Costa Mesa City Council
June 21, 2022

221
File #: 22-757 Meeting Date: 6/21/2022
· Capacity Planning
· Collection
· Edible Food Recovery
· Education and outreach (includes organic waste & edible food recovery) · Enforcement and Inspection
· Program Evaluation/Gap Analysis
· Procurement Requirements (using recycled organic products - compost, mulch, electricity, and/or renewable gas, and recycled paper and paper products · Record Keeping
ANALYSIS:

The Circular Economy Package allocated $60 million for the SB 1383 Local Assistance Grant Program. SB 170 Budget Act of 2021 authorizes CalRecycle to award grants to local jurisdictions to assist in the implementation of programs to meet SB 1383 statutory requirements.

First round funding went to applicants who certified that they will have an enforceable ordinance(s), or similarly enforceable mechanism (Title 14, CCR, section 18981.2) submitted to CalRecycle by April 1, 2022 and will have their resolution(s) with, if applicable, Letters of Authorization submitted by the March 1, 2022 due date. All other applicants will have until June 14, 2022 to submit the aforementioned documentation and will receive second round funding.

The City of Costa Mesa has taken numerous actions to address climate change and meet SB 1383 requirements. Since the City revised its municipal code and successfully executed non-exclusive agreements with seven haulers in 2021, the City was eligible for the first round of funding.

City staff submitted a grant application in January 2022 to support its ongoing efforts in edible food recovery, education and outreach, and capacity building. On April 27, 2022, the City received an award notification from CalRecycle stating that a one-time grant amount of $159,969 was awarded to assist with the implementation of regulation requirements associated with SB 1383. See Attachments 1, 2 and 3 for details.

ALTERNATIVES:

The City may decline to accept the grant funding awarded by CalRecycle. Staff does not recommend this as the City would then be required to rely on internal budget resources to meet state mandates.

FISCAL REVIEW:

Upon approval by City Council, revenue and expense appropriations in the amounts of $159,969, respectively, will be established in the City’sFY2021-22 State Grant Fund (Fund 231) for the SB 1383 Local Assistance Grant award.

222
File #: 22-757 Meeting Date: 6/21/2022
LEGAL REVIEW:

The City Attorney’s Office has reviewed the staff report and approves it as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goals:
· Strengthen the Public’s Safety and Improve the Quality of Life. · Advance Environmental Sustainability and Climate Resiliency.

CONCLUSION:

Staff recommends the City Council:

1. Accept $159,969 CalRecycle’s SB 1383 Local Assistance Grant Program that was recently awarded to the City.

2. Authorize the City Manager or designee with signature authority to execute all documents necessary to implement the grant and all grant-related reports to CalRecycle.

3. Authorize revenue and expense appropriations in the amounts of $159,969, respectively, to account for the SB 1383 grant award in the City’s FY2021-22 State Grant Fund (Fund 231).

223
Request for Approval
To:

Michelle Martin
Branch Chief, Financial Resources Management Branch
Decision Subject: Awards for the SB '1383 Local Assistance Grant Program, (Greenhouse Gas Reduction Fund, Fiscal Year2021-22)
Action By: April 25, 2022 (Revised Mav 6, 2022)
Summary of Request
Staff requests approval of grant awards for the SB 1383 Local Assistance Grant Program (Program) for fiscal year (FY) 2021-22. Staff received 475 eligible applications totaling $54,929,783 for this grant program.

Funding
The FY 2021-22 Budget Act allocates $60,000,000 to be used to provide grants to local jurisdictions to assist in the implementation of regulations adopted by the Department of Resources Recycling and Recovery pursuant to Chapter 395 of the Statutes of 2016; $3,000,000 (5 percent) has been allocated for administrative costs.

Fund Source Amount
Available
$57.000,000Greenhouse Gas
Reduction Fund
(FY 2021-22\
Total $57,000,000 $41,782.906 $15,217,094
$42p3+7€ $14863,724
Background and Findings
Statutory Authority
Senate Bill (SB) 1383 Lara, Chapter 395, Statutes of 2016, set methane emissions reduction targets for California in a statewide effort to reduce emissions of short-lived climate pollutants.

SB '170 Budget Act of 2021 authorizes CalRecycle to award grants to local jurisdictions to assist in the implementation of programs to meet these statutory requirements.

Program Background
The SB 1383 Local Assistance Grant Program provides funding to assist local jurisdictions Amount to
Fund ltem
$41,782.906
$12;936;276
Amount
Remaining
$15.217.094
$/.4s63J%
Line ltem
Local
Assistance/Grants

Zoe Heller
Acting Deputy Director, Materials Management and Local Assistance Division
From:

Request Date: April 14,2022
Table 1. Funding
ATTACHMENT 1
224
with meeting the requirements below:
. Provide organics collection services to all residents and businesses . Conduct education and outreach to the community
o Secure access to recycling and edible food recovery capacity o Establish edible food recovery program
r Procure recyclable and recovered organic products
e Monitor compliance and conduct enforcement
Criteria and Process
The Eligibility Criteria and Evaluation Process was approved by the Deputy Director on December 28,2021, and presented at the January 2022 CalRecycle Monthly Public Meeting.

The Notice of Funds Available was placed on the CalRecycle website on January 4, 2022, wilh an appropriate notice sent to stakeholders.

Applicationsweredue February 1,2022, with asecondaryduedateof Marci 1,2022,for Resolution submission. CalRecycle received 476 applications requesting $54,947,783. Staff reviewed the applications in accordance with the approved evaluation criteria; 399 applications met the application requirements and adopted their enforceable ordinance, or similarly enforceable mechanism, by April 1, 2022, and are therefore eligible for first round funding.

Subsequently, one application is ineligible. ln addition, first round awardees will receive additional remaining funds from entities who did not apply. The remaining 82 76 applications will be moved to the second funding round, tentatively scheduled for award in September 2022. please note that if a participant in a Regional or Joint Powers Authority application did not meet the application requirements, the entire application was moved to the second funding round.

The types of projects recommended for funding include: green, blue, and brown bins, education and ouheach materials, record keeping subscriptions, refrigerators for food rescue, side loaders for collection, and personnel and administrative costs.

Recommendation
staff recommends approval of 393 399 grant awards as listed below for $41,782.906 $42,936*76.

Table 2. Recommended Awards
APPlicant
Alameda County
Almonte Sanitary District
Alto Sanitary District
Bolinas Community Public Utility District
Cs+te4€snty
Calaveras County
Cambria Community Services District
Castro Valley Sanitary District
City of Agoura Hills
City of Alameda
Award Amount

$208,136
$20,143
$20,1 18
$20,106
$84.;76+
$58,808
$20,558
$77,526
$29,860
$115,019
225
Applicant Award Amount
City of Albany
City of Alhambra
City of Aliso Viejo
City of American Canyon
City of Anaheim
City of Antioch
City of Arcadia
City of Artesia
City of Atwater
City of Auburn
City of Avalon
City of Avenal
City of Azusa
City of Bakersfield
City of Baldwin Park
City of Banning
City of Barstow
City of Beaumont
City of Bell Gardens
City of Bellflower
City of Belmont
City of Benicia
City of Berkeley
City of Beverly Hills
City of Blythe
City of Bradbury
City of Brawley
City of Brea
City of Brentwood
City of Brisbane
City of Buellton
City of Buena Park
City of Burbank
City of Burlingame
City of Calabasas
City of Calexico
City of California City
City of Calimesa
City o1_Calip-al!?
City of Camarillo
City of Canyon Lake
City of Capitola
City of Carlsbad
City of Carmel-bythe-Sea
City of Carpinteria
$25,065
$122,592
$71,231
$30,346
$499,168
$160,065
$82,290
$24,261
$45,859
$21,419
$20,391
$21,214
$70,912
$561,069
$108,044
$46,456
$35,142
$75,280
$60,548
$'110,191
$38,334
$39,237
$165,580
$48,099
$27,181
$20,103
$39,540
$64,641
$94,'180
$20,450
$20,534
$116,064
$147,552
$42,951
$35,333
$58,085
$21,388
$21,006
$20,640
$99,269
$21,084
$20,992
$163,804
$20,395
$21,297

Applicant Award Amount
City of Carson
City of Cathedral City
City of Ceres
City of Cerritos
City of Chico
City of Chino
City of Chino Hills
City of Chowchilla
City of Citrus Heights
City of Claremont
City of Clovis
City of Coachella
Citv of oalinqa
City of Colfax
City of Colton
City of Commerce
City of Concord
City of Corcoran
City of Corona
City of Coronado
City of Costa lvlesa
$130,217
$77,093
$69,946
$71,562
$158,151
$125,307
$117,523
$25,453
$124,781
$s1,351
$172,729
$68,429
$24.633
$20,214
$77,411
$21,257
$183,213
$29,887
$239,839
$32,537
$159,969
$69,850
$34,501
$57,127
$83,693
$69,424
$154,077
$47,803
$98,687
$20,419
$20,164
$73,002
$80,961
$38,400
$29,493
$158,060
$31,269
$92,204
$43,802
$96,334
$146,529
$64,444
$36,045
$165,163
$24,509
City of Covina
City of Cudahy
City of Culver City
City of Cupertino
City of Cypress
City of Daly City
City of Dana Point
City of Davis
City of Del Mar

City of Del Rey Oaks
City of Delano
Cig of Diamond Bar
City of Dinuba
City of Dixon
City of Downey
City of Duarte
City of Dublin
City of East Palo Alto
City of Eastvale
City of El Cajon
City of El Centro
City of El Cerrito
City of El Monte
City of El Segundo
227
Applicant Award Amount
City of Glendale
City of Glendora
City of Goleta
City of Gonzales
City of Grand Terrace
City of Grass Valley
City of Greenfield
City of Guadalupe
City of Half Moon Bay
City of Hawaiian Gardens
$252,058
$21,237
$88,813
$214,802
$21,081
$167,333
$23,307
$20,799
$117,019
$302,539
$2H2€
$47,314
$78,475
$20,649
$331 ,140
$771,586
$197,528
$37,835
$244,098
$86,072
$288,291
$73,665
$46,605
$20,835
$21,219.
$21,254
$26,964
$20,820
$21,210
$21,422
$123,637
$223,823
$120,150
$37,480
$28,442
$136,396
$20,188
$78,625
$20,613
$20,718
$278,482
$84,089
$29,623
$20,534
$20,042
City of Elk Grove
City of Emeryville
City of Encinitas
City of Escondido
City of Exeter
City of Fairfield
City of Fillmore
City of Firebaugh
City of Folsom
City of Fontana
erty-e++e*S+agg
City of Foster City
City of Fountain Valley
City of Fowler
City of Fremont
City of F-resno
City of Fullerton
City of Galt
City of Garden Grove
City of Gardena
City of HaMhorne
City of Hayward
City of Hemet
City of Hercules
City of Hermosa Beach
City of Hesperia
City of Hidden Hills
City of Highland
City of Holtuille
City of Hughson
City of Huntington Beach
City of Huntington Park
City of lmperial
City of lndian Wells
City of lndustry

Applicant Award Amount
City of lrvine
City of lrwindale
City of Jurupa Valley
City of Kerman
City of King City
City of Kingsburg
City of La Canada Flintridge
City of La Habra
City of La Mesa
City of La Mirada
City of La Palma
City of La Puente
City of La Quinta
City of La Verne
City of Lafayette
City of Laguna Hills
City of Laguna Niguel
City of Laguna Woods
City of Lake Elsinore
City of Lake Forest .

