlement and density bonus law. All resident households will be assigned one on -site parking space. To supplement resident transportation needs, owner will provide an owner -funded, shuttle service for project residents, employees, and commercial tenant employees. The shuttle service will provide transport along a specific route to key public transit connections during peak hours 365 days per year (unless those transit options are not operating) from the hours of 6:00 a.m. to 9:00 a.m. and 3:00 p.m.to 6:00 p.m. The shuttle will run in a circuit from the project to the Santa Ana Regional Transit Center as well as ancillary off -site parking or transit options, as determined and adjusted from time to time between owner and the City. The shuttle will be operated and insured by the property and/or a third party shuttle company or property management company. The shuttle, at all times, will have a properly licensed and qualified operator. All shuttle routes and stops will be subject to mutual review and approval by the City of Santa Ana and owner. The owner will also be providing an owner -funded, valet service, which will transport residents to and from specific off -site parking facilities during the same hours as the shuttle operation. While all resident households will have one assigned parking space on site, this service is intended for the convenience of those resident households that elect to have a second vehicle, for which the project does not have on -site parking. The off -site parking options for which the valet service will be provided will be negotiated in bulk by the project owner who will collect fees paid for by the resident and make payment to the parking lot owner. 60A-42 Prior to issuance of certificate of occupancy and to generate options for residents to own and utilize additional vehicles to meet their needs, the owner will make arrangements with as many off -site parking lot owners in the project vicinity as is sufficient to meet the then -current demand for off -site parking rental. The project owner will negotiate the parking at the then -current market rate for off -site parking or better, as evidenced by comparable parking options in the City. These contracted sites will all be within a ten (10) minute drive of First Point. The parking spaces themselves will be contracted for by residents, with the owner acting as the `pass -through for payments between the parking owner and the project residents. At all times, valet service will only be offered to residents with approved, compliant, paid -for parking. This PMP includes a map of anticipated potential parking sites as well as a sample parking letter of interest. As an excess of caution, owner will diligently work to ensure that additional short-term resident -paid parking opportunities are made available at the time of initial occupancy at owner's affiliated project, Villa Court Senior Apartments at 2222 E. First Street in Santa Ana, as well as in adjacent areas that were utilized by owner's general contractor as temporary construction staging areas. As a requirement in the residential leases, all residents are required to provide information on vehicles owned and operated by any member of the household and specify where their vehicles will be parking, including providing evidence satisfactory to the project owner that such vehicles are permitted to park in such locations. To any extent that residents utilize parking in City owned lots or on private property without authorization, the project owner will issue lease violations to residents when such violations are validly reported to project owner. Project owner will initiate penalties, lease violations, and eventually the eviction process as expeditiously as the law allows and proceed to evict residents that do not comply with the project's parking policies. Residents will be required to acknowledge receipt of the project's Parking Addendum to Lease, in substantially similar form as the sample provided in this PMP, as well as to sign the owner's Tenant Parking and Eviction Advisory form which is a disclosure related to offsite parking provisions and the extreme consequences (even eviction) that can result from non-compliance. In addition to the valet service during the normal posted hours, valet support will be available at no cost to residents on a modified basis for residents needing access to their vehicles that are parked in approved off -site locations in the event that such residents are experiencing health or safety emergencies. Additional details of these programs are included in the following plan. Compliance and Enforcement In order to ensure compliance with the approved PMP, the owner agrees to submit an annual parking management plan update by December 31st of each year for the first three years following project occupancy to City of Santa Ana planning staff. Additional parking management plan updates may be requested thereafter by the City if deemed necessary by the City or developer. The report will include all relevant parking statistics, including: 0 Vacancy and occupancy of on -site parking spaces (parking counts) Number and locations of off -site parking arrangements as well as number and location of resident parking rental contracts Resident vehicle ownership Valet and shuttle schedule and usage Owner is financially responsible for providing shuttle and valet service (to the extent valet service is needed to transport residents to approved off -site parking lots) during the life of the project. In the event the owner fails to provide such services at any time during the life of the project, owner will fund a $2,500-per-day escrow account that will be utilized to fund alternative transportation to transit or to approved parking, such as rideshare services, taxi -cab, or the equivalent of a similar individualized transportation service available at the time. Further, if such cost is not funded by owner, the City may lien the property for unfunded amounts as described in this paragraph. To the extent allowed by law, the owner will institute lease provisions which limit the number of vehicles a tenant may possess during the term of occupancy and/or that require full disclosure and satisfactory parking arrangements as discussed in this PMP. Some of these provisions are already established and included in the following plan. To whatever extent the owner does not institute or implement such lease provisions and it is evident that owner is not enforcing such provisions in a timely manner, the City may implement the following consequences in this order: 1) owner will be required to rent and pay for off -site parking for any resident that has been permitted by owner (without satisfactory and timely enforcement) to routinely violate parking standards, and 2) if owner does not comply with consequence (1) in this paragraph, owner will be prevented from leasing the next available unit at the project in order to mitigate/reduce parking demand on -site, until such specific parking non-compliance is either corrected at the tenant level (meaning tenant is now in compliance or evicted) or is mitigated by owner's compliance with consequence (1). Documentation Owner agrees to cooperate with the City of Santa Ana in a timely manner to finalize any and all documentation required by staff in accordance with the project entitlement and density bonus law for the establishment of this PMP. FIRST POINT PARKING MANAGEMENT PLAN SECTION 2 - SHUTTLE PLAN Beginning at certificates of occupancy and throughout the life of the project, the First Point development will include an owner -funded shuttle service, as adjusted from time to time as approved by the City of Santa Ana, available to project residents for access to the Santa Ana Regional Transit Center (SARTC). Through the transit center, our residents will have easy and frequent access to a wide array of transportation options including Orange County Transit Authority, Metrolink and Amtrak, ensuring that our project is a fully -accredited Transit -Oriented Development. The Shuttle will also allow our residents to access additional parking lots which will contain spaces available for lease. If demand for the shuttle plan increases beyond the capacity, we will agree to purchase an additional shuttle to allow us to maintain this level of service. Hours of Operation: 6:00 a.m. to 9:00 a.m., and 3:00 p.m. to 6:00 p.m.; operates daily, year- round, except for any days that the SARTC is closed Frequency: Every 15 minutes Shuttle Capacity: 20 Passengers Cost: Free shuttle service for all First Point residents, project employees, and employees of commercial tenants Shuttle Route: FIRST POINT PARKING MANAGEMENT PLAN SECTION 3 - VALET PLAN The valet service will operate with one full-time valet employee, in order for residents to readily access off -site parking spaces they have rented. This will allow residents to arrive at First Point and be followed by valet to their registered, off -site space. The valet then will return the resident to First Point. As residents depart, the process will be reversed. Hours of Operation: 6:00 a.m. to 9:00 a.m., and 3:00 p.m. to 6:00 p.m.; operates daily, year- round Frequency: On demand Cost: Free valet service for all First Point residents, employees, and employees of commercial tenants. The off -site parking space can be contracted with First Point management, which will charge a fee to the resident. Off Hours Operation: In case of emergency, on -call property management personnel can be accessed to act as valet service or assist in coordinating transit. Immediately following are: 1) Sample Parking Lease Letter of Intent 2) Map of Potential Parking Lots 3) Listing of Parking Lot Owners 1) SAMPLE PARKING LEASE LETTER OF INTENT [PROPERTY OWNER] DATE: [Month] [Day], [Year] TO: [Property Owner] [Property Owner Street Address] [City], [State] [Zip Code] RE: Letter of Intent for Parking Arrangement [Property Street Address] Santa Ana, California (the "Property") Please allow this Letter of Intent (LOI) to specify the basic terms and conditions under which [Property Owner] as the "Arranger" will enter negotiations for lease terms on the above described Property: BASIC TERMS OF LEASE: LANDLORD: [Property Owner] TENANT: First Point I and II. LOCATION AND SIZE OF PREMISE: [Property Street Address], located in the City of Santa Ana, CA consisting of approximately [number of available] parking spaces. INTENDED USE: Monthly Parking for First Point residents TERM: [Number of Months] months. SPACES: First Point will notify [Property Owner] of number of spaces each month. PAYMENT: [Dollar Amount] per month per space. LEASE PAYMENT COMMENCEMENT DATE: Rent Payments shall commence on [Month] [Day], [Year]. EXCLUSIVE NEGOTIATIONS: Upon signing of this Letter of Intent, Landlord agrees to negotiate exclusively in good faith with Arranger. If the foregoing terms and conditions are acceptable to you, please indicate your consent by counter -executing a copy of this letter below, and thereafter return an executed copy 60A-47 to the Arranger. Upon your delivery of such counter -executed letter, we recommend a meeting to discuss the above. This letter is not an offer and as such may not be accepted to form a contract; rather, this letter serves as an expression of Tenant's interest to lease the property. We expect that any binding agreement, which would be negotiated between Arranger and Landlord, will be generally consistent with the terms and conditions outlined in this letter. Sincerely, Date: [Property Owner] TERMS ACCEPTED AND AGREED TO BY LANDLORD: First Point I and II Date: �• 120 J �Qck'„pt - _N co_ 10 M ` •� N ( N x rr N _ R �ijJ�r s i,j 1 60A-50 M 0 a � o U. A O e U z R ry Q D z O rn U A 4] jam. U o rn W O J w O n Q U A "> V i O 2 O e a V u o m O ? P 3 O N U o o U GAq N W O U o U o rn Q eiOu o U F N o ry U a o a U Q n U h or rn a U u' z O a Q U ,d ci Vt 0 Q U A Q5 A U b F o m O A 06 o m O `o rn Q U U .Vi, T V U F c O F m Q eo .] U q G h H 3 '> Ll V I'" W oN A U Z 2' U 61 v a Z e Q o y FF^ V a U 0. U v E U U ` tiE N •. T U A o E y N '�E w V •• U U A ? U v�i a L m A ti U I0. O C\ U VC • C h VJ 'n O N N Q U A C m t; _y m O N a N iA t N N N q a [S v°i �/Vi L O G\ U U m C ti V] y O N ON A U A C y fn L N N U Q - o � u V Z O C V1 U C A U � u O Z. O V N T Q Q OO a> t m O N O a U A lJ.' O N N a\ U ¢ N yG a � z O O ? N N U �/Aj A N 0. O vt T Q U C i v u 0. O h n G Q 0 A a V vt U < ` u L % O O �O r T a G^ � A � V N V1 Q' U C Q A d U Vl N V1 h UG 0 ` U 0. h Vf VI O m Q U C Q > Q % O O vl O P U A L z O vt � Q Uqq Q r N N N .N z O O K R y Vi Vl + Vl v! N y h h N y N 1% y � 'A N N R y A h .A.. N ..� V! N N N 60A-51 FIRST POINT PARKING MANAGEMENT PLAN SECTION 5 - SAMPLE PARKING RELATED LEASE DOCUMENTS TENANT PARKING AND EVICTION ADVISORY FORM This property is subject to a Parking Management Plan (PMP) required by the City of Santa Ana. The Landlord is responsible for compliance with the PMP, which requires the Landlord to collect information about Tenant's vehicles, parking stall usage, other off -site parking usage, and utilization of the offered Shuttle and Valet services. This property was designed to maximize housing units and limit parking area, thus this project's operation is not intended to accommodate households with more than two vehicles. At all times, only a maximum of one vehicle per household can be parked on site. Any second vehicle owned by a resident household, must be parked off site and in a verifiable location that does not impose on other property owners or public/city parking without authorization. See Management for information on how you can rent an off site parking space for your second vehicle, as needed. By signing this form, tenant(s) affirm that Management has explained the PMP, and that tenant(s) understand the obligations of both the Tenant and the Landlord underthe PMP. The PMP is available upon request fortenant review in the on -site property management office. TENANT UNDERSTANDS AND CERTIFIES THAT THE HOUSEHOLD WILL COMPLY WITH THE PMP. TENANT UNDERSTANDS THAT NON-COMPLIANCE WITH THE PMP AND WITH THE PARKING ADDENDUM TO LEASE WILL RESULT IN LEASE VIOLATIONS, FINES, AND WILL CONSTITUTE GROUNDS FOR EVICTION. [Tenant Acknowledgment Signature] [Tenant Acknowledgment Signature] [Tenant Acknowledgment Signature] [Tenant Acknowledgment Signature] 60A-52 First Point 1 and 11 Parking Addendum to Lease Year: Make: Model: Color: Plate#: I Permit#: Current Registration Verified by Agent: Current Insurance Verified by Agent: Year: I Make: VEHICLE 112 I Model: Color: I Plate #: I Permit #: Current Registration Verified by Agent: Current Insurance Verified by Agent: VEHICLE #3 — No household may lease that intends to park more than 2 vehicles onsite or offsite. This Parking Addendum to the Lease is between First Point I or II and the Tenant(s) of unit # as listed on the Lease Agreement. The single parking space assigned to your apartment is# . Parking on the premises is subject to the terms contained within the Lease Agreement as well as those detailed in this Addendum to the Lease. Violation of these terms is considered a violation of the Lease. Repeated parking violations may lead to eviction. 1. All vehicles must be registered and insured in accordance with California law and must display current registration stickers and license plates. 2. Vehicles must be parked front end in first. No backing into spaces is permitted. 3. All vehicles parked on the premises must be in operable condition and must move at least every 48 hours. Storage of vehicles is prohibited on the premises. 4. Vehicles with fluid leaks are prohibited from parking on the premises. Tenant is responsible for clean-up costs associated with any excessive fluid leaking from their vehicle(s) in their assigned parking space or anywhere else their vehicle is consistently parked on the property. Tenant further agrees to be liable for any and all damage to the premises caused by their vehicle or driving. 5. Vehicle maintenance and car washing are not permitted on the premises. No car parts may be stored on the premises. 6. No parking of any type of oversized or recreational vehicle is permitted on the premises, including but not limited to motor homes, trailers, boats, etc. 7. Parking in the numbered spaces throughout the premises is by assignment only. Tenants may only park in their own assigned space. S. Tenants are prohibited from parking in other reserved spaces (Commercial, Office, Postal, etc.) or in violation of posted signage. 9. Loading/Unloading spaces are limited to 30 minute parking and are intended for loading/unloading a vehicle or pickup/dropoff of passengers. 10. Designated Visitor spaces are available to all vehicles on a first -come, first -serve basis from 7am to 7pm daily. Visitor spaces are available to vehicles with valid permits only from 7pm to 7am daily. 11. If a guest will be parking onsite between 7pm and 7am, you or they must request and display a temporary parking permit from Management. 12. Tenant is responsible for ensuring that their guests are informed of and comply with all parking policies. Parking Permits 1. Parking Permit Issuance: a. Parking permits will be issued to tenants at the time of lease signing and will be valid for one year. Permits will be renewed annually thereafter at household recertification. b. Parking permits expire upon termination of tenancy. c. Lost parking permits may be replaced for a fee of $25. stolen parking permits may be replaced once 60A-53 without charge if the related police report is provided to the office. Any lost or stolen permit will be recorded as invalid. d. The following will be required for the issuance of a parking permit: i. Current vehicle registration in the name of a tenant/occupant of the lease ii. Proof of active insurance 2. Display of Permits a. Parking permits shall be affixed to the vehicle's rear window on the lower corner of the driver's side so that the permit is clearly visible from outside the vehicle. Vehicles with heavily -tinted rear windows shall affix the permit to the vehicle's front windshield on the lower passenger side corner. J. Temporary parking permits should be hung from the rear-view mirror. c. Rental vehicles or new vehicles replacing an existing vehicle are required to have a parking permit or temporary parking permit if parked on site for more than 24 hrs. d. Misuse, fraudulent possession, or unauthorized reproduction of Alexander Station parking permits is prohibited and may result in the immediate loss of parking privileges. 3. Numberof Permits a. No more than two permits will be issued to any unit. Permits will identify both cars as eligible to park in the unit's single onsite parking space and an offsite parking agreement will be required for the second vehicle. Households with more than two vehicles are not eligible to rent at First Point I or 11. Towing Procedures Vehicles may be towed any time at vehicle owner's expense if they are parked in a red zone, handicapped space (without valid placard or plate), fire lane, non -parking area, space assigned to other Tenant(s), or if they are blocking traffic flow on the premises. Vehicles parked in violation of the above terms or in violation of posted signage will also be towed at the vehicle owner's expense. Landlord assumes no liability for condition of vehicle in the event it is towed. Off -site Parking Tenants of First Point I or II are prohibited from parking at nearby private property or city property unless permitted by such owner/city. If your vehicle is parked without authorization in these areas and reported to Management (and verified by Management), a Lease Violation will be issued. Repeated lease violations without satisfactory correction will be grounds for eviction. Tenants and their guests are also expected to comply with all pertinent laws regarding public parking on the streets surrounding First Point I and 11. Any tenant household with a second vehicle will be required to provide satisfactory evidence to Management upon request and at least annually of appropriate offsite parking arrangements. An off -site parking space can be contracted with First Point management, which will charge a fee to the tenant. Every adult tenant must read andsign the Tenant Parking and Eviction Advisory Form. 60A-54 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: RECEIVE AND FILE STAFF REPORT APPROVING TENTATIVE PARCEL MAP NO. 2018-02 (COUNTY MAP NO. 2016-165) TO COMBINE TWO LOTS INTO ONE AND CREATE TWO UNITS FOR CONDOMINIUM PURPOSES AT 2110, 2114, AND 2020 EAST FIRST STREET — JOY HENDRICKS, APPLICANT (STRATEGIC PLAN NOS. 3, 2; 5, 3) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 161 Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO f� FILE NUMBER a CITY MAITAGER RECOMMENDED ACTION It is recommended that the City Council receive and file the staff report approving Tentative Parcel Map No. 2018-02 as conditioned. ZONING ADMINISTRATOR ACTION At its regular meeting on July 31, 2019, the Zoning Administrator adopted a resolution approving Tentative Parcel Map No. 2018-02 as conditioned to combine two lots into one and create two units for condominium purposes at 2110, 2114, and 2020 East First Street located in the General Commercial (C-2) zoning district. The approval was made pursuant to Section 34-126 of the Santa Ana Municipal Code (SAMC). The Zoning Administrator modified condition no. 6 to require approval and execution of the density bonus agreement prior to recordation of the final map, and added condition no. 7 to require coordination with the southern adjacent property owner to determine appropriate perimeter wall heights (Exhibit A). DISCUSSION Joy Hendricks, representing Broomell Commercial Properties (property owner), is requesting approval of a tentative parcel map to combine two lots into one and create two air -space condominium units (one per each building) at the project site located at 2110, 2114, and 2020 East First Street. Applications for residential subdivisions of fewer than five parcels require approval of a parcel map by the Zoning Administrator pursuant to Section 34-126 of the Santa Ana Municipal Code (SAMC). TPM No. 2018-02 — Subdivide Parcel at 2110, 2114, & 2020 E. First Street August 20, 2019 Page 2 The subject site is located in the General Commercial (C-2) zoning district and has a General Plan land use designation of District Center (DC). The site is located in the Metro East Mixed Use (MEMU) Overlay Zone (OZ-1). The entitled development is consistent with both the zoning and General Plan land use designations. Land uses surrounding the site include a midrise office building to the west, a private school to the south located in Tustin, a vacant automotive (commercial) leasing site to the east, and commercial uses and a permanent supportive housing site to the north. Table 1: Project and Location Information Item Information Project Address 2110, 2114, and 2020 East First Street Nearest Intersection First Street and Golden Circle Drive General Plan Designation District Center (DC) Zoning Designation General Commercial (C-2) with the Metro East Mixed Use (MEMU) Overlay Zone desi nation Surrounding Land Uses North Commercial and Residential East Vacant South School West Office Uses Property Size 6.89 Acres Existing Site Development The site is currently vacant Use Permissions Uses Metro East Mixed Use (MEMU) Overlay Zone Development Standards Metro East Mixed Use (MEMU) Overlay Zone Project Description The project is located on a 6.89-acre parcel of land located on the south side of East First Street between Golden Circle Drive and Tustin Avenue. The property is rectangular in shape and flat. The site is currently vacant but has an approved entitlement to allow a 552-unit affordable mixed - use commercial and residential development on the site. AMG and Associates submitted plans for a mixed -use, affordable development at the subject site in August 2016. Through the Development Project Review process, the project was refined in scope to include a two -building development consisting of 552 affordable residential units and 10,000 square feet of leasable commercial space, landscaping, a leasing office, parking, and additional onsite amenities. Shortly after the development was approved by the Planning Commission in June 2018, the applicant expressed their intent to submit a subdivision map to create two parcels on the development site. The subdivision is intended to facilitate the financing of the housing project's types, one family housing and the other for seniors. The required Density Bonus Agreement for the project is subject to separate City Council approval. Staff worked with the applicant to ensure the subdivision type proposed conformed to City standards, and the applicant submitted the subject �. 1 TPM No. 2018-02 — Subdivide Parcel at 2110, 2114, & 2020 E. First Street August 20, 2019 Page 3 tentative parcel map for two airspace condominium units in August 2018. Proposals to create subdivisions of less than five parcels, such as the current project, require review and approval by the Zoning Administrator. Subdivision requests are governed by Chapter 34 and Chapter 41 of the SAMC and the State Subdivision Map Act. Pursuant to Section 66473.5 and 66474 of the California Subdivision Map Act, applications for tentative parcel maps are approved when it can be shown that findings can be made in support of the request. Specifically, these findings require that the proposed project be: • Consistent with the General Plan; • In conformance with all applicable City ordinances; • Physically suitable for the type and density of the proposed project; • Designed to not cause substantial environmental damage or substantially and avoidably injure fish and wildlife or their habitat; • Designed to not cause serious public health problems; and • Designed to not conflict with easements necessary for public access through or use of the property must be made. Using this information staff has prepared the following analysis, which, in turn forms the basis for the recommendation contained in this report. In analyzing the applicant's request, staff believes that the following analysis warrants approval of the tentative parcel map. The applicant is seeking approval of a tentative parcel map to subdivide the subject parcels into a single lot with two air -space condominium units, one per entitled building on the site. In conjunction with the parcel map, the applicant intends to start construction on the mixed -use development entitled by the Planning Commission on June 4, 2018 (Site Plan Review No. 2017-9). Since this application is to create two air -space condominium units, no major issues were identified with the proposal. In reviewing the project, staff determined that the proposal as conditioned is consistent with the various provisions of the City's Zoning Code, the C-2 zoning district and MEMU Overlay Zone standards, with the exceptions of setbacks, parking, open space, and driveway widths, which require approval of concessions and waivers as identified in the proposed density bonus agreement. Conditions of approval are proposed for the map to ensure the development site is maintained and does not become a blight on the area, and that the project's required density bonus agreement be approved prior to approval and recording of the final map. No adverse environmental impacts to fish or wildlife populations were identified as the project site is located in a built -out, urbanized area. Finally, the tentative parcel map was found to be consistent with the California Subdivision Map Act and Chapters 34 and 41 of the Municipal Code. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act (CEQA), the initial project, Site Plan Review No. 2017-09, considered by the Planning Commission on June 4, 2018, was determined to be adequately evaluated in the previously certified EIR No. 2006-01 as per Section 15162 of the CEQA guidelines. All mitigation measures in EIR No. 2006-01 and associated Mitigation TPM No. 2018-02 — Subdivide Parcel at 2110, 2114, & 2020 E. First Street August 20, 2019 Page 4 Monitoring and Reporting Program (MMRP) have been enforced and continue to apply to the proposed project. The proposed subdivision does not include substantial changes to the already -approved development project that require major revisions of the previous EIR, and no substantial changes to the circumstances under which the subdivision is being taken since the original Site Plan Review's approval by the Planning Commission in June 2018. Moreover, no information of substantial importance has been received since the original EIR's certification in 2007 and the Subsequent EIR's certification in 2018 that trigger knowledge or impacts from new significant effects, increase in severity of significant effects, new mitigation measures that are considerably different from the original mitigation measures or that are now feasible. As a result, pursuant to Section 15162 of the CEQA guidelines, no further CEQA documentation will be required for the project. As outlined in this Request for Council Action, the project and subdivision are consistent with the City's General Plan and the MEMU regulating plan. Further, it is consistent with the density bonus provisions outlined in the City's Housing Opportunity Ordinance. The project site is located within city limits and is in an urbanized setting surrounded by urban uses, and the project has not been identified as habitat for endangered, rare or threatened species. No additional environmental review is required for the subdivision. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal No. 3 (Economic Development) Objective No. 2 of creating new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies. The item also supports Goal 5 (Community Health, Livability, Engagement & Sustainability) Objective No. 3 to facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods. FISCAL IMPACT There is no fiscal impact associated with this action. O Minh Thai Executive Director Planning and Building Agency AP:la 8:RFCA\2019\08-20-19\TPM 2018-02 RFCA Exhibit: 1. Request for Zoning Administrator Action for Tentative Parcel Map No. 2018-02 — July 31, 2019 �. 1 EXHIBIT 1 REQUEST FOR Zoning Administrator Action ZONING ADMINISTRATOR MEETING DATE: JULY 31, 2019 TITLE: PUBLIC HEARING — FILED BY JOY HENDRICKS FOR TENTATIVE PARCEL MAP NO.2018.02 (COUNTY MAP NO.2016-165) TO COMBINE TWO LOTS INTO ONE AND CREATE TWO UNITS FOR CONDOMINIUM PURPOSES AT 2110, 2114, AND 2020 EAST FIRST STREET (STRATEGIC PLAN NO. 3, 2; 5, 3) Prepared by All Pezeshkpour, AICP RECOMMENDED ACTION ZONING ADMINISTRATOR SECRETARY APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For DENIED ❑ Applicant's Request ❑ Staff Recommendation CONTINUED TO Planning Ma ager Adopt a resolution approving Tentative Parcel Map No. 2018-02 (County Map No. 2016-165) as conditioned. Request of Applicant Joy Hendricks, representing Broomell Commercial Properties (property owner), is requesting approval of a tentative parcel map to combine two lots into one and create two condominium units (one per each building) at the project site located at 2110, 2114, and 2020 East First Street. Applications for residential subdivisions of fewer than five parcels require approval of a parcel map by the Zoning Administrator pursuant to Section 34-126 of the Santa Ana Municipal Code (SAMC). Prolect Location and Site Description The project is located on a 6.89-acre parcel of land located on the south side of East First Street between Golden Circle Drive and Tustin Avenue. The property is rectangular in shape and flat. The site is currently vacant but has an approved entitlement to allow a 552-unit affordable mixed -use commercial and residential development on the site. The subject site, is located In the General Commercial (C-2) zoning district and has a General Plan land use designation of District Center (DC). The site is located In the Metro East Mixed Use (MEMU) Overlay Zone (OZ-1). The entitled development is consistent with both the zoning and General Plan land use designations. Land uses surrounding the site Include a middse office building to the west, a private school to the south located in Tustin, a vacant automotive (commercial) leasing site to the east, and commercial uses and a permanent supportive housing site to the north. Tentative Parcel Map No. 2018-02—AMG First Point Subdivision July 31, 2019 Page 2 Prolect Description The applicant is requesting approval of a parcel map to combine two existing lots into one and create two condominium units, one per each building that will be developed on the site. No subdivision for each residential or commercial unit is proposed. Prolect Background AMG and Associates submitted plans for a mixed -use, affordable development at the subject site in August 2016. Through the Development Project Review process, the project was refined in scope to Include a two -building development consisting of 652 affordable residential units and 10,000 square feet of leasable commercial space, landscaping, a leasing office, parking, and additional onsite amenities. Shortly after the development was approved by the Planning Commission in June 2018, the applicant expressed their Intent to submit a subdivision map to create two parcels on the development site. The subdivision Is Intended to facilitate the financing of the housing projecfs types, one family housing and the other for seniors. The required Density Bonus Agreement for the project Is subject to separate City Council approval and is scheduled for the August 20, 2019 City Council meeting. Staff worked with the applicant to ensure the subdivision type proposed conformed to City standards, and the applicant submitted the subject tentative parcel map for two airspace condominium units in August 2018. Proposals to create subdivisions of less than five parcels, such as the current project, require review and approval by the Zoning Administrator. Prolect Analysts Subdivision requests are governed by Chapter 34 and Chapter 41 of the SAMC and the State Subdivision Map Act. Pursuant to Section 66473.5 and 66474 of the California Subdivision Map Act, applications for tentative parcel maps are approved when it can be shown that findings can be made in support of the request. Specifically, these findings require that the proposed project be. • Consistent with the General Plan; • In conformance with all applicable City ordinances; • Physically suitable for the type and density of the proposed project; • Designed to not cause substantial environmental damage or substantially and avoidably Injure fish and wildlife or their habitat; • Designed to not cause serious public health problems; and • Designed to not conflict with easements necessary for public access through or use of the property must be made. Using this information staff has prepared the following analysis, which, in turn forms the basis for the recommendation contained in this report. In analyzing the applicants request, staff believes that the following analysis warrants approval of the tentative parcel map. The applicant is seeking approval of a tentative parcel map to subdivide the subject parcels into a single lot with two condominium units, one per entitled building on the site. In conjunction with the Tentative Parcel Map No. 2018-02 — AMG First Point Subdivision July 31, 2019 Page 3 parcel map, the applicant intends to start construction on the mixed -use development entitled by the Planning Commission on June 4, 2018 (Site Plan Review No. 2017-9). Since this application is to create two condominium units, no major issues were identified with the proposal. in reviewing the project, staff determined that the proposal as conditioned Is consistent with the various provisions of the City's Zoning Code, the C-2 zoning district and MEMU Overlay Zone standards including lot size, lot frontage, setbacks, lot coverage, and parking, as well as the City's General Plan. Conditions of approval are proposed for the map to ensure the development site Is maintained and does not become a blight on the area, and that the projects required density bonus agreement be approved prior to approval of the final map. No adverse environmental Impacts to fish or wildlife populations were identified as the project site is located in a built -out, urbanized area. Finally, the tentative parcel map was found to be consistent with the California Subdivision Map Act and Chapters 34 and 41 of the Municipal Code. Public Notification The project site is located within the boundaries of the Lyon Street Neighborhood Association. The president of this Neighborhood Association was contacted by staff and was notified by mall 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 malled notices were sent to all property owners within 500 feet of the project site. At the time of this printing, no areas of concern were raised, nor had any correspondence, either written or electronic, been received from the neighborhood president or from any members of the public. CEQA Compliance In accordance with the California Environmental Quality Act (CEQA), the initial project, Site Plan Review No. 2017-09, considered by the Planning Commission on June 4, 2018, was determined to be adequately evaluated in the previously certified EIR No. 2006-01 as per Section 15162 of the CEQA guidelines. Ail mitigation measures in EIR No. 2006-01 and associated Mitigation Monitoring and Reporting Program (MMRP) have been enforced and continue to apply to the proposed project. The proposed subdivision does not include substantial changes to the already -approved development project that require major revisions of the previous EIR, and no substantial changes to the circumstances under which the subdivision is being taken since the original Site Plan Review's approval by the Planning Commission In June 2018. Moreover, no information of substantial importance has been received since the original EIR's certification in 2007 and the Subsequent EIR's certification in 2018 that trigger knowledge or Impacts from new significant effects, increase in severity of significant effects, new mitigation measures that are considerably different from the original mitigation measures or that are now feasible. As a result, pursuant to Section 15162 of the CEQA guidelines, no further CEQA documentation will be required for the project. As outlined in this staff report, the project and subdivision are consistent with the City's General Plan and the MEMU regulating plan. Further, it is consistent with the density bonus provisions outlined in the City's Housing Opportunity Ordinance. The project site Is located within city limits and is less �. 1 Tentative Parcel Map No. 2018-02 — AMG First Point Subdivision July 31, 2019 Page 4 than five acres in size. It is already in an urbanized setting surrounded by urban uses, and the project has not been identified as habitat for endangered, rare or threatened species. No additional environmental review is required for the subdivision. Strategic Plan Alignment Approval of this item supports the City s efforts to meet Goal No. 3 (Economic Development) Objective No. 2 of creating new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies. The Item also supports Goal 5 (Community Health, Livability, Engagement & Sustalnability) Objective No. 3 to facilitate diverse housing opportunities and support efforts to preserve and Improve the livability of Santa Ana neighborhoods. Conclusion Based on the analysis provided within this report, staff recommends that the Zoning Administrator approve Tentative Parcel Map No. 2018-02 as conditioned. f1 All Pezeshkpour, AICP Senior Planner AP:sb 3:1ZOnlnO Ad"Mktr2ta12019107a1.2019%TPM 18-2 AMG Rmt POIn107312019a Exhibits: 1. Resolution 2, Vicinity Map and Aerial View 3. Site Plan 4. Tentative Parcel Map EXHIBIT 7 LS 07.24.19 RESOLUTION NO. 2019-05 A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF SANTA ANA APPROVING TENTATIVE PARCEL MAP 2018-02 (COUNTY MAP NO. 2016-165) AS CONDITIONED TO COMBINE A SITE CONSISTING OF TWO PARCELS INTO ONE LOT AND CREATE TWO AIRSPACE CONDOMINIUM UNITS AT 2110, 2114, AND 2020 EAST FIRST STREET BE IT RESOLVED BY THE ZONING ADMINISTRATOR OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Zoning Administrator of the City of Santa Ana hereby finds, determines and declares as follows: A. Applicant is requesting approval of a Tentative Parcel Map to allow the subdivision of a site consisting of two parcels into one lot with two condominium units at 2110, 2114, and 2020 East First Street. B. Santa Ana Municipal Code Section 34-126 requires approval of a Tentative Parcel Map by the Zoning Administrator. C. On July 31, 2019, the Zoning Administrator held a duly noticed public hearing on Tentative Parcel Map 2018-02. D. The Zoning Administrator of the City of Santa Ana determines that the following findings, which must be established in order to approve this Tentative Parcel Map pursuant to Santa Ana Municipal Code (SAMC) Section 34-126 and the State Subdivision Map Act, have been established for Tentative Parcel Map 2018-02: 1. The proposed project, as conditioned, and its design and improvements are consistent with the General Commercial (C-2) zoning district and Metro East Mixed Use (MEMU) Overlay Zone (OZ-1) provisions and are otherwise consistent with all other Elements of the General Plan. The proposed project, as conditioned, and its design and improvements will be consistent with the District Center (DC) land use designation of the General Plan and are otherwise consistent with all other elements of the General Plan and any applicable specific plans. The proposed subdivision of land will create two condominium units, one per building entitled under Site Plan Review No. 2017-9, for the project site, that will remain consistent with the various provisions of the General Plan, including the maximum allowable floor area ratio. Resolution No. 2019-05 Page 1 of 6 LS 07.24.19 6. The design or improvements of the proposed project will not conflict with easements necessary for public access through or use of the property within the proposed project. The design or improvements of the proposed project will not conflict with easements necessary for public access through or use of the property within the proposed project. Reciprocal access agreements between the project site and the adjacent midrise office building to the west at 2020 East First Street have been recorded, ensuring that all required life -safety access requirements will be maintained. The Applicant will ensure that any/all additional necessary easements, including but not limited to access, egress and drainage between the two buildings on the project site are provided once construction commences on the sites. Section 2. In accordance with the California Environmental Quality Act (CEQA), the initial project, Site Plan Review No. 2017-09, considered by the Planning Commission on June 4, 2018, was determined to be adequately evaluated in the previously certified EIR No. 2006-01 as per Section '15162 of the CEQA guidelines. All mitigation measures in EIR No. 2006-01 and associated Mitigation Monitoring and Reporting Program (MMRP) have been enforced and continue to apply to the proposed project. Pursuant to Section 15162 of the CEQA guidelines, when an EIR has been certified or a negative declaration adopted for a project, no subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: (1) Substantial changes are proposed in the project which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete or the negative declaration was adopted, shows any of the following: (A) The project will have one or more significant effects not discussed in the previous EIR or negative declaration; Resolution No. 2019-06 Page 3 of 6 60B-11 LS 07.24.19 (B) Significant effects previously examined will be substantially more severe than shown in the previous EIR; (C) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (D) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. The proposed subdivision does not include substantial changes to the already -approved development project that require major revisions of the previous EIR, and no substantial changes to the circumstances under which the subdivision, is being taken since the original Site Plan Review's approval by the Planning Commission in June 2018. Moreover, no information of substantial importance has been received since the original EIR's certification in 2007 and the Subsequent EIR's certification in 2018 that trigger knowledge or impacts from new significant effects, increase in severity of significant effects, new mitigation measures that are considerably different from the original mitigation measures or that are now feasible. As a result, pursuant to Section 15162 of the CEQA guidelines, no further CEQA documentation will be required for the project. As outlined in the Planning Commission staff report, the project and subdivision are consistent with the City's General Plan and the MEMU regulating plan. Further, it is consistent with the density bonus provisions outlined in the City's Housing Opportunity Ordinance. The project site is located within city limits. It is already in an urbanized setting surrounded by urban uses, and the project has not been identified as habitat for endangered, rare or threatened species. No additional environmental review is required for the subdivision. Section 3. The Applicant agrees to indemnify, hold harmless, and defend the City of Santa Ana, its officials, officers, agents, and employees, from any and all liability, claims, actions or proceedings that may be brought arising out of its approval of this project, and any approvals associated with the project, including, without limitation, any environmental review or approval, except to the extent caused by the sole negligence of the City of Santa Ana. Section 4. The Zoning Administrator of the City of Santa Ana after conducting the public hearing hereby approves Tentative Parcel Map 2018-02, as conditioned as set forth in Exhibit A attached hereto and incorporated herein by reference, for the property located at 2110, 2114, and 2020 East First Street. This decision is based upon the evidence submitted at the abovesaid hearing, which includes, but is not limited to: the Request for Zoning Administrator Action dated July 31, 2019, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Resolution No. 2019-05 Page 4 of 6 60B-12 LS 07.24.19 ADOPTED this 31" day of July, 2019. Verny Carvajal, AICP Zoning Administrator APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Sarah Bernal, Recording Secretary, do hereby attest to and certify the attached Resolution No. 2019-05 to be the original resolution adopted by the Zoning Administrator of the City of Santa Ana on July 31, 2019. Date: --7/JI111 Recording Secretary City of Santa Ana Resolution No. 2019-05 Page 5 of 6 60B-13 LS 07.24.19 EXHIBIT A Conditions of Approval Tentative Parcel Map No. 2018-02 is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with all applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code and all other applicable regulations. The Applicant must comply in full with each and every condition listed below prior to exercising the rights conferred by this approval, The Applicant must remain in compliance with all conditions listed below throughout the life of the tentative parcel map. Failure to comply with each and every condition may result in the revocation of the tentative parcel map. Two copies of the recorded final parcel map shall be submitted each to the Planning Division, Building Division and Public Works Agency within 10 days of recordation. 2. The tentative parcel map, final map and all improvements required to be made or installed by the subdivider shall be in accordance with the requirements and design standards and specifications of the City of Santa Ana Municipal Code and the requirements of the State Subdivision Map Act. 3. Prior to recordation of the final map, the Applicant shall submit for review and approval Conditions, Covenants and Restrictions (CC&R's) for the project. At a minimum, the CC&R's shall cover access, egress, drainage, and landscape maintenance. 4. The project must be in compliance with the provisions of Development Projeci Review/TPM (TPM No. 2018-02). 5. The property shall be maintained at all times. All weeds, debris and graffiti shall be removed within 24 hours. Further, the perimeter fence shall be maintained in a clean and sturdy condition. 6. Prior to final map approvals by the City Council and prior to County map recordation, a density bonus agreement must be executed between the City of Santa Ana and the property owner(s) and/or developer(s). (Modred by the Zoning Administrator on July 31, 2019.) 7. Prior to issuance of the certificate of occupancy, the applicant shall coordinate_ with the southern adjacent property owner to determine appropriate wallifence heights suitable to both properties (Added by the Zoning Administrator on July 31, 2019.) Resolution No. 2019-05 Page 6 of 6 L. 1 EXHIBIT 2 60B-15 This page left blank intentionally. OD Eta! JJ ij E Main St P. I'u This page left blank intentionally. EXHIBIT 3 This page left blank intentionally. 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P •lti�wLv P y3W ���±� ^a Ike Hui �p�J $a® pp�g�g ��q°�`��g Noll 9=e®� {c����p 10 11024 INS 5oll MI .e $ p p p p p o. 1 - REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: PUBLIC HEARING —APPROVE ORDINANCE AMENDMENT NO. 2019-01 TO AMEND CERTAIN SECTIONS OF CHAPTERS 18, 21, AND 40 OF THE SANTA ANA MUNICIPAL CODE ALLOWING VERTICAL AND HORIZONTAL INTEGRATION OF CANNABIS BUSINESSES; UPDATING OWNERSHIP TRANSFERS, PROCEDURAL STANDARDS AND REQUIREMENTS, SECURITY DEPOSITS, AND VARIOUS ADMINISTRATIVE PROCESSES; UPDATING AND STREAMLINING REGULATORY COMPONENTS; REDUCING CANNABIS TESTING TAXES TO TWO PERCENT OF GROSS RECEIPTS; ADOPTING A CANOPY MEASUREMENT AND SQUARE FOOTAGE ALLOCATION SERVICE FEE; AND AUTHORIZING AMENDMENT OF THE COMMERCIAL CANNABIS OPERATING AGREEMENT TEMPLATE (STRATEGIC PLAN NOS. 3, 2; 3, 3; 3, 5; 4,3) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 181 Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt an ordinance allowing vertical integration of certain commercial cannabis businesses; updating operational and procedural standards for implementing the City's medicinal and commercial cannabis ordinances, decrease security deposit amount requirements, compute square footage cannabis taxes based on allocation of gross square footage usage; and reducing the commercial cannabis testing laboratory tax from five (5) to two (2) percent. 2. Adopt an ordinance amending various sections of Chapters 18 and 40 of the Santa Ana Municipal Code addressing medicinal cannabis purchasing age, employee badges, manufacturing permit requirements, and ordinance administration and implementation. 3. Adopt a resolution reducing the gross receipts tax on commercial cannabis testing laboratories from five (5) to two (2) percent. 4. Adopt a resolution implementing a canopy measurement service fee and an allocated square footage measurement service fee to cover the City's cost in independently verifying the allocation of square footage usage by commercial cannabis businesses. 75A-1 Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates August 20, 2019 Page 2 5. Adopt a resolution amending Resolution No. 2017-074 authorizing amendment of the commercial cannabis operating agreement template to identify social equity goals and requirements and specify requirements for Community Benefit and Sustainable Business Practices Plans and authorize the city manager to execute the cannabis operating agreements. BACKGROUND The City of Santa Ana permits a variety of types of cannabis business activity, which include retail sales of medicinal and adult -use cannabis, and cannabis cultivation, distribution, manufacturing, and testing. These cannabis business activities were permitted through adoption of multiple ordinances beginning with Measure BB (Ordinance NS-2684) in November 2014 ending with Ordinance NS-2944 in May 2018. In November 2018, Santa Ana voters approved Measure Y (Ordinance NS-2962), which established commercial cannabis business license taxes for adult -use cannabis retail sales, cannabis cultivation, distribution, manufacturing, and testing. Medicinal cannabis retail sales taxes were not modified by Measure Y and continue to be subject to taxes pursuant to Measure BB. Multiple changes to State cannabis laws and changes in market demands prompted the City to revisit its ordinances and tax collection to ensure that Santa Ana maintain its competitive position in the region, remain compliant with applicable State laws, and streamline its implementation of cannabis taxation. When added to Santa Ana's local cannabis taxes, the State's assessments on cannabis goods, which include sales tax, excise cannabis tax, and cultivation tax, result in legally -operating and permitted commercial cannabis businesses having to confront a combined state and local tax rate exceeding 50 percent of the retail sale value of their cannabis goods. This 50-percent rate discourages businesses from seeking the required permits to operate legally and in tandem with a cumbersome and rapidly -changing regulatory framework can foster a continued illicit cannabis market, which is to the detriment of Santa Ana's permitted operators. DESCRIPTION & BACKGROUND Table 1 (Proposed Amendments to Chapter 21) describes the finance -related ordinance amendments. Additional details are provided in the subsections that follow. Table 1: Proposed Financial Amendments Item Impact Vertical and Horizontal Amendment: Integration (SAMC Sections 21-131.2 and 21- Allow vertical and horizontal integration of business structures for 142) businesses engaging in multiple types of commercial cannabis business activity. Includes allowance for vertical and horizontal integration of commercial cannabis business activities involving both medicinal and nonmedicinal cannabis retail businesses. Impacts: . Incentivizes cannabis businesses to expand operations within the City and encourages new businesses to enter the Santa Ana marketplace. 9 Allows for the7djeApA43 of intraparty sales and/or transfers of cannabis Ordinance Amendment August 20, 2019 Page 3 No. 2019-01 — Commercial Cannabis Ordinance Updates Table 1: Proposed Financial Amendments Item Impact and cannabis products occurring within a single integrated cannabis business from reportable gross receipts of cannabis businesses. • Reduces the net negative effect of multi -level taxation. Security Deposits (SAMC Amendment: Section 21-80, 21-80.1, 21- 86, and 21-136) Amends Ordinance NS-2962 to allow a single security deposit to cover multiple types of vertically/ horizontally integrated commercial cannabis business activities conducted by the same ownership regardless of form of business structure. Impacts: • Reduces overall security deposit requirement to a maximum amount of $10,000. • Allows two or more vertically/horizontally integrated cannabis businesses to be covered by a single deposit. • Implements well-defined processes for handling deposits, their application, replenishment, and release as well as requirements for close-out audits and other guards against loss of taxes due to transfer of ownership or termination of business. Alternate Square Footage Amendment: Tax (SAMC Section 21-133) Amends Ordinance NS-2962 to allow certain vertically and/or horizontally integrated commercial cannabis businesses to base their alternate square footage tax calculations on measured allocated gross square feet rather than total gross square feet. Impact: • Allows distribution and manufacturing cannabis businesses that are vertically or horizontally integrated to report actual allocated square footage utilized upon verification by the City in place total square footage of premises. Testing Laboratories Amendment: Reduce Tax Rate from 5 to 2 Percent Amends Ordinance NS-2962 to reduce the gross receipts tax rate on testing laboratories and testing facilities. Impact: • Allows the City to maintain its competitive position with regards to cannabis testing which is the most mobile and easily re -locatable class of commercial cannabis business. 