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HomeMy WebLinkAbout FULL PACKET_2015-11-03MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA OCTOBER 20, 2015 CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:27 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor VINCENT F. SARMIENTO, Mayor Pro Tem P. DAVID BENAVIDES (5:45 p.m.) MICHELE MARTINEZ ROMAN A. REYNA (5:31 p.m.) SAL TINAJERO COUNCILMEMBERS Absent: ANGELICA AMEZCUA STAFF Present: DAVID CAVAZOS, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council PUBLIC COMMENTS — None COUNCIL RECESSED to Room 147 for Closed Session discussion at 5:27 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: 1. CONFERENCE WITH LEGAL COUNSEL --EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: Brian Booker v. City of Santa Ana, Case No. SACV15-00431-DOC (DFMx) CITY COUNCIL MINUTES 1 OCTOBER 20, 2015 10A-1 2. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiators: Personnel Services Executive Director, Ed Raya Employee Organizations: Service Employees' International Union (SEIU) Full -Time Employees Service Employees' International Union (SEIU) Part -Time Employees Agency Negotiator: City Manager, David Cavazos Employee Organizations: Executive Management (EM) 3. 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 Case 4. PUBLIC EMPLOYEE - PERFORMANCE EVALUATION pursuant to Section 54957(b)(1) of the Government Code: Title: Clerk of the Council CLOSED SESSION REPORT - See Item 19A for any reportable actions. ADJOURNED THE CLOSED SESSION MEETING AT 6:02 P.M. AND CONVENED TO THE REGULAR OPEN MEETING. CITY COUNCIL MINUTES 2 OCTOBER 20, 2015 10A-2 REGULAR OPEN MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA SANTA ANA, CA 6:03 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor VINCENT F. SARMIENTO, Mayor Pro Tem ANGELICA AMEZCUA (6:44 p.m.) P. DAVID BENAVIDES MICHELE MARTINEZ ROMAN A. REYNA SAL TINAJERO PLEDGE OF ALLEGIANCE INVOCATION PRESENTATION COUNCILMEMBERS Absent: NONE STAFF Present: DAVID CAVAZOS, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council LESLIE TELLEZ, MacARTHUR FUNDAMENTAL INTERMEDIATE SCHOOL JACK ABEELEN, POLICE CHAPLAIN PROCLAMATION presented by MAYOR PRO TEM SARMIENTO to Bolivian Consul General Marco Antonio Valverde Carrasco in recognition of Latin American Day. CLOSED SESSION REPORT — No reportable action. PUBLIC COMMENTS • Alfredo Rubalcava Chief External Officer for Magnolia Science Academy, spoke on Agenda Item 19F, expressed appreciation for moving forward with Promise Zone designation. • Laura Schlottman, Principal at Magnolia Science Academy, echoed comments by Mr. Rubalcava, would like to partner with City on Promise Zone efforts; also, indicated that they would be opening up a new school in Santa Ana in the coming school year. CITY COUNCIL MINUTES 3 OCTOBER 20, 2015 10A-3 CONSENT CALENDAR ITEMS MOTION: Approve staff recommendations on Consent Calendar Items 10A through 31A, with the following modifications: • Councilmember Martinez pulled Agenda Items 19E, 25G and 25H for separate discussion; and • Councilmember Reyna pulled Agenda Items 19F and 20B for separate discussion. MOTION: Sarmiento SECOND: Tinajero VOTE: AYES: Benavides, Pulido, Martinez, Reyna, Sarmiento, Tinajero (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Amezcua(1) Items removed for separate action or modified are highlighted. Separateactions show the actual vote. Items without votes are adopted as part of the consent motion: ADMINISTRATIVE MATTERS MINUTES 10A. MINUTES FROM THE REGULAR MEETING OF OCTOBER 6, 2015 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Approve Minutes. BOARDS / COMMISSIONS / COMMITTEES 13A. COUNCIL COMMITTEES — AGENDA AND MINUTES {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Receive and file. NAME MEETING DATE Special Meeting of Code of Conduct & Ethics 10/01/2015 Special Meeting of Development & Transportation 10/14/2015 CITY COUNCIL MINUTES 4 10A-4 OCTOBER 20, 2015 13B. NOMINATED BY COUNCILMEMBER TINAJERO AS THE WARD 6 REPRESENTATIVE TO THE PERSONNEL BOARD FOR PARTIAL TERM EXPIRING DECEMBER 11, 2018 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Appoint Maricela Vallejo, Ward 6 resident, to the Personnel Board for a partial term expiring December 11, 2018 (replacing S. Tuchler). MISCELLANEOUS ADMINISTRATION 19A, CONFIRMATION OF CLOSED SESSION ACTION(S) — None 19B. EXCUSED ABSENCES — None 19C. STRATEGIC PLAN MONTHLY REPORT FOR SEPTEMBER 2015 {STRATEGIC PLAN NO. 5, 11 - City Manager's Office MOTION: Receive and file. 19D. INFORMATION TECHNOLOGY STRATEGIC PLAN UPDATE {STRATEGIC PLAN NO. 6,1I} - City Manager's Office MOTION: Receive and file. 19E. POLICE OFFICER RECRUITING AND HIRING UPDATE {STRATEGIC City Council thanked staff and Police Chief Rojas for recruitment efforts and moving forward with community policing body cameras, transparency, and accountability. City Manager Cavazos indicated that the City has added 37 new positions plus 10 with COPS grants in the past year. MOTION: Receive and file. MOTION: Martinez SECOND: Reyna VOTE: AYES: Benavides, Pulido, Martinez, Reyna, Sarmiento, Tinajero (6) CITY COUNCIL MINUTES 5 OCTOBER 20, 2015 10A-5 NOES: None (0) ABSTAIN: None (0) ABSENT: Amezcua(1) *Councilmember Benavides, reported a conflict of interest due to proximity of residence to area and abstained on matter. 19F. STRATEGY TO SECURE FEDERAL PROMISE ZONE DESIGNATION' FOR SANTA ANA {STRATEGIC PLAN NO. 5, 4D} - Community Development Agency Councilmember Reyna, asked to be engaged in program since it was in his Ward. Designation advantages would include: 1) the awarding of preferences for certain competitive federal grant programs; and 2) proposed hiring tax credits and enhanced depreciation (tax) benefits to investors (subject to Congressional approval). Broad objectives associated with Santa Ana's strategy include the creation of jobs, growing the local economy, improving education opportunities, and reducing crime. MOTION: Receive and file. MOTION: Reyna SECOND: Martinez VOTE: AYES: Pulido, Martinez, Reyna, Sarmiento, Tinajero (5) NOES: None (0) ABSTAIN: Benavides(1) ABSENT: Amezcua (1) BUDGETARY MATTERS APPROPRIATION ADJUSTMENTS 20A. APPROPRIATION ADJUSTMENT AND PURCHASE AND SALE AGREEMENT FOR THE SALE OF CITY -OWNED REAL PROPERTY AT 1232 AND 1244 SOUTH BRISTOL STREET, APN 109-421-21 AND 22 {STRATEGIC PLAN NO. 6, 1 G; 3, 2C) - Community Development Agency CITY COUNCIL MINUTES 6 OCTOBER 20, 2015 fflyxll MOTION: 1. AGMT NO. 2015-225 - Authorize the City Manager and Clerk of the Council to execute a purchase and sale agreement with Spyglass Investment Group, in an amount of $2,000,000, subject to non - substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment. (Requires five affirmative votes) APPROPRIATION ADJUSTMENT NO. 2016-048 - Recognizing $2,000,000 in Community Development Block Grant program income for fiscal year 2015-16 from sale of City -owned property located at 1232 and 1244 South Bristol Street and appropriate same to expenditure account Councilmember Reyna asked that Santa Ana Unified School District be engaged in the education and outreach efforts. MOTION: 1. Approve an appropriation adjustment. (Requires five affirmative votes) APPROPRIATION ADJUSTMENT NO. 2016-040 - Recognize Office of Traffic Safety Public Education on Bicycle Safety grant funds in an amount of $100,000 in the OTS -PWA Traffic Safety Grants revenue account, and appropriate the same to the OTS -Bicycle Safety PWA expenditure account. 2. AGMT NO. 2015-226 - Authorize the City Manager and Clerk of the Council to execute an agreement with the State of California Office of Traffic Safety, subject to non -substantive changes approved by the City Manager and City Attorney, in an amount not to exceed $100,000, for a one-year period from October 1, 2015, through September 30, 2016. MOTION: Reyna SECOND: Benavides VOTE: AYES: Benavides, Pulido, Martinez, Reyna, Sarmiento, Tinajero (6) CITY COUNCIL MINUTES 7 OCTOBER 20, 2015 10A-7 AGREEMENTS 25A. 25B. NOES: None (0) ABSTAIN: None (0) ABSENT: Amezcua(1) SPECIAL LEGAL COUNSEL SERVICES (STRATEGIC PLAN NO. 7, 3B) - City Attorney's Office MOTION: 1. AGMT NO. 2015-227 - Authorize the City Manager and the Clerk of the Council to execute an agreement with Alvarez-Glasman & Colvin, subject to non -substantive changes approved by the City Manager and City Attorney, for legal services at the specified rates in contract; 2. AGMT NO. 2015-228 - Authorize the City Manager and the Clerk of the Council to execute an agreement with Haight Brown & Bonesteel, LLP, subject to non -substantive changes approved by the City Manager and City Attorney, for legal services at the specified rates in contract, for a three year period beginning October 20, 2015; 3. AGMT NO. 2015-229 - Authorize the City Manager and the Clerk of Council to execute an agreement with Atkinson, Andelson, Loya, Ruud & Romo, APLC, subject to non -substantive changes approved by the City Manager and City Attorney, for legal services at the specified rates in contract, for a three year period beginning October 20, 2015; and 4. AGMT NO. 2015-230 - Authorize the City Manager and the Clerk of Council to execute an agreement with Ferguson, Praet & Sherman, APLC, subject to non -substantive changes approved by the City Manager and the City Attorney, for legal services at the specified rates in contract, for a three year period beginning October 20, 2015. AGMT NO. 2015-231 - SALES TAX REBATE WITH VOLVO OF ORANGE COUNTY {STRATEGIC PLAN NO. 3, 3C} - Community Development Agency CITY COUNCIL MINUTES 8 OCTOBER 20, 2015 10A-8 MOTION: Authorize the City Manager and Clerk of the Council to execute a sales tax rebate agreement with SSF, INC., doing business as Volvo of Orange County for a 50 percent rebate of the increase in new sales tax generated by the dealer above a base year up to total maximum amount of $1,000,000 over a 10 -year period, subject to non -substantive changes approved by the City Manager and City Attorney.. 25C. ACCEPTING 2015 RECOVERY ACT EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT FUNDS {STRATEGIC PLAN NO. 1, 3B) - Police Department MOTION: 1. Accept the 2015 Edward Byrne Memorial Justice Assistance Grant funding in the amount of $88,392 into the Byrne Justice Assistance revenue account and appropriate same to expenditure account in the respective fiscal years. 2. AGMT NO. 2015-232- Authorize the City Manager, Chief of Police, and the Clerk of the Council to execute a three-year agreement with the County of Orange, Sheriff's Department (DJ -BX -0226) to transfer the 2015 Recovery Act Edward Byrne Memorial Justice Assistance Grant Program funds in the amount of $88,392. 25D. AGMT NO. 2015-233 — APPROVE AN EXTENSION TO THE COOPERATIVE AGREEMENT FOR FUNDING ENVIRONMENTAL AND TOXICS PROGRAMS FOR THE NEWPORT BAY WATERSHED {STRATEGIC PLAN NO. 5, 21 - Public Works Agency MOTION: Authorize the City Manager and the Clerk of the Council to approve Amendment No. 1 to Agreement No. D11-066 to extend multijurisdictional Cooperative Agreement D11-066 for three years, through June 30, 2018, to fund the Environmental and Toxics Total Maximum Daily Load programs in the Newport Bay Watershed, and commit to the same annual fair share percentage of 10.77 percent with an annual amount not -to -exceed of $150,000. 25E. AGMT NO. 2015-234 - PRESSURE WASHING SERVICES IN THE CIVIC CENTER AREA {STRATEGIC PLAN NO. 6, 1B) - Parks, Recreation & Community Services Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an amendment with Superior Property Services, increasing the contingency by $8,250 for a total annual amount of $105,100, for CITY COUNCIL MINUTES 9 OCTOBER 20, 2015 10A-9 25F 25G. the third year period of the five-year agreement, subject to non - substantive changes approved by the City Manager and the City Attorney. ENGINEERING, TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES {STRATEGIC PLAN NO. 6, 1 C) - Public Works Agency MOTION: Authorize the City Manager and the Clerk of the Council to execute agreements with following, subject to non -substantive changes approved by the City Manager and City Attorney, for a three-year period expiring October 20, 2018, with provisions for one 2 -year renewal option exercisable by the City Manager and City Attorney, in an amount not to exceed $500,000 for each firm over the entire term of the agreement, including any renewal: • AGMT NO. 2015-235- With Project Partners, Inc., • AGMT NO. 2015-236 —With PENCO Engineering, Inc., and • AGMT NO. 2015-237— With CivilSource, Inc. (PROJECT 16- 6, 161 Public Councilmember Martinez, requested update on crash that occurred at the corner of Myrtle Street and Flower Street on October 19, 2015. MOTION: Authorize the City Manager and the Clerk of the Council to execute an agreement with Albert Grover & Associates, subject to non -substantive changes approved by the City Manager and City Attorney, to conduct engineering and traffic survey studies in order to update posted speed limits, as well as follow up speed surveys, in a total amount not to exceed $75,812, which includes a 10% contingency, for a three-year period from October 21, 2015 through October 20, 2018. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Sarmiento Benavides, Pulido, Martinez, Sarmiento, Tinajero (6) None (0) None (0) Amezcua (1) Reyna, CITY COUNCIL MINUTES 10 OCTOBER 20, 2015 10A-10 25H AGMT NO. 2015-239 - GRAFFITI STREETCLEANING SERVICES (NON -GENERAL FUND)` {STRATEGIC PLAN NOS. 6, 1B` and 7, 5E) Public Works Agency and Parks, Recreation & Community Services Agency Councilmember Martinez, requested report on full cost analysis of police and graffiti enforcement, including return on investment. MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Graffiti Protective Coatings, Inc., subject to non -substantive changes approved by the City Manager and City Attorney, to perform graffiti street cleaning services in areas that are visible from the right-of-way in the amount of $1,820,000 and in City park areas not visible from the right-of-way in the amount of $324,000 for a total contract amount not to exceed $2,144,000 in the two-year period; contract expires October 31, 2017 and allows for three 1 -year renewal options, exercisable by the City Manager and City Attorney. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Tinajero Benavides, Pulido, Martinez, Sarmiento, Tinajero (6) None (0) None (0) Amezcua (1) Reyna, 251. MANAGED PRINT SERVICES AND LEASE OBLIGATIONS FOR COPIERS {STRATEGIC PLAN NO. 7, 5) - Finance & Management Services MOTION: 1. AGMT NO. 2015-240 - Authorize the City Manager and Clerk of the Council to execute an agreement with C3 Office Solutions, subject to non -substantive changes approved by the City Manager and City Attorney, for Managed Print Services along with contract contingency of ten percent for one year (November 1, 2015 through October 31, 2016), for an amount not to exceed $177,670. CITY COUNCIL MINUTES 11 OCTOBER 20, 2015 10A-11 2. AGMT NO. 2015-241 - Authorize the City Manager and Clerk of the Council to amend the existing agreement with C3 Office Solutions for the period November 1, 2012 through October 31, 2015, subject to non -substantive changes approved by the City Manager and City Attorney, for Managed Print Services related to invoices to close-out existing account balance for an amount not to exceed $39,000. 3. AGMT NO. 2015-242 - Authorize the City Manager and Clerk of the Council to execute a lease agreement with C3 Office Solutions which is anticipated to be assigned to GE Capital, LLC for the purpose of consolidating all leases with GE Capital, LLC, subject to non -substantive changes approved by the City Manager and City Attorney, for the consolidation of approved and existing Capital Leases, along with two additional Capital Leases of City Multi -Function Printers for a three-year term beginning November 1, 2015 through October 31, 2018, for an amount not to exceed $470,330. LAND USE MATTERS CONDITIONAL USE PERMIT/VARIANCES 31 A. VARIANCE NO. 2015-06 TO ALLOW A REDUCTION IN PARKING FOR PLANET FITNESS AT 1760 EAST EDINGER AVENUE - CHASE VILLAFANA, APPLICANT {STRATEGIC PLAN NO. 3, 21 - Planning and Building Agency Planning Commission approved recommended action on September 28, 2015, by a vote of 6-0 (Alderete absent). MOTION: Receive and file the staff report approving Variance No. 2015-06 as conditioned. **END OF CONSENT CALENDAR** CITY COUNCIL MINUTES 12 OCTOBER 20, 2015 10A-12 BUSINESS CALENDAR ITEMS RESOLUTIONS 55A. RECREATIONAL TRAILS PROGRAM GRANT APPLICATION {STRATEGIC PLAN NO. 5, 4A} - Parks, Recreation & Community Services Agency MOTION: Adopt a resolution. RESOLUTION NO. 2015-058 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE APPLICATION FOR GRANT FUNDS FROM THE STATE OF CALIFORNIA RECREATIONAL TRAILS PROGRAM FOR A BIKE TRAIL PROJECT ALONG THE GREENVILLE/BANNING FLOOD CONTROL CHANNEL AND CENTENNIAL PARK MOTION: Martinez SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Pulido, Reyna, Tinajero, Sarmiento (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Amezcua(1) 55B. PROPOSED AMENDMENTS TO FISCAL YEAR 2015-16 BUDGET TO ADD ONE POLICE SERGEANT AND FOUR POLICE OFFICERS POSITIONS (STRATEGIC PLAN NO. 1,1 and 5,1) - Personnel Services Agency and Police Department MOTION: 1. Adopt a resolution. RESOLUTION NO. 2015-059 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CURRENT ANNUAL BUDGET TO ADD FIVE FULL TIME POSITIONS IN THE POLICE DEPARTMENT 2. Approve an appropriation adjustment. (Requires five affirmative votes) CITY COUNCIL MINUTES 13 OCTOBER 20, 2015 10A-13 APPROPRIATION ADJUSTMENT NO. 2016-050 - Approve an appropriation adjustment in an amount of $725,869 from recognized prior year revenue and appropriating $725,869 into the Downtown Enhancements account. MOTION: Sarmiento SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Pulido, Reyna, Tinajero, Sarmiento (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Amezcua(1) *Councilmember Amezcua arrived at 6:44 p.m. REPORTS 65A. REVIEW AND ADOPT THE FISCAL YEAR 2014-15 SURPLUS ALLOCATION PLAN, AND APPROVE APPROPRIATION ADJUSTMENT {STRATEGIC PLAN NO. 4, 1; 6, 1, 21 - City Manager's Office The following spoke on the matter: • Rick Neidermeyer, supports synthetic turf at Dan Young Soccer Field. • Victoria Perez, support funding for internship program in the amount of $150,000 that could to benefit as many as 3,000 families in our community. • Luis Sarmiento, congratulated staff for having surplus; pleased with proposal for homeless program in addition to joint use agreements; requested consideration for proposal presented by community groups. • America Bracho, representing Latino Health Access, requested funding in the amount of $1 million for building maintenance. Staff presentation by City Manager Cavazos CITY CHARTER REQUIREMENTS (Santa Ana City Charter) Sec. 609 — Budget Appropriations (Year -End Balance). From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several offices, agencies, and departments for the respective objectives and purposes therein specified as stated in an appropriation ordinance. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. CITY COUNCIL MINUTES 14 OCTOBER 20, 2015 1 OA -14 • Sec. 609 — Budget Appropriations (Voting Requirements). At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least two-thirds (2/3) of the members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget. FY 14-15 PROJECTED YEAR-END SURPLUS TOTAL GENERAL FUND Total Revenues $ 208,918,360 $ 219,599,548 $ 10,681,188 5.1% Total Expenditures $ 208,918,360 $ 208,343,008 $ (575,352) , •0.3% Current estimates for the year-end balance/surplus is approximately: +$11,256,540 Total of approximately $25M over two years ALLOCATION SCHEDULE August 2015: — Discussions with Mayor and Council — Mayor and Council Retreat: August 18, 2015 — Discussions with Mayor and Council September 2015: — Final determination of accrued expenses — Discussions with Mayor and Council — Also, preliminary surplus amount determined $11,250,000 — Work Study Session: September 15, 2015 — Discussions with Mayor and Council October 2015: — Discussions with Mayor and Council — Final Council Approval of Surplus Funds: October 20, 2015 — Discussions with Mayor and Council Total Funding • THE PLAN — ONE TIME MONEY ras in smaznnu swww • Parks • Safety/Securityoo�oo • Technology • Investment • Facilities/Assets 2��Mao SURPLUS ALLOCATION— NEXT STEPS 1. Review projects and adopt a Fiscal Year 2014-15 Surplus Allocation "List of Projects" for consensus approval by Mayor and City Council: OR CITY COUNCIL MINUTES 15 OCTOBER 20, 2015 10A-15 1. Review options and direct staff to make adjustments to the Fiscal Year 2014-2015 Surplus Allocation Plan at the discretion of the Mayor and City Council. Approve a combination of surplus eligible projects from the 'List of Projects" and direct staff to appropriate funds in the amounts identified by the Mayor and Council. 2. Approve the establishment of the Council Special Projects Fund (fund 50) and the appropriation adjustment recognizing up to $11,250,000 from the Fiscal Year 2014-15 General Fund Balance and appropriating the same to the Council Special Projects Fund expenditure and reserve accounts as outlined in the Surplus Allocation Plan. BRISTOL PROPERTY SALE (CDBG) ECONOMIC INVESTMENT FUNDS (SARTC) NEXT STEPS • Review projects that are CDBG eligible according to the discretion of the Mayor and City Council funded by the sale of Bristol Street Remnant Parcels up to an amount of $2,000,000. • Review and approve Santa Ana Regional Transportation Center's 'maintenance and improvements' in the amount of $3,800,000 pending completion of city-wide credit analysis indicating the use of the Economic Investment funds would have no adverse impact on the City's credit rating. Council discussion ensued. Mayor Pulido, asked why Cabrillo Park Clay Tennis Court project was moved to Community Development Block Grant (CDBG) List B eligibible projects. Mayor Pro Tem Sarmiento, supports approval of items listed on item a) and continue consider of item b) to a later date; requested consideration of funding for Civic Engagement, Building Healthy Communities and Latino Health Access proposal, also, include Sandpointe Park security lighting as an identified project, and recommended that some of the proposed joint - use agreement funding be reallocated to homelessness. Councilmember Martinez, asked that civic engagement be a priority and institutionalized; State allocated $25 million for statewide efforts; City to focus on core services and sustainable government; need to make sure that funds are reallocated to future budgets in the event that projects are not completed in current fiscal year; also, proceeds of Bristol Street property acquisition funds to return to council for consideration. City Manager Cavazos, indicated that allocation will be for a 3 year period to make sure projects are completed. Councilmember Amezcua, opined that consensus reached on approve projects on List A. CITY COUNCIL MINUTES 16 OCTOBER 20, 2015 10A-16 Mayor Pulido, asked if possible for more additional funding available in the near future. City Manager noted that finances would be appraised and return to City Council with revised figures. Councilmember Tinajero, thanked staff for progress made to date. Councilmember Benavides, recommended consideration of skate park in the downtown area. MOTION: 1. Adopt a Fiscal Year 2014-15 Surplus Allocation "List of Projects": a) Direct staff to make adjustments to the Fiscal Year 2014-2015 Surplus Allocation Plan in the total amount of $11,250,000, as follow: CITY COUNCIL MINUTES 17 OCTOBER 20, 2015 10A-17 Total Project/Community funding Dept Benefit Ward Category Requested Parks and Angel Restroom Recreation Renovations 5 Parks $50,000 Riverview Basketball Parks and Court and Parking Lot Recreation Renovation 3 Parks $97,400 Parks and Santiago Bike Trail Recreation Resurfacing Project 3 Parks $70,000 Santiago Playground Parks and Equipment Recreation Replacement 3 Parks $ 230,000 Bomo Koral Parks and Sidewalk/Walkway Recreation Renovations 4 Parks $ 150,000 Dan Young Soccer Parks and Court Field #2 Syn Recreation Turf 6 Parks $ 640,000 Parks and Cabrillo Park Tennis Recreation Court Renovations 1 Parks $75,000 Parks and Recreation Windsor Tennis Courts 6 Parks $ 140,000 Civic Center Joint Parks and Powers Authority - Recreation Renovations City -Wide Parks $ 419,000 Body Cameras- 200 Safety SAPD Cameras for use by City -Wide $ 350,000 Police Department /Security Parks and Security Lights: 6 $50,000 Recreation Windsor Park Parks CITY COUNCIL MINUTES 17 OCTOBER 20, 2015 10A-17 CITY COUNCIL MINUTES 18 OCTOBER 20, 2015 10A-18 Total Project/ Community Funding Det Benefit Ward Category Requested Parks and Security Lights: Santa 6 $50,000 Recreation Anita Park Parks Parks and Security Lights: Lillie 1 $50,000 Recreation Kin Park Parks Parks and Security Lights: 3 $50,000 Recreation Santiago Park Parks Parks and Security Lights: Bomo 4 $ 170,000 Recreation Koral Park Parks Parks and Security Lights: 6 $50,000 Recreation Heritage Park Parks Parks and Security Lights: 1 $50,000 Recreation Madison Park Parks Parks and Security Lights: Fisher 3 $70,000 Recreation Park Parks Safety / CMO Homeless City -Wide Security $ 400,000 Public Works GIS System City -Wide Tech. $ 125,000 Agency Development Network, Data Centers Technology and Servers/Software, City -Wide Tech. $1,065,000 Communications Upgrade IT Equipment Upgrades - Technology Computers/laptops, City -Wide Tech. $ 273,600 mobile technology, phones Financial Budgeting Technology Application City -Wide Tech. $ 400,000 Planning & Building TechnologyPermittingApplication It -Wide Tech. $ 300,000 Communications - Equipment, Translation Services, CMO City -Wide Tech. $ 190,000 Communication Communication & Public Relations Services, Marketing and Advertising Public Works CIP, Asset Management, Technology and Project City -Wide Tech. $ 300,000 Management Application Santa Ana City -Wide CDA Branding Study City -Wide Investment $ 200,000 Planning and Building General Plan Update City -Wide Investment $1,0003000 Planning and Metro East Zone 1 Investment $ 100,000 CITY COUNCIL MINUTES 18 OCTOBER 20, 2015 10A-18 MOTION: Sarmiento VOTE: AYES: SECOND: Reyna Amezcua, Benavides, Martinez, Pulido, Reyna, CITY COUNCIL MINUTES 19 OCTOBER 20, 2015 10A-19 Total Project/ Community Funding Det Benefit Ward Category Requested Building Expansion Finance Pension Stability Fund City -Wide Investment $ 500,000 Placemaking City - CDA Wide City -Wide Investment $ 100,000 SARTC Deferred Public Works Maintenance- HVAC Agency Replacement 2 Investment $ 650,000 Corbin Center Improvements- Facilities/ Finance Restroom Renovation 4 Assets $50,000 & Facility Improvements Corporate Yard: Roof Facilities/ Finance Restoration & Facility City -Wide Assets $ 650,000 Renovations Grand Central: Chiller Finance Replacement- Cal City -Wide Facilities/ $ 450,000 State Fullerton 2nd St. Assets Promenade Police Department Facilities/ Finance Jail: Facility City -Wide Assets $ 150,000 Renovations Finance City Hall Facility and City -Wide Facilities/ $ 155,000 Safety Renovations Assets Finance Newhope Library- 3 Facilities/ $40,000 HVAC Project Assets Jerome Center Gym & Finance Southwest Senior 4 Facilities/ $50,000 Center- Facility Assets Renovations EI Salvador Center - Finance Upgrade Exterior 5 Facilities/ $15,000 HVAC Security Assets Enclosures Fleet Replacement - Police, Public Works, Finance Finance, Planning and City -Wide Cit Facilities/ $1,300,000 Building, Parks & Assets Recreation- 44 Vehicles Calle Cuatro Street Facilities/ CMO Signs and Plaza Calle 2 Assets $25,000 Cuatro Signage TOTAL $11,250,000 MOTION: Sarmiento VOTE: AYES: SECOND: Reyna Amezcua, Benavides, Martinez, Pulido, Reyna, CITY COUNCIL MINUTES 19 OCTOBER 20, 2015 10A-19 Tinajero, Sarmiento (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) b) Continue consideration of items identified as Community Development Block Grant (CDBG) eligible to a future date. c) Approve Santa Ana Regional Transportation Center's maintenance and improvements (Maintenance, Safety/Liability, Tenant space, signage) in the amount of $3,800,000 pending completion of city-wide credit analysis indicating the use of the Economic Investment funds would have no adverse impact on the City's credit rating. MOTION: Tinajero SECOND: Reyna VOTE: AYES: Amezcua, Benavides, Martinez, Pulido, Reyna, Tinajero, Sarmiento (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 2. APPROPRIATION ADJUSTMENT NO. 2016-051 - Approve the establishment of the Council Special Projects Fund (fund 50) and the appropriation adjustment recognizing $11,250,000 from the Fiscal Year 2014.15 General Fund Balance and appropriating the same to the Council Special Projects Fund expenditure and reserve accounts. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Reyna Amezcua, Benavides, Martinez, Pulido, Reyna, Tinajero, Sarmiento (7) None (0) None (0) None (0) CITY COUNCIL MINUTES 20 OCTOBER 20, 2015 1 OA -20 PUBLIC HEARING 75A. EMERGENCY ORDINANCE EXTENDING MORATORIUM ON THE ESTABLISHMENT OR EXPANSION OF ANY SHORT-TERM RESIDENTIAL RENTAL USE FOR AN ADDITIONAL 10 MONTHS AND 15 DAYS {STRATEGIC PLAN NO. 5, 4}. - Planning and Building Agency Legal Notice published in the Orange County Reporter on October 9, 2015. Mayor Pulido opened the Hearing. The following spoke on the matter: • Douglas McLeith, spoke against proposed ordinance; restrictive and not warranted; suggested restrictions for short term rental for full house and for more than 2 people and when owner is not present. • Julie Herrick, has had favorable experience while renting room at her house; opined that proposed ordinance was overreaching and would negatively impact those that are not a problem; suggest 45 day review period, if needed; also, short term rentals allow travelers to experience Santa Ana. Mayor closed the Hearing. Council discussion ensued. Councilmember Martinez, supports shared economy. Planning and Building Executive Director Haghani, noted that staff reviewing various models; will bring options for consideration; could exempt the properties where property owners are on site or hold off enforcement unless evidence of complaint, if so desired by the City Council; also, intention is to come back to City Council before moratorium expires. Mayor Pro Tem Sarmiento, noted that issue brought forward because of complaint; need to pause and support concept of shared economy; should consider deferring ordinance. City Manager Cavazos, reported that the home in question that brought forth this issue is now listed for sale, thus not aware of other neighborhood complaints on short term rentals. Councilmember Martinez, proposed that matter be tabled and bring to the Development and Transportation Committee. Planning and Building Executive Director Haghani, stated that matter will include in the upcoming zoning code update. CITY COUNCIL MINUTES 21 OCTOBER 20, 2015 1 OA -21 City Attorney Carvalho, reported for the record that once the City Council does not extend a moratorium, the City Council will not be able to agendize matter as a moratorium in the future. MOTION: Table matter indefinitely and agendize on the Development and Transportation Advisory Committee for review. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN: ABSENT: WORK STUDY SESSION SECOND: Amezcua Amezcua, Benavides, Martinez, Pulido, Reyna, Tinajero, Sarmiento (7) None (0) None (0) None (0) WS. OPTIONS FOR ADDRESSING MOBILE VENDING TRUCKS - Planning and Building Agency Staff report presentation by Interim Code Enforcement Manager, Alvaro Nunez Propose Modifications to the Ordinance • Rescind Ordinance based on Federal Court Injunction • Update regulations to reflect current industry practices • Eliminate outdated provisions • Distinguish between commercial and residential districts • Public Considerations • Colocation of multiple mobile vendors • Compare with similar cities Meetings with Stakeholders • Planning & Building Agency • Santa Ana Police Department (Traffic Division) • Orange County Health • Latino Health Access • Mobile Vending representative — produce • Mobile Vending representative — catering • South Santa Ana Merchants Association • Downtown Restaurant Association • Neighborhood Association/Comm Link representative • Public Works Agency CITY COUNCIL MINUTES 22 OCTOBER 20, 2015 1 OA -22 Survey of successful models from other jurisdictions San Jose, San Francisco, LA County Santa Monica, Long Beach, West Hollywood, Anaheim, Phoenix, Portland, Palm Desert, and San Luis Obispo What we heard -- Mobile Vending Positives • Provides access to food and other convenience items in dense neighborhoods • Easily accessible to those without transportation • Can act as "eyes on the street' due to their continual presence • Already part of the Community. What we heard -- Public Safety Concerns • Parking too close to intersections and driveways — blocks visibility at crosswalks and sidewalks • Mid -block pedestrian crossings to reach trucks • Can become targets for graffiti and gang identification What we heard -- Neighborhood Quality of Life concerns • Concentration of vending vehicles on neighborhood streets • Loud noise • Damage to parkways • Trash and litter accumulation • Tables and chairs blocking sidewalks or set up in the road • Public urination What we heard -- Public Health concerns • Failure to comply with Orange County Health standards • Overnight parking in residential zones • Vehicles not returning to commissaries • Vehicles not adhering to the 2 hour limitation when not providing bathroom within 200 feet. Vendors taking up limited parking spaces Late night operation Proposed Modifications to Ordinance • Rescind Ordinance based on Federal Court Injunction • Eliminate outdated provisions • Distinguish between commercial and residential districts • Public Considerations • Colocation of multiple mobile vendors • Public Health Concerns— recommendations • Commissary • Sanitation/Bathroom Requirements • Daily Reporting CITY COUNCIL MINUTES 23 OCTOBER 20, 2015 1 OA -23 Public Safety — recommendations Separation Requirements • Distance 500 ft. from any school, park, community center or playground facility. • Distance within 50 feet of a crosswalk. • Maximum six feet in height • No blocking of driveways or movement of other vehicles upon any sidewalks, and public or private streets. Quality of Life— recommendations Public Right of Way— Prohibit items in the public right of way • Refuse containers -- maintain 50 -foot radius of the vehicle • Prohibit the use of amplified sound • Establish hours of operation in residential zones and uses Commercial Zones - Establish Mobile food vending courts (districts) • Allowed on private/public property— special event permit. • Enhance/enliven an area • Increase business activity • generate traffic for existing businesses Commercial Zones - Considerations • Hours of operation • Traffic/road closures • Proximity to similar brick -and -mortar businesses • Duration and regularity of events. Councilmember Martinez, asked that City work with school district in addressing mobile vending trucks on school grounds; recommended land use permit and possibility of establishing districts; suggest that any proposed ordinance not interfere with special events and school fundraisers. City Attorney Carvalho, said that draft ordinance can include special event provisions, not apply to special agency or neighborhood event if given notice in advance, and may include regulations for schools by balancing the brick and motor establishments. Councilmember Amezcua, concerned with health, safety, and sanitation of food trucks. Councilmember Reyna, need to address light pollution; need to regulate according to vehicle code Mayor Pro Tem Sarmiento, noted that City has tried to regulate in the past, with little success — place, time, management are difficult and have issues with public safety and other secondary impacts, business industry CITY COUNCIL MINUTES 24 OCTOBER 20, 2015 1 OA -24 has matured, need to create economic development opportunities and balance brick and motor establishments. Motion by Councilmember, seconded by Mayor Pro Tem Sarmiento to direct staff to rescind current ordinance and return to City Council with options within the next 90 days with new option; motion carried unanimously. COMMENTS PUBLIC COMMENTS (Non-Agendized Items) • Michael Klubuski, concerned with County of Orange's Ethics Committee ordinance. • Venacio Chavez, spoke of various neighborhood issues including increased alcohol consumption, drugs and other illegal activity; request assistance with proposed alcohol license for a business on Minter Street. • Steve Rocco, provided update on recall efforts underway and other personal issues. • Edgar Sebastian Vasquez, representing InterAmerican Agency Sports concerned with proposed closure of Eddie West stadium for a 6 month renovation and closure of fields at Centennial #2; asked that City Council consider impacts to teams when making such decisions. • Rick Neidermeyer, asked that CDBG funding be available for less projects and programs requesting less than $30,000; also asked City to regulate drones. • Victor Payan, invited all to upcoming Film Festival event this weekend at Frida Theater. • Madeline Spencer, commented on need to hold police officers accountable. 90A. CITY MANAGER'S COMMENTS • Announced that Community Emergency Response Team "CERT" program will be returning. 90B. CITY COUNCILMEMBER COMMENTS Councilmember Martinez: • Expressed concerned that she was not aware that Eddie West Stadium would be closed for 4-6 months; venue has high usage; • Reminded all that each Ward can spend up to $10,000 a year for neighborhood events; encouraged all to apply; • Invited all to 2nd annual SOMOS event on November 8th; asked staff to promote event regionally; and • Asked that City Council be kept abreast of community events and changes at City Hall that effect the community. CITY COUNCIL MINUTES 25 OCTOBER 20, 2015 1 OA -25 Councilmember Tinajero: • Announced that Santa Ana High school has undefeated record; upcoming homecoming game v. Segerstrom coming up; • Pleased that City Council able to allocate extra funds; and • Thanked efforts by police officers and Police Chief. Mayor Pro Tem Sarmiento: • Thanked the City Manager for winding down negotiations labor groups; • Asked that Communications Manager send out alert on upcoming movie screening on October 24, 2015 at 7:00 PM at the Frida Theater; • Noted that surplus funds should be retitled unallocated funds —deferred maintenance and one-time projects; • Thanked police rank and file for service and living up to high standards; and • Wished all a happy Halloween and asked all to be safe. Councilmember Amezcua: • Thanked staff for efforts in bringing forth surplus funds; • Thanked Police Chief for leadership and continue to hold staff to high standards; • Reported that Orange County Fire Authority has decreased response times; and • Wished son a happy birthday. Councilmember Reyna: • Asked all to continue to conserve water; • Encouraged all to attend Santa Ana High School v. Segerstrom football game; • Held successful Youth Leadership conference; thanked presenters; • Hosted community meeting to inform area of grants available for neighborhood events; and • Urged all to shop Santa Ana. Councilmember Benavides: • Asked all to be safe on Halloween; • Commented on need for deferred maintenance, need to address maintenance on a regular basis; • City Council committed to "Community Engagement' efforts; access and accessible; • Participated in Love Santa Ana Initiative; graffiti removal app has been effective in eradicating; • Encouraged residents to visit City website and register to receive regular updates through Nixel alerts; need to make option visible on site; and • Support local economy — Shop Santa Ana. CITY COUNCIL MINUTES 26 OCTOBER 20, 2015 1 OA -26 Mayor Pulido: • Requested memo on status of Eddie West Stadium closure and proposed next steps; • Announced that Bowers Museum in negotiation with Vatican to bring exhibit to Santa Ana; and • Adjourned in memory of Yolanda Hernandez who worked for Dr. Nogales and to Christopher Joseph Ruiz who served our country in the Marine Corp. ADJOURNED - 9:02 p.m. — The next meeting of the City Council is scheduled for Tuesday, November 3, 2015 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. Adjourn in Memory of Christopher Joseph Ruiz and Yolanda Hernandez Maria Huizar, Clerk of the Council FUTURE AGENDA ITEMS • Mater Dei High School Parking Structure Project • Community Engagement Plan • General Plan Update CITY COUNCIL MINUTES 27 OCTOBER 20, 2015 1 OA -27 1 OA -28 ;. SPECIAL MEETING CITY OF SANTA ANA COUNCIL COMMITTEE SPECIAL MEETING SPECIAL MEETING OF THE LEGISLATIVE COMMITTEE Monday, October 19, 2015 12:00 P.M. AGENDA CALL TO ORDER City Hall Ross Annex, Conference Room 1600 20 Civic Center Plaza, Santa Ana, California Committee Members: Michele Martinez and Vincent Sarmiento Recording Secretary: Yasmin Vazquez 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 the May 13, 2015 Meeting RECOMMENDED ACTION: Approve minutes. 2. Quarterly Federal Legislative Update from Holland & Knight - Report outlining legislative advocacy work April 2015 to September 2015 — Dan Maldonado {Strategic Plan No. 1 through 7} 3. Quarterly State Legislative Update from Townsend Public Affairs — Report outlining legislative advocacy work April 2015 to September 2015 — Christopher Townsend {Strategic Plan No. 1 through 7} 4. League of California Cities Briefing — Tony Cardenas {Strategic Plan No. 1 through 71 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 II, 28 CFR 35.102] Miguel A. Pulido, Vincent F. Sarmiento, Michele Martinez, Angelica Amezcua, P. David Benavides, Roman Reyna, Sal Tinajero, Mayor Mayor Pro Tem, Ward 2 Ward 3 Ward 4 Ward 5 Ward 6 MPuhdzgsanl a Ward MMertnezl@sa aan AAm—ua5sante-a DB—Adsanosante-a RRsvna(dsa m-ene om stlna erordsante-sne om rmiento(dsanleena.om City Hall, 20 Civic Center Plaza • P.O. Box 1988 • Santa Ana, California 92702 Mayor & Council Telephone: 714.647.6900 • Agenda Item Inquiries: 714-647-5200 • Website: www.santa-ana.ore 13A-1 5. Local Preference Ordinance Update — Francisco Gutierrez {Strategic Plan No. 1, 3; 7, 4} 6. Washington DC Lobbying Trip — David Cavazos {Strategic Plan No. 1 through 7} COMMITTEE MEMBER COMMENTS FUTURE AGENDA ITEMS ADJOURNMENT — The next regularly scheduled meeting will be on Wed., December 23, 2015, 12:00 p.m. The complete Strategic Plan document is available at httn://www.santa-ana.ora/strateoic-i3lanninci/ Legislative Council Committee Agenda 2 May 13, 2015 13A-2 CITY OF SANTA ANA LEGISLATIVE COUNCIL COMMITTEE MINUTES May 13, 2015 CALL TO ORDER The meeting was called to order at 12:09 pm by Chair Sarmiento at City Hall Ross Annex, Room 1600. ATTENDANCE Members Present: Councilmember Michele Martinez Mayor Pro Tem Vincent Sarmiento, Chair Members Absent: None Staff Present: David Cavazos, Robert Cortez, Eddie Duque, Manny Escamilla, Alma Flores, Matt Foulkes, Vince Fregoso, Jorge Garcia, Francisco Gutierrez, Scott Kutner, Mark Lawrence, Fred Mousavipour, Mike Ortiz, Carlos Rojas and Yasmin Vazquez. Also present were Cori Williams from Townsend Public Affairs, Leslie Pollner (by phone) and Dan Maldonado (by phone) from Holland & Knight and Casey Elliot (by phone) from Townsend Public Affairs. PUBLIC COMMENTS Three members of the public were present and did not provide their names. They made no comments. AGENDA ITEMS Approval of Minutes of the February 23, 2015 Meeting. Approval of the February 23, 2015 minutes was motioned by Councilwoman Michele Martinez and approved by a vote of 2 to 0. 2. Quarterly Federal Legislative Update from Holland & Knight - Report outlining legislative advocacy work from January 2015 to March 2015 Leslie Pollner provided a federal legislative advocacy update to the Committee. Most notably, the City of Santa Ana received provisional approval from ICE on an increase of the contract per diem rate the City receives from U.S. Immigration and Customs Enforcement (ICE) for the Santa Ana Jail. Holland and Knight is working through last minute questions related to guaranteed bed provisions for the lesbian, gay, bisexual, Legislativeu it�q mmittee Minutes Mfyby'3, Page 1 transgender, and queer unit. Holland and Knight expects a response from ICE and Homeland Security by the end of the week. Leslie Pollner reported the City of Santa Ana's allocation of Urban Areas Security Initiative funds will remain at $5.5 million this fiscal year. Holland and Knight coordinated a conference call with the Department of Housing and Urban Development (HUD) regarding the City's approach during the second round of the Promise Zone application process. Additionally, the Washington D.C. lobbying trip was cancelled due to a snow storm that closed federal government offices and will be rescheduled for some time in the fall. Mayor Pro Tem Vincent Sarmiento thanked Holland and Knight for their work with ICE on the Santa Ana Jail per diem increase. City Manager David Cavazos mentioned the rate increased from $83 per day to $105 per day. He emphasized the City is not profiting from jail operations and, before the per diem increase, had actually been subsidizing operations. Mayor Pro Tem Sarmiento clarified the ICE contract pre- existed the current administration and is revisited periodically. Councilwoman Michele Martinez thanked Holland and Knight for the update. She asked for clarification as to whether HUD may be moving in the direction of an Open Government National Action Plan as it pertains to Community Development Block Grant (CDBG) funding and affordable housing funding. Councilwoman Michele Martinez expressed concern regarding the digital divide and the perceived monopoly by wireless internet service providers within the City. Dan Maldonado responded that there are divisions within the parties regarding this issue and Councilwoman Martinez asked for continued monitoring. Leslie Pollner reported the probable need for an extension of the Highway Trust Fund as the current authorization is expiring on May 31, 2015. Several temporary options are being considered by Congress. Questions remain as to how long the next reauthorization will extend the solvency of the Fund. Leslie Pollner mentioned the federal appropriation process has begun. There is concern over funding levels. Dan Maldonado commented Congress agreed to a joint House -Senate budget resolution. The budget resolution maintains the automatic spending cuts under sequestration and reflects caps on discretionary spending. In regards to immigrations, Leslie Pollner remarked that the implementation of the Deferred Action for Parents of Americans and Lawful Permanent Residents Program as well as the expanded rules under the existing Deferred Action for Childhood Arrivals Program have been postponed indefinitely until a resolution can be reached in court. Leslie Pollner mentioned she expects the COPS solicitation to open soon. She added that the Body -Worn Camera solicitation is open and Holland & Knight will be working closely with the City on this application. Legislative Council Committee Minutes .Ffl$iA4' 5, Page 2 Mayor Pro Tem Vincent Sarmiento highlighted that affordable housing is an area of interest for the City. Dan Maldonado asked for a briefing on types of housing projects the City is interested in or has been working on. Councilwoman Michele Martinez added that housing for homeless is also an area of interest for the City. Dan Maldonado asked whether the homeless population included many veterans, as funding is available for that demographic. Chief Carlos Rojas confirmed there are. 3. Quarterly State Legislative Update from Townsend Public Affairs — Report outlining legislative advocacy work from January 2015 to March 2015 Casey Elliot provided a state legislative advocacy update to the Committee. Casey mentioned Townsend Public Affairs continues to provide state budget advocacy. A budget revision will be released in the middle of May. In the first quarter, budget advocacy efforts revolved around redevelopment dissolution and the Governor's funding toward drought related efforts. Cori Williams reported Townsend Public Affairs was successful with two partnership grants the City was involved in. America on Track and Awards for Innovation in Higher Education both received substantial funding. Additionally, the second cycle of the Active Transportation Program grant has begun. The City was successful in the previous round of funding. The City is only one of three areas listed as a disadvantaged community in Orange County which gives Santa Ana a significant advantage in the current cycle. The application is due June 1, 2015. Casey Elliot mentioned many bills were passed during the first part of the legislative session. The City is backing Speaker Toni Atkins package of bills supporting affordable housing. The City supported Senator Jim Beall's transportation bill which establishes the Road Maintenance and Rehabilitation Program and Senator Bill Monning's bill requiring a safety warning on all sealed, sugar -sweetened beverage containers. Casey Elliot commented on the adoption of Governor Jerry Brown's Executive Order directing the State Water Resources Control Board to implement a 25% mandatory water usage reduction throughout California. Additional provisions mandate an initiative to replace turf with drought -tolerant landscaping in partnership with local governments. Regulations provide the State Water Resources Control Board several enforcement tools including the ability to levy fines against those not meeting conservations targets. Regulations will take effect on June 1, 2015. Councilwoman Michele Martinez asked regarding the availability of funds for municipalities to comply with the mandated turf removal from medians. Casey Elliot responded the Executive Order did not make any provisions for funding but it is expected that funds will be made available in the May revision of the State budget. Councilwoman Michele Martinez mentioned the Metropolitan Water District will be proposing the addition of $150 million in funding for turf removal and/or replacement but even with additional funds the demand will not be met. She sees a need for the State to match funding given that municipalities do not have funding allocated in their budgets to comply with the turf removal/replacement mandate. The Councilwoman asked Townsend Public Affairs to inform the City should additional funding become available. Legislative Council Committee Minutes 4AF-w Page 3 Mayor Pro Tem Vincent Sarmiento asked whether there had been any discussion in the Governor's office regarding subsidies for desalination of water. Casey Elliot responded Governor Jerry Brown's office has been considering desalinization as part of the implementation of the Proposition 1 water recycling component but there have been no discussions about additional funding for desalinization. Mayor Pro Tem Vincent Sarmiento asked for additional information regarding Senator Tony Mendoza's proposed bill allowing counties which have more than 2 million residents to increase the number of seats on their boards of supervisors. Mayor Pro Tem Sarmiento also inquired about Assemblymember Tom Daly's proposed bill regarding the school facilities fee. Casey Elliot responded Senator Tony Mendoza's measure was introduced as a constitutional amendment in the middle of May expanding the number of board of supervisor seats for charter counties larger than 2 million to seven or more seats after the 2020 census. The measure will need a two- thirds vote in both Houses to be placed on the 2016 ballot. Casey Elliot commented he will provide Mayor Pro Tem Sarmiento information on Assemblymember Tom Daly's proposed school facilities fee bill and Mayor Pro Tem asked Townsend Public Affairs to include the bill in their legislative monitoring. 4. League of California Cities Briefing, January 2015 to March 2015 Tony Cardenas was not present to provide an update. Mark Lawrence noted a handout was provided which highlights bills of interest to the League. 5. Review and Recommend Approval of 2015 Legislative Platform City Manager David Cavazos reviewed the items on the Legislative Platform that are new for 2015: Immigration Reform, Homeless, Veterans, Body Cameras, Safe Mobility, Gangs, Domestic Violence, Promise Zone, Affordable Housing, Enhanced Infrastructure Financing Districts, Goods Movement and Mobility, Sales Tax, Renewable Energy Grants, Receivership Actions, Water Conservation, Santa Ana Regional Transportation Center, Automated Meter Infrastructure, Replacement Water Wells, and the Reclaimed Water System Master Plan. Councilwoman Michele Martinez expressed interest in the City seeking funding for an open data platform. The City received over 600 public records requests in 2014. An open data platform would allow the public to search City records on their own, reducing staff time used to research requests and increasing efficiencies. Councilwoman Michele Martinez would also like the City to seek funding for first and last mile connections for the Santa Ana Regional Transportation Center and the infrastructure surrounding those connections. Mayor Pro Tem Vincent Sarmiento suggested prioritizing Legislative Platform items and aligning the prioritization with the federal government's priorities. His top priorities include affordable housing and economic development (particularly attracting and retaining businesses). Mayor Pro Tem Vincent Sarmiento also commented on the Medical Marijuana item in the Community Safety section, noting the City has moved beyond enforcement issues to operational concerns and understanding the dynamics of a new industry. He Legislative Council Committee Minutes ftk-015, Page 4 asked the section be reworded to reflect the shift. He mentioned the Platform will be ready to be presented to Council after those changes are made. 6. Discuss Senate Bill 7 In response to Councilwoman Michele Martinez's concern regarding loss of local control, Assistant to the City Manager Mark Lawrence provided a high level update on Senate Bill 7 as it relates to the City of Santa Ana. Beginning in January 2015, the City has been in compliance with the bill allowing the City to continue to receive state funding and to be eligible for funding opportunities such as Cap -and -Trade and Proposition 1 Water Bond funds for infrastructure, Active Transportation Program funding, Sustainable Transportation Planning Grant funding, Sustainable Communities funding, Park Bond funding, and Education Bond funding. Although local control is lost, the City benefits from funding opportunities, which for fiscal year 2013-2014, were over $45 million in state grants. The impact is projected as a $1.8 million total increase to the City's reoccurring contracts. Councilwoman Michele Martinez agreed the City benefits from complying and would like to ensure that within the RFP process the City's Local Preference Ordinance is followed. She mentioned this is where the City has local control and would like to see City funds reinvested in the community. City Manager David Cavazos asked staff to report to the Committee on the ordinance and its effectiveness. Mayor Pro Tem commented that investing in local businesses has a multiplier effect and circulates funds through the community. ICE Agreement Update City Manager David Cavazos reiterated the City is not profiting from jail operations and noted the City had been subsidizing jail operations for many years. The City Manager thanked the City Council, staff and Police Chief Carlos Rojas for their efforts in securing the per diem increase. Mayor Pro Tem Sarmiento asked for clarification as to whether the City notifies ICE regarding detainees' immigration status. City Manager David Cavazos responded Santa Ana Police Department arrestees are processed through the Orange County Jail and, based on the crime, are transferred to the appropriate facility. Persons held by the federal government are outside the Santa Ana Police Department's chain of custody. Occasionally, someone may be arrested and transferred to the Santa Ana Jail but it is not a result of a direct booking. Committee Member Comments No comments from Committee members. Future Agenda Items Local Preference Ordinance Legislative Council Committee Minutes 11GA4, Page 5 ADJOURNMENT Meeting was adjourned at 1:20 pm. Legislative Council Committee Minutes f 398. 2®15, Page 6 xfY ��AT l 'f CITY OF - .m '{ M Parks, Recreation, Education and Youth (PREY) Council Committee Monday, October 26, 2015 — 5:30 p.m. CALL TO ORDER Room 1600, Santa Ana City Hall Ross Annex Committee Members: Council Member Tem Sal Tinajero, Council Member Angelica Amezcua, and Council Member Roman Reyna Recording Secretary: Ron Ono, Admin Services Manager 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 the August 18, 2014 Meeting 2. City Ball Diamond Field Reservation Status Update (Enrique Marban) {Strategic Plan No. 2, 2B} 3. General Facility Reservation Update (Juan Lara) {Strategic Plan No. 2, 2B} 4. Chepa's Park Update on Security Lights and Cameras, and Handball Courts (Ron Ono) {Strategic Plan No. 6, 1 G) 5. City Produced Event Update (Jeannie Jurado) {Strategic Plan No. 5, 1C} 6. Joint -Use with SAUSD Update (Ron Ono) {Strategic Plan No. 2, 1B) 7. Use of Unallocated CDBG Monies to Purchase Two Sites for Public Parks (Kelly Reenders) {Strategic Plan No. 6, 1E} 8. Staff Update & Comments STAFF MEMBER COMMENTS COMMITTEE MEMBER COMMENTS FUTURE AGENDA ITEMS ADJOURNMENT Next PREY Council Committee Scheduled for Monday, January 25, 2016 at 5:30 PM MIf you need special assistance to participate in this meeting, please contact Michael Ortiz, City ADA Program Coordinator, at (714) 647-5340. 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, Sal Tinajero, Vincent F. Sarmiento, I Michele Martinez, i Angelica Amezcua, P. David Benavides, Roman Reyna, Mayor Ward 6 Mayor Pro Tem, Ward 2 Ward 3 Ward 4 Ward 5 MPulltlo(Qsanra-ane.org i. STlnelerofigsentegno,orp Ward t 1 MMatlinezOsanra-ana.orp AAme u,e[ .,t- ­..r i Drenevltlesasanra-ana.org RRevn dG n1a ne.o,q ysarmlentQ loan[a-ana oro 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.org 13A-9 13A-10 MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL COMMITTEE ON PARKS, RECREATION, EDUCATION AND YOUTH August 17, 2015 CALL TO ORDER The special meeting convened at 5:39 p.m. at Santa Ana City Hall Ross Annex Room 1600; 20 Civic Center Plaza, Santa Ana, California 92702, ATTENDANCE Council members Present Roman Reyna Angelica Amezcua Absent Mayor Pro Tem, Sal Tinajero (Chair) Staff Present: David Cavazos, City Manager Gerardo Mouet, PRCSA Executive Director Robert Cortez, Special Assistant to the City Manager Alma Flores, Communications Manager Jorge Garcia, Sr, Management Assistant CMO Melanie McCann, Associate Planner Pedro Guillen, Public Works Maintenance Manager Ali Borujerdi, General Maintenance Supervisor William Sandoval, Community Services Supervisor Francisco Arroyo, Sr. Management Analyst Lynn Nguyen, Principal Librarian Hiram Uribe, Graphic Designer PUBLIC COMMENTS: o Samuel Romero expressed concerns about criminal activities occurring at Chepa's Park handball court and requested the handball courts be removed and replaced with playground equipment. o Joe Andrade expressed the same concerns and requested the handball courts be removed and replaced with play equipment. o Barry Cottle expressed willingness to work with the City and the neighborhood to provide security lighting and cameras as part of the new development going in the Logan neighborhood. PREY Special Meeting &<ea _� August 17, 2015 a APPROVAL OF MINUTES o Minutes of April 27, 2015 accepted as presented. ® FY 15-16 PARK IMPROVEMENT PLAN UPDATE o Gerardo Mouet introduced Ali Borujerdi, General Maintenance Supervisor who presented information on the FY 15-16 Park Improvement Plan, focusing on the basic (Safety) needs. o David Cavazos and Gerardo Mouet provided historical information on the development of park improvements and how PRCSA identified the needed improvements. Councilmember Reyna expressed concern about the need for lighting at Kiwanis Barrier Free Park. o Gerardo Mouet indicated the park is underutilized in the evening due to the lack of security lighting. • DISCUSS DISTRICT/CITY AUGUST 24 JOINT POLICY MEETING o Gerardo Mouet provided a history of the policy meetings and the value of these meetings. o Councilmember Reyna requested a comprehensive agreement that could possibly include the use of district classrooms when not in use by the district. o Councilmember Amezcua agreed and also wanted to include District libraries. o Gerardo Mouet presented the existing and future joint projects that the City has with the District and indicated the start of a pilot program with SAUSD Student City Library Cards. o Melanie McCann provided an update on the homeless shelters. The Public Works Agency provided an update on school parking and street tree issue. Pedro Guillen indicated that due to the small area it would be a challenge to add trees. JOINT USE TENNIS COURT AT SANTA ANA HIG14 SCHOOL o Gerardo Mouet provided historical information on the joint use of the tennis courts with SAUSD. o Councilmember Reyna expressed concern that the cou is might be underutilized. Gerardo Mouet responded that a variety of courts around the City are used to accommodate residents that may not be able to travel to Santa Ana High School. Additionally PRCSA is working on growing the program to create more demand and therefore the courts will be utilized more. UPDATE ON NEW RECREATION AND LIBR.4,R f PROGRAM o Juan Lara provided information on the FY 14/15 Youth Programs and hove Strategic Furnds wv`p us3d t0 'T.E "I"�'I,"am PREY Special Meeting Page 2 August 17, 2015 13A-12 Lvnn !Nguyen indicated the i_ibrary Sunday operational hours will begin on September 20, 2015. Lorr, !Nguyen peovtded irn`ormation on the FY 14/15 e -library programs and how strategic funds were used to support the programs. STAFF UPDATE AND COMIN ENTS D Gerardo Mouet indicated that as of 8/18/15, 980 registrants had enrolled in the 5K run. He also provided an update on Fiestas 2015 and SOMOS 2015 events. COMMITTEE MEMBER COMMENTS o Councilmember Reyna indicated that the Catalina trip was fantastic and expressed a desire to increase the participation to 200 youths over the next 5 years. He also expressed a desire to hold a small mariachi festival. o Councilmember Amezcua indicated to possibly invite school mariachi groups to participate in SOMOS. a FUTURE AGENDA ITEMS o None. i ADJOURNED: 6:58 p.m. Gerardo Mouet Executive Director, PRCSA PREY Special Meeting I1A-13 August 17, 20[5 13A-14 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES (JULY 2015 — SEPTEMBER 2015) (STRATEGIC PLAN NO, 5, 3) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on V' Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file the quarterly report for Housing Division Projects and Activities (July 2015 September 2015), COMMUNITY REDEVELOPMENT AND HOUSING COMMISSIQN BION At Its regular meeting on October 14, 2015, by a unanimous vote, the Community Redevelopment and Housing Commission approved the recommended action. DISCUSSION The status report for the quarter ending on September 30, 2015 provides statistics for the day-to- day affordable housing activities. The report is divided into three sections: Loan Activity, Loan Portfolio Management and Monitoring, and Development Projects. LOAN ACTIVITY Applications The Housing Division offers several different programs including homebuyer down payment assistance and rehabilitation loans for historic single-family, single-family, and mobile homes. Inquiries are received from the public and applications are mailed out and received for these programs on a continuing basis, During this quarter, there were no Loan Subordination requests, Table 1 shows the number of Inquiries, applications sent out, received, and approved by type for the quarter and the total fiscal year. 19C-1 Quarterly Report Housing Division Projects and Activities (July — September 2015) Page 2 Table 1: Loan Application Status Program 01 Inquiries Total FY Applications Sent Out Applications Received Applications Approved Q1 Total FY Q1 Total FY Q1 Total FY Single -Family Rehabilitation 30 30 26 26 7 7 0 0 Mobile Home Rehabilitation 16 16 12 12 2 2 0 0 Multi-FamilyRehabilitation 2 2 0 0 0 0 0 0 Historic Home Restoration 1 1 1 1 0 0 1 1 Homeownership36 36 32 32 5 5 5 5 Rehabilitation Loan Underwriting and Approval Process Staff reviews applicant eligibility, verifies Income and assets, and oversees underwriting to ensure compliance with program guidelines and requirements established by the funding source. In addition, staff conducts an Inspection of the property, prepares a work write up to determine rehabilitation work to be performed, and develops a budget for the work. Due to the complex funding requirements, applicants may be In underwriting several months. The length of time In underwriting is largely determined by the applicant's timely submittal of the necessary paperwork, Once approved, staff prepares all necessary loan documents, makes arrangements for execution, and reserves the required loan funds, Construction Process 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 in selection of a contractor, monitors the construction work, approves payments to contractors, and tracks expenditures to ensure they do not exceed available funds. At the end of this quarter, there were three (3) homeowner rehabilitation projects out to bid, five (5) under construction, and one (1) was completed. Homeownership Approval Process 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 agency, be prequalified for a first mortgage, and have a minimum of three percent of the purchase price from their own savings. Other HUD requirements apply, including a current maxlmurn sales price of $466,000 for a single family home or condo or $560,000 for a newly constructed condo or home. The updated maximum sales price became effective on April 13, 2015, Additionally, the property needs to be In good condition and pass an Inspection by staff. 19C-2 Quarterly Report Housing Division Projects and Activities (July — September 2015) Page 3 LOAN PORTFOLIO MANAGEMENT AND MONITORING The Housing Division is responsible for ensuring the integrity of the residential loan portfolio, As of the end of this quarter, the principal balance was $111,440,047. This is comprised of 437 loans of which 413 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $1,437,460 in payments of principal and interest during the quarter. Table 2: Portfolio Revenue Monitoring As part of the requirements for these funds, staff must monitor the owner -occupancy for single family homes that have received loans and the code compliance of units in rental projects with long-term affordability covenants. During this quarter, 18 owner occupancy recertification letters were mailed and 12 were returned and processed. Staff conducted code compliance inspections for 26 units in 5 projects. Regulations require that only a sample 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 majority of the inspected units as well as the grounds and common areas were found to be in compliance at the time of initial inspection. Some of the units had observable deficiencies, including loose toilets, inoperative burners, faulty GPCI outlets, inoperative smoke alarms and carbon monoxide detectors. All of the deficiencies were repaired and the units were found to be in compliance at the time of the subsequent re -inspection. DEVELOPMENT PROJECTS NSP ?, 2 and 3 Programs The City's Intermediaries, ANR Industries, grange Housing Development Corporation, and C&C Development, continue to look for eligible properties, The acquisition of a single-family home located at 1235 S. Cypress closed escrow in August 2014 and the rehabilitation was completed In March 2015. During this quarter, the home was sold to a qualified homebuyer. 19C-3 Amortized Loan•Ue Monitoring As part of the requirements for these funds, staff must monitor the owner -occupancy for single family homes that have received loans and the code compliance of units in rental projects with long-term affordability covenants. During this quarter, 18 owner occupancy recertification letters were mailed and 12 were returned and processed. Staff conducted code compliance inspections for 26 units in 5 projects. Regulations require that only a sample 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 majority of the inspected units as well as the grounds and common areas were found to be in compliance at the time of initial inspection. Some of the units had observable deficiencies, including loose toilets, inoperative burners, faulty GPCI outlets, inoperative smoke alarms and carbon monoxide detectors. All of the deficiencies were repaired and the units were found to be in compliance at the time of the subsequent re -inspection. DEVELOPMENT PROJECTS NSP ?, 2 and 3 Programs The City's Intermediaries, ANR Industries, grange Housing Development Corporation, and C&C Development, continue to look for eligible properties, The acquisition of a single-family home located at 1235 S. Cypress closed escrow in August 2014 and the rehabilitation was completed In March 2015. During this quarter, the home was sold to a qualified homebuyer. 19C-3 Quarterly Report Housing Division Projects and Activities (July ^ September 2015) Page 4 Multi -Family Acquisition /Rehabilitation Projects The property at 940 S. Minnie Street Is currently being rehabilitated and is approximately 65% complete. Once the rehabilitation Is complete, the property will yield eight affordable rental units consisting of 4 one -bedroom units, 2 two-bedroom units and 2 three-bedroom units. In -Fill Development Projects The construction of a new single-family home at 1314 N. Eastwood was completed by Habitat for Humanity of Orange County during the previous quarter. The property was sold to a qualified homebuyer during this quarter. Habitat for Humanity of Orange County is also constructing two new single-family homes at 4106 and 4110 W. McFadden Street. The construction is approximately 70% complete. Depot at Santiago (New 70 -Unit Affordable Rental Housing Development) The Developer and the City were successful In receiving funds from the Strategic Growth Council's Affordable Housing and Sustainable Communities (AHSC); otherwise, known as Cap & Trade funds. These funds are the result of the first round of applications for affordable housing projects and active transportation. During this quarter, the Developer successfully applied for and was awarded the second round of 9% Tax Credits, Andalucia Apartments (New 70 -Unit Affordable Rental Housing Development) The Developer, 815 N. Harbor LP, was successful In obtaining 4% Tax Credits. Construction commenced during this quarter and the demolition of existing structures was completed. STRATEGIC PLAN ALIGNMENT The activities covered by this report allows 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. W�)V Kelly Reende Executive Dir or Community Development Agency 19C-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: REPAIR OF SIDEWALK r. QW us , r CITY MANAGER RECOMMENDED ACTION Receive and file. CLERK OF COUNCIL USE ONLY: ITAW:2001TAI 7 ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 216 Reading Implementing Resolution Set Public Hearing For CONTINUED TO FILE NUMBER This report is intended to provide the City Council with the details and background on staff's efforts to promote pedestrian safety and provide improved mobility to our community, while also respecting the great progress made by the City on expanding our urban forest. The City recently engaged a consultant to evaluate sidewalk conditions citywide, and identify missing sidewalks and noncompliant accessibility ramps, The information collected and evaluated includes an inventory and map of the locations in a Geographic Information System (GIS) format for integration of these amenities with other city infrastructure. These data will be augmented by a separate GIS Inventory and mapping of all city street trees, which is being conducted by the City's tree maintenance contractor, Prior to these Inventory efforts, staff had been grappling with locations in the city which have experienced sidewalk damage caused by city parkway trees. One of the locations is on Cabrillo Park Drive between 15th and 17th Streets. This area Is zoned "commercial' and has eight Ilquidembar trees along the east aide of the street. The sidewalk adjacent to these trees is in very poor condition, Moreover, the adjacent businesses generate a lot of pedestrian use. One such agency Is Catholic Charities whose visitors include many elderly and handicapped pedestrians. The map on Exhibit 1 shows the location of the subject trees on Cabrillo Park Drive, and the picture on Exhibit 2 provides the typical conditions adjacent to these eight trees. Faced with the challenge of preserving the health of these urban trees and providing a safe pedestrian walkway, staff presented a recommendation to the Environmental & Transportation Advisory Committee to replace four of the liquidamber trees with sycamore trees. The remaining 19D-1 Repair of Sidewalk and Replacement of Street Trees on Cabrillo Park Drive November 3, 2015 Page 2 four trees will then be examined by the City arborist after concrete removal allows for closer examination. The arborist will make the final decision to preserve or remove the remaining trees, based on the severity of root amputation, and whether they could remain stable and survive while maintaining public safety. Should any of the remaining trees require removal, they will also be replaced with sycamore trees. On September 1, 2015, the City Council awarded a construction contract to Ruiz Concrete & Paving, Inc., to perform high-priority sidewalk repairs Citywide, including the sidewalk repairs adjacent to the subject trees. The work in this area is on hold pending the decision by the City on the removal and/or replacement of the subject trees prior to performing the sidewalk repairs. STRATEGIC PLAN ALIGNMENT The work to be done 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 6 (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 There is no environmental impact associated with this action. Any trees that are removed will be replaced on a ane -for -one ratio. FISCAL IMPACT There is no fiscal impact associated with this action. N Mousavipour Exe utive Director Public Works Agency FM/EWG Exhibits: 1, Map of subject trees on Cabrillo Park Drive 2. Picture of typical sidewalk condition 19D-2 19D-4 N +-8 u ® v X m r4 N uu m w N C: cy L LC CU -0G U _ j QCU U L m 3 u OJ ° > 0 v 0 E Qj v o v O ° ami ai ai o a v F Q) 0 o � v v U U Y EC U m U m G O_ a U 0 u U w U ❑ ❑ ❑ REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2016 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED PUBLIC WORKS AGENCY STATUS OF ❑ As Recommended PROJECTS - MONTHLY REPORT FOR ❑ As Amended OCTOBER 2Q16 ❑ Ordinance on 981 Reading ❑ Ordinance on 2nd Reading (STRATEGIC PLAN NO. 6, 1) ❑ implementing Resolution ❑ Set Public Idearing Iron E!ECOMMENDED ACTION . Receive and file, FILE NUMBER The October 2015 Capital Improvement Program Summary (Exhibit 1) provides departmental activity in alignment with the stated goals of the Strategic Plan, The report includes tasks, next steps, outcomes, and percentage completed for each project. STRATEGIC PLAN ALIGNMENT, This item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement & 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 discussing public policy and setting priorities), FISCAL IMPACT There no fiscal impact associated with this item, Fre Mousavipour Executive Director Public Works Agency FM:Io Exhibit: 1. Capital Improvement Program — Executive Summary Schedule 19E-1 19E-2 x 3 8 a i 9 E g n Z 2 o fa'fnn � E G E O .2 EE c.mud E e� _s�cnE„�r�dda����gHCq<a;x `uM Al� .Y°„ E E " $° A 2 E u S N 9. me 3 3 a a m` o` u 8 u m F G a 5 3 EXHIBIT 1 19E-3 u u W d u u u a a a> a 9 E g n Z 2 o fa'fnn � E G E O .2 EE c.mud E e� _s�cnE„�r�dda����gHCq<a;x `uM Al� .Y°„ E E " $° A 2 E u S N 9. me 3 3 a a m` o` u 8 u m F G a 5 3 EXHIBIT 1 19E-3 u u 3 19E-4 d......eg.ang 5 5 5 g a a� 5 5�� 5� 59iN 9 9 9� wu� r ww w ., N n n ' n n n n ' n ' n y X X 9 9;' 'w 'd n m E E E � - E m vca E °• $ P E a c; a a A E E 'OE .i i mo i E E no E2v� 3« xm2^«� .OE 2 3u G=E g E E c N.°Nc-° N« P.S n E m} E E F z a o c°�na E Eg o ac o a c° c atil v t c xg m m ._ m: E �' E E 19E-4 5 19E-5 8 O O Op Op O S O O O O O O O O O O S p S B S S H E S S g S g S� tl fpS p p S S O S S g S N S P Sp N Sp SS ti N O 4 O S p pp m S M W S N O N S O S S S1VV S �O p p S , 1 � NNNM N'✓�N N N N NN C� N N N NNNAj �.jNN µ C C g g E� 'a C C � a «a co_ E E E W 2 w E —$ « 2 u E d E 'G -a . 9 E E« r e x i 3 E a o y n y y _ o c °c a= r r .a iy 9 q d 6 �RLLm54 °3 ocS�$i 1Novi a"IR o rag 0 �9�oaaaac drD �iiii� m v g N N a 19E-5 3 ° I ° j as j i of a i s c I _ j x i w m va ii � I I J NI I j I I U of to 3 U Q 3 ZI— w 5 o> c R 3 I I N U w I i X m0 00 w H "1 .-.� •. a0= n-aE O H a 88 a88888888888888$S88o8 S'�a < a c�"sgggg �esasa$�m�msa�' IS N N g m N O m 1; 'Pp ry ti P g N ri O g N N g O N N I OIVV V. Q Z N�NANN Nmq`N NN mOMNNN NNNN m'NNNN V. c W � NN N NNN N m I I ow ~ rl W K ssTi?WR a3R, Via, Im aaa�f�aaF I� a � e s (Tx0 A c- °tea i u i .V. E3 E.c.'�2 n A a«` m.y cN A N 3�1 C:q"W d E E 2 m j A r 3 z LL a� n c is zg t`v�o. gE'3��3�"s��aas z - ----- - 19E-6 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: AWARD A CONTRACT TO PROCESS SOLUTIONS, INC., FOR SODIUM HYPOCHLORITE GENERATION UNITS (SPEC. NO. 15-081) (STRATEGIC PLAN NO. 6, 1C) CITY MANAGE A;K41&k1d;1r 4 • CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Award a contract to Process Solutions, Inc,, subject to nonsubstantive changes approved by the City Manager and the City Attorney, for the purchase and Installation of sodium hypochlorite generation units, for a three-year period expiring October 31, 2018, with provisions for two 1 -year renewals exercisable by the City Manager, in an annual amount not to exceed $600,000, for a total amount not to exceed $3,000,000, including all approved renewals. The Public Works Water Resources Division is committed to providing a state-of-the-art water production system that provides high quality drinking water at a superior level of service to all City customers. Sodium hypochlorite generation units disinfect drinking wafter for public health and safety. Updating this equipment will develop a standard for future sodium hypochlorite generation system purchases, eliminate maintenance -intensive activities to the existing units, and provide staff with training and technical support. The notice inviting bids was advertised on August 6, 2015, on the City's online bid management and publication system, A summary of the bid Invitations and bids received is as follows: 00 Vendors were notified 0 Santa Ana vendors were notified 12 Vendors downloaded the bid documents 2 Rids received 1 Bid received from a Santa Ana vendor 22A-1 Contract Award for Sodium Hypochlorite Generation Units November 3, 2015 Page 2 Bids were received, opened on September 10, 2015, and evaluated. Bids results are as follows: Yendo Location Amount Process Solutions, Inc. Campbell $1,532,600 Superior Water Technologies Santa Ana $1,671,701 (with 1% vendor preference) The bid received from Process Solutions, Inc., is responsive to the specifications and meets the City's requirements. 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). Funds in the amount of $000,000 are available for expenditure In FY 2015.16 Water Production and Supply account (06017640-62300). Annual allocations of $600,000 will be budgeted for each subsequent year of the contract, including any approved renewals, 4dousFrvipour Executive Director Public Works Agency FM/NS/RR/op Francisco Gutierrez�^� Executive Director Finance & Management ;services Agency 22A-2 r 01 I ... .r • • CONTRACT -r FOR NETWORK-• • 16-076) (STRATEGIC PLAN NO, CITY V,,,� - RECOMMENDED ACTION FlTaj:Toz� Rol ❑ As Recommended ❑ As Amended ❑ Ordinance on I" Reeding El Ordinance on 2gtl Residing ❑ Implementing Resolution ❑ $at Public Hearing For CONTINUED TO FILE NUMBER 1. Reject the bid from Coast Pneumatics as nonresponsive to the specifications. 2. Award contracts for SCADA network Programmable Logic Controller programming services, subject to nonsubstantive changes approved by the City Manager and City Attorney, for a one-year period expiring October 31, 2016, with provisions for three 1 -year renewals exercisable by the City Manager, in an annual amount not to exceed $95,000, for a total maximum not to exceed $340,000, including all renewal options, with the following vendors: Vendor ACS Engineering,_ Incorporated Beavens Systems, Incorporated CPC Powertec, Incorporated Location Irvine Torrance Rancho Santa Margarita The Public Works Agency is committed to providing a state-of-the-art water production system that provides high quality drinking water at a superior level of service to all City customers. To pursue this mission, the Water Resources Division uses a Supervisory Control and Data Acquisition (SCADA) network to both monitor and automate the water production facilities. The SCADA system is comprised of technical equipment -- computers, sensors, communication devices, control panels, and servers — that operate pumps, motors, water disinfection systems, and control valves. These automated processes allow the Water Production team to operate the wells and pump stations more effectively while assisting in the reduction of overall costs. Approval of this recommended action will allow the City to retain necessary Programmable Logic Controller (PLC) programming services in support the City's water production facilities, Programming services are required to assist staff in adjusting automated operations, troubleshooting control wiring problems, and updating existing motor control center circuitry. The services in this contract Include writing and loading software, hurnan-machine interfaces, control circuit troubleshooting, and other automation -related issues, 22B-1 Contract Award for SCADA Network PLC Programming November 3, 2015 Page 2 The notice inviting bids was advertised on July 30, 2015, on the City's online bid management and publication system. A summary of the bid invitations and bids received is as follows: 128 Vendors were notified 1 Santa Ana vendor was notified 22 Vendors downloaded the bid packet 11 Bids received 0 Bids received from Santa Ana vendors Bids were opened on August 26, 2015, and evaluated (Exhibit 1). The bids received from the recommended vendors are responsive to the specifications and meet the City's requirements. Staff recommends awarding contracts to the three lowest bidders to allow for competitive quotes on future jobs. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #6 #1 (establish and maintain a Community Investme resources and technology to extend the service life investment and support a high quality of life standard) FISCAL IMPACT Community Facilities & Infrastructure, Objective nt Plan for all City assets), Strategy C (invest of existing infrastructure to protect the City's Funds in the amount of $85,000 are budgeted in the Water Production and Supply account (06017640-62300) for FY 2015-16 and, if annual options are renewed, will be budgeted in FY 2016- 2017, FY 2017-2018, and FY 2018-19, L'�- Fkedlmousavipour Executive Director Public Works Agency FM/NS/RR/sp Exhibits: 1. Abstract of Bids APPROVED AS TO FUNDS & ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency 228-2 ABSTRACT OF BIDS SCADA NETWORK PLC PROGRAMMING (15-076) BIDDER LOCATION TOTAL Beavens Systems, Inc. Torrance $23,179.86 CPC Powertec, Inc. Rancho Santa Margarita $32,274.00 ACS Engineering, Inc. Irvine $37,200.00 * $1,488.00 $35,712.00 Intuitive Automation Control Laguna Hills $39,799.75 Scada Tech Escondido $39,803.00 Delta Systems Engineering, Inc. Irvine $39,861.16 Carter Industrial Automation, Inc. Los Alamitos $48,572.00 • $1,942.88 $46,629.12 Energy Systems Engineering Bakersfield $55,454.00 Wunderlich-Malec Engineering Huntington Beach $70,095.00 Enterprise Automation Irvine $77,907.16 * $3,116.29 $74,790.87 * 4% Small Orange County Vendor Preference Exhibit 1 22B-3 22B-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: CONTRACT AWARD TO PRIMARY SYSTEMS FOR DURESS ALARM SYSTEM UPGRADE (SPEC NO. 15-109) {STRATEGIC PLAN NO. 6,2) CITY MANAGLfR RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: .IOTO¢• i ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize a one-time purchase and payment of purchase order to Primary Systems to upgrade the existing personal duress alarm system at the Santa Ana Detention Facility in an amount not to exceed $50,000, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Santa Ana Police Department utilizes a duress alarm system to assist in the protection of the detention facility's staff. Personal duress alarm transmitters are issued to each on -duty correctional officers and supervisors responsible for directly supervising inmates. The system is employed when a situation prohibits officers from utilizing their radio to request emergency assistance or they are unable to verbally request assistance due to an assault or medical emergency. The alarm transmitter alerts the Facility Control Officer of the specific location of the emergency and identifies the employee assigned to the transmitter. The current duress alarm system was installed in 1997 and has reached the end of its useful life due to outdated software and obsolete alarm transmitters. Over the past several months, the Jail's Security Electronics Technician researched the options of replacing the entire system or updating the current one. Staff's research revealed that a new system would require a complete re -wiring of the detention facility and therefore would not be cost effective relative to purchasing an upgrade of the existing system. Ascom Security Systems manufactures and owns the proprietary right to the software and wiring of the existing duress alarm system at the Santa Ana Detention Facility. Primary Systems is the exclusive distributor for Ascom Security Systems in North America. Primary Systems upgrade proposal would utilize the existing wiring and provide all new personal transmitters. Approval of the recommended action will deliver a more reliable personal duress alarm system with improved performance and coverage at a significant cost savings. The contract award to Primary Systems includes a base price of $47,100 and a $2,900 contingency. 22C-1 Contract Award for Duress Alarm System Upgrade November 3, 2015 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #6 Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). FISCAL IMPACT Funds in the amount of $50,000 are available in FY 2015-16 Criminal Activities — Department of Justice account (02614450-62300 ). Carlos Rajas Chlef of Police Police Department RC/ds/sp APPROVED AS TO FUNDS AND ACCOUNTS: �p HS�SC 43`ILs d Francisco Gutierrez Executive Director Finance and Management Services Agency 22Ci-2 CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: NOVEMBER 3, 2015 TITLE: APPROVED OPTION AGREEMENT FOR SALE AND ❑ As Recommended SUBSEQUENT RENOVATION AND ❑ As Amended REUSE OF THE YMCA PROPERTY ❑ Ordinance on I" Reading ❑ Ordinance on 2ntl Reading {STRATEGIC PLAN NO. 3,5A) ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGE Authorize the City Manager and City Attorney to approve an Option to Purchase Agreement on behalf of the City of Santa Ana with St. Joseph Health System for the sale and subsequent renovation and reuse of the YMCA property located at 205 W. Civic Center Drive, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION The YMCA building, located at 205 West Civic Center Drive was purchased by the City in 1992 and has been vacant since that time. The building is in serious disrepair due to age, vandalism and deferred maintenance. Addressing the exterior appearance of the YMCA building and enhancing building security is one important interim measure that was accomplished shortly after the September 2014 approval of the Exclusive Negotiating Agreement (ENA) with St. Joseph Health. Since entering into the ENA, St. Joseph Health and their team of consultants have made significant progress in the following areas: 1) project economic feasibility; 2) environmental reviews; 3) entitlements; 4) historic rehabilitation requirements; 5) project budget; 6) assembling an experienced rehabilitation team; and 7) parking assessment. Guiding principles associated with the YMCA project management work of St. Joseph Health remain as follows: The City Council's stated objective to implement a strong economic development program in the Downtown which provides a linkage between the Civic Center and related professional office and nonprofit organizations. The St. Joseph team proposal to share operating revenues and expenses, lending strength to their financial proposal while ensuring the long term viability of the project. 25A-1 YMCA Option Agreement November 3, 2015 Page 2 St. Joseph Health operating a wellness center onsite and Taller San Jose being a tenant of the building, thereby providing a more secure venue than a speculative commercial development. The St. Joseph team proposing to complete the project within three years. City staff and the developer have worked diligently over the past year to negotiate a strong agreement that comprehensively takes into account all of the project deal points. There remain three areas where additional work remains necessary including: 1) resolution of title issues identified subsequent to the approval of the ENA; 2) resolution of easement issues associated with the adjacent parking structure; and 3) environmental remediation of the building. Given the progress that has occurred during the term of the ENA, staff is recommending that the City enter into an option agreement to sell the former YMCA building to St. Joseph Health, subject to certain conditions. It is anticipated that this option agreement will lead to a separate development agreement being brought before the City Council for final consideration within one year's time. It should also be noted that as a direct result of the St. Joseph team's environmental studies, staff anticipates requesting separate City Council action in the near future to remediate the environmental hazards present in the YMCA building. The Santa Ana Public Works Agency with the assistace of an environmental consultant is in the process of determining the final scope of the project and preparing the necessary documents. The YMCA environmental clean-up project is expected to be sent out to bid in early 2016. 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 (City and non -City owned) for new development that will create new jobs and expand the City's tax base). FISCAL IMPACT There is no fiscal impact associated with this action. wi-,V Kelly Reender Executive Direc or Community Development Agency KR/SK/II Exhibit: 1. Option Agreement 25A-2 PURCHASE OPTION AGREEMENT THIS PURCHASE OPTION AGREEMENT (this "Agreement"), made as of November [], 2015 (the "Effective Date"), by and between the City of Santa Ana, a public body, corporate and politic ("Optionor"), and St. Joseph Health System, a California nonprofit public benefit corporation ("Optionee"). As used herein, Optionee and Optionor may be referred to collectively as the "Parties", and each individually as a "Party." RECITALS A. Optionor is the fee simple owner of that certain land consisting of approximately 1.01 acres, located at 205 West Civic Center Drive, Santa Ana, California described in Exhibit A attached to this Agreement and incorporated into this Agreement in its entirety by this reference (the "Land"). B. The Parties entered into that certain Exclusive Right to Negotiate Agreement, dated September 17, 2014, as amended, regarding the Property (as defined below). C. The Property is in need of Remediation Work (as defined below). D. Optionor is commencing the Remediation Work which is anticipated to be completed on or before December 31, 2016. E. Optionee has proposed the development of the Property as multipurpose wellness center, (the "Project"). F. The development of the Project on the Property will be of benefit to Optionor and community by reducing blight, increasing the economic viability of the community, and providing needed health and community services to the residents of Santa Ana, California. G. Optionee desires to acquire and Optionor desires to grant to Optionee the sole and exclusive right to purchase, without being obligated to purchase, the Property (as defined below), subject to the terns of this Agreement. AGREEMENT NOW THEREFORE, in consideration of Ten and no/100 Dollars ($10.00) (the "Option Fee"), the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 1. Incorporation of Recitals. The recitals of fact set forth above are true and correct and are incorporated into this Agreement in their entirety by this reference. 