City of Lakevood
City of Lancaster
City of Larkspur
City of Lawndale
City of Lemon Grove
City of Lemoore
City of Lindsay
City of Livermore
City of Lomita
City of Lompoc
City of Long Beach
City of Los Alamitos
City of Los Altos
City of Los Banos
City of Lynwood
City of Malibu
City of Manhattan Beach
City of Manteca
City of Marina
City of Martinez
City of Maywood
City of Mendota
City of Menifee
City of Menlo Park
City of Merced
$383,742
$20,142
$153,370
$23,745
$22,137
$21,286
$29,489
$89,545
$84,993
$69,565
$22,792
$57,524
$59,159
$47,655
$36,767
$44,821
$e2,870
$23,629
$92,298
$120,168
$114,080
$228,449
$21,199
$47,128
$38,1 58
$38,812
$21,287
$129,580
$29,823
$60,915
$660,1 96
$21,134
$44,027
$61,445
$99,511
$21,134
$50,437
$124,088
$31,922
$52,930
$40,025
$21,224
$141,516
$50,108
$129,234

Applicant Award Amount
City of Mill Valley
City of Millbrae
City of Milpitas
City of Mission Viejo
City of Modesto
City of Monrovia
City of Montebello
City of Monterey
City of Monterey Park
City of Moorpark
City of Moreno Valley
City of Mountain View
City of Murrieta
City of Napa
City of National City
City of Needles
City of Newark
City of Newport Beach
City of Norco
City of Norwalk
City of Novato
City of Oakdale
City of Oakland
City of Oakley
City of Oceanside
City of Ojai
City of Ontario
City of Orange
City of Orinda
City of Oroville
City of Oxnard
City of Pacific Grove
City of Pacifica
City of Palm Desert
City of Palm Springs
City of Palo Alto
City of Paramount
City of Parlier
City of Pasadena
City of Patterson
City of Perris
City of Pico Rivera
City of Piedmont
City of Pinole
City of Pittsburg
$21,535
$32,752
$107,661
$133,671
$310,078
$55,258
$89,694
$41,028
$86,123
$51,738
$296,171
$1 17,739
$163,340
$112,923
$89,461
$20,526
$69,886
$122,038
$37,822
$149,559
$76,407
$33,778
$614,794
$61,481
$250,127
$20,731
$257.526
$194,618
$27,916
$26,204
$289,476
$22,925
$54,428
$76,979
$68,329
$96,378
$78,823
$23,336
$205,808
$33,872
$1'12,331
$90,036
$21 ,1 10
$28,327
$106,019

Applicant Award Amount
City of Placentia
City of Placerville
City of Pleasant Hill
City of Pleasanton
City of Point Arena
City of Pomona
City of Porterville
City of Poway
City of Rancho Cordova
City of Rancho Cucamonga
City of Rancho Mirage
City of Rancho Palos Verdes
City of Rancho Santa Margarita
City of Redondo Beach
City of Redwood City
City of Reedley
City of Richmond
City of Ridgecrest
City of Rio Vista
City of Riverside
City of Rocklin
City of Rolling Hills
City of Rolling Hills Estates
City of Rosemead
City of Sacramento
City of Salinas
City of San Bernardino
City of San Bruno
City of San Buenaventura
City of San Carlos
e+tfefSaneemente
City of San Dimas
City of San Fernando
City of San Gabriel
City of San Jacinto
City of San Jose
City of San Juan Capistrano
City of San Leandro
City of San Marcos
City of San Marino
City of San Mateo
City of San Pablo
City of San Rafael
City of San Ramon
City of Sand City
$73,147
$21,070
$49,133
$111,477
$20,043
$214,282
$84,983
$69,995
$1 13,297
$247,840
$27,523
$59,573
$68,934
$94,725
$121 ,076
$37,794
$156,235
$42,732
$20,991
$458,065
$100,341
$20,183
$20,796
$77,454
$727,761
$226,806
$305,846
$64,358
$149,590
$43,047
$9+31€
$48,950
$35,916
$57,324
$73,283
$1,452,288
$51,484
$124,045
$136,747
$21,274
$146,250
$44,776
$84,201
$119,217
$20,038

Applicant Award Amount
City
City
City
City
City
City
City
City
City
City
City
City
City
City
City
City
City of Sanger
City of Santa Barbara
City of Santa Clara
City of Santa Cruz
$39,578
$132,171
$185,289
$80,170
$152,451
$132,049
$44,282
$81,078
$20,723
$21 ,1 56
$46,298
$29,847
$21,047
$21,142
$176,441
$21,359
$35,493
$20,542
$31,042
$1 37,101
$34,005
$37,204
$95,643
$56,800
$41,733
$217,816
$20,702
$21,180
$159,957
$52,081
$177,791
$205,140
$139,987
$1 13,786
$43,262
$103,597
$111,677
$139,1 98
$167,109
$20,029
$20,566
$146,564
$43,076
$101,536
$38,820
of Santa Maria
of Santa Monica
of Santa Paula
of Santee
of Sausalito
of Scotts Valley
of Seaside
of Shafter
of Sierra Madre
of Signal Hill
of Simi Valley
of Solana Beach
of Soledad
of Solvang
of South El Monte
of South Gate
ity
ity
Ity
ity
ity
ity
ity
ity
ity
ity
ity
ityC
c
C
C
c
C
C
c
C
C
c
City of South Lake Tahoe
City of South Pasadena
City of South San Francisco
City of Stanton
City of Suisun City
City of Sunnyvale
of Taft
of Tehachapi
of Temecula
of Temple City
of Thousand Oaks
of Torrance
of Tracy
of Tustin
of Twentynine Palms
of Union City
of Upland
of Vacaville
City of Vallejo
City of Vernon
City of Villa Park
City of Vista
City of Walnut
City of Walnut Cr,eek
City of Wasco

City of Waterford
City of West Covina
City of West Hollywood
City of West Sacramento
City of Westlake Village
City of Westmorland
City of Whittier
City of Wildomar
City of Winters
City of Woodlake
City of Woodland
City of Yorba Linda
City of Yucaipa
Contra Costa County
Costa Mesa Sanitary District
Del Norte Solid Waste Management Authority
o City of Crescent City
o Del Norte County
E+D€mdo€oun$
f+esneeeun$
Heber Public Utility District
Homestead Valley Sanitary District
Kern County
Las Gallinas Valley Sanitary District
Los Angeles County
Madera County
Marin County
[qenC€€ine€o$nry
Merced County
Midway City Sanitary District
Mono County
Monterey County
Mountain House Community Service District
Nevada County
Novato Sanitary District
Orange County
Oro Loma Sanitary District
Pebble Beach Community Services District
Placer County
Regional Waste Management Authority
. City of Live Oak
. City of Marysville
o City of Wheatland
. City of Yuba City
o Sutter County
Award Amount
w&e32
$24OJe3
$20,649
$20,231
$449,757
$43,309
$1,444,427
$106,687
$95,294
$s3J34
$131,133
$141,153
$20,538
$151,474
$35,556
$93,217
$75,890
$181 ,1 1 9
$191 ,284
$20,442
$162,553
$284,735
Applicant
$20,879
$'149,841
$51,941
$77,085
$20,804
$20,227
$122,505
$53,192
$20,749
$20,792
$86,966
$96,645
$79,434
$246,842
$168,262
$50,774

Applicant
o Yuba County
Riverside County
Rodeo Sanitary District
Rubidoux Community Services District
Sacramento County
San Benito County lntegrated Waste Management Regional
Agency
. City of Hollister
o City of San Juan Bautista
o San Benito County
Sa+Ce+na+dm€€oufiV
San Diego County
3:l lxi: 3ii:3: 3:xlil rntegrated waste Management
Authority
. California Valley Community Service District
. Cayucos Sanitary District
o City of Arroyo Grande
o City of Atascadero
o City of El Paso de Robles
o City of Grover Beach
. City of Morro Bay
o City of Pismo Beach
. City of San Luis Obispo
o Heritage Ranch Community Service Dishict
. Nipomo Community Service District
. Oceano Community Service District
. Templeton Community Service District
San Mateo County
Santa Barbara County
Santa Clara County (CEPA)
Santa Cruz County
Solano County
Sonoma County Waste Management Agency d.b.a. Zero
Waste Sonoma
o City of Cloverdale
c City of Cotati
o City of Healdsburg
o City of Petaluma
. City of Rohnert Park
. City of Santa Rosa
. City of Sebastopol
o City of Sonoma
o Sonoma County
o Town of Windsor
Award Amount
$550,518
$20,886
$53,174
$833,204
$108,766
$42932s
$703,210
$163,811
$371,025
$92,465
$188,960
$121 ,7',t3
$186,699
$26,912
$725,996

Applicant Award Amount
Strawberry Recreation District
Tamalpais Community Services District
Tehama County Solid Waste Management Agency
. City of Corning
. City of Red Bluff
o City of Tehama
o Tehama County
Town of Apple Valley
Town of Atherton
Town of Colma
Town of Danville
Town of Fairfax
Town of Hillsborough
Town of Loomis
Town of Los Altos Hills
Town of Moraga
Town of Ross
Town of San Anselmo
Town of Tiburon
Town of Truckee
Town of Woodside
Tulare County
Upper Valley Waste Management Agency
o City of Calistoga
. City of St. Helena
o Napa County
r Town of Yountville
Ventura County
West Valley Solid Waste Management Authority
. City of Campbell
o City of Monte Sereno
o City of Saratoga
. Town of Los Gatos
Yolo County
$20,s90
$20,688
$123,787
$131 ,025
$168,481
$105,81 1
$20,678
$20,163
$62,906
$20,737
$21,120
$20,669
$20,825
$24,734
$20,250
$21,247
$20,930
$23,879
$20,553
$203,512
$95,370
Total Award $41,
$37,167
782.906
$42p36+75
Revisions were made to the RFA because one iurisdiction qualified for round one fundino that was inadvertentlv olaced in round two fundinq. Seven iurisdictions did not fundinq and are subseouentlv moved

qualifu for round one
for consideration to round two
235
Zoe HeIIer5!li:',*,**
Digilally signed by Zoe
13:05122 -07'00'
Zoe Heller
Acting Deputy Director
Dated

Deputy Director Action
On the basis of the information and analysis in this Request for Approval and the findings set out herein, I hereby conditionally approve the grant awards for the SB 1383 Local Assistance Grant Program as listed in Table 2. Each proposed grantee's award is subject to the following condition:
. The recommended grantee must pay all outstanding debts due to CalRecycle, or bring current any outstanding payments owed to CalRecycle, within 60 days of the date of the award email.
236
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 1 Exhibit A
Terms and Conditions

SB 1383 Local Assistance Grant Program
Fiscal Year 20

21 –
22 The following terms used in this Grant Agreement (Agreement) have the meanings given to them below, unless the context clearly indicates otherwise:
•

"CalRecycle" means the Department of Resources Recycling and Recovery. •

"Director" means the Director of CalRecycle or his or her designee. •

"Grant Agreement" and "Agreement" means all documents comprising the agreement between CalRecycle and the

g
rantee for this grant.
•

"Grant Manager" means CalRecycle staff person responsible for monitoring the grant.
•

"Grantee" means the recipient of funds pursuant to this Agreement. •

"Program" means the SB 1383 Local Assistance Grant Program. •

"State" means the State of California, including, but not limited to, CalRecycle and/or its designated officer.

Air or Water Pollution Violation
The grantee shall not be:
(a)

In violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district. (b)

Out of

compliance with any final cease and desist order issued pursuant to Water Code Section 13301 for violation of waste discharge requirements or discharge prohibitions.
(c) Finally determined to be in violation of provisions of federal law relating to air or water pollution.

Amendment
No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties, and approved as required. No oral understanding or agreement not incorporated into this Agreement is binding on any of the parties. This Agreement may be amended, modified or augmented by mutual consent of the parties, subject to the requirements and restrictions of this paragraph.

Americans with Disabilities Act
The grantee assures the state that it complies with the Americans with Disabilities Act of 1990

(ADA) (42 U.S.C.§ 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all

applicable regulations and guidelines issued pursuant to the ADA.

ATTACHMENT 2
237
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 2 Assignment, Successors, and Assigns
(a) This Agreement may not be assigned by the grantee, either in whole or in part, without CalRecycle’s prior written consent.
(b) The provisions of this Agreement shall be binding upon and inure to the benefit of CalRecycle, the grantee, and their respective successors and assigns.

Audit/Records Access
The grantee agrees that CalRecycle, the Department of Finance, the Bureau of State Audits, or their designated representative(s) shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. The grantee agrees to maintain such records for possible audit for a minimum of three (3) years after final payment date or grant term end date, whichever is later, unless a longer period of records retention is stipulated, or until completion of any action and resolution of all issues which may arise as a result of any litigation, dispute, or audit, whichever is later. The grantee agrees to allow the designated representative(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, the grantee agrees to include a similar right of the State to audit records and interview staff in any contract or subcontract related to performance of this Agreement.