75A-3 Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates August 20, 2019 Page 4 Financial Amendments (Chapter 21) Vertical and Horizontal Cannabis Business Integration Santa Ana voters approved Measure Y in November 2018, which established various tax rates for legally -operating and permitted commercial cannabis businesses in the City. In tandem with preparation of the measure, City officials met with cannabis industry representatives to discuss vertical and horizontal integration, security deposits and substitution of allocated gross square footage vs. total square footage for certain types of commercial cannabis businesses. Subsequently, City staff met with cannabis industry representatives and reviewed proposed changes to Measure Y in order to address the new tax confronting cannabis businesses and to incentivize legal operators throughout Santa Ana. The City's current regulatory ordinances permit co -location of multiple commercial cannabis business activities on the same site along with medicinal cannabis retail activity; the proposed revisions to Chapter 21 will ensure that these co -located business activities are vertically and/or horizontally integrated under the business license code as well. Additionally, concerns related to reducing the amount of security deposits and accommodating use of allocated gross square footage in the computation of the alternate gross square footage tax payable by commercial cannabis businesses engaged in distribution and manufacturing are likewise addressed below. An understanding was reached with industry representatives that the City would be open, via a subsequent ordinance as provided under the terms of Measure Y, to the adoption of vertical/horizontal integration, and reducing and capping the amount of security deposits and applying in cases of vertically/horizontally integrated cannabis businesses, a single security deposit. With regard to the concept of vertical/horizontal integration which relates to the City's recognition that state law, by requiring separate licensure for certain separate aspects of commercial cannabis business (cultivation, distribution, manufacturing, and retail sales), consciously adopts a horizontally integrated regulatory scheme as opposed to a vertically integrated scheme adopted in other states. Other states that utilize horizontal integration for regulatory purposes and prohibit vertical integration at the regulatory level include Illinois and Washington. While horizontal integration carries with it certain benefits in terms of maintaining a more open, participatory, and business -friendly marketplace at the state level, it also results in a single integrated cannabis business being subject to multiple state and local tax assessments. The state assessments - sales tax, excise cannabis tax, and cultivation tax - when added to local taxes, such as Santa Ana's, mean that a single integrated cannabis business could face a combined state and local tax rate exceeding 50 percent of the retail sale value of their cannabis goods. Vertical/horizontal integration of these separately licensed business activities at the local tax level allows a single integrated business to effectively pay their gross receipts tax assessment once, at the final point of retail sale (which is still at the highest rate of 8 percent for adult -use and 6 percent for medicinal cannabis). In this model, interparty sales and transfers of goods between component parts of a vertically/horizontally integrated cannabis business supply chain, sharing 80 percent underlying ownership, without reference to form of business structure, are allowed to be deducted from each individual integrated cannabis business' gross receipts tax assessment at 75A-4 Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates August 20, 2019 Page 5 each point in the supply chain. This would leave only their third -party sales and/or their minimum square footage tax, whichever is greater, to be reported and paid. Security Deposits Concerning security deposits, it was determined that nominal security deposit language setting a minimum security deposit amount of $10,000 or the average of one month's remittable commercial cannabis tax, whichever was greater, would be included in the final text of Measure Y. This was done with an understanding that the City would be open via a subsequent ordinance, as provided under the terms of Measure Y to reducing and capping the amount of security deposits for commercial cannabis businesses to $10,000 or one month's average remittable commercial cannabis tax whichever is least. Also, it would permit two or more vertically/horizontally integrated cannabis businesses to be covered by a single deposit, provided that: clear detailed procedural language be added surrounding security deposits, their maintenance, application, replenishment and refunding and that similarly detailed language be added concerning sales, assignments, transfers and terminations of cannabis businesses to ensure the City is secure in its continued receipt of cannabis business license tax revenues. Allocated Gross Square Footage In the case of integrated distribution and/or manufacturing cannabis businesses, the minimum gross square footage tax reported would reflect the allocated square footage actually utilized by the business as verified by the City, rather than the maximum square footage of the premises. The gross square footage tax on cultivation would continue to be based on canopy size as reported to the state and as verified by the City. The gross square footage tax for adult -use retail businesses would continue to be based on the maximum size of the premises. Gross Receipts Tax Rate Reduction for Cannabis Testing Laboratories Local jurisdiction tax rates on commercial cannabis testing laboratories vary across the state. When the City's commercial cannabis testing laboratory ordinance was adopted in March 2018, testing laboratory tax rates ranged from 2 to 10 percent in various jurisdictions statewide. The City currently collects a tax of 5 percent of gross receipts or $1.50 per gross square foot, whichever is the greater of the two calculations. Nearby, the City of Costa Mesa collects 6 percent; Long Beach collects 6 percent, with the option to increase to 8 percent; Bellflower collects 5 percent, (with multiple 2.5 percent annual increases scheduled beginning July 1, 2020 until a 10 percent cap is reached) and Irvine collects no taxes. It is important to note that beginning in 2015 the City of Irvine ceased collecting a business license tax for any type of business in the City. Cannabis testing laboratories play a crucial role in ensuring product safety for medicinal and adult -use consumers. Testing laboratories examine products for pesticides, minerals, potency, and toxicity. These facilities employ highly -skilled and educated individuals and require purchasing and installation of costly equipment. Although the City's current 5 percent tax rate is consistent with other local jurisdictions with the exception of Irvine, the City has a continuing interest in promoting safe medicinal and nonmedicinal cannabis and cannabis products for all users and to ensure the sustained growth of the regulated medicinal and commercial cannabis 75A-5 Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates August 20, 2019 Page 6 business hub in Santa Ana. Reducing the cannabis testing laboratory gross receipts rate from 5 to 2 percent will maintain Santa Ana's overall competitive edge in the medicinal and commercial cannabis industries by promoting a healthy mix of business types, employment opportunities, and equipment investment in Santa Ana's industrial areas. Positive Impacts of Code Amendments There are multiple commercial cannabis business start-ups pending with the Planning and Building Agency that would benefit from vertical and horizontal integration. For these businesses to move forward with their permitting and licensing processes, assurance that the City will provide local tax treatment based on principles of vertical and horizontal integration, that issues related to security deposits and gross square footage assessment will be addressed, and that the ordinance is being routinely examined to identify areas for streamlining and modernization will provide a stronger foundation for success in the City. The medicinal and commercial cannabis ordinance updates recommended by staff provide this assurance and will serve to "jump-start" commercial cannabis business activity in the City, while at the same time accomplishing all other objectives of the City in securing reliable and continuing receipt of resulting cannabis revenues. Regulatory Amendments (Chapters 18 and 40) In addition to the proposed changes listed in Table 1, the City is proposing to update and streamline certain sections of Chapter 18 (Medicinal Marijuana) and Chapter 40 (Commercial Cannabis Business Activities Other Than Medicinal Marijuana). Table 2 (Proposed Amendments to Chapters 18 and 40) describes the regulatory -framework ordinance amendments. Table 2: Proposed Regulatory Amendments Item Amendment and Impact Medicinal Cannabis Amendment: Purchasing Age (SAMC Section 18-613) Amends Chapter 18 to reduce minimum purchasing age for medicinal cannabis products from 21 to 18. Impacts: • Establishes consistency with State cannabis retail laws. • Retains adult -use retail sales' minimum purchasing age at 21, which is also consistent with State cannabis retail laws. 75A-6 Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates August 20, 2019 Page 7 Table 2: Proposed Regulatory Amendments Item Amendment and Impact Employee Badges (SAMC Amendment: Sections 18-613 and 40-8) Amends Chapters 18 and 40 addressing production of required employee badges. Impacts: • Removes site -specific badge requirement for each employee. • Allows an employee that has an approved badge to work at multiple commercial cannabis businesses without the need for multiple badges. • Streamlines commercial cannabis business requests for new employees, volunteers, managers, and owners. Volatile and Non -Volatile Amendment: Manufacturing Requirements (SAMC Amends Chapter 40 to allow both non-volatile and volatile manufacturing Section 40-8) in the Light and Heavy Industrial zoning districts (M-1 and M-2) without a conditional use permit (CUP) requirements, subject to Building Code and Fire Code requirements. Impacts: • Addresses recent changes to State non-volatile (Type 6) and volatile (Type 7) manufacturing categories. • Allows a broader range of cannabis manufacturing activity types in both of the City's industrial zoning districts. • Streamlines the review process for Type 7 license applicants by eliminating the CUP requirement. • Maintains requirement that facilities be constructed subject to all life safety Building and Fire code requirements. 75A-7 75A-8 Ordinance Amendment No August 20, 2019 Page 8 2019-01 — Commercial Cannabis Ordinance Updates Item Amendment and Impact Administration and Amendment: Implementation Amendments (SAMC Amends Chapter 40 to address State cannabis license type changes, Sections 18-617.5, 40-1, 40- allow microbusiness license for certain commercial cannabis businesses, 2, 40-5, 40-8, 40-9.1, and 40- address audits, and minor grammatical corrections. 10) Impacts: • Updates certain sections to be consistent with applicable State laws. • Creates internal consistency among Measure 1313 (Chapter 18), Chapter 21, and Chapter 40. • Amends operating agreement language to be consistent with Measure Y and specifies minimum requirements for community benefit and sustainable business practices plans, including: o Local hiring and local sourcing; o Community engagement and contributions; and o Sustainable business practices (green buildings, recycling, employee training, etc.). • Streamlines audits and application procedures for non -retail commercial cannabis business applications. Medicinal Cannabis Purchasing Age SAMC Section 18-613 (1) restricts access to medicinal cannabis to those aged 21 and older unless accompanied by a primary caregiver, physician, parent, or documented legal guardian. Amending this restriction to allow individuals age 18 and older to access medicinal cannabis will ensure consistency with Proposition 64, which was approved by California voters in November 2016, and will assist with ensuring the long-term viability of medicinal cannabis sales. Adult -use (recreational) cannabis sales will remain restricted to those aged 21 and older. Badges SAMC Sections 18-613 (k) and 40-8 (3) (o) require all agents, private security officers or other persons acting for or employed by a commercial cannabis business to display a laminated identification badge. Moreover, the State of California requires that all commercial cannabis businesses produce badges, subject to inspection by the State. As written, the ordinances indicate that the badges are issued by the business, but the City has produced the badges for all commercial cannabis businesses. The amendment would reinforce that the badges are produced and issued by City of Santa Ana. The amendment would also allow an individual who has previously had a background check performed through the Live Scan process to work at an additional commercial cannabis business without having to order a new Live Scan. The amendment would streamline staff procedures and reduce staff time required to produce badges, and would create flexibility within the cannabis industry to hire individuals who have already been background checked. Non -Volatile and Volatile Manufacturing Requirements 75A-9 75A-10 Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates August 20, 2019 Page 9 Immediately following the passage of Proposition 64, the State created two commercial cannabis manufacturing categories: non-volatile (Type 6 license) and volatile (Type 7 license). Since the two categories were established, the list of chemicals considered "volatile" has been reduced as changes to Fire and Building safety policies have been adopted across local jurisdictions, including the Orange County Fire Authority (OCFA). Existing Fire and Building safety policies for other industrial activities of a similar nature that are already allowed in the industrial zoning districts will be applied to non-volatile and volatile cannabis manufacturing activities. Eliminating the non-volatile and volatile manufacturing distinctions in Santa Ana's local ordinance will also help the City retain its competitive edge by aligning the ordinance with State requirements, and will ensure that all commercial cannabis manufacturing businesses comply with up-to-date Building Code and OCFA policies, as updated and adopted from time to time. Administration and Implementation Amendments Various updates to the City's commercial cannabis ordinances in Chapters 18 and 40 of the SAMC are required to keep pace with changes to State law, create internal consistency, and ensure that Santa Ana maintain its competitive position in the statewide commercial cannabis industry. These amendments will: • Clarify that a single Operating Agreement is required for co -located businesses, per location; • Allow the microbusiness license types for certain businesses, enabling business owners to consolidate payments on State -issued license fees; • Streamline the application process for commercial cannabis business applicants and maintain consistency between Chapters 18 and 40 by requiring background checks (live scans) to take place during the Phase 2 (Regulatory Safety Permit/RSP) process; and • Address closeout audits and fix minor grammar and syntactical errors to ensure consistent interpretation, administration, and implementation of the City's commercial cannabis ordinances. Operating Agreement Modifications The City Council adopted Resolution No. 2017-074 on November 21, 2017, authorizing the City Manager to execute operating agreements with commercial cannabis businesses in Santa Ana. Each commercial cannabis operating agreement contains a required Community Benefit and Sustainable Business Practices Plan ("Community Plan"), which requires commitments to efforts to secure local sourcing and local hiring, community engagement, and sustainable/green building practices. Revisions to the operating agreement template are proposed to strengthen and enhance the commitments with measurable results. Local hiring is a critical component of a Community Plan; this requirement is proposed to be revised to require 50 percent of the labor at all commercial cannabis businesses in Santa Ana be local and annually certified as such during the RSP renewal process. In addition, the Community Plan will require community reinvestment commitments from commercial cannabis businesses, identifying social equity goals and requirements in the operating agreements to reflect the City's commitment to promote equitable owner, pp an� employment opportunities in the cannabis 75A-12 Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates August 20, 2019 Page 10 industry in order to decrease disparities in life outcomes for marginalized communities. The social equity requirement addresses employment and ownership opportunities, training with the City's Workforce Development program, and employee investment opportunities. In addition, requirements for expedited processing and renewal assistance for low-income and resident applicants, potential fee deferrals and staff assistance to such applicants can be incorporated in the new agreements in the event the City decides to expand the cannabis licensing program sometime in the future or provides for an associated competitive process for future licenses. Internal Review and Public Outreach The proposed amendments in Tables 1 and 2 have been vetted by the City's interagency commercial cannabis team, which includes representatives from the Planning and Building Agency (Planning and Code Enforcement divisions), the Police Department, the Finance and Management Services Agency, the Community Development Agency (Economic Development), and the City Attorney's Office. The City notified interested parties to ensure they are aware of and have access to the latest efforts to the proposed amendments. Interested parties include all current/operating and pending commercial cannabis businesses, those who have expressed interest in submitting applications, and the Santa Ana Cannabis Association (SACA). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. In accordance with the California Environmental Quality Act (CEQA), the subject actions are exempt from further review pursuant to Section 15061(b)(3) of the CEQA Guidelines. FISCAL IMPACT There is no fiscal impact associated with approval of this action as projected revenues are incorporated within the City's 2019-20 budget. Failure to adopt the above recommended action items, however, would have a negative impact as a significant portion of the commercial cannabis applicants awaiting adoption of those recommended items before committing to entering the approval, permitting, and licensing process will defer or cancel their decision to enter the Santa Ana market and anticipated revenues will not be realized. STRATEGIC PLAN ALIGNMENT & PUBLIC OUTREACH Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), and Objective #5 (leverage private investment that results in tax base expansion and job creation citywide). Approval of this item also supports the City's efforts to meet Goal #4 - City Financial Stability; Objective #3 (achieve a structurally balanced budget with appropriate reserve levels). 75A_1 3 75A-14 Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates August 20, 2019 Page 11 Minh Thai Executive Director Planning & Building Agency Kathryn Downs, CPA Executive Director Finance & Management Services Agency WH/AP:la SAFCAM-20-19\Commercial Cannabis Ord Updates\RFCA CA No 2019-01 cannabis chs 18 21 and 40 amendments 08202019 modified Exhibits: 1. Ordinance — Amending certain sections of Chapter 21 (Finance) 2. Ordinance —Amending certain sections of Chapters 18 and 40 (Regulatory) 3. Resolution — Reducing the Commercial Cannabis Gross Receipts Tax for testing laboratories from 5 percent to 2 percent 4. Resolution — Establishing a Canopy Measurement service fee and an Allocated Square Footage Measurement service fee 5. Resolution — Authorizing the City Manager to modify the commercial cannabis operating agreement template to specify requirements for community benefit and sustainable business practices plans and to execute cannabis operating agreements 75A-15 75A-16 EXHIBIT 7 EXHIBIT 1 LS 8.20.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING AND ADDING CERTAIN SECTIONS TO ARTICLES XIII, XII, AND VII OF CHAPTER 21 OF THE SANTA ANA MUNICIPAL CODE PERTAINING TO OWNERSHIP TRANSFERS, CLOSE OUT AUDIT PROCEDURES (SECTIONS 21-131.1 AND 21-141); VERTICAL INTEGRATION (SECTIONS 21-131.2 AND 21- 142); REDUCTION IN THE GROSS RECEIPTS TAX RATE FOR CANNABIS TESTING FACILITIES, DEDUCTIBILITY OF INTERPARTY SALES AND TRANSFERS OF GOODS, CLARIFICATION OF SQUARE FOOTAGE TAX MEASUREMENT REQUIREMENTS (SECTION 21-133); AND REDUCTION OF SECURITY DEPOSIT AMOUNTS AND ESTABLISHMENT OF RELATED PROCEDURAL REQUIREMENTS (SECTIONS 21-80, 21-80.1, 21-86 AND 21-136) THE CITY COUNCIL OF THE CITY OF SANTAANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") which was codified in Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern medicinal marijuana and the retail sale thereof. B. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety Act further amended in 2016 as the Medical Cannabis Regulation and Safety Act which established regulations and a state licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. 1 75A-17 C. In November 2016, the voters of the State of California approved Proposition 64, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act. D. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act. E. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. F. Since November 2014, the City of Santa Ana has permitted the retail sale of cannabis for medicinal purposes and since January 2018 for adult -use purposes. On March 20, 2018, the City Council adopted Ordinance NS-2941 and NS-2942, allowing and regulating commercial cannabis testing laboratories. G. On April 17, 2018, the City Council adopted Ordinance NS-2944 allowing and regulating commercial cannabis cultivation, distribution, and manufacturing activities. H. On November 6, 2018, the voters of the City of Santa Ana approved Measure Y (Ordinance NS-2962), establishing a tax on commercial cannabis business activities except medicinal cannabis retail sales, which continue to be subject to taxes under Measure BB. I. The State of California continues to update its regulations on commercial cannabis business licensing, resulting in the need for local jurisdictions to update and amend local commercial cannabis ordinances from time to time. J. The City Council of the City of Santa Ana intends that nothing in this Article shall be deemed to conflict with federal law as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or other applicable law. K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not cultivated, manufactured or distributed in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these uses may operate, and in providing access of cannabis to residents. L. The City Council held a duly noticed public hearing on July 16, 2019 in connection with consideration and adoption of this ordinance. 6 75A-18 Section 2. This ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including but not limited to: Article IX, Section 7 of the California Constitution, the Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5), the Medical Marijuana Program (California Health and Safety Code Section 11362.7 et seq.), the Medical Marijuana Regulation and Safety Act (AB 266, AB 243, and SB 643), the Adult Use of Marijuana Act (Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act (SB 94). Section 3. Pursuant to the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment. As a result, a Notice of Exemption will be filed upon the adoption of this ordinance. Section 4. All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the City Charter. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section 5. Section 21-131.1, Article XII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read in full as follows: Sec. 21-131.1. Sale, assignment, transfer, or termination of business: marijuana collective/cooperative (medicinal cannabis retail business) owner/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify: successor's and transferor's ioint and several liability; certificate of nonliability. (a) Owner/Operator's duty to notify. termination of business. ii. Sale assignment or transfer of business. A medicinal cannabis retail business owner/operator who is selling, assigning, or otherwise transferring 75A-19 their business (hereinafter collectively referred to as transferor) shall notify the collector in writing of such sale assignment or transfer at least ninety (90) days in advance of the date of the sale assignment or transfer and shall notify the collector in writing of the name and address of the purchaser, assignee, transferee, or other successor in interest (hereinafter collectively successor was notified of the requirements of this Article regarding their responsibility for unpaid business license tax liabilities (b) Remitting and reporting requirements. Each medicinal cannabis retail business owner/operator upon the sale assignment or other transfer, or termination of (c) to gross receipts, the amount of business license tax collected for the reporting account available for a closeout audit by the collector, his or her revenue officers terminating their business is found to have satisfied all business license tax liabilities, the collector shall issue to such business owner/operator a certificate of nonliability. transferring, or terminating their business is deficient in either their return or liabilities owing, the collector shall issue a certificate of nonliability. (d) Successor's duty to notify. If a medicinal cannabis retail business owner/operator decides to sell, assign, or otherwise transfer their business their successor shall 75A-20 the transferor does not have or is not liable for any outstanding business license taxes liabilities. After the successor seeks written verification from the collector's office if the collector notifies the successor that the transferor has or is liable for If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the date of the sale, assignment, or other transfer, the collector pending settlement of the account of the transferor. (e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection (d) they shall become jointly and severally liable along with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections 21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied. (f) Certificate of nonliability. Upon application of a medicinal cannabis retail business operator/owner who is terminating their business, or a transferor, or a successor, transferor's, or successor's business license tax liabilities have been satisfied. If liabilities have been partially or wholly paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their successor's action of withholding and depositing amounts with the collector pursuant to subsection 75A-21 Section 6. Section 21-131.2 of Article XII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read in full as follows: Sec. 21-131.2 Vertical and horizontal integration of marijuana collective/cooperative licensees (medicinal cannabis retail businesses) —Defined The terms vertical integration and horizontal integration as used in this Article shall have the following meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales as long as they share at least 80% underlying common ownership regardless of form of business structure and are engaged in interparty sales and/or transfers of goods Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least 80% underlying common ownership regardless of form of business structure and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term "cannabis businesses" shall include marijuana collectives/cooperatives as defined in section 18-611 and commercial cannabis businesses as defined in section 40-2 but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses Section 7. Section 21-133 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-133. Commercial cannabis businesses —Annual business license tax assessment. Every person engaged in a "commercial cannabis business" or "commercial cannabis activity" shall pay an annual business license tax as outlined below. This Article shall not apply, except with respect to medical marijuana cooperatives/collectives (also referred to as medicinal cannabis retail businesses)_ Wh'Gh aFe s. b°9^t to a- loneRst;tax und9F"'` ' v" @f !"jg "` which are vertically and/or horizontally integrated with commercial cannabis businesses to medical marijuana cooperatives/collectives which are governed by Article XII of this Chapter, or to personal cultivation as defined in section 18-611(n) of this Code. (a) For each branch establishment or separate property location of a commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location, the higher of the two (2) following tax rates shall be due to the City for each monthly reporting period: 75A-22 (1) Up to ten percent (10%) of each dollar of gross receipts received or generated for each monthly reporting period. (2) Up to $35.00 per square foot (annual tax rate) prorated monthly to one - twelfth (1/12th) of the annual tax rate amount. (b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this Chapter. (c) Notwithstanding the tax rates imposed herein under subsection (a), the City Council may, in its discretion, at any time by resolution, implement any lower tax rate it deems appropriate, and may by resolution increase such tax rate from time to time, not to exceed the maximum rates established by subsection (a). (d) As of the operative date of this Article, the business license gross receipts tax rates and square footage tax rates application to specific commercial cannabis business activities shall be established as follows: Commercial Cannabis Business Gross Receipts Gross Square Activity Tax Rate Footage Tax Rate Adult -use Cannabis Retail 8% $ 25.00 Business (including Delivery) Cultivation 6% $ 10.00 Distribution .6% $ 4.00 Manufacturing 6% $ 10.00 Testing Facility or Testing Laboratory (effective December 5% $ 1.50 21, 2018 through June 30, 2019) Testing Facility or Testing Laboratory (effective beginning 2% $ 1.50 July 1, 2019) Commercial cannabis businesses not having a fixed place of business within the city but conducting regular, non -incidental commercial cannabis business activities within the city shall be subject to the gross receipts tax rate(s) as set out in the table above based on the category/categories of commercial cannabis activity conducted. However, such out-of-town commercial cannabis businesses shall not be subject to any gross square footage tax rate(s). (e) As part of the annual gross receipts/square footage tax(es) imposed by this Article, each commercial cannabis business located within the city shall pay a minimum 75A-23 basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location. Commercial cannabis businesses having no fixed place of business within the city shall be exempted from this requirement. (f) In the event the City should in the future permit additional categories of commercial cannabis business activity, as may from time to time be licensed by the State of California, such categories of commercial cannabis activates shall be subject to the same maximum tax rates as imposed herein. The City may by ordinance of the City Council initially set the required gross receipts/gross square footage tax rates based on category of cannabis business activity at lesser rates as may be deemed appropriate by