2. Grant of Option. Optionor hereby grants to Optionee the sole and exclusive right to purchase, upon the terms and conditions set forth in this Agreement (the "Option"), the following property (collectively, the "Property"): (a) the Land, together with all improvements ("Improvements"), as such improvements may be altered in comiection with the Remediation Work (as defined below). located thereon (collectively, the "Real Property"); (b) all of Optionor's right, title and interest in all tangible personal property owned by Optionor located upon, attached to, or necessary for the operation of the Real Property (collectively, the "Tangible Personal Property"), to the extent the delivery of such Tangible Personal Property is accepted, in writing by Optionee; and (c) all of Optionor's right, title and interest in all intangible 1 51528687.8 25A-3 personal property related to the Real Property and the Improvements (collectively, the "Intangible Personal Property") to the extent the delivery of such, Intangible Personal Property is accepted, in writing by Optionee. The Option Fee is non-refundable but shall be applied to the Purchase Price (as defined below), if any, on the date of Closing (as defined below), if any. 3. Rernediation Work. 3.1. Within sixty (60) days after the full execution of this Agreement, Optionor will deliver to Optionee, for Optionee's review a Remediation Work plan (as mutually agreed by the Parties as provided in this Agreement, the "Remediation Work Plan"). Within forty-five (45) days after Optionor delivers to Optionee the Remediation Work Plan, Optionee will advise Optionor in writing of Optionee's comments, suggestions and requirements therefor. If applicable, within fifteen (15) days after Optionee advises Optionor of Optionee's comments, suggestions and requirements for the Remediation Work Plan, Optionor will submit to Optionee, for Optionee's review a revised Remediation Work Plan. The procedures of set forth above shall continue until the Parties mutually agree upon a Remediation Work Plan or until a Party provides notice to the other that a Remediation Work Plan cannot be agreed (a "Remediation Work Plan Termination Notice"). In the event that either party delivers a Remediation Work Plan Termination Notice, either this Agreement shall terminate and the Parties shall have no further rights or obligations under this Agreement, except for rights and obligations which, by their terms, survive the termination of this Agreement, or the Party receiving the Termination Notice may accept, in writing, the last Remediation Work Plan submitted by the Terminating Party. Upon the mutual agreement of a Remediation Work Plan, neither party shall have the right to deliver a Remediation Work Plan Termination Notice. 3.2. Within fifteen (15) days after a Remediation Work Plan has been mutually agreed by the Parties, Optionor shall, at its sole cost and expense, promptly begin and thereafter diligently prosecute to completion all steps required to complete all Remediation Work (defined below) pursuant to the Remediation Work Plan. Optionor shall use its best efforts to Substantially Complete the Remediation Work not later than December 31, 2016. Upon Substantial Completion of the Remediation Work, Optionor will deliver to Optionee notice that it has substantially performed all of the Remediation Work, other than minor items and adjustments which do not materially interfere with Optionor's use of the ("Notice of Substantial Completion"). Within fifteen (15) days after Optionor delivers to Optionee the Notice of Substantial Completion, Optionor and Optionee will conduct a walk-through inspection of the Property. Within fifteen (15) days after the walk-through inspection of the Premises, Optionee shall provide to Optionor a written punch -list specifying those items which Optionee requires to be completed, are defective, incomplete, or do not conform to the Remediation Work or any applicable laws, which items Optionor will thereafter diligently complete or Optioner shall provide, within seven (7) days, notice to Optionee of Optioner's intent to not complete any or all of Optionee's identified items. If Optionor chooses not to perform the Optionee identified items, Optionee may terminate this Agreement and the Parties shall have not further rights or obligations under this Agreement. Optionor acknowledges and agrees that time is of the essence with respect to the completion of the Remediation Work. 3.3. Subject to the development of the Remediation Work Plan, "Remediation Work" may include, all investigation, sampling, monitoring, testing, reporting, removal (including, excavation, transportation and disposal), response, storage, remediation, treatment and other activities or other remedial action as defined under Section 101(25) of CERCLA (as defined 2 5152868'.8 25A-4 below), and similar actions with respect to Hazardous Materials (as defined below) as defined under comparable state and local laws, and any other cleanup, removal, containment, abaternent, recycling, transfer, monitoring, storage, treatment, disposal, closure, restoration or other mitigation or remediation of Hazardous Materials or releases required by any environmental agency or within the purview of any Environmental Laws. "Hazardous Materials" means any and all substances, materials and wastes which are regulated as hazardous or toxic under applicable local, state or federal law or which are classified as hazardous or toxic under local, state or federal laws or regulations, including, without limitation, (i) those substances included within the definitions of "hazardous substances," "hazardous materials," "toxic substances," "solid waste," "pollutant" or "contaminant" as such terms are defined by or listed in the Comprehensive Environmental Response Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.) ("CERCLA"), as amended by Superfund Amendments and Reauthorization Act of 1986 (Pub. L. 99-499 100 Stat. 1613) ("SARA"), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.) ("RCRA"), the Toxic Substance Control Act (15 U.S.C. § 2601 et seq.), the Federal Insecticide, Fungicide and Rodenticide Control Act (7 U.S.C. § 136 et seq.), the Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.), the Emergency Planning and Community Right to Know Act of 1986 (42 U.S.C. § 11001 et seq.), the Hazardous and Solid Waste Amendments of 1984 (Public Law 86-616 Nov. 9, 1984), the Federal Clean Air Act (42 U.S.C. § 7401 et seq.), and in the regulations promulgated pursuant to such laws, all as amended, (ii) those substances listed in the United States Department of Transportation Table (49 CFR 172.101) or 40 CFR Part 302, both as amended, and (iii) any material, waste or substance which is (A) oil, gas or any petroleum or petroleum by-product, (B) asbestos, in any form, (C) polychlorinated biphenyls, (D) designated as a "hazardous substance" pursuant to Section 311 of the Clean Water Act (33 U.S.C. § 1251 et seq.), as amended, (E) flammable explosives, or (F) radioactive materials (collectively, "Environmental Laws"). "Environmental Conditions" shall mean the presence upon the Property of any Hazardous Materials, or condition on the Property giving rise to any required action to be taken by any governmental body or agency in relation to any Hazardous Materials or Environmental Laws. 3.4. Optionor shall not place, or allow to be placed, on its interests in the Property, Improvements, or any portion thereof, any mortgage or encumbrance of lien. Optionor shall, within thirty (30) calendar days following receipt of notice thereof, cause to be removed or bonded against (such bonding to be by the provision of bonds satisfying California statutory requirements) any and all mechanic's liens, stop notices and/or bonded stop notices that are recorded and/or served by contractors, subcontractors (of all tiers) and suppliers in connection with the portion of the Property. 4. Optionor Conditions Precedent 4.1. Not later than January 15, 2016, Optionee will deliver to Optionor, for Optionor's review a Project development plan (as mutually agreed by the Parties as provided in this Agreement, the "Development Plan"). Within thirty (30) days after Optionee delivers to Optionor the Development Plan, Optionor will advise Optionee in writing of Optionor's comments, suggestions and requirements therefor. If applicable, within fifteen (15) days after Optionor advises Optionce of Optionor's comments, suggestions and requirements for the Development Work Plan, Optionee will submit to Optionor, for Optionor's review a revised Development Plan. The procedures of set forth above shall continue until the Parties mutually 3 51528687.8 25A-5 agree upon a Development Plan or until a Party provides notice to the other that a Development Plan cannot be agreed (a "Development Plan Termination Notice"). In the event that either party delivers a Development Plan Termination Notice, this Agreement shall terminate and the Parties shall have no further rights or obligations under this Agreement, except for rights and obligations which, by their terms, survive the termination of this Agreement. Upon the mutual agreement of a Development Plan, neither party shall have the right to deliver a Development Plan Tennination Notice. 4.2. Beginning not later than the Effective Date, Optionor shall, at its sole cost and expense, promptly begin and thereafter diligently prosecute to completion all steps required to complete all Conditions Precedent (defined below) to the transfer of the Property not later than December 31, 2016. Optionor acknowledges and agrees that time is of the essence with respect to the satisfaction of the Conditions Precedent of the Optionor to the transfer of the Property to Optionee. Optionor represents and warrants that the only conditions precedent of the Optionor to the transfer of the Property to Optionee are as follows (the "Conditions Precedent"): 4.2.1. Optionor has satisfied all legal requirements for disposition of the Property, including any legally required noticing or hearings, and adoption of a resolution approving the sale. 4.2.2. Optionor has completed all Remediation Work in accordance with all Environmental Laws and to Optionee's reasonable Satisfaction. 4.2.3. The final adoption, approval or certification of all documentation required for the Project under the California Environmental Quality Act, Public Resources Code Sections 21000, et seq. ("CEQA") and the period for challenge of such CEQA Approval has passed. 4.2.4. The City planning commission finds, pursuant to Government Code Section 65402, that the Project is consistent with the City's General Plan. 4.2.5. Optionor has taken all steps, at Optionor's sole expense, to remove any encroachments affecting the Property. 4.2.6. Optionor has obtained a mutually agreeable Disposition Agreement (as defined below). 4.2.7. The Parties have mutually agreed upon a Development Plan 4.3. Upon completion of the Conditions Precedent, Optionor shall deliver to Optionee evidence of satisfaction of the same (`Notice of Satisfaction of Conditions Precedent"). In the event that Optionor does not complete the Conditions Precedent described in Sections 4.2.1 through and including 4.2.4 on or prior to December 31, 2016, the same shall be an Optionor Breach (as defined below) an subjection to the provisions of Section 24 of this Agreement. In the event that Optionor does not complete the Conditions Precedent described in Sections 4.2.5 on or prior to December 31, 2017, the same shall be an Optionor Breach and subject to the provisions of Section 24 of this Agreement. Upon Optionee's receipt of a Notice of Satisfaction of Conditions Precedent, Optionee shall have no have the right to terminate this Agreement pursuant to this Section 4.3. 5. Option Period; Exercise of Option; Conditions Precedent. The Option shall commence on the Effective Date and will remain in effect until 11:59 p.m., Los Angeles time, on the date 4 51528687.8 25A-6 that is one hundred eighty (180) days following receipt by Optionee of a Notice of Satisfaction of Conditions Precedent (the "Option Period"). Optionee may exercise the Option during the Option Period by delivering to Optionor an executed instrument substantially in the form attached to this Agreement and incorporated herein by reference as Exhibit B ("Option Exercise Notice"). 6. Purchase Price; Terns of Purchase. The purchase of the Property pursuant to the Option will be consummated pursuant to a commercially reasonable development and disposition agreement in a form reasonably acceptable to Optionee and Optionor (the "Disposition Agreement") which Disposition Agreement shall contain the Optionee's commitment to develop the Property consistent with the Project, the Development Plan, and those development covenants, operating covenants and associated restrictions agreed to by the Parties therein. The purchase price ("Purchase Price") for the Property shall be the fair market value on the date of receipt of the Option Exercise Notice. Sixty (60) days prior to any exercise of the option by Optionee, upon notice by Optionee thereof to Optionor (i) the Parties shall nominate and appoint a single appraiser, or, failing that, (ii) the Optionee and Optionor shall each nominate and appoint one appraiser. If two appraisers are appointed as provided in clause (ii) above, the two appraisers so appointed shall, within fifteen (15) days after the appointment of the second appraiser and before exchanging views as to the questions at issue, appoint a third appraiser and give written notice of such appointment to the Parties. In the event that a Party fails to appoint an appraiser within the twenty two (22) day period specified above, then the appraiser appointed by the other Party shall make the appraisal. If the two appraisers selected by the Parties shall fail to appoint or agree upon the third appraiser within the fifteen (15) day period specified above, then a third appraiser may be selected by the Parties if they can agree upon such third appraiser within a further period of ten (10) additional days; otherwise, any Party may apply to any federal or state court of or sitting in the State of California having jurisdiction for the appointment of any appraiser not appointed or agreed upon within the time periods herein provided. The appraisers selected pursuant hereto shall be sworn faithfully and fairly to determine expeditiously the fair market value. The three appraisers (or the one or two appraisers, if only one or two appraisers are appointed) shall, with all possible speed, make the appraisal contemplated herein, set forth their (or its) results in writing, and give notice of the same to the Parties. If two of the three appraisers shall render a concurring deternination, then that concurring determination shall be conclusive and binding on the Parties. If no two of the three appraisers shall render a concurring determination, then the determination of the third appraiser appointed by the two appraisers appointed by the Parties shall be conclusive and binding upon the Parties; except that if the determination of the third appraiser shall be lower than the lowest determination of the other two appraisers, or higher than the highest determination of the other two appraisers, the final deternination shall be the median determination of the three appraisers. Each Party shall pay the fees and expenses of the appraiser selected by or on behalf of it and the fees and expenses of the third appraiser, and any general expenses incurred by the appraisers in connection with the appraisal, shall be home equally between the Parties. Any appraiser appointed hereunder shall be an appraiser with at least five (5) years' experience in appraising property of the same type as the Property. 7. Due Diligence; Inspections. 7.1. Within ten (10) days following the Effective Date, and from time to time thereafter upon receipt of the same, Optionor shall provide or make available to Optionee copies 5 51528687.8 25A-7 of all existing documents, agreements, contracts, leases, reports, studies, drawings and/or plans relating to the operations and physical condition of the Property in Optionor's possession, including without limitation engineering studies, surveys, energy reports, soils reports, geotechnical reports, traffic studies, leases, governmental correspondence, environmental reports, planning consultant reports, and plans and specifications (the "Due Diligence Materials"). 7.2. Optionor hereby grants Optionee and its agents, consultants, contractors, subcontractors, employees, representatives, and attorneys (collectively, "Optionee's Agents") a license and permission to enter upon, over, under and/or across the Property in order to conduct visual inspections, physical testing, air samplings, borings, and other samplings, including but not limited to, observing and documenting the Property's as -built conditions, exposing and documenting hidden conditions at the Property, by limited removal of interior non -historic fixtures and finishes, performing certain non-destructive testing of materials at the Property, extracting concrete core samples in interior non -historically sensitive locations, in connection with the proposed rehabilitation and reuse of the Property (the "Inspections"). The Inspections shall be completed at Optionee's sole cost and expense. Optionee or Optionee's Agent shall contact Optionor within one (1) day prior to the time of actual entry onto the Property and provide notice of the date and time when entry will be made. Optionor may refuse access to Optionee if the Remediation Work makes it unsafe or inappropriate, in Optionor's reasonable discretion, for Optionee or Optionee's Agents to be on the Property at the desired time. Optionor shall make the Property available as soon as reasonably practical thereafter. The license and permission to enter upon, over, under and/or across the Property shall commence on the Effective Date and shall expire upon termination of this Agreement. 7.3. Prior to entry onto the Property, Optionee shall secure, and shall require its contractors, if any, to secure an insurance policy or policies, as described below. 7.3.1. Notwithstanding any inconsistent statement in the insurance policy or any subsequent endorsement attached thereto, the protection afforded by these policies shall be written on an occurrence basis in which Optionor, and its respective elected and appointed officials, officers, employees, agents and representatives (together, "Additional Insureds") are named as additional insureds on all coverage, except for workers' compensation coverage, and shall (on or prior to the Effective Date, Optionee shall provide to Optionee the complete legal names of all Additional Insureds): (a) Name Additional Insureds as additional insureds on a Commercial General Liability policy; (b) Provide a combined single limit of broad form commercial general liability insurance in the amount of Two Million Dollars ($2,000,000) per occurrence, which will be considered equivalent to the required minimum limits, and such insurance shall (i) be written on an occurrence form, (ii) be written with a primary policy form with limits of not less than $1,000,000 per occurrence; (iii) be written with one or more excess layers to bring the total of primary and excess coverage limits to not less than $2,000,000 per occurrence, (iv) not be written with a deductible greater than $25,000 per occurrence, (v) contain a waiver of subrogation in favor of Optionor; 6 51528687.8 25A-8 (c) Provide automobile liability insurance for owned, non -owned, and hired vehicles, as applicable to, or for any use related to, the Work, in an amount not less than One Million Dollars ($1,000,000) combined single limit, with excess insurance coverage to bring the total amount of automobile liability insurance coverage to an amount not less than Two Million Dollars ($2,000,000) per accident for bodily injury and property damage; 7.3.2. Optionee shall notify Optionor not less than thirty (30) days before any expiration, cancellation, or non -renewal of such policy or policies; and 7.3.3. Optionee shall famish certificates of insurance and endorsements to Optionor prior to entry onto the Property pursuant to this Section. 7.3.4. Optionee shall comply with Sections 3700 and 3800 of the Labor Code by securing, paying for and maintaining in full force and effect during the Term, and continuing prior to entry onto the Property pursuant to this Section, with the earlier to occur of expiration of the Term complete workers' compensation insurance, to statutory limits, with employer's liability limits not less than One Million Dollars ($1,000,000) per occurrence, and shall furnish a Certificate of Insurance to Optionor prior to entry onto the Property pursuant to this Section, before the commencement of Work. All Additional Insureds shall not be responsible for any claims in law or equity occasioned by the failure of Optionee to comply with this section. Every workers' compensation insurance policy shall bear an endorsement or shall have attached a rider providing that, in the event of expiration or proposed cancellation of such policy for any reason whatsoever, Optionor shall be notified, giving Optionee a sufficient time to comply with applicable law, but in no event less than thirty (30) days before such expiration, cancellation, or reduction in coverage is effective or in the event of nonpayment of premium. 7.3.5. Should any of the required insurance coverage required be written with an annual aggregate such aggregate shall be disclosed in writing to Optionor. 7.3.6. If Optionee fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish Optionor with required proof that insurance has been procured and is in force and paid for, Optionor shall have the right, at its election, to forthwith tenninate this the right of entry provided in this Section. 7.3.7. Notwithstanding any requirements contained in this Section, Optionee shall have the right to satisfy its insurance obligations under this Agreement by means of self-insurance. Self-insurance shall mean that Optionee itself is acting as though it were the third -party insurer providing the insurance required under the provisions of this Agreement, and Optionee shall pay any amounts due in lieu of insurance proceeds because of self-insurance, which amounts shall be treated as insurance proceeds for all purposes under this Agreement. To the extent Optionee chooses to provide any required insurance by self-insurance, the protection afforded Optionor and the applicable properties shall be the same as if provided by a third -party insurer under the coverages required by this Agreement. In the event that Optionee elects to self -insure and an event or claim occurs for 7 51528687.8 25A-9 which a defense and/or coverage would have been available from a third -party insurer, Optionee shall undertake the defense of any such claim, including a defense of Optionor, at Optionee's sole cost and expense to pay any claim or replace any property or otherwise provide the funding that would have been available from insurance proceeds. 7.4. Optionee shall not pen -nit any mechanics', materialmen's or other liens of any kind or nature ("Liens") to be filed or enforced against the Property. Optionor reserves the right, at its sole cost and expense, at any time and from time to time, to post and maintain on the Property, or any portion thereof, or on the improvements on the Property, any notices of non - responsibility or other notice as may be desirable to protect Optionor against liability. In addition to, and not as a limitation of Optionor's other rights and remedies under this Section, should Optionee fail, within thirty (30) days of written request from Optionor, either to discharge any Lien (to the extent such Lien is prohibited pursuant to this Section) or to bond for any Lien (to the extent such Lien is prohibited pursuant to this Section), or to defend, indemnify, and hold harmless Optionor from and against any loss, damage, injury, liability or claim arising out of a Lien (to the extent such Lien is prohibited pursuant to this Section), then Optionor, at its option, may elect to pay such Lien, or settle or discharge such Lien and any action or judgment related thereto and all costs, expenses and attorneys' fees incurred in doing so shall be paid to Optionor, as applicable, by Optionee upon written demand. 8. Compliance; Property Maintenance and O erp ation. From the Effective Date, Optionor agrees to act in respect of the Property in the following manner: 8.1. Optionor agrees that it will not enter into any leases, licenses or other occupancy permits for the Property without the prior written consent of Optionee in each instance, which consent shall not be unreasonable withheld, conditioned or delayed. 8.2. Optionor will timely perform its obligations under any service contracts affecting the Property in accordance with the terns and conditions contained therein. Optionor agrees that it will not enter into amend or terminate any service contracts affecting the Property without the prior written consent of Optionee in each instance, which consent shall not be unreasonable withheld, conditioned or delayed. 8.3. Optionor will not enter into any contract or agreement that will be an obligation affecting the Property except for contracts entered into in the ordinary course of business that are tenninable without cause and without payment of a fee or penalty on not more than thirty (30) days' notice. 8.4. Optionor will continue to operate and maintain the Property in accordance with past practices and, except as agreed in the Remediation Work Plan, will not make any material alterations or changes thereto. Optionor will not remove any Tangible 'Personal Property except as may be required for necessary repair or replacement, and replacement shall be of approximately equal quality and quantity as the removed item of Tangible Personal Property. 8.5. Optionor shall not do anything, nor authorize anything to be done, which would adversely affect the condition of title of the Property. 9. Optionor's Representations and Warranties. Optionor hereby represents and warrants to Optionee that, as of the Effective Date: s 51528687.8 25A-1 0 9.1. Optionor is a municipal corporation incorporated within and existing pursuant to the laws of the State of California. 9.2. Optionor has (or will have prior to the date by which a particular step is required to be taken or performance of a particular obligation is required to be commenced pursuant to this Agreement) all requisite power and authority required to enter into this Agreement and the instruments referenced in this Agreement, to consummate the transaction contemplated hereby and to take any steps contemplated thereby or hereby, and to perform its obligations hereunder and thereunder. 9.3. Optionor has obtained (or will have obtained prior to the date by which a particular step is required to be taken or performance of a particular obligation is required to be commenced pursuant to this Agreement) all required consents in connection with entering into this Agreement and the instruments and documents referenced in this Agreement to which Optionor is or shall be a party and the consummation of the transactions contemplated hereby. 9.4. The individual executing this Agreement and the individual that will execute the instruments referenced in this Agreement on behalf of Optionor have, or will have upon execution thereof, the legal power, right and actual authority to bind Optionor to the terms and conditions hereof and thereof. 9.5. This Agreement is duly authorized, executed and delivered by Optionor and all documents required in this Agreement to be executed by Optionor pursuant to this Agreement shall be, at such time as they are required to be executed by Optionor, duly authorized, executed and delivered by Optionor and are or shall be, at such time as the same are required to be executed hereunder, valid, legally binding obligations of and enforceable against Optionor in accordance with their terms, except as enforceability may be limited by bankruptcy laws or other similar laws affecting creditors' rights. 9.6. Neither the execution or delivery of this Agreement or the documents referenced in this Agreement, nor the incurring of the obligations set forth in this Agreement, and the certificates, declarations and other documents referenced in this Agreement, nor the consummation of the transactions in this Agreement contemplated, nor compliance with the terms of this Agreement and the documents referenced in this Agreement, will violate any provision of law, any order of any court or governmental authority or conflict with or result in the breach of any terms, conditions, or provisions of, or constitute a default under any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreements or instruments to which Optionor is a parry or which affect any of the Property or the transactions contemplated by this Agreement. 9.7. Other than as disclosed by Optionor to Optionee in writing, there are no legal proceedings either pending or, to the knowledge of the Optionor Representatives, threatened, to which Optionor is or may be made a party, or to which the Property, is or may become subject or which could reasonably affect the ability of Optionor to carry out its obligations hereunder or which would affect the Property. 9.8. Optionor holds, and can cause the conveyance of, fee title to the Property. The transfer of the Property is not subject to any right of first refusal or similar purchase or other options. 9 51528687.8 25A-1 1 9.9. There are no brokerage fee, cormnission, or finders' fee is payable to any person or entity in connection with the transaction contemplated by this Agreement ("Commissions"). Optionor shall promptly advise Optionee in writing if Optionor becomes aware that any representation or warranty made by Optionor is or becomes untrue in any material respect prior to any Close of Escrow. Optionors' representations and warranties set forth in this Section shall be deemed to be restated at consummation of any purchase contemplated in this Agreement and shall survive any such purchase and shall not be merged with any deed. 10. Optionee's Representations and Warranties. Optionee hereby represents and warrants to Optionor that, as of the Effective Date: 10.1. Optionee has all requisite corporate power and authority to execute and deliver, and to perform all its obligations under, this Agreement. Optionee is duly organized, validly existing and in good standing under the laws of the state of its formation, with fall power to enter into this Agreement. 10.2. Optionee has (or will have prior to the date by which a particular step is required to be taken or performance of a particular obligation is required to be commenced pursuant to this Agreement) all requisite power and authority required to enter into this Agreement and the instruments referenced in this Agreement, to consurmnate the transaction contemplated hereby and to take any steps contemplated thereby or hereby, and to perform its obligations hereunder and thereunder. 10.3. Optionee has obtained (or will have obtained prior to the date by which a particular step is required to be taken or performance of a particular obligation is required to be commenced pursuant to this Agreement) all required consents in connection with entering into this Agreement and the instruments and documents referenced in this Agreement to which Optionee is or shall be a party and the consurnmation of the transactions contemplated hereby. 10.4. The individual executing this Agreement and the individual that will execute the instruments referenced in this Agreement on behalf of Optionee have, or will have upon execution thereof, the legal power, right and actual authority to bind Optionee to the terms and conditions hereof and thereof. 10.5. This Agreement is duly authorized, executed and delivered by Optionee and all documents required in this Agreement to be executed by Optionee pursuant to this Agreement shall be, at such time as they are required to be executed by Optionee, duly authorized, executed and delivered by Optionee and are or shall be, at such time as the same are required to be executed hereunder, valid, legally binding obligations of and enforceable against Optionee in accordance with their terms, except as enforceability may be limited by bankruptcy laws or other similar laws affecting creditors' rights. 10.6. Neither the execution or delivery of this Agreement or the documents referenced in this Agreement, nor the incurring of the obligations set forth in this Agreement, and the certificates, declarations and other documents referenced in this Agreement, nor the consummation of the transactions in this Agreement contemplated, nor compliance with the terms of this Agreement and the documents referenced in this Agreement, will violate any provision of law, any order of any court or governmental authority or conflict with or result in the breach of any terms, conditions, or provisions of, or constitute a default under any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, to 51528687.8 25A-1 2 partnership agreement, lease or other agreements or instruments to which Optionee is a party or which affect any of the Property or the transactions contemplated by this Agreement. 10.7. Other than as disclosed by Optionor in writing to Optionee, there are no legal proceedings either pending or, to the knowledge of the Optionee Representatives, threatened, to which Optionee is or may be made a party, or to which the Property, is or may become subject or which could reasonably affect the ability of Optionee to carry out its obligations hereunder or which would affect the Property. Optionee shall promptly advise Optionee in writing if Optionee becomes aware that any representation or warranty made by Optionee is or becomes untrue in any material respect prior to any Close of Escrow. Optionee's representations and warranties set forth in this Section shall be deemed to be restated at consummation of any purchase contemplated in this Agreement and shall survive any such purchase. 11. Destruction/Condemnation of Property: Other Notices. In the event that all or any portion of the Land or Improvements is damaged or destroyed by any casualty or is subject to a taking or condemnation under the provisions of applicable law after the Effective Date but prior to the date of Closing, Optionor shall give Optionee immediate written notice of the same. Optionor shall promptly notify Optionee of any building code violation notices or actions pending, and of any event that causes the representation of Optionor under this Agreement to no longer be true or correct. 12. Notices. Any notice, request, demand, instruction or other document required or permitted to be given or served hereunder or under any document or instrument executed pursuant hereto will be in writing and will be delivered personally or sent by United States registered or certified mail, return receipt requested, postage prepaid or by overnight express courier, postage prepaid and addressed to the parties at their perspective addresses set forth below, and the same will be effective upon receipt if delivered personally or via overnight express courier or on the third Business Day after deposit if mailed. A party may change its address for receipt of notices by service of a notice to such change in accordance herewith. If to Optionee: St. Joseph Health System 3345 Michelson Drive, Suite 100 Irvine, California 92612 Attn: Annette Walker with a copy to: St. Joseph Health System 3345 Michelson Drive, Suite 100 Irvine, California 92612 Attn: General Counsel If to Optionor: Atm.: with a copy to: t1. 51528687.8 25A-1 3 Attn.: 13. Memorandum of Agreement. At Optionee's request, Optionor shall execute a memorandum of this Agreement in a form satisfactory to Optionee and Optionee may record such memorandum in the real estate records of the County in which the Real Property is located. 14. Assi mgmment. Optionor may not assign its interest in this Agreement, or any of its rights or obligations hereunder, without the prior written consent of Optionee, which shall not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing paragraph, Optionee may, without the prior written consent of Optionor assign its interest in this Agreement, or any of its rights or obligations hereunder to a Permitted Transferee (as defined below). As used herein, the teen "Permitted Transferee" means (a) any affiliate of Optionee, being a person or entity who, directly or indirectly, controls, is controlled by, or is under common control with, Optionee, including any partner, member, stockholder or other equity holder of Optionee (for purposes of this definition, "control" shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of Optionee, whether through ownership of voting securities, membership, partnership or other ownership interests, by contract or otherwise; and the terns "controlling" and "controlled" shall have correlative meanings); or (b) a successor related to Optionee by merger, consolidation, non -bankruptcy reorganization or government action. No transfer or assignment in violation of the provisions hereof shall be valid or enforceable. Subject to the foregoing, this Agreement and the terms and provisions hereof shall inure to the benefit of and shall be binding upon the successors and assigns of the parties. 15. Further Instruments. Each Party will, whenever and as often as it shall be reasonably requested to do so by the other, cause to be executed, acknowledged or delivered any and all such further instruments and docurnents as may be necessary or proper, in the reasonable opinion of the requesting party, in order to carry out the intent and purpose of this Agreement. 16. Calculation of Time Periods; Business Day; Time of Essence. Unless otherwise specified, in computing any period of time described herein, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is not a Business Day, in which event the period shall run until the end of the next day which is a Business Day. The last day of any period of time described herein shall be deemed to end at 5:00 p.m. local time in the state in which the Real Property is located. As used herein, the term "Business bay" means any day that is not a Saturday, Sunday or legal holiday for national banks in the city in which the Real Property is located. Subject to the foregoing provisions, time is of the essence of this Agreement. 17. Entire Agreement; Amendments. This Agreement (including the documents delivered pursuant to this Agreement), constitutes the entire agreement of the Parties pertaining to the subject matter of this Agreement and supersedes all prior agreements or letters of intent of the Parties. This Agreement may not be amended, modified, or supplemented except by a written instrument signed by azi authorized representative of each of the Parties. 12 51528687.8 25A-14 18. Binding Effect; Enforcement. The covenants, agreements, representations, and warranties contained herein will be binding upon, be enforceable by and inure to the benefit of the representatives, successors, and permitted assigns of the respective parties hereto. 19. Applicable Law. This Agreement will be construed and interpreted wider, and governed and enforced according to, the laws of the State of California applicable to contracts made and to be performed entirely therein. 20. Counterparts. This Agreement may be executed in any number of counterparts and by different Parties to this Agreement in separate counterparts, each of which when so executed and delivered will be deemed original, but all such counterparts, together, will constitute but one and the same instrument. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This Agreement will become effective upon the execution and delivery of a counterpart hereof by each Party to this Agreement. A signature of a Party to this Agreement sent by facsimile, electronic mail (including a scanned portable document format copy sent by electronic mail), or other electronic transmission will have the same force and effect as delivery of an original signature of such Party. 21. Interpretation. The paragraph and section headings in this Agreement are solely for convenience and will not be deemed to limit or otherwise affect the meaning or construction of any part of this Agreement. Any pronoun used in this Agreement will be deemed to cover all genders. The terns "include," "including," and similar terms will be construed as if followed by the phrase "without being limited to." The tern "or" has, except where otherwise indicated, the inclusive meaning represented by the phrase "and/or." The words "hereof," "herein," "hereby," "hereunder," and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision or section of this Agreement. Words in this Agreement importing the singular number will mean and include the plural number, and vice versa. 22. Severability of Provisions. Wherever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement will be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 23. Condemnation. From the Effective Date through and until the earlier of Closing or the termination of this Agreement, Optionor shall not exercise the power of eminent domain or similar powers on any portion of the Property, except to the extent required in order for Optionor to satisfy its obligations in connection with Section 4.2.6 of this Agreement. 24. Optionor's Breach. In the event of a breach by Optionor of its obligations under this Agreement that continues without cure beyond the applicable cure period, if any, or, if none, for more than thirty (30) days after Optionee shall have given Optionor written notice thereof ("Optionor Breach"), Optionee may elect to terminate this Agreement, in which event: (a) this Agreement shall terminate and the Parties shall have no further rights or obligations under this Agreement, except for rights and obligations which, by their terms, survive the termination of this Agreement; and (b) Optionor shall reimburse Optionce for Optonee's reasonable costs incurred in performing Optionee's due diligence (as provided in this Agreement), inspections of the Property (as provided in this Agreement) and design of the Project, not to exceed $50,000.00, forty-five (45) days of Optionee's notice of such termination. 13 51528687.8 25A-1 5 25. Optionee Indemnity. Subject to the teens and conditions set forth in this Section, Optionee shall indemnify, hold harmless, and defend Optionor and its officers, directors, employees, agents, affiliates, successors and permitted assigns (collectively, "Optionor Indemnified Party") against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys' fees, that are incurred by Optionor Indemnified Pa (collectively, "Optionor Losses"), arising out of any claim alleging: (i) breach or non -fulfillment of any covenant or any negligent or more culpable act or omission of Optionee or its personnel (including any reckless or willful misconduct) in connection with this Agreement, (ii) any false representation of Optionee under this Agreement; or (iii) any claim for payment of Commissions to any other person or entity claiming by, through or under Optionor. Notwithstanding anything to the contrary in this Agreement, Optionee is not obligated to indemnify, hold harmless or defend any Optionor Indemnified Party against any claim (whether direct or indirect) if such claim or corresponding Optionor Losses arise out of or result from Optionor Indemnified Party's, (a) any pre-existing facts, circumstances, liabilities for matters merely discovered by Optionee (i.e., latent environmental contamination to the extent Optionee does not materially exacerbate same following its initial discovery), (b) or Optionor Indemnified Party's and/or Optionor's agents' gross negligence or more culpable act or omissions (including recklessness or willful misconduct), or (c) Optionor Indemnified Party's bad faith failure to materially comply with any of Optionor's material obligations set forth in this Agreement. Payments by Optionee under this Section in respect of any Optionor Losses are limited to the amount of any liability or damage that remains after deducting therefrom any insurance proceeds and any indemnity, contribution or other similar payment actually received by any Optionor Indemnified Party in respect of any such indemnity claim. Any Optionor Indemnified Party shall use its best efforts to seek to recover any insurance proceeds in connection with making a claim under this Section. Promptly after the realization of any insurance proceeds, indemnity, contribution or other similar payment, any Optionor Indemnified Party shall reimburse Optionee for such reduction in Optionor Losses for which any Optionor Indemnified Party was paid under this Section before the realization of reduction of such Optionor Losses. Any Optionor Indemnified Party shall give Optionee prompt written notice (a "Claim Notice") of any Optionor Losses or discovery of facts on which any Optionor Indemnified Party intends to base a request for indemnification under this Section. Any Optionor Indemnified Party's failure to provide a Claim Notice to Optionee under this Section does not relieve Optionee of any liability that Optionee may have to any Optionor Indemnified Party, but in no event shall Optionee be liable for any Optionor Losses that result from a delay in providing a Clain Notice. Each Claim Notice must contain a description of the claim and the nature and amount of the related Optionor Losses (to the extent that the nature and amouuit of the Optionor Losses are known at the time). Any Optionor Indemnified Party shall furnish promptly to Optionee copies of all papers and official docurnents received in respect of any Optionor Losses. Optionee's duty to defend applies immediately, regardless of whether any Optionor Indemnified Party has paid any sums or incurred any detriment arising out of or relating, directly or indirectly, to any claim. Optionee may assume, at its sole option, control of the defense, appeal or settlement of any claim that is reasonably likely to give rise to an indemnification claim under this Section (an "Optionee Indemnified Claim") by sending written notice of the assumption to Optionor on or before thirty (30) days after receipt of a Claim Notice to ackriowledge responsibility for the defense of such Optionee Indemnified Claim and undertake, conduct and control, through reputable 14 51528687.8 25A-1 6 independent counsel of its own choosing (which Optionor shall find reasonably satisfactory) and at Optionee's sole cost and expense, the settlement or defense thereof. If Optionee assumes control of the defense under this Section, Optionor Indemnified Party (a) shall fully cooperate with Optionee in connection therewith; and (b) may employ, at any time, separate counsel to represent it; provided, that Optionor Indemnified Party is solely responsible for the costs and expenses of any such separate counsel. Notwithstanding anything to the contrary in this Section, Optionor Indemnified Party may defend an Optionee Indemnified Claim with counsel of its own choosing and without the Optionee's participation if: (a) the Optionee Indemnified Claim is one for which Optionor properly gave Optionee a Claim Notice under this Section, and Optionee fails to assume the defense or refuses to defend the Optionee Indemnified Claim under this Section; (b) the Optionee Indemnified Claim seeks only an injunction or other equitable relief against Optionor Indemnified Party; or (c) Optionor Indemnified Party reasonably believes: (i) that there are one or more legal or equitable defenses available to it that are different from or in addition to those available to Optionee; and (ii) counsel for Optionee could not adequately represent the interest of Optionor Indemnified Party because such interest could be in conflict with those of Optionee; or (iii) such action or proceeding involves, or could have a material effect on, any material matter beyond the scope of the indemnification or defense obligations of Optionee. If Optionor Indemnified Party assumes control of the defense under this Section, Optionee shall: (a) reimburse Optionor Indemnified Party promptly and periodically for the reasonable costs properly incurred in defending against the Optionee Indemnified Claim (including reasonable attorneys' fees and expenses); and (b) remain responsible to Optionor Indemnified Party for any Optionor Losses indemnified under this Section. Optionee shall give prompt written notice to Optionor of any proposed settlement of a Optionee Indemnified Claim. Optionee may not, without Optionor's prior written consent, which Optionor shall not unreasonably withhold, condition or delay, settle or compromise any claim or consent to the entry of any judgment regarding which indemnification is being sought hereunder unless such settlement, compromise or consent: (a) includes an unconditional release of Optionor Indennlified Party from all liability arising out of such claim; (b) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of Optionor Indemnified Party; and (c) does not contain any equitable order, judgment or term (other than the fact of payment or the amount of such payment) that in any manner affects, restrains or interferes with the business of Optionor Indemnified Party. Optionor Indemnified Party may not settle or compromise any claim or consent to the entry of any judgment regarding which it is seeking indemnification hereunder without the prior written consent of Optionee, which Optionce shall not unreasonably withhold, condition or delay, unless: (a) if the Optionee Indemnified Claim is one for which Optionor properly gave Optionee a Claim Notice under this Section, and Optionee fails to assume the defense or refuses to defend the Optionee Indemnified Claim under this Section; or (b) such settlement, compromise or consent: (i) includes an unconditional release of Optionee from all liability arising out of such claim; (ii) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of Optionee; and (iii) does not contain any equitable order, judgment or tern (other than the fact of payment or the amount of such payment) that in any manner affects, restrains or interferes with the business of Optionor Indemnified Parry. The obligations of Optionee and Optionor Indemnified Party under this Section shall survive the Closing or earlier termination of the Disposition Agreement and the expiration or earlier termination of this Agreement. 26, Optionor Indemnity. Subject to the terns and conditions set forth in this Section, 15 5152687.8 25A-1 7 Optionor shall indemnify, hold harmless, and defend Optionee and its officers, directors, employees, agents, affiliates, successors and permitted assigns (collectively, "Optionee Indemnified Party") against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys' fees, that are incurred by an Optionee Indemnified Party (collectively, "Optionee Losses"), arising out of any claim alleging, (i) any breach or non- fulfillment of any covenant or any negligent or more culpable act or omission of Optionee or its personnel (including any reckless or willful misconduct) in connection with this Agreement; (ii) any false representation of Optionor under this Agreement; (iii) the existence of any Environmental Conditions upon the Property or obligations related to such Environmental Conditions accruing prior to the Closing under the Disposition Agreement; or (iv) any claim for payment of Commissions to any other person or entity claiming by, through or under Optionor. Payments by Optionor under this Section in respect of any Optionee Losses are limited to the amount of any liability or damage that remains after deducting therefrom any insurance proceeds and any indemnity, contribution or other similar payment actually received by any Optionee Indemnified Party in respect of any such indemnity claim. Any Optionee Indemnified Party shall use its best efforts to seek to recover any insurance proceeds in connection with malting a claim under this Section. Promptly after the realization of any insurance proceeds, indemnity, contribution or other similar payment, any Optionee Indemnified Party shall reimburse Optionor for such reduction in Optionee Losses for which any Optionee Indemnified Party was paid under this Section before the realization of reduction of such Optionee Losses. Notwithstanding anything to the contrary in this Agreement, Optionor is not obligated to indemnify, hold harmless or defend any Optionee Indemnified Party against any claim (whether direct or indirect) if such claim or corresponding Optionee Losses arise out of or result from Optionee Indemnified Party's: (a) gross negligence or more culpable act or omission (including recklessness or willful misconduct); or (b) bad faith failure to materially comply with any of its material obligations set forth in this Agreement. Any Optionee Indemnified Party shall give Optionor a prompt Claim Notice of any Optionee Losses or discovery of facts on which such Optionee Indemnified Party intends to base a request for indemnification under this Section. Any Optionee Indemnified Party's failure to provide a Claim Notice to Optionor under this Section does not relieve Optionor of any liability that Optionor may have to any Optionee Indemnified Party, but in no event shall Optionor be liable for any Optionee Losses that result from a delay in providing a Claim Notice. Each Clain Notice must contain a description of the claim and the nature and amount of the related Optionee Losses (to the extent that the nature and amount of the Optionee Losses are known at the time). Optionee shall furnish promptly to Optionor copies of all papers and official documents received in respect of any Optionee Losses. Optionor's duty to defend applies ininediately, regardless of whether Optionee Indemnified Party has paid any sums or incurred any detriment arising out of or relating, directly or indirectly, to any claim. Optionor may assume, at its sole option, control of the defense, appeal or settlement of any claim that is reasonably likely to give rise to an indemnification claim under this Section (an "Optionor Indemnified Claim") by sending written notice of the assumption to Optionee on or before thirty (30) days after receipt of a Claim Notice to acknowledge responsibility for the defense of such Optionor Indemnified Claim and undertake, conduct and control, through reputable independent counsel of its own choosing (which Optionee shall find reasonably satisfactory) and at Optionors sole cost and expense, the settlement or defense thereof. If Optionor assumes control of the defense under this Section, Optionee Indemnified Party (a) shall fully cooperate 16 51528687.8 25A-18 with Optionor in connection therewith; and (b) may employ, at any time, separate counsel to represent it; provided, that Optionee is solely responsible for the costs and expenses of any such separate counsel. Notwithstanding anything to the contrary in this Section, Optionce may defend an Optionor Indemnified Claim with counsel of its own choosing and without the Optionor's participation if: (a) the Optionor Indemnified Claim is one for which Optionee properly gave Optionor a Claim Notice under this Section, and Optionor fails to assume the defense or refuses to defend the Optionor Indemnified Claim under this Section; (b) the Optionor Indemnified Claim seeks only an injunction or other equitable relief against Optionee Indemnified Party; or (c) Optionee Indemnified Party reasonably believes: (i) that there are one or more legal or equitable defenses available to it that are different from or in addition to those available to Optionor; and (ii) counsel for Optionor could not adequately represent the interest of Optionee Indemnified Party because such interest could be in conflict with those of Optionor; or (iii) such action or proceeding involves, or could have a material effect on, any material matter beyond the scope of the indemnification or defense obligations of Optionor. If Optionee Indemnified Party assumes control of the defense under this Section, Optionor shall: (a) reimburse Optionee Indemnified Party promptly and periodically for the reasonable costs properly incurred in defending against the Optionor Indemnified Claim (including reasonable attorneys' fees and expenses); and (b) remain responsible to Optionee Indemnified Party for any Optionee Losses indemnified under this Section. Optionor shall give prompt written notice to Optionee of any proposed settlement of a Optionor Indemnified Claim. Optionor may not, without Optionee's prior written consent, which Optionee shall not unreasonably withhold, condition or delay, settle or compromise any claim or consent to the entry of any judgment regarding which indemnification is being sought hereunder unless such settlement, compromise or consent: (a) includes an unconditional release of Optionee Indemnified Party from all liability arising out of such claim; (b) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of Optionee Indemnified Party; and (c) does not contain any equitable order, judgment or term (other than the fact of payment or the amount of such payment) that in any manner affects, restrains or interferes with the business of Optionee Indemnified Party. Optionee Indemnified Party may not settle or compromise any claim or consent to the entry of any judgment regarding which it is seeking indemnification hereunder without the prior written consent of Optionor, which Optionor shall not unreasonably withhold, condition or delay, wzless: (a) if the Optionor Indemnified Claim is one for which Optionee properly gave Optionor a Claim Notice under this Section, and Optionor fails to assume the defense or refuses to defend the Optionor Indemnified Claim under this Section; or (b) such settlement, compromise or consent: (i) includes an unconditional release of Optionor from all liability arising out of such claim; (ii) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of Optionor; and (iii) does not contain any equitable order, judgment or tern (other than the fact of payment or the amouuit of such payment) that in any manner affects, restrains or interferes with the business of Optionee Indemnified Party. The obligations of Optionee Indemnified Party and Optionor under this Section shall survive the Closing or earlier termination of the Disposition Agreement and the expiration or earlier termination of this Agreement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURES FOLLOW] 17 51528687.8 25A-1 9 IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the Effective Date. OPTIONEE: OPTIONOR: Exhibits: ST. JOSEPH HEALTH SYSTEM, a California nonprofit public benefit corporation Lm Nalne: Its: CITY OF SANTA ANA, a public body, corporate and politic to Name: Its: Exhibit "A" Legal Description of the Property Exhibit `B" Notice of Exercise of Option Signature page to 51528687.6 55394.00000\20799743.5 51528687.8 25,E-20 Option Agreement AS TO FORM n Attorney EXHIBIT A LEGAL DESCRIPTION A-1 51528687.6 55394, 0000020799743.5 51528687.8 25A-21 EXHIBIT B OPTION EXERCISE NOTICE To: Pursuant to the provisions of that certain Purchase Option Agreement (this "Agreement"), made as of November [], 2015 (the "Effective Date"), at Santa Ana, California, by and between City of Santa Ana, a public body, corporate and politic ("Optionor"), and St. Joseph Health System, a California nonprofit public benefit corporation ("Optionee"), Optionee hereby exercises the Option. Capitalized terms not defined in this Notice of Exercise shall have the meanings ascribed to them in the Agreement. Dated: 1201 OPTIONEE: ST. JOSEPH HEALTH SYSTEM, a California nonprofit public benefit corporation By: Narne: Its: B-1 51528687.8 25A-22 REQUEST" FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: AGREEMENT WITH NETWORK KINECTION, LLC FOR ON-THE-JOB TRAINING DEVELOPMENT SERVICES {STRATEGIC PLAN NO. 2,413) �f CITY MANAGE RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1® Reading ❑ Ordinance on 2n0 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 Network Kinection, LLC to provide on-the-job training development services for a one-year period ending June 30, 2016 in an amount not to exceed $127,028.82, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION In November 2011, the Department of Labor (DOL) awarded the City of Santa Ana WORK Center (WORK Center) $4,997,479 to fund its Bridges to Engineering Program, which included a multi -agency consortium composed of: Santa Ana, Saddleback, and San Mateo colleges, Growth Sector a non-profit; California State University Fullerton, University of California Irvine, and San Francisco State University. The program provides 290 pre -engineering students with academic and peer support to assist them in acquiring an engineering degree. One of the foundational elements to this program includes an On -The -Job Training (OJT) component that has proven to increase the probability of employment when combined with classroom training. The program will subsidize student wages for up to six months to compensate the employer costs associated with the training. On October 24, 2013, the WORK Center released a Request for Proposal (RFP) for organizations to develop work based training opportunities with local businesses for Bridges to Engineering participants as required by the DOL H-1 B Technical Skills Training grant. Network Kinection, LLC was selected as the most responsive and was awarded an initial one-year contract. Network Kinection helped place 100 program participants in science, technology, engineering, and math (STEM) related internships and other On -The -Job Training opportunities. DOL recently approved a one-year extension of the Bridges to Engineering Program through November 30, 2016. The additional one year period will allow pre -engineering students to attain 2513-1 Agreement — Network Kinection, LLC November 3, 2015 Page 2 their degree and benefit from an additional year of subsidized or unsubsidized job placement services, or internship opportunities, or On -The -Job Training. Network Kinection, LLC will be responsible for coordinating subsidized or unsubsidized placements, or internship opportunities with private, engineering and other STEM companies for 100 program participants. Additional responsibilities of the consultant include structuring training plans, assisting in the preparation of agreements and employer reimbursement request documents to the City for review, approval and processing. Network Kinection, LLC performed in a satisfactory manner during the initial term and staff recommends approval of a new agreement to provide continued services to the program participants during the final year of the grant. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts 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), Strategy B (Partner with The California Endowment, Santa Ana College, Chapman University, UCI, CSUF and other institutions of higher education to design career pathway programs that support priority workforce industries (Retail, healthcare, manufacturing, renewable energies) that results in faster reemployment of Santa Ana's residents). FISCAL IMPACT The Department of Labor H-1 B Technical Skills grant funds will be carried forward from FY 2014- 2015 to FY 2015-2016 in account no. 13218744-69135 for expenditure in FY 2015-2016. wjN / -- Kelly Reende4 � Executive Director Community Development Agency KR/CR/11 Exhibit: 1. Agreement APPROVED AS TO FUNDS AND ACCOUNTS: ~ - ;SOS` m 3aN s� Francisco Gutierrez Executive Director Finance & Management Services Agency 25B-2 EXHIBIT 1 Contract No. AGREEMENT UNDER THE WORIC ORCE INVESTMENT ACT THIS AGREEMENT, made and entered into this 3"d day of November, 2015, 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 State of California ("CITY") and Network Kinection, LLC dba MikeMarinoff corn ("CONTRACTOR"). RECITALS: A. CITY has been designated a Local Workforce Investment Area (LWIA) ander the Workforce Investment Act of 1998, Public Law 105-220 ("the Act"). B. The State of California has created the LWIA to administer the Act programs operated by the State of California pursuant to the Act. C. As a LWIA, CITY is entitled to receive federal funds to establish programs to increase training opportunities for unemployed individuals. One goal of California's Workforce Investment System is to provide the opportunities to find retain, or advance their employment. D. CONTRACTOR is experienced in operating education, occupational development and employment programs for economically disadvantaged youths for entry into the labor market ("said program"). E. CONTRACTOR is willing to operate said program pursuant to the Act and California law. WHEREFORE, for and in consideration of the respective and mutual covenants and promises hereinafter contained and made, and subject to all the terms and conditions hereof, the parties hereto do hereby agree as follows: 1. CONTRACTOR'S OBLIGATIONS A. CONTRACTOR agrees to provide the following services pursuant to said program, as more specifically set forth in CONTRACTOR'S program narrative contained in "Exhibit A", attached hereto and by this reference incorporated herein: Develop On -The -Job Training and internship agreements with local private, engineering and other science, technology, engineering and mathematics (STEM) companies on behalf of the Santa Ana WORD Center to stti etrue work based learning gaining o'ppo'rtunities for 100 Bridges -to -Engineering Program participants. 25B-3 Page l of 15 CONTRACTOR'S failure to provide said services may be grounds for CITY to readjust the level of payment to CONTRACTOR other wise provided for hereinafter. B. CONTRACTOR agrees to provide benefits to individuals who participate in the activities and services funded by this Agreement ("participants") in accordance with the standards and requirements set forth in Workforce Investment Act of 1998, Public Law 105-220. C. CONTRACTOR agrees to perform the services set forth herein in a professional, timely and diligent manner. D. RESERVED E. CONTRACTOR shall adhere to the Labor Standards described in the Act including Section 181 of the Act. F. CONTRACTOR agrees to comply with the "Complaint Handling Procedures tinder the WIA", attached hereto as "Exhibit B" and incorporated herein as though fixtly set forth in 20 CFR §667.200, Subpart F. CONTRACTOR shall advise participants of their rights to file complaints tinder the Act and the procedures for resolution of any complaints. CITY's procedures for handling complaints alleging a violation of the Act, regulations, grants, or other agreements under the Act shall be followed and any decision of CITY, the State or the federal government relating to the complaint shall be binding and followed by CONTRACTOR, CONTRACTORS who are employers shall operate a grievance system that incorporates CITY's procedures for resolution of complaints relating to the terms and conditions of employment; these procedures shall be approved in writing by CITY. G. As a condition of this award of financial assistance under the Act to CONTRACTOR from CITY, CONTRACTOR assures, with respect to operation of all programs or activities funded with fiords provided pursuant to the Act, and all agreements or arrangements to carry out such programs or activities, that it will comply fully with the nondiscrimination and equal opportunity provisions of the Act (Section 188) and compliance with Equal Employment Opportunity provisions in Executive Order (E.O.) 11246, as amended by E.O. 11375 and supplemented by the requirements of 41 CFR Pat 60; the Nontraditional Employment for Women Act of 1991; Title VI of the Civil Rights Act of 1964, as amended; section 504 of the Rehabilitation Act of 1973, as amended; the Age Discrimination Act of 1975, as amended; the Americans with Disabilities Act of 1990; slid with all applicable requirements imposed by or pursuant to regulations implementing those laws, including, but not limited to, 29 CFR Part 33 and 37. The United States, the State of California and CITY have the right to seek judicial enforcement of this assurance. H. CONTRACTOR agrees that no participant(s) shall commence training prior to the approval of funding pursuant to Section 123 of the Act. I. CONTRACTOR agrees to maintain such records and submit such reports, data and information, on the form and containing such information, at such times as CITY may request or require regarding the performance of CONTRACTOR'S services or activities, costs or other data, including but not limited to, participants' attendance, payroll records and job duty statements. 25B-4 Page 2 of 15 CITY, the State of California and the United States goverunent and/or their representatives shall have access for purposes of monitoring, auditing and examining of CONTRACTOR'S activities, performance, books, documents, papers, and records of CONTRACTOR subcontractors, booldceepers and accountants, and employees and participants related to this Agreement. Such agencies or representatives shall also schedule on-site monitoring in their discretion. Monitoring activities may also include, but are not limited to, questioning employees and participants and entering any premises or onto any site in which any of the services or activities funded hereunder are conducted or in which any of the records of CONTRACTOR are kept. Nothing herein shall be construed to require access to any privileged or confidential information as set forth in federal or state law. In the event CONTRACTOR does not make the above -referenced documents available within the City of Santa Ana, California, CONTRACTOR agrees to pay all necessary and reasonable expenses incurred by CITY in conducting any audit at the location where said records and books of account are maintained. All accounting records and evidence pertaining to all costs of CONTRACTOR and all documents related to this Agreement shall be kept available at the location where CONTRACTOR conducted the program, as well as in the County of Orange, for the duration of this Agreement and thereafter for three (3) years after completion of an audit, Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this Agreement, or (b) costs and expenses of this Agreement to which CITY, the State of California or the United States Govermnent take exception, shall be retained beyond the three (3) years until resolution of disposition of such appeals, litigation, claims, or exceptions. J. Without prejudice to any other section of this Agreement, CONTRACTOR shall, where applicable, maintain the confidential nature of information provided to it concerning participants in accordance with the requirements of federal and state law. Notwithstanding the foregoing, CONTRACTOR agrees to submit to CITY, the State of California and/or the United States Government or their representatives, all records requested for administrative purposes, including audits, examinations, monitoring and verification of records submitted by CONTRACTOR, costs incurred and services rendered hereunder. K. CONTRACTOR agrees to complete in triplicate, a monthly Invoice/Voucher on CITY's Invoice/Voucher form, showing in detail the amount of money already expended by CONTRACTOR hereunder, as this is a cash reirrrbursement contract. Accounting records must be supported by such source documentation such as cancelled checks, paid bills, payrolls, time and attendance records, contract and subgrant award docurnents [29 CFR—Subpart C, Section 97.20 (b)(6)]. CONTRACTOR agrees to submit the above -stated documents to the WIB Administrative Office, 1000 East Santa Ana Blvd., Suite 200, Santa Ana, California, 92701, by the tenth, (10th) day of the month following the month in which CON'TRACTOR'S services are performed. Should CONTRACTOR fail to deliver said documents to CITY, CITY shall have the option to cancel this Agreement by giving CONTRACTOR ten (10) days written notice thereof. CONTRACTOR shall either return to the CITY excess revenues over costs or use such excess revenues as program income by utilizing such program income for additional training activities authorized under the Act. 25B-5 Page,3 of 15 I,. CONTRACTOR agrees to expend all funds in accordance with all applicable federal, state and local laws and regulations. CONTRACTOR also agrees .to provide at CONTRACTOR'S own expense supplies and other costs of said PROGRAM. M. CONTRACTOR shall arrange independently for an audit that includes WIA funds received from CITY, in accordance with the Act, 20 CFR Section 667.200 and OMB Circular A- 133. CONTRACTOR shall submit one original of each required audit report. to CITY within (30) days after the date received by CONTRACTOR. Should CONTRACTOR fail to comply with these requirements, CITY may at its option withhold payment of fluids, or disallow fwrds or suspend, additional grant funds. N. CONTRACTOR shall not expend funds pursuant to this Agreement to provide services to any participant where costs of training are paid for by any other person or entity. O. CONTRACTOR shall comply with the provisions of Circular A-102 of the U.S. Office of Management and Budget (OMB) and the related "Common Rule" entitled "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Government", Subpart C, paragraphs 37 and 42, Circular A-128, and all other applicable federal statutes and executive orders and their implementing regulations, including regulations at 29 CPR Part 97. P. CONTRACTOR shall comply with the requirements of federal regulations found at 29 CFR 93 which provide that no appropriated funds may be expended, by the recipient of a federal contract, grant, loan or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, member of Congress or an officer or employee of a member of Congress in connection with awarding of any federal contract, the making of any federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment or modification of any federal contract, grant, loan or cooperative agreement. CONTRACTOR shall sign a certification to that effect in a form as set forth in "Exhibit C," attached hereto and by this reference incorporated herein. CONTRACTOR shall submit said signed certification to CITY prior to performing any of its obligations under this Agreement and prior to any obligation arising on the part of CITY to pay any sums to CONTRACTOR under the terns and conditions of this Agreement. Q. CONTRACTOR agrees to provide a drug-free work place and to execute certification as set fortli in "Exhibit D" attached hereto and incorporated herein by this reference, R. CONTRACTOR, in accordance with the Child Support Compliance Act, recognizes mid acknowledges the importance of child and family support obligations and shall frilly comply with all state and federal laws relating to child and family support enforcement, including, but not limited to: disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the state Family Code; and, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Employee Registry maintained by the California Employment Development Department (EDD). S. CONTRACTOR agrees to comply with all applicable provisions of the ACT and the federal regulations, including but not limited to the regulations found at 20 CFR part 629. 25B-6 Page of 1.5 T. CONTRACTOR agrees to provide priority of services for veterans and eligible spouses pursuant to 20 CFR part 1010 and the regulations implementing priority of service for veterans and eligible spouses in Department of Labor job training programs under the Sobs for Veterans Act published at 73 Fed,Reg. 78132 on December 19, 2008. II. CITY'S OBLIGATIONS A. CITY agrees to pay to CONTRACTOR when, if and to the extent federal fiords are received Lander the provisions of the Act a surn not to exceed One Hundred Twenty Seven Thousand and Twenty Eight Dollars and Eighty Two Cents ($127,028,82) for CONTRACTOR'S performance in accordance with the payment schedule attached hereto as "Exhibit E" during the period of this Agreement. Said stun shall be paid after CITY receives invoices submitted by CONTRACTOR as provided hereinabove. B. CITY agrees to provide for on-site monitoring reviews of said program operation at least twice annually. In addition, monthly desk -top reviews of pertinent information will be conducted. C. CITY has the right to de -obligate the fiends hereunder and take such funding back from CONTRACTOR due to any of the following reasons: (a) lack of performance by CONTRACTOR; (b) lack of fiscal accountability of CONTRACTOR; or (c) decrease in available funding. III. TIME PERIOD OF AGREEMENT This Agreement shall continence on July 1, 2015, and all duties arising Linder this Agreement shall have been performed by June 30, 2016. The tern of this Agreement maybe extended by a writing executed by the Executive Director of the Community Development Agency and the City Attorney. IV. INDEPENDENT CONTRACTOR CONTRACTOR shall, during the entire tern 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 jonnt 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. 25B-7 page 5 of 15 V. WORKER'S COMPENSATION AND EMPLOYER'S RIGHTS A. CONTRACTOR shall use appropriate funds received from CITY to provide workers' compensation to all those hired by CONTRACTOR under this Agreement. B. CONTRACTOR shall have the right to hire, dismiss, or promote its employees or contract personnel hired under this Agreement so long as its hiring or dismissal policy or standard does not violate Title VII of the Civil Rights Act of 1964, Fair Labor Standards Act of 1938, or any other applicable law, and CONTRACTOR maintains itself as an Equal Opportunity employer. VI. APPLICABLE GUIDELINES A, The parties hereto agree that CONTRACTOR shall comply with all applicable federal and state laws and regulations, including, but not limited to the Scope of Work (Exhibit A) and general program requirements described in Sections 106 and 141 of the Act (29 USC Sections 1516 and 1551) and applicable regulations, and the U.S. Departrnent of Labor guidelines and regulations, including amendments or revisions made during the terms of this Agreement. Said applicable laws are hereby incorporated by reference and made as part of this Agreement as though fully set forth herein. B. CONTRACTOR also assures and certifies that: 1. CONTRACTOR shall comply with Title VII of the Civil Rights Act of 1964 (P.L. 83-354) and in accordance with Title VII of the Act, no person shall, on the grounds of race, color, religion, sex, age, handicap or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this Agreement. 2. CONTRACTOR shall comply with any and all federal laws limiting the political activity of employees hired under this Agreement. 3, CONTRACTOR shall comply with the requirements that no program under the Act shall involve political activities. 4. RECORD INSPECTION. CONTRACTOR shall provide the U.S, Department of Labor and the Controller General, by and through any authorized representative, as well as the WIB Administrative Office, access to and the right to examine all records, books, papers or doctmients relating to the accounting and use of funds under this Agreement for a three-year period from acrd after the effective date of this Agreement. 5. No person with responsibilities in the operation of any prograrn under the Act shall discriminate with respect to any program participant or any application for participation in such program because of race, creed, color, national origin, sex, political affiliation or beliefs. 6. CONTRACTOR shall maintain appropriate standards for health and safety in work and training situations. 25B-8 Page 6 of 15 7. CONTRACTOR shall comply with general provisions, assurances, and certifications attached hereto as "Exhibit F" and incorporated herein. 8. CONTRACTOR agrees to execute a certification regarding debarment, suspension, ineligibility, and voluntary exclusion as set forth in "Exhibit G" attached hereto and incorporated herein by this reference.. 9. EQUAL OPPORTUNITY. Any literature distributed by CONTRACTOR for the purpose of apprising businesses, participants, or the general public of its programs under this Agreement shall state that its programs are supported by the City of Santa Ana and the Santa Ana Workforce hxvestnient Board, and shall state that the prograin is an "equal opportunity employer/program" and that "auxiliary aids and services are available upon request to individuals with disabilities." 10. Based on the population eligible to be served, or likely to be directly affected by the WIA program or activity, the services or information may need to be provided in a language other than English in order to allow such population to be effectively informed about or able to participate in the program or activity, Pursuant to 29 CPR 37.35, the Contractor must take reasonable steps to provide services and information in appropriate languages after considering the scope of the program or activity, and the size and concentration of the population that needs services or information in a language other than English. it. CONTRACTOR certifies that all property, finished or unfinished documents, data, studies and reports prepared or purchased -aider this Agreement, will be disposed of in accordance with the direction of the CITY. In addition, any tools and/or equipment furnished to the CONTRACTOR by the CITY and/or purchased by the CONTRACTOR with funds pursuant to this Agreement, will be limited to use within the activities outlined in this agreement and will remain the property of the United States Government and/or CITY. Upon termination of this Agreement, CONTRACTOR will immediately return such tools and/or equipment to the CITY or dispose of them in accordance with the direction of the CITY. 12. CONTRACTOR certifies that this Agreement does not provide for the advancement or aid to any religious sect, church or creed, or sectarian purpose nor does it help to support or sustain any school, college, university, hospital or other institution controlled by any religious creed, church, or sectarian denomination, as specified by Article XVI, Section 5, of the Constitution of the State of California, regarding separation of church and state. 13. PATENT, COPYRIGHTS AND RIGHTS IN DATA. The CONTRACTOR will disclose to the CITY any invention, written product, computer program developed or data assembled as a result of performance of work under this Agreement within seventy four (74) days of invention, development or assembly. The CITY, State of California, and U.S. Department of Tabor will have the right to patent any invention and copyright any written product or computer prograzm or data generated by CONTRACTOR, Upon written request, CONTRACTOR will transfer all pertinent information, specifications and right, title and interest to the designated agency. 14. INVENTIONS, PATENTS AND COPYRIGHTS. 25B-9 Page 7 of 15 A. Reporting Procedure. If any project produces patentable items, patent, rights, processes, or inventions in the course of work under a U.S. Department of Labor (DOL) grant or agreement, the CONTRACTOR shall report the fact promptly and, fully to the CITY. The CITY shall report the fact to the Grant Officer, at the DOL. Unless there is a prior agreement between the CITY and the DOL and its representative on these matters, the DOL shall determine whether to seek protection on the invention or discovery, The DOL and its representative shall determine how the rightsin the invention or discovery, including rights under any patent issued thereon, will be allocated and administered in order to protect the public interest consistent with the "Governmental. Patent Policy" (President's Memorandum for Heads of Executive Deparbrrents and Agencies, August 23, 1971, and Statement of Government Patent Policy as printed in 36 FR 16889). B. Copyright Policy. 1. Unless otherwise provided in the terms of the grant or agreement, when copyright- able material is developed in the course of or under a DOL Grant or agreement, the author and the CITY which developed the work is free to copyright material or to pennit others to do so, The CONTRACTOR and the Workforce Investment Board (WIB) shall have a royalty -free, nonexclusive and irrevocable license to reproduce, publish, use and to authorize others to use all copyrighted material. 2. The DOL reserves a royalty -free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for Federal Government purposes: (a) The copyright in any work developed under any grant, sub -grant, or contract under a grant or s'ubgrant; (b) Any right of copyright to which a grantee, subgrantee or a CONTRACTOR purchases ownership with grant support; and (c) CONTRACTOR shall comply with the requirements of 29 CFR Part 97.34. C. Rights to Data. The DOL and the CITY shall have unlimited rights to any data first procured or delivered under this Agreement. 14. CLEAN AIR / CLEAN WATER ACT. If the grant hereunder exceeds $100,000, CONTRACTOR must comply with Section 306 of the Clean Air Act [(42 USC 1875(h)]; Section 508 of the Clean Water Act (33 USC 1368); Executive Order 11738 and Environmental Protection Agency ("EPA") regulations (40 CFR Part 15) as any may now exist or be hereafter amended, Under these laws and regulations, the CONTRACTOR assures that: CONDUCT: (a) No facility to be utilized in the performance of the proposed grant has been listed on the EPA List of Violating Facilities; (b) It will notify CITY prior to award of the receipt of any cormnu nieation from the Director, Office of Federal Activities, U,S. EPA, indicating that a facility to be utilized for the grant is under consideration to be listed on the EPA List of Violating Facilities; (c) It will notify the CITY and the EPA about any known violation of the above laws and regulations. D. CONTRACTOR agrees to adhere to the following STANDARDS OF 25B-1 U Page 8 of 15 1, General Assurance, Every reasonable course of action will betaken by CONTRACTOR in order to maintain the integrity of this expenditure of public funds and to avoid favoritism, This Agreement will be administered in an impartial manner, free from errors to gain personal, financial political gain. CONTRACTOR, its officers and, employees, in administering this Agreement, will avoid situations which give rise to a suggestion that any decision was influenced by prejudice, bias, special interest or desire for personal gain. 2, EinRloyment of Former State or CITY Employees, CONTRACTOR will ensure that any of its employees who were formerly employed by the State of California or CITY, in a position that could have enabled such individuals to impact policy regarding or implementation of programs covered by this Agreement, will not be assigned to any part or phase of the activities conducted pursuant to this Agreement for a period of not less than two (2) years following the tennination of such employment. 3. Conducting Business Involving Relatives. No relative by blood, adoption or marriage of any executive or employee of CONTRACTOR will receive favorable treatment when considered for enrollment in programs provided by, or employment with, CONTRACTOR. 4. Conducting_ Business Involving Close personal Friends and Associates. Executives and employees of CONTRACTOR will be particularly aware of the varying degrees of influence that can be exerted by personal friends and associates and, in administering this Agreement, will exercise due diligence to avoid situations which give rise to an assertion that favorable treatment is being granted to friends and associates. When it is in the public interest for CONTRACTOR to conduct business with a friend or associate of an executive or employee of CONTRACTOR, an elected official in the area or a voting or non-voting member of the Workforce Investment Board (WIB), a permanent record of the transaction will be retained. 5. Avoidance of Conflict of Economic Interest. No executive or employee of CONTRACTOR or voting or non-voting member of a WIB, will solicit or accept money or any other consideration from a third person, for the performance of an act reimbursed in whole or part by CONTRACTOR or CITY. Supplies, materials, equipment or services purchased with Agreement Rinds will be used solely for purposes asserted or allowed under this Agreement. No voting member of the WIB will cast a vote on the provision of services or vote on any matter which would provide direct financial benefit to that member or any business or organization which the member directly represents. 6. Salary and Bonus Limitations. All subrecipients of WIA program hinds are required to comply with federal requirements regarding the limitations on salary and bonus payments in accordance with Public Law 109-149, Section 7013. V11. HOLD HARMLESS A. CONTRACTOR shall indemnify and save harmless CITY, its officers, agents and employees, from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of CITY, and shall defend, indemnify and save harmless CITY, its officers, agents and employees, from any and all claims, denrands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers` compensation claims, resulting from or arising out of the negligent acts, errors or ornission of CONTRACTOR, its employees or subcontractors. 25B-1 1 Page 9 of 15 B. CONTRACTOR shall indemnify and, save harmless CITY, its officers, agents and employees, from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of CITY, and shall defend, indemnify and save harmless CITY, its officers, agents and employees, from and against any and all claims, demands, suits, actions or proceedings therefore, resulting from or arising out of the intentional or malicious acts of CONTRACTOR, its employees or subcontractors. C. 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, VIII. INSURANCE 1, Commercial General Liability. CONTRACTOR agrees to obtain and keep in force during the term of this Agreement a policy of comprehensive commercial public liability insurance insuring the State of California, CITY, and CONTRACTOR against any liability for accident, injury or death arising out of or in consequence of this Agreement. Such insurance shall be in an amount not less than Ono Million Dollars ($1,000,000,00) for any injury to or death of any person or persons in any single accident or occurrence. Said policy of comprehensive insurance shall be endorsed to provide to CITY and to the State of California, Employment Development Department, at least thirty (30) days written notice prior to cancellation; name CITY, its officers, agents, employees, and volunteers, and the State of California, its officers, employees, and volunteers as additional insured; and state that such coverage is primary to any other coverage or self-insurance of the State of California and CITY. Governmental entities may substitute a certificate of self-insurance. 2. Automobile Liability Coverage. CONTRACTOR shall also obtain and maintain, during the effective period of this Agreement, broad form automobile liability coverage with a $1,000,000 limit unless reduced by CITY, which applies to both owned/leased and non -owned automobiles used by CONTRACTOR employees or participants in performance of this Agreement, or, in the event that CITY will not utilize such owned/leased automobiles but intends to require employees, participants or other agents to utilize their own automobiles in the performance of this Agreement, CONTRACTOR shall secure and maintain on file from all such employees, participants, or agents as self -certification of automobile insurance coverage. Governmental entities may substitute a certificate of self-insurance. 