[It may be helpful to share the Terms and Conditions (Exhibit A) and Procedures and Requirements (Exhibit B) with your finance department, contractors and subcontractors.

Examples of audit documentation include, but are not limited to: expenditure ledger, payroll register entries and time sheets, personnel expenditure summary form, travel expense log, paid warrants, contracts, change orders, invoices, and/or cancelled checks.]

Authorized Representative
The grantee shall continuously maintain a representative vested with signature authority authorized to work with CalRecycle on all grant-related issues. The grantee shall, at all times, keep the Grant Manager informed as to the identity and contact information of the authorized representative.

Availability of Funds
CalRecycle's obligations under this Agreement are contingent upon and subject to the availability of funds appropriated for this grant.

Bankruptcy/Declaration of Fiscal Emergency Notification If the grantee files for protection under Chapter 9 of the U.S. Bankruptcy Code (11 U.S.C. §901 et seq.) or declares a fiscal emergency at any time during the Grant Term, the grantee shall notify CalRecycle within 15 days of such filing or declaration, pursuant to the procedures set forth in the section entitled “Communications” herein.

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CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 3 Charter Cities
If the grantee is a charter city, a joint powers authority that includes one or more charter cities, or the regional lead for a regional program containing one or more charter cities, the grantee shall not receive any grant funding if such funding is prohibited by Labor Code section 1782. If it is determined that Labor Code section 1782 prohibits funding for the grant project, this Agreement will be terminated and any disbursed grant funds shall be returned to CalRecycle.

Child Support Compliance Act
For any agreement in excess of $100,000, the grantee acknowledges that:
(a) The grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable 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 Family Code Section 5200 et seq.
(b) The grantee, 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 Hire Registry maintained by the California Employment Development Department.

Communications
All communications from the grantee to CalRecycle shall be directed to the Grant Manager. All notices, including reports and payment requests, required by this Agreement shall be given in writing by email, letter, or fax to the Grant Manager as identified in the Procedures and Requirements (Exhibit B). If an original document is required, prepaid mail or personal delivery to the Grant Manager is required following the email or fax.

Compliance
The grantee shall comply fully with all applicable federal, state, and local laws, ordinances, regulations, and permits. The grantee shall provide evidence, upon request, that all local, state, and/or federal permits, licenses, registrations, and approvals have been secured for the purposes for which grant funds are to be expended. The grantee shall maintain compliance with such requirements throughout the Grant Term. The grantee shall ensure that the requirements of the California Environmental Quality Act are met for any approvals or other requirements necessary to carry out the terms of this Agreement. The grantee shall ensure that all of grantee’s contractors and subcontractors have all local, state, and/or federal permits, licenses, registrations, certifications, and approvals required to perform the work for which they are hired. Any deviation from the requirements of this section shall result in non- payment of grant funds.

Conflict of Interest
The grantee needs to be aware of the following provisions regarding current or former state employees. If the grantee has any questions on the status of any person 239
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 4 rendering services or involved with this Agreement, CalRecycle must be contacted immediately for clarification.

Current State Employees (Pub. Contract Code, § 10410):
(a) No officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity, or enterprise is required as a condition of regular state employment. (b) No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code, § 10411):
(a) For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency.
(b) For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the twelve month period prior to his or her leaving state service.

If the grantee violates any provisions of above paragraphs, such action by the grantee shall render this Agreement void. (Pub. Contract Code, § 10420).

Contractors/Subcontractors
The grantee will be entitled to make use of its own staff and such contractors and subcontractors as are mutually acceptable to the grantee and CalRecycle. Any change in contractors or subcontractors must be mutually acceptable to the parties.

Immediately upon termination of any such contract or subcontract, the grantee shall notify the Grant Manager.

Nothing contained in this Agreement or otherwise, shall create any contractual relation between CalRecycle and any contractors or subcontractors of grantee, and no agreement with contractors or subcontractors shall relieve the grantee of its responsibilities and obligations hereunder. The grantee agrees to be as fully responsible to CalRecycle for the acts and omissions of its contractors and subcontractors and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the grantee. The grantee's obligation to pay its contractors and subcontractors is an independent obligation from CalRecycle’s obligation to make payments to the grantee. As a result, CalRecycle shall have no obligation to pay or to enforce the payment of any moneys to any contractor or subcontractor.

Copyrights
Grantee retains title to any copyrights or copyrightable material produced pursuant to this Agreement. grantee hereby grants to CalRecycle a royalty-free, nonexclusive, 240
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 5 transferable, world-wide license to reproduce, translate, and distribute copies of any and all copyrightable materials produced pursuant this Agreement, for nonprofit, non- commercial purposes, and to have or permit others to do so on CalRecycle’s behalf.

Grantee is responsible for obtaining any necessary licenses, permissions, releases or authorizations to use text, images, or other materials owned, copyrighted, or trademarked by third parties and for extending such licenses, permissions, releases, or authorizations to CalRecycle pursuant to this section.

Corporation Qualified to do Business in California
When work under this Agreement is to be performed in California by a corporation, the corporation shall be in good standing and currently qualified to do business in the State. "Doing business" is defined in Revenue and Taxation Code Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit.

Discharge of Grant Obligations
The grantee's obligations under this Agreement shall be deemed discharged only upon acceptance of the final report by CalRecycle. If the grantee is a non-profit entity, the grantee’s Board of Directors shall accept and certify as accurate the final report prior to its submission to CalRecycle.

Disclaimer of Warranty
CalRecycle makes no warranties, express or implied, including without limitation, the implied warranties of merchantability and fitness for a particular purpose, regarding the materials, equipment, services or products purchased, used, obtained and/or produced with funds awarded under this Agreement, whether such materials, equipment, services or products are purchased, used, obtained and/or produced alone or in combination with other materials, equipment, services or products. No CalRecycle employees or agents have any right or authority to make any other representation, warranty or promise with respect to any materials, equipment, services or products, purchased, used, obtained, or produced with grant funds. In no event shall CalRecycle be liable for special, incidental or consequential damages arising from the use, sale or distribution of any materials, equipment, services or products purchased or produced with grant funds awarded under this Agreement.

Discretionary Termination
The Director shall have the right to terminate this Agreement at his or her sole discretion at any time upon 30 days written notice to the grantee. Within 45 days of receipt of written notice, grantee is required to:
(a) Submit a final written report describing all work performed by the grantee. (b) Submit an accounting of all grant funds expended up to and including the date of termination.
(c) Reimburse CalRecycle for any unspent funds.

Disputes
In the event of a dispute regarding performance under this Agreement or interpretation of requirements contained therein, the grantee may, in addition to any other remedies 241
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 6 that may be available, provide written notice of the particulars of such dispute to the Branch Chief of Financial Resources Management Branch, Department of Resources Recycling and Recovery, PO Box 4025, Sacramento, CA 95812-4025. Such written notice must contain the grant number.

Unless otherwise instructed by the Grant Manager, the grantee shall continue with its responsibilities under this Agreement during any dispute.

Drug-Free Workplace Certification
The person signing this Agreement on behalf of the grantee certifies under penalty of perjury under the laws of California, that the grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and will provide a drug-free workplace by taking the following actions:
(a) Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions that will be taken against employees for violations. (b) Establish a drug-free awareness program to inform employees about all of the following:
(1) The dangers of drug abuse in the workplace.
(2) The grantee's policy of maintaining a drug-free workplace. (3) Any available counseling, rehabilitation, and employee assistance programs. (4) Penalties that may be imposed upon employees for drug abuse violations. (c) Require that each employee who works on the grant:
(1) Receive a copy of the drug-free policy statement of the grantee. (2) Agrees to abide by the terms of such statement as a condition of employment on the grant.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and grantee may be ineligible for award of any future State agreements if CalRecycle determines that the grantee has made a false certification, or violated the certification by failing to carry out the requirements as noted above.

Effectiveness of Agreement
This Agreement is of no force or effect until signed by both parties.

Entire Agreement
This Agreement supersedes all prior agreements, oral or written, made with respect to the subject hereof and, together with all attachments hereto, contains the entire agreement of the parties.

Environmental Justice
In the performance of this Agreement, the grantee shall conduct its programs, policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races, cultures, and income levels, including minority populations and low-income populations of the state.

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CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 7 Failure to Perform as Required by this Agreement
CalRecycle will benefit from the grantee's full compliance with the terms of this Agreement only by the grantee's:
(a) Investigation and/or application of technologies, processes, and devices which support reduction, reuse, and/or recycling of wastes.
(b) Cleanup of the environment.
(c) Enforcement of solid waste statutes and regulations, as applicable.

Therefore, the grantee shall be in compliance with this Agreement only if the work it performs results in:
(a) Application of information, a process, usable data or a product which can be used to aid in reduction, reuse, and/or recycling of waste.
(b) The cleanup of the environment.
(c) The enforcement of solid waste statutes and regulations, as applicable.

If the Grant Manager determines that the grantee has not complied with the Grant Agreement, the grantee may forfeit the right to reimbursement of any grant funds not already paid by CalRecycle, including, but not limited to, the 10 percent withhold.

Force Majeure
Neither CalRecycle nor the grantee, its contractors, vendors, or subcontractors, if any, shall be responsible hereunder for any delay, default, or nonperformance of this Agreement, to the extent that such delay, default, or nonperformance is caused by an act of God, weather, accident, labor strike, fire, explosion, riot, war, rebellion, sabotage, flood, or other contingencies unforeseen by CalRecycle or the grantee, its contractors, vendors, or subcontractors, and beyond the reasonable control of such party.

Forfeit of Grant Funds/Repayment of Funds Improperly
Expended
If grant funds are not expended, or have not been expended, in accordance with this Agreement, or if real or personal property acquired with grant funds is not being used, or has not been used, for grant purposes in accordance with this Agreement, the Director, at his or her sole discretion, may take appropriate action under this Agreement, at law or in equity, including requiring the grantee to forfeit the unexpended portion of the grant funds, including, but not limited to, the 10 percent withhold, and/or to repay to CalRecycle any funds improperly expended.

Generally Accepted Accounting Principles
The grantee is required to use Generally Accepted Accounting Principles in documenting all grant expenditures.

Grant Manager
The Grant Manager’s responsibilities include monitoring grant progress, and reviewing and approving Grant Payment Requests and other documents delivered to CalRecycle pursuant to this Agreement. The Grant Manager may monitor grantee performance to ensure that the grantee expends grant funds appropriately and in a manner consistent with the terms and conditions contained herein. The Grant Manager does not have the authority to approve any deviation from or revision to the Terms and Conditions 243
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 8 (Exhibit A) or the Procedures and Requirements (Exhibit B), unless such authority is expressly stated in the Procedures and Requirements (Exhibit B).

Grantee Accountability
The grantee is ultimately responsible and accountable for the manner in which the grant funds are utilized and accounted for and the way the grant is administered, even if the grantee has contracted with another organization, public or private, to administer or operate its grant program. In the event an audit should determine that grant funds are owed to CalRecycle, the grantee is responsible for repayment of the funds to CalRecycle.

Grantee's Indemnification and Defense of the State
The grantee agrees to indemnify, defend and save harmless the state and CalRecycle, and their officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the grantee as a result of the performance of this Agreement.

Grantee's Name Change
A written amendment is required to change the grantee's name as listed on this Agreement. Upon receipt of legal documentation of the name change, CalRecycle will process the amendment. Payment of Payment Requests presented with a new name cannot be paid prior to approval of the amendment.

In Case of Emergency
In the event of an emergency, or where there is an imminent threat to public health and safety or the environment, the grantee may choose, at its own risk, to incur grant- eligible expenses not previously included in the approved Budget, subject to subsequent approval by the Grant Manager of both the Budget change and the need to implement the Budget change on an emergency basis. The grantee shall notify the Grant Manager of the emergency and the Budget change at the earliest possible opportunity. CalRecycle reserves the right to accept or reject the grantee’s determination that the circumstances constituted an emergency or a threat to public health and safety or the environment. If the Grant Manager determines that the circumstances did not constitute an emergency or a threat to public health or safety, the Budget change will be disallowed.

No Agency Relationship Created/Independent Capacity
The grantee and the agents and employees of grantee, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of CalRecycle.