the City Council. (g) For purposes of this Article, a commercial cannabis business is not considered to be a business or person having a "specified exemption" or "specified exclusion" from business license taxation as set forth in sections 21-48 and 21-49 of this Chapter. (h) For purposes of this Article any person claiming an exemption from the gross receipts tax rate component of the combined gross receipts/square footage tax imposed under this Article on the basis of a claim of being a qualified "nonprofit organization" shall have the burden of substantiating their claim to the same extent and in the same manner as a marijuana collective/cooperative in accordance with section 21-127(a)(6) of this Chapter. (1) Cannabis businesses shall not pass the taxes imposed by this Article through to an adult -use cannabis retail business customer or commercial cannabis business customer in any fashion except as part of the basic product sales and/or service price. Q) Definitions. For purposes of this Article, the following terms have the following meanings: (1) "Adult -Use cannabis retail business" as defined in section 40-2(4) of this Code. (2) "Commercial Cannabis Activity" as defined in section 40-2(9) of this Code. (3) "Commercial cannabis business" as defined in section 40-2(10) of this Code excluding medical marijuana collectives/cooperatives also referred to as medicinal cannabis retail sales. (4) "Cultivation" as defined in section 40-2(11) of this Code. (5) 'Delivery" as defined in section 40-2(13) of this Code. 75A-24 (6) "Distribution" as defined in section 40-2(16) of this Code. (7) "Gross receipts" — section 21-3 of this Chapter notwithstanding, "gross receipts" for the purposes of this Article shall mean: (A) Transfer of title or possession, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for cannabis, including, but not limited to, membership dues, reimbursements provided by members, regardless of form, or the total amount of cash or in -kind contributions, including all operating costs related to the growth, cultivation, manufacturing, distribution, testing, or provision of cannabis or any transaction related thereto. (B) Anything else of value obtained by an a cannabis business; (C) The total amount of the sale price of all sales and services; (D) The total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, or merchandise (whether at wholesale or retail), for which a charge is made or credit allowed, including all refunds, cash credits and properties of any amount or nature; (E) Any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost of materials used, the labor or service cost, interest paid or payable, losses, or any other expense whatsoever; provided that cash discounts allowed or payment on sales shall not be included; (F) The amount of any federal manufacturer's or importer's excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof and whether OF ROt the ,n1 ei s, rh tax is stated a Fete charge; (G) The amount of any California state cannabis excise tax or state cannabis cultivation tax such exGffise tax AF ^-,"^•^'i^^ tax 4s included in the price of the productOF stated to GustemeFs as a sepaFate GhaFge; (H) "Gross receipts" shall not include the following: i. The amount of any federal tax imposed on or with respect to retail or wholesale sales or the sale of services whether 0 75A-25 imposed upon the cannabis business or the consumer whenever the amount of federal tax is authorized by law to be stated and passed through to customers as a separate charge. ii. Any California state, county, or city sales or use tax, including any add -on, district, or transaction and use tax, required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale; or iii. The amount of the sale price of business personal property (all property owned or leased by a cannabis business operator used in the operation cannabis business activities, including but not limited to: furniture, fixtures, and business equipment); real property, including land, buildings and other improvements. iv. The amount of equity contributions, investments, and/or loan proceeds to cannabis business' operation, and/or proceeds from the sale or transfer of cannabis business' retail or commercial cannabis business. v. The amount of interparty sales and/or transfers of goods within a single vertically and/or horizontally integrated cannabis business, where the sales or transfers goods are between two or more commercial cannabis business licensees (excluding testing facilities or testing laboratories), or one or more said commercial cannabis business licensee(s) and one or more medicinal cannabis retail business licensee(s) as set forth in accordance with section 21-131.2 and/or section 21-142. (1) "Gross receipts" shall be calculated without any deduction on account of any of the following: i. The cost of tangible or intangible property sold or bartered; ii. The cost of materials or products used, labor or service cost, interest paid, losses, or other expense; iii. The cost of transportation of cannabis, or other property or product; iv. The amount of any federal or state income or franchise taxes; and io 75A-26 v. Any other business costs or expenses, unless otherwise specifically exempted. —"Reta•i businesses" as defined ; eGtien 40Yi40of this w^de."Gross Square foot" or "gross square footage" for the purposes of this Article shall mean: (A) In the case of commercial cannabis businesses licensed by the state to engage in an adult -use cannabis retail business, Tthe gross number of square feet comprising the adult -use cannabis retail property location as confirmed by the corresponding "approved building set" or "approved certificate of occupancy' on file with the City of Santa Ana Planning and Building Agency, whichever is the greater of any square footage indicated, whether such adult -use cannabis retail business is part of an on -site vertically or horizontally integrated cannabis business or not. (B) In the case of commercial cannabis businesses licensed by the state to engage in cultivation, the aggregate number of square feet comprising all areas of the premises under "canopy', whether such sum is greater or lesser than the gross square footage as stated in the "approved building set" or "approved certificate of occupancy", and whether such commercial cannabis cultivation business is part of an on -site vertically integrated cannabis business or not. "Canopy' shall mean the designated area(s) of a premise that will contain mature plants at any point in time. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries. Canopy may be noncontiguous, but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which includes interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, or garden plots; and if mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation. Canopy shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may be deemed necessary in the discretion of the collector. Whenever an independent canopy measurement and 11 75A-27 calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee's canopy is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then a canopy measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council. (C) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and that are not vertically or horizontally integrated with another cannabis business occupying the same premises the gross number of square feet as confirmed by the corresponding "approved building set" or "approved certificate of occupancy' on file with the City of Santa Ana Planning and Building Agency whichever is the greater of anv square footage indicated. (G)—(D) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and occupying the same premises with another cannabis business with which they are vertically or horizontally integrated, the gross number of square feet allocated by the commercial cannabis business owner/operator respectively for either distribution use or for manufacturing use whether the combined sum of all Vertically or horizontally integrated uses is less than equal to or greater than the gross square footage as stated in the "approved building set" or "approved certificate of occupancy". The number of square feet allocated ("Allocated Square Footage") shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license or more often as may be deemed necessary in the discretion of the collector. Whenever an independent allocated square footage measurement and calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee's allocated square footage is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then an Allocated Square Footage 12 75A-28 measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council. (E) In the case of commercial cannabis businesses licensed by the state to engage in testing facilities or testing laboratory businesses, the gross number of square feet comprising such commercial cannabis business' property location as confirmed by the corresponding "approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and Building Agency, whichever is the greater. (B)L) "Manufacturing" as defined in section 40-2(22) of this Code. R 10 "Retail businesses" as defined in section 40-2(40) of this Code. (11) "Testing Facility" or "Testing Laboratory" as defined in section 40-2(44) of this Code. (12) "Wholesale" as defined in section 40-(46) of this Code (k) Modification, repeal or amendment. The City Council may repeal the ordinance codified in this Article, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. The City Council may likewise by ordinance adopt and add additional provisions to any other Article of this Chapter and relate them to this Article, or amend any existing provisions of any Article of this Chapter as they may already relate to this Article in any manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the City Council repeals said ordinance or any provision of this Article, it may subsequently reenact it without voter approval, as long as the reenacted ordinance or section does not result in an increase in the tax or taxes imposed herein. (1) Administration —Rules, regulations and guidelines. In order to aid in the city's collection of taxes due under this Article and to ensure that all commercial cannabis businesses are taxed consistently to the best of the city's ability, the collector, with the concurrence of the city attorney, may promulgate rules, regulations, and guidelines, to implement and administer this Article including, but not limited to rules, regulations, and guidelines harmonizing other provisions of this Chapter with the provisions of this Article in any manner not inconsistent with the intent of this Article and which does not result in an increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Article. 13 75A-29 (m) Occasional transactions —Exemptions. (1) The provisions of this Article shall not apply to persons having no fixed place of business within the city who come into the city for the purpose of transacting a specific item of commercial cannabis business at the request of a specific client or customer, incidental to a commercial cannabis business principally established elsewhere, provided that such person does not come into the city for the purpose of transacting such business on more than three (3) days during any calendar year. (2) For any person not having a fixed place of business within the city who comes into the city for the purpose of transacting commercial cannabis business activities, the business license tax(es) payable by such person may be apportioned by the collector in accordance with this Chapter. (n) Reporting and remittance. (1) Beginning as set forth in subsection (r) below, and monthly thereafter, each commercial cannabis business required to pay a tax or taxes based on gross receipts under this Article (except qualified nonprofit organizations exempt from taxes measured by income or gross receipts), shall report to the city any gross receipts received during the preceding monthly reporting period. In addition, each cannabis business (including qualified nonprofit organizations) required to pay a tax or taxes based on square footage shall report to the city the gross square footage of the cannabis business' property location. Every cannabis business shall then compute the business license taxes at both the gross receipts rate and the gross square footage rate - prorated monthly to one -twelfth (1/12th) of the annual tax rate amount - and shall then remit to the city the amount of the higher of the two tax calculations due and owing during said period in accordance with section 21-133, subsection (d). In the case of a qualified nonprofit organization only the gross square footage computation shall be made and the amount of such calculation shall represent the amount due and owing during said period. All reporting and remitting made shall be done in accordance with instructions from the collector and shall be made using forms provided or approved by the collector. (2) For purposes of this section, month shall mean calendar month and shall include any fraction of a month. Taxes shall begin to accrue on the date that a person or entity first receives a business license or other city permit to operate as a commercial cannabis business or upon the operative date of this Article should a person or entity already possess a 14 75A-30 commercial cannabis business license or other city permit to operate as a commercial cannabis business. (3) The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax required annually for each separate branch location or separate property location of the business in accordance with this section, shall be made annually prior to the beginning of the fiscal year beginning April first of the current year and expiring on the 31st day of March of the following year. In the case of a new commercial cannabis business the minimum basic rate gross receipts tax shall be paid in advance prior to any new business activity being undertaken. Every new licensee shall pay in advance an amount equal to one -quarter (Y<) of the annual minimum basic rate gross receipts tax, for each quarter and fraction of a quarter remaining during the period for which the new license is issued. (o) Delinquent date —Penalty. Any individual or entity who fails to pay the taxes required by this Article when due shall be subject to penalties and interest as set forth in accordance with this Chapter. The collector is not required to send a delinquency or other notice or bill to any person subject to the provisions of this Article and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this Article. (p) Business license tax certificate —Required. There are imposed upon all persons engaged in transacting and carrying on any commercial cannabis business activity in the city taxes in the amounts prescribed in this Article. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any business in the city without first having procured a business license from the city under this Chapter and having paid the taxes set forth in this Article, and without complying with any and all applicable provisions contained in this Chapter. The carrying on of any commercial cannabis business activity without complying with all the provisions of this Article shall constitute a separate violation of this Chapter for each and every day that such commercial cannabis activity is so carried on. (q) Classification of business license assessment type —Term and renewal. The business license issued to commercial cannabis businesses shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) of this Chapter and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77. (r) Operative date. Upon the approval by the majority of the voters of the city at the November 6, 2018 general election, the taxes imposed by this Article shall become operative and shall be applied by the collector upon all commercial cannabis businesses. 15 75A-31 (� Operative date of decreased gross receipts tax rate The -gross receipts tax set initially at a rate of five (5%) percent for testing facilities or testing laboratories pursuant to subsection (d) above shall be decreased to a rate of two (2%) percent by resolution of the City Council rSanta Ana City Council Resolution No XX-XXXI as hereinabove provided for in accordance with subsection (c) which reduced rate under the terms of said City Council resolution shall become retroactively effective July 1, 2019. Section 8. Section 21-136 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-136. Security for collection of commercial cannabis business' business license tax; requirement; extension of time: application; failure to post or restore —effect: ieopardv determination; refund or release; deposit adiustment— effect. (a) Requirement for Security Deposit. To ensure compliance with business license tax payment requirements established pursuant to this Article, the collector shall require, beginning on the operative date of this Article, that each commercial cannabis business owner/operator, (including but not limited to each purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) of a commercial cannabis business subject to the business licensing requirements of this ArticleJ deposit within IRdiyidual busine^^'' ` one hundred and twenty (120) days following the last day of the month in which business was first commenced such security (per individual business license) in a form acceptable to the collector in an amount not larger than the commercial cannabis business owner's/operator's estimated average monthly business license tax liability as determined by the collector or the sum of ten thousand dollars ($10,000.00), whichever is thegFeat^ef least. Provided, however, in the event that two or more commercial cannabis business licensees sharing at least 80% underlying common ownership regardless of form of business structure, are engaged in an integrated cannabis business (whether vertically or horizontally integrated) as defined in section 21-142 then a single consolidated deposit shall be made equal to the deposit amount owing for the integrated commercial cannabis activity having the highest individual business license tax liability. Each new city commercial cannabis business licensee shall upon obtaining their City business license(s) deposit a similar security as applicable per business license within thirty (30) days after commencing business. (b) Extension of Time If, upon request and in the iud-gment of the collector, a determination of any commercial cannabis business' estimated average monthly tax liability for purposes of setting the amount of their required security deposit requires an extension of time bevond one hundred and twenty (120) days following 16 75A-32 the last day of the month in which business was first commenced, then the collector may issue a written notification to such commercial cannabis business granting such extension. (c) Application of Security Deposit. To recover past -due business license taxes, including penalties interest charges fees or costs (hereinafter collectively referred to as business license tax liabilities) remittable by the depositor, the collector may apply the security deposited with the collector. At least fifteen (15) days prior to the application of a security deposit the collector shall serve upon the depositing commercial cannabis business owner/operator notice of intent to apply the security deposit. Service of notice may be made by placing the notice in the United States mail postage prepaid addressed to the depositing commercial cannabis business owner/operator at their place of business or other mailing address of record. Any portion of the security remaining after satisfaction of outstanding business license tax liabilities and any expenses related to third -party administrative charges or fees relating to the liquidation and application of non - cash deposits may be retained by the collector for security or in the case of a closeout audit may be paid over by the collector to the depositing owner/operator. Except in the case of a closeout audit pursuant to section 21-141 in the event the collector applies the security deposit, or any portion of said deposit, as an offset against remittable business license tax liabilities and any expenses related to third - party administrative charges or fees relating to the liquidation and application of non -cash deposits, the commercial cannabis business owner/operator shall be required within thirty (30) days of the collectors written demand therefor, to re deposit the full amount of the required security. In such event the amount of the required security shall be adjusted by the collector based on the average of the commercial cannabis business' actual monthly gross receipts tax returns and/or remittances as measured over the last three (3) valid monthly retums and/or remittances received by the collector or the sum of ten thousand dollars ($10,000). whichever is least, less any amount remaining on deposit with the collector. Service of demand shall be in the same manner as stated hereinabove for service of notice. (d) Failure to Post or Restore Security Deposit —effect. Failure by a commercial cannabis business licensee to initially post or restore a security deposit when required by the collector pursuant to this section shall be cause for suspension and/or revocation of such commercial cannabis business' existing Santa An Business License as set out in section 21-86 of this Chapter. Similarly, in the case of a vertically and/or horizontally integrated cannabis business, the business license(s) of the integrated commercial cannabis business(es) shall be likewise sublect to suspension and/or revocation. v 75A-33 (e) Jeopardy Determination. If the collector believes that the collection of any business license tax imposed by this Article will be ieopardized in whole or in part by delay in the commercial cannabis business owner's/operator's timely remittance of the business license tax. the collector shall serve notice upon the person determined to be liable therefor of their determination of ieopardv and of the business license tax required to be paid to the City, and demand immediate Payment thereof, together with any interest and penalty determined to be due The collector may consider all facts and circumstances relevant to determining whether the collection of any business license tax will be ieopardized by delay, including but not limited to indications that the person liable for the business license tax intends to take or is taking action to discontinue business activities in the City, dissipate or otherwise remove assets from the City, or sell exchange transfer, assign or otherwise dispose of such Person's business personal or business income or business property. The collector also may consider whether the person liable for the business license tax is or has been uncooperative or unresponsive in connection with any investigation examination audit deficiency determination assessment, or collection action or procedure undertaken by the collector. A ieopardv determination of business license tax, penalty, or interest is immediately due and payable upon the service of the notice of ieopardv determination on the Person determined to be liable therefor. Service of notice of a ieopardv determination shall be made by: (1) sending the notice initially by electronic mail to the depositing commercial cannabis business owner's/operator's electronic mail address of record as set out in the depositing commercial cannabis business owners/operator's application for business license or most recent business license renewal affidavit or business license amendment statement (2) placing the notice for delivery with an express carrier for next business day delivery, all delivery and tracking charges prepaid addressed to the depositing commercial cannabis business owner/operator at their place of business; and/or (3) conspicuously posting said notice upon the premises of the commercial cannabis business Service of notice of a ieopardv determination shall be deemed completed upon tracking confirmation of the delivery of said notice to the commercial cannabis business owner's/operator's place of business or on the date of the actual posting of said notice on the premises of the depositing commercial cannabis business owner/operator. Upon the business day next following the completion of service of notice of a ieopardv determination upon a depositing commercial cannabis business, the collector in his or her discretion may proceed with the application of the security deposit upon actual or estimated business license taxes due including penalties, interest, charges, or service fees. (f) Refund or release of securitv deposit In the case of the sale assignment or other transfer or termination of business by the depositor pursuant to section 21-141 the collector shall refund or release the security deposit amount required pursuant to this section, or in the event of prior application of the security deposit pursuant to is 75A-34 subsection (c) any unapplied amount of such security deposit, upon depositor's presentation to the collector of a certificate of nonliability stating the nonliability of the depositor for payment of business license taxes as hereunder provided in section 21-141(f). (q) Deposit adjustment —effect In the case of a determination by the collector that the amount of a previously posted commercial cannabis business owner's/operator's security deposit exceeds the requirements of this section then the collector shall adjust the amount of the required security deposit. If the prior securitv deposit was posted on a cash basis then the collector shall refund the excess amount. If the Prior security deposit was posted on a non -cash basis then an adjusted cash basis security deposit or adjusted non -cash basis security deposit in a form acceptable to the collector may be posted in exchange for the release of the prior security deposit. Section 9. Section 21-141 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read as follows: Sec. 21-141. Sale, assignment, transfer, or termination of business commercial cannabis business owner's/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's and transferor's joint and several liability; certificate of nonliability. (a) OwnerVverator's duty to notify. i. Termination of business. A commercial cannabis business owner/operator who is terminating their business shall notify the collector in writing of such termination at least ninety (90) days in advance of the date of termination of shall then immediately notify the collector of said decision and the date of termination of business. collector in writing of such sale, assignment, or transfer at least ninety (90) referred to as successor) unless the decision to sell assign, or otherwise then immediately notify the successor of the successor's responsibility for 19 75A-35 the period prior to the sale, assignment or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing to the collector that the successor was notified of the requirements of this Article regarding their responsibility for unpaid business license tax liabilities (b) Remitting and reporting requirements Each commercial cannabis business owner/operator upon the sale assignment or other transfer, or termination of business for any reason shall on or before the last day of the month following the Period, remittances made if any, and the balance of the business license tax due if any, shall be remitted to the collector. (C) Closeout audit. After filing the final return and remittina the balance due the the owner/operator selling assigning or otherwise transferring or terminating their If, upon closeout audit, or by means of other information available to them the collector determines that the owner/operator selling assigning or otherwise the amount of the net deficiency, plus applicable penalties interest charges fees (d) Successor's duty to notify. If a commercial cannabis business owner/operator any outstanding amount of business license tax liabilities the successor shall Kol 75A-36 present a certificate of nonliability within ninety (90) days after such sale, assignment or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. If the decision to sell assign or otherwise transfer was made within less than a ninety (90) day period prior to the date of the sale assignment or other transfer, the successor shall notify the collector of the sale, assignment, or transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the nonliability of the assignment or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. (e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection (d) they shall become iointly and severally liable along with the transferor for the payment of the full amount of the transferor's business license tax liabilities and shall likewise become iointly and severally liable along with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections 21-83, 21-84 and 21-85 until all business license tax liabilities are satisfied. (f) Certificate of nonliability. Upon application of a commercial cannabis business owner/operator who is terminating their business, or a transferor, or a successor, additional business license tax liabilities have accrued subsequent to the date of issuing their respective certificate of nonliability. Where a transferor's business license tax liabilities have been partially or wholly paid by their successor to the pursuant to subsection (d) no certificate of nonliability shall be issued to the transferor without the prior written consent of their successor. Section 10. Section 21-142 of Article XIII of Chapter 21 of the Santa Ana Municipal Code, is hereby added to read as follows: Sec. 21-142. Vertical and horizontal integration of commercial cannabis business licensees —Defined. 