3. Workers' Compensation. If CONTRACTOR is an "employer", as set forth in California Labor Code Section 3300 et seq., or utilizes participants as "employees," as set forth in Califoxnia Labor Code Section 3350 or seq., CONTRACTOR shall obtain and keep in force during the term of this Agreement full Workers' Compensation insurance coverage for injuries suffered by participants. Said insurance policy shall guarantee CITY at least thirty (30) days written notice of cancellation or modification. CONTRACTOR shall carry medical and accident insurance for those participants not qualifying as "employees" for Worker's Compensation Coverage, pursuant to California Labor Code Section 3350, et seq. 25B-1 2 Page 10 of 15 4. Equipment Coverage. CONTRACTOR shall purchase a policy or policies of insurance covering loss or damage to any and all Equipment provided to or purchased by CONTRACTOR in accordance with this Agreement. Said insurance shall be in the amount of the full replacement value thereof, providing protection against the classification of fire, extended coverage, vandalism, malicious mischief, theft, and special extended perils. Governmental entities may substitute a certificate of self insurance. 5. Proof of Insurance. Certificates and endorsements must be submitted and approved by CITY prior to any work under this Agreement. CONTRACTOR understands that CITY will make no payments under this Agreement until the required certificates and endorsements have been approved by CITY. IX. CORPORATESTATUS All corporate CONTRACTORS shall be in good standing, without suspension by the California Secretary of State, Franchise Tax Board and Internal Revenue Service. Any change in corporate status or suspension shall be reported immediately to CITY. X. ASSIGNABILITY None of the duties of, or work to be performed by, CONTRACTOR under this Agreement shall be subcontracted or assigned to any agency, consultant, or person without the prior written consent of CITY. CONTRACTOR must submit all subcontracts and other agreements that relate to this Agreement to CITY. No subcontract or assignment shall terminate or alter the legal obligations of CONTRACTOR under the terms of this Agreement. XI. LAWS GOVERNING THIS AGREEMENT In its performance under this Agreement, CONTRACTOR shall fully comply with the requirements of the following, whether or not otherwise referred to in this Agreement: 1. The Act and all applicable federal statutes, regulations, policies, procedures and directives, including but not limited to, 20 C.F.R. Parts 652 and 660 through 671 2. All applicable State statutes, regulations, policies, procedures and directives; 3. All applicable CITY policies, procedures and directives; 4. All applicable local ordinances and requirements, including use permits and licensing; 5. Court orders applicable to its operation; and, 6. The terns and conditions of this Agreement. 2581 3 Page 11 of t5 If any of the foregoing is enacted, amended, or revised, CONTRACTOR will comply with such or will notify CITY after enactment or modification that it cannot so comply. CITY may thereupon terminate this Agreement, if necessary. XII. EXCLUSIVITY AND AMENDMENT OF AGREEMENT This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of CONTRACTOR by CITY, and contains all the covenants and agreements between the parties with respect to such employment, 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, and that no other agreement or amendment hereto shall be effective unless executed in writing and signed by both CITY and CONTRACTOR. XIII. FRAUD CONTRACTOR shall immediately report to CITY all instances and facts concerning possible fraud, abuse or criminal activity relating to expenditure or receipt of Rinds under this Agreement. XIV. CONTINGENCY OF FUNDS CONTRACTOR acltiowledges that approval of and funding for this Agreement is contingent upon Federal approval, and fiords received or obligated from the Department of Labor to CITY. If such approval of funds is not forthcoming, or is otherwise limited, CITY shall immediately notify CONTRACTOR. Within twenty (20) days of receipt of such notice, CONTRACTOR shall modify or cease operations as directed by CITY and negotiate necessary modification to this Agreement and/or reimbursement of costs incurred hereunder. XV. TERMINATION A. This Agreement may be terminated by either party at its sole discretion, upon thirty (30) days written notice to the other party, Notice shall be deemed served on the date of mailing. However, CONTRACTOR may not terminate this Agreement if undue hardship will result to any participant. B. In the event CONTRACTOR defaults by failing to fulfill all or any of its obligations herewnder, CITY may declare a. default and termination of this Agreement by written notice to CONTRACTOR, which default and termination shall be effective on a date stated in the notice which is to be not less than ten (10) days after certified mailing or personal service of such notice, unless such default is cured before the effective date of termination stated in such notice. If terminated for cause, CITY shall be relieved of further liability or responsibility wider this Agreement, or as a result of the termination thereof, including the payinent of money, except for payment for approved expenses incurred for services satisfactorily and timely performed prior to the mailing or service of the notice of termination, and except for reimbiusernent of (1) any payments made for services not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by CITY in obtaining substitute perfornnance. 25B-14 Page 12 of 15 XV.I. DISPUTES Except as otherwise provided in this Agreement, any dispute concerning any question arising under this Agreement shall be decided by CITY. In such a case CITY shall reduce its decision to writing and mail or otherwise furnish a copy thereof to CONTRACTOR. The decision of the City shall be final and conclusive unless within thirty (30) calendar days from the mailing or delivery of such copy, CITY receives from CONTRACTOR written request to appeal said decision. Procedures governing the appeal shall be prescribed by CITY and/or the State of California in accordance with the Act and all corresponding regulations and OMB circulars. Pending final disposition of the appeal, CONTRACTOR shall act in accordance with CITY's decision unless the dispute involves a change order. XVII. BREACH - SANCTIONS If, through any cause, CONTRACTOR violates any of the terms and conditions of this Agreement, and/or prior agreements whereby grant funds were received by CONTRACTOR pursuant to this Agreement, or if CONTRACTOR reports inaccurately or if any Audit Report makes disallowances, CONTRACTOR shall promptly remedy its sets or ornissions raid/or repay CITY all amounts due CITY as a result of CONTRACTOR's violation. For any such failures or violations, CITY shall also have the right at its sole discretion to either: (1) discontinue prograrn support until such time as CONTRACTOR fiilfrlls its obligations or remedies all violations of this agreement or prior agreements; and/or (2) collect outstanding amounts as determined by CITY due CITY by offsetting or debiting from current claims or invoices, if after thirty (30) days' written notice CONTRACTOR has failed to repay same or a repayment schedule has not been made; and/or (3) terminate this Agreement by giving written notice to CONTRACTOR of such termination in accordance the notice provision in Paragraph XVIII herein below. XVIH. 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: and, CITY: City of Santa Ana Manager, W113 Administrative Office P.O. Box 1988 (M-73) Santa Ana, CA 92702 CLERK: Cleric of the City Cowicil City of Santa Ana 20 Civic Center Plaza (M-30) P,O. Box, 1988 Santa Ana, CA 92702-1988 Telefa.csimile (714) 647-6956 25B-1 5 Page 13 of 15 CONTRACTOR: Network Kinection, LLC c/o Mike Marinoff 1142 S. Diamond Bar Blvd 1{160 Dianrond Bax CA, 91765 Telephone: (714) 305-2311 Telefacsimile: (714) 549-8109 XIX. MERGER This Agreement, together with the attachments hereto, expresses the total understanding of the parties. There are no oral understandings of the parties or terms and conditions other than as stated herein. XX. VALIDITY The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. XXI. MISCELLANEOUS PROVISIONS a. 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, b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. 258-1 6 Page 14 of 15 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above -written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: Sonia R. Carvalho City AttopgY A CITY OF SANTA ANA, a municipal corporation of the State of California "CITY" By: David Cavazos City Manager "CONTRACTOR" Network Kinection, LLC By: ' U -Y I iT By: R n0. [ odge Michael Marinoff A - stant ity Attorney Executive Director/Chief Operating Officer Tax ID #: 25B-17 Page 15 of 15 EXHIBIT A 25B-18 Bridges -to -Engineering On The Job Trainhrg Scope of Work Develop On -The -Job Training and internship agreements with local private, engineering and other science, technology, engineering and mathematics (STEM) companies on behalf of the Santa Ana WORK Center to structure work based learning training opportunities for Bridges -to -Engineering program participants. 1. Develop OJT, direct placement and internship placements for 85 program participants. The Santa Ana WORK Center will determine which participants will receive OJT, and which participants will receive internships based on program needs and requirements. Additional services to enhance connections to STEM employers will be provided to Bridges -to - Engineering program participants that include: a. Tours of local, Orange County engineering facilities to provide relationships to employers while students explore the daily tasks of an engineer within the specific company. b. Pre-employment, pre -placement career development mentoring via workshops on campus and meetings with students when appropriate. 2. Recruit local private businesses to develop Engineering and other STEM related OJT and internship agreements on behalf of the Santa Ana WORK Center. 3. Collect and review all OJT and internship related dociunentation and submit to Santa Ana WORK Center for review, approval, and processing, including; a. OJT Contract Documents (Attachment I) Three original signed copies of agreement are to be submitted, Once agreement is approved by the City of Santa Ana, a copy of the agreement and OJT Invoice Forins will be mailed to the employer, b. OJT Employer Reimbursement Invoice (Attaclvnent II) and supporting documentation including timecards, payroll registers, and cancelled checks. Payment requests by the OJT employer are to be submitted to the Santa Ana W/O/R/K Center on a billing cycle agreed to by both the employer and the OJT Program Coordinator (monthly is preferred); using the City of Santa Ana OJT Invoice form. OJT invoices must represent reimbursement requests for hours worked in specified time periods which, should coincide with the regular payroll schedule of the OJT employer. However an OJT employer may not request reimbursements more often than on a monthly basis. Note: A defined work week play not exceed more than 40 working hours. OJT reimbursements requests must not reflect hours for company paid holidays, comp time, over time or sick leave or any time above a 40 hour work week. c. Internship Documents (Attachment 111) 4. Submit monthly progress reports. This project will be conducted in a manner that is consistent with the provisions of the Workforce Investment Act and other provisions found in the H -1B Technical Skills Training grant, 2618-a19 PROJECT TIMELINE Placement Goal: The goal is 85 placements ofprogran participants. Month Cumulative Placements April_ 5 May ---- 11 June_ 21 July _ 25 August 31 September 41 October _ 50 November 55 December 60 January 64 February_ 68 March 73 April_ 77 May -- 81 June 85 Cumulative Placements 3U 0 `yK�c Q�C�t G ,� �� V r Employer Recruitment Goal. The employer recruitment goal is 20 companies for the 85 placements of program participants. 26B6,iZ0 EXHIBIT B 25B-21 • jyj jWWJkjARM:.\ UNDER THE WORKFORCE INVESTMENT ACT SANTA ANA WIA Santa Ana Local Workforce Investment Area Revised May 7, 2009 EXHIBIT B 25B-22 Table of Contents I. Information Regarding Complaints 3 A. Nondiscrimination and Equal Opportunity Complaints 3 1. Policy Statement .. 3 2. Civil Rights 4 3. Nondiscrimination laws under WIA 4 4. How to File Your Complaint 5 B. Criminal Ccmplai IL General Procedures for Handling Non -Criminal Violations of the Act 6 III. Procedures for Handling Complaints at the LWIA Level 8 IV. Procedures for Handling Complaints at the State Level 12 V. Procedures for Handling Discrimination Complaints by Participants 15 VI. Procedures for Handling Handicap Complaints by Participants 17 GLOSSARY OF WIA TERMS 20 2 EXHIBIT B 25B-23 Information Regarding Complaints A. Nondiscrimination and Equal Opportunity Complaints 1. Policy Statement In carrying out the purpose of the Workforce Investment Act (WIA), the City of Santa Ana local Workforce Investment Area (LWIA) will establish programs to prepare youth and unskilled adults for entry into the labor force and to afford job training to those individuals facing serious barriers to employment. Every effort will be made to provide services necessary for eligible individuals to obtain productive employment. In implementing WIA, all contractors in the Santa Ana LWIA will foster equal opportunity and non-discrimination, as provided in State and Federal equal opportunity and non-discrimination laws including, but not limited to: • Title VI of the Civil Rights Act of 1964 • Title VII of the Civil Rights Act of 1964 • The Age Discrimination Act of 1975, as amended • Section 503 of the Rehabilitation Act of 1973 • Section 504 of the Rehabilitation Act of 1973 • Title IX of the Education Amendments of 1972 • Section 188 of the Workforce Investment Act of 1998 In keeping with our commitment, no individual shall be excluded from participation in, denied benefits of, subjected to discrimination under, or denied employment, in the administration or of in connection with any WIA funded program because of race, color, religion, sex, national origin, age, handicap, or political affiliation or belief. Participation in programs and activities financially assisted in whole or in part under WIA shall be open to citizens and nationals of the United States, lawfully admitted permanent resident aliens, lawfully admitted refugee, parolees, and other individuals authorized by the Attorney General to work in the United States. No individual will be intimidated, threatened, coerced, or discriminated against because of filing a complaint, furnishing information, or assisting or participating in any manner in an investigation, compliance review, hearing or any other activity related to the administration of WIA. 3 EXHIBIT B 25B-24 Administration responsibility for this Equal Opportunity/Affirmative Action (EO/AA) Program is delegated to the Equal Employment Opportunity (EEO) Officer for the Santa Ana local Workforce Investment Area. Equal opportunity and non- discrimination, however, will only be achieved through leadership and implementation of a viable Affirmative Action Equal opportunity Program. 2. Civil Rights No one applying for or enrolled in the Workforce Investment Act (WIA) programs may be discriminated against because of race, color, creed, handicap, national origin, sex, age, political affiliation, or beliefs. This means that — for any of the characteristics listed above: You may not be denied the opportunity to enroll in WIA. No benefits or services maybe denied you for discriminatory reasons. ® You may not be segregated or treated any differently from other applicants or participants, while you are being registered, interviewed, counseled or tested; or while you are working or attending classes as part of the program. • You must be provided an equal chance to use all facilities available in the program. Fair employment practices must be provided to all staff with regard to recruiting, hiring, transferring, promotions, training, compensation, benefits, layoff, and termination. You have the right to make a complaint if you feel you have been denied any of the above opportunities. You cannot in anyway be penalized for filing a complaint. Your WIA sponsor has established a mechanism for handling complaints and grievances. Your complaint must be filed within 180 days. All complaints will be handled confidentially. 3. Nondiscrimination Laws under WIA Title VI of the Civil Rights Act of 1964 Prohibits discrimination on the basis of race, color, national origin, or religion. The Age Discrimination Act of 1975 Prohibits arbitrary discrimination against persons age 40-70. The Rehabilitation Act of 1973 EXHIBIT B 25B-25 Prohibits discrimination based on handicap. Title IX of the Education Amendments of 1972 Prohibits discrimination in any education or training program or activity receiving federal financial assistance. OTHER CIVIL RIGHTS LAWS Title VII of the Civil Rights Acts of 1964 Prohibits discrimination in employment based on race, color, religion, sex, or national origin in all terms and conditions of employment and establishes the Equal Employment Opportunity Commission as the administrative agency. White House Executive Order no. 11246 as Amended by Executive Order No. 11375 Creates the office of Federal Contract Compliance and prohibits discrimination based on race, color, sex, religion, or national origin. Department of Labor Secretary's Order no. 4-73 Prohibits discrimination based on sex. Equal Pay Act of 1963 Prohibits pay differential solely because of sex. Emergency Employment Act of 1971 Prohibits discrimination based on race, creed, national origin, political affiliation, or beliefs. 4. Flow to File Your Complaint a. Put your complaint in writing. b. Have it sworn to before a notary public, if possible. c. Provides details that tell what happened, where it happened and when it happened. d. Give the name and addresses of all persons who were present or who had anything to do with the matter. ,..Complaints on the basis of race, color, or national origin, age, sex, religion, political affiliation or belief, retaliation and citizenship, must be filed within 180 days of the alleged occurrence directly with: s EXHIBIT B 25B-26 Director Civil Rights Center U.S. Department of Labor, Room N-4123 200 Constitution Ave., NW Washington, D.C. 20210 Complaints on the basis of handicap must be filed within 180 days of the alleged occurrence. These complaints must be filed directly with the WIA administrative entity. The WIA administrative entity shall issue a written decision within 30 days of the filing of the complaint. If the complaint is still unresolved, an appeal may be made to the Chief of State Workforce Investment Division Office. The Department of Labor, the Civil Service Commission, the Equal Employment opportunity Commission, and many other offices and agencies are committed to assuring equal employment opportunities for all persons. They will protect you. A case may be taken to court if the other processes do not yield satisfactory results. You may hire your own lawyer, or if you cannot afford one, the court may appoint one for you. It is unlawful for an employer, union, or employment agency to punish you or any witness for attempting to present the facts in a case. YOUR CIVIL RIGHTS UNDER THE WORKFORCE INVESTMENT ACT Santa Ana Local Workforce Investment Area 1000 E. Santa Ana Blvd., Ste 200 Santa Ana, CA 92701 (714)565-2600 B. Criminal Complaints In accordance with the WIA (P.L. 105-200) and the implementing code of Federal section 667.600.... Federal handling of criminal complaints and report fraud, abuse and other criminal activity. "All information and complaints involving fraud, abuse or other criminal activity shall be reported directly and immediately to the City of Santa Ana and the Secretary of Labor." fl. General Procedures for Handling Non -Criminal Violations of the Act The following procedure is promulgated to meet the requirements of Title 20, of the Code of Federal Regulations, Section 667.600 through 667.640 of the WIA regulations, and Section 181(c) of the Act (Public Law 105.200: 29 U.S. Code Sec. 2931 et seq.) at the State and LWIA 6 EXHIBIT B 25B-27 level for the receipt, investigation, hearing, and resolution of complaints by WIA participants, sub recipients, applicants for participation, or financial assistance, labor unions, community based organizations, or any other persons. These procedures provide for resolution of non -criminal complaints arising from the operation of the Santa Ana LWIA. A complaint is defined here as a written expression by a party alleging a violation of the Act, regulations promulgated under the Act, recipient grants, sub agreements, or other specific agreements under the Act, including terms and conditions of employment of such participants in employment training programs. All complaints, amendments and withdrawals shall be in writing. These procedures are intended to resolve matters which concern policies, procedures or action(s) arising in connection with WIA programs operated by each LWIA grant recipient and sub recipient under the Act. These procedures shall not be construed as affecting any other available legal remedy outside of the WIA complaint process (i.e., disputes regarding terms and conditions of employment of any employee who is not a participant), either separately or simultaneously, that a person may wish to pursue in the resolution of a non-WIA complaint. Also, these procedures do not restrict the LWIA grant recipient staff in carrying out informal discussion Procedures do not restrict the LWIA grant recipient staff in carrying out informal discussion and resolution of any problems outside of and without resort to the formal complaint procedure. A. The following principles and rules apply to all complaints at all steps of the complaint procedures: 1. All complaints must be made in writing within 180 days of the alleged occurrence, except complaints alleging fraud or criminal activity. 2. All persons filing a complaint shall be free from restraint, coercion, reprisal, or discrimination. Good faith efforts shall be made to informally resolve the complaint prior to the scheduled hearing. Complainants have the right to withdraw their complaints (in writing) at any time prior to the hearing. A complainant may amend his/her complaint to correct technical deficiencies but not to add issues. 3. Complainants shall have the right to be represented at their own expense by person(s) of their choosing at all levels of the complaint process. 4. Upon enrollment into employment or training, participants shall be provided with a written description of these procedures, including notification of their right to file complaints and instructions for filing. An employer of participants, including private -for-profit employers of participants, may use this or other complaint resolution procedures so long as the participant is informed of the complaint resolution procedure they are to follow and the time frames governing review of complaints are met. 7 EXHIBIT B 25B-28 A "participant", within the meaning of these procedures, is an individual who receives employment -training services under a program funded by Santa Ana LWIA. The Complaint Resolution Procedures contained herein (or the alternative procedures which an employer may use) shall be available to participants to resolve disputes regarding items and conditions of employment of such participants in employment training programs. However, such procedures shall not be used to resolve disputes regardinq terms and conditions of employment of any employee who Is not a participant, as defined herein. 5. If a complaint does not receive a decision at the LWIA grant recipient level within 60 days of filing the complaint or receives an unsatisfactory decision, the complainant then has a right to request a review of the complaint by the Governor. 6, Complainants must initially file and exhaust LWIA grant recipient/hearing procedures prior to appealing to the State except where the State determines that the LWIA grant recipient's procedures are not in compliance with the State's procedures. III. Procedures for Handling Complaints at the LWIA Level A. Receipt Complaints Pursuant to the WIA regulations found at 20 CFR, Section 667.600, the LWIA administrative entities have the responsibility to conduct hearings and resolve complaints made by individuals about the administration of programs in the LWIA. "LWIA level" encompasses LWIA administrative entity and employers to which the administrative entity has delegated the complaint resolution process. The following comprise the guidelines for resolving issues arising in connection with WIA programs operated by the Santa Ana LWIA including resolutions of complaints arising from actions, such as audit disallowances or the imposition of sanctions taken by the Governor with respect to audit findings, investigations or monitoring reports. 1. Form and Filing of Compliant Official filing date of the compliant is the date the written complaint is received. The filing of the complaint with the Santa Ana LWIA Equal Employment Opportunity Officer shall be considered as a request for hearing and a decision must be issued within 60 days. The complaint must be in writing and must be signed and dated. The complaint should also contain the following information: a. Full name, telephone number, if any, and mailing address of the complainant; b. Full name, telephone number, and mailing address of the agency involved (respondent); c. Clear and concise statement of facts including dates constituting alleged violation, s EXHIBIT B 25B-29 d. What provisions under the Act, regulations, grant or other agreements under the Act, are believed to have been violated; e. Remedy sought by the complainant; and If the complainant is a private or public entity or corporation, and not a natural person, the filing of the complaint must be duly authorized by the governing body of such entity or corporation. The absence of any of the requested information shall not be a basis for dismissing the complaint. A copy of the complaint must be sent to the respondent and both parties notified of the opportunity for an informal resolution. At each step of the complaint process, the complainant must be notified in writing of the next procedural step. 2. Informal Conference Informal conferences will be utilized by the Santa Ana LWIA to resolve complaints; however, such informal conferences shall not extend the time within which a decision must be issued after receipt of a complaint. Attempts at informal resolution will commence with two (2) weeks of the date of filing of the complaint. a. The EEO Officer will review the case and ascertain facts prior to the conference so that appropriate resolution can take place at the time of this meeting whenever possible. b. Although the complainant should be encouraged to attend this conference, his/her failure to do so should not preclude his/her right to request a hearing on the matter, c. If mutually satisfactory resolution results and the Santa Ana LWIA concurs, the EEO Officer will write a brief report for the file stating the issues and resolution. The matter shall then be considered closed, d. If resolution does not result, the complainant shall be provided the necessary information and assistance to request a hearing if he/she so desires. 3. Request for Hearing a. As in the case of the complaint, the request for a hearing should be put in writing and be filed in person or by mail. A governing board resolution of authorization to appeal should also be submitted when appropriate. The request should be filled with: Anita Queen Sr. Personnel Analyst — EEO Officer 20 Civic Center Drive, M-24 Santa Ana, CA 92701 (714•) 647-5157 9 EXHIBIT B 25B-30 A hearing will be scheduled by the EEO Officer within thirty (30) days of the date of filing of the complaint. 4. Notice of Hearing Upon receipt of the request for hearing, the complainant and the respondent will be notified in writing of the hearing ten (10) calendar days prior to the date of the hearing. The ten-day notice may be shortened with the written consent of the parties. A decision will be issued by the Santa Ana LWIA within sixty (60) days of the date of filing of the complaint. The hearing notice shall be in writing and contain the following information: a. The date of notice, name of the complainant, and the name of the party against whom the complaint is filed. b. The date, time and place of hearing before an impartial hearing officer. c. A statement(s) of the alleged violation(s) d. Advise as to where information or assistance may be obtained, and the name, address, and telephone number of the Santa Ana LWIA Equal Employment Opportunities (EEO) Officer who can answer inquiries. B. Conduct of Hearing The hearing shall be conducted in an informal manner with strict rules of evidence not applicable. Unnecessary technicalities should be avoided. It should provide the flexibility to enable adjustment to the circumstances presented. The hearing officer shall have complete independence to obtain facts and make decisions. The hearing officer shall be in a position to render impartial decisions and thus should not be subordinate to the Santa Ana LWIA or its sub recipients. The hearing officer will be selected from a list of names on file with the EEO Officer, 2. Full regard must be given to the requirements of due process to insure a fair and impartial hearing. The hearing office designated by the EEO Officer to function in a quasi-judicial capacity should begin the hearing by summarizing the record and the Issue and should explain the manner in which the hearing will be conducted, making sure that everyone involved understands the proceedings. Such explanations should be adapted to the needs of the specific situation. The hearing officer might take testimony under oath or affirmation to give some assurance of veracity to the hearing. 10 EXHIBIT B 25B-31 4. The burden of proof should be reasonable and flexible, dependent upon the circumstances of the case involved. The hearing officer determines the order of proof, Generally, the party making the complaint has the obligation of establishing his or her case and should be examined first. 5. The party involved should have the right to be represented (at their own expense) if he/she so desires. Other he/she is limited to his/her own abilities and those to the hearing officer in obtaining testimony in the case. 6. It is important that the hearing officer obtain the fullest information for the record. If the parties involved, or their representatives, do not know how to ask the right or pertinent questions in pursuing their right to due process, it shall be necessary for the hearing officer to step in to have all the materials and relevant facts elicited. The practice in informal hearings is generally not to apply strict rules of evidence in obtaining facts. However, the quantity of evidence required to support a decision on an issue should be sufficiently credible that the state (or other appropriate agency), upon reviewing the decision, would conclude that the decision is supported by substantial evidence. 8. The hearing officer should attempt to negotiate a resolution of the issue at any time prior to the conclusion of the hearing. 9. Within ten (10) days of the conclusion of the hearing, the hearing officer will issue a recommended decision to the LWIA for final determination. The recommended decision shall be in writing and may be accepted, rejected or modified by the Santa Ana Workforce Investment Board. C. Issuance of Decision Within sixty (60) calendar days of filing of the complaint, the Santa Ana LWIA shall issue a written decision to all parties by first class mail. The final decision shall contain the following information: 1. The name of the parties involved. 2. A statement of the alleged violation and issues related to the alleged violation. 3. A statement of the facts. 4. The decision and the reasons for the decision. 5. A statement of corrective action, if any, to be taken. 6. Notice of the right to request, within ten (10) calendar days of receipt of the decision, a review of the decision by the State Review Panel. D. Record of Hearing sa EXHIBIT B 25B-32 An administrative file containing support documents on the complaint resolution process hearing conducted will be retained by the Santa Ana LWIA. The purpose of a record is to serve as substantiation of the process followed by the Santa Ana LWIA on the resolution of the issues and the results, This information would then be available for subsequent review in the event the matter is raised with the State. Such records must be retained for a three- year period after the grant has been officially closed out. The Santa Ana LW IA's written decision will be included in the record. Evidence received at the hearing, notes by the hearing officer, stenographers notes and tape recordings may also be used. E. Establishment of Complaint Procedures In accordance with Section 667.600, each employing agency including private -for-profit employers of participants under the Act is required to establish a complaint procedure for resolving matters relating to the terms and conditions of employment. Employers may operate their own grievance system or may utilize the Santa Ana LWIA's established procedures under Section 667,600. At a minimum these procedures must include: Written notice, upon enrollment into employment training services, of the scope and availability of such procedures. Employer's grievance procedures shall be set forth in a written document and must meet the regulation mandate that a complaint will be resolved with sixty (60) days from the date the complaint was filed, A copy of employer's grievance procedure shall be provided to each participant upon enrollment in employment training. Written notice, at the time the grievance is filed, of the procedures under which the grievance will be processed. Written notification of the disposition of the grievance and a written decision shall be issued within thirty (30) days of the filing of the grievance unless a present and long established grievance specifically provides other limits; and 4, Written notification of the participant's right to request a review of the employer's decision by the Santa Ana LWIA and the State Review Panel in accordance with Section 667.600. IV. Procedures for Handling Complaints at the State Level Section 181 (c) of the Act and the WA regulations at 20 CPR, Section 667.600 (d) requires the Governor to establish a State Review process of complaints filed at the LWIA grant recipient level and of complaints initially filed at the State level. Appeals of decisions issued at the LWIA level including audit disallowances and sanctions shall be reviewed by the State Review Panel. The State Review Panel shall review the record established at the LWIA level and shall issue a decision based on the information contained therein. 12 EXHIBIT B 25B-33 Complaints which may be initially filed at the State level will be heard by an independent hearing officer designated by the State Workforce Investment Division (WID). The hearing officer shall conduct a hearing and issue a recommended decision to the State Panel. The recommended decision shall be in writing and may be accepted, rejected or modified by the State Review Panel. A. Form and Filing of Complaint. 1. Request for State Review of LWIA Level Decisions On receipt of a complainant's request for review because of an unsatisfactory decision, the State shall provide for an independent state review. 2. Filing of Requests for State Review The State Review Panel shall review all LWIA level decisions when a request for review is filed within 10 days of receipt of the adverse decision. Such requests must be filed in writing with the Chief of the WID Office. The request for review should contain the following information: a. Full name, address, and telephone number of the party requesting the review b. Full name, address, and telephone number of the other party c. A copy of the decision d. Brief statement of reasons for review or the section of the LWIA decision to be reviewed including regulatory and statutory citations e. A statement of the relief sought. 3. Complainant Responsibility It is the responsibility of the complainant to include in the request for review a written statement setting forth the facts presented at the LWIA hearing which support the requested relief. The Chief, WID, shall mail a copy of the request for review to the other party and to the LWIA. It shall be the responsibility of the LWIA to submit the complete record including a typed record of the hearing to the Chief, WID, within ten (10) days. B. Conduct of Hearings. 1. Request for Hearing at the State Level If no decision has been issued at the LWIA level or the State has determined an audit disallowance or imposed sanctions, the complainant may request a hearing. The 13 EXHIBIT B 25B-34 hearing officer will then issue a recommended decision to the State's Review Panel for final determination. 2. Filing for Request for Review The request for a State hearing shall be filed within ten (10) days after LWIA should have issued a decision or ten (10) days after the issuance of the audit disallowance or sanction. The request shall be filed directly with the Chief of the WID in writing and should include the following: a. Full name, address, and telephone number of the LWIA b. Name, address, and telephone number of the LWIA C, Copies of complaints made at LWIA level from which no decisions were issued or sanctions and imposed. A statement of basis for the request for hearing. 3. Evidentiary Hearing Upon receipt of the request for a State level hearing, a hearing before a designated hearing officer will be scheduled. The hearing will be recorded mechanically or by court reporter. Both parties concerned will have the opportunity to present oral and written testimony under oath, to call and question witnesses in support of his/her position, to present oral and/or written arguments, to examine records and documents relevant to the issue(s), and to be represented. The hearing officer shall issue a written decision, which shall be forwarded to the State Review Panel for final determination. The State Review Panel may accept, reject or modify this recommendation. The decision of the State Review Panel is final except for audit disallowances, which must be approved by the Secretary of Labor C. State Review Panel The State Review Panel will consist of a panel of three representatives from the Employment Development Department: one from the Legal Offices, one from the WID, and one from the Director's office. The panel will issue a written decision, which will be sent to the appropriate parties within thirty (30) days of receipt of the request for State review. Decisions issued by this panel, under the authority of the Governor, are final. 14 EXHIBIT B 25B-35 1V/ D. Issuance of State Review Decision, The State review will be limited to violations of the WIA, implementing WIA regulations or the grant agreement. This review shall be limited to the record established at the LWIA hearing. Procedures for Handling Discrimination Complaints by Participants. A. Complaints on the basis of race, color, or national origin, age, sex, religion, political affiliation or belief, retaliation, and citizenship, where appropriate, must be filed within 180 days of the alleged occurrence. It is the responsibility of the Santa Ana LWIA's Equal Employment Opportunity (EEO) Officer to determine jurisdiction and to make the complainant aware of and provide assistance in filing a complaint in accordance with the Santa Ana LWIA's procedure under Section II (A). 15 EXHIBIT B 25B-36 No later than 180 days of alleged discrimination Within 10 days of receipt of unsatisfactory decision or 10 clays from date LWIA decision should have been Issued. Handling of complaints filed at LWIA level arising in connection with WIA proprom.s operated by tWIAs Informal Resolution Process o Unsatisfactory Decision or LWIA Decision not issued within 60 days N Request for State Review �—1 w Governor's Decision issued by State Review Panel If no decision issued by State Review Panel 16 EX IBIT B 25B-37 K rem 01611 In cases where areas of authority overlap, it is the responsibility of the EEO Officer to advise the complainant of the existence of State, Federal and other proper action agencies, which may also have a bearing. 3. Complainants alleging discrimination under this part will be made aware of their right to file directly with the Office of Civil Rights (OCR), U.S, Department of Labor and applicable procedures. 4. Complainants must file their complaint directly with: Anita Queen Sr. Personnel Analyst —EEO Officer 20 Civic Center Drive, M-24 Santa Ana, CA 92701 (714)647-5157 A. Procedures for Handling Handicap Complaints by Participants Complaints alleging discrimination on the basis of handicap will be filed and processed under the Department of Labor regulations implementing Section 504 of the Rehabilitation Act of 1973 at 29 Code of Federal Regulations Section 32. 1. Complaints must exhaust the Santa Ana LWIA's informal resolution procedures before filing their complaint with OCR. 2. Complainants will be made aware of the 180 days requirement in which to file his/her complaint. A. Procedures at the LWIA Level The complainant shall file his/her complaint directly with the Santa Ana LWIA. Upon receipt of the complaint, the EEO Officer shall investigate and gather information concerning the complaint. 2. An informal conference will be held with the parties concerned in an effort to resolve the issue(s). The complainant has the right to be present and may be represented during the conference. 3. The Santa Ana LWIA shall issue in writing its decision to the complainant no later than thirty (30) days after the filing of the complaint. B. Procedures at the State Level 1. The complainant may appeal to the State if he/she is not satisfied with the decision of the Santa Ana LWIA. v EXHIBIT B 25B-38 2. The Complainant must file hls/her appeal as a request for review directly with the Chief WID within ten (10) calendar days after the receipt of the Santa Ana LWIA's decision. 3. The Chief-WID, shall issue a decision no later than thirty (30) calendar days after receipt of the request for review. 4. After the complainant has received a decision or no decision has been received from the Director of Employment Development Department (on behalf of the Governor), the complainant has the right to appeal his/her complaint within thirty (30) calendar days to the Office of Civil Rights (CCR) with the Department of Labor. 18 EXHIBIT B 25B-39 'PROCEDURES No later than 180 days of alleged discrimination Filed within 30 days of LWIA/State Decision or 90 days from date of Initial filing of complaints Filing of complaint on the basis Of Handicap with LWIA Informal Resolution If no resolution reached Request for Hearing Notice of Hearing Hearing Conducted LWIA Decision Unsatisfactory Decision or No Decision o State Review Governor's Decision Appeal to Assistant Secretary Department of Labor 19 EXHIBIT B 25B-40 Day 1 Day 145 Day 60 Days GLOSSARY OF WIA TERM AGE DISCRIMINATION ACT — A law passed by Congress in 1975 which prohibits discrimination on the basis of age by any program or activity receiving Federal Funds. APPLICANT — An individual who applies to a subrecipient or contract for services provided under WIA and who has not yet transitioned to the status of participant. ASSESSMENT — Services designed to determine each participant's employability, aptitudes, abilities and interests and to develop a plan to achieve the participant's employment and related goals; also to identify the available employment and traning activities appropriate for the participant. Testing and counseling may also be used during assessment process. CHARGING PARTY (CP), COMPLAINANT. GRIEVANT, OR AGGRIEVED PERSON — The person who charges that he/she has been discriminated against under Department of Justice nondiscrimination and civil rights regulations and/or guidelines. DISCRIMINATION — In general, a failure to treat all equally, whether intentional or unintentional; the effect of an action, policy or practice which selects an individual or class of persons to receive unequal treatment. ELIGIBLE NON -CITIZEN — Lawfully admitted permanent resident, aliens, lawfully admitted refugees, and parolees and other individuals authorized by the Attorney General to work in the United States. EMPLOYER — An employer subject to the provisions of the Civil Rights Act of 1964, as amended, including state and local governments and any Federal agency subjects to the provisions of Section 717 of the Civil Rights Act, as amended; and any Federal contractor or subcontractor covered by executive Order 11246, as amended. GRIEVANCE — An allegation that something imposes an illegal obligation or burden or denies some equitable or legal right, or causes injustice . HANDICAPPED INDIVIDUAL — Any individual who has a physical or mental disability that constitutes or results in a substantial handicap to employment. INTAKE — Includes screening to determine eligibility; to select from eligible applicants those individuals who are most in need and can benefit from program services; to complete procedural requirements necessary to enroll an individual into the program and to refer those not enrolled to other programs. JOINT COMPLAINT — A complaint of employment discrimination covered by Title VII or the Equal Pay Act and by Title VI or Title IX. Individual "joint complaints" are normally investigated by EEOC 20 EXHIBIT B 25B-41 unless OCR has a compelling reason to investigate. "Joint complaints" alleging discrimination in employment and other practices and pattern or practice "joint complaints" are normally investigated by OCR. JURISDICTION — Authority to investigate and resolve complaints against an institution subject to a law or statute which has been assigned to OCR for enforcement, i.e., Title VI, Title IX, etc. PARTICIPANT — Any applicant who has: (1) Been determined eligible for participation upon intake; and (2) Who is receiving subsidized employment, training or services (except post -termination services) funded under the Act, following intake, except for an individual who receives only outreach and/or intake and assessment services. 21 EXHIBIT B 25B-42 EXHIBIT C 25B-43 CERTIFICATION REGARDING LOBBYING CERTIFICATION FOR CONTRACTS, GRANTS LOANS and COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief, that: 1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress 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 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 Form to Report Lobbying." in accordance with its instructions. 3) The undersigned shall require that the language of this certification be included in the award documents for all s.ubawards at all tiers (including agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into, Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. 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 occurring on or before October 23, 1996, and of not less than $11,000 and not more than $110,000 for each such failure. Grantee/Contractor Organization Signature Name of Certifying Official Signature Date EXHIBIT C 25B-44 EXHIBIT D 25B-45 Certification Regarding Drug -Free Workplace Requirements The certification set out below is a material representation upon which reliance is placed by the U.S. Department of Housing and Urban Development in awarding the grant. If it is later determined that the contractor knowingly rendered a false certification, or otherwise violates the requirements of the Drug -Free Workplace Act, the U.S. Department of Housing and Urban Development, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug -Free Workplace Act. CERTIFICATION A. The contractor certifies that it will provide a drug-free workplace by: (a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing a drug-free awareness program to inform employees about— (1) The dangers of drug abuse in the workplace; (2) The contractor's policy of maintaining a drug-free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance program; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (c) Making it a requirement that each employee who will be engaged in the performance of the grant be given a copy of the statement required by paragraph (a); (d) Notifying the employee in the statement required by paragraph -(a) that, as a condition of employment under the contract, the employee will - Pg. 2 (1) Abide by the terms of the statement; and (2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction. EXHIBIT D 25B-46 (e) Notifying the U.S. Department of Housing and Urban Development within ten days after receiving notice under subparagraph (d)(2) from an employee or otherwise receiving actual notice of such conviction; (f) Taking one of the following actions, within 30 days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted - ( 1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (g) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (a), (b), (c), (d), (e) and (f). B. The contractor shall insert in the space provided on the attached "Place of Performance" form the site(s) for the performance of work to be carried out with the grant funds (including street address, city, county, state, and zip code) ,the contractor further certifies that, if it is subsequently determined that additional sites will be used for the performance of work under the contract, it shall notify the U.S. Department of Housing and Urban Development immediately upon the decision to use such additional sites by submitting a revised "Place of Performance" form. Organization Authorized Signature Date EXHIBIT D 25B-47 DIVISION OF EMPLOYMENT SERVICES PLACE OF PERFORMANCE FOR CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS Name: Name of Contractor: Contractor Number: Date: The Contractor shall insert in the space provided below the site(s) expected to be used for the performance of work under the contract covered by the certification: Place of Performance (include street address, city, county, state, zip code for each site): EXHIBIT D r EXHIBIT E 25B-49 BUDGET FORM Administrative Cost (Not to Program Exceed 10%) Cost M & i care ( 413 481 8,4 _ ,... 32.431 &ETT 189 18 4 er's i )enation 53.51 14 !13 Match/In 1 Total j.. 116.4 679.1 1,461.5 Le a g Se.. .vices _J._.. ......, .� Auditing Services Wirect Cost* Staff Training* 25B-50 11 25B-51 Budget Narrative Personnel Salaries: Executive Director (Erick Briggs) — 1 Part Time Employee - $ 60,000.00 Coordinator (Mike Marinoff) —1 Part Time Employee -$ 50,000.00 Accountant— I Part Time Employee -$ 5,405.00 Operating Expenses: As MikeMarinof£com and Network ICinection, LLC are already doing the same service and has the necessary materials and resources needed to carry out the program, we narrowed down the expenses to just Office Expenses. Office Expenses are equally chargeable to both programmatic and administrative activities. The supplies used will be paper, printer toners, envelopes, folders, note pads, labels, binders, clips, stamps, and other small but necessary items to carry out both functions. No budget is applied to Vehicle Lease despite of the hefty mileage the project is expected to have as all vehicle costs, including broad form general liability and automobile liability coverage with a $1,000,000 minimum coverage, will be shouldered by MikeMarinoff.com and Network Kinection, LLC. EXHIBIT E 25B-52 EXHIBIT F 25B-53 ASSURANCES Contractor agrees that in addition to those agreements and obligations specified in the contract boilerplate, attached exhibits and scope of work, it will also adhere to and obey the following provisions, assurances, and certifications. Prohibited Uses. Contractor assures and certifies that it will not use any funds appropriated under this agreement for religious activity or anti -religious activity, or to promote or oppose any political candidate, parties, and/or beliefs. Modification. Contractor assures and certifies that any requested modification to this agreement must be submitted in writing, explaining requested changes and rationale. Contractor further assures that no modification will be implemented without prior written approval from the Santa Ana WORK Center. 3. Cooperation. Contractor agrees to cooperate with any monitoring inspection audit or investigations of activities related to this Agreement as may be scheduled and conducted by the Santa Ana WORK Center. 4. Acknowledgement. Contractor agrees to acknowledge (give credit to) the Santa Ana WORK Center in all oral presentations, written document publicity, and advertisements regarding any activities that ensue from this Agreement. 5. Intellectual Property Rights. The federal Government reserves a paid-up, nonexclusive and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use for federal purposes: !)the copyright in all products developed under the grant, including a subgrant or contract under the grant or subgrant; and ii) any rights of copyright to which the grantee, subgrantee or a contractor purchases ownership under an award (including but not limited to curricula, training models, technical assistance products and any relataed materials). Such uses include, but are not limited to, the right to modify and distribute such products worldwide by any means, electronically or otherwise. Federal funds may not be used to pay any royalty or licensing fee associated with such copyrighted material, although they may be used to pay costs for obtaining a copy which are limited to the developer/seller costs of copying and shipping. If revenues are generated through selling products developed with grant funds, including intellectual property, these revenues are program income. Program income is added to the grant and must be expended for allowable grant activity. 6. Product Creation. If applicable, the following needs to be on all products developed in whole or in part with grant funds: "This workforce solution was funded by a grant awarded by the U.S. Department of Labor's Employment and Training Administration. The solution EXHIBIT F 25B-54 was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This solution is copyrighted by the institution that created it. Internal use, by an organization and/or personal use by an individual for non-commercial purpose, is permissible. All other uses require the prior authorization of the copyright owner." EXHIBIT F 25B-55 EXHIBIT G 25B-56 Certification Regarding Debarment, Suspension, Ineligibility and Voluntazy Exclusion Lower Tier Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 29 CFR Part 98, Section 98.510, Participants' responsibilities, The regulations were published as Part VII of the May 26,1988 Federal Register (pages 19160-19211). (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION - Attached) (1} The prospective recipient of federal assistance fiinds certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. (2) Where the prospective recipient of federal assistance fiends is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Name and Title of Authorized. Date . 25B-57 INSTRUCTIONS FOR CERTIFICATION By signing and submitting this proposal, the prospective recipient of federal assistance funds is providing the certification as set out below, 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective recipient of federal assistance funds knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the Department of Labor (DOL) may pursue available remedies, including suspension and/or debarment. 3. The prospective recipient of federal assistance fiords shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective recipient of federal assistance funds learns that its certification was erroneous when submitted or has become erroneous by reason of changed cirewnstances. 4. The terms 'covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluuitatily excluded," as used in this clause, have the meanings set out in the Definitions and. Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. The prospective recipient of federal assistance funds agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in tivs covered transaction, unless authorized by the DOL. 6. The prospective recipient of federal assistance funds further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and voluntary exclusion - Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded, from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to check the List of Parties Excluded from Procurement or Non - Procurement Programs. 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debvwed, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the DOL may pursue available remedies, including suspension and/or debarment. 25B-58 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: AGREEMENT FOR MAIL PROCESSING SERVICES WITH PITNEY BOWES PRESORT SERVICES, INC. {STRATEGIC PLAN NO. 7,51 CITY MAN ER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: UT0040irl ❑ As Recommended ❑ As Amended ❑ Ordinance on 18'Reading ❑ Ordinance on ZoReading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with Pitney Bowes Presort Services, Inc., subject to non -substantive changes approved by the City Manager and City Attorney, to provide mail processing services for a three-year period beginning November 3, 2015 and expiring October 31, 2018, in an amount not to exceed $20,000 annually, with provision for two, one-year extensions exercisable by the City Manager and City Attorney. DISCUSSION The Finance and Management Services Agency Central Services Division ("Central Services") currently utilizes Pitney Bowes Presort Services, Inc. ("PBPS") to pick up and process City mail. PBPS is a presort house that barcodes and presorts the mail by zip code. When mail is barcoded and presorted, PBPS delivers the items to the local United States Postal Service ("USPS') processing facility and subsequently USPS assesses the City a reduced postage rate for utilizing the service. In addition to standard mail, the City mails out various Bulk mailings for City functions including but not limited to, Business Tax and Dog Licensing. These mailings necessitate the use of envelopes with a pre-printed permit imprint indicia. PBPS is permitted for this service with the USPS and processes these large mailings on behalf of the City. On July 3, 2006, an agreement was approved for Pitney Bowes Presort Services, Inc. to provide City mail processing services. The agreement has ended and staff was directed to conduct research to determine the availability of other vendors who may provide similar services. The Central Services division solicited price quotes and two vendors responded for the pick-up, sort and delivery of regular mail, and bulk mailings. A summary of offers received is as follows: 25C-1 Agreement with Pitney Bowes Presort Services, Inc. For Mail Processing Services November 3, 2015 Page 2 Vendor Location 191itTi It was determined that United Business Mail in Vernon, CA, is non-responsive as they could not meet the City's end of business day pick-up for the Santa Ana area. PBPS remains the national provider of presort services for First -Class Letters, Flats, and Standard Mail partnered with the USPS. Utilizing Pitney Bowes Presort Services ensures City business mail is processed in a cost effective and timely manner. For the reasons set forth, Staff recommends the approval of this agreement. 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.) FISCAL IMPACT Annual allocations of $20,000 will be budgeted and available in the Finance/Management — Central Services account (no. 07110100 62300) for expenditure in the following fiscal years: Contract Period Fiscal Year Amount 2015-16 (Nov — Jun) $14,000 2016-17 $20,000 2017-18 $20,000 2018-19 (Jul -Oct) $ 6,000 APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez?ems Executive Director Finance and Management Services Agency EG/DH Exhibits: 1. Agreement Renewal Period Fiscal Year Amount 2018-19 (Nov — Jun) $14,000 2019-20 $20,000 2020-21 $ 6,000 25C-2 Letters -Metered $0.016/ea. Pitney Bowes Presort Services, Inc. Rancho Dominquez, CA Letters- Permit $0.019/ea. Pick-up time daily 4:30 PM United Business Mail Vernon, CA Price offer not received. It was determined that United Business Mail in Vernon, CA, is non-responsive as they could not meet the City's end of business day pick-up for the Santa Ana area. PBPS remains the national provider of presort services for First -Class Letters, Flats, and Standard Mail partnered with the USPS. Utilizing Pitney Bowes Presort Services ensures City business mail is processed in a cost effective and timely manner. For the reasons set forth, Staff recommends the approval of this agreement. 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.) FISCAL IMPACT Annual allocations of $20,000 will be budgeted and available in the Finance/Management — Central Services account (no. 07110100 62300) for expenditure in the following fiscal years: Contract Period Fiscal Year Amount 2015-16 (Nov — Jun) $14,000 2016-17 $20,000 2017-18 $20,000 2018-19 (Jul -Oct) $ 6,000 APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez?ems Executive Director Finance and Management Services Agency EG/DH Exhibits: 1. Agreement Renewal Period Fiscal Year Amount 2018-19 (Nov — Jun) $14,000 2019-20 $20,000 2020-21 $ 6,000 25C-2 ;,v, -aiba; vicc. MASTER SERVICES AGREEMENT This Master Services Agreement ("Agreement") by turd between Pitney Bowes Presort Services, Inc., a Delaware corporation, ("PBPS") with offices located at 10110 I Street, Omaha, NE 68127, and City of Santa Ana, a California municipality ("Client") with offices located at 20 Civic Center Plaza, Santa Ana, CA 92701, is entered into as of November 3, 2015 ("Effective Date"). For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto mutually agree as follows: 1. Services Provided By PBPS. PBPS will provide the agreed upon services as described in the Staternent(s) of Work (each an "SOW") attached hereto or added from time to time and incorporated herein by this reference. The terms of this Agreement shall apply to each SOW attached hereto, except as expressly provided in any SOW. This Agreement and each SOW, to the extent reasonably possible, will be construed to be consistent with each other. If and to the extent, however, that this Agreement and any SOW cannot reasonably be construed as consistent with each other, then (i) tie SOW will control with respect to its subject matter and (ii) this Agreement will control in all other respects. 2. Client's RespOnsibilitle5. Client must present only mail prepared in compliance with all United States Postal Service' ("USPS") regulations and all other applicable laws, rules, and regulations and meeting the requirements as set forth in the SOW, 3. Pees For Services. For the services provided by PBPS, Client shall pay the fees specified in each SOW. Effective not earlier than the last week in January each year, and upon thirty (30) days prior written notice to Client, the fees set forth in the applicable SOW will be subject to an annual adjustment based upon 'increases in the most current published Consumer Price Index for the previous twelve month period, as indicated in the column for Urban Wage Earners and Clerical Workers, U.S. City average (base index year 1982-1934=100) as published by the Bureau of Labor Statistics. 4, Invoices. PBPS shall submit monthly invoices to Client at the address specified in the signature block for Client, or such other address as is specified by Client to PBPS in writing. Such invoices shall show the total number of mail pieces handled, the fees charged, postage, and such other information as PBPS may elect to include on its invoices. Invoices shall be due within thirty (30) calendar days from die date of the invoice; arrangements may be made for payments by bank to bank transfer. If Client fails to make any undisputed payment when due, PBPS may, upon five (5) days prior written notice, suspend performance under this Agreement until such payment is made, and any amounts owed and past due for services rendered or expenses incurred shall bear interest at a rate of one and one-half percent (1.5%) per month or the maximum amount allowed by law (if less) until paid, An amount is not in dispute unless Client, in good faith, has notified PBPS in writing by the due date that it disputes the charges in the invoice and has provided sufficient detail for PBPS to research and respond to such dispute. Client payment for postage paid by PBPS to the USPS on behalf of Client shall be as set forth in, the SOW. Client will be responsible for any and all excise, sales and/or use taxes, and like charges imposed with respect to the services provided by PBPS hereunder. PBPS shall be responsible for any and all taxes and like charges based upon or determined by reference to the net income of PBPS. 5. Warranty - Disclaimer. PBPS shall perform all duties and obligations required of it pursuant to this Agreement in a professional and workmanlike manner and in accordance with accepted presort mail processing industry standards. EXCEPT AS SET FORTH IN THE IMMEDIATELY PRECEDING SENTENCE, PBPS MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE SERVICES AND ANY SUCH WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED. 6. Compliance. Each party shall comply with all applicable local, state and federal laws and regulations, including USPS rules and regulations, labor and employment laws and regulations, immigration laws and regulations, health and safety laws and regulations, environmental laws and regulations and data privacy laws and regulations. 7. Term. This Agreement shall be in force and effect for a period of three years from the Effective Date ("Initial Term"). This Agreement may be extended for two (2) additional one-year periods ("Renewal Terms") by a writing executed by PBPS and by Client's City Manager and City Attorney. Notwithstanding the foregoing, the specific term of any SOW shall be as set forth in the SOW. If this Agreement is terminated while any SOW is still in effect, Tile terms and conditions of this Agreement shall continue to govern the SOW until such time as the SOW expires or is Page 1 0l' Id Proprietaryand Confidential Information PBPS Contract Management — Rev November 2013 25C-3 otherwise terminated. If no specific term is set forth in the SOW, the SOW shall be coterminous with this Agreement. The total sum to be expended by Client for fees (including postage reimbursement) under this Agreement shall not exceed twenty thousand dollars ($20,000) annually, including for any Renewal Terms. 8. Events of Default. The occurrence of any of the following events will constitute an Event of Default hereunder: (a) a material breach of this Agreement or any SOW unless cured within a period of thirty (30) days after written notice of such breach is given to the defaulting party by the other party hereto; or (b) a party becomes insolvent or makes a general assignment for the benefit of creditors, or takes advantage of any insolvency act, or comrnences a case or other proceeding naming the party as debtor tinder the United States Bankruptcy Code, or any proceeding is instituted against the party seeking liquidation of the party or the party's assets and the party fails to take appropriate action resulting in the withdrawal or dismissal of such proceeding within thirty (30) days, or there shall be appointed a receiver, liquidator, conservator, trustee or similar official in respect of the assets of the party. 9. Rights and Remedies Upon Default. Upon an Event of Default, the non -defaulting party may, at its option: (a) terminate this Agreement immediately upon written notice to the defaulting party or upon any future date specified in such notice; or (b) continue this Agreement, without waiving the defaulting party's continuing obligation to cure; and, in either case the non -defaulting party may take whatever action at law or in equity as may appear necessary or desirable in its judgment to enforce performance of any obligation under this Agreement or seek damages for such breach. 10, Early Termination, This Agreement or any SOW may be terminated prior to the end of its term as then in effect upon the occurrence of any of the following events: (a) an Event of Default set forth in paragraph 8 above, following which the non -defaulting party elects to terminate the Agreement or the affected SOW; or (b) as permitted under a SOW in the event that the USPS adopts any new postal regulations, procedures, rates or incentives that directly impact the services. 11. Force Majeure. PBPS shall maintain a commercially reasonable business continuity plan; provided, however, PBPS shall not be responsible for or incur any liability for arty delay or failure in performance of any service or obligation tinder this Agreement and shall be excused from the performance to the extent that PBPS is prevented, restricted, delayed or interfered with by causes beyond its control, including but not limited to acts of God, fire, floods, severe weather, explosions, utility or communication failures, earthquakes, wars (declared or undeclared), labor disputes, strikes, lockouts, riots, epidemics, acts of terrorism, blockades, embargoes, government orders or requirements having legal effect of any government or anyjudicial authority, or any other situations, whether similar or dissimilar to those referred to in this clause, which are beyond the reasonable control of PEPS ("Force Majeure"). In case of a Force Maj otue event, PBPS will notify Client as soon as reasonably possible by whatever means are available. PBPS shall not be liable for the loss of any postage savings, and Client shall reimburse PBPS for the difference between the contracted postage discount rate and any postage upgrades required to submit the mail while the Force Majeure effects continue. 12. Confidentiality. "Confidential Information" means all confidential and proprietary information of either party ("Disclosing Party"), including, each party's: (i) customer and prospect lists, suppliers and terms of existing agreements with business partners and other third parties; (ii) pricing, financial and other business information, data processes and plans, security measures, business continuity and disaster plans, policies and procedures; (iii) research and development information, analytical methods and procedures, hardware design, technology and non-public personnel data; (iv) information concerning or belonging to the customers and potential customers of either party; (v) business practices, know-how, including but not limited to Trade Secrets (as defined by applicable law), and marketing or business plans; (vi) this Agreement, any orders and training materials; and (vii) any other information identified in writing as confidential or information that the receiving party knew or reasonably should have known was confidential, disclosed to the other party ("Receiving Party") or to which the Receiving Party gains access in connection with this Agreement, The parties acknowledge that Receiving Party may be provided, have access to or be. exposed to Confidential Information of the Disclosing Party. The Receiving Party agrees (i) to hold the Disclosing Party's. Confidential Information in strict confidence, and apply at least the standard of care used by the Receiving Party in protecting its own Confidential Information, but not less than a reasonable standard of care, and (ii) not to disclose such Confidential Information to any third party or use such Confidential Information except as reasonably required to exercise its rights or perform its obligations tinder this Agreement or upon written permission of the Disclosing Party. Each party agrees to cause its employees, agents, subcontractors or other persons over whom the Receiving Party has control and who require access to such information, to abide by such obligations. The foregoing obligations do not apply to information that: (i) is already public or becomes available to the public through no breach of this Agreement; or (ii) was lawfully in the Receiving Party's possession before receipt from the Page 2 of 14 Proprietary end Confidential Information P13PS Contract Management — Rev November 2013 25C-4 Disclosing Party; or (iii) is lawfully received independently from a third party who is not bound by a confidentiality obligation to Disclosing Party; or (iv) is independently developed by or on behalf of the Receiving Party without use of the Disclosing Party's Confidential Information. If compelled by a requirement of a government agency, a court, or by law or discovery to disclose any of the Disclosing Party's Confidential Information, the Receiving Party will, unless prohibited by law or order, notify the Disclosing Party in writing prior to making any disclosure in order to provide the Disclosing Party a reasonable opportunity to either waive any objection to such disclosure or request a remedy from the appropriate authority. The Receiving Party will reasonably cooperate with the Disclosing Party in its efforts to obtain such a remedy. If the Disclosing Party waives its objections or is unsuccessful in its request or fails to make such a request, the Receiving Party will furnish only that portion of the Confidential Information that is legally required. 13. Independent Contractor. It is expressly understood and agreed that each party will act as an independent contractor and that this Agreement is not intended and shall not be construed to create the relationship of agent, servant, employee, partnership, joint venture or other association between Client and PBPS. Neither party may make any commitments binding on the other, nor may either party make any representation that they are acting for, or on behalf of, the other, unless otherwise specified in writing and signed by the parties. Neither party nor the employees of such party performing any obligation hereunder shall be considered to be employees of the other party for any purpose, including but not limited to, compensation for services, employee welfare and pension benefits, fringe benefits of employment or workers' compensation insurance. 14. Insurance. PBPS shall at all times during the term of this Agreement maintain commercially reasonable insurance for loss from property damage, bodily injury, death, and workers' compensation claims appropriate to the services provided. 15, LIMITATION OF LIABILITY. PBPS' TOTAL LIABILITY TO CLIENT RELATING TO THIS AGREEMENT, WHETHER BASED ON CONTRACT OR TORT, UNDER LEGAL OR EQUITABLE GROUNDS, SHALL BE LIMITED TO THE REASONABLE COST TO RECREATE THE AFFECTED MAIL PIECES, BUT NOT TO EXCEED THE FEES PAID BY CLIENT TO PBPS DURING THE SIX (6) CALENDAR MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVNG RISE TO THE LIABILITY, AND N NO EVENT SHALL SUCH LIABILITY EXCEED THE LIMITS OF ANY APPLICABLE INSURANCE CARRIED BY PBPS. N NO EVENT SHALL PBPS BE LIABLE TO CLIENT FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY, STATUTORY, SPECIAL, OR CONSEQUENTIAL DAMAGES OF ANY I{IND WHATSOEVER, INCLUDING BUT NOT LIMITED TO LOSS OR DEMAND AGAINST THE CLIENT BY ANY TIIIRD PARTY, EVEN IF PBPS HAS BEEN ADVISED OF, KNEW, OR SHOULD HAVE KNOWN THE POSSIBILITY OF SUCH DAMAGES, ARISING OUT OP, OR RELATING TO THIS AGREEMENT. CLIENT FURTHER AGREES THAT IN NO EVENT SHALL PBPS BE LIABLE FOR ANY DAMAGES OR INJURIES, NCLUDING BUT NOT LIMITED TO CLEAN UP COSTS, RESULTING FROM OR N CONNECTION WITH ANY HAZARDOUS SUBSTANCE, EXPLOSIVE, OTHER POLLUTANT OR SIMILAR SUBSTANCE, CONTAINED IN MAIL SUB.MrI TED BY CLIENT. 16. Indemnification. Each party agrees to indemnify, defend, and hold hams ess the other from and against any liability, loss, cost, expense, claim, or damage, including reasonable attorneys' fees, in any action or claim brought by any third party, alleging bodily injury (including death) to the extent caused by the negligent aot/omission or willful, misconduct of the indermrifying party. In addition, Client shall indemnify, defend and hold harmless PBPS from all damages and injuries, including clean up costs and claims by third parties, resulting from or in connection with any hazardous substance, explosive, other pollutant or similar substance contained in mail submitted by Client. 17. No Third Party Beneficiaries. The parties intend that there shall be no third party beneficiaries under this Agreement, and that no person or entity, except the parties hereto, shall have any rights or remedies under this Agreement, including the right to bring any action on account of its breach or in any relation to it whether in contract, in tort, or otherwise. 18. Headings. It is expressly understood and agreed that the paragraph headings which appear in this Agreement are 'untended solely for convenience of reference and shall not amplify, limit, modify or otherwise be used in the interpretation of any provision of this Agreement. 19. Integration. This Agreement, including all SOWS, exhibits, schedules and any addendum, appendices and attachments hereto or thereto which are incorporated herein by reference, constitutes the entire Agreement between the parties with respect to the subject matter hereof, and there are no other agreements, promises, covenants or conditions, oral or written, except as me set forth herein or in the schedules and addendum, appendices and attachments, if any. Any prior agreements between the parties with regard to similar services provided at any location covered by any SOW attached hereto are superseded by this Agreement, Page 3 of 14 Proprietary and Confidential Infonnation PBPS Contract Management — Rev November 2013 25C-5 20. Severability. If any provision of this Agreement, or portion thereof, is held to be invalid, illegal or unenforceable by a court of competent jurisdiction, such provision will be severed and the remaining provisions of phis Agreement will remain in force and effect. 21. Waiver. The failure to enforce any provision of this Agreement shall not operate as a waiver thereof nor preclude the enforcement of any such provision in the future. All waivers shall be in writing and signed by the party to be charged. 22. Modification, This Agreement may be modified only by a written document signed by the parties hereto. The terms and conditions of this Agreement shall supersede any and all standard terms and conditions on either party's preprinted forms, including but not limited to Purchase Orders, Pickup Slips and Invoices• 23. Assignment. Neither party may assign this Agreement without the prior written consent of the other party. Any assignment in. violation of this provision will be null and void. Notwithstanding the foregoing, without the other party's consent, either party may assign this Agreement in whole or in part to an affiliated company or a successor in interest of all or substantially all of the assets of such party, provided that, in the case of an assignment by Client, such affiliated company or successor in interest satisfies PBPS' creditworthiness standards. A party making such assigmnent shall promptly notify the other party in writing. This Agreement will be binding upon and inure to the benefit of the parties and their respective permitted successors and assigns. 24, Governing Law. This Agreement shall be governed by, interpreted, construed and enforced in accordance with the laws of the State of California without regard to its conflicts of law principles, irrespective of the fact that any one of the parties is now or may become a resident of a different state. 25. Notices. All notices, consents or waivers required or permitted in this Agreement shall be in writing and be deemed to have been duly given when (a) delivered personally; (b) upon transmission if sent by confirmed facsimile transmission; (c) upon delivery according to the records of an overnight courier service; or (d) upon USPS records if sent by certified mail (postage prepaid), using the fax numbers / addresses set forth immediately following the signatures of the parties hereto. A party may change its address for notice by notice satisfying the requirements of this paragraph 25. 26. Authorized Signature. Each party represents and warrants to the other that it has full and complete authority to enter and perform this Agreement and that the person signing in its behalf has been duly authorized to sign this Agreement. PBPS PITNEY BOWES PRESORT SERVICES, INC. Name: Title: Address: 10110 "I" Street Omaha, NE 68127-1189 Phone: 402-339-6500 Fax: 402-339-6588 Date Sigr ATTEST By:— Name: Maria D. Ruizar Clerk of Council Proprietary and Confidential Information PBPS Contract Management – Rev November 2013 CLIENT CITY OF SANTA, ANA Name: David Cavazos Title: City Manager Phone: Fax: Date Signed: RECOMMENDED FOR APPROVAL Name: Page 4 of 14 25C-6 APPROVED AS TO FORM By:__� , Name: _ John M`Trunk Title: Assistant City Attorney Page 5 of 14 Prohrietaiy and Confidential Giformation PBPS Contract Management— Rev November 2013 25C-7 STATEMENT OF WORK NO, 1 FIRST CLASS MAIL This Statement of Work ("SOW") is entered into as of November 3, 2015, ("Effective Date") pursuant to the Master Services Agreement (the "Agreement") dated November 3, 2015, between City of Santa Ana ("Client") and Piracy Bowes Presort Services, Inc. ("PBPS"), the torms of such Agreement being incorporated herein by this reference, and governing this SOW for First Class Mail services. 1. Services Provided By PBPS, PBPS will pick up the Client's pre -metered, permit imprint or pre carected stamp mail, whichever applies, at Client's designated address(es) as specified on Schedule 1.0, barcode (if not pre-batcoded by Client), sort said mail at PBPS's business location and submit said mail to the United States Postal Service" ("USPS"). Provided that the mail is prepared by Client according to the Mail Specifications and is made available for pick up by PBPS on or before the daily pick up times specified on, or mutually agreed as permitted by, Schedule 1.0, the mail shall be submitted to the USPS on the same USPS business day ("Same Day") or the fallowing USPS business day ("Next Day's as specified on Schedule 1.0. Client agrees that, in performing its services pursuant to this Agreement, PBPS may move Client's mail from one PBPS operating center to another PBPS operating center as permitted by the USPS. Additional locations or distinct mailstreams may be assignecl their own Schedule 1.x, e.g., 1.1, 1.2, etc. Any reference to Schedule 1.0 also applies to any Schedule Lx. 2. Quantity of Mail. Client will provide the approximate number of pieces of mail per day and per month for pick up and processing as specified on Schedule 1.0, but not less than all of the presort compatible mail produced at the facility. 3. Pees For Automated Presort Services. For First-Classe automated presort services provided by PBPS, Client shall pay the fees specified on Schedule 2.0. Additional locations or distinct mailstreams may be assigned their own Schedule 2.x, e.g., 2.1, 2.2, etc. Any reference to Schedule 2.0 also applies to any Schedule 2.x. 4. Fees For Other Services. For other services provided by PBPS, Client shall pay the fees specified on Schedule 3.0. Additional locations or distinct mailstreams may be assigned their own Schedule 3.x, e.g, 3.1, 3.2, etc. Any reference to Schedule 3.0 also applies to any Schedule 3.x. 5. Postage Payment, If Client uses permit mail, pre -meters mail at the 5 digit automation rate or regularly requires PBPS to mater mail on Client's behalf, Client will maintain a postage deposit or otherwise pay for such postage in advance of processing. The method and amount of such deposit or advance payment is set forth on Schedule 4.0. Additional locations or distinct mailstreams may be assigned their own Schedule 4.x, e.g., 4.1, 4.2, etc. Any reference to Schedule 4.0 also applies to any Schedule 4.x. . 6. Mail Specifications. Client's mail shall meet all USPS requirements for automation compatible mail as set forth in the Domestic Mail Manual ("DMM") and its attendant documentation applicable to each type of mail submitted and the requirements set forth in this paragraph 6 ("Mail Specifications"). 6.1. Presentation: Client's mail shall be submitted to PBPS upright in trays with all envelopes facing in the same direction, properly addressed and scaled. if Client's avail is (i) pre -metered, it shall be affixed with the correct postage rate, the correct data and appropriate "pre-sorted" notations; (it) permit imprinted, it shall be separated and presented by the correct weight and affixed with the appropriate "pre-sorted" and indiala imprint and a return address; (iii) pre -canceled stamp, it shall be affixed with a pre -canceled stamp and shall contain a return address. Client shall complete and sign pick up slips at each location indicating the number of trays and/or pieces of mail to be processed by PBPS. If Client pre -meters its mail, Client - shall provide PBPS with its current license numbers, and notify, PBPS within five (5) business days of any changes. Client agrees to promptly execute or produce all PBPS or USPS documents to meet requirements of the USPS. Client further agrees to make appropriate changes in the way Client addresses and handles its mail as reasonably requested by PBPS and as required by the USPS. 6.2. Barcode Requirements: 6.2.1, If Client pre-barcodos its mail, Client must: (1) utilize the USPS Coding Accuracy Support System (CASS) to satisfy the USPS zip code accuracy requirements in Delivery Point Validation; and (2) apply only barcodes compliant with the then current Full Service Intelligent Mail Barcode (IMb) requirements of the USPS. 6.2.2. If Client is not pre-printing a barcode on its mail, Client must leave a clear zone as specified in the DMM and the paper must be nomglossy. 6.3. Move Update Requirements: USPS regulations require that mailers utilizing First Class discounted postage rates select one or more authorized tuovo-update options. Client will utilize the authorized move -update option(s) indicated on Schedule 5.0. If Client utilizes the PBPS Move Update Solution, additional terms and conditions applicable to such services are set forth on Schedule 5.0. Additional locations or distinct mailstmams may be assigned their own Schedule S.x, e.g., 5.1, 5.2, etc. Any reference to Schedule 5.0 also applies to any Schedule 5.x. 6.4. Readability: PBPS expects that mail meeting the Mail Specifications will process on its equipment at a 97% roadability rate or better, meaning that PBPS can read the address and obtain a valid delivery point on the first pass. If PBPS observes that Client's mail readability rate has degenerated, PBPS will provide Client with samples of the rejected mail and recommendations to resolve the readability and/or address accuracy problems. Client will cooperate with efforts to promptly restore the readability rate to reasonable levels. Page 6 of 14 Pieprietary and Confidential Information PBPS Contract Management — Rev April 2014 25C-8 6.5. Client's mail failing to meet the Mail Specification requirements of this paragraph 6 may be suhjcct to return of the mail, exception handling or ancillary fees set forth on Schedules 2.0 and 3.0, and/or USPS penalties. Client shall promptly, upon receipt of appropriate documentation, reimburse PBPS for all penalties or assessments levied against PBPS by the USPS as a result of Client's (or its customer or print provider) improper preparation and finishing of its mail. Client acknowledges such penalties and assessments may 'include additional postage charged to all or most of a combined mailstream as presented by PBPS and not just for Client's portion of that combined mailaromr. 7. USPS Changes. Notwithstanding any other language in the Agreement or this SOW regarding pricing or changes, in the event the USPS adopts any new/revised postal regulations, procedures, rates, or incentives that directly affect the cost or provision of the services, PBPS may modify or terminate this Agreement on fifteen (15) clays written notice to Client. 8, Fixed Rate Pricier, 8.1. Except in the case of USPS changes as described above, the fees set forth in this SOW are fixed for the Initial Tenn set forth below. 8.2. Client will be charged the amounts set forth herein regardless of whether the actual postage qualification rates for Client's mail are higher or lower that the postage discount rate set forth on Schedule 2.0 and 3.0. Client hereby authorizes PBPS to receive and retain any USPS postage refunds, incentives or rebates based on the amount of Client's mail that qualifies for any lower presort mailing rates to PBPS, and all such refunds, incentives or rebates will become the property of PBPS as part of its compensation for performance of the services, (ref for metered mail USPS form 8096). 9. Terns. This SOW shall be in full force and effect for a period of three (3) year(s) from the Effective Date ("Initial Teri'). This SOW may be extended for two (2) additional one-year periods ('Renewal Terms") by a. writing executed by PBPS and by Client's City Manager and City Attorney. Other than a notice provided relative to this paragraph of this SOW governed by the Notice provision of die Agreement, all other written notices permitted or required under this SOW or the Schedules attached hereto, may be accomplished by e-mail with system delivery confirmation. The total sum to be expended. by Client for fees (including postage reimbursement) under this SOW shall not exceed twenty thousand dollars ($20,000) annually, including for any Renewal Terms, PBPS CLIENT PITNEY BOWES PRESORT SERVICES, INC. CITY Of SANTA ANA Name: Name: David Cavazos Title: City Manager Date Signed,_ _.....__. Date ATTEST By. -- RECOMMENDED FOR APPROVAL, Name:__Maria_D­__Huizar __ _... Name: Clerk of Council APPROVED AS TO FORM By: , Name: John M. gunk Title:_gaSistant 'itv- t torney Page 7 of 14 Proprietary and Confidential Information PBPS Contract Management— Rev April 2014 25C-9 SOW #1 - SCHEDULE 1.0 ADDRESSES AND TIMES FOR MAIL, PICK UP Upon mutual agreement PBPS and Client may add Client locations where the services will be made available. PBPS reserves the right to decline services at any Client location if the factors of Average Daily Volume and distance to the nearest PAPS facility make providing the services commercially unreasonable, For current locations, PEPS will pickup Client's mail at the address(es) specified below. Client shall assemble and make available for pick up its mail on such schedule as may be mutually agreed upon by the parties, in writing (e-mail is sufficient), with the initial schedule set forth below. Client Location PBPS LocationP(ck Up Times) Pick Up Time(s) Average Dolly Same Da Dated Noxt Da Dated Volamez City of Santa Ana Rancho Dominguez, CA 4:30 PM N/A 1,000 20 Civic Center Plaza Santa Ana CA 92701 Notes., 1 — All pick up times are local time zone Monday through Friday, excluding holidays, unless otherwise noted. First Class Flat mail may be picked tip at the same done as First Class letter marl; however such Flat mail is always Next Day. In the event that the mail is not ready at the agreed time and PBPS is able to wait for the snail, while PBPS will use reasonable efforts to meet the regular schedule, such delay may result in the mail being submitted to the USPS one business (lay later than scheduled. 2 - Client and PEPS agree that there is no minimum guaranteed volume required under this SOW; however, Client acknowledges that PBPS's pricing is based upon receiving the Client estimated volume. Client will provide the approximate average daily volume of mail set forth above.