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CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 9 No Waiver of Rights
CalRecycle shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by CalRecycle. No delay or omission on the part of CalRecycle in exercising any rights shall operate as a waiver of such right or any other right. A waiver by CalRecycle of a provision of this Agreement shall not prejudice or constitute a waiver of CalRecycle’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by CalRecycle, nor any course of dealing between CalRecycle and grantee, shall constitute a waiver of any of CalRecycle’s rights or of any of grantee’s obligations as to any future transactions. Whenever the consent of CalRecycle is required under this Agreement, the granting of such consent by CalRecycle in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of CalRecycle.

Non-Discrimination Clause
(a) During the performance of this Agreement, grantee and its contractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment on the bases enumerated in Government Code Section 12900 et seq.
(b) The person signing this Agreement on behalf of the grantee certifies under penalty of perjury under the laws of California that the grantee has, unless exempted, complied with the nondiscrimination program requirements (Gov. Code, § 12990, subd. (a-f) and California Code of Regulations, Title 2, Section 8103). (Not applicable to public entities.)

Order of Precedence
The performance of this grant shall be conducted in accordance with the Terms and Conditions (Exhibit A), Procedures and Requirements (Exhibit B), Project Summary/Statement of Use, Work Plan, and Budget of this Agreement, or other combination of Exhibits specified on the Grant Agreement Coversheet attached hereto (collectively referred to as “Terms”). Grantee’s CalRecycle-approved Application (Grantee’s Application) is hereby incorporated herein by this reference. In the event of conflict or inconsistency between the articles, exhibits, attachments, specifications or provisions that constitute this Agreement, the following order of precedence shall apply:
(a) Grant Agreement Coversheet and any Amendments thereto (b) Terms and Conditions
(c) Procedures and Requirements
(d) Project Summary/Statement of Use
(e) Budget
(f) Work Plan
(g) Grantee’s Application
(h) All other attachments hereto, including any that are incorporated by reference.

Ownership of Drawings, Plans and Specifications
The grantee shall, at the request of CalRecycle or as specifically directed in the Procedures and Requirements (Exhibit B), provide CalRecycle with copies of any data, drawings, design plans, specifications, photographs, negatives, audio and video 245
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 10 productions, films, recordings, reports, findings, recommendations, and memoranda of every description or any part thereof, prepared under this Agreement. Grantee hereby grants to CalRecycle a royalty-free, nonexclusive, transferable, world-wide license to reproduce, translate, and distribute copies of any and all such materials produced pursuant to this Agreement, for nonprofit, non-commercial purposes, and to have or permit others to do so on CalRecycle’s behalf.

Payment
(a) The approved Budget, if applicable, is attached hereto and incorporated herein by this reference and states the maximum amount of allowable costs for each of the tasks identified in the Work Plan, if applicable, which is attached hereto and incorporated herein by this reference. CalRecycle shall reimburse the grantee for only the work and tasks specified in the Work Plan or the Grantee’s Application at only those costs specified in the Budget and incurred in the term of the Agreement. (b) The grantee shall carry out the work described in the Work Plan or in the Grantee’s Application in accordance with the approved Budget, and shall obtain the Grant Manager’s written approval of any changes or modifications to the Work Plan, approved project as described in the Grantee’s Application or the approved Budget prior to performing the changed work or incurring the changed cost. If the grantee fails to obtain such prior written approval, the Director, at his or her sole discretion, may refuse to provide funds to pay for such work or costs. (c) The grantee shall request reimbursement in accordance with the procedures described in the Procedures and Requirements (Exhibit B). (d) Ten percent will be withheld from each Payment Request and paid at the end of the grant term, when all reports and conditions stipulated in this Agreement have been satisfactorily completed. Failure by the grantee to satisfactorily complete all reports and conditions stipulated in this Agreement may result in forfeiture of any such funds withheld pursuant to CalRecycle’s 10 percent) retention policy. (e) Lodgings, Meals and Incidentals: Grantee’s Per Diem eligible costs are limited to the amounts authorized in the California State Administrative Manual (contact the Grant Manager for more information).
(f) Payment will be made only to the grantee.
(g) Reimbursable expenses shall not be incurred unless and until the grantee receives a Notice to Proceed as described in the Procedures and Requirements (Exhibit B).

Personnel Costs
If there are eligible costs pursuant to Exhibit B, Procedures and Requirements, any personnel expenditures to be reimbursed with grant funds must be computed based on actual time spent on grant-related activities and on the actual salary or equivalent hourly wage the employee is paid for his or her regular job duties, including a proportionate share of any benefits to which the employee is entitled, unless otherwise specified in the Procedures and Requirements (Exhibit B).

Real and Personal Property Acquired with Grant Funds
(a) All real and personal property, including equipment and supplies, acquired with grant funds shall be used by the grantee only for the purposes for which CalRecycle 246
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 11 approved their acquisition for so long as such property is needed for such purposes, regardless of whether the grantee continues to receive grant funds from CalRecycle for such purposes. In no event shall the length of time during which such property, including equipment and supplies, acquired with grant funds, is used for the purpose for which CalRecycle approved its acquisition be less than five (5) years after the end of the grant term, during which time the property, including equipment and supplies, must remain in the State of California.
(b) Subject to the obligations and conditions set forth in this section, title to all real and personal property acquired with grant funds, including all equipment and supplies, shall vest upon acquisition in the grantee. The grantee may be required to execute all documents required to provide CalRecycle with a security interest in any real or personal property, including equipment and supplies, and it shall be a condition of receiving this grant that CalRecycle shall be in first priority position with respect to the security interest on any such property acquired with the grant funds, unless pre- approved in writing by the Grant Manager that CalRecycle will accept a lower priority position with respect to the security interest on the property. Grantee shall inform any lender(s) from whom it is acquiring additional funding to complete the property purchase of this grant condition.
(c) The grantee may not transfer Title to any real or personal property, including equipment and supplies, acquired with grant funds to any other entity without the express authorization of CalRecycle.
(d) CalRecycle will not reimburse the grantee for the acquisition of equipment that was previously purchased with CalRecycle grant funds, unless the acquisition of such equipment with grant funds is pre-approved in writing by the Grant Manager. In the event of a question concerning the eligibility of equipment for grant funding, the burden will be on the grantee to establish the pedigree of the equipment.

Reasonable Costs
A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. Consideration will be given to:
(a) Whether the cost is of a type generally recognized as ordinary and necessary for the performance of the grant.
(b) The restraints or requirements imposed by such factors as generally accepted sound business practices, arms-length bargaining, federal and state laws and regulations, and the terms and conditions of this Agreement.
(c) Whether the individuals concerned acted with prudence in the circumstances, considering their responsibilities to the organization, its members, employees, clients, and the public at large.
(d) Significant deviations from the established practices of the organization which may unjustifiably increase the grant costs.

Recycled-Content Paper
All documents submitted by the grantee must be printed double-sided on recycled- content paper containing 100 percent post-consumer fiber. Specific pages containing full color photographs or other ink-intensive graphics may be printed on photographic paper.

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CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 12 Reduction of Waste
In the performance of this Agreement, grantee shall take all reasonable steps to ensure that materials purchased or utilized in the course of the project are not wasted. Steps should include, but not be limited to: the use of used, reusable, or recyclable products; discretion in the amount of materials used; alternatives to disposal of materials consumed; and the practice of other waste reduction measures where feasible and appropriate.

Reduction of Waste Tires
Unless otherwise provided for in this Agreement, in the performance of this Agreement, for all purchases made with grant funds, including, but not limited to equipment and tire- derived feedstock, the grantee shall purchase and/or process only California waste tires and California waste tire-derived products. As a condition of final payment under this Agreement, the grantee must provide documentation substantiating the source of the tire materials used during the performance of this Agreement to the Grant Manager.

Reimbursement Limitations
Under no circumstances shall the grantee seek reimbursement pursuant to this Agreement for a cost or activity that has been or will be paid for through another funding source. The grantee shall not seek reimbursement for any costs used to meet cost sharing or matching requirements of any other CalRecycle funded program.

All costs charged against the Agreement shall be net of all applicable credits. The term “applicable credits” refers to those receipts or reductions of expenditures that operate to offset or reduce expense items that are reimbursable under this Agreement. Applicable credits may include, but are not necessarily limited to, rebates or allowances, discounts, credits toward subsequent purchases, and refunds. Grantee shall, where possible, deduct the amount of the credit from the amount billed as reimbursement for the cost, or shall deduct the amount of the credit from the total billed under a future invoice.

Reliable Contractor Declaration
Prior to authorizing any contractor or subcontractor to commence work under this Grant, the grantee shall submit to CalRecycle a Reliable Contractor Declaration (CalRecycle 168) from the contractor or subcontractor, signed under penalty of perjury, disclosing whether of any of the events listed in Section 17050 of Title 14, California Code of
Regulations, Natural Resources (https://www.calrecycle.ca.gov/laws/regulations/title14), Division 7, has occurred with respect to the contractor or subcontractor within the preceding three (3) years. If a contractor is placed on CalRecycle’s Unreliable List after award of this Grant, the grantee may be required to terminate that contract.

Remedies
Unless otherwise expressly provided herein, the rights and remedies hereunder are in addition to, and not in limitation of, other rights and remedies under this Agreement, at law or in equity, and exercise of one right or remedy shall not be deemed a waiver of any other right or remedy.

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CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 13 Self-Dealing and Arm’s Length Transactions
All expenditures for which reimbursement pursuant to this Agreement is sought shall be the result of arm’s-length transactions and not the result of, or motivated by, self-dealing on the part of the grantee or any employee or agent of the grantee. For purposes of this provision, “arm’s-length transactions” are those in which both parties are on equal footing and fair market forces are at play, such as when multiple vendors are invited to compete for an entity’s business and the entity chooses the lowest of the resulting bids. “Self-dealing” is involved where an individual or entity is obligated to act as a trustee or fiduciary, as when handling public funds, and chooses to act in a manner that will benefit the individual or entity, directly or indirectly, to the detriment of, and in conflict with, the public purpose for which all grant monies are to be expended.

Severability
If any provisions of this Agreement are found to be unlawful or unenforceable, such provisions will be voided and severed from this Agreement without affecting any other provision of this Agreement. To the full extent, however, that the provisions of such applicable law may be waived, they are hereby waived to the end that this Agreement be deemed to be a valid and binding agreement enforceable in accordance with its terms.

Site Access
The grantee shall allow the state to access sites at which grant funds are expended and related work being performed at any time during the performance of the work and for ninety (90) days after completion of the work, or until all issues related to the grant project have been resolved.

Stop Work Notice
Immediately upon receipt of a written notice from the Grant Manager to stop work, the grantee shall cease all work under this Agreement.

Termination for Cause
CalRecycle may terminate this Agreement and be relieved of any payments should the grantee fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination, CalRecycle may proceed with the work in any manner deemed proper by CalRecycle. All costs to CalRecycle shall be deducted from any sum due the grantee under this Agreement. Termination pursuant to this section may result in forfeiture by the grantee of any funds retained pursuant to CalRecycle’s 10 percent retention policy.

Time is of the Essence
Time is of the essence to this Agreement.

Tolling of Statute of Limitations
The statute of limitations for bringing any action, administrative or civil, to enforce the terms of this Agreement or to recover any amounts determined to be owing to 249
CalRecycle’s Non-Competitive Grant Terms and Conditions – Revised 3/30/21 14 CalRecycle as the result of any audit of the grant covered by this Agreement shall be tolled during the period of any audit resolution, including any appeals by the grantee to the Director.

Union Organizing
By signing this Agreement, the grantee hereby acknowledges the applicability of Government Code Sections 16645, 16645.2, 16645.8, 16646, 16647, and 16648 to this Agreement and hereby certifies that:
(a) No grant funds disbursed by this grant will be used to assist, promote, or deter union organizing by employees performing work under this Agreement. (B) If the grantee makes expenditures to assist, promote, or deter union organizing, the grantee will maintain records sufficient to show that no state funds were used for those expenditures, and that grantee shall provide those records to the Attorney General upon request.

Venue/Choice of Law
(a) All proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder shall be held in Sacramento County, California. The parties hereby waive any right to any other venue. The place where the Agreement is entered into and place where the obligation is incurred is Sacramento County, California. (b) The laws of the State of California shall govern all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder.