21 75A-37 The terms vertical integration and horizontal integration as used in this Article shall have the following meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales as long as they share at least 80% underlying common ownership regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least 80% underlying common ownership regardless of form of business structure and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term "cannabis businesses" shall include medicinal marijuana collectives/cooperatives as defined in section 18-611 and commercial cannabis businesses as defined in section 40-2 but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses. Section 11. Section 21-80 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-80. - Same —Not conclusive; audit of books. No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the collector, his or her revenue officers, or duly authorized employees or agents of the City, who are hereby authorized to examine, audit, and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment to verify or ascertain the amount of license fee due. All persons subject to the provisions of this Chapter shall keep complete and detailed records of business transactions, including, but not limited to the following: rent collected, daily sales, sales taxes collected and paid to the state, any and all city, state and federal taxes collected and remitted from cannabis sales point of sales (POS) system detailed daily sales data base and summary monthly sales reports receipts, purchases, and other expenditures, detailed general ledger, income statements, cash flow statements, balance sheets, sales iournals cash disbursement iournals and ledgers including payroll iournals, third -party staffing agency statements lease agreements, and other reports regarding the number and types of persons employed and/or otherwise engaged in the business, and shall retain all such records for examination by the collector, his or her revenue officers, or duly authorized employees or agents of the City. Such records shall be maintained for the period of the current calendar year, and fora 2kLperiod of at least three (3) complete calendar years or from the commencement of business within the city, whichever period is least. In the event such records of any business are not maintained within the city and are not Pia 75A-38 reasonably made available for examination within the city, then such business shall be responsible for the actual travel and lodging cost in connection with the performance of said examination. No person required to keep records under this section shall refuse to allow the collector, his or her revenue officers, or duly authorized employees or agents of the City to examine said records at reasonable times and places. Any person who willfully refuses to allow said examination on demand and at a reasonable time and place as herein provided shall be deemed guilty of a misdemeanor. In addition, such willful refusal shall be cause for suspension and/or revocation of such business' existing Santa Ana Business License as set out in section 21-86 of this Chapter. Section 12. Section 21-80.1 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-80.1. - Same —Audit deficiency; application of penalty and interest; voluntary compliance;—effectl7-Abatement of penalty and interest;; application;_ Exception for business license taxes assessed on a monthly basis; audit service fees. In the event that the collector or his or her designated agents, whether through an audit or otherwise, determine that any person has misstated their gross receipts amount, square footage amount, or other criteria upon which their current or prior years' business license tax has been calculated resulting in an underpayment of the tax amount owed, the collector shall separately calculate the deficiency for each distinct license period affected and issue a statement of tax deficiency and add delinquency penalties as applicable to the amount of the tax deficiency in accordance with Section 21-25, subsection (a) and Section 21-83, subsection (a), together with interest as provided under Sections 21-84 and 21-85, as applicable, until such time as the tax deficiency together with the accrued penalties and interest, are satisfied. In the case of business license taxes which are assessed and payable on a monthly basis, an identical procedure shall be applied by the collector. Provided, however, that the provisions of Section 21-25 shall not apply. Provided, however -'mot Except business license taxes which are assessed and payable on a monthly basis, where any person voluntarily reports a tax deficiency on business license taxes which are assessed and payable on an annual basis such person's penalty and interest assessment on said deficiency shall be abated until the combined amount of tax, penalty and interest due is equalized to an amount equivalent to the amount of current and prior years' taxes owing as computed or determined based upon the business license tax rates and charges in effect for the most current tax year. In computing the abatement of accrued penalties and interest to 23 75A-39 arrive at a combined amount of tax, penalty and interest equivalent to the amount of the current or prior years' taxes owing as computed or determined based upon the business license tax rates in effect for the most current tax year the collector in his or her discretion may retain a sufficient amount of accrued penalty alone, or a sufficient amount of accrued interest alone, or any sufficient combination of accrued penalty amount and accrued interest amount necessary. Whenever the result of any audit performed pursuant to this Chapter, excluding audits performed in connection with any medicinal cannabis business or commercial cannabis business, determines that any licensee has, exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per cent or more of the total amount due, but not less than two hundred fifty dollars ($250.00), then an audit service fee in an amount as specified by resolution of the City Council shall be applied. In the case of audits performed pursuant to this Chapter in connection with anv medicinal cannabis business or commercial cannabis business that has exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per cent or more of the total amount due, but not less than five thousand dollars ($5,000.00), then such cannabis business shall be responsible for the City's actual cost of performing said audit. Section 13. Section 21-86 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-86. - Same —Suspension and revocation of business license. The collector shall suspend and/or revoke any business license issued or granted pursuant to this Chapter only upon those grounds set forth in Sections 2145, 21-50, 21-55, 21-58, 21-59, 21-60, 21-80, 21-136 or upon conditions set forth in any written agreement executed pursuant to Section 21-83. Provided further, that unless revocation is made upon conditions set forth in a written agreement executed pursuant to Section 21-83 or upon licensee's failure to comply with the requirements of Section 21-136, no licensee's business license shall be suspended and/or revoked for failure to pay the anv annual business license tax as set forth in this Chapter, or any monthly business license tax as set forth in Article XII or Article XIII of this Chapter, or any other amount due pursuant to this Chapter until the penalties accruing for such failure to pay, exclusive of interest, equal GRe hundred (100 peF t of the businessIiGeRse tax due fGF GUGh liGense have attained the maximum applicable amount permissible under the terms of this Chapter. Whereupon, the collector shall give a notice of suspension, which notice shall specify the grounds for suspension, and which notice shall be given by personal service or by depositing it in tkl 75A-40 the United States post office in the city, postage prepaid, addressed to the licensee at the address listed on the application of the licensee where he or she consented to receive mail concerning his or her license, to obtain a license or to pay any license tax due or the address listed on the most recent business license renewal affidavit or business license amendment statement and/or conspicuously posting said notice upon the premises of the business. Service of notice shall be deemed completed upon the date of personal service of said notice or the date of mailing of said notice, or the date of actual posting of said notice on the premises of the licensee whichever occurs first. In the event said licensee fails, within a period of thirty (30) days -days' notice, to pay the business license tax due or any other amount due pursuant to this Chapter, or to request a hearing the procedure for which shall be as provided in Section 21-41, then and in that event the collector shall give a notice of revocation. The licensee shall be given at least ten (10) days -days' notice, which notice shall specify the grounds for revocation, and which notice shall be given pursuant to the hereinabove set forth procedure for giving notice. In the event said licensee fails within the allotted ten (10) day period to request a hearing to show cause why his or her business license should not be revoked, then and in that event the collector shall revoke said person's license and give notice thereof to said person pursuant to the hereinabove set forth procedure for giving notice. In the event said licensee fails to file within ten (10) days thereafter, an appeal pursuant to Chapter 3 of this Code, then the collector's action in revoking said person's business license shall be conclusive as to all matters involved, and the transacting and carrying on by any person of any business pursuant to said license shall thereafter be deemed a misdemeanor. Section 14. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 15. Effective Date. This Ordinance shall be effective thirty days after its adoption by the City Council of the City of Santa Ana. // // 25 75A-41 ADOPTED this day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By:, Lisa Storck Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on 2019, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 26 75A-42 EXHIBIT 2 LS 8.20.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CERTAIN SECTIONS OF ARTICLE XIII OF CHAPTER 18 OF THE SANTA ANA MUNICIPAL CODE PERTAINING TO MEDICINAL MARIJUANA AND CHAPTER 40 OF THE MUNICIPAL CODE PERTAING TO COMMERCIAL CANNABIS TO UPDATE AND STREAMLINE IMPLEMENTATION OF COMMERCIAL CANNABIS, INCLUDING MEDICINAL CANNABIS PURCHASING AGE (SECTION 18-613), EMPLOYEE BADGES (SECTIONS 18-613 AND 40-8), MANUFACTURING PERMIT REQUIREMENTS (SECTION 40-8), AND ADMINISTRATION AND IMPLEMENTATION AMENDMENTS (SECTIONS 18-617.5, 40-1, 40-2, 40-5. 40-8, 40-9.1. AND 40-10) THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") which was codified in Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern medicinal marijuana and the retail sale thereof. B. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety Act further amended in 2016 as the Medical Cannabis Regulation and Safety Act which established regulations and a state licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. C. In November 2016, the voters of the State of California approved Proposition 64, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act. D. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act. E. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. F. Since November 2014, the City of Santa Ana has permitted the retail sale of cannabis for medicinal purposes and since January 2018 for adult -use purposes. On March 1 75A-43 20, 2018, the City Council adopted Ordinance NS-2941 and NS-2942, allowing and regulating commercial cannabis testing laboratories. G. On April 17, 2018, the City Council adopted Ordinance NS-2944 allowing and regulating commercial cannabis cultivation, distribution, and manufacturing activities. H. On November 6, 2018, the voters of the City of Santa Ana approved Measure Y (Ordinance NS-2962), establishing a tax on commercial cannabis business activities except medicinal cannabis retail sales, which continue to be subject to taxes under Measure BB. I. The State of California continues to update its regulations on commercial cannabis business licensing, resulting in the need for local jurisdictions to update and amend local commercial cannabis ordinances from time to time. J. The City Council of the City of Santa Ana intends that nothing in this article shall be deemed to conflict with federal law as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or other applicable law. K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not cultivated, manufactured or distributed in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these uses may operate, and in providing access of cannabis to residents. L. The City Council has held a duly noticed public hearing on August 20, 2019 in connection with consideration and adoption of this ordinance. Section 2. This Ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including but not limited to: Article IX, Section 7 of the California Constitution, the Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5), the Medical Marijuana Program (California Health and Safety Code Section 11362.7 et seq.), the Medical Marijuana Regulation and Safety Act (AB 266, AB 243, and SB 643; hereafter "MMRSA"), the Adult Use of Marijuana Act (Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act (SB 94; hereafter "MAUCRSA"). Section 3. Pursuant to the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment. As a result, a Notice of Exemption will be filed upon the adoption of this ordinance. Section 4. All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the City Charter. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. tl 75A-44 Section 5. Section 18-613 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18-613. - Operating Standards. (a) At all times the collective is open, a collective shall provide at least one (1) security guard who is licensed, possesses a valid department of consumer affairs "security guard card", and has a valid Santa Ana Business License. In the event that the security guard is employed by an outside security guard company; such security guard company shall maintain a valid Santa Ana Business License. (b) The security guard and collective personnel shall monitor the site and the immediate vicinity of the site to assure that patrons immediately leave the site and not consume medical marijuana in the vicinity of the collective or on the property or in the parking lot. (c) Exterior signage shall comply with Article XI of Chapter 41. Interior signage or advertising may not be visible from the exterior. Collectives and dispensaries must comply with the advertising and marketing provisions of Business and Professions Code §§ 26150-26155. (d) No recommendations from a doctor for medical marijuana shall be issued on -site. (e) There shall be no on -site sales of alcohol or tobacco products, and no on -site consumption of food, alcohol, tobacco or marijuana by patrons. (f) Hours of operation shall be limited to: 7:00 a.m. to 11:00 p.m. daily. No licensed dispensary/collective shall be open to the public between the hours of 11:01 p.m. and 6:59 a.m. of any day. (g) The property shall provide an air treatment system with sufficient odor absorbing ventilation and exhaust systems so that odor generated inside the location is not detected outside the building, anywhere on adjacent property or public rights -of - way, or within any other unit located within the same building as the collective if the use only occupies a portion of a building. (h) A collective shall only dispense medical marijuana to qualified patients and their caregivers as defined by California Health and Safety Code § 11362.5 (Proposition 215). This shall include possession of an original valid doctor's recommendation, not more than one (1) year old, for medical marijuana use by the patient. (i) A collective shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location: (1) Use of medical marijuana shall be limited to the patient identified on the doctor's recommendation. Secondary sale, barter or distribution of medical marijuana is a crime and can lead to arrest. (2) That loitering on and around the collective site is prohibited by California Penal Code § 647(e) and that patrons must immediately leave the site and not consume medical marijuana in the vicinity of the collective or on the property or in the parking lot. (3) Forgery of medical documents is a felony crime. (4) A warning that patrons may be subject to prosecution under federal marijuana laws. (5) That the use of medical marijuana may impair a person's ability to drive a motor vehicle or operate machinery. 75A-45 Q) A collective shall not provide marijuana to any individual in an amount not consistent with personal medical use. (k) All agents, private security officers or other persons acting for or employed by a collective shall display a laminated identification badge at least two (2) inches by two (2) inches in size, issued by the sellective Cifty. The badge, at a minimum, shall include the GelleGtiye's "doing businessnamed liGense numbeF,the employee's first and last name, date of most recent Live Scan, expiration date of Live Scan results after the one-vear period and a color photo of the employee that shows the full front of the employee's face. (1) No one under twe^ty Gne (21 eighteen t18) years of age shall be permitted to enter establishment, unless such person is a qualified patient and is accompanied by his or her primary caregiver, licensed attending physician, parent(s) or documented legal guardian. (m) A collective shall provide the name and phone number of an on -site staff person to the police department and the code enforcement division of the planning and building agency for notification if there are operational problems with the establishment. (n) Each collective owner, operator(s) and employees shall complete a criminal background check and wear a visible photo ID at all times during operating hours. Owners, operator(s), employees, managers or volunteers may not have been convicted of, or pleaded guilty/no-contest to a felony or misdemeanor drug charge within the past four (4) years; nor shall they be a person required to register as a controlled substance offender pursuant to Health and Safety Code section 11590. (o) Marijuana shall not be grown or cultivated at collective sites, except that cuttings of the marijuana plant may be kept or maintained on -site for distribution to qualified patients and primary caregivers as follows: (1) The cuttings shall not be utilized by a collective as a source for the provision of marijuana for consumption on -site, however, upon provision to a qualified patient or primary caregiver, that person may use the cuttings to cultivate marijuana plants off -site for their own use and they may also return marijuana from the resulting mature plant for distribution by the collective. (2) For the purposes of this paragraph, the term "cutting" shall mean a rootless piece cut from a marijuana plant, which is no more than six (6) inches in length, and which can be used to grow another plant in a different location. (p) A collective shall comply with applicable provisions of the California Health and Safety Code §§ 11362.5 through 11362.83, inclusive. (q) If food is distributed, the collective shall comply with all relevant state laws and city and/or county ordinances pertaining to the preparation, distribution and sale of food. (r) The location, interior and exterior, shall be monitored at all times by web -based closed-circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the location. The recordings shall be maintained for a period of not less than ninety (90) days. The police department may request the recordings in connection with an 75A-46 investigation. If the recordings are not voluntarily provided, the police department may seek a warrant or court order for the recordings. (s) The location shall have a centrally -monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows and the building or the portion of the building where the collective is located shall contain a fire -proof safe or fire -proof filing cabinet and include a safety and security plan. (t) Reserved. (u) Reserved. (v) If the collective operator is not the owner of the property where the collective is to operate, the operator shall provide evidence that the property owner(s) consent to the operation of a collective on the property. (w) Collectives must obtain and maintain a valid city business license at all times as a condition for receiving, renewing, and maintaining their regulatory safety permit. (x) Occupancy shall not exceed that required under the Uniform Building Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the main entrance. Section 6. Section 18-617.5 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18-617.5. - Audits. Annual audits. No later than lane 30 September 301' of every year, each collective shall file with the city an audit or financial review of its operations of the previous calendar year. The form and contents of the document shall be specified by the executive director of finance and management services, or his/her designeeu. Section 7. Section 40-1 of Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 40-1. — Purpose and intent. A. The purpose and intent of this article is to regulate commercial cannabis business activities, as defined in this article, in order to ensure the health, safety and welfare of the residents of the City of Santa Ana by establishing regulations necessary for commercial cannabis business operating in the City of Santa Ana to obtain and maintain a Regulatory Safety Permit ("RSP"). Any commercial cannabis businesses operating in the City of Santa Ana shall at all times be in compliance with current State Law and this article. All commercial cannabis facilities shall operate in accordance with the regulations in this article and with the conditions of approval associated with the applicable zone for the parcel of real property upon which the commercial cannabis activities are conducted. Any commercial cannabis business shall qualify for and receive a Regulatory Safety Permit from the City of Santa Ana as provided by this article and operate only in a zone in compliance with Santa Ana Municipal Code before commencing with any commercial cannabis business activity. Any commercial cannabis s 75A-47 business without a Regulatory Safety Permit is in violation of this article. The regulations in this article, in compliance with the Compassionate Use Act, the Medicinal Marijuana Program Act, SB 94, AB 133, Proposition 64, and the California Health and Safety Code (collectively referred to as "State Law") do not interfere with the right to use adult -use cannabis or medicinal cannabis as authorized under State Law, nor do they criminalize the possession of cannabis as authorized under State Law. B. Any person operating a medicinal marijuana collective/cooperative (as defined in Chapter 18 of this Code) as of December 14, 2017, or who has a RSP application pending to operate a medicinal collective/cooperative, and has met all of the requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for the sale of Adult -Use cannabis provided that they enter into the Adult Use Commercial Cannabis Retailef Operating Agreement with the City. C. The Commercial Cannabis Operating Agreement shall be a legally binding written agreement between each commercial cannabis business operator and the City, executed by the City Manager, or his or her designee, and in a form and substance satisfactory to the Executive Director of Planning and Building and the City Attorney, and containing those provisions necessary to ensure that the requirements of this article are satisfied. A distinct Commercial Cannabis Operating Agreement shall be required for each location and type of commercial cannabis business activity taking place at an approved Commercial Cannabis Business. Section 8. Section 40-2 of Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 40-2. - Definitions. The definitions are incorporated herein as fully set forth and are applicable to this article. All definitions are intended to comply with those set forth by the State of California for all commercial cannabis business activities. 1. "Applicant' means a person who is required to file an application for a permit under this article, including an individual owner, managing partner, officer of a corporation, or any other operator, manager, employee, or agent of a commercial cannabis business. 2. "Adult -Use" means cannabis or cannabis products that are intended to be used for non -medicinal purposes by a person twenty-one (21) years of age or older. 3. "Adult -Use Cannabis Retailer Operating Agreement' or "Operating Agreement' means the agreement entered into by and between the City and the commercial cannabis business operator which will specify terms for local hiring and sourcing, community benefit plans, and fees to compensate for authorized impacts on City services. 0 75A-48 4. "Adult -Use cannabis retail business" means an Adult -Use retail business that obtains a Regulatory Safety Permit and engages in the delivery or sale of Adult -Use cannabis, or an Adult -Use cannabis product, except as related Business and Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through 11362.45, as amended from time to time, excepting medicinal cannabis retail. 5. "Authorized City of Santa Ana representative" means any police officer, city employee, contractor or agent of the city designated by the director of any city department which has the authority and responsibility to enforce provisions as set forth in this article. 6. 'Business owner" means any of the following: a. A person with an aggregate ownership interest of twenty (20) percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. b. The chief executive officer of a nonprofit or other entity c. A member of the board of directors of a nonprofit. d. An individual who will be participating in the direction, control, or management of the person applying for a license. 7. "Cannabis" or "cannabis product' means all parts of the Cannabis sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, 'cannabis" does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. 8. "City" means the City of Santa Ana, a charter city and municipal coPporation. 9. "Commercial cannabis activity" means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for this Chapter. Permitted commercial cannabis activities are listed in Land Use Table 40-5 of this Chapter. 7 75A-49 10. "Commercial cannabis business" means a business that obtains a Regulatory Safety Permit and engages in the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, distribution, delivery, or sale of adult -use cannabis, medicinal cannabis or an adult -use cannabis or medicinal cannabis product, except as related Business and Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through 11362.45, as amended from time to time. 11. "Cultivation" means to plant, grow, harvest, dry, cure, grade or trim cannabis, as defined by California Business and Professional Code Section 26001, as amended from time to time. 12. "Customer" means a natural person twenty-one (21) years of age or over. 13. "Delivery" means the commercial transfer of cannabis or cannabis products from a retail cannabis business to a customer up to an amount determined to be authorized by the State of California, or any of its departments or divisions. "Delivery" also includes the use by a retail cannabis business of any technology platform owned, controlled, and/ or licensed by the retail cannabis business, or independently licensed by the State of California under the State law (as amended from time to time), that enables anyone to arrange for or facilitate the commercial transfer by a licensed retail cannabis business of cannabis or cannabis products. For the purposes of this article, "delivery" does not include distribution or purchase of cannabis from a licensed cultivator, and cannabis products from a licensed manufacturer, for sale to a licensed cannabis retail business. 14. "Delivery employee" means an individual employed by a licensed retail cannabis business who delivers cannabis goods from the permitted retail premises to a customer at a physical address. 15. "Display" means cannabis goods that are stored in the licensed retail business during the hours of operation. 16. "Distribution" means the procurement, sale, and transport of cannabis or cannabis products between Licensees. 17. "Edible cannabis product' means manufactured cannabis that is intended to be used, in whole or in part, for consumption. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code. 18. "Free sample" means any amount of commercial cannabis goods provided to a purchaser of cannabis without cost or payment or exchange of any other thing of value. 