£or each location, for pick up and processing by PBPS. If the average daily volume submitted decreases by 20% or more during any calendar quarter; it may be presumed that a reasonable pricing adjustment is appropriate and the parties shall negotiate in good faith to agree upon such adjustment and issue an amended Schedule(s) to this SOW, PBPS Initials Date Client initials Date Page 8 of 14 Proprietary and Confidential Information ^ _ O PBPS Contract MamL nage ent—Rev April 2014 SOW 01 - SCHEDULE 2.0 FEES FOR AUTOMATED PRESORT SERVICES For automated First Class® presort services provided by PBPS for mail meeting the Mail Specification requirements, read and accepted on the first pass through PBPS's mail processing equipment, Client shall pay to PBPS the following: 2.1 Postage and Presort Fee. 2.1.1 Metered/Permlt Postaee and Presort Fee. Client shall meter the First Class mail, or be charged for postage on First Class permit indicia mail, at the then current USPS Discount Rate designated below for each mail type and small pay the presort fee per piece as shown below for the applicable mail type and service level: Notes: 1 - Automation compatible First Class Flats must meet the following specifications: (1) 0 to 8 ounces; (2) up to %s inch thick; (3) up to 13 inches in length; (4) windowed flats must be glassine sealed with no gaps; and (5) otherwise meeting the Mail Specification requirements of this SOW ("Automated Flats"). 2 - All Flats meeting the Mail Specifications, but not meeting the Automated Flats specifications listed above ("Non - Automated Flats"). 3 — Client shall pay the designated presort fee for non -automation compatible First Class letter mail over 2 ounces metered or permit at the Mixed AADC rate. 2.1,2 Postage' Discount Rates at the time of this SOW are attached hereto as Appendix A. 2.2 Special Handlbtg: First Class mail otherwise meeting the Mail Specifications, but which requires additional handling due to the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee for: 2.2.1 6"x9" of $ NIA per piece. 2.2.2 #14 envelopes of $ NIA per piece. 2.2.3 Negotiables (including checks, stocks certificates, cash, debit/crodit/gilt cards) of $ N/A per piece. 2.2,4 Other: N,N/A, of $N/A per piece. 2.3 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM"), including mail that fails Delivery Point Validation ("DPVFM' ), mail with a pre-printed bareodo that is not Full Service IMb compliant, mail that can't be barcoded, or which for any other reason PBPS cannot mechanically road and process as a. Full Service IMb compliant mailpiece as a result of the way the mail was prepared by Client, including but not limited to poor print quality, incompatible fonts and incorrect addressing (collectively "Exception Mail"), will be charged the above Presort Fee plus any applicable Exception Handling. Fee as set forth below. The per piece amount of each Exception Handling Fee is related to USPS rates and may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will male reasonable efforts to process Exception Handling mail the same day, such mail may be delayed because of the extra handling necessary to meet USPS preparation requirements. ?BPS may re -date and submit such delayed mail the following business day. 2.3.1 Machine Rejected Mail (MRM) and Delivery Point Validation (DPV, Fees: In the event that the readability of Client's mail (or a specific trail type or job) has degraded and Client has not been successful in restoring the readability as provided in paragraph 6.4 of this SOW, PBPS may upon fifteen (15) days advance written notice, initiate charging (or revise) the MRM/DPV Pee. The MRM/DPV Fee will be applied to a percentage of Client's mail representing the Exception Mall, as determined by the most recent readability report attached to the notice. The M'RIvI/DPV Fee will be applied to such percentage regardless of the actual number of pieces of Exception Mail on any given day. Client may request a more recent readability report be used to determine the Exception Mail percentage applied, if Client has taken steps to improve the mail readability. PBPSTnitials Date Client Initials Do(. Page 9 of 14 Proprietary and Confidential Information PBPS Contract Management—Rev Apr112014 _ v Presort Fee Per Piece Mail lype USPS Discount Rate Same Day Next Da Letters—Metered Mixed AADC $0.016 $N/A Letters—Permit Mixed AADC $0.019 $N/A Letters—Non-Automated Mixed AADC $0.05 $N/A Postcards—Metered Presort $0.012 $N/A Postcards — Permit Prosort $0.012 $N/A Automated Flats — Metered N/A .$N/A $N/A Automated Flats —Permit N/A $N/A $N/A Non -Automated Flats —Metered NIA Non -Automated Flats -Permit NIA Notes: 1 - Automation compatible First Class Flats must meet the following specifications: (1) 0 to 8 ounces; (2) up to %s inch thick; (3) up to 13 inches in length; (4) windowed flats must be glassine sealed with no gaps; and (5) otherwise meeting the Mail Specification requirements of this SOW ("Automated Flats"). 2 - All Flats meeting the Mail Specifications, but not meeting the Automated Flats specifications listed above ("Non - Automated Flats"). 3 — Client shall pay the designated presort fee for non -automation compatible First Class letter mail over 2 ounces metered or permit at the Mixed AADC rate. 2.1,2 Postage' Discount Rates at the time of this SOW are attached hereto as Appendix A. 2.2 Special Handlbtg: First Class mail otherwise meeting the Mail Specifications, but which requires additional handling due to the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee for: 2.2.1 6"x9" of $ NIA per piece. 2.2.2 #14 envelopes of $ NIA per piece. 2.2.3 Negotiables (including checks, stocks certificates, cash, debit/crodit/gilt cards) of $ N/A per piece. 2.2,4 Other: N,N/A, of $N/A per piece. 2.3 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM"), including mail that fails Delivery Point Validation ("DPVFM' ), mail with a pre-printed bareodo that is not Full Service IMb compliant, mail that can't be barcoded, or which for any other reason PBPS cannot mechanically road and process as a. Full Service IMb compliant mailpiece as a result of the way the mail was prepared by Client, including but not limited to poor print quality, incompatible fonts and incorrect addressing (collectively "Exception Mail"), will be charged the above Presort Fee plus any applicable Exception Handling. Fee as set forth below. The per piece amount of each Exception Handling Fee is related to USPS rates and may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will male reasonable efforts to process Exception Handling mail the same day, such mail may be delayed because of the extra handling necessary to meet USPS preparation requirements. ?BPS may re -date and submit such delayed mail the following business day. 2.3.1 Machine Rejected Mail (MRM) and Delivery Point Validation (DPV, Fees: In the event that the readability of Client's mail (or a specific trail type or job) has degraded and Client has not been successful in restoring the readability as provided in paragraph 6.4 of this SOW, PBPS may upon fifteen (15) days advance written notice, initiate charging (or revise) the MRM/DPV Pee. The MRM/DPV Fee will be applied to a percentage of Client's mail representing the Exception Mall, as determined by the most recent readability report attached to the notice. The M'RIvI/DPV Fee will be applied to such percentage regardless of the actual number of pieces of Exception Mail on any given day. Client may request a more recent readability report be used to determine the Exception Mail percentage applied, if Client has taken steps to improve the mail readability. PBPSTnitials Date Client Initials Do(. Page 9 of 14 Proprietary and Confidential Information PBPS Contract Management—Rev Apr112014 _ v SOW #1 - SCITEDULE 2.0 (continued) FEES FOR AUTOMATED PRESORT SERVICES At the time of this SOW, the applicable MRM/DPV Fee applied to the determined percentage of Client's mail for each mail type and discount rate is set forth below: 2,3.2 IMb Downgrade; If Client pre-barcodes its mail with a barcode that is not Full Service IMb compliant or presents mail on which PBPS cannot print a Full Service IMb, Client may be charged an IMb Downgrade based upon any penalties, postage assessinents or forfeiture of discounts (collectively, "Downgrade') which may be imposed by the USPS on PBPS, based upon PBPS' calculation of Client's pro -rata share of such non-compliant mail. 2.4 Default Pricing Terms. Upon any Event of Default as defined in paragraph 8 of the Agreement, PBPS may elect to continue processing Client's mail, but will no longer accept any permit mail or meter any mail on behalf of Client, and Client will pre - meter all of its mall. Any mail that has not been metered will be returned to Client. Further, Client shall not pre -mater First Class nmil at the rates specified above, and instead shall pre -motor all First Class mail at the then -current Presort Rate, PBPS will rebate back to Client the difference between the Presort pre -metered rate and the contract pricing herein for mail processed at the Presort rate, after setting off against such rebate amount any sums then due from Client to PBPS pursuant to this Agreement. If Client fails to pre -meter the snail at the Presort rate, PBPS may pursue other options as permitted under the Agreernent. PBPSInitials Date Proprietary and Confidential Information PBPS Contract Management—Rev Aph12014 Page 10 of 14 25C-12 Client Initials Date NIRM FEE DPV FEE Mail Type USPS Discount Rate MRM Fee Per Piece Determined Percentage DPV Fee Per Piece Determined Percentage Letter's Mixed AADC $0.00 0% $0.00 0% Postcards Presort $0.0275 2.7% $0.047 2.7% Automated Plats N/A $N/A N/A $N/A N/A Non -Automated Flats N/A $N/A N/A $N/A N/A 2,3.2 IMb Downgrade; If Client pre-barcodes its mail with a barcode that is not Full Service IMb compliant or presents mail on which PBPS cannot print a Full Service IMb, Client may be charged an IMb Downgrade based upon any penalties, postage assessinents or forfeiture of discounts (collectively, "Downgrade') which may be imposed by the USPS on PBPS, based upon PBPS' calculation of Client's pro -rata share of such non-compliant mail. 2.4 Default Pricing Terms. Upon any Event of Default as defined in paragraph 8 of the Agreement, PBPS may elect to continue processing Client's mail, but will no longer accept any permit mail or meter any mail on behalf of Client, and Client will pre - meter all of its mall. Any mail that has not been metered will be returned to Client. Further, Client shall not pre -mater First Class nmil at the rates specified above, and instead shall pre -motor all First Class mail at the then -current Presort Rate, PBPS will rebate back to Client the difference between the Presort pre -metered rate and the contract pricing herein for mail processed at the Presort rate, after setting off against such rebate amount any sums then due from Client to PBPS pursuant to this Agreement. If Client fails to pre -meter the snail at the Presort rate, PBPS may pursue other options as permitted under the Agreernent. PBPSInitials Date Proprietary and Confidential Information PBPS Contract Management—Rev Aph12014 Page 10 of 14 25C-12 Client Initials Date SOW #1 - SCHEDULE 3.0 FEES FOR OTHER SERVICES For other services identified herein, Client shall pay to PEPS the following: 3.1 Ancillary Fees. PBPS reserves the right to charge the applicable fee for services performed to correct Client's mail not in compliance with the Mail Specifications. The ancillary services described below may also be performed upon request of Client. While PBPS will make reasonable efforts to process mail requiring additional services according to the scheduled service level, the required additional handling may result in the mail being delayed and submitted to the USPS on the following business day. Client will pay the applicable Ancillary Fee, as well as reimburse PBPS for any additional postage required, Charges for the ancillary services listed below arc as follows: 3,2 3.3 ervice Fee Per Piece unless otherwise indicated) Meter Date Correction $0.01 Missin Endorsement $0.01 Metering Fee—Letters $0.02 Motoring Fee — Flats $0.06 Mater Strip $0.10 Labeliu LMLM —Sorter $0,05 Labeling (LMLM) —Hand $0,05 +$25.00 per hour,perperson) Sticky Mail $25.00 per hour, per person — minimuml hour Billable Hourly Work $25.00 (per hour, per person — minimum 1 hour Excessive Waiting Time at Pickup: Straight truck or van $60,00 per hour (minimum 1/2 hour after 30 minutes) Excessive Waiting Time at Pickup: Tractor bailor $100.00 por hour (minimum 1/2 hour after 30 minutes) Transnortation, For the mail transportation services described in paragraph 1 of this SOW, Client shall pay PBPS a fee of $0_00 invoiced and payable according to the Agreement. Fuel Surcharge, In addition to the transportation fee set forth above, Client shall pay PBPS a fee of $0.00 per mail pick tip on account of fuel costs associated with performing the services described in this SOW. PBPS Initials Date Proprietary and Confidential Infbrmallon PHPS Contract Management— Rev April 2014 Page 1 I of lA 25C-13 Client Initials Date SOW #1 - SCHEDULE 4.0 POSTAGE PAYMENT 4.1 Postage Payment. If Client presents mail that requires PBPS to pay the USPS for postage on Client's behalf, Client will maintain apostage deposit or otherwise pay for such postage in advance of processing, using the method described below. 4.2 Initial Payment. Client shall provide not advance postage payment equal to an estimated one (1) months' worth of postage ($1,400.00) before submitting permit, 5 -Digit or unmetered mail for the first time under this SOW. 4.3 Payment Process. In addition to the initial payment, Client shall provide a postage payment for each month job sufficient to cover the estimated postage to be used during the following monthjob. Postage payment may be made by: 4,3,1 Client initiated payment to PBPS; or 4.3.2 Client authorization for PBPS to withdraw from Client's designated bank account Unless otherwise agreed by the parties in advance, such postage payment shall be made via electronic transfer. Client will receive a postage statement of postage charges and payment receipts for reconciliation purposes. Any shortage of postage funds received will be paid by Client with the next regular postage payment (but inany event no more than thirty days after service) and any excess postage Rinds received may be deducted from the next postage payment. 4.4 Interest. PBPS shall not be required to pay any interest to Client on such postage funds received Interest paid or fees charged by any banking entity, shall be between Client and the banking entity, 4.5 Return of Balance. Upon the termination of this SOW, PBPS shall return any excess funds to Client after all Fees for services and postage charges have been paid. to PBPS by Client. 4.6 Failure to Maintain. IF CLIENT FAILS TO MAINTAIN THE POSTAGE PAYMENTS AT THE TEIEN APPLICABLE LEVEL(S), PBPS MAY IMMEDIATELY SUSPEND ITS PERFORMANCE UNDER THIS SOW AND WILL, AT CLIENT'S OPTION, EITHER: (i) HOLD CLIENT'S MAIL UNTIL PAYMENT IS RECEIVED OR (ii) RETURN THE MAIL TO CLIENT, PBPS Initials Date Proprietary and Confidential Information P13P5 Contract Management— Rev April 2014 Page 12 of 14 25C-14 Client Initials Date CLIENT NAME AND ADDRESS: City of Santa Ana PDPS OPERATING CENTER: Rancho Dombtguez, CA MASTER SERVICES AGREEMENT DATE: November 3, 2015 SOW ill - SCHEDULE 510 MOVE -UPDATE REQUIREMENT 5.1 Move -Update Option. Client will complete a Certification of Move Update Compliance form as may be reasonably requested by PBPS from time to time to order to confirm the Move Update Option selected by Client on a job by job basis. Client's selections include the following move -update option(s): Indicate the selected option by placing an "X" in each column b to ion First Class First Class First Class Flat Mall Letter Mail Postcard Mail Not Applicable X A USPS approved Move Update Solution provided and utilized by Client X X PBPS Move Update Solution w/ PBV Protect (an MLOCR-based software application such as Siemens UMoveprovided by PBPS A USPS approved Move Update Solution provided and utilized by Client on all mail, except for designated jobs within the mail category type indicated in the column(s) to the right and as agreed by the parties on which PBPS shall utilize the PBPS Move Update Solution W/ PBV Protect Performance Based Verification (PBV) is the USPS testing to determine if a mail owner's addresses ore being updated as required by USPS Move Update Compliance regulations. Clients electing to rely on their own application of a USPS Move Update method will reimburse PBPS for any penalties or postage assessments imposed by the USPS clue to, or caused in part by, Client's mail which fails PBV, based upon PBPS's calculation of Client's pro -rata portion of such penalty or assessment for that day. Clients electing the PBPS Move Update Solution w/ PBV Protect will be insured against such penalties or postage assessments imposed by the USPS against PBPS, even if any of Client's enrolled mail fails the daily PBV. If Client has not selected the PBPS Move Update Solution w/ PBV Protect option, the remainder of Schedule 5.0 is not applicable. If Client has selected the PBPS Move Update Solution w/ PBV Protect option, such selection is governed by the terms of paragraphs 5.2 throagh 53 of Schedule 5..0. 5.2 Physical Requirements for PBPS Move Update Soludon: PBPS can only spray barcodes on mail pieces that are non -glossy with a sufficient clear zone in the lower right quadrant. Client will be required to use another approved Move Update method for non -conforming mail pieces. 5.3 PBPS Move Update Solution w/ PBV Protect - Fee: Application Fee of $ N/A per each piece of Letter/Postcard mail scanned. CLIENT HEREBY ACCEPTS AND AGREES TO THESE TERMS AND CONDITIONS FOR TILE MOVE UPDATE OPTIONS SELECTED ABOVE: Client: CITY OF SANTA ANA Name: David Cavazos Title: City Manager Pago 13 of ld Proprietary and Confidential information PBPS Contract Management — Rev April 2014 25C-1 5 APPENDIX A To Statement of Work No. 1 First Class Letters, Postcards and Flats - USPS Postage Discount Rates USPS Postage states as of May 31, 2015; Additional ounce postage as set by the USPS page 14 of 14 PublicjdO1 USAY Rales Pffrcloe f"Shown 25C-16 USPS Postage Rates - First Class Mail Letters Postage Rate to Level Postage 1 oz. Letter Full Rate Metered $0.485 1 oz. Letter Non -automation Presort $0.471 1 oz. Letter Mixed AADC $0.439 1 oz. Letter AADC $0.416 1 oz. Letter 3 -Digit $0.416 1 oz. Letter 5 -Di it $0.391 OX "111. 13 Postcard Postage Rate Level Postage Postcard Full Rate $0.350 Postcard Non -automation Presort $0.295 Postcard Mixed AADC $0.284 Postcard AADC $0.275 Postcard 3 -Digit $0.275 Postcard 5 -Digit $0.260 gg Flats Postage Rate Level Postage 1 oz. Flat Full Rate $0.980 1 oz. Flat Non -automation Presort $0.831 1 oz. Flat 3 -Digit $0.662 Additional ounce postage as set by the USPS page 14 of 14 PublicjdO1 USAY Rales Pffrcloe f"Shown 25C-16 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING., DATE; NOVEMBER 3, 2015 TITLE: AGREEMENT AMENDMENT WITH OVERDRIVE, INC. FOR DIGITAL CONTENT HOSTING AND DISTRIBUTION (STRATEGIC PLAN NO. 5,4B) �. y RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: T00If• f, © As Recommended EJ As Amended E Ordinance on 1®' Reading E Ordinance on 2n6 Reading EJ Implementing Resolution M 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 Overdrive, Inc. for digital content hosting and distribution, increasing the compensation by $25,000 for a total annual amount of $50,000, for the remaining term of February 27, 2013 through February 27, 2016, and renewal term of February 28, 2016 through February 28, 2018, subject to non -substantive changes approved by the City Manager and the City Attorney. DISCUSSION An agreement with Overdrive, Inc. began on February 27, 2013 to provide digital content hosting and distribution, such as downloadable e -books, e-audiobooks, and video streaming. The agreement terms include a hosting charge of $10,000 per year and $10,000 per year for content. In response to community demand, amendments were made to add $5,000 per year for additional content, for a total annual contract amount of $25,000. Since the Overdrive, Inc. collection has become an essential part of the E -Library service, a component of the City's Five -Year Strategic Plan, the Library proposes to make a third amendment to the agreement for an additional $25,000 per year for content for a total agreement amount not to exceed $50,000 per year through the remainder of the existing term and the renewal period. The additional $25,000 will be expended on e -books, e-audiobooks, and streaming video, and will increase the Library's digital collection from 1765 items to over 4,000 items. This expansion is required to ensure that the City of Santa Ana can offer its community digital resources comparable with those of other local library systems through the proposed Roosevelt -Walker E -Library, as well as the Library's two branches and two satellite locations. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy B (Improve 2513-1 Agreement Amendment with Overdrive, Inc. November 3, 2015 Page 2 neighborhood quality by locating or providing access to complementary services and public facilities, including access to healthy food options (community gardens, farmers' markets, corner markets, etc.) in neighborhoods.) FISCAL IMPACT Funds are available in the PRCSA Strategic Plan Projects -Contract Services -Professional account (no. 05213018-62300/15201701502-3090) for the following fiscal year: FY 2015-2016 - $25,000, FY 2016-2017 - $25,000, FY 2017-2018 - $25,000. Gerardo Mouet, Executive Director Parks, Recreation and Community Services Agency EXHIBIT: Agreement Amendment APPROVED AS TO FUNDS AND ACCOUNT: Francisco Gutierrez, Executive Director Finance and Management Services Agency J 25D-2 TI3IRD AMENDMENT TO DIGITAL CONTENT HOSTING AND DISTRIBUTION AGREEMENT THIS THIRD AMENDMENT to the above -referenced agreement is made and entered into on November 3, 2015 by and between OverDrive, Inc., a Delaware corporation ("Contractor"), and the City of Santa Ana, a charter city and municipal corporation organized and existing Linder the Constitution and laws of the State of California ("City"). RECITALS A. The parties entered into the Digital Content Hosting and Distribution Agreement #N-2013-018, dated February 27, 2013 ("Agreement"), by which Contractor agreed to host and distribute digital content to the Santa Ana Library. B. On June 27, 2013, the parties executed a First Amendment to Agreement #N-2013-018- 001, to include additional compensation for services pursuant to the Agreement. C. On May 20, 2015, the parties entered into a Second Amendment #N-2015-100, to include further additional compensation for services pursuant to the Agreement, D. The term of the Agreement is for a period of three years, from February 27, 2013 through February 27, 2016, and the Agreement remains in effect. Under its terms, the Agreement may be extended for an additional two-year period, E. The parties now wish to amend the Agreement to again increase the total annual compensation to be expended under the Agreement and also to extend the term of the Agreement. The Parties therefore agree: 1. Section 2, Compensation, is further amended to include an additional twenty-five dollars ($25,000) so that the total surn to be expended under the Agreement shall not exceed fifty thousand dollars ($50,000) annually. 2. Section 3, Term, is amended to extend the term of the Agreement for an additional two-year period, from February 28, 2016 through February 28, 2018. 3. Except as modified by this Third Amendment, and all prior amendments, all terns and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to the Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA MARIA D. HU.IZAR DAVID CAVAZOS Clerk of the Council City Manager --more signatures on following page -- 25D-3 APPROVED AS TO FORM SOMA R. CARVALHO City Attorney By: J M. FUNK{ Assistant City Attorney RECOMMENDED FOR APPROVAL OverDrive, Inc. GERARDO MOUET Nvne: Executive Director of Parks, Title: Recreation and Community Services Agency 25D-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2.015 TITLE: MEMORANDUM OF UNDERSTANDING WITH THE POLICE OFFICERS ASSOCIATION (STRATEGIC PLAN NO. 7,6) -, Z5� CITY MAN .R RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 0 As Recommended 0 As Amended M Ordinance on 1't Reading ® Ordinance on 2nd Reading C] implementing Resolution ® Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a Memorandum of Understanding with the Police Officers Association, subject to non -substantive changes approved by the City Manager and City Attorney, regarding wages and other terms and conditions of employment for a two-year period ending June 30, 2017. DISCUSSION The City and the Police Officers Association (POA) recently completed contract negotiations, resulting in a new Memorandum of Understanding. The provisions of this agreement include: 1) Term: A two-year term, from July 1, 2015 through June 30, 2017. 2) Salary: A 2.5% increase on both July 1, 2015 and July 1, 2016 with a "me too" guarantee to receive a higher salary increase if any other bargaining unit negotiates a greater increase. A salary survey will be conducted prior to July 1, 2016 to determine if an increase in excess of 2.5% in the second year of the contract is warranted. 3) Medical Insurance: The City's contribution toward medical insurance will be $1,420 per month per employee effective January 1, 2016 and $1,510 per month per employee effective January 1, 2017. 4) CALPERS retirement contributions: Effective July 1, 2015, non -sworn employees' contribution toward retirement costs will be reduced from 10.5% to 9% or an amount equal to the employee contribution of the Service Employees International Union (currently pending a reduction to 8%). 25E-1 Agreement with the Police Officers Association November 3, 2015 Page 2 5) Jail Staffing: Part-time employees will be incorporated into the scheduling and staffing of Jail operations. 6) Salary Administration: Effective July 1, 2015, the time required to move from Step D to Step E of a salary range will be reduced from 18 months to 12 months. In addition, employees will receive a minimum increase of 5% over current salary and certain non - continuing pay premiums when promoted. 7) Career Development Pay: Educational tiers eligible for incentive pay will be altered for employees hired on or after January 1, 2014. 8) Vacation: Effective January 1, 2016, regular and longevity vacation shall be combined into one bank of leave time. Maximum cash out shall be increased from 40 to 60 hours annually. After 80 total hours of vacation have been used, employees may cash out an additional 40 hours of vacation. 9) Reopeners: City and POA will meet and confer on the subjects of body -worn cameras and implementation of the Lexipol Policy Manual during the term of the agreement. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 — Team Santa Ana, Objective #6 - (Provide a positive workplace environment that supports the health of its employees and celebrates its success and Goals). FISCAL IMPACT This agreement will result in a cost of $1,550,000 during fiscal year 2015-16 and a cost of $3,190,000 during fiscal year 2016-17 for a total cost to the City of $4,740,000 during the term of the Memorandum. Funds are available in the Police Department salary accounts. APPROVED AS TO FUNDS AND ACCOUNTS: ward S a Francisco Gutierrez Executive Dir ctor Executive Director Personnel Se es Department Finance & Management Services Agency Exhibit 1: Memorandum of Understanding, POA 25E-2 JULY 1, 2015 - JUNE 30, 2017 MEMORANDUM OF UNDERSTANDING CITY OF SANTA ANA AND SANTA ANA POLICE OFFICERS ASSOCIATION 25E-3 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA POLICE OFFICERS ASSOCIATION FOR FISCAL YEARS 2015-16 THROUGH 2016-17 ARTICLE I ARTICLE II ARTICLE III ARTICLE IV ARTICLE V ARTICLE VI ARTICLE VII ARTICLE VIII ARTICLE IX ARTICLE X ARTICLE XI ARTICLE XII ARTICLE XIII ARTICLE XIV ARTICLE XV ARTICLE XVI ARTICLE XVII ARTICLE XVIII ARTICLE XIX ARTICLE XX ARTICLE XXI ARTICLE XXII ARTICLE XXIII ARTICLE XXIV ARTICLE XXV ARTICLE XXVI ARTICLE XXVII ARTICLE XXVIII EXHIBIT A EXHIBIT B EXHIBIT C TABLE OF CONTENTS RECOGNITION NON-DISCRIMINATION CLAUSE ATTENDANCE, WORK PERIOD, WORK SCHEDULE & WORKDAY SALARIES ASSIGNMENT AND OTHER SPECIAL PAY ADDITIVES CAREER DEVELOPMENT PROGRAM TRAINING AND EDUCATIONAL ASSISTANCE PROGRAM OVERTIME HOLIDAYS VACATION OTHER LEAVES OF ABSENCE EMPLOYEE INSURANCE RETIREMENT RELEASE TIME FOR ASSOCIATION REPRESENTATIVE SAFETY RESIDENCY DISCIPLINE GRIEVANCE REVIEW PROCEDURE DUES DEDUCTION AND INDEMNIFICATION CITY RIGHTS STRIKES AND WORK STOPPAGES LAYOFFS MISCELLANEOUS PROVISIONS SOLE AND ENTIRE AGREEMENT WAIVER OF BARGAINING DURING THE TERM OF THIS MOU SEPARABILITY PROVISION TERM OF MOU RATIFICATION AND EXECUTION 3 4 5 9 14 19 24 27 35 37 43 51 52 55 57 57 58 59 61 62 64 65 66 66 67 67 67 68 BASIC SALARY AND WAGE SCHEDULE MATRIX 70 ASSIGNMENT OF CLASSES TO SALARY RATE RANGES 72 UNIFORM ALLOWANCE BY CLASSIFICATION 74 2 25E-4 ARTICLE I 1.0 RECOGNITION 1.1 Pursuant to the provision of the Meyers-Milias-Brown Act, Government Code Section 3500, et seq., the City of Santa Ana (hereinafter called the "City") has recognized the Santa Ana Police Officers Association (herein called the "Association") as the recognized representative of the bargaining unit which includes Rill -time police. department employees in the sworn, "safety -member" classifications and assignments of Police Officer, Police Sergeant, and full-time police department employees in the non -sworn, "miscellaneous -member" classifications and assignments of Animal Service Officer I and Il, Background Investigator, Communications Services Officer, Correctional Officer, Correctional Supervisor, Crime Research Aide, Crime Research Analyst, Emergency Operations Coordinator, Firearms Examiner, Forensic Services Supervisor, Forensic Specialist I and Il, Parking Control Officer, Police Athletic/Activities League Assistant Director, Police Communications Supervisor, Police Community Services Specialist, Police Evidence and Supply Specialist, Police Evidence and Supply Supervisor, Police Investigative Specialist, Police Photo/Video Specialist, Police Property and Evidence Supervisor, Police Recruit, Police Service Officer, Police Services Dispatcher, Range master, Senior Parking Control Officer, and Traffic Services Specialist, as well as such classifications as may be added hereafter by resolution of the City Council. All other classifications not specifically listed are excluded from representation by the Association, 25E-5 ARTICLE I1 2.0 NON-DISCRIMINATION CLAUSE 2.1 The City and Association agree that they shall not discriminate against any employee in violation of State or Federal law. The City and the Association shall. 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 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. 25E-6 ARTICLE III 3.0 ATTENDANCE, WORI{ PERIOD, WORK SCHEDULE & WORKDAY 3.1 Attendance. Employees covered by this MOU shall be in attendance at their work location during hours prescribed by the Police Chief or his designee(s) and shall not absent themselves during prescribed hours without approval of the Police Chief or his designee(s). 3,2 Definitions. A. Standard Work Period. The Standard Work Period shall consist of a consecutive seven (7) day, 168 hour period, B. Alternative Work Period -207(k) Exempt Employees. The Alternative Work Period shall apply to all members of the Association who are peace officers, correctional officers or correctional supervisors who are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) pursuant to Section 207(k). The 207(k) employees' Work Period shall consist of a consecutive 28 day, 672 hour time period. In conformance with the FLSA, members who are peace officers, correctional officers, or correctional supervisors shall not be eligible for FLSA overtime, as defined under the FLSA for employees assigned to the Alternate Work Period until they have worked in excess of 171 hours in the Alternate Work Period. Nothing in this section shall prevent a peace officer, correctional officer or correctional supervisor from earning overtime and being compensated for overtime based on the overtime provisions as stated in Article VIII of this MOU, All overtime shall be paid at one and one-half (1 1/2) times the regular rate of pay. Regular Rate of Pay: Shall mean the base rate of pay and any Assignment and Other Special Pay Additives, Career Development Program Pay, Call -Back -Duty and Court Appearance pay as listed in Article V, VI and VIII. C. Work Hours. Work hours are the regularly scheduled hours of work as determined by the Police Chief or his designee. A "day" is defined as any consecutive 24 hour period. D. Work Schedules. At this time, the Police Chief has established the following work schedules. These schedules may be changed by the Police Chief subject to the provisions of the Meyers-Milias-Brown Act. Unless exigent circumstances exist, the Police Chief, or his designee, shall inform the Association prior to the changing of the below designated Work Schedules. Standard Work Period Schedules. a, 5/40 Work Schedule. Employees shall work five (5) eight hour workdays per seven (7) consecutive days, 168 hour Standard Work 25E-7 Period. Each workday shall consist of eight (8) hours of work and a 30 minute unpaid meal period. b. 4/10 Work Schedule. Employees shall work four (4) 10 hour days per seven (7) consecutive days, 168 hour Standard Work Period. Each workday shall consist of 10 hours of work, and either a 30 minute or one (1) hour unpaid meal period. The determination as to a 30 minute or one (1) hour unpaid meal period shall be made by the Police Chief or his designee. C. 9/80 Work Schedule, Employees shall work four (4) nine hour days and one (1) four hour day in each seven (7) consecutive days, 168 hour Standard Work Period. Each nine (9) hour workday shall consist of nine (9) hours of work and either a 30 minute or one (1) hour unpaid meal period. The eight hour workday shall consist of four (4) hours applied to the first seven (7) day period and four (4) hours applied to the second seven (7) day period divided by either a. 30 minute or one (1) hour unpaid meal period. The determination as to a 30 minute or one (1) hour unpaid meal period shall be made by the Police Chief or his designee. d. 12/40 Work Schedule. Employees shall work three (3) 12 hour and 30 minute workdays and one (1) four hour workday in each seven (7) consecutive day, 168 hour Standard Work Period. Each workday shall consist of 11 hours and 30 minutes of work, and a one (1) hour meal period, 30 minutes of which shall be paid and 30 minutes of which shall be unpaid, for a total of 12 hours and 30 minutes. The four (4) hour workday shall consist of four (4) hours of work. 2. Alternate Work Period Schedules -207(k) Exempt Employees. a. 2070 3/12.5 Work Schedule — Patrol/Canine. Employees shall work thirteen 12 hour and 30 minute workdays in each 28 day FLSA Work Period. Of the 13 workdays, an employee assigned to this schedule shall be required to work one (1) 12 hoar and 30 minute "payback" day each 28 day FLSA Work Period, scheduled or assigned pursuant to the Department's work schedule policy. Each workday shall consist of 12 hours of work and a 30 minute paid meal period. During each 28 day FLSA Work Period, employees shall work 162.5 hours. Upon completion of this work schedule, employees will earn an additional two (2) hours and 30 minutes of vacation time, provided they do not take leave without pay during that Work Period. Employees assigned to this schedule are compensated for their meal periods. Consequently, if an 25E-8 employee is unable to take his or her meal period, or is internipted during his or her meal period, he or she shall not receive further compensation. b. 207(k) 7/12.5 Work Schedule - Detention. Employees shall work three (3) 12 hour and 30 minute workdays in one (1) seven day period and four (4) 12 hour and 30 minute workdays in the next seven (7) day period, or alternatively, four (4) 12 hour and 30 minute workdays in the first seven (7) day period and three (3) 12 hour and 30 minute workdays in the following seven (7) day period. This cycle shall be repeated twice each 28 day FLSA Work Period. Each workday shall consist of 11 hours and 30 minutes of work and a one (1) hour meal period, 30 minutes of which shall be paid and 30 minutes of which shall be unpaid, for a total of 12 hours and 30 minutes. During each 28 day FLSA Work Period, employees assigned to the 207(k) 7/12.5 Work Schedule shall earn one (1) hour of vacation time if they do not take leave without pay during that Work Period. Correctional Officers will be compensated at the time and a half overtime rate for all time worked in excess of their regular work shift of 12.5 hours per workday. The overtime compensation will apply only to actual time worked beyond the regular shift and calculated in increments of six (6) minutes. Effective January 10, 2016 or as soon as practicable, fourteen (14) Correctional Officers previously assigned to night shift will be assigned to work a swing shift from 1400-0230 hours. Their days off, annual vacation requests and their assigned supervisor will coincide with the shift having the same workdays. The schedules for day shift and night shift will remain unchanged. c. 207(lo 4/10.5 Work Sebedule-Detention Administration. Employees shall work seven (7) ten hour and 30 minute workdays and one (1) ten hour workday during each two (2) week period. This pattern will recur twice during the 28 day FLSA Work Period. Each 10 hour and 30 minute workday shall consist of 10 hours and 30 minutes of work and either a 30 minute or one (1) hour unpaid meal period. The 10 hour workday shall consist of 10 hours of work and either a 30 minute or one (1) hour unpaid meal period. The determination as to a thirty (30) minute or one (1) hour unpaid meat period shall be made by the Police Chief or his designee. d. 207(k) 4/10 Work Schedule. Employees shall work 16 ten hour workdays in each 28 day FLSA Work Period. Each workday shall 7 25E-9 consist of 10 hours of work and either a 30 minute or one (1) hour unpaid meal period. The determination as to a 30 minute or one (1) hour unpaid meal period shall be made by the Police Chief or his designee. C. 207(k) 9/80 Work Schedule. Employees shall work five (5) nine hour workdays in one (1) seven (7) day span and three (3) nine hour workdays and one (1) eight hoar workday 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 span. This cycle shall be repeated twice each 28 day FLSA Work Period. Each nine (9) hour workday shall consist of nine (9) hours of work and either a 30 minute or one (1) hour unpaid meal period. The eight (8) hour workday shall consist of eight (8) hours of work and either a 30 minute or one (1) hour umpaid meal period. The determination as to a 30 minute or one (1) hour unpaid meal period shall be made by the Police Chief or his designee. f 207(k) 9/81 Work Schedule. Employees shall work 81 hours in a consecutive 14 day, 336 hour period. This cycle shall be repeated twice each 28 day FLSA Work Period. Employees shall work five (5) nine hour workdays in one (1) seven (7) day span and four (4) nine hour workdays in the second seven (7) day span. Each nine hour workday shall consist of nine (9) hours of work and either a 30 minute or one (1) hour unpaid meal period, While assigned to the 9/81 schedule, an officer shall earn two (2) hours of overtime during each 28 day FLSA Work Period, unless he or she takes leave without pay during the 28 day, 672 hour period. 3.3 Part Time Emplolnnent. During the term of this MOU, no presently existing fidl-time positions will be eliminated as the result of the use of part -tune employee(s) and, to the extent possible, when the workload of any one or more part-time employee(s) would justify the addition of a full-time position or positions, the parties will meet and confer regarding the addition of a full-time position or positions, subject to City Cowicil approval. 3.4 Code Seven. Except for those employees assigned to Patrol, other employees whose meal periods are interrupted by the performance of job related duties, will receive another full, uninterrupted lunch period or will be compensated for their lunch period at their overtime rate of pay at time and one-half their regular rate of pay, For purposes of this section, "interrupted" shall mean a significant interruption of more than a few minutes (deminimus). For employees who receive a one-hour hunch period (half of which is paid) overtime compensation shall apply only to the unpaid half-hour. Unless exigent circumstances exist beyond the Department's control, employees assigned to Patrol shall 25E-10 be provided a 30 minute paid meal period, Should an employee's meal period be interrupted, every effort shall be made to allow the affected employee to resume his/her meal period for the remaining unused time, not to exceed the 30 minute total meal period. 3.5 DETECTIVE REDEPLOYMENT All employees assigned as detectives (investigators) shall work one (1) day per month in the patrol function of the Field Operations Bureau pursuant to a schedule as determined by the Chief of Police or his designee. Once each calendar year the Chief of Police shall conduct a review of the organization of the Police Department to determine whether positions and assignments currently in the Investigations Bureau represent a deployment of resources that best enables the department to provide police services to the city. The Chief of Police may, as a result of this review, remove positions and assignments from the Investigations Bureau and assign them, and the individuals who occupy them, to other bureaus or eliminate them and assign the individuals who occupy them to other positions and assignments in the department. The annual review and any re -assignment made as a result of the review shall be completed, including the appeal thereof outlined below, sufficiently in advance of the annual patrol deployment sign-up to enable those who will be assigned to Patrol to make use of their seniority when choosing patrol shifts and days off. Any employee who is informed that he or she will be removed from the Investigations Bureau and lose the Investigations assignment pay differential may appeal to the Chief of Police. Said appeal constitutes the sole administrative appeal of the Chiefs decision, shall be conducted in an informal manner and the decision of the Chief shall be final. ARTICLE IV 4.0 SALARIES 4.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all members of the Santa Ana Police Officers Association who are now employed or will in the future be employed in any of the designated classifications of employment listed in this MOU and its attachments. 4.2 Salary Schedule. The basic salary schedule, attached hereto in a matrix format as Exhibit "A", and made a part hereof as though set forth in full herein, provides numerous salary rate ranges, each comprised of five (5) steps or rates of pay. The respective rate ranges are identified by a three (3) digit number. The steps within each range are identified by the letters "A" through "E" inclusive, with the "A" step being 25E-11 the lowest step in the range. The purpose of each step and the length of service required for advancement to the next higher step within a particular salary rate range is summarized as follows: Step A Normal beginning pay rate Step B Automatic Increase — After 6 months' service in next lower step. Also optional hiring rate Step C Automatic Increase — After 12 months' service in next lower step. Also maximum hiring rate Step D Automatic Increase — After 12 months' service in next lower step. Step E Merit Rate — After 12 months' service in next lower step. Specific regulations governing advancement within salary rate ranges are set forth in Section 4.7 of this MOU. The assigmnent of classes to salary rate ranges is listed in Exhibit `B", which is attached and made a part hereof as though set forth herein. 4.3 Salary Adjustments. A. The base salaries of Sworn employees covered by this MOU shall be adjusted as follows: Effective July 1, 2015, the base salary of employees covered by this MOU shall be increased by five (5) salary rate ranges (approximately 2.5%). Effective July 1, 2016, the base salary of employees covered by this MOU shall be increased by five (5) salary rate ranges (approximately 2.5%). B. The City and the Association agree to form a working group for the purpose of determining the parameters needed to conduct a salary survey for the bargaining trait. Thereafter, a salary study will be conducted by an independent consultant. If warranted by the study, the City and the Association agree to meet and confer regarding a salary increase in excess of 2.5% effective July 1, 2016. C. During the term of this MOU, should any other fall -time employee bargaining unit of the City receive any base salary rate increase (not associated with another benefit or the retiree health savings plan) that exceeds those set forth in Subsection "A" above, all employees covered by this MOU shall receive the same base salary increase or equivalent retroactive to the date such increase went into effect for the other bargaining unit. D. All employees will contribute one percent (1%) of their base salary plus pay additives through payroll deduction to a fund maintained by the Santa Ana Police Officers Association for the purpose of providing retiree health insurance premium reduction assistance. This payroll deduction for retiree health insurance 10 25E-12 premium reduction assistance will continue until such time as the parties may mutually agree to end said deduction. Each October l'Y , the City shall contribute an amount equal to three-quarters' percent (.75%) of the bargaining unit's annual base salary, including pay additives (excluding overtime), for the purpose of providing retiree health insurance premium reduction assistance. 4.4 Application of Basic Compensation Plan. The salary rate ranges and steps contained in Exhibit A are monthly salary rates, All officers and employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate, except that an employee hired for temporary work in a position which has an anticipated duration of less than six (6) months shall be paid at a rate per hoar for actual time spent in the performance of the duties of his or her employment, Any hourly rate of pay, defined as the regular hourly rate of pay, shall be computed by dividing the monthly salary rate plus pay additives 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 exactly one-half cent or higher shall fix the rate at the next higher whole cent. 4.5 Beginning Rates. A new employee of the City of Santa Ana shall be paid the rate shown as Step "A" in the salary rate range allocated to the class of employment for which he or she has been hired. In special instances where such new employee possesses unique and exceptional education, training and/or experience qualifications, the department head under whom the employee will serve, may submit a written request and justification to the City Manager for authorization to place such new employee on Step "B" or Step "C" 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 said employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article. 4.6 Service. The word "service" as used in this MOU shall be deemed to mean continuous, Rill -time service in the classification in which the officer or 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. Employees hired after the first (1st) working day of the month shall not be credited with "time -in-service" for that month when determining the length of service required for salary step advancement, A lapse of service by an officer or employee for a period of time longer than thirty (30) calendar clays by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such officer or employee for the purpose of this MOU and any such officer or employee reentering the service of the City shall be considered as a new officer or employee, except that he or she may be reappointed within one (1) year and may be placed in the same salary step in the appropriate salary range as he or she was at the time of termination of employment. 11 25E-13 4.7 Advancement Within Ranges. The following regulations shall govern salary advancement within rate ranges: A. Length of Service Advancements. After the salary of an officer or employee has been first established and fixed under this plan, such officer or employee shall be advanced from Step "A" to Step "B" or from Step "B" to Step "C" or from Step "C" to Step "D," whichever is the next higher step to that on which the officer or employee has been previously paid, effective the first day of the month following the date of completion of the length of service for such advancement as provided in Section 4.2 of this MOU. B. Merit Advance. An officer or employee shall be considered for advancement from Step "D" to Step "E" upon the completion of 12 months' the required length service as provided in Section 4.2 of this MOU. The effective date of such merit increase, if granted, shall be on the first day of the month following the completion of 12 months' service. Advancement to Step "E" may be granted only for continued meritorious and efficient service and continued improvement by the officer or employee in the effective performance of the duties of his or her position. Such merit advancement shall require the following: There shall be on file in the office of the chief persomiel officer a copy of each periodic efficiency or performance report required to be made on the officer or employee by the Santa Ana Municipal Code and/or the City Manager during the period of service time of such officer or employee subsequent to this last salary advancement. 2. The Police Chief, at least twenty (20) calendar days prior to the anticipated completion of such officers or employee's required length of service, shall file with the City Manager a statement recommending the granting or denial for the merit increase and supporting such recommendations with specific reasons therefore. 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 4.9 of this Article. C. Length of Service Required When Advancement Denied. When an officer or employee has not been approved for advancement to the 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. 12 25E-14 4,8 Reduction in Salary Stens. Any officer or employee who is being paid on merit step E may be reduced to Step "D" of the appropriate salary range, upon the recommendation of the Police Chief, and the approval of the City Manager. Procedure for such reduction shall follow the same procedure as outlined for merit advancements in Section 4.7 above, and such officer or employee may be considered for re -advancement under the same provisions as contained in Subsection C of Section 4.7. 4.9 Promotional Salary Advancement. When an officer or employee is promoted to a position in a higher classification from a position in a lower classification in the same occupational career ladder, he or she shall be reassigned to Step "A" in the appropriate salary rate range for the higher classification; provided however, that if the base salary step currently being paid such officer or employee is already equal to or higher than said Step "A," he or she will be placed in the lowest step in the appropriate salary rate range as will grant that officer or employee an increase of at least one (1) salary step (approximately 5%) over his or her current base salary step including all assignment pay, pay additives, and premiums in place at the time of promotion. Pay additives reapplied (excluding shift; differential and career development pay) shall not be included in the starting point for the 5% increase. 4.10 Demotion. When an officer or 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 thud the salary step to which the officer or 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 by the Police Chief is lower than the maximum step permissible render 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 (Section 4.8, above). 4.11 Reallocation of Salary Rate Ranges. Any officer or 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. 4.12 Deferred Compensation, If, during the term of this MOU, the City agrees to match employee Deferred Compensation contributions for members of any other bargaining uirit, then employees covered by this MOU shall receive the same benefit. 13 25E-15 4.13 Joint Labor Manaaenlent Study— Salary Schedule, The parties agree that at anytime during the term of this MOU either the City or the Association may ask the other party to meet and, negotiate over the implementation of a new salary schedule. ARTICLE V 5.0 ASSIGNMENT AND OTHER SPECIAL PAY ADDITIVES 5.1 Assigmnent Pay Differentials. Assignment pay differentials, as listed herein and throughout the contract, will, 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. An incumbent in the class of Police Services Dispatcher who is continuously and regularly assigned to and actually performing in a lead supervisory and trainer capacity over an assigned shift of Police Services Dispatchers will be paid at a rate set ten (10) salary rate ranges (approximately 5.0%) above his or her then current base monthly salary step. & Personnel in the class of Forensic Specialist I, who are regularly and continuously assigned to and actually performing duties in a "lead" supervisory capacity over a primary functional unit of Forensic Specialist I employees, will be paid at a rate set ten (10) salary rate ranges (approximately 5.0%) above their then current base monthly salary step. C. An incumbent in the class of Police Officer who is continuously and regularly assigned to and actually performing duties of a. Corporal will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. If a Corporal is assigned to lead a work unit without a Sergeant, be or she will be paid an additional five (5) salary rate ranges (approximately 2.5%) above his or her base monthly salary step for such assignment, At the present time, Directed Patrols and Civic Center Patrol units are examples of such assignments. D. An incumbent in the class of Correctional Officer who is continuously and regularly assigned to and actually performing duties of a Senior Correctional Officer will 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. The Police Chief at his discretion and based on the department's need may assign sworn officers to standby status for non -work days or other days as determined by 14 25E-16 the Police Chief Officers thus assigned will be compensated at the rate of two (2) hours of straight time per clay of standby duty. Officers assigned to standby status on non -work: days will not lose their standby pay when called to duty, if they have been on call for at least six (6) hours when called. If officers on standby status are called to duty after having been on call for less than six (6) hours, they will be paid for their response to work, but not for their standby status. F. An employee who is continuously and regularly assigned as a Training Officer working in Field Operations, the Detention facility, or as a Forensic Specialist II will 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. An employee who is continuously and regularly assigned to and actually performing duties of an Internal Affairs Officer will 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. An employee who is continuously and regularly assigned to perform training functions as a Parking Control Officer will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. I. An incumbent in the class of Police Officer who is continuously and regularly assigned as a Canine Officer will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step. This pay shall be considered compensation for the care and feeding of the dog and will be in lieu of the thirty (30) minutes of time each day currently provided for such Purpose. J. An incumbent in the class of Police Officer who is continuously and regularly assigned to and actually performing duties of a Motor Officer assigned to the Traffic Division will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step, K. An incumbent, identified by the Police Department, who is continuously and regularly assigned to and actually performing duties of a Detective/Investigator assigned to the Investigations Division or Special Investigations Units as well as Police Investigative Specialist, Background Investigator, Collision Investigator, and Graffiti Task Force Investigator, will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. L. Employees in the class of Correctional Officer or Correctional Supervisor, who is continuously and regularly assigned to either the 207(k) 7/12.5 Corrections Work Schedule, or the 4/10.5 Corrections Administration Work Schedule, shall be paid 15 25E-17 at a rate set six (6) salary 'rate ranges (approximately 3%) above his or her then current base monthly salary step. This assignment pay is compensation for the additional 30 minutes work or briefing time each day. CalPERS has determined this pay additive does not qualify as special compensation under CCR 571(a) and as such, is not reportable as final compensation when calculating retirement benefits. M. Personnel in the class of Firearms Examiner who are regularly and continuously assigned to and actually performing duties in a "lead" supervisory capacity over a primary functional emit, will be paid at a rate set ten (10) salary rate ranges (approximately 5.0%) above their then current base monthly salary step. N. Notwithstanding the specific provisions of Article V, Section 5.1, A — M, supra, an incumbent who is regularly and continuously assigned to lead a functional unit which includes positions in the same or lower classifications as the incumbent, may be compensated for said duties upon mutual agreement of the City and POA and approval of the Police Chief and the Executive Director of Personnel Services. This compensation shall be referred to as "lead pay." O. An incumbent in the class of Forensic Specialist I or Forensic Specialist II who is continuously and regularly assigned as a Tenprint — AFIS Technician will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. P. An incumbent in the class of Forensic Specialist I or Forensic Specialist II who is continuously and regularly assigned as a Fingerprint Analyst will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. In no event shall an incumbent receive more than ten (10) salary rate ranges (approximately 5%) more than his or her then current base monthly salary step for performing the duties of both the Tenprint — AFIS Technician and Fingerprint Analyst, 5.2 Shift Differential, Non-Swom Personnel. Each employee in the classes of Animal Service Officer I, Animal Service Officer II, Forensic Specialist I, Crime Research Analyst, Forensic Specialist II, Police Communications Supervisor, Police Investigative Specialist, Police Property & Evidence Specialist, Police Service Officer, Police Evidence and Supply Specialist, Police Services Dispatcher, Communications Services Officer, Correctional Officer, Correctional Supervisor and Parking Control Officer 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 (A 1/2) hours between the hours of 5:00 P.M. and 7:00 A.M. will be paid a shift differential at a rate set ten (10) salary rate ranges (approximately 5.0%) above his or her then current base monthly salary step. 5.3 Bilingual Pay. Qualified employees who meet the following criteria shall be paid a monthly pay differential, above his or her base monthly salary step, as follows: 16 25E-18 A. Assignment by the Police Chief or his designee to a position requiring bilingual capability in both English and any other languages designated by the Orange County Registrar of Voters as necessary for official voting information and or Federal Voting Rights Act; and B. Certification by the chief personnel officer as having satisfactorily demonstrated the required level of fluency in both languages. C. Swom: Street Level Proficienc1iSpanish. A Police Officer or Sergeant who successfully demonstrates the required level of bilingual fluency as determined by the chief personnel officer shall be paid a bilingual pay differential in an amount equal to the product obtained by multiplying the Step "E" base salary rate of Police Officer by five (5) salary rate ranges (approximately 2.5%). Employees receiving "Street Level Proficiency" incentive pay may be required, as a condition of continued eligibility to receive such incentive pay, to successfully complete an eight (8) hour refresher course once every twelve months from the date of initial certification, D. Sworn: Complex Level Proficiency in Designated Langu.anes. A Police Officer or Police Sergeant who successfully demonstrates the required level of bilingual fluency as detennined by the chief personnel officer shall be paid a bilingual pay differential in an amount equal to the product obtained by multiplying the Step "E" base salary rate of Police Officer by ten (10) salary rate ranges (approximately 5%). E. Non -Sworn: Secondary Level Proficiency in Designated Languages. A non - sworn employee who successfully demonstrates the required level of bilingual fluency as determined by the chief personnel officer shall be paid a monthly differential of forty dollars ($40) above his or her then current base monthly salary step. P. Non -Sworn: Primary Level Proficiency in Designated Languages. A non -sworn employee who successfully demonstrates the required level of bilingual fluency as determined by the chief personnel officer shall be paid a monthly differential of one hundred seventy-five dollars ($175) above his or her then current base monthly salary step. 5.4 All assignments to positions set forth in Sections 5.1, 5.2, 5.3 above of sworn and non - sworn personnel shall be made or revoked in a fair mvmer at the discretion of the Police Chief. 5.5 Temporary Upgrade Assignment Pay. The parties acknowledge that from time to time it may be necessary for the department to fill a temporarily vacant, full-time budgeted, 1.7 25E-19 higher-level position due to the temporary absence of the incumbent. The parties agree that such a position may be filled by an eligible unit member for an initial period of up to six (6) months, and at the discretion of the Chief of Police, for an additional six (6) months; and that the employee assigned to fill such a position shall receive Temporary Upgrade Assignment Pay as set forth below: A. Eligibilitv. Hull -time employees shall be assigned to fill a vacant, full-time budgeted, higher- level position, and shall receive Temporary Upgrade Assignment Pay for filling that position, when the occupier of that position is not performing the duties of that position for a period of two (2) consecutive calendar weeks or more. An employee filling a position under this section who is absent for two (2) days or less during the two (2) consecutive calendar week period will not lose his or her eligibility for Temporary Upgrade Assignment Pay; however, the days of absence shall not be counted in the computation of the two week period. In computing qualifying service or temporary upgrade assignment pay only Rill days of actual duty shall be included. Partial days shall not be combined to make full days unless they are holiday hours. Holiday time off will be included in computing actual duty days. Employees holding the position immediately subordinate to the vacant, full-time, budgeted, higher-level position to be filled shall be given first consideration to said position consistent with the operational needs of the department. When there is more than one (1) employee holding the position immediately subordinate to the vacant, full-time, budgeted, higher-level position to be filled, the most senior employee holding one of the immediately subordinate positions shall be assigned to said position consistent with the operational needs of the department. Non -permanent employees (probationary, part-time, seasonal, etc.) and employees performing work above their regular class in a training capacity shall not be assigned to a vacant, frill -time, budgeted, higher-level position in accordance with this section unless specifically authorized by the City Manager. B. Compensation. After an employee has seined two (2) consecutive calendar weeks in a vacant, full-time, budgeted, higher-level position, he shall be compensated at the Temporary Upgrade Assignment Pay rate for each full day that he is assigned to the higher-level position, retroactive to the first (1") day of said assigmnent. 2. An employee serving in a Temporary Upgrade Assigmnent will be paid a temporary assignment pay premimn at a rate set ten (10) salary rate ranges UU 25E-20 (approximately 5%) above their then current base monthly salary step. An employee assigned to a vacant, full-time budgeted, higher-level position not represented by this bargaining unit will retain all fringe benefits afforded to members of this bargaining unit, if the employee remains eligible for such pay while in the temporary assignment, in accordance with this MOU, but will not be eligible for any benefits afforded to members of the bargaining unit for the position to which he or she is temporarily assigned. 4. An employee assigned to a vacant, full-time, budgeted, higher-level position will continue to accrue, and have recorded, general, special, or normal salary step increases in the employee's permanent position; however, such salary increase will be paid only to maintain the minimum ten (10) salary rate range (approximately 5%) differential required by this section. ARTICLE VI 6.0 CAREER DEVELOPMENT PROGRAM 6.1 Definitions. For the purpose of clarifying the criteria for the Police Career Development Program designations set forth in Sections 6.2 through 6.8 of this Article, the following definitions apply. It is the responsibility of the employee regardless of rank or classification, to notify the police department human resources of the completion of any Career Development Pay requirements and, to provide the required proof of completion or eligibility. Any Career Development pay additive shall not commence until the department is notified by the employee of obtaining eligibility and all required proof of eligibility is received by the department. A. Educational Units, One (1) completed "semester" emit in an academic coruse of instruction approved by the Police Chief and in an accredited college or university shall equal one (1) educational unit. One (1) "quarter" unit achieved in an educational institution as above shall equal two-thirds (2/3) of an educational unit. "Trimester" units or other standards of measurement used as a basis in awarding scholastic credits will be accorded the same evaluation acrd weight as provided by the respective accredited college or university, Only completed coursework credited with a letter grade "C" or better or a grade of "Pass" when evaluated by the "Pass/Fail' method will be accepted. If such ratings are not rendered for a specific course, then a certificate of successful completion must be submitted. B. Training Units. Twenty (20) classroom hours or its equivalent of approved police training shall equal one unit. 19 25E-21 Regular, periodic, on-the-job training programs shall not be considered as fulfilling this requirement. Neither shall the special training required for Crime Scene Investigators and Advanced Officers or other similar mandatory training (e.g., First Aid, C.P.R. Recertification, etc.) nor the basic introductory training or similar training given an employee during his or her probationary period be given credit for the awarding of training units. When college credit is awarded for special training in police work, such units of credit may be counted for either training units or educational units as the officer may select. 2. Training rmits may be earned by the assignment to and performance of sworn police officer duties (other than uniformed field patrol work in Field Operations Division) with one p) full and continuous month of such assignment equal to one (1) training unit. Credit for experience in assignments other than patrol work in Field Operations shall not be given, unless at least three (3) full and continuous months of such assignment have been completed. Not more than six (6) units of training through assignment to non -patrol duties may be earned in any one (1) year and not more than fifteen (15) such training units by assignment shall be used in meeting the criteria for the Police Career DeveIopmernt Program designations as set out in this Article. 6.2 Crime Scene Investi ator(,C.S.I.). Any sworn, safety-mcmber Police Officer who attains the following educational and experience requirements and the approval as set out below shall be paid an additional five (5) salary rate ranges (2.5%) above his or her then current base monthly salary step. The criteria for such designation shall be as follows: A. Completion of two (2) years of experience as a sworn Police Officer, at least one of which shall be in the Santa Ana Police Department, B. Completion (acquisition) of at least thirty (30) educational and/or training units. C. Assigmnent to and actual performance of the duties and responsibilities of a C.S.I. D. Completion of a special training course for Crime Scene Investigators as developed and administered by the Santa Ana Police Department or such alternative course as designated for such purpose by the Police Chief. E. Approval of the Police Chief. The number of such designations as C.S.I. shall be no larger than the requirements of the department as determined by the Police Chief. 6.3 Senior Police Officer 1. Any sworn, safety -member Police Officer, regardless of duty assignment, who fulfills the requirements established in this section shall be designated 20 25E-22 as a Senior Police Officer I and shall be paid at a rate set fifteen (15) salary rate ranges (approximately 7.5%) above his or her then current base monthly salary step, The criteria for such designation shall be as follows: A. Completion of five (5) years of municipal police experience in the Police Officer classification, of which thirty (30) months must be with the Santa Ana Police Department. B. Completion (acquisition) of at least sixty (60) educational and/or training units, C. Approval of the Police Chief, 6.4 Senior Police Officer II. Any sworn, safety -member Police Officer, regardless of duty assignment, who fulfills the requirements established in this section shall be designated as a Senior Police Officer II and shall be paid at a rate set twenty-five (25) salary rate ranges (approximately 12.5%) above his or her then current base monthly salary step in the Police Officer classification. The criteria for such designation shall be as follows: A. Completion of seven (7) years of municipal police experience in the Police Officer classification, of which thirty (30) months must be with the Santa Ana Police Department. B. Completion (acquisition) of at least ninety (90) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional thirty (30) or more educational/training units. C. Approval of the Police Chief 6.5 Senior Police Officer III, Any sworn, safety -member Police Officer, regardless of duty assignment, who fulfills the requirements established in this section shall be designated as a Senior Police Officer III and shall be paid at a rate set thirty (30) salary rate ranges (approximately 15%) above his or her then current base monthly salary step in the Police Officer classification. The criteria for such designation shall be as follows: A. Completion of nine (9) years of municipal police experience in the Police Officer classification, of which thirty (30) months must be with the Santa Ana Police Department. B. Completion (acquisition) of at least one hundred twenty (120) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional sixty (60) or more educational/training units. C, Approval of the Police Chief. 21 25E-23 6.6 Senior Police Sergeant I. Any officer holding the rank of Police Sergeant in the Santa. Ana Police Department, regardless of duty assignment, who fulfills the requirements established in this section shall be designated as a Senior Police Sergeant I and shall be paid at a rate set fifteen (15) salary rate ranges (approximately 7.5%) above his or her then current base monthly salary step. The criteria for such designation shall be as follows: A. Completion of five (5) years of municipal police experience and, be eligible for "E" step of the base salary rate range of the Police Sergeant class. "Eligible" as defined only for Section 6.6(A) means that a Police Sergeant shall be considered for advancement from Step "D" or "E" to Senior Police Sergeant I upon the completion of the required length of service as provided in Section 4.2 and Exhibit A of this MOU; the effective date of such increase shall be on the first day of the month following completion of such required length of service. B. Completion (acquisition) of at least sixty (60) educational and/or training units. C. Approval of the Police Chief. 6.7 Senior Police Sergeant II. Any officer holding the ranl< of Police Sergeant in the Santa Ana Police Department, regardless of duty assignment, who fulfills the requirements established in this section shall be designated as a Senior Police Sergeant II and shall be paid at a rate set twenty-five (25) salary rate ranges (approximately 12.5%) above his or her then, current base monthly salary step in the Police Sergeant class. The criteria for such designation shall be as follows: A. Completion of seven (7) years of municipal police experience and be eligible for "E" step of the base salary rate range of the Police Sergeant class. "Eligible" as defined only for Section 6.7(A) means that a Police Sergeant shall be considered for advancement from Step "D" or "E" to Senior Police Sergeant II upon the completion of the required length of service as provided in Section 4.2 and Exhibit A of this MOU; the effective date of such increase shall be on the first day of the month following completion of such required length of service. B. Completion (acquisition) of at least ninety (40) educational and/or training units; or possession of an Associate of Arts academic degree from an accredited college with an additional thirty (30) or more education or training units. C. Approval of the Police Chief. 6.8 Senior Police Sergeant III. Any officer holding the rank of Police Sergeant in the Santa Ana Police Department, regardless of duty assignment, who fulfills the requirements 22 25E-24 established in this section shall be designated as a Senior Police Sergeant III and shall be paid at a rate set thirty (30) salary rate ranges (approximately 15%) above his or her then current base monthly salary step in the Police Sergeant class. The criteria for such designation shall be as follows: A. Completion of nine (9) years of municipal police experience and be eligible for "E" step of the base salary rate range of the Police Sergeant class. "Eligible" as defined only for Section 6,8(A) means that a Police Sergeant shall be considered for advancement from Step "D" or "E" to Senior Police Sergeant III upon the completion of the required length of service as provided in Section 4,2 and Exhibit A of this MOU; the effective date of such increase shall be on the first day of the month following completion of such required length of service, B. Completion (acquisition) of at least one hundred twenty (120) educational/training units; or possession of an Associate of Arts academic degree from an accredited college with an additional sixty (60) or more educational/training units, C. Approval of the Police Chief, 6.9 Career Development Program - Non -Sworn. An incumbent in one of the classes designated as "non -sworn" covered by, this MOU shall earn as additional amount as follows: A. Upon attainment of an Associate in Acts Degree and five (5) years' experience with the City of Santa Ana, said employee will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. B. Upon attainment of a Bachelor of Arts or Science Degree and with five (5) years' experience with the City of Santa Ana, said employee will be paid at a rate set an additional (5) salary rate ranges (approximately 2.5%) for a total of 10 salary rate ranges (approximately 5%) above his or her then current base monthly salary step. If said employee obtains a Bachelor's Degree without attaining an Associate in Arts Degree, he or she will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step. 6.10 Career Development Pay -Sworn Sworn Employees hired on or after January 1, 2014 shall be eligible to receive Career Development Pay as follows: 23 25E-25 A. Level One - Upon attainment of an Associate in Arts Degree and five (5) years of municipal police experience in the Police Officer or Police Sergeant classification, of which thirty (30) months must be with the City of Santa Ana Police Department, and attainment of "E" step, said employee will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step, B. Level Two - Upon attainment of an Associate in Arts Degree and an additional thirty (30) educational units toward a declared Bachelor's degree, and seven (7) years of municipal police experience in the Police Officer or Police Sergeant classification, of which thirty (30) months must be with the City of Santa Ana Police Department, and attainment of `E" step, said employee will be paid at a rate set an additional (10) salary rate ranges (approximately 5%) for a total of 20 salary rate ranges (approximately 10%) above his or her then current base monthly salary step. If said employee obtains a Bachelor's Degree without attaining an Associate in Arts Degree, he or she will be paid at a rate set twenty (20) salary rate ranges (approximately 10%) above his or her then current base monthly salary step. C. Level Three. Upon attaimnent of a Bachelor of Arts or Science Degree and nirie (9) years of municipal police experience in the Police Officer or Police Sergeant classification, of which thirty (30) months must be with the City of Santa Ana Police Department and attainment of "E" step, said employee will be paid at a rate set an additional (10) salary rate ranges (approximately 5%) for a total of 30 salary rate ranges (approximately 15%) above his or her then current base monthly salary step. ARTICLE VII 7.0 TRAINING AND EDUCATIONAL ASSISTANCE PROGRAM 7.1 Purpose. A. To encourage the employees of the City of Santa Ana to take college courses and special training courses which will better enable them to perform their present duties and prepare them for increased responsibilities. B. To provide financial assistance to eligible employees for education and training. C. To establish eligibility requirements, conditions and procedures whereby such assistance may be provided. 24 25E-26 7.2 Eli ibili . A. Applications for tuition reimbursement will be considered only from full-time, permanent City employees who have completed probation. B. Reimbursement is not authorized for courses for which the employee is receiving financial assistance from other sources such as G.I. Bill, scholarships, etc. C. Applications will be approved only for courses directly related to the employee's job or directly related to a promotional position in the employee's occupational specialty. D. Courses not ostensibly related to the employee's job, but which are required to qualify for a degree that is directly related to his or her job may be reimbursable only after all required occupationally related courses have been completed. E. Prior to receiving tuition reimbursement, employees must submit documentary proof of having received a grade of not less than "C" for the course. if objective ratings are not rendered for a specific course, then a certificate of successful completion must be submitted. F. Approval will be limited to courses given by accredited colleges and universities, city colleges or adult education courses under the sponsorship of the various Boards of Education. Workshops, seminars, conferences and similar activities not identifiable as a formal course of instruction within the curricuhnn 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 Personnel Services Department. G. When an employee is required by the Police Chief to attend a particular course or seminar, the expense shall be borne entirely by the City. H. For specifics regarding this Article, please refer to Santa Ana Police Department Training Bulletin 02-07 - Scheduling of Training Days and Travel Time Compensation. 7.3 Reimbursement. A. Reimbursement will be based on the cost of tuition or registration fees and all required texts, eBoolcs and related material for each course. Additional expenses such as meals and parking fees are not reimbursable. B. Costs for required texts and eBoolcs are eligible for one hundred percent (100%) reimbursement subject to the following conditions: 25 25E-27 For textbooks: a duplicate of the required textbook(s) was unavailable for loan from the departmental libraries prior to the commencement of coursework; For textbooks: any textbook(s) purchased, by the City shall be submitted to the employee's respective departmental library in order that such text(s) maybe made available to all employees. C. Tuition or registration costs of one hundred dollars ($100.00) or less are eligible for one hundred percent (100%) reimbursement. Tuition costs in excess of one hundred dollars ($100.00) are eligible for seventy-five percent (75%) reimbursement. Maximum tuition reimbursement per semester is five hundred dollars ($500,00) with a maximum of $1,500 a year. NOTE: Sumner and, winter sessions shall be counted as separate "semesters" for purposes of the program. D. Employees shall be limited, for purposes of tuition reimbursement, to a maximum of two (2) collegiate level courses of not more than a total number of units which is equivalent to six (6) "semester" units per semester, One (1) "quarter" unit shall equal two-thirds (2/3) of one (1) "semester" unit. 7.4 Procedures. A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete an Application for Training and Educational Assistance form and submit it to the Police Chief. B. The Police Chief will recommend approval or disapproval and forward the application to the Personnel Services Department. It is advisable that the applicant accomplish the procedures so far described prior to the inception of the course or disbursement of personal Rinds in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy. C. Within three months after he/she has completed the course and received his/her final grade, the employee must include official verification of his/her final grade with appropriate receipts for tuition and textbook costs to the Personnel Services Department. These will be returned to the employee upon request. Applications not submitted to the Personnel Services Department within three months following completion of the course become void. D. Upon receipt of the required docurnentation, the Personnel Services Department will determine whether the completed course of instruction is compatible with Ure provisions of Sections 2 and 3 of this Article. If found to be compatible, the Personnel Services Department will compute the amount of reimbursement, 26 25E-28 authenticate the application, and forward it to the Police Chief. E. The Police Chief will then authorize the Finance and Management Services Department to reimburse the employee the approved amount out of the budget of the Police Department. ARTICLE VIII 8.0 OVERTIME 8.1 General Policy for Overtime Work. Whenever it shall be determined to be in the public interest for employees to perform overtime work, or in an emergency situation, the City Manager, the Police Chief, or an authorized representative of the City Manager or Police Chief, may require an employee to perform overtime work. 8.2 Definition. A. Standard Work Period Overtime. Overtime for those employees assigned to the Standard Work Period shall be authorized or required time worked in excess of those hours assigned to their particular Standard Work Period Schedule workday or hours in excess of 40 hours per Work Period However, subject to Article 8.3 below, if an employee uses sick leave or personal necessity leave as provided for in this MOU in the same Standard World Period in which he/she works hours in addition to his/her regular hours, the sick leave and/or personal necessity leave shall not count as work hours which shall mean that the additional hours worked shall be paid at straight time if they are less than or equal to the number of sick leave or personal necessity leave hours used in the Standard Work Period. The use of such leave hours shall not affect overtime earned in accordance with Article 8.16 of this MOU. B. Alternative Work Period Overtime. Pursuant to this MOU, employees assigned to the Alternate Work Period shall earn overtime for authorized or required time worked in excess of those hours assigned to their particular Alternative Work Period Schedule workday or hours in excess of his or her Alternative Work Period Schedule hours in a consecutive 28 day, 672 hour period. However, subject to Article 8.3 below, if an employee uses sick leave or personal necessity leave as provided for in this MOU in the saute Alternative Work Period in which he/she works hours in addition to his/her regular hours, the sick leave and/or personal necessity leave shall not count as work hours which shall mean that the additional hours worked shall be paid at straight time if they are less than or equal to the munber of sick leave or personal necessity leave hours used in the Alternative Work Period. The use of such leave hours shall not affect overtime earned in 27 25E-29 accordance with Article 8.16 of this MOU. 8.3 Computation of a Workday and Work Period, Paid leave for holidays, vacation, and other time off with pay, except for sick leave and personal necessity, shall be credited towards the total time worked in computing a regular workday, and/or a work period, as defined herein, Sick leave and personal necessity shall not count as hours worked towards the total time worked in computing a regular workday and/or a work period. Work amounting to less than six (6) minutes shall not be considered time worked. Overtime worked for six (6) or more minutes shall be calculated in six (6) minute intervals. Leave without pay shall not be credited towards the total time worked in computing a regular workday, and/or a work period, as defined herein. 8,4 Compensation for Overtime. A. The preferable method by which overtime shall be compensated is by monetary payment, at one and one-half (1 1/2) times the employee's regular rate of pay. B. Shod the Police Chief determine that the best interests of the City will be sewed thereby, he or his designee may permit an employee to be compensated for overtime work by earning compensatory time off at the rate of one and one-half (1 1/2) hours for each hour of overtime worked. This time, hereinafter identified as "comp time" shall be accrued as set forth below. C. There are two Comp Time banks. The first bank is the Non-FLSA Comp -Time Bank established under the 2013-2015 MOU. Those employees hired after July 1, 2015 or those employees with less than 100 hours of Comp -Time at the time the banks were created will not have a Non-FLSA Comp -Time Bank. The second bank is the FLSA Comp -Time Bank. 1. The Non-FLSA Comp Time Bank can never have hours added to it. The hours in that bank can only be used as leave time and when using such leave will not cause the City to have to pay another employee overtime to fill behind the employee using the leave. The comp time in this bank cannot be cashed out during employment, only at the time the employee leaves City employment. if an employee uses the comp time in this bank during employment and exhausts the entire accrual in this bank, the employee's Non-FLSA Comp Time Bink will be closed as no additional hours may accrue into this bank. 2. The FLSA Comp Time Bank has a maximum accrual of one -hundred (100) hours. An employee who has 100 hours in this bank will earn overtime paid at time and one half the employee's regular rate of pay for overtime earned in accordance with this MOU. An employee who works overtime and who has less than 100 hours in his/her FLSA Comp Time Bank may be able to accrue hours (at the rate of 1.5 hours for each hour of 28 25E-30 overtime worked) in accordance with subdivision (B) above. The Comp time in this bank can be cashed in accordance with the provisions detailed below. Each affected employee who has accrued comp time credits in the FLSA Comp Time Bank, may elect to convert up to twenty (20) hours of such accrued time each calendar year quarter to the cash equivalent thereof, to a maximum of eighty (80) hours per calendar year. D. Use of Comp Time from the FLSA. Comp Time Bank. When an employee submits a request for time off using accrued compensatory time, and that employee has found a qualified replacement, the time off request will be granted, A qualified replacement means that the replacement officer or employee is able to fulfill the requirements of the position to which the requesting officer is assigned, a. Compensatory time off requests made for consideration during the monthly scheduling meetings will be treated as any other time off and granted only on the basis of seniority. b. Pursuant to the 3-12 Operating Rules, officers may trade work days with other officers within the 28 -day deployment period. Any trades must be approved by the affected Commanders and the Field Operations Bureau Commander. 2. When an employee submits a request to take time off using accrued compensatory time and the officer deployment is above minimum staffing for the day requested, then the request will be granted without farther conditions. However, if the number of officers scheduled to work on the day(s) of the request is at or below minimum staffing as defined by the department, the compensatory time off request will be granted only if a qualified replacement has volunteered and committed to work the assignment left open by the request for time off. The volunteer may exchange days off with the requesting employee within the 28 -day deployment period, whichever applies, or may elect to receive overtime compensation. 3. Requests for use of compensatory time off during holidays as defined by this MOU, must be submitted in time to be considered during the monthly scheduling meeting held by bureau and division commanders for the upcoming month. These requests will be considered by seniority and will be granted only if officer deployment is above minimum staffing. The policy of the department has been, and will continue to be, that compensatory time off requested during a City -designated holiday will be treated as any other time off request and will be granted in order of seniority as long as minimum staffing levels are met. The replacement 29 25E-31 policy in 8.4 DA below will not apply to compensatory time off requests submitted for consideration during monthly scheduling meetings. 