Waiver of Claims and Recourse against the State
The grantee agrees to waive all claims and recourse against the state, its officials, officers, agents, employees, and servants, including, but not limited to, the right to contribution for loss or damage to persons or property arising out of, resulting from, or in any way connected with or incident to this Agreement. This waiver extends to any loss incurred attributable to any activity undertaken or omitted pursuant to this Agreement or any product, structure, or condition created pursuant to, or as a result of, this Agreement.

Work Products
Grantee shall provide CalRecycle with copies of all final products identified in the Work Plan. Grantee shall also provide CalRecycle with copies of all public education and advertising material produced pursuant to this Agreement.

Workers’ Compensation/Labor Code
The grantee is aware of Labor Code Section 3700, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the Labor Code, and the grantee agrees to comply with such provisions before commencing the performance of the work of this Agreement.

250

Procedures and Requirements

SB
1383 Local Assistance Grant Program (FY 2021
–
22)

-

First Round Funding

Amended April 2022 1

January 2022

Amended

April 2022

Department of Resources Recycling and Recovery

Exhibit B

Procedures and Requirements

SB
1383 Local Assistance

Grant
Program

First Round Funding

Fiscal Year
2021
–
22 Copies of these Procedures and Requirements
must

be shared with
both
the
Grantee’s
Finance Department
and
the staff responsible for
implementing the grant activities.

ATTACHMENT 3
251

Procedures and Requirements
SB 1383 Local Assistance Grant Program (FY 2021–22) - First Round Funding Amended April 2022 2
Table of Contents

Introduction ................................................................................................................... 3 Milestones ...................................................................................................................... 3 Grants Management System (GMS) ............................................................................. 3 Accessing the Grant .................................................................................................... 4 Contact Updates .......................................................................................................... 4 Prior to Commencing Work .......................................................................................... 5 Reliable Contractor Declaration ................................................................................... 5 Grant Term ..................................................................................................................... 6 Eligible Costs ............................................................................................................... 6 Ineligible Costs ............................................................................................................ 7 Modifications ................................................................................................................ 8 Acknowledgements ...................................................................................................... 8 Reporting Requirements .............................................................................................. 9 Electronic and Original Signatures............................................................................... 9 Progress Report......................................................................................................... 10 Final Report ............................................................................................................... 10 Grant Payment Information ........................................................................................ 10 Expenditure Itemization Summary and Documentation ......................................... 11 Unspent Funds ....................................................................................................... 12 Audit Considerations .................................................................................................. 12 252

Procedures and Requirements
SB 1383 Local Assistance Grant Program (FY 2021–22) - First Round Funding Amended April 2022 3
Introduction
The Department of Resources Recycling and Recovery (CalRecycle) administers the SB 1383 Local Assistance Grant Program. These Procedures and Requirements describe project and reporting requirements, report due dates, report contents, grant payment conditions, eligible and ineligible project costs, project completion and closeout procedures, and records and audit requirements.

This document is attached to, and incorporated by reference, into the Grant Agreement.

Milestones
April 1, 2022: Grant Term Begins: Date CalRecycle sends the award email October November 3, 2022: Expenditure Itemization Summary 1 Due  Covering expenses from April 1, 2022, the Grant Term Start Date through October November 2, 2022
April May 3, 2023: Expenditure Itemization Summary 2 Due  Covering expenses from October November 3, 2022, through April May 2, 2023
October November 2, 2023: Expenditure Itemization Summary 3 Due  Covering expenses from April May 3, 2023, through October November 1, 2023
April May 2, 2024: Expenditure Itemization Summary 4 Due  Covering expenses from October November 2, 2023, through May 2, 2024 April May 2, 2024: Final Report Due
 Covering activities from April 1, 2022 the Grant Term Start Date through April May 2, 2024
April May 2, 2024: Grant Term End

Note: These dates are subject to change. If they change, Grant Managers will notify the Awardees immediately.

Grants Management System (GMS)
GMS is CalRecycle’s web-based grant application and Grants Management System.

Access to GMS is secure; grantees must log in using a WebPass. WebPass accounts are tied to a specific email address. If an email address changes, or if it becomes inactive, the grantee must create a new WebPass account to continue accessing GMS.

Establish or manage a WebPass at CalRecycle’s WebPass page (https://secure.calrecycle.ca.gov/WebPass/).

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Accessing the Grant
Grantees must log in to GMS (https://secure.calrecycle.ca.gov/Grants) using their web pass. After logging in, locate the grant in the My Awarded/Open Grants table and select the Grant Management link. The Grant Management Module includes the following sections:
 Summary tab: Shows approved budget, paid and remaining amounts. (This section is available to the grantee in read-only mode.)  Payment Request tab: Grantee uploads expenditure documentation.  Reports tab: Grantee uploads required reports.
 Documents tab: Grantee uploads all other grant documents that are not supporting documents for an expenditure or a report. This section also provides access to documents that were uploaded within other sections of GMS.

Follow the instructions in GMS to work in the system. The following sections describe the reports, transactions, and supporting documents CalRecycle requires.

Contact Updates
Access to the grant is limited to those listed in the Contacts tab of the Application Module with the “Allow Access” check box marked. A contact may be listed but not granted access by not checking the box. Please note, if a contact is granted access to a grant, they will be able to edit contacts, submit payment requests, upload reports, and view all documents. Those with access may update contact information for all contact types except Signature Authority. Email the assigned Grant Manager regarding any changes to Signature Authority information.
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Prior to Commencing Work
Prior to commencing work under this grant, the grantee’s Grant Manager or primary contact and authorized grant Signature Authority should review the Terms and Conditions (Exhibit A) and the Procedures and Requirements (Exhibit B) to identify key grant administrative requirements. Evaluation of the grantee’s compliance with these requirements is a major focus of grant audits.

Reliable Contractor Declaration
Prior to authorizing a contractor or subcontractor to commence work under this grant, the grantee shall submit to the Grant Manager a declaration from the contractor or subcontractor, signed under penalty of perjury, stating that within the preceding three (3) years, none of the events listed in section 17050 of Title 14 (https://www.calrecycle.ca.gov/Laws/Regulations/Title14/), California Code of Regulations, Natural Resources, Division 7, has occurred with respect to the contractor or subcontractor. The grantee must submit this form for each contractor and subcontractor working under the grant.

If a contractor or subcontractor is placed on the CalRecycle Unreliable Contractor List (https://www.calrecycle.ca.gov/Funding/Unreliability/) after award of this grant, the grantee may be required to terminate the contract. Obtain the Reliable Contractor Declaration form (CalRecycle 168) from CalRecycle's Grant Forms web page (https://www.calrecycle.ca.gov/Funding/Forms/).

The grantee must upload a scanned copy of each signed Reliable Contractor Declaration form in GMS. To upload the form:

1. Go to the Reports tab.

2. Click on Reliable Contractor Declaration under Report Type.

3. Click the Add Document button.

4. Select Reliable Contractor Declaration in the Document Type drop down box, enter a document title, click the Browse button to search and upload the document, and then Save.

5. Click on the Submit Report button.

For further instructions regarding GMS, including login directions, see the “Grants Management System” section (above).
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Grant Term
The Grant Term begins on the date CalRecycle sends the award email April 1, 2022 and ends on April May 2, 2024. The grantee must make all grant-eligible program expenditures and incur all grant-eligible costs within this period. Expenditures made or costs incurred prior to April 1, 2022 the grant term start date or after the grant term end date will be considered ineligible.

The Final Report, final Expenditure Itemization Summary, and Certification Document are due on April May 2, 2024.

Eligible Costs
Grantees may incur eligible costs only during the Grant Term, which starts on the date CalRecycle sends the award email and ends on May 2, 2024 April 1, 2022 and ends April 2, 2024. All grant expenditures must be for activities, products, and costs specifically included in the approved Budget. Costs must be incurred after the term start date. All services must be provided and goods received during this period in order to be eligible costs.

Eligible costs include:
 Personnel
 Consultants
 Safety Equipment
 Vehicles/Trucks
o For compost procurement activities - Vehicles/tractors, turf tires, forklifts or compost slingers
Note: The Grantee needs to own and control the vehicle, however they may allow participants to use the vehicle for grant implementation purposes only.

 Education and Outreach materials
o Print Media
o Television, radio, video, and social media
o Materials offered in other languages
 Door-to-Door Outreach
 Signage
 Recordkeeping or tracking software
o Software to match donor with food bank
o Recordkeeping/reporting software
o Procurement tracking software
o Apps for food recovery
 Inspections and Enforcement
 Training
 Tablet/Electronic Devices (seven inches or more measured diagonally) used for the purposed of organic tracking and Education and Outreach o Maximum price of $500 (excluding sales tax) and limit to one (exceptions may be approved on a case-by-case basis)
o Accessories used for security, protection, and charging 256

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 Equipment
o For larger items, The Grantee needs to own and control the equipment, however, they may allow participants use of said equipment for grant implementation purposes.
 Bins (green and blue only) and lids
o Includes, but is not limited to, curbside, small household food waste pail, labeling, and liners
 Procurement of recovered/recycled organic products
 Equipment
o Food distribution - included refrigeration, coolers, and packing materials

Ineligible Costs
Any costs not specifically included in the approved Budget and not directly related to grant implementation will be considered ineligible. The grantee should contact the Grant Manager if clarification is needed.

Ineligible costs include, but are not limited to:
 Costs incurred prior to April 1, 2022 the Term Start Date or after April May 2, 2024
 Development, purchase, or distribution of strictly promotional give-away items Stuff We All Get, (SWAG) (https://www.calrecycle.ca.gov/Funding/SWAG/)  Purchase or lease of land or buildings
 Equipment or services not directly related to grant implementation  Food dehydrators or liquefiers
 Disposal costs
 Costs currently covered by or incurred under any other CalRecycle loan, grant, or contract
 Cell phones
 Purchase of data plans and/or mobile service plans/hotspots  Costs related to website host and web page domain
 Audit expenses
 Sponsorship or licensing fees for events/programs
 Out-of-state travel
 Conferences and symposiums
 Food or beverages (e.g., as part of meetings, workshops, or events)  Travel costs exceeding the state-approved rates for mileage, per diem, lodging, etc.
o Refer to the Memorandum
(https://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx) for travel policies.
o Reimbursement rates are subject to change at any time by the State of California without prior notification.
 Personnel costs not directly related to grant activities  Fines or penalties due to violation of federal, state, or local laws, ordinances, or regulations
 Any costs for construction projects by charter cities prohibited by Labor Code section 1782
 Any costs not consistent with local, state, or federal laws, guidelines, and regulations
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 The total amount of indirect costs charged to the grant shall not exceed 10 percent of the grant funds reimbursed. These costs are expenditures not capable of being assigned or not readily itemized to a particular project or activity but considered necessary for the operation of the organization and the performance of the program. The costs of operating and maintaining facilities, accounting services, and administrative salaries as well as contractor’s indirect costs in their contracts, are examples of indirect costs. All indirect costs charged to the grant must be associated with grant activities.
 Costs deemed unreasonable or not related to the project by the Grant Manager

Modifications
The grantee must submit any proposed revision(s) to the project in writing to the Grant Manager. The grantee may not incur costs or make expenditures based on the revision without first receiving the Grant Manager’s written approval. Proposed revisions must be accompanied by a summary of proposed changes or modifications, including justification for the proposed changes. If approved, the Grant Manager will upload the final revised changes to GMS and notify the grantee. The grantee should retain the approval document(s) for audit purposes. See the “Audit Record/Access” section of the Terms and Conditions (Exhibit A).

Acknowledgements
The grantee shall acknowledge CalRecycle’s support each time a project is funded, in whole or in part, by this Agreement is publicized in any medium, including news media, brochures, or other types of promotional materials. The acknowledgement of CalRecycle’s support must incorporate the CalRecycle logo. Initials or abbreviations for CalRecycle shall not be used. The Grant Manager may approve deviation from this requirement on a case-by-case basis where such deviation is consistent with CalRecycle’s Communication Strategy and Outreach Plan.