19. "Labor Peace Agreement' means a legally binding agreement between an employer and a labor organization in which the employer agrees to remain neutral in the event its employees wish to unionize, as described more fully in Business and Professions Code 26001(x), as amended from time to time. N 75A-50 20. "License/Licensee" means a license issued by the State and includes both an A - license (Adult -Use) and an M-license (Medicinal), and the holder of such license. 21. "Manufacturer" means a Licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. 22. "Manufacturing" means all aspects of the extraction and/or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. Manufacturing also includes any processing, preparing, propagating, holding, or storing of components and ingredients. 23. "Medicinal cannabis patient' is a person whose physician has recommended the use of cannabis to treat a serious illness, including cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. 24. "Micro -Business" means a commercial cannabis business that cultivates cannabis on an area less than ten thousand (10,000) square feet and acts as a licensed distributor, Level 1 manufacturer, and retailer. 25"Non volatile solvent" means any solvent used in the extrond'nn nr0GA-8G that es Ra 1 amended by the State , Tax .. .�.-..... 256. "Nursery" means a commercial cannabis Licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. 267. "Medicinal/medical cannabis" or "Medicinal cannabis product', means cannabis or a product containing cannabis, including, but not limited to, concentrates, and extractions, intended to be sold for use by medicinal cannabis patients in California pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the California Health and Safety Code. Medicinal cannabis retail is regulated by Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. 278. "Outdoor cultivation" means the cultivation of cannabis outside a permanent enclosed building. Outdoor cultivation is prohibited within the City of Santa Ana. 280. "Ownership interest' means an interest held by a person who is an owner as defined by State of California commercial cannabis regulations or who has a financial interest in the commercial cannabis business of twenty (20) percent or more. 29.30. 'Package" and "Packaging" means any container or wrapper that may be used for enclosing or containing any cannabis goods for final retail sale. 'Package" and E] 75A-51 "packaging" does not include a shipping container or outer wrapping used solely for the transport of cannabis goods in bulk quantity to a Licensee. 304. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. 312. "Premises" means the designated structure(s) and land specified in the application that are in possession of and used by the applicant or Licensee to conduct the commercial cannabis activity. 323. "Primary Caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code, as amended from time to time. 334. "Private Residence" shall have the same definition as that contained in Health and Safety Code section 11362.2(5) and also means a lawfully established structure, suitable for human occupancy as required by section 17922 and 17958 of the California Health and Safety Code. A recreational vehicle does not constitute a lawfully established structure for the purposes of this article. 345. "Private security officer" has the same meaning as that term as defined in the State of California Business and Professions Code section 7574.01. 356. "Purchase" means obtaining cannabis goods in exchange for consideration. 367. "Purchaser" means a person who is engaged in a transaction with a Licensee for purposes of obtaining cannabis goods. 373. "Qualified patient" has the same meaning as such term is defined in California Health and Safety Code section 11362.5, as amended from time to time, and means a person whose physician has recommended the use of cannabis to treat a serious illness, including cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. 389. "Responsible person" means any of the following: a) A person who causes a Code violation to occur. b) A person who maintains or allows a Code violation to continue by way of his or her action or failure to act. c) A person whose agent, employee, or independent contractor causes a Code violation by its failure to act. d) A person who is the owner of, and/or a person who is a lessee or sub lessee with the current right of possession of, real property where property -related Code violation occurs. e) A person who is the on -site manager of a business who normally works daily at the site when the business is open and is responsible for the activities of such premises. 10 75A-52 3949. "Retail business" means a premises where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination for retail sale, including an establishment that delivers cannabis or cannabis products as part of a retail sale. 404. "Regulatory Safety Permit (RSP)" means a permit issued by the City pursuant to this article to a commercial cannabis business. 413. "Sell," "sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis is transferred from one (1) person to another, and includes the delivery of cannabis goods pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis goods by a Licensee to the Licensee from whom such cannabis goods were purchased. 423. "State" means the State of California. 434. "Testing Facility" or "Testing Laboratory" defined in the Business and Professions Code section 26001, as amended from time to time, means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: a) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and, b) Licensed by the Bureau of Cannabis Control. 45. "Volatile solvent" means aRy solvent that is er pFedwees a flarnmable gas E)F vaper that, when pFesent In the a1F iR sufflGient quantities, will create explosive oF ignitable rno)duFes. Examples F volatile solvents inn' -de but aFG .. t limited to butane, hexaRe gB4 propane, and ethanol, OF as it may be defiRed and amended by the State. 446. "Wholesale" means the sale of cannabis goods to a distributor for resale to one (1) or more retail cannabis businesses. Section 9. Section 40-5 of Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 40-5. - Zoning compliance and regulatory safety permit requirements. Commercial cannabis activities are expressly prohibited in all zones in the City of Santa Ana; however, specific commercial cannabis businesses are allowed as a speslal use in the Industrial zone zoning districts (M-1, M-2). The allowed current permit types are described in Table 40-5 and the City of Santa Ana's zoning ordinance as a requisite for obtaining a Regulatory Safety Permit. No commercial cannabis business may operate in the City of Santa Ana without a Regulatory Safety Permit. 11 75A-53 r This Land Use Table 40-5 shall be used to determine whether a commercial cannabis business is permitted — "P", or not permitted — "X". Any commercial cannabis business in the City of Santa Ana shall also operate in compliance with the City's zoning ordinance. If a Zoning District is not listed in the Land Use Table in this section then the use is expressly not permitted. City of Santa Ana Municipal Code Table 40.5 Commercial — I Cannabis Regulatory Business Land Use M-1 M-2 Safetv Activities Use Classification Zone Zone Permit Type j Required (Yes Cultivator/Nursery (ndooronly ;P ' Cultivator/Nurse Outdoor or mixed- flight I"' �NA f !!Indoor/Outdoor — —� (Type B 5 Lar ej Cultivator/Nursery (Grows. as defined IX iX NA I and amended by j 1the State Manufacturing iMaMa faun cturing P P Yes Medicinal Retail — Retail 1(SAMC ChapterlP �P Yes 18) I Retail ;Adult -Use Retail �P P IYes Adult -Use and/or i Testing Laboratory {Medicinal iP jP Yes i Industrial Distribution !Freight/Transport TP P ;Yes 12 75A-54 ----- ----- -----_I--- ---------- X P —only as 'X P — only as part part of a of a vertically- vertically- integrated/co- integrated/co - Cultivation/Retail/ located business located Micro -Business Manufaetare/Manu in full business in full PIA Yes fistribuution conformance with conformance (DDistri (the requirements with thel of this article and requirements of Chapter 18. this article and' Chapter 18. 1 ��• Section 10. Section 40-8 of Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 40-8. - General provisions for commercial cannabis activities in the City of Santa Ana. 1. Regulatory Safety Permit Required. a. Each commercial cannabis business shall obtain a Regulatory Safety Permit (RSP) specific to the business activity or activities defined by the State pertaining to that activity. The only allowed current permit activity types pursuant to this article are for commercial cannabis retail sales and cultivation, distribution, manufacturing, and testing laboratories/facilities. Co -location is permitted pursuant to Section 40-9.3.1. b. It shall be unlawful for any person, as defined by this ordinance, to engage in, conduct or carry on, in or upon any premises within the City of Santa Ana any commercial cannabis business without a RSP. A commercial cannabis business shall register and obtain a RSP from the City of Santa Ana prior to operation. The RSP applicant shall pay an annual non-refundable application fee in an amount established by the City Council. 13 75A-55 c. A copy of the RSP shall be displayed at all times in a place visible to the public. d. A RSP shall be valid for a period of one (1) year from the date of issuance, unless sooner revoked. No permit granted herein shall confer any vested right to any person or business for more than the above -referenced period. 2. Maintenance of Records and Reporting. All records shall be maintained by the commercial cannabis business for a period of five (5) years and shall be made available by the commercial cannabis business to an authorized City of Santa Ana representative upon request. If they are not produced as requested, the City may seek a search warrant, subpoena, or court order. In addition to all other formats that the commercial cannabis business may maintain, these records shall be stored by the business at the location in a printed format in a fire -proof safe or filing cabinet. Any loss, damage or destruction of the records shall be reported to the Police Department within twenty-four (24) hours of the loss, destruction or damage. a. The business shall obtain and maintain a valid Seller's Permit from the State Board of Equalization. b. Financial records include, but are not limited to: bank statements, sales invoices, receipts, tax records, and all records required by the California State Board of Equalization under Title 18 California Code of Regulations section 1968. c. Personnel records, including each employee's full name, address, phone number, social security, or individual tax payer identification number, date of beginning employment, and date of termination of employment if applicable. d. Training records, including, but not limited to, the content of the training provided and the names of the employees that received the training. e. Contracts with other businesses regarding commercial cannabis business activity. f. Permits, licenses, and other local authorizations to conduct the commercial cannabis business activity. g. Security records, as outlined in the Operational Standards for All Commercial Cannabis Business Activities. h. Proof of building ownership or landlord letter acknowledging business type. I. Proof of insurance. 3. Operational Standards for All Commercial Cannabis Business Activities. a. The location, interior and exterior, shall be monitored at all times by web - based closed circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the 14 75A-56 ready identification of any individual committing a crime anywhere on or adjacent to the location. The recordings shall be maintained unaltered in a secure location for a period of not less than ninety (90) days. The Police Department may request the recordings in connection with an investigation. b. All controlled access areas, security rooms and all points of ingress/egress to limited access areas and all point of sale (POS) areas shall have fixed camera coverage capable of identifying activity occurring within a minimum of twenty (20) feet. c. The surveillance system storage device or cameras shall be transmission control protocol/TCP capable of being accessed through the internet by the police department or their designee on request. d. If applicable, the applicant shall conduct and pay for any required CEQA reviews and analyses, and pay for all costs, including those of the City, associated with project review under CEQA. e. Commercial cannabis businesses shall create and maintain an active account within the State's track and trace system prior to commencing any commercial cannabis retail activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within twenty-four (24) hours of the system being available. f. No physical modification of the licensed premises is allowed without written prior permission by the City of Santa Ana and payment of any additional fees required by the City. g. Commercial cannabis business businesses shall provide adequate off-street parking and comply with the City of Santa Ana Municipal Code parking requirements in order to service customers without causing negative impact. h. The commercial cannabis business shall provide adequate disabled access parking per the requirements in the California Building Code. i. The commercial cannabis business shall minimize nuisances such as trash, litter, and graffiti. j. Any and all signage, packaging, and facilities shall not be "attractive", as it is defined by the State, to minors. k. Commercial cannabis business facilities shall be required to provide an air treatment system that ensures off -site odors shall not result from its operations. This requirement at a minimum means that the facility shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location is not detected outside the building, in any adjacent tenant suites, on adjacent properties or public rights -of -way, or within 15 75A-57 any other unit located within the same building as the facility if the use occupies only a portion of a building. I. The commercial cannabis business shall comply with all State regulations regarding: i. Testing, labeling and storage of all cannabis products. ii. Use of appropriate weighing devices. iii. Electrical and plumbing regulations subject to periodic and unannounced inspections to ensure compliance. iv. State deadlines for applying for a State license and receiving a State license within six (6) months after the date the State begins issuing licenses. This may be waived if the State has longer delays in issuing licenses of the type the commercial cannabis business seeks. m. The commercial cannabis business shall maintain a comprehensive general liability combined single occurrence insurance policy issued by an "A" rated insurance carrier in an amount no less than two million dollars ($2,000,000.00), with primary coverage, naming the City of Santa Ana as additional insured. n. No free samples of any cannabis or cannabis product may be distributed at any time. o. All agents, private security officers or other persons acting for or employed by a collective shall display a laminated identification badge at least two (2) inches by two (2) inches in size, issued by the seNestiae Cam. The badge, at a minimum, shall include the ^^0eGtive'^ udeiR^ b U^ and I'^^^s^ numbeF, the employee's first and last name, date of most recent Live Scan, expiration date of Live Scan results after the one-year period and a color photo of the employee that shows the full front of the employee's face. p. All private security officers acting for or employed by a commercial cannabis business shall be licensed by the State and issued a business license from the City of Santa Ana. q. The commercial cannabis business shall have a centrally -monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows and the building or portion of the building where the business is located shall contain a fire -proof safe or fire proof filing cabinet and include a safety and security plan. r. The commercial cannabis business shall ensure a licensed alarm company operator or one (1) or more of its registered alarm agents installs, maintains, monitors and responds to the alarm system. The alarm company shall obtain a City of Santa Ana business license. 16 75A-58 S. The commercial cannabis business shall provide the name and phone number of an on -site staff person to the police department and the Code Enforcement Division of the Planning and Building Agency for notification if there are operational problems with the establishment. t. The commercial cannabis business must obtain and maintain a valid City business license at all times as a condition for receiving, renewing, and maintaining its regulatory safety permit. u. Occupancy shall not exceed that required under the Uniform Building Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the main entrance. v. For any commercial cannabis business with two (2) or more employees, the business owner shall attest that he/she has entered into a labor peace agreement and provide a copy of the agreement to the City. w. Each commercial cannabis business owner, operator(s) and employee(s) shall complete a criminal background check and wear a visible photo ID at all times during working hours. Owners, operators, employees, managers or volunteers may not have been convicted of, or pled guilty/no-contest to a felony or misdemeanor drug charge within the past four (4) years; nor shall they be a person required to register as a controlled substance offender pursuant to Health and Safety Code section 11590. x. All signage for the commercial cannabis business must comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. y. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. 4. Additional Operational Standards for Adult -Use Cannabis Retail Business. a. At all times the Adult -Use cannabis retail business is open, it shall provide at least one (1) private security guard who is licensed, possesses a valid Department of Consumer Affairs "security guard card", and has a valid business license from the City of Santa Ana. b. The private security guard and adult -use retail cannabis business personnel shall monitor the site and the immediate vicinity of the site to ensure that patrons immediately leave the site and do not consume cannabis in the vicinity of the retail business or on the property or in the parking lot. c. Exterior signage shall comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. Interior signage or advertising may not be visible from the exterior. Retail cannabis businesses must comply with the advertising and marketing provisions of Business and Professions Code §§ 26150-26155. 17 75A-59 d. There shall be no on -site sales of alcohol or tobacco products, (excluding rolling papers and lighters) and no on -site consumption of food, alcohol or tobacco by patrons. e. Hours of operation shall be limited to: 7:00 a.m. to 10:00 p.m. daily. No licensed retail business shall be open to the public between the hours of 10:01 p.m. and 6:59 a.m. of any day. f. The Adult -Use cannabis retail business shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location: I. Secondary sale, barter or distribution of adult -use cannabis is a crime and can lead to arrest. ii. That loitering on and around the retail site is prohibited by California Penal Code § 647(e) and that patrons must immediately leave the site and not consume cannabis in the vicinity of the retail site or on the property or in the parking lot. iii. A warning that patrons and/or employees may be subject to prosecution under federal cannabis laws. iv. That the use of cannabis may impair a person's ability to drive a motor vehicle or operate machinery. g. No one under the age of twenty-one (21) shall be allowed to enter an Adult - Use cannabis facility unless the licensed Adult -Use cannabis facility holds a medicinal use cannabis RSP issued by the City and retail license issued by the State, and the licensed premises for the adult -use cannabis license and medicinal cannabis license are the same in accordance with Business and Professions Code section 26140. h. If non -cannabis food is distributed, the retail business shall comply with all relevant State laws, County and City ordinances pertaining to the preparation, distribution and sale of food. I. All Adult -Use cannabis retail businesses shall establish and implement a program to incentivize the recycling of used containers. Failure to establish and implement a program to incentivize the recycling of used containers will result in a violation of the terms of the required commercial cannabis Operating Agreement requiring sustainable building or business practices. j. Adult -Use cannabis retail businesses shall also record on the video surveillance system point -of -sale areas and areas where cannabis goods are displayed for sale. 18 75A-60 k. Adequate signage shall clearly state who has inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location. I. Shipments of cannabis goods may only be accepted during regular business hours. m. Inventory shall be secured using a lockable storage system during non - business hours. n. No cannabis product shall be visible from the exterior of the business. o. All required labelling shall be maintained on all product, as required by State law, at all times. p. Educational tours of adult -use retail cannabis businesses shall be allowed. q. A permitted commercial cannabis retail business shall have one hundred eighty (180) days after permit issuance by the City of Santa Ana to operate. A permitted commercial cannabis retail business that ceases to operate for more than ninety (90) calendar days shall be deemed "abandoned" and the permit shall be forfeited. A permitted commercial cannabis business may temporarily suspend operations for a period of time as may be reasonably required to affect upgrades, modifications, repairs, or other property issue mitigations as approved by the Director of Planning and Building or his or her designee. For the purposes of this section, "operate" shall mean that the gross receipts fees charged for the business exceed the fee per square foot calculations by the end of the one hundred eighty (180) day period. 5. Additional Operational Standards for Commercial Cannabis Retail Delivery Services. a. Commercial cannabis retail deliveries may be made only from a commercial cannabis retail business permitted by the City in compliance with this article, and in compliance with all State regulations. b. All employees who deliver cannabis shall have valid identification and a copy of the commercial cannabis retail business' Regulatory Safety Permit and State license at all times while making deliveries. c. All commercial cannabis retail businesses shall maintain proof of vehicle insurance for any and all vehicles being used to transport cannabis goods as required by State law. d. Deliveries may only take place during normal business hours of the commercial cannabis retail business. e. During delivery, the delivery employee shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the 19 75A-61 licensing authority and law enforcement officers. The delivery request documentation shall comply with State law. f. A licensed delivery employee shall not leave the State of California while possessing cannabis products. g. A commercial cannabis retail business shall maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered, and any other information required by the State. h. A manifest with all information required in this section shall accompany any delivery person at all times during the delivery process and delivery hours. I. Any delivery method shall be made in compliance with State law, as amended, including use of a vehicle that has a dedicated GPS device for identifying the location of the vehicle (cell phones and tablets are not sufficient). j. Each delivery request shall have a receipt prepared by the commercial cannabis retail business with the following information: I. Name and address of the commercial cannabis retail business. ii. The name of the employee who delivered the order. iii. The date and time the delivery request was made. iv. The complete delivery addresses. v. A detailed description of the cannabis goods requested for delivery including the weight or volume, or any accurate measure of the amount of cannabis goods requested. vi. The total amount paid for the delivery including any fees or taxes. k. At the time of the delivery, the date and time delivery was made, and the signature of the person who received the delivery. I. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement with the exception of a maximum four -inch by four -inch decal. M. Inspections by an authorized City of Santa Ana representative may be conducted anytime during regular business hours. 6. Additional Operational Standards for Commercial Cannabis Testing Facilities or Laboratories. a. A licensed cannabis testing facility or laboratory business, its owners and employees may not hold an interest in any other cannabis business except another testing laboratory business. 75A-62 b. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. c. Educational tours of cannabis testing facility/laboratory businesses shall be allowed. 7. Additional Operational Standards for Commercial Cannabis Manufacturing Facilities. volatile solvents in the maRLifaGtUFiR9 PFOGess as d-e-fined- in the G lifernia Health Safety Cede § 11362.775(b)(1)(A) and as amended from tiMP to tiMe, LIRIess ba. A licensed commercial cannabis nen velatile manufacturing facility may conduct all activities permitted by the State. This includes, but is not limited to: non-velatile extractions, repackaging and relabeling, infusions and extractions. eb. Any manufacturing that will be conducted by the commercial cannabis business shall be included on the application. No additional manufacturing activity can be conducted without notifying the Executive Director of the Planning and Building Agency or his or her designee, after which a determination will be made if the new activity may commence with or without modification to the RSP or if a new RSP is required. dc. At all times, the commercial cannabis manufacturing facility will be compliant with all State regulations for cannabis manufacturing including Health and Safety Code § 11362.775, as amended from time to time. Signage shall be posted regarding the type(s) of chemicals being used at the manufacturing facility. ed. Cannabis manufacturing facilities shall not contain an exhibition or product sales area or allow for retail distribution of products at that location unless the facility is co -located with an approved commercial cannabis retail business with a RSP. fe. Extraction equipment and extraction process utilizing hydrocarbon solvents shall be located in a room or area dedicated to extraction. gf. All commercial cannabis manufacturing/processing facilities shall comply with any and all applicable safety guidelines adopted by the Orange County Fire Authority, the State of California, and/or the City of Santa Ana for cannabis plant processing and extraction. 8. Additional Operational Standards for Indoor Commercial Cannabis Cultivation Facilities. 21 75A-63 a. There shall be no exterior evidence of cannabis cultivation from a public right-of-way. b. The Building Official may require additional specific standards to meet the California Building Code and Fire Code, including but not limited to installation of fire suppression sprinklers. c. Compliance with Section 13149 of Water Code as enforced by the State Water Resources Control Board Is required. d. All commercial cannabis cultivation facilities shall comply with any and all applicable safety guidelines adopted by the Orange County Fire Authority, the State of California, and/or the City of Santa Ana for cannabis carbon dioxide enrichment systems. e. Cannabis cultivation facilities shall not contain an exhibition or product sales area or allow for retail distribution of products at that location unless the facility is co -located with an approved commercial cannabis retail business with a RSP. 9. Additional Operational Standards for Commercial Cannabis Distribution Facilities. a. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. b. A distributor shall ensure that all cannabis goods stored in compliance with all applicable State regulations to ensure conformance to any and all applicable Track and Trace systems required by the State. c. Employee breakrooms, eating areas, changing facilities, locker rooms and bathrooms shall be completely separated from the storage areas. Section 10. Sections 40-9 and 40-9.1 of Article I of Chapter 40 of the Santa Ana Municipal Code are hereby amended to read in full as follows: Sec. 40-9. - Commercial cannabis selection process. 