4. Although it is always preferable for the officer to find a qualified replacement when requesting the use of compensatory time off, if provided sufficient notice of a request for time off, the department will work with employees to find a qualified replacement. Sufficient notice and reasonable period will be defined as follows: a, Seventy-two (72) hours' notice for one (1) day or less of time off requested. b. Five (5) calendar days' notice for more than one (1) workday up to one (1) workweek. C, Fourteen (14) calendar days' notice for more than one (1) week compensatory tune off request. S. If an employee has provided sufficient notice of a compensatory time off request, the department will work with the employee to find a qualified replacement in the following manner: a. The watch commander will maintain a calendar of time off that has been requested in accordance with the guidelines listed above. Qualified employees will be allowed to volunteer to work these shifts. In the future, the department may develop, at its own discretion, an automated schedule that will contain this information. b. If an employee volunteers and signs up to work for another employee who has requested compensatory time off, that volunteering employee will be held responsible for working that full shift without further reminder. Employees who do not show up to work, or retract their offer to replace another officer, may be subject to disciplinary action and may not be permitted to volunteer to work in this manner in the future. 6. The watch commander shall send out an e-mail message to all officers requesting a volunteer to cover the shift by switching days off or working on overtime. When a compensatory time off request is made in a manner that does not comply with this policy, and granting that request would unduly disrupt the operations of the department, the department may deny that request. 30 25E-32 8.5 Incremental Usage. Time off with pay to compensate for overtime worked may be taken in increments as small as one-half (1/2) hour. 8.6 Excess Usage. If compensatory time off is used in excess of that available, such excess compensatory time off will first be deducted from any available comp time bank, vacation benefits and finally, deducted from the next scheduled wage or salary payment. 8.7 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 a salary rate range. 8.8 Overtime Work to be Apportioned. To the extent that he is reasonably able to do so, the Police Chief shall arrange work programs to minimize overtime work, necessary overtime work shall be apportioned among employees of like classification and assignment. 8.9 Advance Compensation for Overtime. 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. 8.10 Compensation for Overtime: Exclusions. Overtime pay or comp time shall be allowed an employee for attendance at conventions, conferences, seminars or the like, as long as prior authorization is received. Overtime pay or comp time pay shall be permitted only for attendance which is ordered on such employee's normal days off or for time beyond a normal workday's duration. Please refer to Santa Ana Police Department Training Bulletin 02-07 for details. 8.11 Call -Back -Duty, A. Employees who are on call during their off-duty time due to their assignment (i.e., Homicide Investigators, Internal Affairs Sergeants, Crimes Against Persons Sergeants, etc.) and are called back to work will be paid for their travel time at the overtime rate from the time they leave their home Lentil the time they return home, or until their regularly scheduled shift begins. Only that period of time devoted to work will be compensated, B. Employees who are ordered back to work while off-duty because of an emergency or other Lunforeseen event will be paid for travel time at the overtime rate from the time they leave their home Lentil they return home, or until their regularly scheduled shift begins. Only that period of time devoted to work will be compensated. 31 25E-33 C. Employees who are called at home and offered voluntary overtime work, and elect to accept the offer, will not be compensated for travel time in any manner. Similarly, employees who sign up for voluntary overtime, or who have advance notice that they will have to work during their off-duty time on an overtime basis, will not be compensated for travel time. 8.12 Accrued Overtime Paid Upon Promotions or Upon Separation, Upon an employee's appointment to a position in which overtime may not be earned or upon an employee's separation from employment with the City 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. 8.13 Court Appearance. Compensation for court appearance by personnel 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, employees shall be paid overtime for the period of time from their arrival at coirt until they are released from court or the court session closes for that day. However, in no case, shall an employee receive less than two (2) hours overtime for a court appearance. If court appearances are made both in the morning and afternoon of a particular day, two (2) hours overtime will be allowed for each session attended. If the employee is not released 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. B. A subpoenaed employee scheduled to appear in court on City business during off- duty time may be placed on stand-by status by the Police Chief or his 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 stand-by status during any court session and is not required to appear in court, such employees 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 comp time off for standby time and not appearing in court, with the approval of the Police Chief. If such off-duty employee on stand-by actually appears in court, he or she shall be compensated as provided in Subsection A, supra, C. Employees assigned to the 3/12.5 or 7/12.5 Work Schedule who appear in court during their regularly scheduled workweek, and as a result do not receive adequate rest, will be allowed to flex their scheduled shift start time up to four hours, with the approval of the employee's immediate supervisor and watch commander, or immediate supervisor and section commander. Alternatively, the 32 25E-34 employee may be allowed to use up to four hours from his/her "Comp Time Banks" at the beginning of their scheduled shift to ensure adequate rest. An employee whose work shift ends or starts within thirty minutes of a mandatory court appearance shall be compensated for those thirty minutes at an overtime rate, 2. Employees assigned to a Watch 3 who are required to appear in court following the end of his/her shift will have the option of remaining on duty or ending their shift. Employees that continue active duty will be compensated at time and one half while on duty. Employees that end their shift will be unpaid prior to their court appearance. D. Employees who are on call for court during off-duty time, and who are called to testify, will be paid at the overtime rate of time and a half of their regular hourly rate, to include actual travel time from their home to court and back, or until their regularly scheduled shift begins. Travel time will be limited to a maximum of one (1) hour each way. Only that period of time devoted to work will be compensated. Time spent on personal pursuits or other non -work related activity will not be compensated. E. Those employees who have advance notice of their required appearance in court, have arranged an appearance time with the District Attorney's Office, or who otherwise have advance notice of mandatory court appearances, will not be compensated for travel time in any manner. F. Employees who appear in court during off --duty hours may elect to start their normal work shift early as specified herein. G. A subpoenaed employee scheduled to appear in court on City business during off - dirty time and placed on standby status by the Police Chief or his authorized representative will be compensated two (2) hours on a straight time basis if he or she is not advised of the cancellation of his or her appearance within five (5) Court business days of said appearance. 8.14 Creation of Association Comp Time Bank. A. Any member of the Association who works overtime, or has accrued but unused holidays, can designate that he or she will contribute the value of such time to a bank for use by members of the Association for the purposes and subject to the restrictions provided herein. B. Any member of the Association may receive time off for the welfare of officers, community service and any lawful activity of the Association with pay drawn from the batik described in Subsection A of this Section, provided that said 33 25E-35 employee first gains approval for said use by the executive board of the Association in the manner specified by its rules as adopted from time to time, and subject to the approval or disapproval of the Police Chief consistent with the operational needs of the Police Department. C. No withdrawal or use of such bank may be made by or on behalf of an employee ordered to take time off without pay for discipline imposed by the Police Chief or his designee. D. The City agrees to provide the SAPOA with a quarterly accounting (at the end of March, June, September and December) of all Association Comp Time accrued and used. 8.15 Declaration of State of Emergency. Emergencies shall be governed by the provisions of Santa Ana Municipal Code Section 9-194. 8.16 Compensation of Voluntary Contract Overtime. Exclusive of other provisions of this Article, except Section 8.7 (No Effect on Other Benefits) supra, Police Officers and Police Sergeants who voluntarily agree to perform contract security services at games, parades, dances and similar public events shall be compensated at the rate of one and one-half (1 1/2) times the employee's regular rate of pay, The Police Chief shall determine how many off-duty police officers should serve as security officers at each event. Police Officers and Sergeants represented by the Association shall be given first opportunity to volunteer for said off-duty assignments. If, after a, reasonable period of time, an insufficient number of police officers have volunteered to work such assignments, the Police Chief may offer the remaining "openings" to any person(s) he deems capable of performing the work at whatever straight -time pay rate the City considers to be appropriate. 34 25E-36 ARTICLE IX 9.0 HOLIDAYS 9.1 Legal holidays observed by full-time permanent and probationary employees covered by this MOU are as follows: • January 1st -New Year's Day. • Third (3rd) Monday in January - In observance of Martin Luther King Jr.'s Birthday. • Third (3rd) Monday in February -In observance of Presidents' Day. • Last Monday in May - In commemoration of Memorial Day. • July 4tb - In observance of Independence Day. • First (1st) Monday in September - In observance of Labor Day, • November 11th - In observance of Veteran's Day. • Fourth (4th) Thursday in November - In observance of Thanksgiving Day. • The Friday immediately following Thanksgiving Day. • December 25th - In observance of Christmas Day. • Last working day before Christmas Day, unless Christmas falls on a Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof. • One (1) Floating Holiday - Any workday selected by the employee with prior permission of the employee's supervisor, Everyday 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 96 hours off during the calendar year in lieu of the twelve (12) holidays specified in Section 9.1, supra, Said hours, up to a maximum of 80 hours, maybe carried over from one calendar year to the next and shall be cashed, out upon separation £Torn employment, not to exceed a maximum of 160 hours. An employee required to work on 35 25E-37 a City observed "legal' holiday shall be paid at his or her straight time rate. However, if an employee who separated from the service of the City has taken time off for holidays in advance of the date or day the holiday actually occurred, he or she must pay the City the cash value for such used but unearned holiday time off benefits prior to or at the time of separation. Holiday Leave Carryover - The parties agree to modify the maximam annual holiday leave benefit carryover as follows: In 2014, 160 hours; 2015, 140 hours; 2016, 120 hours; in 2017, 100 hours; in 2018, 80 hours. By January 1, 2018, the maximum annual holiday leave benefit carryover shall revert back to that as set forth in subsection "9.2", above, and that any accumulated holiday Ieave benefits in excess of that maximum allowable carryover limit not used prior to December 316` each year, shall be forfeited. Said hours shall be cashed out upon separation from employment, not to exceed a maximum as follows: In 2014, 248 hours; 2015, 228 hours; 2016, 208 hours; 2017, 188 hours; 2018, 168 boars. 93 Cash Option. Employees covered by this MOU shall be given an option twice per calendar year to receive cash compensation ("cash out") computed on a straight time basis in exchange for eighty (80) hours of their annual holiday leave benefits set forth in Section 9.2 above. Specifically, employees may cash out up to 40 hours of holiday leave benefits in April of each calendar year and an additional 40 hours of holiday leave benefits in November of each calendar year. An employee that does not cash out holiday leave benefits in April may cash out a maximum of 80 hours of holiday leave benefits in November. Such 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 (FLSA). 9.4 All employees must actually work at least one day preceding the day a holiday listed in Section 9.1, supra, actually occurs in order to receive credit for such holiday. The employee will then be credited with all remaining holidays in the year occurring after the appointment. An employee separating from the service of the City must actually work at least one day following the day a holiday listed in Section 9.1, supra, actually occurs in order to receive credit for that holiday. A newly -appointed employee must complete six (6) months of continuous, fall -time service in order to receive credit for the Floating Holiday listed in Section 9.1 above. 9.5 This "time off," as defined in Article X, Section 10.6, 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) hour. 36 25E-38 9.6 A maximum of one (1) year of Holiday benefits may be carried over from one calendar year to the next. An employee terminating employment with the City may cash out accumulated, unused Holiday leave benefits, not to exceed a maximum of 160 hours. ARTICLE X 10.0 VACATION 10.1 Purl ose. It is the policy of the City to grant employees vacation leave in order to provide them with a break in their regular work schedule, and this purpose will be used, as a guide in the administration of the provisions of this Article. 10.2 Vacation, A. 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 eared 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 Accrued Monthly: Accrual Rate 1 80 6:67 2 80 6.67 3 120 10:00 ' 4 120 10.00 5 120 moo 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 16 168 14.00 37 25E-39 17 176 14.67 1s 184 15.33 19 192 16,00 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 (1st) day of the month following completion of six (6) months of continuous fall -tithe 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. Absence on sick leave for a period in excess of fifteen (15) consecutive calendar days shall not be considered as service for vacation accrual purposes. E. Computation of Vacation. 1. Iu 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 ten (10) additional hours of vacation shall be allowed to the employee unless departmental practice provides some other manner of compensating for tmmicipal 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 approval of the Police Chief, 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 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 Santa Ana Municipal Code or by reemployment from layoff within one (1) year. Leave of absence without pay, as provided in Article XI, Section 1E (Sick Leave -Extended) and Section 11.8 (Authorized Absence Without Pay - Long Term), Section 11.11 (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 longevity vacation. Absence on military leave W. 25E-40 10.3 followed by reinstatement, as provided in Section 9-143 of the Santa Ana Municipal Code does not constitute a break in service, and the period of absence on such military leave shall be applied toward the accumulation of longevity vacation. F. Vacation Buy -Back. Employees covered by this MOU are eligible to require the City to buy-back up to sixty (60) hours of their banked vacation, computed on a straight time basis, once per calendar year. Additionally, any member who has taken a minimum of eighty (80) hours of vacation time off during the calendar year (not including the sixty (60) hours of allowed vacation cash -out) shall have the ability to require the City to buy-back an additional forty (40) hours of their banked vacation, computed on a straight time basis, once daring the same calendar year that the leave is taken. Lon evit Vacation. A. Longevity vacation accrual shall be operative only through December 31, 2015, Effective January 1, 2016, vacation accrual shall be governed solely by Section 10.2 B. Each permanent employee is granted additional hours of vacation leave with pay for each computed year of full-time, continuous city service as set forth in the following table. This additional vacation shall be designated longevity vacation. Completed Hourly Equivalent Years of Additional Days 12 16 10 20 11 24 12 28 13 32 39 25E-41 14 36 15 40 16 48 17 56 18 64 19 72 20 80 B. No employee becomes eligible for longevity vacation until completion of the sixth year of continuous service, and each employee continues to earn the maximum of 80 hours of longevity vacation for each completed year of service in excess of 20 years. C. A period of earlier service does not apply toward longevity 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 Santa Ana Municipal Code or by reemployment from layoff within one (1) year. D. Leave of absence without pay, as provided in Article XI, Section 1E (Sick Leave - Extended) and Section 10.8 (Authorized Absence Without Pay - Long Term) 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 longevity vacation. Absence on military leave followed by reinstatement, as provided in Section 9-143 of the Santa Ana Municipal Code does not constitute a break in service, and the period of absence on such military leave shall be applied toward the accumulation of longevity vacation. An employee that is absent without pay for a full calendar year will have their longevity vacation accrual adjusted and not receive credit for one computed year of full-time, continuous city service toward the accumulation of longevity vacation. Such option may be eliminated or modified at the discretion of the Department to the extent it is construed as overtime under Department of Labor guidelines implementing provisions of the Pair Labor Standards Act (FLSA). E. Employees covered by this MO'U shall be given an option once per calendar year, to receive cash compensation computed on a straight time basis in lieu of up to a total of forty (40) hours of their longevity vacation leave benefits set forth in 25E-42 Subsection A above. 10.4 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 400 hours in any one year. 10.5 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 2014 Max Carryover into 2015 Revised Max Carryover into 2016 Max Carryover into 2017 Max Carryover into 2018 Max Carryover into 2019 1 80 80 80 80 80 2 160 160 160 160 160 3 280 280 280 280 280 4 320 320 320 320 320 5 360 360 360 360 360 6 364 3641 364 364 364 7 372 372 372 372 372 8 384 383 382 381 380 9 396 394 392 390 388 10 408 405 402 399 396 11 420 416 412 408 404 12 432 427 422 417 412 13 444 438 432 426 420 14 456 449 442 435 428 15 468 460 452 444 436 16 484 475 466 457 448 17 504 494 484 474 464 18 528 516 504 492 480 19 552 538 524 510 496 20 576 560 544 528 512 21 592 574 556 538_ 520 22 600 580 560 540 _ 520 41 25E-43 23 6005$0 560 540 520 24 600 580 560 540 520 25 6001]�E 5801 5601 5401 5201 B. Notwithstanding the foregoing, for any affected employee who is in jeopardy of losing vacation because of department staffing needs, may with approval of the Police Chief, Executive Director of Personnel and City Manager, receive a 30 -day extension beyond the normal cutoff date so that such employee will not lose vacation time 10.6 Excess Usage. If vacation time off is used in excess of that available, such excess vacation time off will be, first, deducted from any available compensatory time off acerual; finally, deducted from the next scheduled wage or salary payment. 10.7 Time Off Banks. Employee Time Off Banks exist for each employee in the unit. Time off will be computed on an annual basis. Separate banks will be maintained for vacation, holidays, and compensatory time, respectively, based on existing policies applicable to each. Time off from each bunk 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) hour. Each affected employee shall be afforded the opportunity to submit time off selection(s) and the Police Chief or his designee shall make every reasonable effort to accommodate the employee's preference(s). The time at which an employee shall take his or her leave time shall be determined by the Police Chief, with due regard for the wishes of the employee and particular regard for the needs of the service. NOTE: All other policies and procedures described in Article VIII, "Overtime", Article IX, "Holidays", and Article X, "Vacation" will apply to the Time Off Banks. However, no employee will be allowed to carry a negative balance in any Time Off Bank. 42 25E-44 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 non -industrial 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 non - duty related 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 or she 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, employees on leave of absence for service - connected illness or injury who are covered by the provisions of Labor Code Section 4850, shall continue to accumulate eight (8) hours of sick leave for each full calendar month of service for which he or she is employed by the City with full pay during said absence for service -connected illness or injury. C. Authorized Only When Necessary. Use of sick leave by City employees shall be authorized as follows: 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. With respect to "miscellaneous -member" employees covered by this MOU, when such an employee's absence is caused by an industrial illness or injury, for which benefits are required to be provided under the State Workers' Compensation Insurance and Safety Act, the City shall pay 100% of salary for the first three (3) days of such absence and sick leave shall not be debited. D. Limit. The maximum total accumulation of sick leave with pay shall be 1600 hours. SicIc 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). 43 25E-45 E. Extended. The City Manager may grant leave up to six 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) months period. Prior to the expiration of the additional time, the employee may return to his or her position provided that he or she has a certificate from one of the above mentioned physicians 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, 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 not less than one (1) hour prior to the time he or she is scheduled to report for duty. 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 illness or injury and that the employee is sufficiently recovered to safely return to work. Such certificate shall be transmitted to the chief personnel officer with the report of the return of the employee 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 of 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 to an employee, such excess sick leave, will first be deducted from any available compensatory time off benefit; second, from any available vacation leave benefit; third, from any available holiday leave benefits; and finally, deducted from the next scheduled wage or salary payment. Personal Necessity. Each employee shall be afforded the opportunity to use up to 66 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, `child" means a biological, foster, or adopted .M, 25E-46 child, a stepchild, a legal ward, or a child of a person standing in loco parentis; and "parent" means a biological, foster, adoptive parent, a stepparent, or a legal guardian. Up to three (3) days of this personal necessity leave may be used: (a) to attend to a serious accident to members of the employee's immediate family; (b) childbirth; (c) to cope with imminent danger to the employee's home or other valuable property; or (d) when the existence of external circumstances beyond the employee's control make it impractical for 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. Definition. All employees, except for those involved in disciplinary termination, shall be entitled to payment under the following provisions: 1. After ten (10) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for one-third (1/3) of the total sick leave benefit credited to his or her account upon the effective date of such termination, not to exceed a maximum limit of 427 hours, at the rate of pay in effect on the date of such termination. a. At his or her option, an employee may convert the above lump sum payment option into health insurance or long term care insurance premiums to the extent necessary to provide the employee and his or her designated eligible dependents, if any, with benefits under the health insurance program maintained by the Association. The City's obligation to pay such premiums shall be terminated when the sum of premiums paid equals one -hundred fifty percent (150%) of the amount of the hump sum payment that the employee would have received for unused sick leave benefits had this option not been elected, not to exceed a maximum of 640 hours. 2. After 15 years of cumulative full-time service with the City, each qualified employee shall be entitled to credit for two-thirds (2/3) 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 1,066 hours, calculated at the rate of pay in effect on the date of such termination. This credit shall be applied toward monthly health insurance premiums or toward long- term care insurance premiums, beginning on the effective date of termination. The City's obligation to pay such premiums to the Association on behalf of the employee shall be terminated when the total credit as described above has been exhausted. 45 25E-47 After 20 years of cumulative Rill -tine service with the City, each qualified employee shall be entitled to one of two options: (a) payment for 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 533 hours, at the rate of pay in effect on the date of such termination, or (b) credit for 2/3 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 1,066 hours, as defined in' 2" above. 4. After 25 years of cumulative full-time service with the City, each qualified employee shall be entitled to one of two options: (a) payment for 2/3 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 1,066 hours, at the rate of pay in effect on the date of such termination, or (b) credit for 2/3 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 1,066 hours, as defined in "2" above. 5. 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 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. 6. Upon the death of any retired employee receiving a benefit tinder this provision said benefit will continue to be provided on behalf of said retired employee to his or her beneficiary. 11.2 Bereavement Leave. An employee shall be granted up to three (3) days leave without loss of pay in case of death of a member of the employee's itmnediate 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, stepparent, spouse, registered domestic partner, child, brother, stepbrother, sister, stepsister, 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. 46 25E-48 113 Military Leave. A. Proof of Orders and Reinstatements. All employee shall be granted military leave if he or she furnishes the Chief Personnel Officer satisfactory proof of his or her orders to report for duty. Upon return and upon showing proof of actual service pursuant to such orders, he or she will be reinstated as provided in Section 9-143 of the Santa Ana Municipal Code. B. Temporary. Members of the reserve forces of the United States, or the National Guard, granted temporary leave when ordered to duty, in accordance with the Military and Veterans Code and Section 9.144 of the Santa Ana Municipal Code, will be granted leave with pay not to exceed thirty (30) working days in each calendar year after one year's service with the City upon presenting satisfactory proof of orders to and from such temporary active duties. 11.4 Jury and Witness Leave, When an on -duty employee is called to serve as a juror or a non-party witness in any court action he or she shall be allowed leave for the time actually required for such service, without loss of pay. Each on -duty employee called for such service shall present to the Police Chief for examination the subpoena calling 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. Refer to Departmental Order 396 - Jury Duty for specifics. 11,5 Examination Leave. Employees participating in examinations conducted during their normal working hours for positions in the competitive service of the City of Santa Ana will be granted leave with pay for the time actually required, without loss of any accrued vacation or compensatory time off benefits. 11.6 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. Absence from duty without leave for five (5) consecutive working days shall be deemed a resignation from the service; provided, however, if upon return to duty the person so absenting himself makes an explanation satisfactory to the Police Chief of the cause of his absence, the Police Chief may restore him to his position, with the City Manager's approval. 11.7 Authorized Absence Without Pay. Absence without pay not to exceed five (5) consecutive working days, may be authorized by the Police Chief. Absence without pay not to exceed fifteen (15) calendar days may be authorized by the department with the approval of the City Manager. Such absences may be authorized only if in the judgment of the Police Chief they serve the best interest of the City. 11.8 Authorized Absence Without Pay - Long Tann. Upon receipt of a written request from an employee having permanent status plus action by the Police Chief recommending approval of the request, the City Manager may grant a leave of absence for up to six (6) 47 25E-49 months. An employee returning to duty with the City shall inform the Police Chief and chief personnel officer of his or her intention at least thirty (30) calendar days prior to the expiration of the six (6) months period or shorter period if the full six (6) months is not taken. Upon receipt of such notice, the Police Chief will take steps necessary to restore the employee to his or her former position. 11.9 Administrative Leave. The City Manager is authorized to grant, at his discretion, administrative leave with or without pay for permanent employees if, in his opinion, such a leave is in the interests of the City. 11.10 Industrial Leave. A. Each "safety member" employee covered by the provisions of Labor Code Section 4850 who is compelled to be absent from duty because of an illness or injury covered by the State of California Workers' Compensation Insurance and Safety Act shall, in lieu of temporary disability compensation payable under the aforementioned Act, continue to be paid his or her normal salary and accrue other benefits in accordance with the provisions of Labor Code Section 4850. B. Any period of time during which an employee is required to be absent from 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 adjustment or to the accrual of vacation and seniority. 11.11 Catastrophic Leave Donation. In order to assist employees otherwise granted leave of absence without pay by the City Manager because of a catastrophic, non -industrial medical condition or injury, the City and Association agree to implement a Catastrophic Leave Donation Program. A. Guidelines. It shall be understood that all donations Lander this procedure are voluntary and subject to taxation for the recipient. Employees may donate vacation or compensatory time or holiday leave time to the eligible employee. In no event shall sick leave be donated. 2. Employees shall be provided a two -weak 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. If all previous time donated has been exhausted, the recipient may request a new donation period be designated by the Police Chief or his designee as provided herein below. 25E-50 IR C. All vacation, compensatory time or holiday leave time donations must be made in two (2) hoar increments. There is no limit on the amount of the donation that can be made, 4. Any authorization of donations not made in accordance with the procedures outlined in Section 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 and may be used pursuant to Article XI, Sections 11.1A through 11.1K above. Eli ig bility, 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 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. Procedure. I. Upon receipt of a valid request for donations from an eligible employee, the Police Chief or his designee shall post a notice of the eligible employee's need for donations on bulletin boards accessible to employees. No confidential medical information shall be included in the posted notice. 2. Employees wishing to donate time to an eligible employee must sign his or 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 compensatory, holiday or vacation time of the donation within the limitations of Section A, subparagraph 3 above; e. The name, department, and employee number of the recipient; 49 25E-51 d. A statement indicating that the donor rmderstarids such donation of time is irrevocable. At the close of the two-week donation period, the department shall verify that each donating employee has accrued vacation, holiday and/or comp time balances sufficient to cover the designated donation. 4, The department shall submit all approved donation authorizations for an eligible employee at one time for processing. No donation authorizations for the eligible employee will be processed after this period. However, employees who receive donations under this procedure and who exhaust all donated hours may request an additional donation period subject to the provisions of Section A, herein. The City shall add the donated time to the recipient's sick leave account. D. Upon the death of any active employee receiving a benefit under this provision, the City agrees to pay any unused Catastrophic Leave Donations remaining on the books to the surviving beneficiary. E. For those current employees with unused catastrophic leave on the books, the City agrees to convert said unused catastrophic leave to sick leave for use in accordance with the provisions of Article XI, Sections 11.1A through ILII above. 11.12 Assignment Departmental Seniority Employees covered by this MOU who are authorized to be on an unpaid medical leave for twelve (12) weeks or less shall continue to accrue seniority related, to their particular assignment, as it relates to the badge number list or for any other purpose concerning Police Department Operations for which seniority is considered. Once such leave of absence exceeds twelve (12) weeks, the employee will no longer accrue seniority (for all purposes, including, but not limited to his/her classification, assigmnent or rank). While such employee will not lose any of the seniority he/she has previously earned, by not continuing to accrue seniority at that point, others who previously were less senior may become more senior than such employee for seniority purposes in the Department. 50 25E-52 ARTICLE XII 12.0 EMPLOYEE INSURANCE 12.1 During the term of this MOU the City will contribute toward the payment of premiums for health, dental and long-term disability insurance plans administered by the Association for the benefit of the employees represented by the Association as follows: A. Medical Insurance. Effective January 1, 2016, the City will contribute $1,420.00 per month to the Santa Ana Police Officers Association Medical Insurance Trust Fund for each affected employee enrolled in medical insurance plans provided by the Association for its bargaining unit members and their eligible dependents. Any contributions necessary to maintain benefits Larder the plans in excess of the aforementioned amount per month shall be borne entirely by the Association and/or the enrollee. Effective January 1, 2017, the City will contribute $1,510,00 per month to the Santa Ana Police Officers Association Medical Insurance Trust Fund for each affected employee enrolled in medical insurance plans provided by the Association for its bargaining unit members and their eligible dependents. Any contributions necessary to maintain benefits under the plans in excess of the aforementioned amount per month shall be borne entirely by the Association and/or the enrollee. B. Life Insurance. The City shall maintain in effect for the term of this MOU its existing life insurance plan for employees covered by this MOU on the same basis as said plan was offered to employees as of December 31, 1988 except the term life insurance coverage for each affected employee will be in the amount of twenty thousand dollars ($20,000), phis twenty thousand dollars ($20,000) accidental death and dismemberment (AD + D) coverage, at no cost to the employee, 12.2 Retiree Health Insurance Plan.. Members retiring on or after July 1, 1997, will be provided health insurance prernium reduction assistance, All bargaining unit employees and the Association shall hold the City harmless, defend and indemnify the City for any claims regarding the administration of, or the payment of, claims under any Association designed retiree health insurance benefit plan. 12.3 Employees on unpaid leave of more than fifteen (15) calendar days shall not receive the City's contribution toward any insurance coverage, The Police Department will notify the Association of all employees on unpaid leave or who separate from City employment within three (3) working days. The City will continue the payment of contribution for insurance coverage until the end of the month in which the Association had received notice from the City of the employee's separation from employment. 51 25E-53 ARTICLE X.111 13.0 RETIREMENT 13.1 General. The City shall continue to make contributions to the California Public Employees' Retirement System (CaIPERS) in accordance with its contract with Ca1PERS for employees covered by said contract as amended. 13.2 Deferred Retirement, The City shall continue to make payment to CaIPERS on behalf of each employee covered by this MOU in accordance with the following schedule: A. With respect to Safety employees covered by this MOU who do not qualify as "New Members" under the California Public Employees' Pension Reform Act of 2013 (PEPRA), the City shall pay an amount equal to nine -ninths (9/9ths) of his or her individual employee retirement contribution. B. With respect to Miscellaneous employees covered by this MOU who do not qualify as "New Members" under the California Public Employees' Pension Reform Act of 2013 (PEPRA) the City shall pay an amount equal to eight -eighths (8/8ths) of his or her individual employee retirement contribution. 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 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, not ordinary income, hi the event that the City receives a subsequent 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 affected employee shall forthwith be increased by eighteen (18) salary rate ranges (9.0%) for Swom Safety employees who do not qualify as "New Members" and sixteen (16) salary rate ranges ($.0%) for Miscellaneous employees who do not qualify as "New Members" covered by this MOU. 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 CalPERS Fourth Level of 1959 Survivors Benefits. The City will provide CaIPERS fourth level of 1959 Survivors Benefit to all eligible employees in the unit. 52 25E-54 13.4 CalPERS Pre -Retirement Optional Settlement 2 Death Benefit. The City shall provide the CalPERS Pre -Retirement Optional Settlement 2 Death Benefit to all employees covered by this MOU. 13.5 Military Service Credit as Public Service. Safety employees, and Miscellaneous employees, respectively, 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. The City agrees that, as soon as practicable following Council approval of this MOU and amendment to the CalPERS contract, employees who elect to purchase service credit may do so on a "pre-tax" basis. 13.6 3% at 50 Service Retirement Benefit for Safety employees, The City contracts with CalPERS to provide Safety employees who do not qualify as "New Members" Under PEPRA with the 3% at 50 Service Retirement benefit. All Safety employees who do not qualify as "New Members" under PEPRA shall pay nine percent (9%) of their salary to pay for the employer portion of the City's CalPERS contribution. This payment shall be paid in accordance with Government Code Section 20516(f). Pre -Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.7 2.7% A 57 Service Retirement Benefit for "New Member" Safes employees. The Cid agrees to provide Safety employees who are defined as "New Members" within the meaning of the California Public Employees' Pension Reform Act (PEPRA) of 2013 with the 2.7% @ 57 Service Retirement benefit. 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 will be based on the highest annual average compensation earnable 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 covered under the 2.7% @ 57 retirement formula shall pay one half of the normal cost rate as established by CalPERS, For the fiscal year 15-16, CalPERS established that one half of the normal cost rate is 12.25%. The rate for fiscal year 1.6-17 is still to be determined by CaIPERS. 53 25E-55 Pre -Taxable Benefit. To the extent permitted by COPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.8 2.7% at 55 Service Retirement Benefit for Miscellaneous employees. The City contracts with CalPERS to provide Miscellaneous employees who do not qualify as "New Members" under PEPRA with the 2.7% at 55 Service Retirement benefit. Effective July 1, 2015, the employee's contribution rate for Miscellaneous employees who do not qualify as "New Members" under PEPRA will be reduced from ten and one half (10.5%) percent to nine (9%) percent of their salary. All employee contributions for retirement benefits are paid to the employer portion of the City's CaIPERS contribution. This payment shall be paid in accordance with Government Code section 20516(f). Pre -Taxable Benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. During the term of this MOU, should the employee contribution rate for SEN employees who do not qualify as "New Members" be reduced below 9% of their salary, Miscellaneous employees covered by the MOU who do not qualify as "New Members" under the PEPRA shall receive the same reduction in the employee contribution rate to the date such reduction went into effect for SEIU. 13.9 2% @ 62 Service Retirement Benefit for "New Member" Miscellaneous employees. The City agrees to provide Miscellaneous employees covered by this MOU who are defined as "New Members" within the meaning of the California Public Employees' Pension Reform Act (PEPRA) of 2013 with the 2% @ 62 Service Retirement benefit 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 will be based on the highest annual average compensation earnable 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 covered Lander the 2% @ 62 retirement formula shall pay one half of the normal cost rate as established by CaIPERS. For the fiscal year 15-16, CalPERS established the rate as 6.75%. The rate for fiscal year 16-17 is still to be determined by CalPERS. Pre -Taxable Benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 54 25E-56 13.10 Credit for Unused Sick Leave. All employees covered by this MOU can have tmused accumulated sick leave at the time of retirement converted to additional service credit, pursuant to regulations prescribed by PERS. 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 of retirement is within four (4) months of separation from employment. ARTICLE XIV 14.0 RELEASE TIME FOR ASSOCIATION REPRESENTATIVE During the term of this MOU, the City agrees to grant full-time release from duty for one (1) Association representative for the conduct of Association affairs subject to the following: 14.1 The Association shall reimburse the City for one hundred percent (100%) of salary (including any salary additives, such as career incentive pay) and benefit costs. Such reimbursement may be from the bank established pursuant to Section 8.15 of Article VIII of this MOU, The parties agree as follows: A. The POA President will be compensated at a rate consistent with his or her departmental rank including all assignment pay, pay additives, and premiruns in place at the time he or she assumes the position of POA President, B, The value of the President's pay will include base salary, pension, premiums, and medical only. C. The value of the Floating Holiday donations will include base salary, pension, premiums, and Medicare. D. The City shall pay the POA President a "Confidential Premium" in lieu of 20 hours per pay period at time and one-half. This premium is contained in the California Public Employees' Retirement Law (PERL) and is described as "compensation to rank and file employees who are routinely and consistently assigned to sensitive positions requiring trust and discretion." The parties agree that the value of this premiinn shall be equivalent to 28 hours of pay at straight time per pay period. The rate paid shall be tied to the incrunbent's rank. The POA agrees that the acceptance of said compensation as described in section E as "PERSable" is subject to PERS approval and if it is determined that said compensation is not "PERSable" the City is not obligated to provide additional benefits. E. The Police Chief shall allow on -duty time, (up to three days) for five board members, once per year, to attend the Peace Officers' Memorial. The Police Chief shall allow on -duty time (up to four days) for five board members, once per year, 55 25E-57 to attend the Fraternal Order of Police (`TOP") training. POA will pay for all costs for the board members attendance at said events, including per diem, travel, hotel, etc. if the Memorial or FOP falls on a board members normal day off; they will not receive on -duty pay for attendance. 14.2 The Association shall provide an insurance policy or policies, or certificate of such insurance, naming the City of Santa Ana, its officers, employees and agents as insured or additional insured, which provides coverage against liability for any and all claims and/or suits for damages or injuries to persons or property resulting from or arising out of any act or omission of said Association representative. Said policy or policies of insurance shall provide coverage for both bodily injury and property damage in not less than the following minimum amounts: One million dollars ($1,000,000.00) combined single limit or its equivalent. Said policy or policies shall also contain a provision that no termination, cancellation or change of coverage of insured or additional insured shall be effective until thirty (3 0) days' notice thereof has been given in writing to the City of Santa Ana. 14.3 The Association shall provide the City of Santa Ana with an insurance certificate from a workers' compensation insurance carrier certifying that it carries primary workers' compensation insurance on behalf of said Association representative and the policy shall not be cancelled nor the coverage reduced except upon ten (10) days' prior notice to the City of Santa Ana. 14.4 The Association shall indemnify and save harmless the City of Santa Ana, its officers and employees, from and against any and all damage to property or injuries to or death of any person or persons, including property and employees or agents of the City of Santa Ana, and shall defend, indemnify and save harmless the City of Santa Ana, its officers and employees, from any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers' compensation claims, resulting from or arising out of the negligent acts, errors, or omissions, or arising out of the intentional or malicious acts of Association's representative. 14.5 The Association and the City of Santa Ana agree that the Association's representative will not be required to carry out any peace officer's duties during such time that the Association's representative is on such full-time release from duty. The Association's representative will be required to comply with the Rules and Regulations of the Santa Ana Police Department as they apply to off-duty employees, except such representative will not be required to report for duty for any purpose. 14.6 Upon return to duty from such full-time release, the Association's representative shall be restored to the same position without loss of any benefits as he or she would have occupied or accrued if there had been no disruption in duty status. The Association agrees that since the Association representative does not report for duty or account to the City for his or her sick leave or vacation time, that vacation and sick leave accruals shall be treated as follows: 56 25E-58 A. The Association representative shall accrue eight (8) hours of sick leave each month until the accrued sick leave total reaches a maximum of 1600 hours. B. Vacation shall be accrued pursuant to Article X of the POA MOU. ARTICLE XV 15,0 SAFETY 15.1 The City and the employees of the City agree to comply with all applicable federal, state and local laws, and City of Santa Ana regulations, which relate to health and safety. ARTICLE XVI 16.0 RESIDENCY 16.1 To the extent possible, the City shall perform any and all acts necessary to remove limitations upon where employees reside who are covered by this MOU. At the discretion of the Police Chief, selected special duty assignments may be designated as rapid response assignments. In those instances, the Police Chief may apply specific residency requirements upon members assigned to those positions. [This space intentionally left blank] 57 25E-59 ARTICLE XVII 17.0 DISCIPLINE 17.1 Any permanent employee covered by this MOU may only be disciplined in accordance with the standards and procedures and subject to all rights of appeal set forth in Santa Ana Municipal Code Sections 9-9, 9-10, 9-118.1, et seq. Any probationary employee covered by this MOU may be disciplined in accordance with the standards and procedures set forth in Santa Ana Municipal Code Sections 9-90, 9-91, 9-118, and subject to review in accordance with the grievance review procedure contained in this MOU. 17.2 In addition, a new 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 of his position, less any compensation paid to him by the City during such ordered absence unless such employee waives his/her rights to retroactive pay. 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 or 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 or 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. 58 25E-60 ARTICLE XVIII 18.0 GRIEVANCE REVIEW PROCEDURE 18.1 Definition of 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 provision 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 participating in the Grievance Review Procedure. 18.2 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. If the employee's grievance is directed against the actions of his or her immediate supervisor, the employee may initiate his or her grievance with his or her Division Commander. In such cases, the employee shall file his or her grievance directly with the Division Commander within ten (10) calendar days of the event. Response time lines will continue as designated for Division Commander and above. If the grievance is directed toward the Division Commander, the employee may file directly with the Bureau Commander. B. The Supervisor will respond to the grievance within seven (7) calendar days of receiving the grievance. C. If the grievance is not resolved at the inrruediate supervisor level, the employee, within ten (10) calendar days of the supervisor's response, will attempt to resolve the grievance on an informal basis through discussion with his or her Division Commander. The Division Commander will respond to the grievance within seven (7) calendar days of receiving the employee grievance, D. Every effort shall be made to find an acceptable solution to the grievance through this informal process. E. If the grievance is not resolved 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 Bureau Commander. At this point, the 59 25E-61 grievance review process becomes formal. Should the grievant fail to file a written grievance, and in the manner specified above, within ten (10) calendar days after receiving the response from his or her Bureau Commander, the grievance shall be barred and waived. 18.3 Formal Process. A, If the 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 and Division Commander will add their comments and any justification they consider proper, sign it, and forward it to their Bureau, Commander without undue delay, or in no case, more than seven (7) calendar days after receiving the formal grievance. A copy shall be provided to the employee. B. The Bureau Commander, after study of the case, shall attach his or her decision and reasons therefore, and return them to the employee within seven (7) calendar days after receipt of the written grievance. C. If no satisfactory settlement has been reached at the division level, the employee may, within seven (7) calendar days after receipt of the Bureau Commander's decision may, in writing, request a meeting with the Police Chief to pursue the employee's grievance. 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 Bureau Commander's response. D. If the grievant files a written grievance to the Police Chief in the matter and within the time limits specified in "C" above, then a conference shall be held at the request of the employee or the Police Chief. E. The Police Chief shall inform the employee of his action within fourteen (14) calendar days of the filing of the written grievance with the Police Chief or the date the conference is held between the employee and the Police Chief. F. If no satisfactory settlement has been reached at the departmental level, the employee may, within seven (7) calendar days after being informed by the Police Chief of his decision on the matter, and the reasons thereof, submit the grievance in writing to the City Manager, or his 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 Police Chief's response. The City Manager, or his representative, after careful review, shall render a final decision on the merits of the grievance, in writing, and return it to the grievant within twenty-one (21) calendar days after receiving the grievance. A copy of the 25E-62 written grievance to the City Manager, and of the City Manager's decision, shall be filed in the Personnel Records of the department and the grievant's personnel jacket maintained in the Personnel Services Department, G. After the procedure set forth in this Article has been exhausted, the grievant, the Association, and the City shall have all rights and remedies to pursue said grievance under the law. ARTICLE XIX 19.0 DUES DEDUCTION AND INDEMNIFICATION 19.1 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. 19.2 Indemnification. The Association agrees to hold the City harmless and indemnify the City against any claims, causes of actions, or lawsuits instituted by a member or members of the Association arising out of the deductions or transmittal or such Rinds to the Association, except the intentional failure of the City to transmit, to the Association, monies deducted from the employees pursuant to this Article. [This space intentionally left blank] 61 25E-63 ARTICLE XX 20.0 CITY RIGHTS 20.1 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 detennine the issues of policy. S. 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 detennine the nature, mariner, 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 work force 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. 1. 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. J. 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 and procedures set forth in the City 62 25E-64 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 for selection, training, and promotion of employees. 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. 20.2 Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of Management's rights shall impact on a significant number of employees of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in the MOU. The City and Association agree that upon the expiration of this contract and during the good faith negotiations for a subsequent contract, salary and benefits shall continue at the then current rate. 63 25E-65 ARTICLE XXI 21.0 STRIKES AND WORK STOPPAGES 21.1 Prohibited Conduct. A. The Association, its officers, agents, representatives, and/or members agree that during the term of this MOU, they will not cause or condone any unlawful strike, walkout, slowdown, sick-out or any other unlawful job action by withholding or refusing to perform services. B. Any employee who participates in any conduct prohibited in Subsection A above shall be subject to suspension, demotion or dismissal by the appointing authority. C. In addition to any other lawfil remedies or disciplinary actions available to the City, if the Association tails, in good faith, to perform all responsibilities listed below in Section 21,2, Association Responsibility, the City may suspend any and all rights and privileges, accorded to the Association in this MOU, including but not limited to suspension of the Grievance Review Procedure and dues deduction, 21.2 Association Responsibility. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 21.1A of this Article, Prohibited Conduct, the Association shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this MOU and unlawful, and they must immediately cease engaging in conduct prohibited in said Section 21.IA, and return to work. 64 25E-66 ARTICLE XXII 22.0 LAYOFFS 22.1 All layoffs within the competitive service occasioned by abolishment of a position, the combination of duties of two (2) or more positions, or the reduction in numbers of employees in a given class, shall be governed by seniority in the class. Reemployment shall be in reverse order of layoff, 22.2 Any promotional probationary employee laid off under these procedures who held permanent status in a lower class shall retain seniority rights in the previously held classification provided that it is still listed in the City's current basic classification and compensation plan. 22.3 Any permanent, full-time employee laid off under the above provisions may request a demotion to a position in a lower class provided he/she meets reasonably related qualifications required for placement in the class and the position is vacant. 22A In lieu of layoff, an employee may elect to work in a lower level classification, in which he or she has served, providing that classification is within the same ,job family/career ladder. In that event, the employee's length of service in the next lower classification will be added to his or her length of service in the affected classification, and said combined seniority shall be used to bump down into the next lower classification. This method of combining seniority shall be applied to subsequent lower classifications. 22.5 For positions that were advertised in the Police Department as "open and promotional" or "promotional only" which are open to Police Department employees only, there will be created a "job ladder" such that those employees in positions to be eliminated through layoff shall be entitled to return to the POA job classification in the Police Department from which they promoted, "bumping" any employee in that job class with less cumulative years of service in that job class than the bumping employee had in that job class prior to promotion. 22,6 Notice of Service. On request, a laid off employee shall receive a statement certifying that his/her services have been satisfactory. Layoff shall not be used in lieu of a disciplinary dismissal. 65 25E-67 ARTICLE XXIII 23.0 MISCELLANEOUS PROVISIONS 23.1 Reopener. The Association and City mutually agree to re -open the MOU to meet and confer on the subjects of: A. The use of body cameras; and B. Implementation of the Lexipol Policy Manual. 23.2 Uniform Allowance. With respect to Safety and Miscellaneous employees who do not qualify as "New Members" tinder the California Public Employees' Pension Reform Act (PEPRA), the City shall report to CalPERS the monetary value of uniforms and uniform maintenance for those employees required to wear uniforms. The monetary value by classification is listed in Exhibit C, entitled "Uniform Allowance by Classification." The value of the Uniform Allowance shall be determined by the City and will be reported to the California Public Employees' Retirement System (CalPERS) for retirement purposes only. Under CCR 571(a), Uniform allowance is defined as "Compensation paid or the monetary value for the purchase, rental and/or maintenance of required clothing, including clothing made, from specially designed protective fabrics, which is a. ready substitute for personal attire the employee would otherwise have to acquire and maintain. This excludes items that are solely for personal health and safety such as protective vests, pistols, bullets and safety shoes. ARTICLE XXIV 24.0 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 of understanding, or contrary salary and/or personnel rules and regulations or administrative codes, provisions of the City, oral and written, expressed or implied, between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be asserted hereunder. This MOU is not intended to conflict with federal or state law or the City Charter. 23.2 The City will continue to administer its employee relations and, its persomiel 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. Me 25E-68 ARTICLE XXV 25.0 WAIVER OF BARGAINING DURING THE TERM OF THIS MOU 25.1 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 terns and conditions of employment, whether or not covered by the MOU or in the negotiations leading thereto, unless required by specific provisions of this MOU, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this MOU. ARTICLE XXVI 26.0 SEPARABILITY PROVISION 26.1 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 fall 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. ARTICLE XXVII 27.0 TERM OF MOU 27.1 The term of this MOU shall be from July 1, 2015 through June 30, 2017. [This space intentionally left blank] 67 25E-69 ARTICLE XXVIII 28.0 RATIFICATION AND EXECUTION 28.1 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 said 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 Memorandum of Understanding 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 Memorandum of Understanding is hereby executed by the authorized representatives of the City and the Association and entered into this 3'd day of November, 2015. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: MAYOR Dated: By: CITY MANAGER Dated: By: ATTEST: CLERK OF THE COUNCIL APPROVED AS TO FORM: p CITY ATTORNEY 68 25E-70 EXECUTIVE DIRECTOR - PERSONNEL SERVICES This MOU has been ratified by the membership of the Santa Ana Police Officers Association. Dated: SANTA ANA POLICE OFFICERS ASSOCIATION By: John Franks PRESIDENT 69 25E-71 EXHIBIT A BASIC SALARY AND WAGE SCI4EDULE 0 1 2 3 4 5 6 7 8 9 41 1542 1.549 1557 1565 1573 1580 1588 1596 1604 1612 42 1619 1627 1635 1643 1651 1659 1668 1676 1684 1693 43 1700 1708 1717 1725 1734 1742 1751 1760 1769 1778 44 1785 1793 1802 1811 1820 1830 1839 1848 1857 1866 45 1874 1883 1892 1902 1911 1921 1930 1940 1950 1960 46 1968 1977 1987 1997 2007 2017 2027 2037 2048 2058 47 2066 2076 2086 2097 2107 2118 2128 2139 2150 2160 48 2169 2179 2190 2201 2212 2223 2234 2246 2257 2268 49 2277 2288 2299 2311 2322 2334 2346 2357 2369 2381 50 2391 2402 2414 2427 2439 2451 2463 2475 2488 2500 51 2511 2523 2536 2548 2561 2574 2587 2600 2613 2626 52 2637 2650 2663 2676 2690 2703 2717 2730 2744 2758 53 2769 2782 2796 2810 2824 2838 2853 2867 2881 2896 54 2907 2921 2936 2950 2965 2980 2995 3010 3025 3040 55 3052 3067 3082 3098 3113 3129 3144 3160 3176 3192 56 3205 3221 3237 3253 3269 3285 3302 3318 3335 3352 57 3365 3381 3398 3415 3432 3449 3467 3484 3501 3519 58 3533 3550 3568 3586 3604 3622 3640 3658 3676 3695 59 3710 3728 3747 3765 3784 3803 3822 3841 3861 3880 60 3896 3915 3935 3954 3974 3994 4014 4034 4054 4074 61 4091 4111 4132 4152 4173 4194 4215 4,236 4257 4278 62 4296 4317 4339 4360 4382 4404 4426 4448 4470 4493 63 4511 4533 4556 4579 4601 4624 4648 4671 4694 4718 64 4741 4764 4787 4810 4834• 4858 4882 4906 4930 4954 65 4978 5002 5026 5051 5076 5101 5126 5151 5176 5201 66 5226 5252 5278 5304 5330 5356 5382 5408 5434 5461 67 5488 5515 5542 5569 5596 5623 5650 5678 5706 5734 68 5762 5790 5818 5847 5876 5905 5934 5963 5992 6021 70 25E-72 69 6050 6080 6110 6140 6170 6200 6230 6260 6291 6322 70 6353 6384 6415 6446 6478 6510 6542 6574 6606 6638 71 6670 6702 6735 6768 6801 6835 6869 6903 6937 6971 72 7005 7039 7073 7107 7141 7176 7211 7247 7283 7319 73 7355 7391 7427 7463 7499 7535 7571 7609 7647 7685 74 7723 7761 7799 7837 7875 7913 7951 7989 8029 8069 75 8109 8149 8189 8229 8269 8309 8349 8389 8431 8473 76 8515 8557 8599 8641 8683 8725 8767 8809 8853 8897 77 8941 8985 9029 9073 9117 9161 9205 9250 9296 9342 78 9388 9434 9482 9529 9577 9625 9673 9721 9770 9819 79 9857 9906 9955 10005 10055 10105 10156 10207 10258 10309 80 10350 10401 10453 10506 10558 10611 10664 10717 10771 10825 81 10868 10922 10976 11031 11086 11142 1.1198 11254 11310 11366 82 11411 11468 11525 11583 11640 11699 11757 11816 11875 11934 83 11982 12041 12102 12162 12223 12284 12345 12407 12469 12532 84 12581 12643 12707 12770 12834 12898 12963 13027 13093 13158 85 13210 13275 13342 13409 13476 13543 13611 13678 13748 13816 86 13871 13939 14009 14079 14150 14220 14292 14362 14435 14507 87 14565 14636 14709 14783 14858 14931 15007 15080 15157 15232 88 15293 15368 15444 15522 15601 15678 15757 15834 15915 15994 71 25E-73 EXHIBITB ASSIGNMENT OF CLASSES TO SALARY RATE RANGES (JULY 1, 2015) RANGE. JOB TITLE NO. Mise Max POLICE OFFICER 695 6200 7535 POLICE SERGEANT 738 7647 9296 ANIMAL SERVICE OFFICER I 631 4533 5515 ANIMAL SERVICE OFFICER II 661 5252 6384 BACKGROUND INVESTIGATOR 646 4882 5934 COMMUNICATIONS SERVICES OFFICER 626 4426 5382 CORRECTIONAL OFFICER 646 4882 5934 CORRECTIONAL SUPERVISOR 695 6200 7535 CRIME RESEARCH AIDE 657 5151 6260 CRIME RESEARCH ANALYST 683 5847 7107 EMERGENCY OPERATIONS COORDINATOR 715 6835 8309 FIREARMS EXAMINER 702 6415 7799 FORENSIC SERVICES SUPERVISOR 733 7463 9073 FORENSIC SPECIALIST 1 657 5151 6260 FORENSIC SPECIALIST II 676 5650 6869 PARKING CONTROL OFFICER 596 3822 4648 POLICE ATHLETIC/ACTIVITIES LEAGUE ASSISTANT DIR 625 4404 5356 POLICE COMMUNICATIONS SUPERVISOR 691 6080 7391 POLICE COMMUNITY SERVICES SPECIALIST 646 4882 5934 POLICE EVIDENCE AND SUPPLY SPECIALIST 629 4493 5461 POLICE EVIDENCE AND SUPPLY SUPERVISOR 649 4954 6021 POLICE INVESTIGATIVE SPECIALIST 646 4882 5934 POLICE PHOTO/VIDEO SPECIALIST 626 4426 5382 POLICE PROPERTY AND EVIDENCE SUPERVISOR 649 4954 6021 POLICE RECRUIT 655 5101 6200 POLICE SERVICE OFFICER 626 4426 5382 POLICE SERVICES DISPATCHER 651 5002 6080 72 25E-74 RANGEMASTER 626 4426 5382 SENIOR PARKING CONTROL OFFICER 616 4215 5126 TRAFFIC SERVICES SPECIALIST 646 4882 5934 73 25E-75 EXHIBIT C UNIFORM ALLOWANCE BY CLASSIFICATION Job Title Monthly Uniform Allowance Animal Service Officer I $15.42 Animal Service Officer 1I $15.42 Commi nications Services Officer $14.58 Correctional Officer $14.34 Correctional Supervisor $14.34 Forensic Specialist I $14,34 Forensic Specialist II $14.34 Parldng Control Officer $14.58 Police Communications Supervisor $14.58 Police Community Services Specialist $14.58 Police Investigative Specialist $14.58 Police Property & Evidence Supervisor $14.58 Police Recruit $14.58 Police Officer $20,84 Police Sergeant $20.84 Police Officer (with Motor Officer Premium) $24.16 Police Sergeant (with Motor Officer Premium) $24,16 Police Service Officer $14.58 Police Services Dispatcher $14.58 Senior Parking Control Officer $14,58 Traffic Services Specialist $14.58 74 25E-76 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: TITLE: APPROVED AWARD AGREEMENT TO IBI GROUP FOR ® As Recommended PARKING MANAGEMENT PLAN [I As Amended CONSULTING SERVICES Ie Ordinance on 181 Reading (] Ordinance on 2"d Reading {STRATEGIC PLAN NO. 6, 1C} ® Implementing Resolution ® Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute an agreement with 1131 Group, subject to nonsubstantive changes approved by the City Manager and City Attorney, for a parking management plan at the Santa Ana Regional Transportation Center, for a term expiring June 30, 2016, in an amount not to exceed $35,000. The Santa Ana Regional Transportation Center (SARTC) is a regional transportation hub that brings together Amtrak, Metrolink, Grange County Transit Authority, and other bus services with office space for various State, County, and City departments. SARTC is open to the public seven days a week from 5:00 a.m. to 11:30 p.m. The facility contains approximately 355,000 square feet of total rental space, Including a five -story theme tower that houses additional office space and conference rooms. On August 6, 2012, after completing a Request for Proposals process, the City entered into an agreement with the 1131 Group to develop a parking management plan for the SARTC. A draft parking management plan was completed in March of 2013. Shortly after completion of the draft parking management plan, the SARK Master Plan was placed on hold, pending City reorganization, At this time, the City is interested in finalizing the parking management plan as a potential strategy to generate revenue and offset the operational costs. In addition, the consultant will assist in researching various parking access control systems that are suitable for the SARTC as well as other City -owned structures. 25F-1 Agreement with IBI Group for Parking Management Plan Consulting Services November 3, 2015 Page 2 Staff recommends awarding an agreement to IBI Group (Exhibit 1). The Scope of Work includes updating parking usage data, finalizing the plan, and researching payment methods and technologies that best meet facility management's need for accurate parking control, ease of use by patrons, and cost-effectiveness to implement and operate. Upon staff evaluation of the parking equipment recommendations, IBI Group will prepare specifications for the equipment that best meets the City's needs. Staff will utilize the specifications to complete the acquisition of a parking access control system for the SARTC. The fee proposal for these services is $34,352, Staff recommends entering into an agreement with IBI Group for an amount not to exceed $35,000. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 Community Facilities and 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). FISCAL IMPACT Funds are budgeted for expenditure in FY 2015-16 from the SARTC Operations Contract Services account (No. 06717650-62300) in the amount of $28,952 and the Parking Facilities Contractual Services -Professional account (No. 02710132-62300) in the amount of $6,048. APPROVED AS TO FUNDS AND ACCOUNTS: I _ lousavipour Francisco Gutierrez sive Director Executive Director Works Agency Finance & Management Services Agency FM/MLM/GPL Exhibits: 1. Agreement 25F-2 CONSULTANT AGREEMENT THIS AGREEMENT, made and entered into this _ day of November, 2015 by and between IBI Group, a California general partnership, (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 City desires to retain a consultant having special skill and knowledge in the field of parking technology and development of parking management plans. B. Consultant represents that Consultant is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting 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 those services as set forth in Exhibit A to this Agreement. E 411 uU i;UY14ID a. City agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges identified in Exhibit A. The total sum to be expended under this Agreement shall not exceed $35,000 during the term of this Agreement. b. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. �-v "t7uT1 This Agreement shall commence on the date first written above and terminate on June 30, 2016, unless terminated earlier in accordance with Section 12, below. The term of this Agreement may be extended upon a writing executed by the City Manager and the City Attorney. I 25F-3 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. 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 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. Consultant shall supply City with a fully executed additional insured endorsement in substantially the form attached hereto as Exhibit B upon execution of this Agreement and shall be approved in form by the City Attorney. 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. 25F-4 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. 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 effect 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. 6. INDEMNIFICATION Consultant 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, including death, and claims for property damage, which may arise from the negligent operations of the Consultant 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; 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. 7. 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 3 25F-5 like importance, but in no event less than reasonable card. "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. 8. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 9. NOTICE Any notice, tender, demand, delivery, or other commumication 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: Cleric 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 Executive Director for Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, California 92702 Fax (714) 647-5635 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702 Fax 714- 647-6515 25F-6 To Consultant: IBI Group David Chow 18401 Von Karman Avenue, Suite 110 Irvine, CA 92612 Email: dchow@ibigroup.com 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. [[i]� o1:C�Iilib Y t1��►lJlu_I K"I at -w" 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 nor 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. 11. 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. 12. 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: S 25F-7 a. Asa condition of such payment, the Executive Director may require Consultant 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 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. 13. 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. 14. 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. 15. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 16. MISCELLANEOUS PROVISIONS a. 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. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. 25F-8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year First above written. ATTEST: MARIA D.14UIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By. Jo S ndoval i Assistant City Attorne RECOMMENDED FOR APPROVAL: FRED MOUSAVIPOUR Executive Director Public Works Agency CITY OF SANTA ANA DAVID CAVAZOS City Manager 25F-9 David Chow Regional Director, US West Tax ID# Alistair Baillie Operating Director FAX SCOPE OF SERVICES 25F-10 j—' -j 1131 GROUP el401 Von Kannnan Avenue 949 8 33 55 -Suite 1 B 10 8 8 f x 949 83355111 I ibigroup.com October 6, 2015 Gabriela Lomeli Project Specialist City of Santa Ana - Public Works Agency 1000 E. Santa Ana Blvd Santa Ana, CA 92701 RE: IBI GROUP WORK SCOPE AND BUDGET — Update to 2013 Draft Santa Ana Regional Transportation Center Parking Management Plan Dear Ms. Lomeli IBI Group is pleased to provide this scope of work and budget estimate to update and complete the Parking Management Plan for the Santa Ana Regional Transportation Center (SARTC). The work effort outlined in this scope of work is intended to allow for updates to the background data and assumptions used in the development of the parking management plan, which will permit IBI Group to prepare and finalize an update to the Parking Management Plan final report and the recommendations contained in this plan. Baseline Assumptions The scope of work presented below is based on the following assumptions: • No new outreach events or surveys will be included as part of the update to the Parking, Management Plan. Input received from the 2012/2013 outreach events will be utilized in this update. • The City of Santa Ana will be able to provide recent parking occupancy data at SARTC as collected by security staff on-site during 2015. • The City of Santa Ana will be able to provide recent information regarding the number of long-term parking permits issued at SARTC during 2015. • The City of Santa Ana will provide utilization and in/out counts for the four city -owned parking garages in Downtown Santa Ana, • The City of Santa Ana will provide parking occupancy and utilization data for the four city -owned parking garages in Downtown Santa Ana from the 2012 Downtown Parking study. Scope of Work Task 1 — Project Management The project management effort involves ongoing coordination between the consultant and City staff to ensure that the project proceeds on schedule and that project work efforts and deliverables are completed on-time and up to the quality expected by the client. To help ensure appropriate tracking and monitoring of the project work effort and schedule, we propose to conduct monthly progress conference calls or meetings that would Involve at a minimum IBI's IBI Group Is a group of firms providing professional services 25F-11 IBI GROUP October 6, 2015 Project Manager and the City's Project Manager. These meetings would be an opportunity to discuss upcoming action items, current deliverables, and planned meetings with stakeholders and the community. Prior to each meeting, IBI Group will prepare an update to the project schedule and maintain and update an project action items list that documents the current work efforts, anticipated completion dates, and next steps. Deliverables: Monthly Project Update Conference Calls/Meetings Monthly Invoicing and Progress Reports Task 2. Update Existing Facility Data The current March 2013 version of the Parking Management Plan includes data on parking occupancy and duration collected in 2012. It is IBI Group's understanding that the city does have limited recent data related to occupancy for the surface parking lots and parking structure. Due to the age of the parking occupancy and duration counts, it is recommended that this update to the Parking Management Plan include the completion of updated parking occupancy or utilization surveys on one weekday and one weekend day during the morning, mid-day, and evening peak period to better understand current 2015 parking patterns and utilization. Once these counts are completed, IBI Group will update the analysis of existing parking demand and utilization within the Parking Management Plan. This analysis is an important input to financial analysis contained in the plan; and in the development of the recommendations for the study. Deliverables: Update to Existing Conditions Analysis in the Final Parking Management Plan Task 3. Parking Analysis and Evaluation This task will involve the completion of updates to the analysis and evaluation the performance and acceptability of potential parking strategies intended to address the issues and opportunities that have emerged from the data and survey information previously collected. There are several options for implementing a pricing structure at the SARTC, including overnight parking fees, reserved parking fees, monthly permits, etc. The draft 2013 Plan contained a series of recommendations regarding parking pricing based on the 2012 parking count data and user surveys and outreach. Within this work effort, IBI Group will update the assessment of parking fees for SARTC, and prepare a set of updated recommendations related to the implementation of parking fees. For each fee strategy, IBI Group will evaluate the proposed strategy for its effectiveness and ability to meet the needs of the various types of facility users. IBI Group will identify the strategies that are suitable for the short-term (1-5 years) and long-term (over 5 years) timeframe. The updated evaluation analysis will consider the following elements of the parking management plan: » Parking Payment Method and Technology - An assessment of each type of system will be conducted to see which method best serves the station and the City. Some stations with a pricing structure process the payments through City Hall, while some contract the 25F-12 181 GROUP October 6, 201 G service to a vendor. IBI Group will provide the City of Santa Ana an evaluation of the pros and cons of each method, Parking Enforcement— Parking control enforcement is an important element to consider when implementing a pricing structure. Most stations with a pricing structure have some type of enforcement plan to ensure that patrons are utilizing the spaces correctly. Parking at the SARTC is provided on two -surface lots and a four -level parking structure; and would benefit from some type of parking control enforcement. Based on the proposed parking strategies, 181 Group will identify the level of parking enforcement needed. • User Information, Outreach, and Signage - User information, outreach, and signage have been shown to improve user experience and reduce the time it takes to find a parking space. With the implementation of a pricing structure, users will need to be informed of the new parking rates and where best to park based on their needs. IBI Group will update the assessment the types of user information, outreach, and signage and provide the City with a list of options that incorporate associated costs to implement. Impacts of Parking Management Plan - The implementation of a pricing structure may have impacts on property located adjacent to the station as a result of spillover parking, The area surrounding the station currently provides public and residential on -street parking that will need to be analyzed for impacts from potential spillover parking. Parking spillover can be managed, but requires additional management and policies such as parking permits and time limits. IBI Group will update the identified strategies to address any potential spillover parking resulting from the updated recommendations. Deliverables: Update to the Evaluation of Alternative Solutions in the Final Parking Management Plan Task 4. Parking Lot Control Specifications It is anticipated that the parking analysis and evaluation conducted in Task 3 will help to frame an approach for the city to follow in the implementation of a pricing structure for the SARTC parking facilities, This task will focus on the development of a set of specifications that the city can use to procure a parking payment system for installation in the surface and structured parking facilities. Per discussions with the City of Santa Ana, IBI Group understands that the city would also like to install the same parking access control and payment system selected for SARTC at the other four city -owned parking garages in Downtown Santa Ana. To complete this assessment, IBI Group will field review each of the four garages to observe entry/exit points, current operations, payment collection, and access/egress patterns at each garage. This assessment will also include a review of parking utilization and in -/out data provided by the City of Santa Ana to IBI Group. IBI Group will identify up to three alternative approaches to implementing paid parking at SARTC and modifying the payment collection systems at the other four city -owned garages to provide a consistent system. These alternatives could include automated parking fee collection systems with gates, proof of payment systems, or others that would be appropriate based on the layout of the facility and parking utilization patterns. The specifications developed in this task will identify the preferred type of parking fee payment collection system, locations for installation of equipment, and system capability and capacity 25F-13 IBI GROUP October 6, 2015 requirements. The specifications will be documented within a section of the parking study report. IBI Group will also prepare a set of recommendations related to strategies and measures that the city should employ to reduce or eliminate the potential for spillover parking on surrounding streets and properties that could result from the implementation of a parking fee at SARTC. These recommendations will be identified in list form within the report. Deliverables: Draft and Final Parking Lot Control Specifications for SARTC parking and the four city -owned Downtown Parking Structures. Task 5. Recommendations & Final Report IBI Group will develop an updated phased implementation program for the parking strategy recommendations to enable the City of Santa Ana to have a parking management "game plan" for addressing various pricing strategies in the near-term and long-term timeframe. The recommendations should also identify measurements and thresholds that would allow the city to monitor parking conditions and take action if and when conditions indicate the need to apply new strategies. The recommendations and results of this study will then be documented within an updated final report. IBI Group will prepare a draft version of this report for review by City staff. Following receipt of comments through a single round of review, IBI Group will prepare a final version of the report. We have also budgeted for participation in two final presentations to the Planning Commission and City Council (one each) to present the recommendations and final report for approval. Deliverables: Draft and Final versions of the updated Parking Management Plan Report Attendance at up to two presentations of the Final Report Budget The overall budget for this effort is $34,352 IBI Group looks forward to the opportunity to work with the City of Santa Ana on this assignment Should you have any questions regarding this proposal, please do not hesitate to contact Bill Delo at 949-833-5588 or bdelo@ibigroup,com. Sincerely, IBI Group David Chow, P.E., AICP Regional Director, US West 25F-14 25F-15 EXHIBIT B ADDITIONAL INSURED ENDORSEMENT FOR COMMERCIAL GENERAL LIABILITY POLICY Insurance Company This endorsement modifies such insurance as is afforded by the provisions of Policy # relating to the following: 1. The City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701; its officers, employees, agents, volunteers and representatives are named as additional insureds ("additional insureds") with regard to liability and defense of suits arising from the operations and uses performed by or on behalf of the named insured. 2. With respect to claims arising out of the operations and uses performed by or on behalf of the named insured, such insurance as is afforded by this policy is primary and is not additional to or contributing with any other insurance carried by or for the benefit of the additional insureds. 3. This insurance applies separately to each insured against whom claim is trade or suit is brought except with respect to the company's limits of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. 4. With respect to the additional insureds, this insurance shall not be cancelled, or materially reduced in coverage or limits except after thirty (30) days written notice has been given to the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701. (Completion of the following, including countersignature, is required to make this endorsement effective.) Effective Policy # _ Issued to this endorsement form as a part of Named Insured Countersigned by Authorized Representative 25F-16 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: AWARD A PRE -LOAN COMMITMENT FOR META HOUSING CORPORATION {STRATEGIC PLAN NO. 5,3A; 3C) :E / e� CITY MANA R RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on I" Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO 191111114111iS11i 7 Award a pre -loan commitment to Meta Housing Corporation and authorize the City Attorney and the Community Development Agency to draft loan agreements in an amount not to exceed $4,635,000 for the Santa Ana Arts Collective project that will be conveyed to City Council for approval at a future date. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its regular meeting on October 14, 2015, by a vote of 5:0, the Community Redevelopment and Housing Commission approved the recommended action. DISCUSSION On June 1, 2015, City staff issued a Request for Proposals (RFP) soliciting applications for the development of an affordable housing project. The RFP indicated that the City would consider proposals for new construction and/or acquisition and rehabilitation projects. It also indicated that the City had approximately $1,875,000 in Inclusionary Housing funds; $500,000 in Community Development Block Grant (CDBG) funds; $830,000 in federal HOME Program funds to be committed by July 31, 2016; $1,430,000 in federal HOME Program funds to be committed by July 31, 2017; and twenty-four Project -Based Vouchers. The RFP was published on both the City and Housing Authority's websites; public notice in the OC Register on June 1, 2015; and electronic letters and hard copy letters announcing its availability were sent to individuals and firms who had previously requested to be informed of development opportunities. The Community Development Agency received four proposals submitted by the deadline which met the application requirements for the RFP. The criteria used to evaluate proposals included: demonstrated ability of the developer team to develop (20%); demonstrated ability to manage affordable rental units so as to ensure both 29A-1 Award A Pre -Loan Commitment Meta Housing Corporation/Santa Ana Arts Collective November 3, 2015 Page 2 ongoing compliance with affordability requirements and long term financial solvency (15%); demonstrated readiness of the proposed project to proceed (30%); proposed levels of affordability (15%); extent to which City funds will be leveraged by outside funds as shown by sources and uses budget (10%); and anticipated cash flows as shown by the pro forma (10%). For the evaluation of the proposals received under the RFP, staff formed a Review Panel made- up of senior staff from the Planning and Building Agency, the Community Development Agency, Keyser Marston Associates Inc., and housing staff from the City of Anaheim. The panel met on September 29, 2015 to review the proposals and interview the developer teams. Each proposal was evaluated based on the RFP criteria, with the average scores below: Proposal Average Score Meta Housing Corporation / Santa Ana Arts Collective 95.2 C&C Development / Orange Housing Development Corporation 88.8 Jamboree Housing Corporation 86.8 Mary Erickson Community Housing 56.8 The top-rated proposal, Meta Housing Corporation / Santa Ana Arts Collective, was unanimously recommended by the Review Panel to be submitted to the Community Redevelopment and Housing Commission for award and recommendation to City Council for final approval. Project Description Meta Housing Corporation (Developer) is an affordable housing developer based in Los Angeles, California, whose mission is to enrich the lives of residents and enhance the larger community. Started in 1993, the Developer has a successful track record as an affordable housing developer with over 6,000 residential units developed, including adaptive reuse housing projects, artist colonies, and transit oriented development projects. Meta Housing has already developed successful art communities in Burbank, North Hollywood, San Pedro, and Long Beach. The Developer's projects actively engage their tenants in activities such as, tutoring, wellness, and the arts. Meta Housing Corporation has received national recognition from the National Association of Home Builders, the SAGE Award, and the National Endowment for the Arts. The proposed project, located at 1666 N. Main Street (Exhibit 1), will enhance the connectivity of the Artist Village in the downtown to the arts and cultural institutions on Main Street including the Bowers Museum, Kidseum, Discovery Cube, The Wooden Floor, Orange County School of the Arts, and others. The proposed project, named the Santa Ana Arts Collective would adaptively reuse a late modern five -story office building and site, into a community gallery and affordable family development designed for artists of all disciplines. The proposed project would promote the City's goal of providing long-term affordable housing and meeting the affordable housing goals as identified in the City's Strategic Plan, Housing Element and Consolidated Five Year Plan. 29A-2 Award A Pre -Loan Commitment Meta Housing Corporation/Santa Ana Arts Collective November 3, 2015 Page 3 The proposed project would offer a preference to applicants who are artists with a process that would meet Fair Housing and funding requirements and are working artist families within Santa Ana. Although an arts population is preferred, this preference will not override the requirement for long-term financial success. The project includes a community art gallery, an art garden on the ground floor, a marker space, digital and media lab, music room, performing arts room, and activity programs. EngAGE, the project's service provider, will provide high-quality coordination services designed to improve the quality of life for tenants, including after-school tutoring, computer training, creativity programs, and other activities. EngAGE provides their services at no cost to the tenants and have the following goals for their programs: (1) create programs in partnerships with residents; (2) provide a minimum of two programs per month; and (3) achieve engagement of at least 40% of residents in at least one program/event per month. This proposed project will be one of the first projects under the new adaptive reuse ordinance, the first affordable housing complex with an artist preference, and the first project funded with Inclusionary Housing funds in the City. The Santa Ana Arts Collective received six letters of support from the local community and residents that included the Grand Central Art Center, Orange County School of the Arts, and Media Arts Santa Ana. The City's financial consultant, Keyser Marston Associates Inc. conducted a financial review of the proposed project based on its submission to the RFP and will be providing a detailed subsidy layering analysis once all other financing is in place in accordance with federal regulations. The proposed unit mix and rent restrictions are as follows: The total project cost to acquire, rehabilitate and provide the proposed level of affordability in the building is $26,558,333. The tables below summarize the proposed funding sources and anticipated costs of the project: 29A-3 30% AMI 40% AMI 50% AMI 60% AMI Unit Size No. Units Proposed Rent No. Units Proposed Rent No. Units Proposed Rent No. Units Proposed Total Rent 1 Bedroom 4 $527 7 $702 26 $878 --- --- 37 2 Bedroom 1 $633 --- --- 6 $1,055 --- --- 7 3 Bedroom 2 $731 --- --- --- --- 17 $1,462 19 Total 7 7 32 17 63 The total project cost to acquire, rehabilitate and provide the proposed level of affordability in the building is $26,558,333. The tables below summarize the proposed funding sources and anticipated costs of the project: 29A-3 Award A Pre -Loan Commitment Meta Housing Corporation/Santa Ana Arts Collective November 3, 2015 Page 4 Permanent Funding Sources Amount Permanent Loan 3,788,911 City of Santa Ana — HOME 2,260,000 City of Santa Ana — CDBG 500,000 City of Santa Ana — Inclusionary Housing Funds 1,875,000 HCD — Affordable Housing & Sustainable Communities (Cap & Trade Funds) 3,500,000 Tax Credit Equity 14,213,448 Deferred Developer Fee 420,974 TOTAL: $ 26,558,333 Project Costs Amount Land Acquisition Costs 7,255,522 Construction Costs 10,917,565 Architectural & Engineering 830,000 Operating Reserve 219,682 Relocation 782,000 Additional Project Costs 4,553,564 Developer Fee 2,000,000 TOTAL: $ 26,558,333 The City of Santa Ana funding sources including HOME Program funds, CDBG Program funds, and Inclusionary Housing funds will be provided by means of a 55 -year City loan carrying a 3 percent interest rate and payable by residual receipts. The loan agreements for these funds will be conveyed to City Council for approval prior to execution in accordance with each of the funding requirements. Execution of these loan agreement documents will be contingent upon completion of the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA) requirements, completion of a subsidy layering analysis by the City's financial consultant, and loan commitments from all other funding sources. 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), Strategy A (Continue to explore options Citywide regarding the re -use of commercial or industrial buildings that are currently underutilized or vacant for mixed-use residential projects), and Strategy C (Provide that Santa Ana residents, employees, artists and veterans receive priority for affordable housing 29A-4 Award A Pre -Loan Commitment Meta Housing Corporation/Santa Ana Arts Collective November 3, 2015 Page 5 created under the City's Housing Opportunity Ordinance or with City funding to the extent allowed under state law). FISCAL IMPACT Funds are available in the HOME Program, CDBG Program, and Inclusionary Housing funds as follows: Funding Source Grant Year Budgeted in Fiscal Year Account No. Amount HOME Program Pre -2015 2014-2015 13018780-69152 1,348,972 HOME Program 2015 2015-2016 13018780-69152 911,028 CDBG Program 2015 2015-2016 13518782-69152 500,000 Inclusionary Housing N/A 2015-2016 41718820-69152 1,875,000 TOTAL: $4,635,000 Prior year HOME Program funds will be carried forward to fiscal year 2015-2016. Funds are anticipated to be committed in fiscal year 2015-2016 once other project financing is in place for the project. APPROVED AS TO FUNDS AND ACCOUNTS: neSic � �t� Ke y Reenders Sk� Francisco Gutierrez Executive Director Executive Director Community Develop ent Agency Finance and Management Services Agency KL/JB/NV/11 Exhibit: 1. 1666 N. Main Street Site Map 2. Pre -Loan Commitment 29A-5 29A-6 EXHIBIT I PROPOSED PROJECT LOCATION 1666 NORTH MAIN STREET COMMERCIAL COMM RCIAL 17TH COMMEFCIAL < V 0 LU O u 15TH 0 U Ln EXHIBIT 1 29A-7 STREET k cw < V 0 LU LU u w W CC Ln V) 16TH STREET COMM. z �u Ln 2 STREET F:::] F k cw 29A-8 MAYOR Miguel A. Pulido MAYOR PRO TEM Vincent F. Sarmiento COUNCILMEMBERS Angelica Amezcua P. David Benavides Michele Martinez Roman Reyna Sal Tinajero November 3, 2015 CITY MANAGER David Cavazos CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar CITY OF SANTA ANA 20 Civic Center Plaza a P.O. Box 1988 Santa Ana, California 92702 Www.santa-ana.oro EXHIBIT 2 Meta Housing Corporation Attn: Chris Maffris, Senior Vice President 1640 S. Sepulveda Blvd, Suite 425 Los Angeles, CA 90025 SUBJECT: SANTA ANA ARTS COLLECTIVE PROJECT — HOME LOAN PRE -COMMITMENT LETTER Dear Mr. Maffris: Meta Housing Corporation, a California corporation ("Developer") has submitted a proposal in response to the City of Santa Ana's Request for Proposals issued on June 1", 2015 and successfully was awarded financial assistance to the proposed affordable housing project called the "Santa Ana Arts Collective", which is an affordable, multi -family adaptive reuse 64 -unit apartment complex located at 1666 North Main Street in Santa Ana, California ("Project"). The City has reviewed the Developer's requests for assistance and on November 3, 2015 the City Council authorized and approved issuance of this pre -commitment letter evidencing the preliminary award of the HOME Loan, CDBG Loan and Inclusionary Housing Loan to the Developer for the Project under 24 CFR 92.504(c)(3) (together, "Santa Ana Assistance"). The project was awarded a pre -loan commitment of a total of $4,635,000 from the City of Santa Ana, including $2,260,000 in HOME Investment Partnerships Program (HOME) funding, $500,000 in Community Development Block Grant (CDBG) funding, and $1,875,000 from the City's Inclusionary Housing Funds. The loan agreements for these funds require City Council approval prior to execution by the Developer and the City of Santa Ana. The purpose of this letter is to provide a pre-comntitment from the City of Santa Ana for a loan of up to $2,260,000 ("HOME Loan") from funds received by the City as a participating jurisdiction ("PJ") under the federal HOME Investment Partnerships Program, in accordance with Title II of the Cranston -Gonzalez National Affordable Housing Act (42 U.S.C. 12701 12839) and the HOME Program regulations codified at 24 CFR Part 92, as amended by the "2013 HOME Final Rule" at 24 CFR Part 92 (Complete Rule) (together, the "HOME Program"). Santa Ana has made the Developer aware of the definition of "commitment" in 24 CFR 92.2 that prohibits the City as a PJ from providing a commitment (as the tern is defined therein) of HOME Program funds to any specific local project until "the [City] and project owner [Developer] have executed a written legally binding agreement under which HOME assistance will be provided to the owner for an identifiable project for which all necessaryfinancing has been securedd, a budget and schedule have been established, and underwriting has been completed and under which construction is scheduled to start within twelve months of the agreement date." (Italics added.) Notwithstanding the definition of "commitment" in 24 CPR 92.2, 24 CFR 92.504(c)(3) authorizes the City to "preliminarily award HOME funds for a proposed project, contingent on conditions such as obtaining other financing for the project" [italics added]; however, this section goes on to clearly confine that "[t]his preliminary award is not a commitment to a project. The written agreement committing the HOME funds to the project must meet the requirements of `conunit to a specific local project' in the definition of `comm tment' in §92.2 ..." Thus, while this letter is not a commitment of SANTA ANA CITY COUNCIL Miguel A. Pulitlo Vincent F. Sarmiento Michele Martinez Angelis Amezcua P. David Benavitles Raman Reyna Sal Tinajero Mayor Mayor Pro Tem. Ward 1 ! Ward !/a 3 Ward4 ! WardS Wartlfi MPulido(o)santa-ana are VSarmientonosanta-ana.oro I k ftnez(a)sonta-a_na.ora m tae r ! Daenavides(dsace-,oh, or RRevna(dsanta-ana.oro ! SunaieronDsantd-dna oro Meta Housing Corporation Santa Ana Arts Collective November 3, 2015 Page 2 federal funds as defined under the HOME Program as the term commitment is defined therein, Santa Ana intends that this letter evidence the City's and Authority's preliminary award of the Santa Ana Assistance to the Developer for the Project subject to the conditions described below. Further, Santa Ana states its objective for the Developer to satisfy the provisions of the California Tax Credit Allocation Committee ("TCAC") Regulations, in particular Section 10325, albeit there is no intention to violate HOME Program requirements, in particular 24 CFR 92.2. The amount of the HOME Loan to be provided to the Project has been determined based upon Santa Ana's review of the Developer's proposal for the Santa Ana Assistance and the development proforma and projected cash flows for the Project submitted by the Developer to Santa Ana as of August 21, 2015 ("Proforma"). The Unit Mix is an important part of the Developer's proposal to Santa Ana because the Project is intended to serve a target population of Very Low and Extremely Low Income persons. The project will also provide a preference for artist working families, which is consistent with the federal regulations at 24 CFR Part 92 and the City's adopted Consolidated Plan. The Community Development Agency's Executive Director has authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the Santa Ana Assistance is not materially increased or extended. The HOME Loan will have the following terms: • $2,260,000 principal amount, or as touch thereof as is disbursed for hard and soft costs in constricting the Proj ect; • 3% simple interest per annum; • Repayment from 50% of Residual Receipts (after payment of operating expenses, debt service, any deferred developer fee, and partnership fees to be described in the Agreement) with the remaining 50% to be disbursed to the Developer; • Remaining principal and accrued interest due upon the 55" anniversary of the issuance of Certificate of Occupancy and/or final building permits or earlier upon sale, refinancing or default. Additionally, Santa Ana will receive 50% of the net proceeds received from any sale or refinancing of the Project, after payment of outstanding debt and payment in full of any deferred developer fee and establishment of any reserves and transaction costs; • Cost savings from the Project, if any, will be applied first to pay down the HOME Loan, subject to compliance with the TCAC Regulations. The City's obligation to provide the HOME Loan and additional assistance to the Project are subject to each of the following conditions: 1. Approval of the HOME Loan Agreement by the City Council of the City of Santa Ana. 2. Compliance with the HOME Program, and applicable federal regulations set forth in 24 CFR Part 92 and 24 CFR Part 983. 3. Compliance with and completion of environmental review of the Project pursuant to the California Environmental Quality Act ("CEQA") and the National Environmental Protection Act ("NEPA") and approval thereof (the NEPA clearance for the Project is currently not under review by HUD). 29A-10 Meta Housing Corporation Santa Ana Arts Collective November 3, 2015 Page 3 4. 63 of the 64 "Housing Units" at the Project shall and will be restricted to "Affordable Rent" as defined by the TCAC Regulations for a period not less than 55 years pursuant to conditions, covenants and restrictions recorded against the Project in the Official Records, County of Orange, California. One (1) Housing Unit will be rented to an on-site property manager; the manager's unit will not be rent -restricted. 11 0£ the 64 units will be HOME -funded units. 5, All Housing Units at the Project must pass Housing Quality Standard and the City's HOME Property Standards (or other standards as applicable) inspections at the completion of construction, as required by applicable HUD federal regulations at 24 CFR Part 92. 6. The HOME Loan Agreement will require that, the Developer will not charge more than an Affordable HOME Rent (at the levels prescribed in the HOME Loan Agreement) for any HOME Unit at the Project, notwithstanding that the Developer may accept tenants holding Section 8 vouchers or certificates. Thus, the total per-unit subsidy the Developer will receive under the Section 8 program or other tenant -based or project - based rental assistance program will be limited to the difference between the Affordable HOME Rent for the HOME Unit under the HOME Loan Agreement and 30% of the tenant's monthly income. The HOME Loan Agreement will provide the Community Development Agency Executive Director with authority to waive or modify this requirement in his or her sole and absolute discretion. The HOME Loan Agreement shall provide that each of the following conditions shall be met prior to the disbursement of any portion of the HOME Loan: a. All grading permits shall have been issued and the City shall have issued a letter stating that building permits are ready to issue, subject only to payment of fees and the completion of grading of the Project site. b. Developer shall have secured all necessary financing and funding for the construction and operation of the Project. Such financing and funding shall be sufficient to pay all Project development costs, through lease -up, as set forth in a final budget consistent with the approved Profenna (or as otherwise approved by Santa Ana). c. The Developer shall have provided evidence to Santa Ana that the Developer has obtained insurance policies and certificates or endorsements acceptable to Santa Ana, as described in the HOME Loan Agreement. d. The Developer shall have provided construction security in favor of Santa Ana, which may include a completion guarantee from Meta Housing Corporation and/or a letter of credit and/or performance & payment bonds from the general contractor for the Project (or some combination of these), in an amount sufficient to ensure the Project will be completed and placed in service within the time set forth in the Project schedule approved by Santa Ana. e. Developer shall submit and obtain Executive Director of the Community Development Agency's approval of the construction contract, Developer's limited partnership agreement for the limited partnership entity to be formed to own and operate the Project, and management, marketing and tenant selection plans for the Project. 29A-11 Meta Housing Corporation Santa Ana Arts Collective November 3, 2015 Page 4 8. The City's obligation to provide the HOME Loan and additional local assistance to the Project are and shall remain subject to all covenants, conditions, and restrictions set forth in the HOME Loan Agreement, and in particular City's analysis of the available funding sources and development and operating costs of the Project and the overall economic feasibility of the Project. In addition to the foregoing, notwithstanding any statement set forth in this letter or provisions of the HOME Loan Agreement, the Developer and the City agree and acknowledge that the HOME Loan Agreement will not constitute a commitment of federal funds, and that such commitment of funds may occur only upon satisfactory completion of environmental review and receipt by City, as applicable, for a release of funds from the U.S. Department of Housing and Urban Development under 24 CFR Part 58, The Developer and the City will further agree in the HOME Loan Agreement that the provision of any federal funds to the Project is and shall be conditioned on Santa Ana's determination to proceed with, modify or cancel the Santa Ana Assistance based on the results of a subsequent NEPA environmental review and the outcome of the Subsidy Layering Review. In addition to the HOME Loan, the City Council approved a pre -loan commitment to provide the following additional assistance to the Project: • Inclusionary Housing Funds Loan in the amount of $1,875,000. • Community Development Block Grant (CDBG) Loan in the amount of $500,000 for the rehabilitation of the property. The Developer will also have to comply with all rules and regulations that pertain to the CDBG Program and the City's Inclusionary Housing Fund Program for those funds. Loan agreements for these funds will require City Council approval prior to the execution of the documents. The Developer and the City are further prohibited from undertaking or committing any federal funds to physical or choice -limiting actions, including property acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the environmental clearance. The Developer and the City understand that the violation of this provision may result in the denial of any federal funds under the HOME Loan Agreement. If you have any questions or require additional information regarding this letter, please contact Natalie Verlinich, Housing Programs Analyst, at (7 t4) 667-2267 or by email at NVerlinichRsanta-ana.org. Sincerely, Judson Brown Housing Division Manager cc: Kelly Reenders, Community Development Executive Director Natalie Verlinich, Housing Programs Analyst 29A-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: VARIANCE NO. 2015-07 TO ALLOW ADDITIONAL WALL SIGNS ON TWO BUILDING ELEVATIONS FOR DEL AMO MOTORSPORTS LOCATED AT 2401 SOUTH PULLMAN STREET - SCOTT KING, APPLICANT (STRATEGIC PLAN NO. 3,2) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: G -'.7 F El As Recommended [I As Amended M Ordinance on 1't Reading ® Ordinance on 2M Reading LI Implementing Resolution Cl Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file the staff report approving Variance No. 2015-07 as conditioned. PLANNING COMMISSION ACTION At its regular meeting on October 12, 2015 by a vote of 5:0 (Nalle & Verino absent), the Planning Commission adopted a resolution approving Variance No. 2015-07 as conditioned to allow the installation of six wall -mounted signs on two elevations of the building and to allow two of those signs to be installed above 20 feet in height at 2401 South Pullman Street located in the Light Industrial (M1) zoning district. The Planning Commission made no changes to the recommendation outlined in the attached staff report (Exhibit A). DISCUSSION Del Amo Motorsports is requesting approval of five secondary wall signs on each of two building elevations that describe the motorcycle, all -terrain vehicle, utility -vehicle, and power watercraft makes sold at the retail store and to install two business identification signs above the maximum allowable height of 20 feet. The secondary wall signs would be placed on the northwest elevation of the existing building and on the north elevation of a proposed motorcycle display bridge. The two business identification signs would be placed on the north and northwest elevations of the proposed motorcycle display tower. A total of 12 signs would be installed between two elevations of the building at the site. Full-sized plans are available for public viewing in the Clerk of the Council Office. 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). 31A-1 Variance No, 2015-07 November 3, 2015 Page 2 FISCAL IMPACT There is no fiscal Impact associated with this action, r 1W61111 111;111 WIMIN r 'Mmffu 70 1�. RS:rb WrapoWVAR206-07 Del Ama Motorspol m Exhibit: A, Planning Commission Staff Report 31A-2 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE, OCTOBER 12, 2015 TITLE: PUBLIC HEARING — FILED BY SCOTT KING FOR VARIANCE NO. 2015-07 TO ALLOW ADDITIONAL WALL SIGNS ON TWO BUILDING ELEVATIONS FOR DEL AMO MOTORSPORTS LOCATED AT 2401 SOUTH PULLMAN STREET (STRATEGIC PLAN NO. 3, 2) Prepared by Ricardo Soto PLANNING COMMISSION SECRETARY APPROVED ❑ As Recommended 71 As Amended D Set Public Hearing For DENIED ❑ Applicant's Request ❑ Staff Recommendation CONTINUED TO xecu e Director Acting annin anager RECOMMENDED ACTION Adopt a resolution approving Variance No. 2015-07 as conditioned. Request of Applicant Scott King, representing Del Amo Motorsports, is requesting approval of a variance from the Santa Ana Municipal Code (SAMC) in order to allow more than one wall sign on the north and northwest elevations of the Del Amo Motorsports retail store at 2401 South Pullman Street. Specifically, the applicant is requesting a variance from Section 41-863(x) and Section 41-863(d) of the SAMC to allow five additional secondary wall signs on two elevations that describe the motorcycle, all -terrain vehicle, utility -vehicle, and power watercraft makes sold at the retail store and to install two primary business identification signs above the maximum allowable height of 20 feet. Project Location and Site Description The subject property is approximately two acres in size and is developed with a 45,411 square foot stand-alone building. The site is located to the east of California State Route 55 (SR -55) and south of Warner Avenue at a reverse -curve on Pullman Street. Due to the reverse -curve on Pullman Street, the site is odd shaped, resembling a diamond, and is fronted by Pullman Street to the northwest, north and northeast. The unique shape of the site has resulted in the building being setback nearly 100 linear feet from Pullman Street along the western boundary, nearly 50 feet from the northern boundary, and nearly 200 feet from the northeastern boundary. Buildings on adjacent properties to the north and south have considerably smaller setbacks. The smaller setbacks on neighboring properties, coupled with the site being located on a reverse curve, have resulted in an obstructed view of the subject building when approaching the site from either the north or south. The site is surrounded by industrial uses to the north, east and south; and the SR -55 to the west and northwest (Exhibits 1, 2, 3 and 4). EXHIBIT A 31A-3 Variance No. 2015-07 October 12, 2015 Page 2 Proiect Description Del Amo Motorsports is requesting approval of five secondary wail signs on two elevations that describe the motorcycle, all -terrain vehicle, utility -vehicle, and power watercraft makes sold at the retail store and to install two primary business identification signs above the maximum allowable height of 20 feet. Pursuant to Section 41-863(a) and Section 41-863(d) of the SAMC, no more than one wall sign shall be permitted for each primary elevation of a leasable tenant space nor shall the sign be placed higher than the ground floor of the building or 20 feet, whichever is less. If approved, the variance would allow for the installation of five secondary wall signs on two elevations for a total of 12 wall signs on the north and northwest elevations of the building. The signs would be placed on the northwest elevation of the existing building, the north elevation of a proposed motorcycle display bridge, and on the north and northwest elevations of a proposed motorcycle display tower. The proposed signs would include two business identification signs and 10 secondary wall signs advertising makes sold at the retail store (Exhibit 5). Proiect Background Del Amo Motorsports is a retailer that offers a wide verity of motorcycle makes as well as all -terrain vehicles, utility vehicles, and power watercraft. As a function of retailing multiple motorcycle brands, Del Amo Motorsports is required to provide signage for each motorcycle make that it offers. The proposed location will be Del Amo Motorsports' first store in Santa Ana and fourth location in Southern California. Del Amo Motorsports is currently operating motorcycle retail stores in Redondo Beach, Long Beach and Costa Mesa, respectively. The proposed Santa Ana location stands to be Del Amo Motorsports' largest location thus far. Del Amo Motorsports is proposing to occupy a building that was previously occupied by Grainger. Though not part of this application, the applicant has applied for and obtained Development Project Review approval to construct major fagade and tenant improvements that include a motorcycle display tower and bridge, interior tenant improvements, and various site improvements. General Pian and Zoning Canslstencv The General Plan land use designation for the site is Industrial (IND). Industrial districts provide employment opportunities for local residents, and generate municipal revenues for continued economic development. The project site is consistent with this General Plan land use designation. The site is located within the Light Industrial (M-1) zoning district. The M-1 zoning district allows for truck, watercraft, equipment sales and rental service, making the proposed use consistent with the zoning code. 31A-4 Variance No. 2015-07 October 12, 2015 Page 3 Project Analvsis Variance requests are governed by Section 41-638 of the SAMC. Variance requests may be granted when it can be shown that the following can be established: • That there exists a special circumstance related to the property, such as size, shape, topography, location or surroundings. • That the granting of the variance is necessary for the preservation and enjoyment of substantial property rights. • That the granting of the variance will not be detrimental to the public or surrounding property • That the granting of the variance will not adversely affect the General Plan. If these findings can be made, then it is appropriate to grant the variance. Conversely, the inability to make these findings would result in a denial, Using this information, staff has prepared the following analysis which in turn forms the basis for the recommendation contained in this report. Del Amo Motorsports is proposing to occupy stand-alone building that was previously occupied by Grainger. The site is located along a reverse -curve on Pullman Street which has created an irregular shaped lot. Section 41-863 of the SAMC contains provisions for wall and canopy signs, which are intended to ensure that businesses have adequate signage to promote successful commerce while preserving the quality of the visual environment by preventing sign clutter, and providing for public safety by disallowing signs that may distract drivers or impede the use of sidewalks. Pursuant to this SAMC section, Del Amo Motorsports would be permitted one sign, along with five words describing goods sold at the site, on the northwest elevation and on the north elevation, Further, said signs could only be placed on the ground floor of the building or 20 feet, whichever was less. However, special site characteristics and architectural components of the building have resulted in a configuration in which strict application of the SAMC would limit the tenant's advertising and branding ability. These characteristics and components include the following: building placement both on and off-site that limits exposure and view; and a building design that has resulted in a building elevation beyond that of a traditional building fagade. In analyzing the applicants request for Variance No. 2015-07, staff believes that the following findings of fact warrant approval of the variance: • The project site has special circumstances related to its location, surroundings, and design. As detailed above, the site is located on a reverse -curve. The reverse -curve has resulted in an odd shaped lot and a building that has two frontages along the same street. The reverse - curve has also resulted in adjacent properties, with considerably smaller setbacks than the 31A-5 Variance No. 2015-07 October 12, 2015 Page 4 subject site, obstructing visibility of the site from potential patrons travelling along Pullman Street and along SR -55. Moreover, the proposed fapade, display tower and bridge design makes having the secondary signage advertising goods sold impossible to accommodate on the same signable area without resulting in sign clutter. Approval of the variance would create opportunities on the project site to brand and advertise the goods and motorcycle makes provided by the tenant while also balancing site aesthetics and avoiding visual clutter. The granting of the variance is necessary for the preservation and enjoyment of substantial property rights. The placement of the primary signs above the maximum allowed 20 feet and the additional secondary signage to advertise the motorcycle makes sold at the tenant space would assist in identification and advertisement, reducing vacancy rates, increasing commercial activity, and allowing the property owner the ability to maximize the existing structure to their fullest potential. The placement and number of signs has been carefully analyzed and will reduce visual clutter while also increasing the visibility and advertisement efforts of the tenant. The granting of the variance will not be detrimental to the public or surrounding properties. The signs are intended to be visible from Pullman Street and from the heavily travelled SR - 55. The signs will not incorporate any flashing or moving elements that may distract motorists or passersby. The site location and building placement minimizes any possible visual intrusion onto surrounding properties. Moreover, the site is located in an exclusively commercial and industrial area with no residential communities located in the immediate vicinity. Finally, the project will not adversely affect the General Pian as the proposed signage is consistent with several goals of the General Plan. Approval of the variance supports Policies 2.7 and 2.8 of Goal 2 (to promote land uses which enhance the City's economic and fiscal viability) and Policies 4.3, 4.4, and 4.5 of Goal 4 of the Land Use Element (to protect and enhance development sites that are unique community assets). In addition, approval of the variance is consistent with the intent and purpose of Goals 1 and 2 of the Urban Design Element (to improve the physical appearance of the City through creating a sense of place, positive community image, and quality environment, and to improve the physical appearance of the City through development that is proportional and aesthetically related to its district setting). Furthermore, approval of the variance supports Objective 2.3 of Goal 2 of the Scenic Corridor Element (to use scenic corridors to provide identity, form, and an orientation framework for the City). Public Notification The project site is located near the eastern boundary of the City and is not near any neighborhood association. Staff notified the City of Tustin of the project. Tustin staff has identified no present concerns for this project. The project site was also posted with a notice advertising this public 31A-6 Variance No. 2015-07 October 12, 2015 Page 5 hearing, a notice was published in the Orange County Reporter, and mailed notices were sent to all property owners and tenants within 500 feet of the project site. At the time of printing of this report, no areas of concern were raised, nor had any correspondence, either written or electronic, been received from any members of the public. CEQA Compliance In accordance with the California Environmental Quality Act, the recommended action is exempt from further review per Section 15301, This Class 1 exemption allows the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The project consists of a variance to allow the installation of 12 wall mounted signs, two of which will be located above the maximum height of 20 feet. No expansion of square footage or interior reconfigurations of square footages are proposed as part of the project. In addition, the structure is already served by municipal services, such as roadways, utilities, and parking, Categorical Exemption Environmental Review No. 2015-26 will be filed for this project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No. 3 Economic Development, Objective No, 2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies). Conclusion Based on analysis provided within this report, staff recommends that the Planning Commission approve Variance No. 2015-07 as conditioned. Ricardo Soto Assistant Planner I RS:jm Mrepods\VAR 2015-07 Del Amo lvlolarspo'fs,pc Attachments: Exhibit 1 — Vicinity Map Exhibit 2 -- Land Use Map Exhibit 3 — Site Photo Exhibit 4 — Site Plan Exhibit 5 — Proposed Elevations 31A-7 I Rl i R�I ; mi ml M1 SU -fig '�' - MI RI � R7 �Rt R1 5P69'�'� Mt 3 _ R1 � `t M1 M1 RI Ri M1 M1 M1 3 N1 Ml WAR AV. rl �u G�'y oe T,1— _..� Re rncN A/ R2 Mi MIi SU9 SrI MI n I R2 R2- R2Mi /J R2 pqp ' h M1 ./ SO G3 i/ Ml /i Nit Nil Ml, -r— 1 SD -12 rr n C5 Mie _— rnFltm rl - r -- LI M2 M1 MT SU.GQ ,r p RAI P W�bo A' 0EDM.ACACRJLTURALT OR GCMMBdMALIFEADWAL R1-4CCO WALLLOTSNaEAMILYW9D1NGE .D AMNGMQDIF1cRION cc CaA3*MENTcs4r 2 F>2 M IFAMILYF�IOBJCE GbN fGMMFJUAL97JtHMAIN Mt UG-TINOUSTIRAL R7 MMAKEDMSVMVLTRE Ct COMMUNIVOM7MEFOAL M2 HEAVYINDUSTRAL FAMILY SODENb_ CRMO COMM.MAMEiJAUMUMLIM QIb CT MO MIUTARYOPFwTIONS RA S7MPaWAARMIRM C2 GEdtlOMCOMMOdMAL 0 OFENSACE FE FS9DFNTAttMTi. 0 MTRALCIISNM p NnFMOML S1 Ef£OFlCOLYLOFMF1+iT CYA CBVTRALtlJSN6SSARnSFMLLAGE FCO F NNEDCWMUNDYDESOFMEM EP S MCFLAN C, PLANNEDF}1OPFINOC94TEri FRI) PANNWFMOINVALOMOFMEJI C5 AREdALCCMMERaAL RI SN&IFFAMILYFEEII)MAL C VAR 201 5-7 old "1 LEL AMO MOTORSPORTS SIGN VARIANCE 2401 SOUTH PULLMAN STREET - - 600 FEE V =1000 FEED P L. A N N I N G A N D B U I L D I N G A G E N C Y' EXHST 1 31A-8 COMMERCIAL I N D U 5 T I A L m I N U S T R I A L COMMERCIAL VAR 2015-7 & DEL AMO MOTORSPORTS SIGN VARIANCE 9V 2401 SOUTH PULLMAN STREET P L A N N I N G A N D B U I L 0 1 N G A G E N -CY LAND USE MAP EXHIBIT 2 31A-9 VAR 2015-7 Del Amo Motorsports Sign Variance 2401 South Pullman Street SITE PHOTO EXHIBIT 3 31A-10 I� �iF ..✓i W ✓ `41 Y.SY I � ._ { Sim W EXHIBIT 4 31A-1 1 Northwest Elevation North Elevation EXHIBIT 5 31A-12 LS 10.06.15 RESOLUTION NO. 2015-34 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING VARIANCE NO. 2015-07, AS CONDITIONED, TO ALLOW SIX WALL MOUNTED SIGNS EACH ON TWO ELEVATIONS AND TO ALLOW TWO OF THOSE SIGNS TO BE INSTALLED ABOVE 20 FEET IN HEIGHT AT THE DEL AMO MOTORSPORTS BUILDING LOCATED AT 2401 SOUTH PULLMAN STREET BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF ;y_Jarr_V_�ar_V_Vy7.IIIrlyff. I Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. Applicant is requesting approval of Variance No. 2015-07 to allow for the installation of six (6) wall mounted signs on two (2) building elevations (for a total of twelve (12) wall mounted signs) and to allow two (2) of those signs to be installed above 20 feet in height at the property located at 2401 South Pullman Street. B. Pursuant to Section 41-863(a) and Section 41-863(d) of the Santa Ana Municipal Code (SAMC), no more than one (1) wall sign shall be permitted for each primary elevation of a leasable tenant space, nor shall the sign be placed higher than the ground floor of the building or 20 feet, whichever is less. C. Variance No. 2015-07 came before the Planning Commission on October 12, 2015, for a duly noticed public hearing. Variance No. 2015-07 would allow six (6) wall mounted signs on two elevations, two of which would be installed above 20 feet in height, for a total of 12 wall mounted signs on the north and northwest elevations of the building located at 2401 South Pullman Street. D. The Planning Commission determines that for Variance No. 2015-07 the following findings, which must be established pursuant to Santa Ana Municipal Code (SAMC) Section 41-638 in order to grant a variance from the provision of the Santa Ana Municipal Code, have been established: That because of special circumstances applicable to the subject property, including size, shape, topography, location, or surroundings, the strict application of the zoning ordinance is found to deprive the Resolution No. 2015-34 Page 1 of 5 31A-13 subject property of privileges not otherwise at variance with the intent and purpose of the provision of this chapter. The project site has special circumstances related to its location, surroundings, and design. The site is located on a reverse -curve. The reverse -curve has resulted in an odd shaped lot and a building that has two frontages along the same street. The reverse -curve has also resulted in adjacent properties, with considerably smaller setbacks than the subject site, obstructing visibility of the site from potential patrons travelling along Pullman Street and along California State Route 55 (SR -55). Moreover, the proposed fapade, display tower and bridge design makes having the secondary signage advertising goods sold impossible to accommodate on the same signable area without resulting in sign clutter. Approval of the variance would create opportunities on the project site to brand and advertise the goods and motorcycle makes provided by the tenant while also balancing site aesthetics and avoiding visual clutter. 2. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of the variance is necessary for the preservation and enjoyment of substantial property rights. The placement of the primary signs above the maximum allowed 20 feet and the additional secondary signage to advertise the motorcycle makes sold at the tenant space would assist in identification and advertisement, reducing vacancy rates, increasing commercial activity, and allowing the property owner the ability to maximize the existing structure to its fullest potential. The placement and number of signs has been carefully analyzed and will reduce visual clutter while also increasing the visibility and advertisement efforts of the tenant. 3. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The granting of the variance will not be detrimental to the public or surrounding properties. The signs are intended to be visible from Pullman Street and from the heavily travelled SR -55. The signs will not incorporate any flashing or moving elements that may distract motorists or passersby. The site location and building placement minimizes any possible visual intrusion onto surrounding properties. Moreover, the site is located in an exclusively commercial and industrial Resolution No. 2015-34 Page 2 of 5 31A-14 area with no residential communities located in the immediate vicinity. 4. That the granting of a variance will not adversely affect the General Plan of the City. The project will not adversely affect the General Plan as the proposed signage is consistent with several goals of the General Plan. Approval of the variance supports Policies 2.7 and 2.8 of Goal 2 (to promote land uses which enhance the City's economic and fiscal viability) and Policies 4.3, 4.4, and 4.5 of Goal 4 of the Land Use Element (to protect and enhance development sites that are unique community assets). In addition, approval of the variance is consistent with the intent and purpose of Goals 1 and 2 of the Urban Design Element (to improve the physical appearance of the City through creating a sense of place, positive community image, and quality environment, and to improve the physical appearance of the City through development that is proportional and aesthetically related to its district setting). Furthermore, approval of the variance supports Objective 2.3 of Goal 2 of the Scenic Corridor Element (to use scenic corridors to provide identity, form, and an orientation framework for the City). E. In accordance with the California Environmental Quality Act, the recommended action is exempt for further review per Section 15301. This Class 1 exemption allows the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. No expansion of square footage or interior reconfigurations of square footages are proposed as part of the project. In addition, the structure is already served by municipal services, such as roadways, utilities, and parking. Categorical Exemption Environmental Review No. 2015-26 will be filed for this project. Section 2. 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 negligence of the City of Santa Ana. Section 3. The Planning Commission of the City of Santa Ana after conducting the public hearing hereby approves Variance No. 2015-07 for 2401 South Pullman Street as conditioned in Exhibit A attached hereto and incorporated herein. This decision is Resolution No. 2015-34 Page 3 of 5 31A-15 based upon the evidence submitted at the abovesaid hearing, which includes, but is not limited to: the Staff reports and exhibits attached thereto; and, the public testimony, written and oral, all of which are incorporated herein by this reference. ADOPTED this 12th day of October, 2015. AYES: Commissioners: Alderete, Bacerra, Bauer, Gartner, Mill (5) NOES: Commissioners: None (0) ABSENT: Commissioners: Nalle, Verino (2) ABSTENTIONS: Commissioners: None (0) James Gartner Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, KAREN GERARDO, Planning Commission Secretary, do hereby attest to and certify the attached Resolution No. 2015-xx to be the original resolution adopted by the Planning Commission of the City of Santa Ana on October 12, 2015. Date: Planning Commission Secretary City of Santa Ana 31A-16 Resolution No. 2015-34 Page 4 of 5 EXHIBIT A Conditions of Approval for Variance No. 2015-07 Variance No. 2015-07 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 belowrip or to exercising the rights conferred by this approval. The applicant must remain in compliance with all conditions listed below throughout the life of the variance. Failure to comply with each and every condition may result in the revocation of the variance. A. Planning Division The project shall remain in compliance with Development Project Review DP No. 2015-13 and the staff report exhibits. 2. Any amendment to this variance must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or if the variance must be amended. 3. The proposed signs will be limited to the location and size as indicated on the approved plan per the attached exhibit. Resolution No. 2015-34 Page 5 of 5 31A-17 31A-18 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: ADOPT A RESOLUTION TO APPROVE THE RELOCATION PLAN FOR THE DEPOT AT SANTIAGO PROJECT (STRATEGIC PLAN NO 5,3C) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: .:r `:• k ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 20° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution to approve the Relocation Plan for the Depot at Santiago Project located at 923 N. Santiago Street In Santa Ana, CA. DISCUSSION On May 20, 2013, the City Council approved and authorized the loan agreements for an affordable housing project called the Depot at Santiago ("Project") located at 923 N. Santiago Street. The Project will be a mixed used project that will provide retail space, 70 affordable units, and a community room. Since obtaining City Council approval of the funding and Project, the Project has obtained additional funding from the State of California including funding from the Infill Infrastructure Grant, and the Affordable Housing and Sustainable Communities Program. Based on California law, when state funds are provided to a project which would lead to the displacement of people from their homes and/or business, the legislative body must approve a relocation plan with state funds. The draft Depot at Santiago Project Relocation Plan (Exhibit 1) has been prepared in conformance with applicable provisions of California Relocation Assistance Law and Relocation Guidelines as well as United States Department of Housing and Urban Development (HUD) regulations. This plan is required due to the necessary demolition of the existing structures. All current Project occupants will need to be permanently relocated. The needs and characteristics of the displaced population, available relocation resources, and the Depot at Santiago, LP's (Developer) program to provide assistance to each affected person are general subjects of the Relocation Plan. The Developer is utilizing Overland, Pacific & Cuter, Inc. as their relocation consultant for the relocation plan and services. The original Relocation Plan was completed in September 2013 and was updated in September 2015 as the Project Is close to commencing. 55A-1 Resolution to Approve the Relocation Plan Depot at Santiago Project November 3, 2015 Page 2 Current occupants that will need permanent relocation are eight known commercial businesses and one household as a result of the Project. All occupants have been interviewed and provided informational notices of the relocation plan in accordance with State and Federal requirements. The occupants were also informed of the City Council meeting on November 3, 2015 and a copy of the draft Relocation Plan was made available. Furthermore, all occupants will be provided relocation assistance including advisory services, moving costs, and re-establishment services provided by the Developer and their relocation consultant. STRATEGIC PLAN ALIGNMENT The relocation plan covered by this report allows 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), Strategy C (Provide that Santa Ana residents, employees, artists and veterans received priority for affordable housing created under the City's Housing Opportunity Ordinance or with City funding to extent allowed under state law). FISCAL IMPACT There is no fiscal impact 1 Kelly Reenders Executive Director Community Development Agency KR/JB/NWII Exhibit: 1. Draft Relocation Plan 2. Resolution 55A-2 EXHIBIT 1 The Depot at Santiago Project DRAFT RELOCATION PLAN Prepared for: Depot at Santiago, LP 14211 Yorba Street, Suite 200 Tustin, CA 92780 (714)288-7600 Prepared by: Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 949-951-5263 September 22, 2015 55A-3 TABLE OF CONTENTS rlff"@�QW.Iu PROJECT DESCRIPTION A. REGIONAL LOCATION B. PROJECT SITE LOCATION C. GENERAL DEMOGRAPHIC & HOUSING CHARACTERISTICS IL ASSESSMENT OF RELOCATION NEEDS A. SURVEY METHOD 6 B. FIELD STUDY DATA - RESIDENTIAL 6 1. Current Occupants 6 2. Replacement Housing Needs 6 3. Income 7 4. Ethnicity/Language 7 5. Senior/Handicapped Households 7 6. Preferred Relocation Areas 7 C. FIELD STUDY DATA— COMMERCIAL 7 1. Current Occupants 7 III. RELOCATION RESOURCES 9 A. METHODOLOGY 9 B. REPLACEMENT HOUSING AVAILABILITY 9 1. Residential Rental Housing 9 2. Summary 9 C. RELATED ISSUES 10 1. Concurrent Residential Displacement 10 2. Temporary Housing 10 D. REPLACEMENT COMMERCIAL SITES AVAILABILITY 10 IV. THE RELOCATION PROGRAM 11 A. ADVISORY ASSISTANCE 11 B. RESIDENTIAL RELOCATION BENEFITS 13 1. Residential Moving Expense Payments 13 2. Rental Assistance to Tenants Who Choose to Rent 14 3. Downpayment Assistance to Tenants Who Choose to Purchase 16 4. Determination of Comparable Housing 16 C. LAST RESORT HOUSING 16 D. COMMERCIAL RELOCATION BENEFITS 17 1. Payment for Moving and Related Expenses 17 2. Self Moves 20 3. Fixed Payment In Lieu 20 4. Personal Property Move Only (Storage) 21 E. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS21 F. IMMIGRATION STATUS 21 G. RELOCATION TAX CONSEQUENCES 22 H. PROGRAM ASSURANCES AND STANDARDS 22 V. ADMINISTRATIVE PROVISIONS 23 A. NOTICES 23 B. PRIVACY RECORDS 24 C. GRIEVANCE PROCEDURES 24 D. EVICTION POLICY 24 E. CITIZEN PARTICIPATION 25 F PROJECTED DATE OF DISPLACEMENT 25 G. ESTIMATED RELOCATION COSTS 25 55A-4 LIST OF TABLES TABLE 1: 2010 Census Population — City of Santa Ana & Impacted Tract 4 TABLE 2: 2010 Census Housing Units — City of Santa Ana & Impacted Tract 5 TABLE 3: Availability/Cost of Replacement Rental Housing 6 TABLE 4: Available Commercial Replacement Sites 10 TABLE 5: Schedule of Fixed Moving Payments 14 TABLE 6: Computation of Rental Assistance Payments (Tenants) 15 LIST OF EXHIBITS EXHIBIT A: HUD Income Levels — Orange County EXHIBIT B: General Information Notices EXHIBIT C: Informational Brochures EXHIBIT D: Public Comments & Responses 55A-5 Depot at Santiago Project Relocation Plan INTRODUCTION Depot at Santiago, LP (the "Developer") authorized the preparation of a Relocation Plan to be prepared in connection with planning for the proposed mixed-use project called the Depot @ Santiago Project ("Project"). The Developer has acquired the property located at 923 N. Santiago in Santa Ana, CA as the proposed Project site. Existing structures, including multiple commercial uses, will be demolished to allow for new constriction. The Project entails the constriction of 70 affordable multi -family rental units, approximately 8,500 square feet of retail space, and a 3,000 square foot community room. The affordable housing component of the Project will consist of 15 one -bedroom units, 24 two-bedroom units, and 31 three bedroom units. Seven units will be rented to families with household incomes at or below 30% of AMI (Area Median Income); 14 units at 40% of AMI; 28 units at 50% of AMI; and 20 units at 60% of AMI. The one remaining unit will be designated as a manager's unit. The 923 N. Santiago building will be a mixed-use podium design with contemporary architecture. All of the resident parking for the project will be covered, and the commercial units will have uncovered surface parking. The property will feature gated pedestrian and auto access, a tot lot, onsite laundry facilities, a community room, leasing office, shaded courtyards, and raised planters. Due to the necessary demolition of existing structures, all current Project occupants will need to be permanently relocated. The needs and characteristics of the displacee population, available relocation resources, and the Developer's program to provide assistance to each affected person are general subjects of this Relocation Plan (Plan). Funding for the Project will come from Federal financing sources, including HOME and CDBG. Additional funding will derive from Mental Health Services Act funds (MHSA), Infill Infrastructure Grant farads (IIG), Affordable Housing and Sustainable Communities funds (AHSC), low income housing tax credits, Developer funds and a construction loan. This Plan confonns to the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, HUD Handbook 1378, California Government Code 7260, and Title 25 of the California Code of Regulations. (Section 104(d) does not apply, because no residential units will be affected.) The original Relocation Plan was completed in September 2013. Now that the Project is close to commencing, the Relocation Plan was updated in September 2015. This Plan is organized in five sections: 1. Project description (SECTION I); 2. Assessment of the relocation needs of persons subject to displacement (SECTION II); Depot at Santiago Project Relocation Plan Assessment of available replacement housing and commercial units within the City of Santa Ana and surrounding communities (SECTION III); 4. Description of the Developer's relocation program (SECTION IV); Description of the Developer's outreach efforts, Project timeline and budget (SECTION V)• 552A-7 Depot at Santiago Project Relocation Plan I. PROJECT DESCRIPTION A. REGIONAL LOCATION The Project is located in the City of Santa Ana within Orange County. Santa Ana is located approximately 32 miles southeast of Los Angeles and is easily accessible by Interstate 5 and State Routes 22 and 55. Adjacent communities include, Orange, Tustin, Irvine, Fountain Valley, Westminster and Garden Grove. (See Figure 1: Regional Project Location) Figure 1: Regional Project Location B. PROJECT SITE LOCATION AND DESCRIPTION The Project site is located at 923 N. Santiago, Santa Ana, CA generally bordered by E. Santa Ana Boulevard to the south, Poinsettia Street to the west, Civic Center Drive to the north and Logan Street to the east. (See Figure 2: Project Site Location) The Project area of constriction totals approximately 1.34 acres. The site is currently improved with a 10,000 square foot Tight industrial building, including multiple individual units, several small outbuildings and approximately 61,000 square feet of yard area. 'MA • IFJ .- Figure 2: Project Site Location Depot at Santiago Project Relocation Plan C. GENERAL DEMOGRAPHIC AND HOUSING CHARACTERISTICS According to the 2010 U.S. Census, the population of the City of Santa Ana is 324,528, and the population of the impacted Census Tract 744.05 is 5,820 (see Table 1.) Corresponding Census data concerning the housing mix is shown in Table 2. Table 1: 2010 Census Population — City of Santa Ana & Im acted Tract Population Tract 744.05 % Cit % Total Population 5,820 100.0% 324,528 100.0% White 3,049 52.4% 148,838 45.9% Black or African American 95 1.6% 4,856 1.5% American Indian or Alaska Native 57 1.0% 3,260 1.0% Asian 132 2.3% 34,138 10.5% Native Hawaiian or Other Pacific Islander 6 0.1% 976 0.3% Some Other Race 2,236 38.4% 120,789 37.2% Two or More Races 245 4.2% 11,671 3.6% Hispanic or Latino (of Any Race) 5,289 90.9% 253,928 78.2% Source: U.S. Census bureau, DF -I. Race, Hispanic or Latino, and Age: 2010 55�A-9 Depot at Santiago Project Relocation Plan Table 2: 2010 Census Housing Units — Ci of Santa Ana & Impacted Tract Type Tract 744.05 % City % Total Units 1,468 100.0% 76,896 100.0% Total Occupied Units 1,395 95.0 73,174 95.2 Owner-Occu ied 265 19.0% 34,756 47.5% Renter -Occupied 1,130 81.0% 38,418 52.5% Vacant Housing Units 73 5.0% 3,722 4.8% Available for Sale Only (of Total Vacant Units) 12 0.8% 693 0.9% Available for Rent — Full Time Occupancy (of Total Vacant Units) 27 1.8% 1,983 2.6% Sold or Rented — Not Occupied 5 0.3% 183 0.2% Otherwise Not Available (e.g. seasonal, recreational, migratory, occasional use) 2 0.1% 132 0.2% Other Vacant 1 27 1 1.8% 731 1 1.0% Source: U.S. Census Bureau, QT -Hl. General Housing Characteristics: 2010 55A=10 Depot at Santiago Project Relocation Plan II. ASSESSMENT OF RELOCATION NEEDS A. SURVEY METHOD To obtain information necessary for the preparation of this Plan, personal interviews with the Project site occupants to be permanently displaced were conducted in July through September 2013. Follow-up interviews were attempted in September 2015 to update the Plan. Multiple attempts were made to contact the site occupants. There are eight business tenants and one individual who stores personal property on-site. There is one residential tenant occupying the Project site as well. The interviewer was successful in obtaining updated responses from eight of the ten known Project site occupants. The data in this section of the Plan are based solely on the unsubstantiated responses of those individuals who participated in the survey. Inquiries made of the residential occupant concerned household size and composition, income, rent and mortgage payments, length of occupancy, ethnicity, home language, physical disabilities, and replacement housing preferences. Inquiries made of the commercial occupants pertained to the type and description of the business, number of employees, annual revenues, specialty equipment, permits and licenses, hours of operation, special needs related to the relocation of the business, and preferred area to relocate. B. FIELD SURVEY DATA - RESIDENTIAL 1. Current Occupants There is one residential household with one adult occupant to be relocated for the Project. The residential tenant occupies a commercial space (studio) on the Project site. The commonly accepted standard for housing density allows two persons per bedroom and one person in the common living area. Based on this criterion and available tenant data, the tenant -occupied household is not over -crowded. 2. Replacement Housing Needs Replacement housing needs, as expressed in this plan, are defined by the total number of required replacement units and distribution of those emits by bedroom size. The projected number of required traits by bedroom size is calculated by comparing survey data for household size with typical replacement housing occupancy standards. These standards, generally, allow for up to three persons in a one -bedroom unit, five persons in a two- bedroom unit, seven persons in a three-bedroom unit and nine or more persons in a four- bedroom unit. The replacement unit required for the displaced residential occupant is a studio apartment for rent. 55A-11 Depot at Santiago Project Relocation Plan 3. Income Income information was provided by the tenant household in 2013. According to income standards for the County of Orange (Exhibit A) adjusted for family size as published by the United States Department. of Housing and Urban Development (HUD), the household qualifies as Very Low Income (31% - 50% of area median income). 4. Ethnicity/Language The residential tenant stated White as his ethnicity and English as his primary language. 5. Senior/Handicapped Households The tenant qualifies as a senior household (62 years or older) but reported no disabilities or handicaps. 6. Preferred Relocation Areas The household surveyed expressed a preference to remain in Orange County in order to maintain current access to employment in Irvine. C. FIELD SURVEY DATA - COMMERCIAL 1. Current Occupants There are eight known commercial occupants on the Project site with operating businesses and one occupant who rents space for storage for their business. The interviewer was originally able to interview each of the business owners on site in 2013, although two of the business owners were unresponsive to multiple attempts to update their information in 2015. The majority of the businesses are construction related including, but not limited to, flooring, carpentry/woodworking, painting/moulding/wall coverings, demolition, dumpster rentals and hauling. There is also an artist, urban planning/cultural events firm, and online business on- site as well. A total of 8,400 sq. ft. of building space is utilized, and the average unit size is 1,400 sq. ft. Based on lease information provided by the business owners and the property owner, current rental rates range from $200 - $800/mo. on the Project site. There are two units with two businesses in each sharing the space and rental costs. All of the businesses are currently on month to month leases. Statistics provided by the business owners indicate the total number of full-time employees and part-time employees (not including the owners) impacted by the Project is nine and one, respectively. 55AA 2 Depot at Santiago Project Relocation Plan There were no special replacement site requirements for the businesses stated by the owners other than the appropriate zoning and adequate yard space for the general contractor and the dumpster/hauling business. The hauling business utilizes approximately 45,000 sq. ft. of yard space, which may require the owner to look in surrounding commtmities as well as Santa Ana for a replacement site of that size. The remaining businesses should easily be able to relocate into alternate commercial or light industrial spaces in Santa Ana. 55d-13 Depot at Santiago Project Relocation Plan III. RELOCATION RESOURCES A. METHODOLOGY For residential housing and commercial sites, a resource survey was initially conducted to identify available units for rent within a five -mile radius from the Project site and then expanding throughout Santa Ana and surrounding communities. The following sources were utilized: Contacts with real estate/property management companies serving the community Internet sources for rental opportunities, including the Multiple Listing Service Classified rental listings from local newspapers and For Rent publications B. REPLACEMENT HOUSING AVAILABILITY 1. Residential Rental Housing The rental replacement housing survey considered studios for rent in Santa Ana. This data is summarized in Table 3 below. The individual figures for munber of units found by bedroom size are presented in the table alongside the munber of units needed (shown in parentheses) to meet the re -housing obligations. TABLE 3: Availability and Cost of Replace ent Rental Housing Bedroom Size Studio # Fmind (# Needed) 13 (1) Rent Range $650 - $1,020 Median Rent $900 The median rent amount shown in the table is among the figures used to make benefit and budget projections for the Plan. This amount is, naturally, subject to change according to the market rates prevailing at the time of displacement. 2. Summary Considering the above described availability of replacement housing resources gathered in September 2013 and again in September 2015, it appears there are adequate replacement resources for the residential occupant. Based on survey results of rental opportunities and the tenants' current rent, the tenant occupant will have an increase in monthly rent. However, possible increases, if any, will be met through the Developer's obligation tinder the relocation regulations, including Last Resort Housing (LHR) requirements. (See Section IV, E). 55A914 Depot at Santiago Project Relocation Plan C. RELATED ISSUES 1. Concurrent Residential Displacement At this time, there are no other current public projects causing significant displacements underway in the City of Santa Ana or adjacent communities which would compete with the Project for needed housing resources. No residential displacee will be required to move without both adequate notice and access to available affordable decent, safe and sanitary housing. 2. Temporary Housing No need for temporary housing is anticipated. D. REPLACEMENT COMMERCIAL SITES AVAILABILITY Most of the business owners indicated a desire to stay in Santa Ana, although a few expressed an interest in moving to Costa Mesa, Orange or Anaheim. The businesses that are to be displaced should be able to relocate in the Santa Ana area. When searching for replacement locations, zoning and other regulatory issues must be considered carefully. The current availability of commercial/light industrial space for lease in Santa Ana is adequate. Table 4 below provides a sample of the 30 available commercial/light industrial properties available in Santa Ana as of the date of this Plan. (The commercial yard space listed also includes sites in surrounding communities.) Table 4: Available Commercial Replacement Sites Property Type Usage Square Feet Rent Light Industrial Warehouse (20) 1,000 — 2,000 $741 - $1,580/mo. Light Industrial Flex Space (10) 1,000 — 1,418 $790 - $1,631/mo. Light Industrial Manufacturing (3) 1,080 — 1,600 $918 - $1,360/mo. Light Industrial Commercial Yard (4) 30,000 — 54,450 $7,000 — $9,000/mo. At the time of displacement, ongoing referrals to the businesses will be provided through contacts with local newspapers, property management companies, the multiple listing service and commercial real estate brokers. 55A-15 Depot at Santiago Project Relocation Plan IV THE RELOCATION PROGRAM The Developer's Relocation Program is designed to minimize hardship, be responsive to unique project circumstances, emphasize maintaining personal contact with all affected individuals, consistently apply all regulatory criteria to formulate eligibility and benefit determinations and conform to all applicable requirements. The Developer has retained Overland, Pacific & Cutler, Inc. ("OPC") to administer the Relocation Program. OPC has worked on more than 4,000 public acquisition and relocation projects over more than 35 years. Additionally, OPC has an extensive resume of redevelopment and public works projects undertaken in the City of Santa Ana and other Southern California communities. Experienced Developer staff will monitor the performance of OPC and be responsible to approve or disapprove OPC recommendations concerning eligibility and benefit determinations and interpretations of the Developer's policy. Relocation staff can be contacted at (800) 400-7356 from 8:00 am to 5:00 pin Monday through Friday, and are available via voicemail and/or cellular phones after hours. The Relocation Office is located at 1 Jenner, Suite 200, Irvine, CA 92618. The Relocation Program consists of two principal constituents: Advisory Assistance and Financial Assistance. A. ADVISORY ASSISTANCE Individuals who will need to move from existing homes will receive advisory assistance. Advisory assistance services are intended to: • inform displacees about the relocation program • help in the process of finding appropriate replacement accommodations • facilitate claims processing maintain a communication link with the Developer • coordinate the involvement of outside service providers To follow through on the advisory assistance component of the relocation program and assure that the Developer meets its obligations under the law, OPC staff will perform the following functions: 1. Distribute appropriate written information concerning the Developer's relocation program; 2. Inform eligible project occupants of the nature of, and procedures for, obtaining available relocation assistance and benefits (See Exhibit C); 3. Detennine the needs of each displacee eligible for assistance; 55A1--16 Depot at Santiago Project Relocation Plan 4. Provide residential displacees with at least three referrals to comparable replacement housing within a reasonable time prior to displacement. Generally, a comparable replacement dwelling must satisfy the following criteria: (a) The unit is decent, safe and sanitary - electrical, plumbing and heating systems are in good repair - no major, observable hazards or defects. The unit is adequate in size and is comparable to the acquired dwelling with respect to number of rooms, habitable living space and type and quality of construction, but not lesser in rooms or living space as necessary to accommodate the displaced person. The unit is functionally equivalent, including principle features. (b) The unit is located in an area not subjected to unreasonable adverse environmental conditions from either natural, or man-made sources, and not generally less desirable with respect to public utilities, transportation, public and commercial facilities, including schools and municipal services and reasonably accessible to the displaced person's place of employment. (c) The unit is available both on the private market and to all persons regardless of race, color, sex, marital status, religion or, national origin. 5. Provide referrals to available commercial sites for the business tenants; 6. Maintain an updated database of available housing and commercial resources, and distribute referral information to displacees for the duration of the Project; 7. Provide transportation to the residential displacees, if necessary, to inspect replacement sites within the local area; 8. Inspect replacement housing to assure it meets decent, safe and sanitary standards as described in the URA; 9. Supply information concerning federal and state programs and other governmental programs providing assistance to displaced persons; 10. Make benefit determinations and payments in accordance with applicable law and the Developer's adopted relocation guidelines; 11. Assist eligible occupants in the preparation, and submission, of relocation assistance claims; 12. Assure that no occupant is required to move without a minimum of 90 days written notice to vacate; 13. Inform all persons subject to displacement of the Developer's policies with regard to eviction and property management; 55A-17 Depot at Santiago Project Relocation Plan 14. Provide additional reasonable services necessary to successfully relocate occupants; 15. Establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of the Developer's decisions with respect to relocation assistance; and 16. Provide assistance that does not result in different or separate treatment based on or due to an individual's sex, marital status, race, color, religion, ancestry, national origin, physical handicap, sexual orientation, and domestic partnership status. B. RESIDENTIAL RELOCATION BENEFITS Specific eligibility requirements and a benefit plan will be detailed on an individual basis with the displacee. In the course of a personal interview and follow-up visits, the displaces will be counseled as to available options and the consequences of any choice with respect to financial assistance. Relocation benefits will be provided in accordance with the provisions of the federal guidelines, and Developer rules, regulations and procedures pertaining thereto. Benefits will be paid to eligible displaced persons upon submission of required claim forms and documentation in accordance with the Developer's normal administrative procedures. The Developer will process advance payment requests to mitigate hardships for residents who do not have access to sufficient funds to pay move -in costs such as first month's rent or security deposits. Approved requests will be processed expeditiously to help avoid the loss of desirable, appropriate replacement housing. 1. Residential Moving Expense Payments All residential occupants to be permanently relocated will be eligible to receive a payment for moving expenses. Moving expense payments will be made based upon the actual cost of a professional move, a fixed payment based on a room -count schedule or a combination of both. a. Actual Cost (Professional Move) Displacees may elect to have a licensed professional mover perform the move. The actual cost of the moving services, based on at least two acceptable bids, will be compensated by the Developer in the form of a direct payment to the moving company upon presentation of an invoice. Transportation costs are limited to a distance of 50 miles in either case. In addition to the actual move, costs associated with utility re -connections (i.e., gas, water, electricity, telephone, and cable, if any), are eligible for reimbursement. 55A318 Depot at Santiago Project Relocation Plan b. Fixed Payment (based on Room Count Schedule) An occupant may elect to receive a fixed payment for moving expenses which is based on the number of rooms occupied in the displacement dwelling. In this case, the person to be relocated takes full responsibility for the move. The fixed payment includes all utility connections as described in (a), above. The clurent schedule for fixed moving payments is set forth in Table 5 following: TABLE 5. Schedule of Fixed Moving Payments Unfurnished Dwelling Room count 1 2 3 4 5 6 7 8 Each additional Amount $725 $930 $1,165 $1,375 $1,665 1 $1,925 $2,215 $2,505 $265 Furnished Dwelling Room count 1 each additional Amount $475 $90 source: Lantomia Uepartment of 1 ransportatton — August 2015 2. Rental Assistance to Tenants Who Choose to Rent To be eligible to receive the rental assistance benefits, the displaced tenant household has to rent or purchase and occupy a decent, safe, and sanitary replacement dwelling within one year from the date they move from the displacement dwelling. Based upon the available data regarding the Project residential displacee, the displaced household may qualify for, and may be eligible to apply for, relocation benefits under URA provisions. The potential payment to the household will be payable over a 42 - month period and limited to a maximum of $7,200 as stated under URA guidelines effective October 1, 2014. However, the payment may exceed the maximum limit if Housing of Last Resort applies as explained in Section C. The relocation program is explained in detail in the informational brochure to be provided to each permanently displaced household (see Exhibit Q. Rental Assistance payment ammints are equal to 42 times the difference between the base monthly rent and the lesser of: (i) The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling as detennined by the Developer and City staff; or (ii) The monthly rent and estimated average monthly cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person. 551-19 Depot at Santiago Project Relocation Plan The base monthly rent for the displacement dwelling is the lesser of: i. The average monthly cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement. Average monthly cost of utilities will be determined by actual statements/receipts over a 12 month period or a statement of average usage from the utility company, if provided. The most recent local utility schedule will be used to determine estimated utilities' costs, if actual costs are not provided. For owner -occupants or households, which paid little or no rent, fair market rent will be used as a substitute for actual rent; or ii. Thirty percent (30%) of the displaced person's average, monthly gross household income, if the amount is classified as "low income" by the U. S. Department of Housing and Urban Development's (HUD) Annual Survey of Income Limits for the Public Housing and Section 8 Programs. (HUD's Survey is shown as Exhibit A.) If a displacee refuses to provide appropriate evidence of income or is a dependent, the base monthly rent shall be detennined to be the average monthly cost for rent and utilities at the displacement dwelling; or iii. The total of the amount designated for shelter and utilities if receiving a welfare assistance payment from a program that designated the amounts for shelter and utilities. Table 6 portrays the benefits detennination under the URA: TABLE 6: Example Computation of URA Rental Assistance Payments 1. Old Rent $650 Old Rent and Utilities or 2. Ability to Pay $700 30% of the Gross Household Income (if Low Income) 3. Lesser of lines I or 2 $650 Base Monthly Rental Subtracted From: 4. Actual New Rent $750 Actual New Rent and Estimated Utilities or 5. Comparable Rent $775 Determined by Developer (includes estimated utilities) 6. Lesser of lines 4 or 5 $750 7. Yields Monthly Need: $100 Subtract line 3 from line 6 8. Rental Assistance $4,200 Multiply line 7 by 42 months 55A 520 Depot at Santiago Project Relocation Plan 3. Downpayment Assistance to Tenants Who Choose to Purchase The displaced household may opt to apply the entire benefit amount for which they are eligible toward the purchase of a replacement unit (Guidelines 49 CFR 24.402(b)). A displaced household, who chooses to utilize up to the fall amount of their rental assistance eligibility (including any Last Resort benefits) to purchase a home, will have the fiords deposited in an open escrow account, provided that the entire amount is used for the downpayment and eligible, incidental costs associated with the purchase of a decent, safe, and sanitary replacement home. A provision shall be made in the escrow arrangements for the prompt return of the Developer's funds, in the event escrow should fail to close within a reasonable period of time. Final determination about the type of relocation benefits and assistance for which the household is eligible will be detennined upon verification of the household's occupancy status and income. 4. Determination of Comparable Housing Relocation staff will evaluate the cost of comparable replacement housing in the preparation of each individual Notice of Eligibility issued to residential displacees. For residential occupants, the cost of comparable replacement housing will be determined by the comparable method, which determines the most comparable dwellings in the local market for each type of unit needed and as defined on Page 12 number 4. C. LAST RESORT HOUSING Specifically, for renters, when the computed replacement housing assistance eligibility exceeds $7,200 or replacement dwelling monthly rental costs (including utilities and other reasonable recurring expenses) exceeds 30% of the person's average monthly income, Last Resort Housing will have to be provided. Therefore, if the Project is to go forward, the Developer will authorize its fields or funds authorized for the Project to provide housing of last resort. Funds will be used to make payments in excess of the monetary limit specified in the statute ($7,200); hence, satisfying the requirement that "comparable replacement housing" is available. A displaced tenant household will be entitled to consideration for supplementary benefits in the form of Last Resort Housing assistance when the computed replacement housing assistance eligibility exceeds $7,200 or replacement dwelling monthly rental costs (including utilities and other reasonable recurring expenses) exceed 30% of the person's average monthly income (financial means) or when a tenant fails to meet the 90 -day occupancy requirement and comparable replacement rental housing is not available within the displaced person's financial 55A-21 Depot at Santiago Project Relocation Plan means. Calculations of Last Resort rental assistance benefits for tenants who fail to meet the 90 - day occupancy requirement will be based solely on household income. Non -90 -day qualifiers must meet basic eligibility requirements applied to all other displacees. The Developer will pay Last Resort Housing payments in at least two installments. Recipients of Last Resort rental assistance, who intend to purchase rather than re -rent replacement housing, will have the right to request a lump sum payment of all benefits in the form of downpayment assistance. D. COMMERCIAL RELOCATION BENEFITS As a function of a comprehensive relocation assistance program, relocation staff will provide the displaced business owners with required technical and advisory assistance and distribute all required notices and the informational handbook (Exhibit Q. Close contact will be maintained with the business owners. The Developer will provide relocation benefits in accordance with the Federal Relocation Regulations and the HUD Handbook 1378, California Government Code 7260 and Title 25 of the California Code of Regulations. (The following addresses payment limit increases effective October 1, 2014.) The Developer will pay benefits to the claimants upon submission of required claim forms and documentation in accordance with the Developer's approved procedures. Eligible businesses will have two options with respect to claims for relocation assistance benefits: 1) compensation for actual reasonable and necessary moving and related expenses; or 2) a fixed payment in lieu not to exceed $40,000. Off-site property owners whose sole business is considered to be the rental of real property to others are not eligible to receive a fixed payment but may file a claim for actual moving costs and compensation for reestablishment expenses described later in this section. 1. Payment for Actual Reasonable and Necessary Moving and Related Expenses Any business which qualifies as a displaced person is entitled to payment for such actual moving expenses, as the Developer determines to be reasonable and necessary, including expenses for: a. Transportation of persons and property from the present location to the replacement location (transportation costs for a distance beyond 50 miles are not eligible, unless the Developer determines that relocation beyond 50 miles is justified); b. Packing, crating, uncrating, and unpacking personal property; 155A722 Depot at Santiago Project Relocation Plan C. Disconnecting, dismantling, removing, reassembling, and installing relocated and substitute machinery, equipment and other personal property. Includes connection to utilities available nearby and modifications necessary to adapt such property to the replacement structure or to the utilities or to adapt the utilities to the personal property; d. Storage of personal property for a period not to exceed 12 months, unless the Developer determines that a longer period is necessary; C. Insurance of personal property while in storage or transit and the replacement value of property lost, stolen, or damaged (not through the fault or negligence of the displaced person) in the process of moving, where insurance is not readily available; f. Any license, permit, or certification required by the displaced business, to the extent that the cost is necessary for reestablishment at the replacement location. (These costs may be pro -rated based on the remaining useful life of any existing license, permit or certification); g. Reasonable and pre -authorized professional services, including architects', attorneys', engineers' fees, and consultants' charges, necessary for: (1) planning the move of the personal property; (2) moving the personal property; or, (3) installing the relocated personal property at the replacement location; h. Professional services performed prior to the purchase or lease of a replacement site to determine its suitability for the business operation including, but not limited to, soil testing, feasibility and marketing surveys; The purchase and installation of substitute personal property limited to the lesser of. (1) an amount equal to the reasonable expenses that would have been required to relocate the property, as detennined by the Developer, subject to certain limitations, or, (2) the replacement cost, less any proceeds from its sale or trade in; Connection to available nearby utilities from the right-of-way to improvements at the replacement site; k. The modification of machinery, equipment or other personal property necessary to adapt these to the replacement location or to utilities available at the replacement location; Relettering signs and replacing stationary on hand at the time of displacement that is made obsolete as a result of the move; 55A-23 Depot at Santiago Project Relocation Plan In. Actual direct losses of tangible personal property resulting from moving or discontinuing a business or non-profit organization, not -to -exceed the lesser of: (1) the fair market value of the property for continued use at its location prior to displacement less any proceeds from sale of the property; or, (2) an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the Developer, subject to certain limitations; n. Actual and reasonable expenses incurred in searching for a replacement business or non-profit organization location, not -to -exceed $2,500, and including compensation for transportation expenses; time spent searching for a reasonable location, meals, and lodging; real estate broker or agent fees; time spent in obtaining permits and attending zoning hearings; and time spent negotiating the purchase of a replacement site; o. Impact fees or one-time assessments for anticipated heavy utility usage; P. Low Value/High Bulk: when the personal property to be moved is of low value and high bulk, and the cost of moving the property would be disproportionate to its value in the judgment of the Developer, the allowable moving cost payment shall not exceed the lesser of: (1) the amount which would be received if the property were sold at the site or (2) the replacement cost of a comparable quantity delivered to the new business location. Examples of personal property covered by this provision include, but are not limited to, stockpiled sand, gravel, minerals, metals and other similar items of personal property as determined by the Developer; q. A Reestablishment allowance of up to $25,000, available to farms, nonprofit organizations and small businesses with no more than 500 employees. Reestablishment allowance payments are made in addition to compensation provided for actual, reasonable and necessary moving expenses. Reestablishment allowance expense categories include but are not limited to: 1) Repairs or improvements to the replacement property as required by Federal, State or local law, code or ordinance; 2) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting business; 3) Construction and installation costs for exterior signing to advertise the business; 4) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint paneling or carpeting; 5) Advertisement of replacement location; 55A 924 Depot at Santiago Project Relocation Plan 6) Estimated increased costs of operation during the first two years at the replacement site for such items as: a. Lease or rental charges b. Personal or real property taxes c. Insurance premiums, and d. Utility charges, excluding impact fees 7) Other items essential to the reestablishment of the business. 2. Self -Moves If the displaced business elects to take full responsibility for the move of the business, the Developer will make a payment for the business's moving expenses in an amount not to exceed the lower of two acceptable bids or estimates submitted to the Developer. At the Developer's discretion, a payment for a low cost or uncomplicated move may be based on a single bid or estimate. 3. A Fixed Payment in Lieu of a Payment for Actual Reasonable Moving and Related Expenses The option to claim a fixed payment enables both for-profit and non-profit businesses to receive relocation assistance compensation without providing documentation of bids and actual expenses. The payment amount available to any individual business is based on an average of annual net earnings over a two year period. For businesses which have not been in operation for two years, income figures can be annualized. The method for establishing income is through tax returns and/or certified financial statements. The payment to an eligible business may not be less than $1,000, or more than $40,000. To qualify for this payment, it must be determined that, a displaced business: • owns or rents personal property, which must be moved in connection with such displacement and for which an expense would be incurred in such move; • is not operated at the displacement site solely for the purpose of renting the dwelling or site to others; • cannot be a part of a commercial enterprise having at least three other establishments which are not being acquired by the Developer, and which is Linder the same ownership and engaged in the same or similar business activities; • must not be able to relocate without substantial loss of patronage; and • contributed materially, as defined by the Developer, to the income of the displaced person during the two taxable years prior to displacement. 55A-25 Depot at Santiago Project Relocation Plan 4. Personal Property Move Only (Storage) Eligible displaced persons include those that must relocate personal property from the Project site. The owner of the personal property is entitled to reimbursement for expenses related to the relocation of the personal property as described in D (1) (a- e) above. E. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS Claims and supporting documentation for relocation benefits must be filed with the Developer no later than 18 months after the date of displacement. Relocation benefits will be paid from tax credit equity, Developer funds, and construction loan funds. The procedure for the preparation and filing of claims, and the processing and delivery of payments, will be as follows: Claimant(s) will provide all necessary documentation to substantiate eligibility for assistance; 2. Relocation staff will review all necessary documentation including, but not limited to, income verification, lease documents and escrow material before reaching a determination as to which expenses are eligible for compensation; 3. Required claims forms will be prepared by relocation staff and presented to the claimant for review. Signed claims and supporting documentation will be returned to relocation staff and submitted to the Developer; 4. The Developer will review and approve claims for payment, or request additional information; 5. The Developer will issue benefit checks to claimants in the most secure, expeditious manner possible; 6. Final payments to residential displacees will be issued after confirmation that the Project premises have been completely vacated and actual residency at the replacement unit is verified; Receipts of payment and all claims materials will be maintained in the relocation case file. F. IMMIGRATION STATUS Federal legislation (PL105-117) prohibits the payment of relocation assistance benefits under the Uniform Act to any alien not lawfully present in the United States unless such ineligibility would 55A2-126 Depot at Santiago Project Relocation Plan result in an exceptional and extremely unusual hardship to the alien's spouse, parent, or child any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Developer and the City to negatively affect the alien's spouse, parent or child. In order to track and account for relocation assistance and benefit payments, Developer staff will be required to seek immigration status information from each displacee 18 years or older by having them self -certify as to their legal status. The Developer will pay relocation benefits to otherwise eligible non -lawfully present persons with non-federal funds. G. RELOCATION TAX CONSEQUENCES In general, relocation payments are not considered income for the purpose of Division 2 of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986 (Title 26, U.S. Code), or for the purpose of determining the eligibility or extent of eligibility of any person for assistance under the Social Security Act (42 U.S. Code 301 et seq.) or the Personal Income Tax Law, Part 10 (commencing with Section17001) of the Revenue and Taxation Code, or the Bank and Corporation Tax Law, Part II (commencing with Section 23001) of Division 2 of Revenue and Taxation Code. The above statement on tax consequences is not intended as tax advice by the Developer or OPC. Displacees are responsible for consulting with their own tax advisors concerning the tax consequences of relocation payments. H. PROGRAM ASSURANCES AND STANDARDS There are adequate funds to relocate the businesses and the residential tenant. Services will be provided to ensure that displacement does not result in different or separate treatment of displacees based on race, nationality, color, religion, national origin, sex, marital status, familial status, disability or any other basis protected by the Federal Fair housing Amendments Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the California Fair Employment & Housing Act, and the Unruh Act, as well as any other arbitrary or unlawful discrimination. 55A-27 Depot at Santiago Project Relocation Plan V. ADMINISTRATIVE PROVISIONS A. NOTICES Each notice, which the Developer is required to provide to a Project occupant, shall be personally delivered or sent by certified or registered first-class mail, return receipt requested and documented in the case file. Each notice will be written in plain, understandable language. Persons who are unable to read and understand any notice will be provided with appropriate translation and counseling. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. There are three principal notices: I) the General Information Notice, 2) the Notice of Relocation Eligibility, and 3) the Ninety -Day Vacate Notice. The General Information Notice (GIN) is intended to provide potential relocatees with a general written description of the Developer's relocation program and basic information concerning benefits, conditions of eligibility, noticing requirements and appeal rights. (See Exhibit B) GINS were mailed via regular and certified mail and hand -delivered to all affected occupants in June 2013. A Notice of Relocation Eligibility (NOE) will be distributed to each relocatee. The NOE to the residential relocatee contains a determination of eligibility for relocation assistance and a computation of a maximum entitlement based on infonmation provided by the affected household and the analysis of comparable replacement properties undertaken by relocation staff. The NOE to the commercial occupants includes a description of the benefits categories for which the business owners are eligible. The NOE will be issued to any eligible permanent displacee once the Project has been approved and Project funding is in place. No lawful occupant will be required to move without having received at least 90 days advance written notice of the earliest date by which the move will be necessary. The 90 -day notice will either state a specific date as the earliest date by which the occupant may be required to move or state that the occupant will receive a further notice indicating, at least 30 days in advance, the specific date of the required move. The 90 -day notice will not be issued to any residential displacee before a comparable replacement dwelling has been made available. In addition to the three principal notices, Developer staff will issue timely written notification in the form of a Reminder Notice, which discusses the possible loss of rights and sets the expiration date for the loss of benefits to those persons who: 1) are eligible for monetary benefits, 2) have moved from the acquired property, and 3) have not filed a claim for benefits. 255A328 Depot at Santiago Project Relocation Plan Reminder Notices will be issued periodically throughout the qualification period. An attempt shall be made to make written contact with all non-responsive relocatees no later than within the last six months prior to the filing expiration date. B. PRIVACY OF RECORDS All information obtained from displacees is considered confidential and will not be shared without consent of the displacee or the Developer. Relocation staff will comply with federal regulations concerning safeguarding of relocation files and their contents. C. GRIEVANCE PROCEDURES The Developer's grievance policy will follow the standards described in Article 5 Section 6150 et seq. of the State guidelines. Briefly stated, displacees will have the right to ask for administrative review when they believe themselves aggrieved by a determination as to eligibility, the amount of payment, the failure to provide comparable replacement housing referrals or the Developer's property management practices. Appeals will be directed first to the Developer's Project Manager or an authorized designee of the Developer, and subsequently, further appeal will be reviewed by City staff. If a Low Income tenant would like further review, the Los Angeles Office of the Department of Housing and Urban Development will review. Details concerning the entire appeals process will be provided upon request. D. EVICTION POLICY Eviction will cause the forfeiture of a displacee's right to relocation assistance or benefits. Relocation records will be documented to reflect the specific circumstances surrounding any eviction action. Eviction may be undertaken for one, or more of the following reasons: (a) Failre to pay rent, except in those cases where the failure to pay is due to the owner's failure to keep the premises in habitable condition; is the result of harassment or retaliatory action; or, is the result of discontinuation, or a substantial interruption of services; (b) Performance of a dangerous, and/or illegal act in the unit; (c) A material breach of the rental agreement, and failure upon notification to correct said breach within 30 days of Notice; (d) Maintenance of a nuisance, and failure to abate such nuisance upon notification within a reasonable time following Notice; (e) Refusal to accept one of a reasonable number of offers of replacement dwellings; and/or, (i) A requirement under State, or local law or emergency circumstances that cannot be prevented by reasonable efforts on the part of the Developer. 55A-29 Depot at Santiago Project Relocation Plan E. CITIZEN PARTICIPATION As the process for considering the Project moves forward, the Developer will observe the following protocol: Provide affected tenants with full and timely access to documents relevant to the relocation program; 2. Encourage meaningful participation in reviewing the Relocation Plan and monitoring the relocation assistance program; 3. Provide technical assistance necessary to interpret elements of the Relocation Plan and other pertinent materials; 4. Issue a general notice concerning the availability of the Plan for public review, as required, 30 days prior to its proposed approval; and 5. Include written or oral comments concerning the Plan as an attachment (Exhibit D) when it is forwarded to the City Council for approval, prior to tenant displacements. F. PROJECTED DATE OF DISPLACEMENT The Developer anticipates that date specific Notices to Vacate will not be issued prior to November 2015. No occupant will be required to vacate without a minimum of 90 days notice. However, an occupant may choose to vacate prior to a vacate notice being issued, once they have received their Notice of Eligibility, and be assured they will receive any relocation assistance to which they may be entitled. G. ESTIMATED RELOCATION COSTS The total budget estimate for relocation -related payments for this Project is $383,000. This estimate should not be interpreted as firm, "not to exceed," or actual entitlement costs. The estimate is based on the data obtained through the occupant interviews, current project scope, replacement site availability, estimated housing assistance, moving costs, reestablishment costs and the judgment and experience of the Overland, Pacific & Cutler, Inc. staff. The estimate does not include any payments related to property acquisition or any compensation for Improvements Pertaining to Realty. In addition, the budget does not consider the cost of any services necessary to implement the Plan and complete the relocation element of the Project. 255A530 Depot at Santiago Project Relocation Plan If the Project is to be implemented, and circumstances arise that should change either the member of displaced occupants, or the nature of their activity, the Developer will authorize any additional compensable funds that may need to be appropriated. The Developer pledges to appropriate, on a timely basis, the funds necessary to ensure the successful completion of the Project, including funds necessary for Last Resort Housing as indicated in Section IV, E, of this Plan to meet its obligation under the relocation regulations. 55A-31 EXHIBIT A HUD INCOME LIMITS - ORANGE COUNTY The following figures are approved by the U. S. Department of Housing and Community Development (H.C.D.) for use in the County of Orange to define and determine housing eligibility by income level. Area Median: $85,900 Family Size Extremely Low Very Low Lower 1 Person 19,700 32,800 52,500 2 Person 22,500 37,500 60,000 3 Person 25,300 42,200 67,500 4 Person 28,100 46,850 74,950 5 Person 30,350 50,600 80,950 6 Person 32,600 54,350 86,950 7 Person 36,730 58,100 92,950 8 Person 40,890 61,850 98,950 Figures are per the Department of Housing and Community Development (California), Division of Housing Policy Development, 2015. 55A-32 EXHIBIT B GENERAL INFORMATION NOTICES 55A-33 General Information Notice Non -Residential Occupant to Be Displaced June 26, 2013 <<Name>> <<Business Name>> <<Address>> N. Santiago Street Santa Ana, CA 92701 Dear <<Name>>: The Depot at Santiago, LP (called here the "Developer's is interested in acquiring the property you currently occupy at <<Address>> N. Santiago Street, Santa Ana, CA for their proposed housing project, the Depot at Santiago Project (called here the "Project"). This notice is to inform you of your rights under Federal law. If the Developer acquires the property, and you are displaced for the Project, you will be eligible for relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended and HUD Handbook 1378. However, you do not have to move now. This is not a notice to vacate the premises or a notice of relocation eligibility. If the property is acquired, relocation activities would not start from 1 to 1'/2 years from today. The Developer has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to represent the Developer and assist in the relocation process. In order to assess and better plan for the relocation needs of possible displaced non-residential occupants in the Project, the Developer is preparing a Relocation Plan. In order to prepare this relocation plan, OPC staff will need to meet with you at your place of business to assess your relocation needs. OPC will be in the area of your business beginning the week of June 24th and will be trying to contact you then. If you want to make an appointment that is convenient for you, please call the relocation agent identified below. Laura Kane 1-800/901-5263 If you rent or lease your unit, you should continue to pay your monthly rent to your landlord because failure to pay rent and meet your obligations as a tenant may be cause for eviction and loss of relocation assistance. You are urged not to move or sign any agreement to purchase or lease a unit before receiving formal notice of eligibility for relocation assistance. If you move or are evicted before receiving such notice, you will not be eligible to receive relocation assistance. Please contact us before you make any moving plans. If the Developer acquires the property and you are eligible for relocation assistance, you will be given advisory services, including referrals to replacement sites, and at least 90 days advance written notice of the date you will be required to move. You would also receive either a payment for actual moving and reestablishment expenses, or, a fixed payment in lieu of a payment for actual moving and reestablishment expenses. Pursuant to the Public Law 105-117, in order to be eligible to receive non-residential relocation benefits in federally -funded projects, in the case of an unincorporated business, each owner must be 55A-34 either a citizen or national of the United States, or an alien who is lawfully present in the United States. The owner of a sole proprietorship and all owners of a partnership must provide information regarding their lawful presence in the United States, and a for-profit or a non-profit corporation must certify that it is authorized to conduct business within the United States, Owners of sole proprietorships or partnerships, who are not lawfully present in the United States, or who decline to provide this information, are not eligible for relocation assistance, unless such eligibility would result in exceptional hardship to a qualifying spouse, parent, or child. Relocation benefits will be prorated to reflect the number of owners with certified lawful presence in the United States. Again, this is not a notice to vacate and does not establish eligibility for relocation payments or other relocation assistance. If the Developer decides not to purchase the property, you will be notified in writing. Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Developer's Relocation Assistance Program may have the appeal application reviewed by the Developer in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Developer. If you have any questions about this or any other relocation issues, please contact me at the address and the phone number below. Sincerely, Michele Folk, SR/WA, R/W-RAC, R/W-URAC Managing Director, Housing Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 (949) 951-5263 Received by Recipient's Signature Date Delivered on/by: /. Posted on/by: Mailed/receipt received on: /. 55A-35 General Information Notice Residential Occupant to Be Displaced June 26, 2013 <<Name>> and other occupants 921 N. Santiago Street Santa Ana, CA 92701 Dear «Name»and all other occupants: The Depot at Santiago, LP (called here the "Developer') is interested in acquiring the property you currently occupy at 921 N. Santiago, Santa Ana, CA for their proposed housing project, the Depot at Santiago Project (called here the "Project'. This notice is to inform you of your rights under Federal law. If the Developer acquires the property, and you are displaced for the Project, you will be eligible for relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended and HUD Handbook 1378. However, you do not have to move now. This is not a notice to vacate the premises or a notice of relocation eligibility. If the property is acquired, relocation activities would not start from 1 to 1'/2 years from today. The Developer has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to represent the Developer and assist in the relocation process. In order to assess and better plan for the relocation needs of possible displaced residential occupants in the Project, the Developer is preparing a Relocation Plan. In order to prepare this relocation plan, OPC staff will need to meet with you at your home to assess your relocation needs. OPC will be in the area beginning the week of June 24th and will be trying to contact you then. If you want to make an appointment that is convenient for you, please call the relocation agent identified below. Laura Kane (800)901-5263 If you rent or lease your unit, you should continue to pay your monthly rent to your landlord because failure to pay rent and meet your obligations as a tenant may be cause for eviction and loss of relocation assistance. You are urged not to move or sign any agreement to purchase or lease a unit before receiving formal notice of eligibility for relocation assistance. If you move or are evicted before receiving such notice, you will not be eligible to receive relocation assistance. If the Developer acquires the property and you are eligible for relocation assistance, you will be given advisory services, including referrals to replacement housing, and at least 90 days advance written notice of the date you will be required to move. You would also receive a payment for moving expenses and may be eligible for financial assistance to help you rent or buy a replacement dwelling. Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Developer's Relocation Assistance Program may have the appeal application reviewed by the 55A-36 Developer in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Developer. Note that pursuant to Public Law 105-117, aliens not lawfully present in the United States are not eligible for relocation assistance, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent, or child. All persons seeking relocation assistance will be required to certify that they are a United States citizen or national, or an alien lawfully present in the United States. Again, this is not a notice to vacate and does not establish eligibility for relocation payments or other relocation assistance. If the Developer decides not to purchase the property, you will be notified in writing. If you have any questions about this or any other relocation issues, please contact Laura Kane at the phone number above. Sincerely, Michele Folk, SR/WA, R/W-RAC, R/W-URAL Managing Director, Housing Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 (949) 951-5263 Delivered on/by: Received by X Posted on/by: Recipient's Signature Date Mailed/receipt received on: 55A-37 EXHIBIT C INFORMATIONAL BROCHURES 55A-38 Relocation Assistance Informational Statement for Families and Individuals (Federal - Limits Effective as of October 1, 2014) Displacing Agency: Depot at Santiago, LP Project Name: Depot at Santiago Displacing Agency Representative: Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 Phone: (800) 901-5263 Informational Statement Content: 1. General Information 2. Assistance In Locating A Replacement Dwelling 3. Moving Benefits 4. Replacement Housing Payment - Tenants And Certain Others 5. Section 8 Tenants 6. Replacement Housing Payment — Homeowners 7. Qualification For And Filing Of Relocation Claims 8. Last Resort Housing Assistance 9. Rental Agreement 10. Evictions 11. Appeal Procedures — Grievance 12. Tax Status of Relocation Benefits 13. Legal Presence Requirement 14. Non -Discrimination and Fair Housing 15. Additional Information And Assistance Available Spanish speaking representatives are available. SI necesita esta informad6n on espafiol, por favor flames su representante. 55A-39 Informational Statement for 1. GENERAL INFORMATION lies and, Individuals (Federal) The dwelling in which you now live is in a project area to be improved by, or financed through, the Displacing Agency using federal fimds. If and when the project proceeds, and it is necessary for you to move from your dwelling, you may be eligible for certain benefits. You will be notified in a timely manner as to the date by which you must move. Please read this information, as it will be helpful to you in determining your eligibility and the amount of the relocation benefits you may receive under the federal law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you don't provide it, you may not receive the benefits or it may take longer to pay you. We suggest you save this informational statement for reference. The Displacing Agency has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to provide relocation assistance to you. The firm is available to explain the program and benefits. Their address and telephone number is listed on the cover. PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE YOUR DWELLING. However, if you desire to move sooner than required, you must contact your representative with Overland, Pacific & Cutler, Inc., so you will not jeopardize any benefits. This is a general informational brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to the Displacing Agency's relocation assistance program. Please continue to pay your rent to your current landlord, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive. Once the Displacing Agency acquires the property, you will also be required to pay rent to the Displacing Agency. 2. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING The Displacing Agency, through its representatives, will assist you in locating a comparable replacement dwelling by providing referrals to appropriate and available housing units. You are encouraged to actively seek such housing yourself. When a suitable replacement dwelling unit has been found, your relocation consultant will carry out an inspection and advise you as to whether the dwelling unit meets decent, safe and sanitary housing requirements. A decent, safe and sanitary housing unit provides adequate space for its occupants, proper weatherproofing and sound heating, electrical and plumbing systems. Your new dwelling must pass inspection before relocation assistance payments can be authorized. 3. MOVING BENEFITS If you must move as a result of displacement by the Displacing Agency, you will receive a payment to assist in moving your personal property. The actual, reasonable and necessary expenses for moving your household belongings may be determined based on the following methods: • A Fixed Moving Payment based on the number of rooms you occupy (see below); or • A payment for your Actual Reasonable Moving and Related Ex enses based on at least two written estimates and receipted bills; or • A combination of both (in some cases). 55A-40 For example, you may choose a Self Move, receiving a payment based on the Fixed Residential Moving Cost Schedule shown below, plus contract with a professional mover to transport your grand piano and /or other items that require special handling. In this case, there may be an adjustment in the number of rooms which qualify under the Fixed Residential Moving Cost Schedule. A. Fixed Moving Payment (Self Move) A Fixed Moving Payment is based upon the number of rooms you occupy and whether or not you own your own furniture. The payment is based upon a schedule approved by the Displacing Agency, and ranges, for example, from $475.00 for one furnished room to $2,505.00 for eight rooms in an unfurnished dwelling. (For details see the table). Your relocation representative will inform you of the amount you are eligible to receive, if you choose this type of payment. If you select a fixed payment, you will be responsible for arranging for your own move, and the Displacing Agency will assume no liability for any loss or damage of your Fixed Moving Schedule CALIFORNIA Effective 2012 Occupant Owns Furniture: 1 room $725 2 rooms $930 3 rooms $1,165 4 rooms $1,375 5 rooms $1,665 6 rooms $1,925 7 rooms $2,215 8 rooms $2,505 Each additional room $265 Occupant does NOT Own Furniture: 1 room $475 Each additional room $90 personal property. A fixed payment also includes utility hook-up, credit check and other related moving fees. B. Actual Moving Expense (Commercial Move) If you wish to engage the services of a licensed commercial mover and have the Displacing Agency pay the bill, you may claim the ACTUAL cost of moving your personal property up to 50 miles. Your relocation representative will inform you of the number of competitive moving bids (if any) which may be required, and assist you in developing a "mover" scope of services for Displacing Agency approval. 4. REPLACEMENT HOUSING PAYMENT — TENANTS AND CERTAIN OTHERS You may be eligible for a payment up to $7,200.00 to assist in renting or purchasing a comparable replacement dwelling. In order to qualify, you must either be a tenant who has occupied the present dwelling for at least 90 days immediately prior to the initiation of negotiations or an owner who has occupied the present dwelling between 90 and 180 days immediately prior to the initiation of negotiations. A. Rental Assistance. If you wish to rent your replacement dwelling, your maximum rental assistance benefits will be based upon the difference over a forty-two (42) month period between the rent you must pay for a comparable replacement dwelling and the lesser of your current rent or thirty percent (30%) of your monthly household income if your total gross income is classified as "low income" by the U. S. Department of Housing and Urban Development's (HUD) Annual Survey of Income Limits for Public Housing and Section 8 Programs. You will be required to provide your relocation representative with monthly rent and household income verification prior to the determination of your eligibility for this payment. -OR- B. Down -payment Assistance. If you qualify, and wish to purchase a home as a replacement dwelling, you can apply up to the total amount of your rental assistance payment towards the down -payment and non-recurring incidental expenses. Your relocation representative will clarify procedures necessary to apply for this payment. 55A-41 5. SECTION 8 TENANTS When you do move, you may be eligible to transfer your Section 8 eligibility to a replacement site. In such cases, a comparable replacement dwelling will be determined based on your family composition at the time of displacement and the current housing program criteria. This may not be the size of the unit you currently occupy. Your relocation representative will provide counseling and other advisory services along with moving benefits. 6. REPLACEMENT HOUSING PAYMENT - HOMEOWNERS A. If you own and occupy a dwelling to be purchased by the Displacing Agency for at least 180 days prior to the initiation of negotiation, you may be eligible to receive a payment of up to $31,000.00 to assist you in purchasing a comparable replacement unit. This payment is intended to cover the following items: 1. Purchase Price Differential - An amount which, when added to the amount for which the Displacing Agency purchased your property, equals the lesser of the actual cost of your replacement dwelling; or the amount determined by the Displacing Agency as necessary to purchase a comparable replacement dwelling. Your relocation representative will explain both methods to you. 2. Mortgage Interest Differential - The amount which covers the increased interest costs, if any, required to finance a replacement dwelling. Your relocation representative will explain limiting conditions. 3. Incidental Expenses - Those one time incidental costs related to purchasing a replacement unit, such as escrow fees, recording fees, and credit report fees. Recurring expenses such as prepaid taxes and insurance premiums are not compensable. B. Rental Assistance Option - If you are an owner -occupant and choose to rent rather than purchase a replacement dwelling, you may be eligible for a rental assistance payment of up to the amount that you could have received under the Purchase Price Differential, explained above. The payment will be based on the difference between the fair market rent of the dwelling you occupy and the rent you must pay for a comparable replacement dwelling. If you receive a rental assistance payment, as described above, and later decide to purchase a replacement dwelling, you may apply for a payment equal to the amount you would have received if you had initially purchased a comparable replacement dwelling, less the amount you have already received as a rental assistance payment. 7. QUALIFICATION FOR, AND FILING OF, RELOCATION CLAIMS To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the following: • For a tenant, the date you move from the displacement dwelling. • For an owner -occupant, the latter of: a. The date you receive final payment for the displacement dwelling, or, in the case of condemnation, the date the full amount of estimated just compensation is deposited in court; or 55A-42 b. The date the Displacing Agency fulfills its obligation to make available comparable replacement dwellings. All claims for relocation benefits must be filed with the Displacing Agency within eighteen (18) months from the date on which you receive final payment for your property, or the date, on which you move, whichever is later. 8. LAST RESORT HOUSING ASSISTANCE If comparable replacement dwellings are not available when you are required to move, or if replacement housing is not available within the monetary limits described above, the Displacing Agency will provide Last Resort Housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis. Last Resort Housing assistance is based on the individual circumstances of the displaced person. Your relocation representative will explain the process for determining whether or not you qualify for Last Resort assistance. If you are a tenant, and you choose to purchase rather than rent a comparable replacement dwelling, the entire amount of your rental assistance and Last Resort eligibility must be applied toward the down - payment and eligible incidental expenses of the home you intend to purchase. 9. RENTAL AGREEMENT As a result of the Displacing Agency's action to purchase the property where you live, you may become a tenant of the Displacing Agency. If this occurs, you will be asked to sign a rental agreement which will specify the monthly rent to be paid, when rent payments are due, where they are to be paid and other pertinent information. 10. EVICTIONS Eviction for cause must conform to applicable State and local law. Any person who occupies the real property and is not in unlawful occupancy on the date of initiation of negotiations, is presumed to be entitled to relocation benefits, unless the Displacing Agency determines that: • The person received an eviction notice prior to the initiation of negotiations and, as a result, was later evicted; or • The person is evicted after the initiation of negotiations for serious or repeated violation of material terms of the lease; and • The eviction was not undertaken for the purpose of evading relocation assistance regulations. Except for the causes of eviction set forth above, no person lawfully occupying property to be purchased by the Displacing Agency will be required to move without having been provided with at least 90 days written notice from the Displacing Agency. 11. APPEAL PROCEDURES - GRIEVANCE Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Displacing Agency's Relocation Assistance Program may have the appeal application reviewed by the Displacing Agency in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Displacing Agency. 12. TAX STATUS OF RELOCATION BENEFITS California Government Code Section 7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 170 01) of 55A-43 Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments. (IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax -related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressed herein) 13. LAWFUL PRESENCE REQUIREMENT In order to be eligible to receive relocation benefits in federally -funded relocation projects, all members of the household to be displaced must provide information regarding their lawful presence in the United States. Any member of the household who is not lawfully present in the United States or declines to provide this information may be denied relocation benefits, unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien's spouse, parent, or child, any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Displacing Agency to negatively affect the alien's spouse, parent or child. Relocation benefits will be prorated to reflect the number of household members with certified lawful presence in the US. 14. NON-DISCRIMINATION AND FAIR HOUSING No person shall on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under the Displacing Agency's relocation assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and other applicable state and federal anti -discrimination and fair housing laws. You may file a complaint if you believe you have been subjected to discrimination. For details contact the Displacing Agency. 15. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and greatly appreciated. If you have any questions at any time during the process, please do not hesitate to contact your relocation representative at Overland, Pacific & Cutler. 55A-44 Relocation Assistance Informational Statement For Business, Farm & Nonprofit (Federal — Limits Effective as of October 1, 2104) Displacing Agent: Depot at Santiago, LP Project Name: Depot at Santiago Displacing Agency Representative: Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 Phone: 1-800/901-5263 Spanish speaking agents are available. Si necesita estainformacisn en espanol, por favor flame a su agente. 55A-45 (Federal) Introduction The property on which you now conduct your business is in an area to be improved by, or financed through, the Displacing Agency using federal funds. If and when the project proceeds, and it is necessary for you to move your business, you may be eligible for certain benefits. You will be notified in a timely manner as to the date by which you must move. Please read this information, as it will be helpful to you in determining your eligibility and the amount of the relocation benefits you may receive under the law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you don't provide it, you may not receive the benefits or it may take longer to pay you. We suggest you save this informational statement for reference. The Displacing Agency has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPQ to provide relocation assistance to you. The firm is available to explain the program and benefits. Their address and telephone number is listed on the cover. PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE THE PROPERTY. However, if you desire to move sooner than required, you must contact your relocation agent at Overland, Pacific & Cutler, Inc., so you will not jeopardize any benefits. This is a general informational brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to the Displacing Agency's relocation assistance program. Please continue to pay your rent to your current landlord, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive. Once the Displacing Agency acquires the property, you will also be required to pay rent to the Displacing Agency. Summary of Available Relocation Assistance: A. Advisory assistance to explain the relocation process, the related eligibility requirements, the procedures for obtaining reimbursement for moving expenses and referrals to suitable replacement locations B. Payment for your moving expenses. You may receive one of the following options; Option 1: A Payment for Actual Reasonable Moving and Related Expenses; or Option 2: A Fixed Payment In Lieu of a Payment for Actual Moving and Related Expenses C. Other help to reestablish your business and minimize the impact of the move including help in preparing claim forms to request relocation payments. If you disagree with the Displacing Agency's decision as to your right to a relocation payment, or the amount of the payment, you may appeal that decision. 55A-46 GENERAL RELOCATION QUESTIONS 1. How Will I Know I Am Eligible for Relocation Assistance? Ordinarily, eligibility begins on the date the owner of the property receives the Displacing Agency's initial written offer to purchase the property. Therefore, you should not move before that date or receiving a notice of eligibility. If you do, you may not be eligible for relocation assistance. 2. How Will the Displacing Agency Know How Much Help I Need? You will be contacted at an early date and personally interviewed by an agent of the Displacing Agency. The interviewer will want to get information about your current operation, as well as identify movable personal property and non-movable improvements, determine your needs and preferences for a replacement location, estimate the time required to vacate the premises and your need for advance payments. During the interview, you may want to discuss other issues relative to your move. It is to your advantage to provide as much information as possible so that the Displacing Agency, through its relocation agent, can assist you in moving with a minimum of hardship. The information you give will be kept in confidence. 3. How Soon Will I Have to Move? Every reasonable effort will be made to provide you with sufficient time to find a suitable replacement location and reestablish your business. If possible, a mutually agreeable date for the move will be worked out. Unless there is an urgent need for the property (e.g., your occupancy would present a health or safety emergency), you will not be required to move without at least 90 days advance written notice. It is important, however, that you keep in close contact with the Displacing Agency so that you are aware of the time schedule for carrying out the project and the approximate date by which you will have to move. 4. I Own the Property. Will I Be Paid for It Before I Have to Move? If you reach a voluntary agreement to sell your property to the Displacing Agency, you will not be required to move before you receive the agreed purchase price. If the property is acquired through an eminent domain proceeding, you cannot be required to move before the estimated fair market value of the property has been deposited with the court. (You should be able to withdraw this amount immediately, less any amounts necessary to pay off any mortgage or other liens on the property and to resolve any special ownership problems. Withdrawal of your share of the money will not affect your right to seek additional compensation for your property). S. Will I Have to Pay Rent to the Displacing Agency Before I Move? You may be required to pay a fair rent to the Displacing Agency for the period between the acquisition of your property and the date that you move. Your rent and the terms of your tenancy will be generally the same as in the prior arrangement. 6. How Will I Find a Replacement Location? Your relocation agent will provide you with current and continuing information on available replacement locations that meet your needs. You will also be provided with the names of local real estate agents and brokers who can assist you in finding the type of replacement location you require. However, you are urged to take an active role in identifying, and relocating to, a location of your 55A-47 choice. No one knows your needs better than you do. You will want a facility that provides sufficient space for your planned activities. You will also want to ensure that there are no zoning or other requirements which will unduly restrict your planned operations. Your relocation agent will explain which kind of moving costs are eligible for reimbursement and which are not eligible. That will enable you to carry out your move in the most advantageous manner. 7. What Other Assistance Will Be Available to Help Me? In addition to help in finding a suitable replacement location, your relocation agent will help you secure the services of outside specialists, as necessary, to plan the move, as well as provide assistance during the actual move and in the reinstallation of machinery and/or other personal property. The range of services depends on the needs of the business being displaced. You should ask the Displacing Agency's relocation agent to tell you about the specific services that will be available to you. S. I Have a Replacement Location and Want to Move. What Should I Do? Before you make any arrangements to move, notify the Displacing Agency's relocation agent, in writing, of your intention to move. This should be done at least 30 days before the date you begin your move. The Displacing Agency will discuss the move with you and advise you of the relocation payment(s) for which you may be eligible, the requirements to be met, and how to obtain a payment. 9. I Plan to Discontinue My Business Rather than Move. What Should I Do? If you have decided to discontinue your business rather than reestablish it, you may still be eligible to receive a payment. Contact the Displacing Agency's relocation agent and discuss your decision to discontinue your business. You will be informed of the payment, if any, for which you may be eligible, the requirements to be met, and how to obtain your payment. 10. What Kinds of Payments for Moving Expenses Will I Receive? Every business is eligible for a relocation payment to cover the reasonable cost of moving. Assuming you meet certain eligibility criteria, you may choose one of the following options: Option 1: A Payment for Actual Reasonable Moving and Related Expenses; or Option 2: A Fixed Payment In Lieu of Moving and Related Expenses These payment options are described below: Option 1: Payment for Actual Reasonable Moving and Related Expenses If you choose a Payment for Actual Reasonable Moving and Related Expenses, you may claim the cost of: 1. Transportation of personal property. Transportation costs for a distance beyond 50 miles are not eligible, unless the Displacing Agency determines that relocation beyond 50 miles is justified. 2. Packing, crating, unpacking, and uncrating of the personal property. 55A-48 3. Disconnecting, dismantling, removing, reassembling, and reinstalling relocated machinery, equipment, and other personal property, and certain substitute personal property. This includes connection to utilities available within the building. It also includes modifications to the personal property, including those mandated by Federal, State or local law, code or ordinance, necessary to adapt it to the replacement structure, the replacement site, or the utilities at the replacement site, and modifications necessary to adapt the utilities at the replacement site to the personal property. 4. Storage of the personal property determined to be necessary by the Displacing Agency, not to exceed 12 months, unless the Displacing Agency determines that a longer period is warranted. 5. Insurance for the replacement value of the personal property in connection with the move and necessary storage. 6. The replacement value of property lost, stolen or damaged in the process of moving (not through fault or negligence of the displaced person, his or her agent or employee), where insurance covering such loss, theft or damage is not reasonably available. 7. Any license, permit, fees or certification required of your business at the replacement location. However, the payment may be based on the remaining useful life of the existing license, permit, fees or certification. 8. Reasonable and oreauthorized professional services, the Displacing Agency determines to be necessary for (i) planning the move of the personal property, (ii) moving the personal property, and (iii) installing the relocated personal property at the replacement location. 9. Re -lettering signs and replacing stationary on hand at the time of displacement that is made obsolete as a result of the move. 10. Actual direct loss of tangible personal property incurred as a result of moving or discontinuing your business. The payment will consist of the lesser of: (i) The fair market value in place of the item, as is for continued use at the displacement site, less the proceeds from its sale. (To be eligible for payment, you must make a good faith effort to sell the personal property, unless the Displacing Agency determines that such effort is not necessary. When payment for property loss is claimed for goods held for sale, the fair market value will be based on the cost of the goods to the business, not the potential selling price.); or (ii) The estimated cost of moving the item as is, but with no allowance for storage; or for reconnecting a piece of equipment if the equipment is in storage or not being used at the acquired site. (If you elect to discontinue your business, the estimated cost will be based on a moving distance of 50 miles.) 11. Purchase of substitute personal property. If an item of personal property which is used as part of your business is not moved but is promptly replaced with a substitute item that performs a comparable function at the replacement site, you will be entitled to payment for the lesser of: 55A-49 (i) The cost of the substitute item, including installation costs at the replacement site, minus any proceeds from the sale or trade-in of the replaced item; or (ii) The estimated cost of moving and reinstalling the replaced item but with no allowance for storage. At the Displacing Agency's discretion, the estimated cost for a low cost or uncomplicated move may be based on a single bid or estimate. 12. The reasonable cost incurred in attempting to sell an item that is not to be relocated. 13. Searching for a replacement location. Your business is entitled to reimbursement for actual expenses, not to exceed $2,500 as the Displacing Agency determines to be reasonable, which are incurred in searching for a replacement location including: i) Transportation ii) Meals and lodging away from home. iii) Time spent searching, based on reasonable salary or earnings. iv) Fees paid to a real estate agent or broker to locate a replacement site, exclusive of any fees or commissions related to the purchase of such site. V) Time spent in obtaining permits and attending zoning hearings; and vi) Time spent negotiating the purchase of a replacement site based on a reasonable salary or earnings. 14. When the personal property to be moved is of low value and high bulk, and the cost of moving the property would be disproportionate to its value in the judgment of the Displacing Agency, the allowable moving cost payment shall not exceed the lesser of: the amount which would be received if the property were sold at the site or the replacement cost of a comparable quantity delivered to the new business location. 15. Other related moving expenses as the Displacing Agency determines to be reasonable and necessary, including: i) Connection to available nearby utilities from the right-of-way to improvements at the replacement site; ii) Professional services performed prior to the purchase or lease of a replacement site to determine its suitability for your business operation, including but not limited to soil testing, feasibility and marketing studies (excluding any fees or commissions directly related to the purchase or lease of such site). At the Displacing Agency's discretion, a reasonable pre -approved hourly rate may be established iii) Impact fees or one-time assessments for anticipated heavy utility usage, as determined by the Displacing Agency. The Displacing Agency's relocation agent will explain all eligible moving costs, as well as, those which are not eligible. You must be able to account for all costs that you incur, so keep all your receipts. The Displacing Agency will inform you of the documentation needed to support your claim. You may minimize the amount of documentation needed to support your claim, if you elect to "self - move" your property. Payment for a self -move is based on the amount of an acceptable low bid or estimate obtained by the Displacing Agency. If you self -move, you may move your personal property using your own employees and equipment or a commercial mover. If you and the Displacing Agency 55A-50 cannot agree on an acceptable amount to cover the cost of the self -move, you will have to submit full documentation in support of your claim. You may elect to pay your moving costs yourself and be reimbursed by the Displacing Agency or, if you prefer, you may have the Displacing Agency pay the mover directly. In either case, let the Displacing Agency's relocation agent know before you move. The Displacing Agency agent can help you select a reliable and reputable mover. When a payment for "actual direct loss of personal property" or "substitute personal property" is made for an item, the estimated cost of moving the item may be based on the lowest acceptable bid or estimate obtained by the Displacing Agency. If not sold or traded -in, the item must remain at the old location and ownership of the item must be transferred to the Displacing Agency before you may receive the payment. In addition to the reimbursable expenses described above, a small business, farm or non-profit organization may be eligible to receive a payment of up to $25,000 for expenses actually incurred in relocating and reestablishing its operation at a replacement site. Eligible expenses must be reasonable and necessary, as determined by the Displacing Agency. They may include but are not limited to the following: 1. Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance. 2. Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business. 3. Construction and Installation costs for exterior signage to advertise the business. 4. Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling or carpeting. 5. Advertising of replacement location. 6. Estimated increased costs of operation during the first 2 years at the replacement site, for such items as: a. Lease or rental charges b. Personal or real property taxes c. Insurance premiums, and d. Utility charges (excluding Impact fees) 7. Other items that the Displacing Agency considers essential to the reestablishment of the business. The following is a non-exclusive listing of reestablishment expenditures not considered to be reasonable, necessary or otherwise eligible: • Purchase of capital assets, such as, office furniture, filing cabinets, and machinery or trade fixtures. • Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation. 55A-51 • Interest costs associated with any relocation expense or the purchase of replacement property. • Payment to a part-time business in the home which does not contribute materially to the household income. Option 2: Fixed Payment In Lieu of a Payment for Actual Reasonable Moving and Related Expenses A displaced business, non-profit organization or farm may be eligible to choose a fixed payment in lieu of the payments for actual moving and related expenses and actual reasonable reestablishment expenses. The payment may not be less than $1,000.00 or more than $40,000.00. For a business or farm, the payment is based on the average annual net earnings before Federal, State and local income taxes during the 2 taxable years immediately prior to the taxable year in which it was displaced. For a non-profit organization, the payment is based on the average of 2 years annual gross revenues less administrative expenses. In order to qualify for this payment, the Displacing Agency must determine that: 1. The business owns or rents personal property which must be moved in connection with the displacement and for which an expense would be incurred in such move, and the business vacates or relocates from its displacement site. 2. The business cannot be relocated without a substantial loss of existing patronage (clientele or net earnings). 1 The business is not a part of a commercial enterprise having more than three other entities which are not being acquired by the Displacing Agency, and which are engaged in the same or similar business activities. 4. The business is not operated at the displacement dwelling/site solely for the purpose of renting such dwelling/site to others. 5. The business contributed materially to the income of the displaced person during the two (2) taxable years prior to displacement. If the business or farm was not in operation for the full two years prior to displacement, the net earnings are based on the actual period of operation at the acquired site projected to an annual rate. Average net earnings may be based on a different period of time when the Displacing Agency determines it to be more equitable. Net earnings include any compensation paid to the owners of the business, a spouse or dependents. Proof of net earnings must be furnished to the Displacing Agency through income tax returns, certified financial statements, or other reasonable evidence which the Displacing Agency determines is satisfactory. For a qualified non-profit organization, gross earnings may include membership fees, class fees, cash donations, tithes and receipts from sales or other forms of fund collection that enables the non-profit organization to operate. Administrative expenses are those for administrative support such as rent, utilities, salaries, advertising and other like items as well as fund raising expenses. Operating expenses for carrying out the purposes of the non-profit organization are not included in administrative expenses. The monetary receipts and expense amounts may be verified with certified financial statements or financial documents required by public agencies. 55A-52 The Displacing Agency will inform you as to your eligibility for this payment option and the documentation you must submit to support your claim. Remember, when you elect to take this payment option you are not entitled to reimbursement for any other moving expenses, i.e. Option A described above. 11. I Own an Outdoor Advertising Display. What Relocation Payment Will I Receive? As the owner of an outdoor advertising display, you are eligible for a Relocation Payment For Actual Reasonable Moving and Related Expenses. You are not eligible to receive a Payment In Lieu of a Payment For Actual Reasonable Moving and Related Expenses. If you choose not to relocate or replace the sign, the payment for "direct loss of personal property" would be the lesser of: (1) the depreciated reproduction cost of the sign, as estimated by the Displacing Agency, less the proceeds from its sale, or (2) the estimated cost of moving the sign without temporary storage. The Displacing Agency will inform you as to the exact costs that may be reimbursed. 12. How do I Receive a Relocation Payment? You must file a claim for a relocation payment. The Displacing Agency's relocation agent will provide you with the required claim forms, assist you in completing them, and explain the type of documentation that you must submit in order to receive your relocation payments. If you must pay any relocation expenses before you move (e.g., because you must provide a security deposit if you lease your new location), discuss your financial needs with the Displacing Agency. You may be able to obtain an advance payment. An advance payment may be placed in "escrow" to ensure that the move will be completed on a timely basis. If you are a tenant, you must file your claim within 18 months after the date you move. If you own the property, you must file within 18 months after the date you move, or the date you receive the final acquisition payment, whichever is later. However, it is to your advantage to file as soon as possible after you move. The sooner you submit your claim, the sooner it can be processed and paid. If you are unable to file your claim within 18 months, the Displacing Agency may extend this period. You will be paid promptly after you file an acceptable claim. If there is any question regarding your right to a relocation payment or the amount of the payment, you will be notified, in writing, of the problem and the action you may take to resolve the matter. 13. Non -Discrimination No person shall on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under the Displacing Agency's relocation assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and other applicable state and federal anti -discrimination laws. You may file a complaint if you believe you have been subjected to discrimination. For details contact the Displacing Agency. 14. Appeals Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Displacing Agency's Relocation Assistance Program may have the appeal application reviewed 55A-53 by the Displacing Agency in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Displacing Agency. 15. Tax Status of Relocation Benefits California Government Code Section 7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments. (IRS Circular 230 disclosure; To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax -related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressed herein) 16. Lawful Presence Requirement Pursuant to the Public Law 105-117, in order to be eligible to receive non-residential relocation benefits in federally -funded projects, in the case of an unincorporated business, each owner must be either a citizen or national of the United States, or an alien who is lawfully present in the United States. The owner of a sole proprietorship and all owners of a partnership must provide information regarding their lawful presence in the United States, and a for-profit or a non-profit corporation must certify that it is authorized to conduct business within the United States. Owners of sole proprietorships or partnerships, who are not lawfully present in the United States, or who decline to provide this information, are not eligible for relocation assistance, unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien's spouse, parent, or child, any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Displacing Agency to negatively affect the alien's spouse, parent or child. Relocation benefits will be prorated to reflect the number of owners with certified lawful presence in the United States. 17. Additional Information If you have further questions after reading this brochure, please contact the Displacing Agency's relocation agent at Overland, Pacific & Cutler, Inc. 55A-54 EXHIBIT D PUBLIC COMMENTS & RESPONSES 55A-55 55A-56 EXHIBIT 2 ROH — 11/03115 RESOLUTION NO. 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE RELOCATION PLAN FOR RESIDENTIAL PROPERTY LOCATED AT 923 N. SANTIAGO STREET. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On May 20, 2013, the City Council approved and authorized the loan agreements for an affordable housing project called the Depot at Santiago (Project) located 923 N. Santiago Street. The Project will be a mixed used project that will provide retail space, 70 affordable units and a community room. B. Since obtaining City Council approval of the funding and the Project, the Developer has obtained additional funding from the State of California, including funding from the Infill Infrastructure Grant (IIG) and the Affordable Housing and Sustainable Communities Program (Cap & Trade). C. Based on California Law, when State funds are provided to a project, which would lead to the displacement of people from their homes and/or business, the legislative body must approve a relocation plan. D. The Project Relocation Plan has been prepared in conformance with applicable provisions of California Relocation Assistance Law and Relocation Guidelines as well as United States Department of Housing and Urban Development (HUD) regulations. E. This plan is required due to the necessary demolition of the existing structures, and the permanent displacement of all current occupants located at 923 N. Santiago Street. The needs and characteristics of the displaced population, available relocation resources, and the Developer's program to provide assistance to each affected person are general subjects of the Relocation Plan. The original Relocation Plan was completed in September of 2013, and was updated in September of 2015 as the Project is close to commencing. Resolution No. 2015- 55A-57 Section 2: In accordance with the California Environmental Quality Act (CEQA), Environmental Impact Report No. 2006-02 was prepared for the Transit Zoning Code, where the proposed Project is located. On June 7, 2010, the City Council adopted a resolution certifying the Final Environmental Impact Report, adopted the CEQA Findings of Fact and Statement of Overriding Considerations, and adopted the Mitigation Monitoring and Reporting Program for the Transit Zoning Code. No additional CEQA is required for this Project. Section 3: The City Council hereby approves the relocation plan for the residential Property located at the aforementioned addresses, and the establishment of an account in accordance with state mandates for the payment of relocation benefits to the displaced households, 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 APPROVED AS TO FORM: Sonia R.;ajvalhA, City Attorney IN AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: 2015. Miguel Pulido Mayor Resolution No. 2015- 55A-58 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2015- to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2015-- 55A-59 55A-60 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: ADOPT A RESOLUTION TO ESTABLISH A HOTEL DEVELOPMENT INCENTIVE PROGRAM {STRATEGIC PLAN NO. 3,3C) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: FTIT"00471irk ❑ As Recommended 171 As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing the establishment of a hotel development incentive program to provide economic incentives for the development of four to five -stars or AAA -rated four Diamond and above quality hotels in the City of Santa Ana. DISCUSSION According to the Anaheim/Orange County Visitors & Convention Bureau, 46.1 million people visited Orange County in 2014. This increased by 3.9 percent from 2013 and is expected to continue to increase even more in 2016. Tourism in Orange County is booming and the City of Santa Ana has the opportunity to take advantage of its centralized location in the heart of this booming industry. Santa Ana's proximity to the Anaheim resort district, the John Wayne Airport, and local amenities such as, the Discovery Science Cube and the Bowers Museum makes it a perfect location to attract incoming tourists and visitors to Orange County. To accommodate this growth, new hotel development will be essential to creating jobs and adding amenities to the City. Currently, the City of Santa Ana does not have any four-star rated or AAA four Diamond and above hotels. The City does have nine three -star rated hotels. All other hotels and motels are rated from one to two -star. A uniform rating system for star quality hotels in the United States does not exist. Several websites and travel guides use the star rating when ranking hotels. AAA has an independent rating system that many hotels have been rated by (Exhibit 1). The City desires to use both star and AAA diamond ratings for this incentive program. According to a study by PFK hospitality research consultant, the average occupancy rate for Orange County hotels is 78.3 percent, indicating that there is room for the development of new hotels in this area. 5513-1 Resolution -Establish a Hotel Development Incentive Program November 3, 2015 Page 2 The City currently imposes an 11 percent Hotel Visitors Tax (HVT) on hotel and motel guests staying at facilities within the City. The purpose of this tax is to partially recover some costs of governmental services associated with visitors to the City. The anticipated revenue from the Hotel Visitors Tax for fiscal year 2015-16 is $8.8 million dollars. To spur the development of high quality hotels (four to five-star rated or AAA four Diamond or above), the City is proposing to offer an economic incentive to close the funding gap in a proposed high quality hotel development. A feasibility analysis would be completed for the project, whereby a projection of operating performance is combined with project development cost in order to determine the funding gap. A financial firm would be used for the feasibility analysis. This analysis would be funded by the developer. The City would pay for the funding gap through incentive payments over a period specified in each negotiated agreement. The City would use a percentage (50 percent) of new incremental HVT generated by the new development to fund the payments. Incremental HVT equals the amount of new HVT that the new hotel development generates from a baseline (Year 0). No upfront expenditures from the City would be required. Each hotel agreement will be brought back to City Council for approval. Sample Calculation: A new hotel development generates $1 million in new HVT taxes to the City in its first year. Fifty percent ($500,000) will be reimbursed to the hotel after the City receives HVT. In year two, the hotel generates $1,200,000 in HVT taxes, 50 percent ($600,000) would be reimbursed. This agreement would continue over a 10-15 year period or until the funding gap is reached depending on initial negotiations. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 Economic Development, Objective #3, (Promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), Strategy C (Explore opportunities to encourage a business friendly environment within the City through the reduction of non-essential regulatory requirements, improved coordination between agencies for development review and addition of monetary incentives). 55B-2 Resolution -Establish a Hotel Development Incentive Program November 3, 2015 Page 3 FISCAL IMPACT There is no fiscal impact associated with this action. Each individual incentive agreement would be subject to City Council approval. Community Development Agency KR/MM/II Exhibit: 1. Diamond Rating Guidelines 2. Resolution 55B-3 55B-4 I Introduction Dear Hospitality Professional, On behalf of AAA, I am pleased to introduce to you the latest edition of the Lodging Approval Requirements & Diamond Rating Guidelines. This year marks the 30th anniversary of the AAA Diamond Ratings, as well as the 20th anniversary of the Diamond Rating Guidelines. Since its inception in 1902 as a federation of independent motor clubs, AAA has existed to provide information, safety, security, and peace of mind to its now more than 50 million members. AAA's services have evolved to encompass roadside assistance, insurance and financial services, safety education, and public affairs. AAA is also an undisputed leader in travel information and services. In 1937, the first AAA field representatives were hired to inspect lodgings and restaurants, and in 1963, AAA began assigning lodging ratings from good' to outstanding'. In 1977 — AAA's 75th (diamond) anniversary — the Diamond Rating system was introduced for lodgings, with restaurants included in 1989. In 1987, the first AAA Lodging Diamond Rating Guidelines booklet was introduced for industry review. Prior to this date, only minimum approval requirements were printed and distributed upon request. The new edition of the AAA Approval Requirements and Diamond Rating Guidelines was designed with two objectives in mind: • To ensure that our ratings program is accurate and consistent when compared to meeting the travel needs of over 50 million AAA members. • To provide hospitality professionals a valuable reference so they may be successful in achieving their goal as it relates to AAA Approval and our proprietary Diamond Rating Process. To that end, we feel that it is important to partner with the hospitality industry by gathering input, discussing the meaning of our ratings, and openly sharing how the Diamond Rating Process is applied at the property level. We strongly urge property representatives to take full advantage of the information provided by AAA inspectors during an evaluation, since our experts are exposed to a wide range of properties throughout the United States, Canada, Mexico and the Caribbean. AAA evaluates more than 32,000 accommodations, 28,000 restaurants and nearly 11,000 campgrounds as key content for over 168 million copies of travel -related materials annually. AAA travel products are wide-ranging and include 26 regional TourBook® guides, 11 regional CampBook° guides, AAA.com— including the well-known TripTik® Travel Planner—as well as, numerous retail guidebooks, atlases and maps. We look forward to your continued service on behalf of AAA members at large and appreciate your participation in AAA programs. Sincerely, Michael Petrone, CEC director/AAA Tourism Information Development 558-6 SectionOne..................................................................................................... i Defining AAA Approval Requirements and AAA Diamond Rating Guidelines ..................... 1 Applyingfor a AAA Diamond Rating................................................................................. 1 AAAApproval Requirements............................................................................................ 2 The AAA Evaluation and Diamond Rating Process............................................................ 4 SectionTwo.....................................................................................................6 Whatthe Diamond Ratings Mean..................................................................................... 6 DiamondRating Guidelines - Exterior.............................................................................. 7 Diamond Rating Guidelines - Public Areas....................................................................... 9 Diamond Rating Guidelines - Guestroom....................................................................... 17 DiamondRating Guidelines - Bathroom......................................................................... 24 TheAAA Four and Five Diamond Rating......................................................................... 30 Fourand Five Diamond Service Expectations................................................................. 30 SectionThree................................................................................................37 TheListing..................................................................................................................... 37 LodgingClassifications................................................................................................... 37 Accessibility................................................................................................................... 39 MemberComment Procedures........................................................................................ 39 TheAAA Appeals Process............................................................................................... 40 GreenPrograms............................................................................................................. 40 Addressesand Phone Numbers...................................................................................... 41 55.B-7 t Fv s n t. k i 4 i �T 1 -55B-8 Defining AAA Approval Requirements and AAA Diamond Rating Guidelines It is important to note the difference between AAA Approval Requirements and Diamond Rating Guidelines as this concept is often misunderstood. The evaluation process is made up of three parts: Approval Requirements, objective Diamond Rating Guidelines, and subjective elements based on the professional experience and training of AAA inspectors — who visit over 32,000 lodgings each year. The essential AAA Approval Requirements are common-sense qualifications that AAA members have told us are important to them and, similarly, that most professional operators routinely employ. All Properties must first meet this set of criteria in order to be considered for AAA Approval and Diamond Rating. The _Diamond Rating Guidelines are not rating reguirements, but are components used to determine the aporopriate Diamond Ratino level. Diamond Rating guidelines are simply a reflection of what is typically seen throughout the various market segments of the lodging industry. Therefore, failure to meet some of the components listed for the ratings categories does not necessarily preclude the achievement of that rating. During our evaluation, inspectors will assess the strengths and weaknesses of the property and assign the most appropriate rating that will provide the best match in meeting AAA member expectations. Furthermore, not all of the Diamond Rating Guidelines will apply to all property types. For example: meeting rooms would not be expected at a Bed & Breakfast property, but would be essential at a convention -oriented hotel. Also, the availability and type of swimming pool will be dictated by climatic influences and/or the property classification. AAA inspectors will only use the sections of the Diamond Rating Guidelines that are appropriate for the property classification in assessing the overall Diamond Rating. a AAA CONSIDERS ALL VALID APPLICATIONS FOR EVALUATION. To be considered a valid applicant for AAA evaluation, lodging properties must meet all of the Approval Requirements for their property category. These minimum requirements reflect members' basic expectations. Prior to completing an Application For Evaluation (provided at: www.AAA.biz/Approved), please review the requirements to verify your property's eligibility to apply. Currently listed establishments need not reapply, as our inspectors will routinely conduct an evaluation of your property on a continual basis. Include recent and accurate pictures of the exterior, public areas, as well as examples of a standard guest unit and bathroom, and return to AAA. Please note that if our research indicates past disqualifying issues, you may be asked to provide written documentation of the corrective action taken since then. As of August 1, 2006, lodging properties that request evaluation by AAA are charged nonrefundable application fee: $150 for first-time applicants and $300 for repeat, applicants that previously failed an evaluation or were disassociated from AAA for any reason. The fee does not apply to currently Approved and listed establishments that remain in good standing.'' Please do not send payment with the initial application. On receipt of your Application For Evaluation, AAA will provide written notice regarding the status of your application and, if accepted for further consideration, an invoice for your application fee. On receipt of payment, AAA will schedule your property for an unannounced evaluation within one year. All application fees should be made in U.S. funds and are nonrefundable and will have no Bearing on the outcome of evaluations. AAA conducts property evaluations as a service to members and does not guarantee that all applicants ; will be Approved and listed in member publications. Basic listings are provided without charge to Approved properties. 558-9 AAA does not guarantee an immediate evaluation of all properties that apply, but does guarantee a fair review of all applications. Additionally, AAA reserves all rights to apply priority consideration to those properties demonstrating traits that provide the highest degree of AAA member value. Through ongoing member research, AAA has developed criteria reflecting key elements of consideration in making travel -related decisions. Some examples of AAA member value criteria are: • LOCATION • NEWLY BUILT / RENOVATED • HIGH DEGREE OF CLEANLINESS AND COMFORT • APPROPRIATELY MAINTAINED CONDITIONS • PRICE (Willingness to provide a discount or best rate available) Once your property is approved, it will be evaluated at least once per evaluation cycle by a AAA inspector. All evaluations are unannounced to ensure that our inspectors see your property just as our members would see it. The conditions noted at the time of the annual evaluation will be the basis of the decision to list or rate a property. This decision is at the sole discretion of AAA. By applying for an evaluation, you agree to allow AAA to publish your property information and the respective Diamond Rating in our travel publications. AAA will make every effort to ensure that your property is fairly represented. If, after continued review, or up to and including the end of one year, the property is determined to be of limited AAA member value, a letter will be sent advising that the property has been released from any further consideration. AAA Approval Requirements AAA APPROVAL REQUIREMENTS REFLECT THE MINIMUM ACCEPTABLE CONDITIONS AS ESTABLISHED THROUGH MEMBER SURVEYS AND CONTINUOUS FEEDBACK. To be AAA Approved and Diamond Rated, an establishment must meet the following requirements: 1. All facilities directly associated with a property must be clean and well-maintained ) ! ,' throughout. 2. At a minimum, each guest unit must be thoroughly cleaned, with complete bed and bath linens changed between guest stays. 3. Fresh linens, maid services, and bathroom supplies must be available upon request. 4. A property may not use AAA trademarks—including but not limited to the AAA logo and Diamond Rating, without AAA's prior written consent. 5. The property must be appropriately located for business or leisure travel. 6. The establishment must be a primarily transient operation with four or more units available for AAA members. 7. The establishment must provide AAA room rates for travel publications as requested. 8. The establishment must assist AAA in the resolution of member complaints. 9. The establishment must accommodate unannounced AAA property evaluations within 20 minutes of notice. 10. All property staff must conduct business in a professional and ethical manner providing attentive, conscientious service to guests. 11. A property must only place AAA members in AAA inspected and approved guest units—overflow buildings or guest units (associated with the property but not approved by AAA) are unacceptable. 12. Property management, or their representative, must be readily accessible at all times for guest needs or requests. 13. Guests must have easy access to 24-hour incoming and outgoing phone service, ensuring prompt guest unit message delivery. Emergency messages must be delivered to the guest immediately upon receipt. 14. Management will readily provide property information as requested by AAA on a continual basis for the purpose of maintaining the most accurate travel information for AAA publications. 15. The establishment must be in compliance with all local, state, and federal codes. 55B2 y10 16. Properties must have accurate, legible signage in appropriate areas. 17. All facilities directly associated with a property (such as a restaurant, health club, gift shops, recreation facilities, etc.) provided for guest's use must meet all appropriate AAA Approval Requirements. 18. Adequate illumination is required in all public areas. This includes sufficient lighting in all corridors, walkways, stairways, landings, parking areas, etc. ^�a 19. Each guest unit must contain a comfortable bed with a mattress pad, two sheets, two pillows with pillowcases, and an appropriate bed covering. 20. Each guest unit must have a nightstand or equivalent by each bed, a chair, a writing surface, a waste container, clothes-storage space, and clothes-hanging facilities with hangers for two guests. 21. Each guest unit must have adequate shades, drapes, or blinds to cover all windows or other transparent areas to provide the guest with privacy. 22. The level of soundproofing must be adequate to muffle outside noises and normal sounds in adjacent units and public areas. 23. Each guest unit must have an active light switch at the main entry. 24. Each guest unit must have good illumination at a writing surface, a sitting area, and at each bed. 25. Each guest unit door must be equipped with both a primary lock and a secondary deadbolt lock. A primary lock is defined as a device that permits a guest to enter a unit using some form of key and allows the door to be locked while the unit is occupied and when the guest leaves the unit. Passkeys assigned to appropriate staff members will function to operate only these locks. A secondary lock is defined as a mortised, deadbolt-lacking device with a throw that extends at least one - inch from the edge of the door into the door frame. This permits a guest an extra measure, of security against any unwanted intrusions. Unlike the primary lock, deadbolt master keys will not be provided to guests or to staff. Master key systems will be acceptable when the emergency cmaster key is only, available to top management and security personnel Secondary Lock Variances In certain instances, the requirement for secondary locks may be modified to meet a varietyof exceptions. The most common are noted below. AAA claims the right of final arbitrator in all decisions of this nature:. Sliding Glass Doors Each sliding door must be equipped with an effective locking device. A secondary security lock is required on all ground floor doors and those which are accessible from common walkways and adjoining balconies. " French Doors In addition to the deadbolt lock requirements, surface -mounted slide boltsmust be provided at the top and bottom to secure the stationary/auxiliary door. These bolts must extend into the upper doorframe and the lower doorframe or floor and must bestrong and. sturdymechanisms: 26. Each door to connecting guest units or maintenance corridors must be equipped with a deadbolt lock. 27. Each guest unit entry door must have a viewport or window convenient to the door. 28. Each window overlooking a common walkway or in a ground floor unit must be equipped with a functional lock. 29. Each guest unit must have an operational, single station smoke detector. Hard -wired smoke detectors are preferred. When battery-operated detectors are used, there must be an adequate maintenance program to routinely test and replace batteries. 30. Each guest unit must have its own private bathroom. 31. All bathrooms must contain a toilet, a sink with a well -lit mirror and a convenient electrical outlet, adequate shelf space, and a tub or a shower with a non -slip surface. 32. Each bathroom must be equipped with toilet tissue, a cloth bath mat, and two bars of soap or equivalent— furthermore, each guest must be provided a bath towel, hand towel, face cloth, and a drinking tumbler. 33. All toilet area surfaces (floors, walls, baseboards, etc.) must be non -porous to facilitate proper sanitation. (For example, carpeting is not acceptable in the toilet area.) 55-B=11 The AAA Evaluation and Diamond Rating Process The AAA Evaluation and Diamond Rating Process primarily consists of three parts: • INTRODUCTION, INTERVIEW • PROPERTY TOUR AND PRACTICAL APPLICATION OF THE APPROVAL REQUIREMENTS AND DIAMOND RATING GUIDELINES • ASSESSMENTS SUMMARY First, all establishments must meet AAA Approval Requirements and be determined to provide member value. This validation is conducted through a combined process of applications, inspections, referrals, and media research. If a property is presumed to qualify, one of our inspectors will visit and observe the curbside appeal, exterior, and other factors pertaining to the basic foundation of the establishment. This preliminary review will verify that this property clearly exhibits characteristics that would appeal to AAA members. If satisfied, our representative will contact the owner, general manager, or property designee for a brief interview. This interview is an extremely important part of the evaluation, as factual data is gathered for inclusion into our travel information inventory with potential use in AAA's worldwide printed and electronic publications. This session also gives the property representative a chance to advise AAA of any plans for improvement that may be forthcoming. Following the interview, the inspector will tour the establishment with the property representative to assess the AAA Approval Requirements & Diamond Rating Guidelines. The tour will include an evaluation of all public areas and a cross section of rooms. The inspector will discuss both strengths and weaknesses of the property as it relates to our Guidelines. This dialogue is unique to the AAA Diamond Rating process and is a valuable resource to any property. The overall evaluation process will include the review of six key areas: • CLEANLINESS AND CONDITION • MANAGEMENT AND STAFF • EXTERIOR, GROUNDS, AND PUBLIC AREAS • GUESTROOM.DECOR, AMBIANCE, AND AMENITIES BATHROOMS • GUEST SERVICES (if applicable) 55W12 Properties will receive a mark of 'Pass' or 'Fail' based on the manner of interaction with all property representatives. The inspector will be evaluating the overall level of hospitality, professionalism, and deportment. It is critical to receive a passing mark to be considered for a Diamond Rating. This area is assigned a specific rating overall based on the components listed under the applicable Diamond Rating Guidelines section. Varying weights are applied based on the classification of the property. For example, the exterior, grounds, and public areas at a resort carry more weight than at a downtown hotel. This area is assigned a specific rating overall based on the components listed under the applicable Diamond Rating Guidelines section. Varying weights are applied based on the classification of the property. For example, the room decor, ambiance, and amenities at a hotel carry more weight than at an outdoor vacation resort. a a This area is assigned a specific rating overall based on the components listed under the #' applicable Diamond Rating Guidelines section. Weights remain relatively the same regardless of classification. § P# ;- M1 a: A high level of guest services is the hallmark of the coveted AAA Four and Five Diamond Ratings. All properties must first match the physical guidelines respective of the Four or Five A - Diamond levels to qualify for a series of anonymous visits by AAA inspectors. Our overnight - hospitality assessment includes a review of twelve critical areas and measures approximately 300 guest interaction points. All properties must achieve at least a Four Diamond Rating in guest services to be considered for a Four Diamond Rating overall; similarly, a property must achieve a Five Diamond Rating in guest services to be considered for a Five Diamond Rating overall. THE ACHIEVEMENT OF A AAA DIAMOND RATING MEANS THAT AN ESTABLISHMENT IS ONE OF AN EXCLUSIVE GROUP THAT HAS SUCCESSFULLY COMPLETED THIS THOROUGH EVALUATION PROCESS. If a property is approved, the inspector will assign, or recommend, a Diamond Rating or FYI designation as appropriate based on conditions that exist at the time of the evaluation. The inspector will provide the property representative a written summary of the evaluation, including the rating decision. The frequency of subsequent AAA evaluations varies slightly, depending on the classification and the assigned rating of each establishment. 55B=13 r lit i:N J ,u .. V,71 Ilil z f ...... t � S � <!i 55B-14 AAA DIAMOND RATINGS REPRESENT A COMBINATION OF THE OVERALL QUALITY, THE RANGE OF FACILITIES, AND THE LEVEL OF HOSPITALITY OFFERED BY A PROPERTY, These widely recognized and trusted symbols help AAA members choose lodgings that will meet their needs and expectations. AAA inspectors are responsible for determining a property's Diamond Rating based on established standards that are developed with input from our trained professionals, AAA members, and various lodging industry professionals. AAA's Diamond Rating Guidelines indicate what is typically found at each rating level. However, the size, age, and overall appeal of an establishment are also considered, as well as regional architectural style and design. Diamonds are assigned based on the average of all property characteristics, with a focus on overall guest impression rather than on individual elements. Therefore, not meeting a guideline (in one area) may not necessarily affect the overall Diamond Rating. The final factor in determining the Diamond Rating for a property is professional judgment, which is a very important part of the rating assessment. Our inspectors are North America's travel experts based upon ongoing training and experience in conducting more than 32,000 lodging evaluations per year. One Diamond 9 These establishments typically appeal to the budget -minded traveler. They provide essential, no-frills accommodations. They meet the basic requirements pertaining to comfort, cleanliness, and hospitality. Two Diamond ►1%! 1 These establishments appeal to the traveler seeking more than the basic accommodations, There are modest enhancements to the overall physical attributes, design elements, and amenities of the facility - typically at a moderate price. Three Diamond WOWN or These establishments appeal to the traveler with comprehensive needs. Properties are multifaceted with a distinguished style, including marked upgrades in the quality of physical attributes, amenities, and level of comfort provided. Four Diamond lFr IF These establishments are upscale in all areas. Accommodations are progressively more refined and stylish. The physical attributes reflect an obvious enhanced level of quality throughout. The fundamental hallmarks at this level include an extensive array of amenities combined with a high degree of hospitality, service, and attention to detail. Five Diamond These establishments reflect the characteristics of the ultimate in luxury and sophistication. Accommodations are first class. The physical attributes are extraordinary in every manner. The fundamental hallmarks at this level are to meticulously serve and exceed all guest expectations while maintaining an impeccable standard of excellence. Many personalized services and amenities enhance an unmatched level of comfort. 