The following items require acknowledgement of funding from CalRecycle and pre- approval from the CalRecycle Grant Manager prior to incurring the expense:
 All television, radio and video scripts
 Functional premiums, if the per unit price is greater than $6.00  Advertisements
 Audio and/or visual material
 Brochures
 Newspaper ads
 Pamphlets
 Other outreach

All publicity and education materials must include the following:

1. “Funded by a grant from CalRecycle.” Exception: The acknowledgement line is not required on small items where space constraints would not allow for this line or if it would interfere with the message.
o There are two acceptable Spanish translations: “Financiado por una beca del CalRecycle” or “Patrocinado por fondos del CalRecycle.” For other languages, the Grantee must work with a certified translator or person fluent in reading and writing that language. All exceptions must be pre- approved in writing by the CalRecycle Grant Manager.
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2. CalRecycle logo (https://www.calrecycle.ca.gov/gallery/) as reflected on the CalRecycle website, can be obtained from the Office of Public Affairs at [email protected].

3. Press Releases – the only requirement is to place the name of “CalRecycle” as an acknowledgement in the body of the release.

Reporting Requirements
The Grant Agreement requires a Final Report; however, the Grant Manager may require additional status information at any time during the Grant Term. Failure to submit the Final Report with appropriate documentation by the due date may result in forfeiture by the grantee of any unspent funds received under this agreement, and repayment of all funds to CalRecycle.

The grantee must upload all reports in GMS. For further instructions regarding GMS, including login directions, see the “Grants Management System” section (above).

To upload a report:

1. Go to the Reports tab.

2. Click on the appropriate Report Type.

3. Click on the Add Document button.

4. Choose the Document Type, enter a document title, click the Browse button to search and upload the document, and then Save.
 Select the Back button to upload another document and continue the process until all required documents as listed below are uploaded.  The maximum allowable file size for each document is 35MB.

5. Click the Submit Report button to complete your report submittal. The Submit Report button will not be enabled until all required reporting documents are uploaded.

Failure to comply with the specified reporting requirements may be considered a breach of the Grant Agreement and may result in the termination of the Grant Agreement, and/or forfeiture by the grantee of claims for costs incurred that might otherwise have been eligible for grant funding. The grantee must report any problems or delays immediately to the Grant Manager.

Electronic and Original Signatures
CalRecycle now allows for certified e-Signature or original wet signature on documents or forms that certify legally binding information.

Note: E-signatures must include the first and last name of the Signature Authority, be in the Adobe Digital ID format (or through another certified digital signature program) and cannot be the “Fill and Sign” function within Adobe. Any documents using the “Fill and Sign” method is considered incomplete and may be sent back to the grantee.

If you have questions, email [email protected]. 259

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Progress Report
Grantees with awards over $1,000,000 will need to collect and submit information on any jobs created or paid by the grant on a bi-annual basis. Grant Managers will work with Grantees on when and how to submit the information. CalRecycle will provide a report template at a later date. Progress reports must include the following:
 Jobs
o Provide number of jobs created and paid for in whole or in part by this grant during the reporting period. Include job title or classification, job permanence, total project work hours, hourly pay rates or salaries, as well as benefits from the job, such as healthcare, paid vacation or sick leave and hiring strategy.
 Jobs provided to members of Priority Populations.
o In addition to the item, above, provide the same jobs information for any positions filled by members of priority populations. More information about Priority Populations can be found at California Air Resources Board Priority Population Investments webpage (www3.arb.ca.gov/cc/capandtrade/auctionproceeds/communityinvestm ents.htm).

Note: This requirement is subject to change at CalRecycle’s discretion. If any reporting requirement changes, Grant Managers will notify the Awardees.

Final Report
The Final Report is due April May 2, 2024 (report template will be provided at a later date). This report should cover grant activities from April 1, 2022 the Term Start Date through April May 2, 2024. The grantee must include the following items in the Final Report:

1. The Grant Number, grantee’s name, and Grant Term.

2. The following disclaimer statement on the cover page:
“The statements and conclusions of this report are those of the grantee and not necessarily those of the Department of Resources Recycling and Recovery (CalRecycle), its employees, or the State of California. The state makes no warranty, express or implied, and assumes no liability for the information contained in the succeeding text.”

Note: This requirement is subject to change at CalRecycle’s discretion. If any reporting requirement changes, Grant Managers will notify the Grantees.

Grant Payment Information
 CalRecycle will make grant payments to only the grantee. It is the grantee’s responsibility to pay all contractors and subcontractors for purchased goods and services. CalRecycle will make payments to the grantee as promptly as fiscal procedures permit.
 The grantee must provide a Reliable Contractor Declaration (CalRecycle 168) (https://www.calrecycle.ca.gov/Funding/forms/) signed under penalty of perjury by the grantee’s contractors and subcontractors in accordance with the “Reliable Contractor Declaration” section of the Terms and Conditions (Exhibit A). The declaration must be received and approved by the Grant Manager prior to 260

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commencement of work. See the “Reliable Contractor Declaration” section in Terms and Conditions (Exhibit A) for more information.

Expenditure Itemization Summary and Documentation
The grantee must submit the EIS and Certification Document (a template will be provided at a later date) in GMS. For further instructions regarding GMS, including login directions, see the “Grants Management System” section (above). Please refer to the “Milestones” section (above) for required due dates.

 Expenditure Itemization Summary (EIS)
o All expenditures must be itemized and arranged by the reporting and expenditure categories as contained in the grantee’s Budget tab. o Grantees are required to maintain supporting documentation pertaining to the EIS and may be required to provide them at the request of the Grant Manager at any time.
 Certification Document
o The Signature Authority will need to certify under penalty of perjury that information provided in the EIS is correct.

Note: This requirement is subject to change at CalRecycle’s discretion. If any expenditure reporting requirement changes, Grant Managers will notify the Awardees.

Failure to submit the EIS and Certification Document by the due date may result in the forfeiture by the grantee of claims for costs incurred that might otherwise have been eligible for grant funding.

To submit an EIS:

1. Go to the Payment Request tab.

2. Click on the Create a Payment Request button.
a. Choose Advance Reconcile for the Transaction Type and enter the amount spent in each budget subcategory.
b. When the transaction is complete, click the Save button. c. After the transaction is saved, the Upload Supporting Documents button will appear in the lower right corner.

3. Click the Upload Supporting Documents button.
a. Choose the Document Type, enter a document title, click the Browse button to search and upload the document, and then Save. b. Select the Back button to upload another document and continue this process until all required supporting documents as listed below are uploaded.
c. The maximum allowable file size for each document is 35MB.

4. Click the Submit Transaction button, located on the transaction page, to complete your payment request. The Submit Transaction button will not be enabled until all required supporting documents are uploaded.

Note: Once a transaction is saved, select the transaction number from the Payment Request tab to access it again. Please do not create multiple transactions for the same requested funds.
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Unspent Funds
Funds that are unspent at the end of the grant term must be returned by check to CalRecycle by June 15, 2024 May 16, 2024. Checks should be made payable to the Department of Resources Recycling and Recovery. Checks must contain the Grant Number (i.e., OWR1-21-xxxx), specify “SB 1383 Local Assistance Grant Unspent Funds,” and be mailed to:

CalRecycle Accounting
SB 1383 Local Assistance Grant Unspent Funds
PO Box 4025
Sacramento, CA 95812-4025

Unspent funds due to CalRecycle but left unpaid may result in ineligibility for future grant and payment program funding. If there are questions or other issues related to expenditures, work with your Grant Manager to resolve these issues.

Audit Considerations
The grantee agrees to maintain records and supporting documentation pertaining to the performance of this grant subject to possible audit for a minimum of three (3) years after Final Report approval date or Grant Term end date, whichever is later. CalRecycle may stipulate a longer period of records retention in order to complete any action and/or resolution of all issues which may arise as a result of any litigation, dispute, or audit, whichever is later.

Examples of audit documentation include, but are not limited to, competitive bids, grant amendments, copies of any agreements with contractors or subcontractors if utilized, expenditure ledger, payroll register entries, time sheets, Expenditure Itemization Summary forms, payment supporting documentation, paid warrants, contracts and change orders, samples of items and materials developed with grant funds, invoices, and cancelled checks. Please refer to the Terms and Conditions (Exhibit A) for more information.
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City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-762 Meeting Date: 6/21/2022
TITLE:

BUSINESS IMPROVEMENT AREA (BIA) REAUTHORIZATION, RESOLUTION TO LEVY ANNUAL

ASSESSMENT
DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: ALMA REYES, ASSISTANT TO THE CITY MANAGER CONTACT INFORMATION: ALMA REYES, ASSISTANT TO THE CITY MANAGER (714) 754-5090 RECOMMENDATION:

Staff recommends that the City Council:

1. Conduct a public hearing regarding the Business Improvement Area (BIA) reauthorization and levy of the annual assessment for Fiscal Year 2022-2023.

2. Adopt Resolution No. 2022-XX, confirming the annual report filed by Travel Costa Mesa and levying an annual assessment for Fiscal Year 2022-23 for the Business Improvement Area (BIA) covering certain Costa Mesa hotels and motels (Attachment 1).

3. Approve the use of $164,000 in Federal American Rescue Plan Funds as revenue recovery for City activities, programs and events, until annual hotel tax and BIA revenues are restored to normal levels.

BACKGROUND:

The Parking and Business Improvement Area Law of 1989 (Streets and Highways Code section 36500, et seq.) enables cities to impose an assessment fee on businesses within an area designated by the City.

On July 5, 1995, the City Council adopted Ordinance No. 95-9 to establish a Business Improvement Area (BIA) for the purpose of assisting the hotel and motel industry in its promotion of tourism within the City. In June 2017, the City Council adopted Ordinance 17-10, which amended Section 3 of Ordinance No. 95-9, clarifying voluntary participation in the BIA and improvements and activities to be funded by the revenue collected from the levy of assessment.

The City entered into an agreement with the Costa Mesa Tourism and Promotion Council to develop and administer the BIA. In 2001, the Costa Mesa Conference & Visitor Bureau (CVB), now known as Travel Costa Mesa (TCM), became the administrator of the BIA.

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In accordance with TCM bylaws, TCM’sBoard of Directors is currently comprised of eleven (11) General Managers from the eleven (11) participating hotels and motels, one member of the City Council, and the City Manager’s designee.

Since November 2010, the City has levied a three percent (3%) special assessment on the eleven (11) participating hotels in the BIA based on the sale of overnight guestroom stays in the partner hotels (2,375 total available rooms). The levy is transmitted by the hotels to the City and ninety- nine percent (99%) of the assessment is remitted to TCM. The remaining one percent is retained by the City to offset administrative costs.

At the May 17, 2022, City Council meeting, the City Council approved a resolution declaring the intention to levy an annual assessment for Fiscal Year 2022-2023 and set a public hearing for June 21, 2022, at 7 p.m. Staff mailed out notices, including a copy of the resolution, to all hotel and motel owners on file with the City. Hotel and motel owners were notified of the proposed assessment renewal and their opportunity to protest the annual assessment or raise other concerns regarding the BIA.

ANALYSIS:

Property owners will be provided an opportunity to speak in support of, protest the annual assessment, and/or address any concerns regarding the BIA at the public hearing. The City Council will vote to adopt or deny the resolution levying an annual assessment for the upcoming fiscal year, and makes the ultimate decision as to the size of and the properties to be included in the BIA. Upon the approval of the annual assessment, the three percent (3%) assessment is collected along with the City’sTransient Occupancy Tax (TOT). The hotels and motels included in the BIA are required to itemize the BIA levy as a separate assessment. The staff at TCM manage the day-to-day activities and provide all services to administer the BIA.

Per the agreement between the City of Costa Mesa and TCM, and as required by Streets and Highways Code section 36533, TCM is required to provide an annual report describing the programs and activities implemented during the previous fiscal year as well as the status of the programs and activities implemented during the current fiscal year. In addition to the annual report, TCM staff has prepared a video presentation that highlights objectives and accomplishments during the previous year and provides a status update of ongoing activities and future promotional and marketing plans that help attract visitors to Costa Mesa.

Highlights of the 2021-2022 Fiscal Year
Travel Costa Mesa continues its dedication to showcasing the City of Costa Mesa as the City of the ArtsTM and further enhancing the City’sbrand as a premier destination city in Orange County. Their efforts included innovative ways to partner with influencers and content creators to amplify messaging across various platforms, summer and holiday co-ops with Visit California, and meetings guide videos.