1. Commercial Cannabis — Registration Application and Regulatory Safety Permit Required. a. Existing medicinal cannabis business operators, or those with pending applications for a medicinal RSP, who desire to operate an adult cannabis retail business shall apply for the cannabis Regulatory Safety Permit ("RSP") on or before December 14, 2017. The Director of Planning and Building shall review such application and issue the RSP, without consideration of the merit based point system, so long as they satisfy all other requirements of this article and Chapter 18. b. The Regulatory Safety Permit ("RSP") selection process will be conducted in two (2) phases, Phase 1 (Registration Application) and Phase 2 (Regulatory 22 75A-64 Safety Permit Application). Registration Applications will be reviewed by the Director of Planning and Building or designees(s) for completeness and compliance, and if eligible, will be placed on the "Regulatory Safety Permit ("RSP") Eligibility List" and entered into the Phase 2 Regulatory Safety Permit Application process. In Phase 2, the City of Santa Ana has established a merit based point system for commercial cannabis retail businesses to objectively award permits as described in the Regulatory Safety Permit Application. 2. Phase 1— Registration Application. a. Following the adoption of this article, the Director of Planning and Building shall prepare commercial cannabis business registration application forms and a related administrative policy. Each commercial cannabis business interested in operating pursuant to this article may submit an application together with a non- refundable processing fee in an amount established by the City Council. b. The Registration Application period shall be thirty (30) calendar days from the date the applications are released. Following the application period, the Director of Planning and Building or designee(s) shall stop accepting applications and review all applications received in Phase 1. Each application that is complete and in compliance with the application requirements in Phase 1 shall be placed on the "RSP Eligibility List" and shall be notified in writing whether they are a "RSP Eligible Applicant" or not. Each applicant on the RSP Eligibility List may then choose to file an application for a RSP in Phase 2. c. The requirements for Phase 1 include, but are not limited to: I. All application documents required in the City's Phase 1 Registration Application package. ii. Application was submitted during the application period. iii. Application forms are filled out completely. the apptisatien. ivy. Phase 1 application fee is paid. vv_i. A signed statement that the proposed location of the commercial cannabis business on the application meets the zoning criteria established in this article including, but not limited to, any and all sensitive use separation criteria required by this article. vivii. Proof of site control for commercial cannabis retail businesses submitting Phase 1 applications on or after July 1, 2018. d. The Director of Planning and Building or his or her designee(s) shall determine whether each application demonstrates compliance with the minimum requirements (above) and be placed on the RSP Eligibility List and entered into the Phase 2 application and review process. 23 75A-65 e. The Director of Planning and Building or his or her designee(s) shall review each application upon submission and ensure that the application is complete. Incomplete applications will be promptly rejected and the applicant shall be notified in writing of the deficiencies. The applicant shall be given an opportunity to cure any incomplete or deficient application prior to the conclusion of the application processing term, if such time period Is applicable. Phase 2 — Regulatory Safety Permit Application. a. Each applicant identified on the RSP Eligibility List may choose to complete and file a RSP application to the Director of Planning and Building. The application shall be filed together with a nonrefundable fee as established by resolution of the City Council, to defray the cost of investigation required by this article. b. The RSP application period shall be open for thirty (30) calendar days and may run concurrently with the Phase 1 review period. Following the RSP application period, the Director of Planning and Building or designee(s) shall stop accepting applications and review all applications received in Phase 2. c. The Director of Planning and Building or designee(s) will review all application documents required in the City's Phase 2 application package plus the additional requirements in subsection (d) below. The Director of Planning and Building or his or her designee(s) will use a merit based point system to review and rank each of applications from the most to the least points and objectively award the top applicants a RSP. A complete description of the merit based point system and all merit based point considerations shall be included with the application forms. d. Phase 2 requirements include, but are not limited to: I. All application documents required in the City's Phase 2 RSP application package. ii. Phase 2 application fee is paid and a comprehensive ewneF background check is completed on all owners, employees, volunteers, managers security guards, and/or agents. iii. The Building Official or designee has inspected all structures in which the use is located to determine that all applicable standards and requirements are met. If a building permit is required for site improvements, Permit issuance will be deferred until a certificate of occupancy or other building permit approval is issued. Additionally, the Building Official has determined that there are no notices of nuisance or other code compliance issues recorded or on the property. iv. The Planning Manager or designee has issued zoning clearance documenting compliance with the following: The use is permitted; 2. All land use permits, if any, have been approved and all conditions of approval have been met or are in good standing; and, 24 75A-66 3. No zoning violations exist on the property. e. The Director of Planning and Building or his or her designee(s) shall review each application upon submission and ensure that the application is complete. Incomplete applications will be promptly rejected and the applicant shall be notified that business day of the deficiencies. The applicant shall be given an opportunity to cure any incomplete or deficient application prior to the conclusion of the application processing term, if such time period is applicable. 3.1 Commercial Cannabis — Registration Application and Regulatory Safety Permit for Additional Commercial Cannabis Business Activities on the Same Premises (Co - Location). a. An existing commercial cannabis business with an RSP may co -locate additional non -retail commercial cannabis business activities (cultivation, distribution, and/or manufacturing) by applying for a new RSP for the additional use(s). The new RSP must meet the all requirements of the Santa Ana Municipal Code except that background checks (live scans) shall only be required for any new staff as outlined in Section 40-8. A single RSP that lists any and all approved cannabis business activity/activities may be renewed annually thereafter. b. New or o -ending RSP applicants wishing to co -locate additional non -retail (cultivation, distribution, and/or manufacturing) uses may submit a new RSP for any of the non -retail commercial cannabis business activities. The additional RSP must meet the all requirements of the RSP except that background checks (live scans) shall only be required for any new staff as outlined in Section 40-8. A single RSP that lists any and all approved cannabis business activity/activities may be renewed annually thereafter. c. New commercial cannabis business applicants — co -location. 1. New commercial cannabis retail applicants wishing to co -locate additional non -retail (cultivation, distribution, and/or manufacturing) uses shall submit a separate RSPs for the proposed retail activity and another RSP for any of the non -retail (cultivation, distribution, and/or manufacturing) commercial cannabis business activities. Each RSP application will be evaluated independently and must meet any applicable requirements of the RSP as outlined in Sections 40-8 and 40-9, including, but not limited to, merit evaluation and additional separation requirements for the retail RSP. A single RSP that lists any and all approved cannabis business activity/activities may be renewed annually thereafter. 2. New non -retail commercial cannabis applicants wishing to co -locate additional non -retail (cultivation, distribution, and/or manufacturing) uses may submit a single RSP for the proposed activity or activities. The RSP application must meet any applicable requirements of the RSP as outlined in Sections 40-8 and 40-9. A single RSP that lists any and all approved cannabis business activity/activities may be renewed annually thereafter. 4. Regulatory Safety Permit Annual Renewal. 25 75A-67 a. Applications for the renewal of a permit shall be filed with the Director of Planning and Building or designee(s) at least sixty (60) calendar days before the expiration of the current permit. Temporary permits will not be issued. Any permittee allowing their permit to lapse or which permit expired during a suspension shall be required to submit a new application, pay the corresponding original application fees and be subject to all aspects of the selection process. b. Any person desiring to obtain a renewal of their respective permit shall file a written application under penalty of perjury on the required form with the Director of Planning and Building or trier or her designee(s) who will conduct a review. The application shall be accompanied by a nonrefundable filing fee established by the City Council to defray the cost of the review required by this article. An applicant shall be required to update the information contained in their original permit application and provide any new and/or additional information as may be reasonably required by the Director of Planning and Building or designee(s) in order to determine whether said permit should be renewed based on compliance with all applicable provisions of the Santa Ana Municipal Code. 5. Appeal of Denial of Regulatory Safety Permit/Denial of RSP Renewal. The City Manager or his or her designee(s) will review all Regulatory Safety Permit applications and renewal requests, along with all other relevant information, and determine if a RSP should be granted and/or renewed based on compliance with all applicable provisions of the Santa Ana Municipal Code. If the City Manager determines that the permit shall not be granted and/or renewed, the reasons for denial shall be provided in writing to the applicant. No such denial shall become effective until the applicant for the regulatory safety permit and/or renewal has been notified in writing by certified mail of the right to appeal the denial decision pursuant to the provisions of Chapter 3 of this Code. If a timely appeal is filed, the denial shall be effective only upon decision of a hearing officer as provided for in Chapter 3 of the Santa Ana Municipal Code. Otherwise, the denial shall become effective after the timely appeal period has passed. The matter may be subject to judicial review under the provisions of California Code of Civil Procedure Sections 1094.5 and 1094.6. Sec. 40-9.1. - Non -retail commercial cannabis business (cultivation, manufacturing, distribution, and testing facility/laboratory) selection process. 1. Non -Retail Commercial Cannabis Businesses — Registration Application (Phase 1) and Regulatory Safety Permit (Phase 2) Required. a. Every Non -Retail Commercial Cannabis Business shall apply for the Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application) in the manner described in Section 40-9, except that the Director of Planning and Building or his or her designee may accept Phase 1 and Phase 2 applications for a Non -Retail Commercial Cannabis Business concurrently, and shall review such applications and issue the Regulatory Safety Permit Application without 26 75A-68 consideration of the merit based point system, insofar as the applications satisfy all other requirements of this article and Chapter 18. b. Applications for a Non -Retail Commercial Cannabis Business shall be accepted during normal City Hall business hours and are not subject to the thirty (30) day Phase 1 or Phase 2 application periods. Section 11. Sections 40-10 of Article I of Chapter 40 of the Santa Ana Municipal Code are hereby amended to read in full as follows: Sec. 40-10. - Audits. Annual audits. No later than jURe 30th September 30th of every year, each licensed commercial cannabis business shall file with the City an audit or financial review of its operations of the previous calendar year. The form and contents of the document shall be specified by the Executive Director of Finance and Management Services, or his or her designee(s). Section 12. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. /// N W 27 75A-69 ADOPTED this day of , 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: Lisa torck Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana zs 75A-70 EXHIBIT 3 LS 8.20.19 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REDUCING THE COMMERCIAL CANNABIS GROSS RECEIPTS TAX FOR TESTING LABORATORIES FROM FIVE (5%) PERCENT TO TWO (2%) PERCENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In November 2016, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved by the voters of the State of California. The AUMA legalized recreational marijuana. B. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) establishing state regulations and licensing for retail sales, manufacturing, distribution, delivery and testing of adult -use (also called recreational) marijuana. C. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. Since 2014, the City has allowed medicinal marijuana collectives/ cooperatives to operate within the City pursuant to regulations set forth in Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. D. On March 20, 2018, the City Council adopted Ordinance NS-2941 and NS- 2942, allowing and regulating commercial cannabis testing laboratories. E. A general business license tax based on the gross receipts derived from commercial cannabis businesses and gross square footage would generate essential funds for protecting vital City services and facilities and place such businesses on more equal footing with existing City businesses, including medical marijuana businesses which already pay a business license tax. 75A-71 F. The City Council is authorized to impose general and special taxes in order to fund municipal services and facilities, subject to requisite voter approval as set forth in Government Code section 53720. G. The voters of the City of Santa Ana approved Measure Y (Ordinance NS- 2962) on November 6, 2018, for the purpose of fixing the rate of taxation for commercial cannabis businesses including delivery, distribution, manufacturing, cultivation, testing and retail sales of cannabis and related products. The taxes required to be paid under this article are declared to be required pursuant to the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and are not regulatory permit fees. H. The City of Santa Ana desires to remain at the forefront of commercial cannabis by allowing and regulating commercial cannabis business activities, routinely updating and amending its ordinances, and establishing commercial cannabis gross receipts tax rates that are competitive and provide for the needs of the Santa Ana community. I. The City of Santa Ana has a compelling interest in ensuring that cannabis is not sold in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these businesses may operate, and in providing access to safe and tested cannabis to residents. To ensure safe and tested cannabis, the City desires to see the establishment and successful operation of testing facilities and testing laboratories in the City. J. Section 21-133 (d) of Article XIII of Chapter 21 of the Santa Ana Municipal Code establishes the initial commercial cannabis testing facility of testing laboratory gross receipts tax rate at five (5%) percent. K. Section 21-133 (c) of Article XIII of Chapter 21 of the Santa Ana Municipal Code allows the City Council by resolution to implement any lower tax rate it deems appropriate. L. The City Council conducted a duly noticed public hearing on August 20, 2019, to consider the proposed tax reduction. Section 2. The City Council hereby establishes the commercial cannabis testing facility/testing laboratory gross receipts tax rate at two (2%) percent, lowering it from five (5%) percent. The reduced two (2%) percent gross receipts tax rate shall be deemed effective July 1, 2019. Resolution No. 2M-m Page 2 of 3 75A-72 ADOPTED this day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City AttorneyBy: mX Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Clerk of the Council City of Santa Ana Resolution No. 2019-xx Page 3 of 3 75A-73 75A-74 EXHIBIT 4 LS 8.20.19 RESOLUTION NO.2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING A CANOPY MEASUREMENT SERVICE FEE AND AN ALLOCATED SQUARE FOOTAGE MEASUREMENT SERVICE FEE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In November 2016, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved by the voters of the State of California. The AUMA legalized recreational marijuana. B. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) establishing state regulations and licensing for retail sales, manufacturing, distribution, delivery and testing of adult -use (also called recreational) marijuana. C. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. Since 2014, the City has allowed medicinal marijuana collectives/cooperatives to operate within the City pursuant to regulations set forth in Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. D. On March 20, 2018, the City Council adopted Ordinance NS-2941 and NS- 2942, allowing and regulating commercial cannabis testing laboratories. E. A general business license tax based on the gross receipts derived from commercial cannabis businesses and gross square footage would generate essential funds for protecting vital City services and facilities and place such businesses on more equal footing with existing City businesses, including medical marijuana businesses which already pay a business license tax. Resolution No. 2019-m Page 1 of 3 75A-75 F. The City Council is authorized to impose general and special taxes in order to fund municipal services and facilities, subject to requisite voter approval as set forth in Government Code section 53720. G. The voters of the City of Santa Ana approved Measure Y (Ordinance NS-2962) on November 6, 2018, for the purpose of fixing the rate of taxation for commercial cannabis businesses including delivery, distribution, manufacturing, cultivation, testing and retail sales of cannabis and related products. The taxes required to be paid under this article are declared to be required pursuant to the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and are not regulatory permit fees. H. The City of Santa Ana desires to remain at the forefront of commercial cannabis by allowing and regulating commercial cannabis business activities, routinely updating and amending its ordinances, and establishing commercial cannabis gross receipts tax rates that are competitive and provide for the needs of the Santa Ana community. I. Section 21-133, subsection (j)(8)(B) of Article XIII of Chapter 21 of the Santa Ana Municipal Code states that the gross square footage of cultivation canopy shall be subject to independent measurement and calculation by duly authorized employees or agents of the City and that a corresponding canopy measurement fee amount be specified by resolution of the City Council. J. Section 21-133, subsection (j)(8)(D) of Article XIII of Chapter 21 of the Santa Ana Municipal Code states that the gross square footage of allocated square footage amounts reported by commercial cannabis business owners/operators respectively for either distribution use or for manufacturing use, shall be subject to independent measurement and calculation by duly authorized employees or agents of the City and that a corresponding allocated square footage measurement fee amount be specified by resolution of the City Council. K. The City Council conducted a duly noticed public hearing on August 20, 2019, to consider the proposed fee modifications. Section 2. Pursuant to Santa Ana Municipal Code Section 21-133, subsection 0)(8)(B) the City Council hereby establishes a canopy measurement fee in the amount of $100.57 per hour. Said fee shall be added to the City's Miscellaneous Fee Schedule and be subject to the Consumer Price Index changes annually. The canopy measurement fee amount shall become operational upon the effective date of Section 21-133, subsection G)(8)(B). Section 3. Pursuant to Santa Ana Municipal Code Section 21-133, subsection (j)(8)(D) the City Council hereby establishes an allocated square footage measurement fee in the amount of $100.57 per hour. Said fee shall be added to the City's Miscellaneous Fee Schedule and be subject to the Consumer Price Index changes annually. The allocated Resol don No. 2019-wc Page 2 of 3 75A-76 square footage measurement fee amount shall become operational upon the effective date of Section 21-133, subsection 0)(8)(D). Section 4. The City Council finds that the fees adopted by this Resolution do not exceed the reasonable costs of providing the services for which the fees are charged. ADOPTED this day of Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By . Lisa Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers 2019. CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby certify the attached Resolution No. 2019 - to be the original resolution adopted by the City Council of the City of Santa Ana on .2019. Date: Clerk of the Council City of Santa Ana Resolution No. 2010-xx Page 3 of 3 75A-77 75A-78 EXHIBIT 5 LS 8.20.19 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AMENDMENT OF THE COMMERCIAL CANNABIS OPERATING AGREEMENT TEMPLATE TO IDENTIFY SOCIAL EQUITY GOALS, AND REQUIREMENTS AND SPECIFY REQUIREMENTS FOR COMMUNITY BENEFIT AND SUSTAINABLE BUSINESS PRACTICES PLANS AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE CANNABIS OPERATING AGREEMENTS WHEREAS, the City has adopted an ordinance to permit certain adult -use and medicinal cannabis retail uses in the City's Light and Heavy Industrial zoning districts; WHEREAS, the City Council approved Ordinance NS-2929 on November 21, 2017 to regulate and permit adult -use retail cannabis business activities in Santa Ana subject to issuance of regulatory safety permits and execution of operating agreements; WHEREAS, the City Council adopted Resolution No. 2017-074 on November 21, 2017, which authorized the City Manager to execute adult -use cannabis retailer operating agreements; WHEREAS, the City Council approved Ordinances NS-2941, NS-2942, and 2944 to regulate and permit medicinal and adult -use testing laboratories, cultivation, distribution, and manufacturing facilities in Santa Ana on March 20, 2018, April 3, 2018, and May 1, 2018, respectively subject to issuance of regulatory safety permits and execution of operating agreements; WHEREAS, pursuant to Chapter 40 of the Santa Ana Municipal Code, all commercial cannabis businesses seeking to operate in Santa Ana must enter into an operating agreement with the City. The operating agreement specifies terms and conditions including local hiring and sourcing and Community Benefit and Sustainable Business Practices Plans; WHEREAS, the City Council has an interest in ensuring that Santa Ana residents and businesses continue to benefit from the burgeoning commercial cannabis industry in Santa Ana. The commercial cannabis operating agreement is the tool by which the City ensures that residents and businesses benefit from the commercial cannabis industry in the City; and WHEREAS, the City Council also desires to include social equity goals and requirements in the operating agreements to reflect its commitment to promote equitable ownership and employment opportunities in the cannabis industry in order to Resolution No. 2019-xx 75A-79 Page 1 of 3 decrease disparities in life outcomes for marginalized communities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares asfollows: A. The Commercial Cannabis Operating Agreement template is hereby amended to require the following minimum components of the Community Benefit and Sustainable Business Practices Plan: a. Requirements for local hiring and local sourcing. A minimum portion (50 percent) of all employees, as specified in the Commercial Cannabis Operating Agreement template, employed by a Santa Ana commercial cannabis business shall reside in Santa Ana, and reasonable efforts shall be made to secure local labor and sources for construction. b. Community reinvestment. All commercial cannabis businesses shall commit to a plan for community reinvestment with metrics and measurable results in the form(s) of local pathways to opportunities for professional, entrepreneurial and career development; internships; mentorship programs; community engagement; and/or community contributions. c. Sustainable business practices. All commercial cannabis businesses shall commit to sustainable business practices, green building methods and features, and other designs meant to reduce the impact of commercial cannabis business activities on the environment. d. A Social Equity requirement addressing employment and ownership opportunities, training with the City's Workforce Development program, and employee investment opportunities. B. The City Manager is hereby authorized to continue to enter into and execute the modified Commercial Cannabis Operating Agreement attached hereto and incorporated as Exhibit A, with all businesses seeking to engage in commercial cannabis business activity/activities in Santa Ana. Section 2. In the event the City decides to expand the cannabis licensing program sometime in the future or provides for an associated competitive process for future licenses, the City Council hereby directs staff to incorporate mandatory requirements for expedited processing and renewal assistance for low-income and resident applicants, potential fee deferrals and staff assistance to such applicants. Section 3. This action has been reviewed for compliance with the California Environmental Quality Act (CEQA). Pursuant to CEQA Guidelines Section 15268, the proposed actions are exempt from further CEQA review as executions of operating Resolution No. 2019-xx Page 2 of 3 75A-80 agreements are ministerial actions. A Notice of Exemption will be filed for the proposed actions. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 20 h day of August, 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia Carvalho City Attorney By:< Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-xx to be the original resolution adopted by the City Council of the City of Santa Ana on August 20, 2019. Date: Daisy Gomez Clerk of the Council City of Santa Ana 75A-81 Resolution No. Page 3 of 3 75A-82 TEMPLATE OPERATING AGREEMENT FOR NON -MEDICINAL RETAIL COMMERCIAL CANNABIS BUSINESSES This Operating Agreement ("AGREEMENT") is dated FULL DATE, between the City of Santa Ana, a charter city and municipal corporation ("CITY") and LEGAL NAME OF BUSINESS, dba DBA NAME ("OPERATOR"), collectively referred to as "the Parties". This AGREEMENT shall become effective on the date that OPERATOR is issued a Regulatory Safety Permit by CITY for the operation of a commercial cannabis business conducting ADULT -USE RETAIL, MANUFACTURING, DISTRIBUTION, AND/OR CULTIVATION, OR TESTING services in whole or in part of its operations transacted and carried -on by OPERATOR at the following subject property location, XXXXX, Santa Ana, CA 927XX. 1. Public Benefit and Social Equity. A. Intent. The purpose of this Operating AGREEMENT is to ensure positive community impacts from commercial cannabis business operations through local hiring and local sourcing, community benefit and sustainable business practices, and the collection of required fees and taxes as applicable for the operation of a commercial cannabis business and to provide mitigation options to be used by CITY to compensate for impacts to CITY services, residents, and/or businesses as set forth in Santa Ana Municipal Code Chapter 40. The Parties agree that this AGREEMENT confers substantial private benefits on OPERATOR which should be balanced by commensurate public benefits. As part of the cannabis Regulatory Safety Permit process, OPERATOR agrees to enter into this AGREEMENT. OPERATOR acknowledges that CITY and OPERATOR have had extensive negotiations and proceedings prior to entering into this AGREEMENT. OPERATOR has elected to execute this AGREEMENT as it provides OPERATOR with important economic benefits. Accordingly, the Parties intend to provide consideration to the public to balance the private benefits conferred on OPERATOR by providing mitigation measures to the public and to pay for CITY services. B. Local Hiring and Sourcing. OPERATOR agrees to use its reasonable efforts to hire qualified City of Santa Ana residents living in Santa Ana to work at its commercial cannabis businesses. OPERATOR shall also use reasonable efforts to retain the services of qualified contractors and suppliers who are located in the City of Santa Ana or who employ a significant number of City of Santa Ana residents. OPERATOR shall make a good faith effort to advertise on various social media sites, at local job fairs, and through public agencies and organizations. C. Community Benefit and Sustainable Business Practices Plan. OPERATOR agrees to submit a Community Benefit and Sustainable Business Practices Plan ("Plan") to CITY that is hereby attached and incorporated into this AGREEMENT as ("EXHIBIT A"). Said Plan shall detail OPERATOR's commitment to incorporate the following practices as part of the commercial cannabis business: a. Requirements for local hiring and local sourcing. A minimum portion (50 percent) of all employees, as specified in the Commercial Cannabis Operating Agreement template, employed by a Santa Ana commercial cannabis business shall reside in 1 75A-83 TEMPLATE Santa Ana, and reasonable efforts shall be made to secure local labor and sources for construction. b. Community reinvestment. All commercial cannabis businesses shall commit to a plan for community reinvestment with metrics and measurable results in the form(s) of local pathways to opportunities for professional, entrepreneurial and career development; internships; mentorship programs; community engagement; and/or community contributions. c. Sustainable business practices. All commercial cannabis businesses shall commit to sustainable business practices, green building methods and features, and other designs meant to reduce the impact of commercial cannabis business activities on the environment. OPERATOR shall adequately document that it has met the Plan's obligations and commitments as a condition of annual Regulatory Safety Permit (RSP) renewal and renewal/extension of this AGREEMENT upon expiration of the initial term and any extensions. D. Social Equity Goals and Requirements. Operator acknowledges and agrees with the City's commitment to providing Social Equity opportunities to its residents and low- income individuals who desire to participate in the economic opportunities presented by the growth and sustainability of the cannabis industry in the City. To further these goals, Operator shall: a. Notify the Santa Ana Work Center of all employment opportunities associated with its cannabis business operations in the City and meet the employment requirements in Section 1.C. above. b. Offer all employees an opportunity to invest in its cannabis business in the City. c. Define specific steps for local hire employees to acquire management and executive positions, and offer these employees compensation options that result in equity ownership of respective operations, or profit sharing opportunities. 