55B 15 r_e nece'Rv• ► Function =The actwn=for which something is fundamentally fittec ► Plus - When, you see -this term used (such -as -21), plus), it means elements of the previous columns in addition to elements of the tcL ► Residential_- Of, or relating to or connected with, residential sty Diamond Rating Guidelines - Exterior 55B!16 EXTERIOR Basic or dated in Modest Significantly 3D. plus: style enhancements to enhanced in form Obviously form and function and function upscale via roofing, with some windows, siding, or residential some other appointments, architectural such as: feature(s) enhanced roofs, Intricate moldings, window treatments, balconies, chimneys, etc. No drive-through covered entry Varied surfaces; Illumination is adequate Drive-through covered entry; Limited capacity (one -car width) SD. Dlus: Paved and marked areas 2D, plus: Increased capacity (two -car width); Structure Is decorative 2D, plus: Lighting is well- positioned, from multiple sources, and provides a good level of overall illumination 55f8'm 17 3D, olus: Oversized capacity (two - car width and depth); Upscale design and appointments 3D, plus: Lighting fixtures reflect upscale characteristics with respect to the design of the property Valet parking upon request or some other upgraded feature, such as: covered/indoor parking, shuttle service, or evidence of added security 4D, plus: Extraordinary with unique architectural features 4D, plus: Elegant design and appointments 4D, Plus: Valet parking is automatic GLOSSARY. --- Diamond R LOSSARY: Dia afro Ines - Public Areas PUBLIC AREAS Basic material, Enhanced 213, plus: 3D, plus: 4D, plus: such as: linoleum, material, such as: Wood laminates or High grade Custom inlays or painted concrete, wood laminates carpet with wood, marble, textured or low density pile and vinyl, or enhanced design, granite, or other enhancements that carpet with medium density such as: upscale stone provide an overall padding that - pile carpet with patterns, floors, or high design that is provides little or no padding that textures, or density pile obviously elegant comfort underfoot provides average inlays; Decorative carpet with and unique; Area (floor feels hard) comfort tile (ceramic, padding that rugs are luxurious underfoot stone, concrete, provides and unique terra cotta, etc.); exceptional Hard surfaced comfort floors have underfoot decorative area rugs as appropriate 555918 55BA 9 PUBLIC AREAS .,.,DIAMOND Walls are of basic Wall treatments md-scale Plus Decorative wall 3D, plus: Ultra -Luxury, 4D, Plus: material and are modestly treatments, such At least one Wall finishes are of design, such as: enhanced, such as: drywall with significant upscale the highest grade cinder block with a as: drywall with textured and design materials; _ plain paint finish, basic paint finish painted finish, enhancement, Accented with standard grade or plain vinyl decorative vinyl such as: accent multiple luxurious wood, prefab coverings; Rubber coverings, or wall(s), design modular laminate or vinyl select grade furniture -finish enhancements paneling, or baseboards wood/stone; wood paneling, wallpaper Chair rails and soft wall carpeted coverings, ceiling baseboards trim, architectural feature, wainscot, etc.; Wood baseboards - Climate controlled Climate controlled Climate controlled Climate controlled - Building structure Weather 2D, Plus: 3D, Plus: 4D, plus: and design Is basic appropriate Building structure Building Extraordinary with or dated in style (Provides and design is structure and unique protection and significantly design is architectural comfort with enhanced in form obviously features respectto and function upscale climatic with some elements); residential Building structure appointments, shows modest such as: enhancements to enhanced roofs, design and moldings, function via window roofing, windows, treatments, etc. siding, or some other architectural feature(s) Limited quantity Enhanced Various 313, plus: 4D, Plus: _ and variety of quantity, function, landscape Excellent variety of Elegant and landscaping; Basic and variety of features are mature plants; extensive variety design landscaping; well- Obviously of landscaping, Coordinated design coordinated for professionally with meticulous form, function, planned and attention to detail and seasonality; manicured in placement and An ample quantity care and variety of plants are integrated with buildings, walkways, parking lots, courtyards, gardens, etc. 55BA 9 Basic material and design, such as: drop tile, concrete, or standard grade wood Basic lighting fixtures that provide an adequate level of overall illumination Basic design in limited locations throughout the property PUBLIC AREAS Poster(s) or commercial artwork with thin, un -enhanced wood, metal, or plastic frame(s) Modest enhancements to material and design, such as: enhanced drop tile, painted drywall, popcorn finish, sand textured concrete, etc. Lighting fixtures are modestly enhanced in style, positioning, and function to provide a good level of overall illumination Modestly enhanced design in appropriately placed locations throughout the property Matted artwork (common or commercial) in enhanced frame(s) or other decorative appointments Predominant use of decorative elements to painted drywall, such as: an advanced textured finish (knockdown, orange peel, comb, slap brush, etc.) or select grade wood/stone 2D, plus: Lighting fixtures are decorative and well -coordinated for form and function 2D, plus: Decorative enhancements in design 559120 Variety of matted and framed or unframed canvas artwork (varied sizes and scenes) or other appointments that provide a distinctive or thematic upscale appeal 313, plus: One architectural or design feature, such as: treys, beams, medallions, vaulted/volume, murals/stencils, tin tiles or skylights, ceiling fans, special effect lighting, etc. 3D us: Lighting fixtures reflect upscale design and provide an excellent level of overall illumination 3D, plus: Upscale design in ample locations 4D, plus: Variety of styles and accent pieces, such as: limited edition prints, canvas art, tapestries, or lithographs with enhanced matting and preservation frames, assorted artisan pieces or sculptures, floral displays or plants 4113, plus: Multiple architectural or design features 413, plus: Custom lighting fixtures of outstanding quality provide a unique illumination effect 4D, plus: Custom design creatively placed for a unique effect 55B-21 PUBLIC AREAS 'TWO FOUR DIAMOND OIAVAOND DIAMOND . , Obviously Modest restrictions No restrictions, as upscaW Area size and ultra -Luxury Area size and restricted by size due to size and/or placement of placement of placement of and/or placement placement of appointments is appointments appointments of appointments; appointments; well-proportioned provide an obvious provide a free Basic counter Seating to area size; degree of flowing abundance registration with arrangement for Expanded seating spaciousness of space that limited or no one small group, arrangement allowing increased contributes to the seating capacity such as: a sofa accommodating ease of movement ultimate level of and two arm chairs two small groups; for many guests; comfort and Placement of Multiple relaxation for appointments is conversational many guests; well-proportioned groupings, Identifiable to area size and including one or concierge area traffic flow more privacy areas; Identifiable guest service area and bell stand If available, An increased level Decorative and 30, plus: 41). plus: predominantly of coordination; well -coordinated Modern or Luxurious, unique, basic materials, Modest for form and antique upscale and elegant such as: particle enhancements in function; Overall style and custom design and board, laminate, or materials, design, construction and materials, such workmanship vinyl finishes; and function; design reflects as: solid wood, Dated styles with Provides an current industry polished metals, limited enhanced level of trends, such as: leather, designer coordination; comfort Melamine resins, fabric, veneer Provides an solid wood trim, or finishes with adequate level of upgraded laminate solid wood comfort finishes; Provides accents, an obvious degree laminate insets, of comfort etc.; Provides an exceptional degree of comfort Ice machine(s) Multiple sealed 213, plus: 313. plus: Specialized service, available ice machines Located in a Conveniently delivery or in -room recessed area located and honor bar appropriately soundproofed Vending Basic hygiene Dedicated sundry Upscale gift shop Variety of first- machine(s) amenities, such area offering a class shops available as: variety of toothbrush/paste, merchandise, such razors, as: health and mouthwash, beauty needs, shower caps, food, beverage, combs, etc., and reading available at the materials front desk or in vending machine 55B-21 PUBLIC AREAS Personal computer, with Internet access, available in lobby for guests' use Elevator is available for guests' use in multi -story buildings Artificial or live plants in limited locations Dedicated open area (out of traffic pattern) with desk and chair, to include at least three business-related items, such as: PC, printer, copier, fax machine, supplies, etc. 2D, plus: Primarily dedicated to guests' use; Prompt response, quick moving, and spacious; Elevator includes decorative appointments; Landing includes a limited (four) amount of decorative furnishings, such as: tables, lamps, phone, artwork, chair, mirror, flowers, etc., and is recessed from the lobby and guestroom corridors Good variety of live plants or artificial floral arrangements used as appropriate for decorative accents throughout the property 55B1122 313, plus: Well-appointed, enclosed area; Multi -guest capability with comprehensive office supplies 3D, plus: Multiple elevators include upscale appointments; Landings include a variety of upscale furnishings (five), such as: sofa table, lamps/wall sconce, phone, artwork, chair, coffee table, mirror, flowers/plants, etc.; Additional service elevator is available for staff's use Abundant variety of live plants, silk, or dried floral arrangements used as appropriate to enhance an upscale theme throughout the property 413, plus: Luxurious surroundings include the latest business technology; Professionally staffed area 4D, plus: Elevator cabs have dual call button panels; landings are elegant with luxurious, unique, and artistic appointments Garden -fresh condition, outstanding variety of live plants and flowers that are uniquely arranged to provide a luxurious appeal throughout the property PUBLIC AREAS Limited (washer and dryer only) coin-operated laundry facilities Luggage carts available Private meeting room available; Basic audiovisual equipment available, such as projectors, microphones, television, sound system, etc. Expanded coin- operated laundry facilities, such as: multiple machines, vending supplies, folding table, etc. -or- valet laundry 2D, plus: Design enhancements, such as: solid construction, larger, smooth tracking wheels, and bumper guards Expanded meeting space with decorative appointments; Increased variety of audiovisual equipment available, such as: dropdown projector and screen, smart lectern, controlling lights and surround sound, multi- casting, wireless communication, etc.; Some conference services available, such as: planning assistance, catering, and most technology needs 55B®23 Valet laundry and pressing available 3D, plus: Upscale design enhancements, such as: brass or metal finish, carpeted base, and multiple hanging capabilities. Luggage assistance available upon request A variety of meeting rooms, such as: ballroom, boardroom, theatre, and/or meeting rooms of various sizes, with upscale appointments; All audiovisual equipment is state-of-the-art; Pull conference services available including on-site professional conference planner and technical support 4D, plus: Personalized services available, such as: one hour pressing, shoeshine, tailoring or alterations, etc. Luggage assistance upon arrival is automatic 4D, plus: Luxuriously appointed, first- class facilities; Custom conference services PUBLIC AREAS One full-service outlet or food court (comparable to a one diamond restaurant) onsite: OR I Standard continental breakfast (minimum: juice, pastry, and hot beverage)is served in a dedicated area with modest restrictions due to size and/or placement of appointments; Limited seating is available Pool area with a limited amount of furniture of basic or mixed styles; Property location determines seasonal availability 2D, plus: (comparable to a two diamond restaurant); Lounge or bar area Expanded continental breakfast, or more, is served in a dedicated area that is distinctly separate from the lobby traffic; Appointments are wel I -proportioned to area size, with appropriate seating for the size of the establishment; Television Weather appropriate pool (usable at least nine months annually); Area is well-appointed with a good variety of decorative, comfortable pool furniture; Hot tub or whirlpool spa 55BL24 Upscale, full- service restaurant (comparable to a three diamond restaurant); Separate lounge or bar area; Room service available for breakfast, lunch, and dinner 3D, plus: Pool area reflects the use of upscale building materials and design, with a variety of pool furniture; Hot tub or whirlpool spa, steam room, or sauna; Food and beverage service is available poolside 4D, plus: Multiple outlets (at least one is comparable to a four diamond restaurant); Room service available 24/7 4D, Plus: Pool area is of elegant design, with unique appointments, such as: sculptures, waterfalls/features, exotic plants and gardens, stone/tile surfaces with designer inlays, etc.; Outstanding variety of luxurious furniture; Cabanas; Full-time professional attendant is on duty 55®025 PUBLIC AREAS Dmm Full spa services Full spa onsite available - • , • Two pieces of 213, plus: 3D, plus: 4D, plus: equipment on site Three or more Five or more Ten or more pieces in a designated pieces of pieces of state-of- of equipment; room equipment; Room the-art Luxurious health is enhanced with equipment, club environment; atleastthree including cardio dressing area purposeful and weight includes: lockers, appointments, training showers, and such as: capability restrooms; Full- mirrored walls, time professional television, water attendant is on cooler, duty; In-room bathroom, exercise equipment towels, clock, available scales, etc. Multiple 3D, plus: 413us: facilities/ Arrangements First-class programs onsite; are made for off- facilities/ Some with off- site services programs with site privileges custom concierge services provided One unisex Separate gender 313, plus: 4D, plus: restrooms in a Upscale First-class with convenient appointments luxurious location (If appointments property has expanded meeting facilities, then additional restrooms are available in proportion) 55®025 GLOSSARY: ► Climate controlled —;Heat, ventilation and/or air conditioning and cooling. _ neFnA of the Hoch eNrnnn nn fha: ofrerfe of-Innn Mce n"r wPar iihfachlnnnhlP -- ► Residential' ---Of, orrelating.to,_or connected with, resdentlal.style{ lnvoKes a personal presence of norne. Diamond Rating GuidelinesGuestroom 55'26 55B-27 GUESTROOM FOUP ,,,; - Economy Basic material, Mid -Scale Enhanced material, 2D, Plus: Upscale 3D, plus: 4D, plus: such as: linoleum such as: wood Wood laminates or High grade Custom inlays or or low density pile laminates and carpet with wood, marble, textured carpet with vinyl, or medium enhanced granite, or other enhancements that padding that density pile design, such as: upscale stone provide an overall provides little or no carpet with patterns, floors, or high design that is comfort underfoot padding that textures, or density pile obviously elegant (floor feels hard) provides average inlays; Decorative carpet with and unique; Area comfort tile (ceramic, padding that rugs are luxurious underfoot stone, concrete, provides and unique terra cotta, etc.); exceptional Hard surfaced comfort floors have underfoot decorative area rugs as appropriate - Basic material and Wall treatments Decorative wall 3D, Plus: 4D, Plus: design, such as: are modestly treatments, such At least one Wall finishes are of cinder block with a enhanced, such as: drywall with significant upscale the highest grade plain paint finish, as: drywall with textured and design materials; standard grade basic paint finish painted finish, enhancement, Accented with wood, prefab or plain vinyl decorative vinyl such as: accent multiple luxurious modular laminate coverings; Rubber coverings, or wall(s), design paneling, or or vinyl select grade furniture -finish enhancements wallpaper baseboards wood/stone; wood paneling, Carpeted soft wall baseboards coverings, ceiling trim, architectural feature, wainscot, chair rails, etc.; Wood baseboards Poster(s) or Matted and framed Variety of 4D, Plus: commercial artwork (common matted and Variety of styles artwork with thin, or commercial) in framed artwork and accent pieces, un -enhanced enhanced frame(s) (varied sizes and such as: limited wood, metal, or or other decorative scenes) or other edition prints, plastic frame(s) appointments appointments canvas art, that provide a tapestries, or distinctive or lithographs with thematic upscale enhanced matting appeal and preservation frames., assorted artisan pieces or sculptures, floral displays or plants 55B-27 Basic material and design, such as: drop tile, concrete, or standard grade wood Basic drapes, blinds, or shades offering limited blackout effect from the sun or outside light sources No headboard -or- headboard and mattress are of basic materials and plain design (vinyl flat top); Box spring or bed base Bed coverings are of basic style; Bed linens are of common blends and thread counts (sheer, coarse to touch); Pillows are of a standard grade (thin Polyester batting) Modest enhancements to material and design, such as: enhanced drop tile, painted drywall, popcorn finish, sand textured concrete, etc. ID, plus: Full blackout effect Headboard and mattress are of modestly enhanced material and design (quilted, soft top); Box spring or bed base Bed coverings are quilted or modestly enhancedin style; Bed linens are of average (180-250) thread count, closely woven and smooth to touch; Pillows are of an enhanced grade (thick Cluster Fiber) )OM Predominant use of decorative enhancements to painted drywall, such as: an advanced textured finish (knockdown, orange peel, comb, slap brush, etc.) or select grade wood/stone 2D. plus: Two design enhancements, such as: blinds, shutters, sheers, fabric side panels, valance, glass treatment, cornice, etc., provides a professional design effect 2D, plus: Decorative headboard 2D, Plus: Two accent features, such as: comforter, duvet, dust ruffles, bed throw/scarf, multiple pillows, accent pillows/ shams or triple sheeting 558928 3D, plus: One architectural or design feature, such as: treys, beams, medallions, vaulted/volume, murals/stencils, tin tiles or skylights, ceiling fans, special effect lighting, etc. 3D, plus: Three or more design enhancements Upscale headboard,bed base and mattress which includes a comfort enhancement, such as: pillow top, memory foam padding, adjustable comfort level, etc. Bed coverings include three or more accent features (see 3D); Bed linens are of increased thread count (>250), tightly woven, crisp, and very soft to the touch; Pillows are of an upscale grade, such as: down or feather 4D, plus: Multiple architectural or design features 4D, plus: Elaborate, luxurious, and unique visual effect 4D, plus: Elaborate, luxurious, and unique visual appeal 4D. plus: >_ 300 thread count bed linens (Egyptian cotton, satin, silk or similar) provide a super soft, silk -like feel; Choice of pillow fills, such as: silk, wool, cashmere, premium foams, latex or goose down, etc., is provided 55B=29 GUESTROOM TWO ,, ,. - Open wall- Mid-scale Semi-enclosed Mid-Scale Plus Fully-enclosed upscale 313. plus: Ultra-Lu xu!j 413. plus: mounted clothes area with with at least six At least eight At least ten rack with simple detachable wood, open-hook wood hangers hangers (two of wire or non- plastic, or heavy or heavy gauge, which are satin or detachable metal hangers sculptured similar); One or hangers plastic matching more designer hangers; Some features, such as: with skirt or pant drawers, shelves, hanging shoe rack, walk-in attachments; capability, etc.; Closet depth is Closet is 22 inches ( at illuminated minimum) and can enclose full length apparel Open clothes Multiple 213, plus: 313, plus: 413, plus: storage space enclosed Sufficient space for Sufficient space Total storage space drawers; Total one piece of for two pieces of can accommodate storage space luggage, such as: luggage the needs of four can folding metal rack, (upgraded or more guests accommodate bench, or credenza wooden racks or the needs of two top designer-style or more guests benches); Total storage space can accommodate the needs of three or more guests Two or more well- Three or more Four or more 3D. plus: 4D. plus: ° positioned basic lighting fixtures; well-positioned Predominantly Custom lighting lighting fixtures; Modestly enhanced lighting fixtures; freestanding fixtures of Provide an in style, Decorative and fixtures of upscale outstanding adequate level of positioning, and well-coordinated design; Provide an quality; Custom overall illumination function; Provide a for form and excellent level of function(s), such good level of function; Provide a overall illumination as: dimmers, point overall illumination good level of lighting, multiple overall illumination switches, and/or at each location natural light sources; Provide a unique illumination effect Predominantly 1D, Plus: Predominantly 3D, Plus: 413, plus: basic materials, An increased level freestanding; Modern or Luxurious, unique, such as: particle of coordination; Decorative and antique upscale and elegant board, Modest well-coordinated style and custom design and pressboard, enhancements in for form and materials, such workmanship laminate, or materials, design, function; Overall as: solid wood, vinyl finishes; and function; construction and polished metals, Dated styles with Provides an design reflects leather, designer limited enhanced level of current industry fabric, veneer coordination; comfort trends, such as: finishes with Provides an Melamine resins, solid wood adequate level of solid wood trim, or accents, comfort upgraded laminate laminate insets, finishes; Provides etc.; Provides an an obvious degree exceptional of comfort degree of comfort 55B=29 One chair (typically placed as part of a duplex, triplex, or task table) Duplex, triplex, or small task table that provides adequate work space (e.g., enough space for a laptop computer and an 8x10 inch reference material item) Heat and/or air conditioning available on a seasonal basis as needed; Window style air- conditioning units Touch-tone telephone GU 1D, Plus: Additional seating for one guest; Vinyl or fabric upholstery Desk or medium task table that provides good work space (e.g., enough space for a laptop computer and two 8x10 inch reference material items) 1D, plus: Conveniently located through - wall units 1D, plus: Message light on telephone Comfortable seating for two guests - to include desk chair with arms and partial upholstery, such as: vinyl, leather, or fabric; Plus one additional fully upholstered easy/lounge chair that is positioned for television viewing Desk or large task table that provides very good work space (e.g., enough space for a laptop computer and three 8x10 inch reference material items); One electrical outlet (not in use) conveniently placed at the desk 2D, plus: Heat and air conditioning available on demand; Modern, quiet, with easily accessible controls in each guestroom 213, Plus: Voice messaging 555130 313, plus: Comfortable seating for three guests; Upscale materials and design in an expanded setting, such as: a loveseat, sofa, or oversized chair with ottoman Large desk that provides ample work space (e.g., enough space for a laptop computer, three 8x10 inch reference material items, and a portable printer); Multiple electrical outlets (not in use) conveniently placed at the desk Heat and air conditioning available on demand; Central system with thermostat control 3D, plus: Multiple telephones; Two- line telephone or separate Internet capability 4D, plus: Luxurious materials and design; Additional furniture pieces, such as: end tables, coffee or occasional tables 413, plus: Desktop enhancements, such as: desk blotter, pull-out writing surface, stationery, and other office supplies 413, plus: Digital thermostat control 4D, plus: Cordless telephone; Expanded phone features, such as: pre-programmed dialing keys, speaker capability, personalized display or voicemail GUESTROOM one FOUR 777 kiii DIAMONDTHREE DIAMOND , DIAMOND Economy Mid -Scale Plus Upscale Ultra -Luxury Dial-up capability rffigh�-splccesseed aHigh-speed cable High-speed 4D. plus: r wireless) access available in wireless access Available in some e in some all rooms available in all public areas of the rooms rooms property - Standard CRT TV 1D. plus: 2D, plus: 3D, plus: 4D. plus: (curved screen); Standard CRT TV >_ 25 inch screens z 25 inch Flat Custom, decorative Wall -mounted; (curved screen) with portable full Screen CRT or enhancement Limited viewing with remote function remote Flat Panel TV (e.g., framing, angles; Basic control; Located control; With (such as: LCD, mantle placement, cable on credenza, swivel/pull-out Plasma, SED, remote enclosure, ` dresser, or other base; Multiple etc.); Located on mirrored screen, ® . furniture piece viewing angles; credenza, etc.); High- t' . without a swivel Multiple dresser, or on/in definition channels base; Limited televisions in other furniture available viewing angles; suites; Expanded piece with a _ ° Channel Cable channel swivel/pull-out directory selection (at base or wall least 35 mounted; Cables channels); Plus and cords are one additional hidden from view feature, such as: free movie channel, pay- per-view movie channels, video games, etc. - - , Clock Standard clock 2D, plus: 3D, plus: 4D, plus: radio Decorative Digital display CD player with at design least one CD selection; MP3 docking station; Surround sound audio DVD player (in lieu DVD Player; DVD of pay -per- view library available movies) 55B-31 Local telephone directory Basic ice bucket (polystyrene foam, plastic, cardboard, etc.) with disposable cups GUESTROOM 1D, plus: Local Business flyers (food, attractions, transportation, etc.); Notepad and pencil Plastic ice bucket with lid and disposable cups Iron & board available Full-length mirror 2D, plus: Guest -service directory; Complimentary daily newspaper available; Notepad and pen Insulated plastic ice bucket with lid and disposable cups Full-size iron and board Refrigerator available Microwave oven available Extra pillows and blankets available In -room safe Coffee maker and supplies, including tea bags Framed or beveled full- length mirror 55332 3D, plus: Enhanced guest - service directory in folder, binder, or digital format; Complimentary daily newspaper delivered to room; Additional reading materials, such as: magazines, books, etc.; Upgraded stationery package (envelopes, postcards, writing paper) Ice bucket with lid of upscale design, such as: insulated and padded vinyl, acrylic or metal; Glass tumblers 3D, plus: In -room snacks, mini bar, or a refrigerator that can be custom stocked upon request In -room safe thatislarge enough for a standard 12" laptop computer 4D, plus: Uniquely appointed guest -service directory in folder, binder or digital format; In -room comfort menu providing exercise, spa, butler, or other personalized services; Assortment of complimentary daily newspapers available for delivery to room Ice bucket of luxurious design, such as: designer glass, silver, brushed or glossy metal finish, rings or handles, etc.; Selection of glassware; Ice tongs 4D, plus: Two robes; Two pairs of slippers Umbrella In -room comfort menu providing exercise, spa, butler, or other personalized services I Obviously restricted by size and/or placement of appointments; however, provides guest an adequate level of comfort Basic material, such as: linoleum, painted concrete, plain resin, or poured composite surface BATH ROOM Modest restrictions due to size and/or placement of appointments Vinyl or ceramic tile No restrictions, as placement of appointments is well-proportioned to room size Decorative tile (ceramic, stone, concrete, terra cotta, etc.) 553-33 Room size and placement of appointments provide an obvious degree of spaciousness, allowing increased ease of movement for multiple guests Marble, granite, or other upscale stone floors; Area rug(s) as appropriate Room size and placement of appointments provide a free flowing abundance of space that contributes to the ultimate level of comfort and relaxation for multiple guests 4D, plus: Custom inlays or textured enhancements provide an overall design that is obviously elegant and unique Basic material and design, such as: cinder block with a plain paint finish, standard grade wood, prefab modular laminate paneling, dated ceramic tile or wallpaper Basic material and design, such as: drop tile, concrete, or standard grade wood BATHROOM Wall treatments are modestly enhanced, such as: drywall with basic paint finish or plain vinyl coverings; Rubber, vinyl, or ceramic tile baseboards Modest enhancements to material and design, such as: enhanced drop tile, painted drywall, popcorn finish, sand textured concrete, etc. Decorative wall treatments, such as: drywall with textured and painted finish, decorative vinyl coverings, or select grade wood/stone; Wood or decorative ceramic tile baseboards Predominant use of decorative enhancements to painted drywall, such as: an advanced textured finish (knockdown, orange peel, comb, slap brush, etc.) or select grade wood/stone 55534 3D, plus: At least one significant upscale design enhancement, such as: accent wall(s), furniture -finish wood paneling, soft wall coverings, ceiling trim, architectural feature, wainscot, etc.; Wood or high- end stone baseboards Matted and framed artwork or other appointments that provide a distinctive or thematic upscale appeal 3D, Plus: one architectural or design feature,. such as: treys, beams, moldings, medallions, raised/vaulted/ volume, murals/stencils, tin or skylights, ceiling fans, special effect lighting, etc. 4D, Plus: Wall finishes are of the highest grade materials; Accented with multiple luxurious design enhancements 4D, plus: Variety of styles and accent pieces, such as: limited edition prints, canvas art, tapestries, or lithographs with enhanced matting and preservation frames, assorted artisan pieces or sculptures, floral displays or plants 4D, plus: Multiple architectural or design features 55E�=35 BATHROOM FOUR DIA140HO r ,. ,t l r r t r 1111AMOND EconomV Basic 113. Plus: 2D, plus: Upscale Enhancements to 4D, Plus: rectangular Modest design Decoratively size (>4+/2 ft. Obvious style, size (4+/2 enhancement enhanced in length and enhancements In ft. length and design, or >14 in. depth), comfort, design, 14 in. depth) and augmented for design, and/or function, and/or materials comfort or function style, such as: material, such as: (fiberglass, oval, round, or larger, two person acrylic, or free form capability, porcelain on .contoured backs, steel); Simple built-in lumbar design (straight back support, sided) water jets, enamel -coated cast iron, natural marble, stone, or other designer features If separate from 113. Plus: If separate from If separate from 4D, Plus: tub (or shower If separate from tub (or shower tub (or shower Separate shower only), base is of tub (or shower only), base is only), base is of stall in addition to basic material only), base is of decorative ceramic upscale material, the tub; base is of (metal or enhanced material tile, cultured such as: marble, outstanding fiberglass) and of (acrylic or ceramic marble/granite, or granite, stone, or material and plain design tile) poured acrylic porcelain tiles. artistic design, such as: marble, Basic square size Modest Very good size Oversized granite, stone, or (59 sq. ft.) enhancement to (>9 sq. ft.) (>12 sq. ft.) porcelain tiles with design -or- complementary irregular shape - inlays or (rectangular, treatments rounded corner or neo angle) Fiberglass or metal Acrylic or ceramic Acrylic with Marble, granite, 4D, plus: tile enhancements for stone, or porcelain Luxurious material comfort, style, or tiles; Enhanced and artistic design, function -or- solid surface; Tub such as: marble, decorative ceramic and shower granite, stone, or tile or other solid height soap porcelain tiles with surface, such as: dishes complementary cultured inlays or marble/granite, treatments; poured acrylic, Seating is etc.) integrated into design Lightweight vinyl Heavyweight vinyl Decorative vinyl, 313, plus: 4D. Plus: q , , curtain curtain or plexi- polyester, or nylon Double curtains Fixed door glass door with curtains with -or- heavyweight enclosure (framed aluminum frame curved shower rod; glass door or frameless); -or- lightweight with/without metal Enhanced (etched, glass door with frame frosted, embossed, aluminum frame; tinted, etc.) glass -or- effective door -less design 55E�=35 BATHROOM Traditional, single Multiple setting function shower shower head head Two-piece, I 1D, plus: round; Basic style I Enhanced style Combined with toilet area within an enclosed space that is restricted by size and/or placement of appointments Wall -mounted, basic style, porcelain SD, plus: Modest restrictions due to size and/or placement of appointments OR If vanity area is separate from the toilet area, it is positioned in plain view of the guestroom Standard self - rimming porcelain or porcelain on steel Multiple setting shower head with metal finish Two-piece, elongated; Basic style 213, plus: No restrictions, as placement of appointments are well-proportioned to room size OR If vanity area is separate from the toilet area, it is positioned in restricted view from the rest of the guestroom Seamless (Poured acrylic or cultured marble/granite/ quartz) -or- Under-mounted porcelain or porcelain on steel 55B2736 Enhanced style, of modern design, fixed shower head 3D, plus: Enhanced style or function 313, plus: Vanity is well - integrated into the overall scheme of the bathroom for convenience and comfort; Room size and placement of appointments provide an obvious degree of spaciousness, allowing increased ease of movement for multiple guests Porcelain or porcelain on steel, with an upscale counter enhancement, such as: wall faucets or upscale counter - mounted faucets Custom water features, such as: body jets, hand- held sprayers, multiple shower heads, rain showers, or gentle flow environmentally friendly features 4D, plus: Distinct toilet -only area; Enclosed or semi -enclosed 4113, plus: Room size and placement of appointments provide a free flowing abundance of space that contributes to the ultimate level of comfort and relaxation for multiple guests 413, plus: Multiple sinks of ornate design, such as: above counter vessel or pedestal -or- of designer materials, such as: glass, stainless steel, vitreous china, enameled cast iron, fireclay, brass, nickel, copper, marble, or either real/synthetic stone 55B-37 BATHROOM , 110U. FM DIAMOND ,, DIAMOND DIAMOND Economv Small size (<2 sq. mid -Scale Moderate size 'Mid -Scale Plus Very good size Upscale Oversized ultra -Luxury 4D, plus: ft.) shelf of basic (>_ 2 sq. ft.) (>_4 sq, ft.) (>_ 6 sq. ft.) Multiple counters material, such as: laminate counter counter space of counter space of and/or shelves; glass, metal, or solid surface, such excellent quality, Artistic design, sheet laminate as: poured acrylic, such as: marble, such as: marble, cultured marble/ granite, or other granite, solid granite/quartz, or solid stone stone, or porcelain ceramic tile tiles with complementary inlays or treatments Small (11/2 ft. x Medium-sized 2D, plus: Large (3 ft. x 5 4D, plus: 2 ft.) mirror (>3 sq. ft.) Beveled or ft.) mirror with Artistic design mirror decoratively an upscale frame enhancement framed mirror Skirting partially Enhanced skirting Upscale, 413, plus: conceals plumbing conceals plumbing furniture- Elaborate design finished skirting features, cabinetry, multiple shelving, and/or drawers Basic design and Modest design Decorative, well- 3D, plus: 4D, plus: function, such as: enhancements, coordinated for Upscale design; Designer fixtures; bulb and cover; such as: box/egg form and Multiple Custom Provide an crate style or function; locations; function(s), such adequate level of enhanced glass Multiple bulbs Illuminated as: dimmers, point overall illumination cover; Provide a and covers shower; Provide lighting, multiple good level of provide a good an excellent level switches, and/or overall illumination level of overall of overall natural light illumination illumination at. sources; Provide a each location unique illumination effect e Standard SD, plus: 2D, plus: Upscale design 413, plus: function; Basic Modest design Metal with enhancements, Designer materials materials of plain enhancements decorative finishes, such as: satin or and style; Unique design such as: chrome, enamel finishes, appointments pewter, brass, two or more nickel, gold, etc. metal combinations, embossing, etc. a Basic, 1D, plus: Medium weight; Heavyweight; 4D, plus: lightweight; Modest Soft to touch; Plush to touch; Generous sized Rough to touch; enhancements in Medium Firm, self- towels or bath Limp feel; Low design; Displayed absorbency supporting feel; sheets; Luxurious absorbency; on bars and/or Premium cotton appearance, with Displayed on shelves with high intricate and caddies absorbency detailed enhancements to design 55B-37 Two small (< 3/4 oz.) bars of soap (or equivalent) Facial tissues BATHROOM Two medium (>_ 3/4 oz.) bars of soap (or equivalent); one packet or bottled item; modest presentation 1D, plus: Wall -mounted with chrome covers Four -piece personal care package, includes: one large (>_ 1'/4 oz.) and one medium (>_ 3/4oz.) bars of soap (or equivalent); two (>_ 3/4oz.) bottled items; Decorative presentation; Additional amenities (such as: toothpaste/ brush, comb, sewing kit, mouthwash, etc.) are available onsite Facial tissues inset in vanity (no chrome) Wall -mounted hair dryer Night -light 55938 3D, plus: Seven -piece personal care package; Toiletries are enhanced by fragrance, natural supplement, packaging, etc.; Includes: two large (>_ 11/4oz.) bars of soap (or equivalent), three (> 1 oz.) bottled items, and two additional items; Upscale presentation; Freestanding soap dish at sink Facial tissues freestanding in decorative container Freestanding hair dryer; Makeup mirror 313, plus: Landline or cordless telephone available 413, plus: Ten -piece personal care package of designer/spa toiletries; Ample sized (>_ 11/3oz.) bars of soap and bottled items (>_1+/4 oz.); Unique presentation 4D, plus: Custom designed container 413, plus: Illuminated makeup mirror; Scale; vanity seating 413, plus: Television These prestigious ratings are achieved by less than four percent of all Approved properties—typically the most luxurious and pampering properties throughout North America. Less than one third of one percent of lodgings receives the Five Diamond@ Rating while approximately three and one half percent receives the Four Diamond® Rating. Establishments must consistently reflect upscale and extraordinary characteristics (respectively) in both physical attributes and level of guest services. If the AAA inspector determines that your establishment meets our Four or Five Diamond Guidelines, the property will next be scheduled for an anonymous hospitality evaluation. Only the Four and Five Diamond evaluations incorporate a review of twelve critical service areas and measure over 300 guest interaction points into the overall rating. In addition, all Five Diamond Rating recommendations are forwarded to AAA's Five Diamond Committee for further review. Once the committee's assessment is concluded, the establishment will be advised in writing of the outcome. Four and Five Diamond ServiceExpectations IN ADDITION TO THE FOLLOWING GUEST SERVICE INTERACTION POINTS, each section is assessed a subjective point value based on the overall levels of competency, refinement, and hospitality. 1: Reservation Services e aD X Accepted 24 hours, either at property or through a central reservation system X Operator answers phone promptly within three rings X Operator provides a warm and sincere greeting X Reservationist thanks caller for contacting the property X Reservationist provides an introduction X Reservationist asks for caller's name Reservationist addresses caller by name prior to closing Reservationist anticipates caller's needs or offers a personalized recommendation X Reservationist provides rate structure and room availability X Reservationist provides an overview of facilities and services Reservationist exhibits competent knowledge of all associated facilities and hours of operation X Reservationist collects registration information X Reservationist explains deposit and cancellation policies X Reservationist explains unusual payment options X Reservationist reviews reservation request Reservationist exhibits a sincere desire and compliance to all guest requests X Reservationist provides confirmation number or contact's name Reservationist is efficient yet unhurried and sensitive to the manner of the guest X Reservationist provides a warm and sincere thank you to guest for calling Operator addresses guest by name during closing X The guest feels well served Property offers follow-up reservation confirmation to guest in advance of arrival r 2. Arrival Services 4D X Attendant provides a warm and sincere greeting; recognizes guest appropriately X Attendant inquires about guest's name Attendant addresses guest by name during initial greeting without inquiry Attendant uses guest's name at least once prior to closing Staff associate acknowledges with a warm and welcoming greeting) guests waiting in X Registered guests are not asked for duplicate information X Attendant confirms rate and type of room X Attendant provides room number discreetly Attendant places all registration materials into the guest's hand Attendant exhibits a sincere desire and compliance to all guest requests Attendant anticipates guest's needs or offers a personalized recommendation Attendant is efficient yet unhurried and sensitive to the manner of the guest X Attendant arranges escort of guest and belongings to room Attendant provides introduction to escort X Attendant provides a warm and sincere closing Attendant addresses guest by name during closing X The guest feels well served 55B3140 4D Cars in queue are acknowledged and directed as appropriate upon arrival X Uniformed attendant promptly opens the car door X Attendant provides a warm and sincere welcome greeting X Attendant makes a proper introduction X Attendant inquires about the guest's name Attendant uses guest's name at least once prior to closing.. X Attendant explains parking procedure Valet parking is automatic X Attendant promptly unloads luggage X Attendant explains luggage handling procedure X Attendant provides direction to registration area Attendant anticipates guest's needs or offers a personalized recommendation Attendant is efficient yet unhurried and sensitive to the manner of the guest Attendant exhibits a sincere desire and compliance to all guest requests Attendant escorts guest to appropriate area X Attendant provides a warm and sincere closing Attendant addresses guest by name during closing X The guest feels well served Lobby greeters are available to escort guest to appropriate area 3. Check In Services 4D X Attendant provides a warm and sincere greeting; recognizes guest appropriately X Attendant inquires about guest's name Attendant addresses guest by name during initial greeting without inquiry Attendant uses guest's name at least once prior to closing Staff associate acknowledges with a warm and welcoming greeting) guests waiting in X Registered guests are not asked for duplicate information X Attendant confirms rate and type of room X Attendant provides room number discreetly Attendant places all registration materials into the guest's hand Attendant exhibits a sincere desire and compliance to all guest requests Attendant anticipates guest's needs or offers a personalized recommendation Attendant is efficient yet unhurried and sensitive to the manner of the guest X Attendant arranges escort of guest and belongings to room Attendant provides introduction to escort X Attendant provides a warm and sincere closing Attendant addresses guest by name during closing X The guest feels well served 55B3140 4 7 Service Bell Services (Check In) Level s 4D X Escort provides a warm and sincere greeting Escort uses guest's name at least once prior to closing X Escort Is able to provide information about facilities when asked Escort takes the initiative in providing information about all facilities Escort anticipates guest's needs or offers a personal recommendation Escort exhibits a sincere desire and compliance to all guest requests X Escort places luggage on luggage stand or in appropriate area X Escort explains features and functions of room X Escort offers to fill ice bucket X Escort is efficient yet unhurried and sensitive to the manner of the guest X Escort provides a warm and sincere closing Escort addresses guest by name during closing X The guest feels well served 5. Evening Housekeeping Services a 4D Evening housekeeping service is automatic Attendant folds back or removes bedspread Attendant turns up pillows Attendant straightens bathroom Attendant re -points tissues Attendant cleans soiled surfaces Attendant replaces or straightens (Green Program) used towels Attendant replenishes used amenities Attendant empties wastebasket Attendant adjusts drapes Attendant adjusts room lighting Attendant delivers gift amenity, such as: goodnight wish, chocolates, etc. Attendant refreshes ice Attendant replaces used glasses Attendant displays evening services, such as: robe on bed, laundry, shoeshine, etc. Attendant leaves personalized message for guest There is additional evidence of personalized services 55=41 6. Wake -Up `Call , Services 4D X Some type of service is available 24/7; Alarm clock or alternative method is hones in room X Service number is answered within three rings X Operator provides a warm and sincere greeting Operator uses guest's name at least once prior to closing x Operator asks appropriate questions and replies in a professional manner Operator anticipates guest's needs or offers a personalized recommendation Operator is efficient yet unhurried and sensitive to the manner of the guest X Operator provides a warm and sincere closing Operator addresses guest by name during closing X Call is received within five minutes of requested time X Call is an automated message Call is a live message X Message includes a warm and sincere greeting Message includes the use of guest's name Message includes time of call Message includes other pertinent information, such as weather Operator anticipates guest's needs or offers a personalized recommendation Operator is efficient yet unhurried and sensitive to the manner of the guest Operator provides a warm and sincere closing Operator addresses guest by name during closing X The guest feels well served There is additional evidence of personalized services 7A. Room Service (Order Services) 4D X Service is available at limited hours Service is available 24/7 X Service number is answered within three rings X Operator provides a warm and sincere greeting Operator uses guest's name at least once prior to closing Operator exhibits a sincere desire and compliance to all guest requests Operator anticipates guest's needs or offers a personalized recommendation X Operator asks appropriate questions and replies in a professional manner X Operator repeats order to guest Operator is efficient yet unhurried and sensitive to the manner of the guest X Operator provides time estimate for delivery(within 30 minutes) X Operator provides a warm and sincere closing Operator addresses guest by name during closing X Operator calls to advise guest if order will be late or if items ordered are not 559242 are no 558=43 X I The guest feels well served X Special express services are available for breakfast orders Evidence of personalized services exists 7B. Room Service (Delivery Services) m 4D X Delivered within five minutes of time promised X Morning newspaper is presented with breakfast X Attendant provides a warm and sincere greeting Attendant uses guest's name at least once prior to closing Attendant exhibits a sincere desire and compliance to all guest requests Attendant anticipates guest's needs or provides a personalized recommendation X Attendant provides a suggestion as to tray/table placement Attendant is conversant during set-up and delivery X Attendant reviews guest order X Attendant prepares table set up and removes food covers, with guest permission X Food presentation and quality of ingredients reflects an upscale experience X All appropriate dishware and linens are of an upscale quality X All food is served at the proper temperature (hot food hot and cold food cold) X All food is prepared as ordered There is additional evidence of personalized services X Attendant offers to pour beverage X Attendant provides written or verbal direction for table/tray removal Attendant is efficient yet unhurried and sensitive to the manner of the guest X Attendant provides a warm and sincere closing Attendant addresses guest by name during closing X The guest feels well served X Prompt (within 15 minutes) removal of trays/tables,upon request S. Bell Services (Check Out) + 4D X Service number is answered within three rings X Operator provides a warm and sincere greeting Operator uses guest's name at least once prior to closing Operator exhibits a sincere desire and compliance to all guest requests Operator anticipates guest's needs or offers a personalized recommendation X Operator offers to retrieve car or arrange other transportation Operator is efficient yet unhurried and sensitive to the manner of the guest X Operator provides a warm and sincere closing Operator addresses guest by name during closing X The guest feels well served X Bell staff arrives promptly; If not within five minutes, guest is notified of delay at time of request X Bell staff provides a warm and sincere greeting 558=43 uxBell staff uses guest's name at least once prior to closing Bell staff exhibits a sincere desire and compliance to all guest requests Bell staff anticipates guest's needs or offers a personalized recommendation Bell staff inquires about guest's stay Bell staff is appropriately conversant with guest while providing assistance Bell staff is efficient yet unhurried and sensitive to the manner of the guest Bell staff provides a warm and sincere closing Bell staff addresses guest by name during closing The guest feels well served 9. Check Out Services _ir Guest's vehicle is waiting or comfortable accommodations are provided X Guest does not wait more than five minutes for pre -arranged transportati X Attendant provides a warm and sincere greeting Attendant uses guest's name at least once prior to closing Attendant anticipates guest's needs or offers a personalized recommendai Attendant is conversant pertaining to the guest's stay Attendant reviews all of guest's belongings and their placement in vehicle X Attendant opens and closes door for guest(s) Attendant is efficient yet unhurried and sensitive to the manner of the guest X Attendant provides a warm and sincere closing Attendant addresses guest by name during closing X The guest feels well served 559144 40 X Express check out services are available 24/7 X Attendant provides a warm and sincere greeting; recognizes guest appropriately Attendant addresses guest by name during initial greeting, and as appropriate thereafter Staff associate acknowledges guests (with a warm and welcoming greeting) guests waiting in line X Attendant inquires about guest stay Attendant exhibits a sincere desire and compliance to all guest requests Attendant provides a copy of bill for review in guest's hand X Attendant confirms payment method Attendant places check out folio into the guest's hand ,a Attendant expresses a warm and sincere thank you for staying at the property Attendant sincerely encourages guest to return Attendant anticipates guest's needs or offers a personalized recommendation Attendant is efficient yet unhurried and sensitive to the manner of the guest X Attendant provides a warm and sincere closing Attendant addresses guest by name during closing X The guest feels well served 10. Departure Services _ir Guest's vehicle is waiting or comfortable accommodations are provided X Guest does not wait more than five minutes for pre -arranged transportati X Attendant provides a warm and sincere greeting Attendant uses guest's name at least once prior to closing Attendant anticipates guest's needs or offers a personalized recommendai Attendant is conversant pertaining to the guest's stay Attendant reviews all of guest's belongings and their placement in vehicle X Attendant opens and closes door for guest(s) Attendant is efficient yet unhurried and sensitive to the manner of the guest X Attendant provides a warm and sincere closing Attendant addresses guest by name during closing X The guest feels well served 559144 11. Concierge Services aD X Concierge Is on duty with limited hours of availability Concierge is on duty, or a "special services" number is available for guests, 24/7 X Attendant provides a warm and sincere greeting Attendant uses guest's name at least once prior to closing Attendant exhibits a sincere desire and compliance to all guest requests Attendant anticipates guest's needs or offers a personalized recommendation X Attendant demonstrates a general knowledge of area attractions and services Attendant demonstrates an extensive knowledae of area attractions and services ,vrcenaam rwrnis guesc s special reques[(s) Attendant is efficient yet unhurried and sensitive to the manner of the guest X Attendant provides a warm and sincere closing Attendant addresses guest by name during closing it X The guest feels well served 12. Miscellaneous Staff Services aD All associates exhibit a professional vocabulary that is devoid of common slang Guests are graciously escorted to areas when directions are requested All associates consistently maintain eye contact with guests There is evidence that all associates are empowered by management to resolve guest issues immediately X All staff associates fulfill guest's special request(s) All phone calls are answered promptly within three rings X All associates are appropriately attired; name tags are clearly visi X All associates demonstrate appropriate behavior Short -notice pressing is available Shoe shine service is available X Accurate pre-programmed phones X Miscellaneous charges are billed directly to the guest room Butler services are available for all rooms X At least one food and beverage outlet is comparable to a Three Diamond rating At least one food and beverage outlet is comparable to a Four Diamond rating At least one food and beverage outlet is comparable to a Five Diamond rating 558=45 3 IF y HIM r s Y -y� 4 M � 7 Y Y $ y ol v s, v5B-46 The Listing ONCE A PROPERTY IS APPROVED, AAA PUBLISHING ESTABLISHES THE CONTENT AND FORMAT OF EACH LISTING IN ALL OF OUR PUBLICATIONS. The listing is provided at no cost to the establishment and does not contain advertising or promotional verbiage provided by the operator. The listing copy describing the lodging is based in part on objective information provided by the establishment. This listing information is updated annually, and your establishment will be contacted either in person, by mail, or via the telephone. Failure to provide this information in a timely manner may result in the deletion of your establishment from our publications. Additionally, AAA's professionally trained inspectors enhance our inventory with descriptive prose for each establishment. This skilled degree of subjectivity enables us to capture the feel of an experience and pass along this valuable information to AAA members. Each Diamond Rated property has the opportunity to participate in the AAA Official Appointment Program, entitling the establishment to use the renowned AAA (CAA in Canada) emblem and Diamond Rating in its advertising and promotions. This program also entitles the establishment to an enhanced listing in AAA publications. Personalized display advertising in AAA publications is also available. FYI Designation This designation means that property has not been Diamond Rated by a AAA inspector, but is of notable significance and potential member value. The property is unrated due to one of the following reasons: • The property is too new to rate. • The property is under construction. • The property is undergoing extensive renovations. The property has not been evaluated. • The property does not meet all Diamond Rating requirements. ALL DIAMOND RATED LODGINGS ARE CLASSIFIED USING KEY DESCRIPTIVE ELEMENTS. FIRST, ALL LODGINGS ARE CLASSIFIED BY STYLE OF OPERATION: Bed and Breakfast: Typically smaller scale properties emphasizing a high degree of personal touches that provide guests an "at home" feeling. Guest units tend to be individually decorated. Rooms may not include some modern amenities such as televisions and telephones, and may have a shared bathroom. Usually owner operated with a common room or parlor separate from the innkeeper's living quarters, where guests and operators can interact during evening and breakfast hours. Evening office closures are normal. A continental or full, hot breakfast is served and is included in the room rate. 558=47 Cabin: Vacation -oriented, typically smaller scale, freestanding units of simple construction—roughly finished logs or stone—and basic design or decor. Often located in wooded, rural, or waterfront locations. As a rule, basic cleaning supplies, kitchen utensils, and complete bed and bath linens are supplied. The guest registration, area may be located off site. Condominium: Vacation-oriented—commonly for extended -stay purposes—apartment-style accommodations of varying designor decor. Routinely available for rent through a management company, units often contain one or more bedrooms, a living room, full kitchen, and an eating area. Studio -type models combine the sleeping and living areas into one room. As a rule, basic cleaning supplies, kitchen utensils, and complete bed and bath linens are supplied The guest registration area may be located off site, Cottage: Vacation -oriented, typically smaller scale, freestanding units with home style enhancements in architectural design and interior decor. 'Often located in wooded, rural, or waterfront locations. Units may vary in design and decor, As a rule; basic cleaning supplies, kitchen utensils, and complete bed and bath linens are supplied. The guest registration area may be located off site. Country Inn: Although similar in definition to a bed and breakfast, country inns are usually larger in scale with spacious public areas and offer a dining facility that serves—at a minimum -breakfast and dinner. Hotel: Commonly, a multistory establishment with interior room entrances offering a variety of guest unit styles. The magnitude of the public' areas is determined by the overall theme, location and service level, but may include a variety of facilities such as a restaurant, shops, fitness center, spa, business center, and/or meeting rooms, Motel: Commonly; a one -or two-story establishment with exterior room entrances and drive up parking. Typically; guest units have one bedroom with a bathroom of similar decor and design. Public areas and facilities are often limited in size and/or availability. Ranch: Typically working ranch with an obvious rustic, Western theme featuring equestrian -related activities and a variety of guest unit styles. Vacation, Rental House: Vacation-oriented—commonly for extended -stay purposes—typically larger scale, freestanding, and of varying design or decor. Routinely available for rent through a management company, houses often contain two or more bedrooms, a living room, full kitchen, dining room, and multiple bathrooms. As a rule, basic cleaning supplies, kitchen utensils, and complete bed and bath linens are supplied. The guest registration area may be located off site. SECOND, A DETERMINATION IS MADE PERTAINING TO OVERALL CONCEPT - AND (IF APPLICABLE), A LODGING MAY BE FURTHER DEFINED AS: Boutique: Often thematic and typically an informal, yet highly personalized experience; may have a luxurious or quirky style which is fashionable or unique. Classic: Renowned and landmark properties, older than 50 years, well known for their unique style and ambiance. Casino: Extensive gambling facilities are available, such as: blackjack, craps; keno, and slot machines. Contemporary: Overall design and theme reflects characteristics of the present era's mainstream tastes and style Extended Stay: Offers a predominance of long-term accommodations with a designated full-service kitchen area within each unit. Historic: These properties are typically over 75 years of age and 'exhibit many features of a historic nature with respect to architecture, design, furnishings, public record, or acclaim. Properties must meet one of the following criteria: • Maintained the integrity of the historical nature • Listed on the National Register of Historic Places • National Historic Landmark or located in a National Register Historic District Resort: Recreation -oriented, geared to vacation travelers seeking a specific destination experience. Travel packages, meal plans, theme entertainment, and social and recreational programs are typically available. Recreational facilities are extensive and may include spa treatments; golf, tennis, skiing, fishing, or water sports. Larger resorts may, offer a variety of guest accommodations. Retro: Overall design and theme reflects a contemporary design reinterpreting styles from abygone era. Vacation Rental Typically houses, condos, cottages or cabins; these properties are a "home away from home" offering more room and greater value for the money. In general; they provide the conveniences of home, such as full kitchens and washers/dryers. Located in resort or popular destination areas within close proximity to major points of interests, attractions, or recreation areas, theseproperties may require pre -arranged reservation and check-in at an off-site location. Housekeeping services may be limited or not included. Vintage: Offers a window to the past and provides an experience reflecting a predominance of traits associated with the era of their origin. Accessibility Accessible Features: This property has some accessible features. It may be fully accessible, semi - accessible, or meet some of the needs of hearing-impaired individuals. Accessibility is not a requirement for listing and will not affect your Diamond Rating. However, we strongly encourage you to make every effort to meet the needs of all your guests - including the mature traveler and those with disabilities. Member Comment Procedures AAA CLOSELY MONITORS THE NUMBER AND TYPE OF COMMENTS WE RECEIVE FROM MEMBERS REGARDING ALL APPROVED PROPERTIES. When members write to us expressing dissatisfaction with a particular lodging, it is tracked through the AAA National Office Member Relations department. All complaints are carefully reviewed for validity. The establishment is then notified of each complaint so they have an opportunity to respond and resolve the matter within a reasonable period of time. Even though a complaint may be satisfactorily resolved, the complaint becomes a permanent part of the establishment's record. If a member complaint is determined to be of an extreme nature, an establishment may be disapproved immediately and without warning. This action is at AAA's sole discretion. If a property has been disapproved for excessive member complaints, a written request for a reevaluation may be submitted, accompanied by an explanation of the actions taken to lirnit future complaints. Note: Such properties may not reapply until one year has passed from the date of disapproval. All requests may be addressed to: AAA Tourism Information Development 1000 AAA Drive Mail Stop 51 Heathrow, FL 32746-5063 56Bw-49 The AAA Appeals Process THE APPEALS PROCESS WAS ESTABLISHED AS A RESOURCE FOR ALL RESTAURANTS, LODGINGS, CAMPGROUNDS, AND ATTRACTIONS EVALUATED BY AAA. What can I appeal? Our relationships with lodging establishments are very important to us and, therefore, each situation is handled on an individual basis via the following steps: How do I file an appeal? First, contact the AAA Customer Service Center, Monday through Friday, from 8:30am to 5:15pm (Eastern Time) at 407-444-8370. In many cases, our analysts will be able to answer your concern immediately. If resolution is not obtained, your call will be directed to the AAA Regional Manager for your area. If an issue remains unresolved after the above steps, an establishment is asked to state its concerns in writing for review by the AAA Appeals Committee. All appeals entertained by the committee must be in writing from the establishment only. In order to expedite this process, appeals should outline the specific concerns in a succinct manner. Each appeal is thoroughly researched and given thoughtful consideration and a substantive reply. All appeals should be sent to the attention of: AAA Appeals Committee 1000 AAA Drive Mail Stop 51 Heathrow, FL 32746-5063 Please note: The committee's decision on your appeal will be considered as AAA's final decision. You will be notified by mail as to the status of your appeal within 45 days of receipt of your written statement. Green Programs AAA SUPPORTS ENVIRONMENTAL MANAGEMENT AND SUSTAINABILITY THROUGHOUT THE LODGING INDUSTRY TO THE EXTENT THAT TRULY EFFECTIVE PROGRAMS MAINTAIN QUALITY STANDARDS OF GUEST COMFORT. We strongly encourage continued use of programs that offer guests choices without consequences for noncompliance. Effective green programs are intended to reduce waste without reducing guest comfort. 55-5250 Addresses and Phone Numbers If you have additional questions... b. Please call AAA at: (407) 444-8370 Evaluation Applications, Operations, Rating and Listing Information (407) 444-8280 Display Advertising &Official Appointments ► Visit us at www.AAA.biz/Approved Or, write to us at: AAA Tourism Information Development Mail Stop 51 1000 AAA Drive Heathrow, FL 32746-5063 Establishments located in Southern California should contact the following AAA club: Automobile Club of Southern California P.O. Box 25001 Santa Ana, CA 92799-5001 (714) 885-2247, option #2 Evaluations, Ratings, and Official Appointments (714) 885-2410 TourBook Advertising 55B=51 55B-52 EXHIBIT 2 ROH: 11/03/15 RESOLUTION NO, 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO ESTABLISH A HOTEL DEVELOPMENT INCENTIVE 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; Santa Ana's proximity to the Anaheim resort district, the John Wayne Airport, and local amenities like the Discovery Science Cube and the Bowers Museum makes it a perfect location to attract incoming tourists and visitors to Orange County. 2. New hotel development will be essential to creating jobs, expanding tax revenue, and adding amenities to the City. Currently, the City of Santa Ana does not have any four to five star rated or AAA Four Diamond or above hotels. The City does have nine three -star rated hotels. All other hotels/motels are rated from one to two -star. According to a study by hospitality research consultant PFK, the. average occupancy rate for Orange County hotels is 78.3%, indicating that there is still room for the development of new hotels in this area. 3. The City currently imposes an 11 % Hotel Visitors' Tax (HVT) on hotel and motel guests staying at facilities within the City. The purpose of this tax is to partially recover some costs of governmental services associated with visitors to the City. The anticipated revenue from the HVT for Fiscal Year 15/16 is $8.8 million dollars. 4. To spur the development of high quality hotels (four to five star rated or AAA Four Diamond or above), the City is proposing to offer an economic incentive to close the funding gap in a proposed high quality hotel development. A feasibility analysis would be completed for the project, whereby a projection of operating performance is combined with project development cost in order to determine the funding gap. A financial firm would be used for the feasibility analysis. This analysis would be funded by the developer. The City would pay for the funding gap through incentive payments up to a period of 10 to 15 years depending on each negotiated incentive agreement. The City would use a percentage (50%) of HVT generated by Resolution No. 2015- 55B-53 the new development to fund the gap payments. No upfront expenditures from the City would be required. Each individual incentive agreement would be subject to City Council approval. Section 2. Based upon the information provided herein and at the hearing on this matter, the City Council of the City of Santa Ana hereby establishes the Hotel Development Incentive Program as follows: 1. Definitions. For the provisions of this Resolution, the following definitions shall apply: a. Brand — the entity whose Flag is used to identify the Hotel. b. Executive Director — the Development Agency for designee. Executive Director of the Community the City of Santa Ana, or his/her C. Flag — the distinctive name of a Hotel that, by virtue of its distinctive name, is identified by specific physical and operational features so that guests are assured that they will receive a specified level of service and amenities wherever the property is located. d. Hotel — any building with rooms or suites intended for an uninterrupted stay of no more than twenty-eight consecutive calendar days by guests for compensation, which was not operational at the time of adoption of this Resolution, and provides physical features and operationalservices that meet or exceed, as determined by the Executive Director acting in.his/her sole and absolute discretion, a four to five star rating or criteria established for AAA Four Diamond or above Hotels by the American Automobile Association. e. Hotel Development Incentive Program — the program set forth in this Resolution to encourage and incentivize the development, construction and operation of Hotels. f. Hotel Visitor's Tax (HVT) Rate — The current rate of HVT, as applicable from time to time. The HVT Rate shall apply for the calculation of any and all Incentive Payments. 0 h, Resolution No. 2015 - Incentive Payments — the payments made by the City to an Owner pursuant to an Operating Covenant Agreement and described in Section 4 hereof. Open(s)(Ing)(ed) for Business or Opening — the day on which a Hotel opens for business to the general public. 55B-54 Operating Covenant Agreement(s) — the agreement(s) approved by the City Council described in Section 3 hereof. Operating Period — This will be negotiated in the Operating Covenant Agreement. k. Operator = franchisee, manager, lessee, or licensee with whom an Owner has a contract to operate the Hotel pursuant to a franchise, management, lease, or license arrangement. I. Owner — the person or entity that is the owner of a Hotel or a site upon which a Hotel is to be constructed, whether in the capacity of fee simple owner, lessee, sub -lessee, mortgagee in possession, licensee, franchisee, or any other capacity, or the assignee or designee of such Owner. M. Prevailing Wage Statutes -- Labor Code Section 1770, at seq. Site Control -- being the Owner of a site on which a Hotel is proposed. Temporary Closure — a period of time, no longer than reasonably necessary for repairs, reconstruction or resolution of maintenance issues, but in no event longer than two hundred (200) days. 2. Participation in the Hotel Development Inventive Program. An Owner that wishes to participate in the Hotel Development Inventive Program must first submit the following to the Executive Director: a. Evidence of Site Control; b. Description of development team, including, the development entity, the architect(s), interior designer, landscape architect, and other professional disciplines related to the construction and operation of the Hotel for the purposes of confirming that the project will be a Hotel when Opened for Business; c. Conceptual operating plan and design of the Hotel for the purpose of confirming that the project will be a four to five star rated or AAA Four Diamond or above Hotel when Opened for Business; and, d. Evidence of interest by a Brand, Flag, and Operator in operating a Hotel within the City. Resolution No. 2015- 55B-55 The Executive Director shall determine, acting in his/her sole and absolute discretion, the sufficiency of the submittals. 3. Operating Covenant Agreement. If, based on the information provided pursuant to Section 2 above, the Executive Director is satisfied that the Owner is likely to Open and operate a Hotel, then the Executive Director may further decide in his/her discretion to negotiate an Operating Covenant Agreement with the Owner. Any Operating Covenant Agreement that may be negotiated by the Executive Director shall be subject to consideration by, and shall not be effective unless approved by, the City Council. In considering a proposed Operating Covenant Agreement, the City Council may approve, deny or modify such proposed agreement acting in its sole and absolute discretion, following compliance with all required and applicable laws, including, but not limited to, Government Code Section 53083 and the California Environmental Quality Act. Nothing herein creates an obligation on the part of the City to negotiate and/or approve an Operating Covenant Agreement. The Operating Covenant Agreement will contain, among other items that the Executive Director may impose, the following: A recordable covenant by the Owner to operate and maintain the Hotel as a four to five star rated or AAA Four Diamond or above Hotel for not less than the Operating Period. b. An obligation on the part of the City to make Incentive Payments contingent upon compliance by the Owner with the Operating Covenant Agreement. c. An obligation on the part of the Owner to comply with the Prevailing Wage Statutes. d. An obligation on the part of the Owner to use good faith efforts to hire local residents and contract with local subcontractors, suppliers and other businesses. e. An obligation on the part of the Owner to ensure that all journeymen and apprentices comply with all State labor laws and that the workforce on site meet a specific ratio of apprenticeship program graduates and of OSHA certified workers, along with the presence of at least one site safety manager with OSHA 30 -hour certification. Resolution No. 2015- Indemnities by the Owner in favor of the City and related parties as to: i. the condition of the site; ii. litigation concerning entitlements and/or enforceability of the Operating Covenant Agreement; and iii. Prevailing Wage Statutes. 55B-56 g. Agreement, assumption of risk and waiver by the Owner that, if the Operating Covenant Agreement is approved by the City prior to consideration by the City of any land use, entering into the Operating Covenant Agreement does not commit the City to consider or undertake acts or activities requiring subsequent independent exercise of discretion, including, but not limited to, the approval of any development proposal, including a Hotel project, or fand use approval governing the site where the Hotel is proposed. The Owner shall agree that the City retains discretion on potential future actions to approve, deny, modify, and consider alternatives to a proposed project, as well as to impose adequate mitigation measures as may be required by the California Environmental Quality Act. h. A covenant and agreement by the Owner for itself, its successors, assigns or designees, that during the term of the Operating Covenant Agreement the business and any of its employees shall not discriminate against any person on the basis of sex, marital status, race, color, religion, ancestry, national origin, physical handicap, sexual orientation, or domestic partnership status. An acknowledgement by the parties that the only remedy for default is specific performance and that monetary damages are not available to the Owner for any City default. 4. Incentive Payments and Required Actions upon Completion of Hotel. Further Terms to be Included in the Operating Covenant Agreement: a. Confirmation that the Hotel is Operating as a four to five start rated or AAA Four Diamond or above Hotel. Upon completion of a Hotel with respect to which an Operating Covenant Agreement has been entered into, the Owner shall provide to the City, at Owner's sole cost and expense, an independent third party audit, by an auditor approved by the City, confirming that the Hotel is operating or will operate as a four to five star rated or AAA Four Diamond or above Hotel. The City shall approve or reject the results of such audit acting in its reasonable discretion. b. Incentive Payments for Hotel, Upon the confirmation described in subsection a, of this section 4, the City shall pay Incentive Payments to an Owner of a Hotel, pursuant to an Operating Covenant Agreement, in an amount equal to fifty percent (50%) of the HVT collected and remitted to the City during the Operating Period based on the HVT Rate with respect to such Hotel. Resolution No. 2015- 55B-57 G. Termination of Incentive Payments. Incentive Payments shall terminate, and the Operating Covenant Agreement shall so provide, upon the expiration of the applicable Operating Period, or at such time as the Hotel ceases to operate as a four to five star rated or AAA Four Diamond or above Hotel for reasons other than Temporary Closure; provided that the Incentive Payments shall terminate upon any closure unless the Owner notifies the City, in writing, of any Temporary Closure within ten (10) days of the initial occurrence of the onset of such condition or conditions that cause such a Temporary Closure. 5. No Pledge. Provisions for the making of Incentive Payments pursuant to the Operating Covenant Agreement shall not be deemed to constitute a pledge of any particular funds by the City, but instead an obligation contingent upon the operation of a Hotel. 6. Administrative Rules and Regulations. Consistent with the intent and goals of this Hotel Development Incentive Program, the Executive Director may adopt administrative rules and regulations for implementation and furtherance of the requirements of this program. Section 3. The City Council's decisions creating this Hotel Development Incentive Program are based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Council Action dated November 3, 2015, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Section 4. The City Council hereby finds and determines that the establishment of the Hotel Development Incentive Program, by the adoption of this Resolution, is not subject to the California Environmental Quality Act of 1970, as amended (Public Resources Code Section 21000 et seq.), pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State of California Guidelines for Implementation of the California Environmental Quality Act (California Code of Regulations, Title 14, Chapter 3), because it will not result in a direct or reasonably foreseeable physical change in the environment and is not a "project" as defined in Section 15378 of the California Code of Regulations. 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. Resolution No. 2015- 55B-58 ADOPTED this APPROVED AS TO FORM: Sonia R. Carvalho City Atto y, A Ryan O.VdjdI Assistan{{tt ty A AYES: NOES: ABSTAIN: NOT PRESENT: day of 12015. Councilmembers Councilmembers Councilmembers Councilmembers Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2015- to be the original resolution adopted by the City Council of the City of Santa Ana on July 2015. Date: Clerk of the Council City of Santa Ana 55B-59 Resolution No. 2015- 55B-60 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: NOTICE OF INTENT TO OVERRULE THE AIRPORT LAND USE COMMISSION'S DETERMINATION OF INCONSISTENCY FOR THE HERITAGE MIXED-USE DEVELOPMENT PROJECT AT 2001 EAST DYER ROAD (STRATEGIC PLAN NO. 3, 2) Alli '�i�/_1IFx RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on ls' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution notifying the Orange County Airport Land Use Commission and the State Division of Aeronautics of the City's intention to overrule the Airport Land Use Commission's determination that the proposed Heritage Mixed -Use Development project is inconsistent with the 2008 John Wayne Airport Environs Land Use Plan and direct staff to prepare findings in support of the overrule and submit the findings to the Airport Land Use Commission. BACKGROUND Pursuant to California Public Utilities Code Section 21676.b, on a two-thirds vote, the City Council may adopt a resolution that provides notification of their intent to overrule the Orange County Airport Land Use Commission's (ALUC) determination that The Heritage project is inconsistent with the John Wayne Airport Environs Land Use Plan (AELUP). DISCUSSION The project proponent Dyer 18 LLC, is proposing to construct a mixed-use residential, commercial, and office development located at 2001 East Dyer Road, at the northwest corner of Dyer Road and Red Hill Avenue. Three mixed-use five -story buildings are being proposed that would provide 1,221 apartment homes, parking, 12,675 square feet of retail commercial space, 5,415 square feet of restaurant space, and 58,000 square feet of office space. On October 15, 2015, the ALUC found The Heritage Mixed -Use Project Inconsistent with the AELUP for JWA per AELUP. Sections 1.2 and 2.1.4 of the AELUP, and PUC Section 21674 state that the commission is charged by PUC Section 21674(a) "to assist local agencies in ensuring compatible land uses in the vicinity of existing airports to the extent that the land in the vicinity of those airports is not already devoted to incompatible uses," and PUC Section 21674(b) "to coordinate planning at the state, regional and local levels so as to provide for the orderly development of air transportation, while at the same time protecting the public health, safety and welfare." 55C-1 Heritage Mixed -Use Development Project November 3, 2015 Page 2 As a final review authority on legislative acts, the City Council may, after a public hearing, choose to overrule the ALUC's decision by following the procedure established in Public Utilities Code Sections 21676 and 21676.5. The initial step is to notify ALUC and State Division of Aeronautics of the City's intention to override the ALUC's determination by adopting a resolution of intent at least 45 days in advance of the overruling. In turn, ALUC may provide comments to the City Council within 30 days of receiving the resolution of intention. If ALUC's comments are not available within this time limit, the City Council may act without them. The comments by ALUC are advisory to the City Council. However, should comments be received, the City Council must include comments from ALUC in the public record of any final decision to overrule ALUC. The City Council meeting is to make specific findings that the proposed overruling is consistent with the purposes stated in Public Utilities Code Sections 21670, 21676(b) and 21676.5. The Council's adoption of the notification resolution does not constitute the project's approval nor does it predispose the City's future action on the project. On October 12, 2015 the City of Santa Ana Planning Commission reviewed and recommended that the City Council approve the project. Should the City Council desire to proceed with the overruling of the ALUC's decision, a draft resolution of intent with specific findings will need to be prepared for consideration. The prosect, as proposed, is consistent with the noise, safety, and height standards of the AELUP. The EIR also concluded that that the project is consistent with the AELUP. Overriding the ALUC decision does not affect the City's status as a consistent agency. The City will not lose its consistency status by completing the override process. Please note that the override process will result in the airport operator's immunity from liability once a public agency overrides a determination of inconsistency. However, the City will not bear any liability from completing the overrule process. Approval of this resolution will not commence the 45 -day comment period for the project. Such period shall commence once staff has prepared supportive findings and has forwarded them to the ALUC. CEQA Compliance The City Council finds that the adoption of this Resolution is not subject to CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines as the proposed action will not have a significant effect on the environment. 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). 55C-2 November 1 Page 3 FISCAL IMPACT There is no fiscal impact associated with this action. HassanHaPhani, AICP Executive Director Planning & Building Agency HH;rb WWeparta\Tho Heritage Notice of Intent to Ovonto 79.3.16 Exhibit; 1. Draft Resolution of Intent 55C-3 55C-4 RESOLUTION NO. 2015 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA NOTIFYING THE ORANGE COUNTY AIRPORT LAND USE COMMISSION AND THE STATE DIVISION OF AERONAUTICS OF THE CITY'S INTENTION TO OVERRULE THE ORANGE COUNTY AIRPORT LAND USE COMMISSION'S DETERMINATION THAT THE PROPOSED HERITAGE MIXED-USE DEVELOPMENT PROJECT IS INCONSISTENT WITH THE 2008 JOHN WAYNE AIRPORT ENVIRONS LAND USE PLAN 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. An application was filed by Dyer 18 LLC ("Applicant") with respect to an 18.84 acre property generally located at the corner of Dyer Road and Red Hill Avenue, (the "Property") requesting approval for the development of up to 1,221 residential dwelling units, 12,675 square feet of retail commercial space and 5,415 square feet of restaurant space. In addition, the existing building would be partially demolished, with approximately 56,000 square feet of the building to remain as office space for an existing tenant, as well as future office uses. The following approvals are requested or required in order to implement the project as proposed: 1. General Plan Amendment. To allow the construction of a mixed-use development on this parcel, a General Plan amendment is required. Currently, the land use designation for this site is Professional and Administrative Office (PAO), which allows office development and ancillary commercial uses. This project will require an amendment to the Land Use Element to amend the General Plan Land Use designation of the site to District Center (DC). 2. Vesting Tentative Tract Map. A tentative tract map to establish lots for residential development purposes pursuant to Chapter 34 of the Santa Ana Municipal Code. 3. Affordable Housing Implementation Plan. A program specifying how the proposed project would meet the City's affordable housing requirements. 4. Development Agreement. A Development Agreement between the Resolution No. 2015 -XXX Page 1 of 4 55C-5 Applicant and the City of Santa Ana describing development rights and public benefits, pursuant to Government Code Sections 65864 through 65869,5 to enter into development agreements with persons having legal or equitable interests in real property for the purpose of establishing certainty for both City and owner in the development process. 5. Environmental Impact Report. An environmental impact report (EIR) to evaluate the environmental impacts resulting from the proposed project, in accordance with the California Environmental Quality Act of 1970 (CEQA), as amended (Public Resources Code Section 21000 et seq.), and the State CEQA Guidelines for Implementation of CEQA (California Code of Regulations, Title 14, Section 15000 et seq.). B. Public Utilities Code Section 21676(b) requires the City of Santa Ana to refer the proposed project to the Orange County Airport Land Use Commission (ALUC) for consistency with the 2008 John Wayne Airport Environs Land Use Plan (AELUP). C. At a duly noticed public hearing on October 15, 2015, the ALUC found the proposed project to be inconsistent with the 2008 John Wayne Airport Environs Land Use Plan (AELUP) on a 5-1 vote. D. As a final review authority on legislative acts, the City Council may, after a public hearing, choose to overrule the ALUC decision with a two-thirds vote of the City Council, if the City of Santa Ana makes specific findings that the proposed project is consistent with the purposes of Public Utilities Code Section 21676 and 21676.5. This two-step procedure requires the City Council to conduct two public meetings. At least 45 days prior to the decision to overrule ALUC, the governing body shall provide ALUC and the State Division of Aeronautics a copy of the proposed decision to overrule along with supportive findings. ALUC may provide comments to the City Council within 30 days of receiving the proposed decision and findings. If ALUC's comments are not available within this time limit, the City Council may act without them. Should comments be received, the City Council must include the comments from ALUC in the public record of any final decision to overrule ALUC. The second meeting shall be a public hearing to make the specific findings that the proposed overruling is consistent with the purposes stated in Public Utilities Code Section 21670. E. Staff is directed to conduct further studies as necessary, if any, in order to make the findings in support of the overrule. The 45 day period will begin after staff has forwarded the intent to overrule along with the supportive findings. Resolution No, 2015 -XXX Page 2 of 4 55C-6 Section 2. The City Council finds that this Resolution is not subject to CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines as the proposed action will not have a significant effect on the environment. The Applicant's project will be independently reviewed and evaluated pursuant to CEQA. Section 3. The City Council directs staff to forward a letter to the Airport Land Land Use Commission and Caltrans Department of Transportation, Division of Aeronautics, indicating the City of Santa Ana's intent to overrule any determination of the Airport Land Use Commission that the proposed Heritage Mixed -Use Development project is inconsistent with the 2008 John Wayne Airport Environs Land Use Plan. Section 4. The City Council directs staff to conduct further studies, as necessary, in order to prepare and forward findings to the Airport Land Use Commission and Caltrans Department of Transportation, Division of Aeronautics, in support of the City's intent to overrule the Airport Land Use Commission's determination that the proposed Heritage Mixed -Use Development project is inconsistent with the 2008 John Wayne Airport Environs Land Use Plan. Section 5. This resolution was approved, passed and adopted at a regular meeting of the City Council of the City of Santa Ana, held on the 3rd day of November, 2015. ADOPTED this 3rd day of November 2015. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: n `_ Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 55C-7 Resolution No, 2015 -XXX Page 3 of 4 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2015 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2015. Date: Clerk of the Council City of Santa Ana 55C-8 Resolution No. 2015 -XXX Page 4 of 4 CITY COUNCIL MEETING DATE: NOVEMBER 3, 2015 TITLE: DIRECT STAFF TO BEGIN DISCUSSIONS WITH THE CITY OF GARDEN GROVE REGARDING OPTIONS FOR THE WILLOWICK GOLF COURSE SITE (STRATEGIC PLAN NO. 5,4A) l CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on1"Reading ❑ Ordinance on 2n'Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize staff to begin discussions with the City of Garden Grove to discuss options for the Willowick Golf Course site. 2. Direct staff to review and identify opportunities for Willowick. 3. Update the Development and Transportation Council Committee on the progress of the discussions with the City of Garden Grove and potential options. 4. Designate the City Manager to assume the role, with team effort support from the Planning and Building Agency and Parks and Recreation, of managing and developing the direction of the discussions relating to Willowick. DISCUSSION At the special Development and Transportation Council Committee meeting of October 14, 2015, the potential of the City of Santa Ana acquiring the 102.1 -acre Willowick Golf Course site was discussed. The Committee members agreed that an opportunity exists and the timing is right for the City of Santa Ana to undertake a planning process and begin discussions with the City of Garden Grove for the City of Santa Ana to acquire this site. Staff provided a presentation on the benefits of developing this open space. Some of the benefits include an enhanced public experience, a landmark element for the city, additional outdoor green space, and improved access to recreational opportunities along the Santa Ana River. Six miles of trail follow the river as it crosses the city from north to south, which is used by walkers, runners, bikers, and horse back riders. In addition, the prospects of the streetcar development would bring the public to Willowick for all to enjoy additional recreational and cultural activities. 65A-1 Opportunity Discussions on Willowick November 3, 2015 Page 2 Site Location/General Plan & Zoning Analysis The Willowick Golf Course is situated on an irregularly shaped parcel approximately 100 acres in size and is general bound by the Pacific Electric Railroad tracks to the north, Jackson Street to the west, Fairview Street to the east, and Fifth Street to the south. The site is currently developed as an 18 -hole public golf course originally developed in 1930. The General Plan land use designation for the site is Open Space (OS) which covers a variety of public and private land uses including parkland, golf courses, cemeteries, railroad rights-of-way, riverbeds and creek beds. Properties within the designation contain little or no development and provide opportunities for the active or passive enjoyment of open space. The zoning for the subject property is Open Space land (0), making the golf course consistent with the existing General Plan land use designation (Exhibit 1). The O zoning district allows for open-air recreational and entertainment uses, including bike trails, government buildings, school buildings and facilities, quasi -public and service facilities, and other similar uses whose purpose is to provide for permanent open space throughout the city. STRATEGIC PLAN ALIGNMENT Approval of this item supports the city's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #4 (support neighborhood vitality and livability), Strategy A (support the design and construction of parks to provide increased open space). FISCAL IMPACT There is no fiscal impact associated with this action. Gerardo Mouet Hassan HagtM!, AICP Executive Director Executive Director Parks, Rae. & Comm. Svcs, Agency Planning and Building Agency GM:rb Rb:repods\RFCA 11-3-15 Willowick Exhibit: 1. Zoning Map 65A-2 .............i •—.ate.._.._ . KEEL 4 _ �. suxse.EP.AN R1 pgetE 1 P x csme nv 9 V n TR2 RE l on R2K� ' m WRxiNcsIDEAV GPEEN D0. r ® N IT1-lam I T�O�qr�� N II 'N'R R2 RE II Rt R1 Ill_ ��Ti _ nTx si 1IA P1 R2 R2 P1 Q� R2 u aj u uAR nv 1 R2 R2 R1 F � =711! FTTT rl R2 < �. �KDR 5TH ST awl SOONER �Df =50 !!` tiffs P2 PE E2 R2 R2 a P2 R2 a R2 o R1 PR MEN R' SP P2 ,Ts — _ _ _ IST ST Santa Ana Zoning Designations Al General Agncullural DT Downtown R4 Suburban Apartment C1 Community Commercial GC Government Center RE Residential Estate C1 -MD Community Commercial - Museum District M1 Light Industrial SD Specific Development C2 General Commercial M2 Heavy Industrial SP Specific Plan C4 Planned Shopping Center O Open Space TV Transit Village C5 Adenal Commercial P Professional UC Urban Center CDR Corridor R1 Single -Family Residence UN1 Urban Neighborhood CR Commercial Residential R2 Two -Family Residence UN2 Urban Neighborhood C -SM South Main Street Commercial District R3 Multiple -Family Residence V9G�L°me. NAPCENRN 0 500 EXHIBIT 1 E�o;,Er��� � (D' Feet p" 65A-3 a ppIN IM CM R2 Garden Grove �.+13 ' v Sall An n -A.• /• .aeY ns� P1 IT sNs r» R1 N W R1 LL wns a Q� R2 u aj u ST 1 Ta Tx F � a R2 R1 I IT RT IT R2 ETR ST R1 CNIC CENTER[ R2 t Al Al General Agncullural DT Downtown R4 Suburban Apartment C1 Community Commercial GC Government Center RE Residential Estate C1 -MD Community Commercial - Museum District M1 Light Industrial SD Specific Development C2 General Commercial M2 Heavy Industrial SP Specific Plan C4 Planned Shopping Center O Open Space TV Transit Village C5 Adenal Commercial P Professional UC Urban Center CDR Corridor R1 Single -Family Residence UN1 Urban Neighborhood CR Commercial Residential R2 Two -Family Residence UN2 Urban Neighborhood C -SM South Main Street Commercial District R3 Multiple -Family Residence V9G�L°me. NAPCENRN 0 500 EXHIBIT 1 E�o;,Er��� � (D' Feet p" 65A-3 a ppIN IM CM R2 Garden Grove �.+13 ' v Sall An n -A.• /• .aeY ns� 65A-4