Despite the varied opportunities for economic activity within the tourism industry, due to the Delta and Omicron COVID-19 variants in the fall and winter of 2021, TCM continued its efforts in marketing, media and communications relations, and group sales.

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TCM’swebsite increased new website users by 6.73% and page views by 5.05% over the calendar year. Organic search traffic grew considerably due to search engine optimization efforts, gaining 140.50% year over year.

Media and community relations continued with influencers and traditional publication sites, such as Benzinga, MarketWatch, Yahoo Finance, Voice of OC, Los Angeles Times, Daily Pilot, StreetInsider, Michelin Guide, Visit California, and more. TCM’spress releases throughout this time generated over 361.6 million cumulative impressions, a 31.5% increase from the previous fiscal year.

Group sales continued with partner hotels, where TCM generated over 200 leads, representing over 800,000 room nights, and booked 25 meetings and events with 4,799 rooms at partner hotels.

ALTERNATIVES:

City Council may choose not to adopt the resolution, which will prevent the City from levying an annual assessment for the upcoming fiscal year.

FISCAL REVIEW:

According to the audit report, TCM’scash equity as of June 30, 2021 totaled $2,219,851. Based on the 2021-22 annual report, TCM is forecasting to come in at $2.184 million in income for the current fiscal year. As of February 2022, BIA revenues were at $1.592 million, a 125% increase from the previous fiscal year. However, FY 21-22 forecasting shows a 6% decrease compared to FY 19-20.

The City receives one percent (1%) of the BIA revenue/assessment as partial reimbursement for its collection and administrative costs. The one percent (1%) allocated to the City for reimbursement is estimated at $21,840 for the 2021-2022 Fiscal Year.

Since 2014, TCM has also provided funding to the City to support community-wide marketing and community events that attract many visitors to Costa Mesa under a Professional Services Agreement (PSA). The City began budgeting the TCM Community Events Programing for a total of $164,000 within the City’sfinancial system. This budget typically is added annually as an addendum to the existing Professional Services Agreement between the City and TCM, approved by City Council at a public hearing.

In March 2020, the COVID-19 pandemic triggered suspension of all community events and a majority of City programs. The on-going pandemic had a significant financial impact on TCM’s operational budget, resulting in the suspension of TCM’s community events budget for Citywide marketing and support of community events, for example, ARTventure, Annual Snoopy House, Summer Concerts in the Park and more.

Although the TCM community event funds were not available during FY 20-21 and FY 21-22, City staff managed to host community events, following all State and Federal COVID-19 guidelines. The expenses for the events, historically funded by TCM, were absorbed in the General Fund from vacancy savings.

As the country emerges from the pandemic and State guidelines loosened, the City intends to resume all special community events and marketing efforts to pre-pandemic levels. However, in order to provide an additional year of revenue recovery to pre-pandemic levels, staff recommends the use

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to provide an additional year of revenue recovery to pre-pandemic levels, staff recommends the use of $164,000 from American Rescue Plan Funds as revenue backfill to funds these events as annual Hotel Tax and BIA revenue has not fully recovered.

LEGAL REVIEW:

The City Attorney’sOffice reviewed this report and has reviewed and approved the resolution as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the City Councils continuous efforts to promote the City of Costa Mesa for its rich and vibrant community that offers many attractions for residents, visitors and businesses.

CONCLUSION:

State law mandates the specific procedure to be followed in the establishment of business improvement areas and the levying of a voluntary annual assessment. Adoption of the attached resolution is the final step in the reauthorization of the BIA assessment, and the City Council must adopt the proposed resolution before an annual assessment can be levied for Fiscal Year 2022- 2023.

Therefore, staff recommends that the City Council:

1. Conduct a public hearing regarding the Business Improvement Area (BIA) reauthorization and levy of the annual assessment for Fiscal Year 2022-2023.

2. Adopt Resolution 2022-xx, confirming the annual report filed by Travel Costa Mesa and levying an annual assessment for Fiscal Year 2022-23 for the Business Improvement Area covering certain Costa Mesa hotels and motels (Attachment 1).

3. Approve the use of $164,000 in Federal American Rescue Plan Funds as revenue recovery for City activities, programs and events, until annual hotel tax and BIA revenues are restored to normal levels

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Resolution No. 2022-xx Page 1 of 7

RESOLUTION NO. 2022-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA,

CONFIRMING THE ANNUAL REPORT FILED BY TRAVEL COSTA MESA AND LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2022-2023 FOR A BUSINESS IMPROVEMENT

AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS

THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS:

WHEREAS, in adopting the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.), the California Legislature authorized cities to levy assessments on businesses in order to promote economic revitalization and tourism, to create jobs, attract new businesses, and prevent erosion of business districts; and WHEREAS, on July 5, 1995, by Ordinance No. 95-9, the City Council adopted a business improvement area, commonly known as the Costa Mesa Tourism & Promotion Business Improvement Area (“BIA”), the purpose of which is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel businesses within the City of Costa Mesa; and
WHEREAS, the eleven (11) hotels and motels listed in Exhibit A, attached hereto and incorporated herein by this reference, are currently subject to the assessment; and WHEREAS, the City Council appointed the general managers of the 11 hotels and motels subject to the assessment to serve as the advisory board as required by California Streets and Highways Code Section 36530; and
WHEREAS, said advisory board is known as Travel Costa Mesa (“TCM”); and WHEREAS, the City Council has voted to continue the special assessment for the BIA each year since its inception, and it has been levied upon the 1 1 hotel and motel businesses listed in Exhibit A; and
WHEREAS, in January 2000, the City Council approved an increase in the assessment, raising the assessment from one percent (1%) to two percent (2%) based on the sale of overnight room stays; and
WHEREAS, in November 2010, the City Council approved an increase in the assessment, raising the assessment from two percent (2%) to three percent (3%) based on the sale of overnight room stays; and
WHEREAS, the City desires to levy and collect a three percent (3%) assessment wit hin the BIA for Fiscal Year 2022-2023; and

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Resolution No. 2022-xx Page 2 of 7

WHEREAS, on May 1 7, 2022, the City Council adopted Resolution No. 2022-23, a resolution of intention to levy an assessment for Fiscal Year 20 22-2023, pursuant to California Streets and Highways Code Section 36534; and
WHEREAS, the City Council has conducted a public hearing pursuant to California Streets and Highways Code Section 36535; and
WHEREAS, the City Council now desires to confirm the annual report as filed by TCM and adopt this Resolution to levy the assessment for the 2022-2023 Fiscal Year.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows:

Section 1. Annual Report. The City Council hereby confirms the annual report on the Business Improvement Area as originally filed by Travel Costa Mesa in accordance with California Streets and Highways Code § 36535. The report shall be kept on file in the City Clerk’s Office.

Section 2. Assessment. An annual assessment for the BIA shall be levied pursuant to California Streets and Highways Code §§ 36500 et seq. The boundaries of the territory are the 11 motels and hotels listed in Exhibit A. The amount of the annual assessment is three percent (3%) based on th e sale of overnight room stays. New hotel and motel businesses commenced after the effective date of the resolution levying the assessment will be exempt from the levy of assessment pursuant to California Streets and Highways Code § 36531.

Section 3. Types of Activities to Be Funded. The type or types of activities to be funded by and through the annual levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council Business Improvement Area are specified in the referenced annual report and Exhibit B, attached hereto and incorporated herein.

Section 4. Reporting and Remitting to the City of Costa Mesa Finance Department. Each hotel/motel owner shall separate the Business Improvement Assessment from the Transient Occupancy Ta x on guest billing statements. The specific term “Business Improvement Assessment” shall be included on the billing to identify the assessment amount. The hotel/motel owner shall collect and subsequently remit the assessment to the Costa Mesa Finance Department at the same time and manner as the Transient Occupancy Tax. A ten percent (10%) penalty and half percent (0.5%) interest will be assessed on late remittances.

Section 5. Method and Basis of Levy . To allow each business owner to estimate the amount of the assessment to be levied against his or her business, t he method and basis of levying the assessment are s et forth in the annual report relative to the Business Improvement Area, Ordinance No. 95-9, and Exhibit B.

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Resolution No. 2022-xx Page 3 of 7

PASSED AND ADOPTED this 21st day of June, 2022.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

_____________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2022-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 21st day of June, 2022, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 21st day of June, 2022.

___________________________
Brenda Green, City Clerk

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Resolution No. 2022-xx Page 4 of 7

EXHIBIT A

The Business Improvement Area (“BIA”) benefit zone encompasses the entire City of Costa Mesa boundaries. It is anticipated that the entire City, including businesses and residents, will benefit from increased revenues generated by the activities financed by the BIA assessment.

The following businesses will be included in the BIA that is established pursuant to California Streets and Highways Code §§ 36500 et seq., the businesses commonly known as:

Avenue of the Arts, A Tribute Portfolio Hotel

Property Address: 3350 Avenue of the Arts, Costa Mesa

Business Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627

Property Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627

Ayres Country Inn & Suites

Property Address: 325 Bristol Street, Costa Mesa

Business Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A
Costa Mesa, CA 92626

Property Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A
Costa Mesa, CA 92626

Best Western Plus Newport Mesa Inn

Property Address: 2642 Newport Boulevard, Costa Mesa

Business Owner: James Hsuen
Shang-Pu Lee
2642 Newport Boulevard,
Costa Mesa, CA 92627

Property Owner: James Hsuen
Shang-Pu Lee
2642 Newport Boulevard,
Costa Mesa, CA 92627
270

Resolution No. 2022-xx Page 5 of 7

Crowne Plaza

Property Address: 3131 Bristol Street, Costa Mesa

Business Owner: Brighton Management
20342 SW Acacia St.

Newport Beach, CA 92660

Property Owner: Bright Bristol Street LLC
3131 Bristol Street
Costa Mesa, CA 92626

Hilton

Property Address: 3050 Bristol Street, Costa Mesa

Business Owner: Ashford TRS CM LLC
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254

Property Owner: Remington Lodging & Hospitality LP
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254

Holiday Inn Express Hotel & Suites

Property Address: 2070 Newport Boulevard, Costa Mesa

Business Owner: Narendra B. Patel
2070 Newport Blvd.

Costa Mesa, CA 92667

Property Owner: Narendra B. Patel
2070 Newport Blvd.

Costa Mesa, CA 92667

Costa Mesa Marriott

Property Address: 500 Anton Boulevard, Costa Mesa

Business Owner: Starwood Capital Group
591 West Putnam Avenue
Greenwich, CT 06830

Property Owner: HEI Hotels & Resorts
101 Merritt 7 Corporate Park, 1st Floor
Norwalk, CT 06851
271

Resolution No. 2022-xx Page 6 of 7

OC Hotel Costa Mesa (Formerly BLVD Hotel)

Property Address: 2430 Newport Boulevard, Costa Mesa

Business Owner: Sai Hospitality Services, LLC
11556 Manchester Way
Porter Ranch, CA 91326

Property Owner: Sanjay Panchal
11556 Manchester Way
Porter Ranch, CA 91326

Ramada Inn & Suites Costa Mesa

Property Address: 1680 Superior Avenue, Costa Mesa

Business Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.

Costa Mesa, CA 92627

Property Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.

Costa Mesa, CA 92627

Residence Inn by Marriott

Property Address: 881 Baker Street, Costa Mesa

Business Owner: Marriott International
10400 Fernwood Rd.

Bethesda, MD 20817

Property Owner: BRE Select Hotels and Resorts
6201 15th Avenue
Brooklyn, NY 11219

The Westin South Coast Plaza Hotel

Property Address: 686 Anton Boulevard, Costa Mesa

Business Owner: Host Hotels & Resorts
6903 Rockledge Dr., Suite 1500
Bethesda, MD 20817

Property Owner: CJ Segerstrom & Sons
c/o South Coast Plaza
686 Anton Boulevard
Costa Mesa, CA 92626
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Resolution No. 2022-xx Page 7 of 7

EXHIBIT B

The BIA assessment will be used to fund Travel Costa Mesa (“TCM”). TCM will fund activities to promote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City.

Revenue

A three percent (3%) levy will be assessed against each of the 11 hotels listed in Exhibit A, based on the net revenue from the sale of overnight room stays.

Business owners shall pay the assessment to the Costa Mesa City Finance Department on a monthly basis. A penalty and interest shall be assessed on late payments.