2. Records Inspection, Examination and Audit. OPERATOR acknowledges and agrees that CITY is empowered under this Agreement to inspect, examine and audit OPERATOR's books and records (including tax filings and returns), to ascertain the amount of operating fees due and owing. CITY or its authorized agents shall have the power and authority to conduct a full inspection, examination and audit of such books and records (including tax filings and returns) at any reasonable time, including but not limited to, during normal business hours. In the event any such books, records, tax filings and returns cannot be made fully available within the City of Santa Ana, OPERATOR acknowledges and agrees that it shall reimburse CITY for the cost of all transportation, lodging, meals, portal-to-portal travel time, and other incidental costs reasonably incurred by CITY or its authorized agents in obtaining said full inspection, examination and audit. In the event that said records inspection, examination and audit determines that a net operating agreement fee payment deficiency of greater than Five 2 75A-84 TEMPLATE Percent (5%) exists; OPERATOR acknowledges and agrees that it shall reimburse CITY for the full cost of said records inspection, examination and audit reasonably incurred by CITY or its authorized agents. Term. This AGREEMENT shall start on the date indicated above and shall terminate on December 31, 2020 regardless of starting date unless terminated earlier in accordance with Section 9 or 10 of this AGREEMENT. The AGREEMENT will have one (1) two-year extension period until December 31, 2022 exercisable by a writing executed by the City Manager and City Attorney's Office with the approval of OPERATOR. 4. Business License Required. A valid City of Santa Ana Business License is required for all persons engaged in transacting and carrying on any commercial cannabis business activity in the City of Santa Ana. It is unlawful for any person or legal entity to commence, transact or carry -on cannabis business activity in the City of Santa Ana without first having procured a City of Santa Ana cannabis business license. 5. Operating Commercial Cannabis Business. OPERATOR shall not operate a commercial cannabis business authorized under the Santa Ana Municipal Code unless: A. It is the holder of a valid Regulatory Safety Permit issued by CITY in accordance with the procedures and requirements of Article 1 of Chapter 40, of the Santa Ana Municipal Code; and B. At such time as the State of California requires cannabis business facilities and businesses to hold a valid license or permit issued by the State of California, it also holds such license or permit; unless, however, such permit or license is subsequently not required by the State of California for the type of cannabis facility or business operation that is the subject of this AGREEMENT. C. OPERATOR remains in compliance with any and all other laws and regulations pertaining to commercial cannabis businesses. D. OPERATOR shall remain in compliance with the operating requirements applicable to commercial cannabis businesses contained in the City's Municipal Code. 6. OPERATOR Indemnification of CITY. A. OPERATOR will indemnify CITY from any claims, damages, injuries, or liabilities of any kind whatsoever sustained or incurred by CITY resulting from entering into this AGREEMENT, and OPERATOR's performance and/or breach of this AGREEMENT. B. OPERATOR agrees to defend, at its sole expense, any action against CITY, its agents, officers, and employees related to this AGREEMENT. OPERATOR agrees to indemnify and reimburse CITY for any court costs and attorney fees that CITY may be required to pay as a result of any legal challenge related to this 75A-85 TEMPLATE AGREEMENT and/or CITY's approval of a Regulatory Safety Permit. CITY may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the OPERATOR of its obligation hereunder. 7. OPERATOR Compliance with Laws. OPERATOR agrees to comply with the City of Santa Ana Charter and Municipal Code, including but not limited to Chapters 18, 21 and 40, and the laws and regulations of the State of California. 8. Default and Termination for Cause. This AGREEMENT may be terminated by CITY for cause with thirty (30) days' written notice to OPERATOR. Cause as used in this section, is defined as: A. Failure to comply with the terms of the City of Santa Ana Cannabis Regulatory Safety Permit issued to OPERATOR by CITY; B. Failure of OPERATOR to maintain a valid active City of Santa Ana Business License as the commercial cannabis business approved by the Regulatory Safety Permit and as operating; C. Failure of OPERATOR to comply with the requirements of the Community Benefits and Sustainable Business Practices Plan; D. Unauthorized transfer by OPERATOR of the City of Santa Ana cannabis business Regulatory Safety Permit issued by CITY; E. Failure by OPERATOR to accurately report gross receipts information or other data necessary for CITY to calculate/confirm operating agreement fees; F. Failure by OPERATOR to pay operating agreement fees and related reimbursement costs within thirty (30) days of the date those fees are due; G. Failure by OPERATOR to cooperate with CITY or CITY's authorized agents in any inspection, examination and audit of OPERATOR's commercial cannabis business books and records (including tax filings and returns). H. OPERATOR shall cure the default resulting from the cause for termination within thirty (30) days of the date of the notice of termination. If OPERATOR fails to cure the default within thirty (30) days of the date of the notice of termination for cause, this AGREEMENT will be terminated. I. This AGREEMENT will automatically terminate if: i. OPERATOR's Regulatory Safety Permit is revoked by CITY or is not renewed by CITY, or ii. OPERATOR transfers its Regulatory Safety Permit pursuant to Santa Ana Municipal Code section 40-12. 4 75A-86 TEMPLATE 9. Termination Without Cause. Upon mutual written agreement of the Parties, this AGREEMENT may be terminated with thirty (30) days' notice. 10. Termination - Effect on Prior Obligations. Upon any termination of this AGREEMENT, OPERATOR's obligation to report and remit operating agreement fees due and payable under the terms of this AGREEMENT for each month or fraction of a month of a cannabis business operation engaged in within the City of Santa Ana prior to termination of this AGREEMENT shall continue to be in effect. Past due penalties and late interest charges shall continue to accrue and be applicable until all operating fees due under this AGREEMENT are paid in full. OPERATOR's liability for any remaining unpaid past due penalties and/or late interest charges shall continue until fully satisfied. 11. Remedies. A. It is acknowledged by the parties that CITY would not have entered into this AGREEMENT if it were to be liable in damages under this AGREEMENT, or with respect to this AGREEMENT or the application thereof, except as hereinafter expressly provided. B. Each of the parties hereto may pursue any remedy at law or equitable relief available for the breach of any provision of this AGREEMENT, except that CITY shall not be liable in monetary damages, unless expressly provided for in this AGREEMENT. C. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in Orange County California before three arbitrators. The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures pursuant to JAMS' Streamlined Arbitration Rules and Procedures. Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. 12. Reimbursement Clause. In consideration of the time and costs incurred by CITY in the drafting and implementation of this AGREEMENT, OPERATOR agrees to pay $2,500 to CITY within thirty (30) days of execution of this AGREEMENT. 13. Attorney Fees and Costs. In any action or proceeding between CITY and OPERATOR brought to interpret or enforce this AGREEMENT, or which in any way arises out of the existence of this AGREEMENT or is based upon any term or provision contained herein, the "prevailing party" in such action or proceeding shall be entitled to recover from the non -prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this 75A-87 TEMPLATE AGREEMENT, the prevailing party's reasonable attorneys' fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 17 include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding. 14. Notice. Any notice, tender, demand, delivery, or other communication pursuant to this AGREEMENT shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this section, to the following persons: To CITY: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 Copies to: Executive Director— Planning and Building Agency City of Santa Ana 20 Civic Center Plaza (M-20) P.O. Box 1988 Santa Ana, California 92702-1988 Fax 714-973-1461 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702-1988 Fax 714-647-6515 To OPERATOR: NAME OF APPLICANT LEGAL BUSINESS NAME, dba DBA NAME ADDRESS LINE ONE ADDRESS LINE TWO, SANTA ANA, CA 927XX Tel (XXX) XXX-XXXX Email XXX@XXX.XXX A party may change its address by giving signed 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 or email document attachment, 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 6 75A-88 TEMPLATE frames, weekends, federal, state, County or City holidays, or City Hall closure dates shall be excluded. 15. Exclusivity and Amendment. This AGREEMENT represents the complete and exclusive statement between CITY and OPERATOR, and supersedes any and all other agreements, oral or written, between the parties. This AGREEMENT may not be modified except by written instrument signed by CITY and by an authorized representative of OPERATOR. 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. 16. Assignment. OPERATOR may not assign or transfer any interest herein without the prior written consent of CITY and any such assignment or transfer without CITY's prior written consent shall be considered null and void. 17. Discrimination. OPERATOR shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. OPERATOR affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local labor 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. Severability. If any part of this AGREEMENT is found to conflict with applicable local or state laws or regulations, such part shall be inoperative, null and void insofar as it conflict with said laws or regulations, or may be modified or suspended as may be necessary to comply with any local or state law or regulation but the remainder of the AGREEMENT shall continue in full force and effect. 20. Counterparts. This AGREEMENT may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this AGREEMENT may be by actual, facsimile or electronic signature. 75A-89 TEMPLATE 21. Disclaimer. Despite California's commercial cannabis laws and the terms and conditions of this AGREEMENT or any Regulatory Safety Permit issued pertaining to OPERATOR or the hereinabove specified property location, California commercial cannabis cultivators, transporters, distributors, cannabis testing facility/laboratory businesses or possessors may still be subject to arrest by state or federal officers and prosecuted under state or federal law. The Federal Controlled Substances Act, 21 USC § 801 et. seq., prohibits the manufacture, manufacturing, and possession of cannabis without any exemptions for medical or non -medicinal use. 22. Authority to Bind. Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this AGREEMENT, and shall indemnify CITY fully, including reasonable costs and attorney's fees, for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 8 75A-90 TEMPLATE IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year first above written. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney CITY OF SANTA ANA KRISTINE RIDGE City Manager OPERATOR LEGAL NAME: SIGNATORY By: ` .� NAME: Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL: Minh Thai, Executive Director Planning & Building Agency TITLE: TAXPAYER ID: SIGNATURE: 75A-91 TEMPLATE EXHIBIT A COMMUNITY BENEFIT AND SUSTAINABLE BUSINESS PRACTICES PLAN 10 75A-92 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 TITLE: PUBLIC HEARING — ADOPT A RESOLUTION FOR RECOVERY OF UNCOLLECTED COSTS FOR ABATEMENT OF DANGEROUS AND ABANDONED BUILDINGS (STRATEGIC PLAN NO. 5,4) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 18' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution affirming the Fiscal Year 2018-2019 Dangerous and Abandoned Building Program Report and authorize the transmittal of uncollected Dangerous and Abandoned Building charge to the office of Auditor -Controller, County of Orange. DISCUSSION The City's Dangerous and Abandoned Building (DABS) Program has proven to be an effective tool to abate dangerous and abandoned structures that create an attractive nuisance for children and provide harborage for illegal activity. The abatements are accomplished by board -ups and/or demolition of dangerous and abandoned structures. Depending on the urgency of immediate threat to public safety and life and property, property owners are given between 2 to 30 days to abate the conditions or the City, through its contractors, will perform the work. The property owners are then invoiced forthe abatement costs every 30 days until the Planning and Building Agency is reimbursed for the expenditure. Each year, the City finds it necessary to seek legal recourse against reluctant property owner(s) in order to recover the costs expended by the City for abatement of dangerous and abandoned properties. This year the outstanding charge for work performed on one parcel is $3,248.91(Exhibit 1). The property owner names are provided in Exhibit 2. The most effective method of collection is to submit these charges to the office of the County Auditor/Controller in order that they may be placed as a lien on the property tax rolls. Charges must be submitted to the County of Orange. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal No. 5 Community Health Livability, Engagement and Sustainability, Objective No. 4 (support neighborhood vitality and livability). 75B-1 Recovery of Uncollected Costs for Abatement of Dangerous and Abandoned Buildings August 20, 2019 Page 2 FISCAL IMPACT The recovered charge will result in an estimated $3,248.91 deposited in the Special Repair and Demolition Fund (Account No. 12116002-53507). Minh Thai Executive Director Planning and Building Agency AR: SV Exhibits: 1. Parcel Assessment Amounts 2. Property Owner Listing 3. DABS Resolution APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs, CPA Executive Director Finance and Management Services Agency 76B-2 EXHIBIT 7 AC621_05A — Form 132 Special Assessment Add Transactions Jurisdiction 061 Santa Ana Type of Tax C=2 Date _August 20, 2019 PARCEL NUMBER ASSESSMENT AMOUNT 6-15 16-23 399-121-02 $ 3,248.91 TOTAL $ 3,248.91 75B-3 75B-4 EXHIBIT 2 PROPERTY OWNER LISTING FISCAL YEAR 2018-2018 ADDRESS PARCEL NO. OWNERIADDRESS ASSESSMENT Pacific Coast Holdings Investment LLC & $ 3,248.91 1905 N. College Ave. AP# 399-121-02 Integrated Healthcare 1301 N. Tustin Ave. Santa Ana. CA 92705 75B-5 75B-6 EXHIBIT 3 LS 8.20.19 RESOLUTION NO 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONFIRMING THE COSTS OF SECURING AND/OR DEMOLITION OF VARIOUS STRUCTURES DECLARED TO BE PUBLIC NUISANCES; MAKING, CONFIRMING AND LEVYING ASSESSMENTS FOR SUCH COSTS; AND ORDERING SUCH COSTS TO BE RECORDED WITH THE ORANGE COUNTY RECORDER'S OFFICE AND FORWARDED TO THE COUNTY AUDITOR, COUNTY ASSESSOR, AND COUNTY TAX COLLECTOR BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City's Dangerous and Abandoned Buildings (DABS) Program has proven to be an effective tool to abate dangerous and abandoned structures that create an attractive nuisance for children and provide harborage for illegal activity. The abatements are accomplished by board -ups and/or demolition. B. Pursuant to Section 17-40 of the Santa Ana Municipal Code, the Executive Director of the Planning and Building Agency has submitted an itemized report, a copy of which is on file with the Clerk of the Council, showing. the costs of securing property and/or demolition of various structures carried out by the City of Santa Ana upon each individual lot or parcel of land where such work was done. C. The Executive Director of the Planning and Building Agency has given notice of the public hearing as required by law, in which the 20t' day of August, 2019, at the hour of 5:45 p.m. was fixed as the time, and 22 Civic Center Plaza, Santa Ana as the place, where any and all persons interested in said report might be heard. D. The City Council of the City of Santa Ana, at said time and place has received, heard, and considered said report and all objections by property owners liable to be assessed for the abatement, and directed any such modification of said report as it has deemed necessary. Section 2. Each and every objection to said work and the costs thereof is hereby overruled; said report, a copy of which is on file with the Clerk of the Council, is hereby confirmed; the cost of abatement work done in front of or upon each lot or parcel of real property, as shown on Exhibits 1 and 2, which are incorporated by this reference 75B-7 LS 8.20.19 as though fully set forth herein, and the amounts therein on such assessments shall become due thirty (30) days after the adoption of this Resolution. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Section 4. The Executive Director of Planning and Building Agency is hereby directed to file a certified copy of said report and this Resolution with the County Recorder's Office, the County Auditor, County Assessor, and County Tax Collector upon execution. Section 5. The County Auditor is requested to enter the assessments on the county tax rolls. Section 6. The County Tax Collector is requested to collect the assessment at the time and in the manner of ordinary municipal taxes. Section 7. The City of Santa assessments, special taxes, parcel taxes, on the fiscal year 2018-2019 property tax with State law and are legally valid. ADOPTED this APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: r 4 1- Lisa Storck Assistant City Attorney Ana hereby certifies that the special charges and /or fees which are to be placed roll have been duly adopted in accordance day of August, 2019 Miguel A. Pulido Mayor 75B-8 LS 8.20.19 AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana on August , 2019. Date: Clerk of the Council, City of Santa Ana 75B-9 LS 8.20.19 AC621-05A — Form 62 Jurisdiction 061 Santa Ana Special Assessment Add Transactions Type of Tax C=2 Date July 22, 2019 PARCEL NUMBER ASSESSMENT AMOUNT 6-15 16-23 399-121-02 $ 3,248.91 TOTAL $ 3,248.91 EXHIBIT 1 75B-10 LS 8.20.19 PROPERTY OWNER LISTING FISCAL YEAR 2018-2019 ADDRESS PARCEL NO. OWNER/ADDRESS ASSESSMENT Pacific Coast Holdings Investment LLC & $ 3,248.91 1905 N. College Ave. AP# 399-121-02 Integrated Healthcare 1301 N. Tustin Ave. Santa Ana, CA 92705 EXHIBIT 2 75B-11 75B-12 CITY OF SANTA ANA BOARD AND COMMISSION VACANCIES AND EXPIRED TERMS City Council is seeking volunteers interested in serving on the following Boards and Commissions that have vacancies and expired terms: Art and Culture Commission (Ward 4, Mayoral representative Positions) Community Redevelopment and Housing Commission (Ward 4 and Mayoral, Representative Positions) Environmental and Transportation Advisory Committee (Ward 4, Mayoral, Hispanic Chamber and Student Representative Positions) Historic Resources Commission (Ward 2, Ward 4 and Mayoral Representative Positions) Personnel Board (Ward 4, Ward 6 and Mayoral Representative positions) Planning Commission (Ward 1, Ward 4 and Mayoral Representative positions) Board of Recreation and Parks (Ward 4, Mayoral SAUSD and Student Representative Positions) Santa Ana 2018 Measure X Citizen Oversight Committee (Ward 4 Representative Position) Youth Commission (Ward 1 Regular, Ward 1 Associate, Ward 2 Alternate, Ward 2 Associate, Ward 3 Regular, Ward 3 Associate, Ward 4 Regular, Ward 4 Alternate, Ward 4 Associate Positions) For an application or more information, call (714) 647-6520, or visit the City's website at santa- ana.oro/cc/appointed-boards-and-commission. Applicants must be residents and registered to vote (with the exception of Youth Commission members) in the City of Santa Ana. Open recruitment until vacancies have been filled. 85A-1 CITY OF SANTA ANA Roster of Current Vacancies and Expired Terms SERVING WARD BOARD APPOINTED LAST NAME BY 1 FIRST NAME APPT REAPPT EXPIRE RES POSITION WARD Youth Commission Sarmiento VACANT 12/8/2020 Associate Youth Commission Sarmiento VACANT 12/8/2020 Regular Planning Commission Sarmiento VACANT 12/8/2020 NA 2 Youth Commission Martinez Guzman Gregory 09/19/2017 12/11/2018 2 Alternate Historic Resources Martinez Hardy GinelleA. 01/17/2017 12/11/2018 2 NA Commission Youth Commission Martinez Medel Castillo Brenda Lisbet 11/21/2017 12/11/2018 2 Associate Community Martinez Ramos Isuri S. 08/01/2017 12/11/2018 2 Chair Redevelopment and — Housing Commission — Friday, August 16, 2019 Page 1 of 6 DISCLOSURE: The report information is subject to change. If you need the most current information on file, please contact the Clerk of the Council Office at 714 647-6520. SERVING WARD BOARD APPOINTED LAST NAME FIRST NAME APPT REAPPT EXPIRE RES POSITION BY WARD Youth Commission Penaloza VACANT 12/11/2018 Regular 3 Youth Commission Solorio VACANT 12/8/2020 Associate --------------------------------------------------------------- Youth Commission Solorio VACANT 12/8/2020 Regular --------------------------------------------------------------- Personnel Board Benavides Adame Enrique 02/05/2007 12/16/2014 12/11/2018 4 NA Youth Commission Benavides Benavides Anais 10/04/2016 12/11/2018 4 Alternate --------------------------------------------------------------- Planning Commission Reyna Benavides P. David 12/18/2018 3/1/2019 4 NA --------------------------------------------------------------- Environmental & Benavides Benninger Carl 05/06/2014 12/16/2014 12/11/2018 4 NA Transportation Advisory Committee Historic Resources Benavides Christy Alberta D. 12/05/2011 12/16/2014 12/11/2018 6 Chair Commission --------------------------------------------------------------- Youth Commission Benavides Cruz Alberto 11/15/2016 12/11/2018 4 Regular (Vice Chair) --------------------------------------------------------------- Friday, August 16, 2019 Page 2 of 6 DISCLOSURE: The report information is subject to change. If you need the most current information on file, please contact the Clerk of the Council Office at 714 647-6520. SERVING WARD BOARD APPOINTED LAST NAME FIRST NAME APPT REAPPT EXPIRE RES POSITION BY WARD Recreation and Parks, Benavides Diaz Yenni 06/19/2018 12/11/2018 1 NA Board of Community Benavides Urzua Ana 06/19/2018 12/11/2018 2 NA Redevelopment and — Housing Commission — Youth Commission Benavides VACANT 12/11/2018 Associate Arts and Culture Benavides VACANT 12/8/2020 NA Commission Santa Ana2018 VACANT VACANT 12/13/2022 Measure X Citizen — Oversight Committee — 5 0 Youth Commission Villegas VACANT 12/8/2020 Associate Youth Commission Tinajero Meunier Shirley Kimberly 08/01/2017 12/11/2018 4 Alternate --------------------------------------------------------------- Youth Commission Tinajero VACANT 12/11/2018 Regular --------------------------------------------------------------- Youth Commission Tinajero VACANT 12/11/2018 Associate Friday, August 16, 2019 Page 3 of 6 DISCLOSURE: The report information is subject to change. If you need the most current information on file, please contact the Clerk of the Council Office at 714 647-6520. SERVING WARD BOARD APPOINTED LAST NAME FIRST NAME APPT REAPPT EXPIRE RES POSITION BY WARD Personnel Board Tinajero Vallejo Maricela 10/20/2015 01/17/2017 12/11/2018 4 NA City -Wide Youth Commission Pulido Banda Alecc 11/07/2017 12/11/2018 5 Alternate --------------------------------------------------------------- Community Pulido Garcia Monica 0. 06/06/2011 01/17/2017 12/11/2018 2 NA Redevelopment and — — — — — — — — — — HousingCommission --------------------------------------------- Recreation and Parks, Pulido Macias Irma 12/05/2017 12/11/2018 2 NA Board of --------------------------------------------------------------- Personnel Board Pulido Matzkin Andres 09/05/2017 12/11/2018 3 NA --------------------------------------------------------------- Planning Commission Pulido McLoughlin Mark S. 01/19/2016 01/17/2017 12/11/2018 3 Chair Environmental & Pulido Oregel Daniel 05/15/2018 12/11/2018 3 NA Transportation Advisory Committee Youth Commission Pulido Rodriguez Roy 09/06/2016 01/17/2017 12/11/2018 2 Regular Historic Resources Pulido Schaefer Phillip 07/18/2011 01/17/2017 12/11/2018 3 Vice Chair Commission Arts and Culture Pulido VACANT 12/11/2018 NA Commission Friday, August 16, 2019 Page 4 of 6 DISCLOSURE: The report information is subject to change. If you need the most current information on file, please contact the Clerk of the Council Office at 714 647-6520. SERVING WARD BOARD APPOINTED LAST NAME FIRST NAME APPT REAPPT EXPIRE RES POSITION BY WARD Youth Commission Pulido VACANT 12/11/2018 Associate Hispanic Chamber Environmental & Hispanic VACANT 12/11/2018 Hisp Chamber Transportation Advisory Chamber Rep. Committee 0Ie1 Workforce Development Private VACANT 5/31/2022 Private Sector Board Sector Workforce Development Public VACANT 5/31/2022 Education/SAUS Board Sector/SAU D Workforce Development Private VACANT 5/31/2022 Private Sector Board Sector --------------------------------------------------------------- Workforce Development Private VACANT 5/31/2020 NA Private Sector Board Sector (Chair) --------------------------------------------------------------- Workforce Development Private VACANT 5/31/2023 NA Private Sector Board Sector --------------------------------------------------------------- Workforce Development Community VACANT 5/31/2022 Community Board Based Based --------------------------------------------------------------- Workforce Development Private VACANT 5/31/2022 Private Sector Board --------------------------------------------------------------- Sector Friday, August 16, 2019 Page 5 of 6 DISCLOSURE: The report information is subject to change. If you need the most current information on file, please contact the Clerk of the Council Office at 714 647-6520. SERVING WARD BOARD APPOINTED LAST NAME FIRST NAME APPT REAPPT EXPIRE RES POSITION BY WARD Workforce Development Private VACANT 5/31/2022 Private Sector Board Sector SAUSD Recreation and Parks, SAUSD VACANT School District Board of (SAUSD) --------------------------------------------------------------- Student Rep Environmental & Student Rep VACANT Student Rep / Transportation Advisory Ex Officio/Non- Com m ittee Recreation and Parks, Student Rep VACANT Student Rep / Board of Ex Officio/Non- Friday, August 16, 2019 Page 6 of 6 DISCLOSURE: The report information is subject to change. If you need the most current information on file, please contact the Clerk of the Council Office at 714 647-6520.