Note: New hotel and motel businesses commenced after the effective date of this resolution will be exempt from the levy of assessment.

273
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-758 Meeting Date: 6/21/2022
TITLE:

INTRODUCTION OF AN ORDINANCE TO APPROVE CODE AMENDMENT CO-2022-XX, AMENDING PORTIONS OF TITLE 10 OF THE COSTA MESA MUNICIPAL CODE PERTAINING TO

PARKING BY PERMIT ONLY AND TO AUTHORIZE RELATED FEES
DEPARTMENT: PUBLIC WORKS DEPARTMENT/ TRANSPORTATION

SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: JENNIFER ROSALES, TRANSPORTATION SERVICES MANAGER, (714) 754-5343
RECOMMENDATION:

Staff recommends the City Council:

1. Introduce for first reading, by title only, Ordinance No. 2022-xx, to approve Code Amendment CO-2022-xx, amending portions of Title 10 of the Costa Mesa Municipal Code (CMMC) pertaining to parking by permit only and to authorize related fees.

2. Approve proposed Amendment No. 3 to the Professional Services Agreement with Dixon Resources Unlimited increasing the maximum compensation by $60,950 for Residential Permit Parking Support Services, for a total not-to-exceed amount of $192,950.

3. Authorize the City Manager and the City Clerk to execute the amendment and future authorized amendments to the agreement.

BACKGROUND:

The revised Residential Permit Parking (RPP) program guidelines and policies (Attachment 3) were approved by the City Council on May 3, 2022 at its regular meeting. The guiding principles employed in the development of the City’s revised RPP program include:
· Equitable access: Develop equitable programs that appropriately balance the parking needs of all residents, businesses, and visitors, while enabling the on-street parking supply to serve the community fairly, and enhance access for all.
· Sustainable solutions: Implement financially sustainable strategies that modernize and streamline parking program management.
· Efficient program management: Create an efficient and adaptable parking system that is

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File #: 22-758 Meeting Date: 6/21/2022
optimized for the City’s current needs, but can be incrementally updated and adjusted over time.

Key features of the new program include the following:
· RPP will be limited to areas experiencing external parking impacts from commercial areas, neighboring cities, Fairgrounds and recreational areas; · There is no change in petition and staff review processes for RPP; · All housing types within impacted areas are eligible for permits; · One permit per eligible driver based on verification of residence and vehicle registration; and · There will be an annual permit parking fee with an escalating rate structure.

At the May 3, 2022 regular meeting, City Council authorized staff and the City Attorney to initiate amendments to the Costa Mesa Municipal Code (CMMC) incorporating proposed changes to the Residential Permit Parking program and return to City Council for approval through a Public Hearing process. In addition, the City Council approved in concept the implementation of an annual residential parking permit fee with an escalating rate structure and discount for qualifying low-income residents. The proposed fee rates for the residential permit parking program will be reviewed and considered by the City Council at a future meeting.

A Professional Services Agreement with Dixon Resources Unlimited for the Citywide Parking Study of the Residential Permit Parking program was approved by the City Council on January 21, 2020 to identify viable solutions including both short-term and long-term solutions to parking impacted neighborhoods. The scope of work included extensive stakeholder input, a parking analysis of existing and future parking conditions, alternative parking management strategies and an implementation plan.

ANALYSIS:

The Proposed amendments to Title 10 of the Costa Mesa Municipal Code (CMMC) were developed to incorporate proposed changes to the Residential Permit Parking program. The proposed changes to the CMMC pertain to Parking by Permit Only and to require the payment of related fees to be adopted by the City Council. At the July 19, 2022 meeting, the City Council will review and consider establishing and adopting these residential permit parking fees.

In order to implement the revised Residential Permit Parking Program, residential permit parking management support services are needed from Dixon Resources Unlimited. Therefore, an amendment to the PSA with Dixon Resources Unlimited is proposed for their services in the implementation phase. Dixon Resources Unlimited will support the transition of the permit process, assist in implementing the updated permit program policy, provide guidance for the new permit fee structure, and ensure seamless integration with existing parking technologies. Dixon Resources Unlimited will also manage an extensive public outreach and education campaign to ensure a smooth transition for the new residential permit program.

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File #: 22-758 Meeting Date: 6/21/2022
ALTERNATIVES:

One alternative would be to not approve the ordinance. However, this would result in the Costa Mesa Municipal Code being out of compliance with revised Council-approved residential permit parking program.

Another alternative would be to not approve the proposed amendment to the PSA with Dixon Resources Unlimited. However, this would result in delays in the implementation of the revised residential permit parking program, as staff will need to secure services of another consultant for this purpose.

FISCAL REVIEW:

If approved, the initial implementation cost for the new Citywide Residential Permit Parking program is estimated to be $220,000, included in the department’sFiscal Year 2022-23 Operating Budget.

Funding of the proposed amendment to the PSA with Dixon Resources Unlimited is included in the proposed implementation cost of the new Citywide Residential Permit Parking program.

LEGAL REVIEW:

The City Attorney’sOffice has reviewed this report, prepared the proposed ordinance and the PSA amendment and approves them both as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This project supports the following City Council goals:
· Achieve long-term fiscal sustainability.
· Strengthen the public’s safety and improve the quality of life. · Advance environmental sustainability and climate resiliency.

CONCLUSION:

Staff recommends the City Council:

1. Introduce for first reading, by title only, Ordinance No. 2022-xx to approve Code Amendment CO-2022-xx, amending Article 3 of Title 10 of the Costa Mesa Municipal Code (CMMC) pertaining to parking by permit only (Attachment 1).

2. Approve proposed Amendment No. 3 (Attachment 2) to the Professional Services Agreement with Dixon Resources Unlimited increasing the maximum compensation by $60,950 for Residential Permit Parking Support Services, for a total not-to-exceed amount of $192,950.

3. Authorize the City Manager and the City Clerk to execute the amendment and future authorized amendments to the agreement.

276
ORDINANCE NO. 2022-xx

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA AMENDING ARTICLE 3 (PARKING BY PERMIT

ONLY) OF CHAPTER XI (STOPPING, STANDING OR PARKING

RESTRICTED OR PROHIBITED ON CERTAIN STREETS) OF
TITLE 10 (MOTOR VEHICLES AND TRAFFIC) OF THE COSTA

MESA MUNICIPAL CODE RELATING TO RESIDENTIAL PERMIT

PARKING
WHEREAS, the City Council of the City of Costa Mesa adopted a Residential Permit Parking Program (RPP) in January 2016; and
WHEREAS, the RPP helps to relieve parking congestion on public streets adjacent to impacted residential areas by vehicles unrelated to the neighborhood; and WHEREAS, parking demands from single-family residential, multi-family residential, and commercial parking shortages in recent years have caused significant parking impacts on other adjacent residential neighborhoods; and WHEREAS, the City has received significant feedback from residents and business owners related to the limited parking on public streets; and WHEREAS, the City considered the following criteria and interests while drafting amendments to the RPP, including that there is a growing number of vehicles per household, older neighborhoods were originally designed for a lower parking demand, there is insufficient parking within multi-family communities, and many garages are used for storage; and
WHEREAS, when a single-family street becomes a newly designated residential permit parking street, vehicles are displaced and moved to other streets, and streets that are designated with residential permit parking oftentimes are less utilized since residents not living on that street are displaced and must find parking elsewhere, resulting in an unintended impact on surrounding streets; and
WHEREAS, the City caused to be conducted a Citywide Parking Study in January 2020, which engaged stakeholders, sought to understand parking challenges, evaluated the current RPP, and developed recommendations for the City’s parking operations; and WHEREAS, during the Citywide Parking Study, over 40 community members attended a community outreach meeting where they expressed support for implementing a residential parking permit fee and keeping an RPP; and ATTACHMENT 1
1 (REDLINE VERSION)
277
WHEREAS, the findings of the Citywide Parking Study led to the amended RPP’s principles which are equitable access, sustainable solutions, and efficient program management; and
WHEREAS, the City’s amended RPP is aligned with the Attorney General’s opinion which recommends that cities do not distinguish among residents based on the type of dwellings in which they live when issuing residential parking permits; and WHEREAS, the City Council held a duly noticed public hearing on Ordinance No. 2022-XX on _____, 2022, at which time it considered all evidence presented, both written and oral; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE COSTA MESA CITY COUNCIL DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Article 3 (Parking by Permit Only) of Chapter XI (Stopping, Standing or Parking Restricted or Prohibited on Certain Streets) of Title 10 (Motor Vehicles and Traffic) of the Costa Mesa Municipal Code is hereby amended to read as follows:

ARTICLE 3. PARKING BY PERMIT ONLY
10-221. Parking of unpermitted vehicles prohibited.

When authorized signs have been posted pursuant to resolution of the city council and are in place giving notice of restrictions, it is unlawful and an infraction for any person to park any vehicle on any public street or alley so restricted, unless a parking permit therefor has been issued by the City of Costa Mesacity and is displayed on the vehicle, as provided for in this article. This restriction shall not apply to police vehicles or other authorized emergency vehicles and/ or cCity-owned vehicles when used for official business, or to service vehicles, clearly marked as such, while the owner or operator of the vehicle is providing a service to a residence located in that residential permit parking zone. (Ord. No. 16-02, § 1, 1-19-16)
10-221.1. Issuance of permits to residents.

Except for emergency permits and as otherwise provided for in section 10-221.2, parking permits may be issued only to residents of single-family dwellings located in the R1 Zone ofin those areas where parking has been limited or prohibited pursuant to this article as a residential permit parking only zonezone. (Ord. No. 16-02, § 1, 1-19-16) 10-221.2. Types of permits.
(a) Residential parking permits.
(1) Except as otherwise provided for in this article , a residents of a dwelling unit of a single-family dwelling or a multi-family dwelling that is located in an R1 single- Formatted: Font: Font color: Text 1
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ATTACHMENT 1
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family residential district on a streetwithin an area that has been designated as a residential permit parking only street zone may be assignedissued up to one (1) resident parking permit per eligible driver with a maximum of three (3) permits per dwelling unit obtain a maximum of three (3) residential parking permits per single family dwelling or dwelling unit by filing an application therefore with the public services department pursuant to the provisions of this article. (2) A motor vehicle that has been assignedissued and displays a residential parking permit for a residential parking zone shall be permitted to stand and/or or be parked in that the residential parking permit areazone for which the permit has been assigned without being limited by the timeparking restrictions established pursuant to this article. Residents of a single-family dwelling located in other than an R1 single-family residential district where such dwelling is located within two hundred fifty (250) feet of a permit parking street may obtain a parking permit for that parking zone.
(3) The parking permits may be color coded by parking zones established by resolution of the city council. Any parking permit issued for a specific zone shall only be valid for parking in that zone.
(4)(3) The number of No more than three (3) residential parking permits that shall be authorized issued to any one residence or dwellingdwelling unit is setmay be set forth in the Guidelines policyunless otherwise authorized by the transportation services manager pursuant to section 10-221.3. (5) For purposes of this article “single-family dwelling” and “multi-family dwelling” shall have the same meanings as set forth in Title 13.
(b) Guest parking permits.
(1) Each resident parking permit holder may obtain apply for temporary guest parking permits as permitted by the Guidelines, for use by his or her guest s in thea parking zone where the permit holder resides by filing providingfilingsubmitting an application therefore with to the public services department.
(2) A resident parking permit holder may receive up to a maximum of one hundred (100) guest parking permits per year per residencedwelling unit, which may be issued displayed by guests of succh resident parking permit holder. to his or her guest.
(2)
(3) A resident parking permit holder may receive apply for up to an additional twenty-five (25) guest parking permits per event for specific events at the residence, . Specific event permits shall have the date of the event printed on them by the public services department. (4) The length of time guest permits are valid after being assigned is set forth in the Guidelines. The guest parking permit will be valid until noon on the day after the date of issuance by such resident. (Ord.

No. 16-02, § 1, 1-19-16)
(c) Residential Permit Parking Policy.

Commented [A1]: As written, conflicts with (1)
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ATTACHMENT 1
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The city council, and/or the city manager and/or designee may adopt policies and/or administrative regulations to implement this article, governingincluding but not limited to the establishment of residential permit parking zones and, the criteria for the and and issuance, denial, revocation, of duration and/or number of permits therefore pursuant to this artic.,le,
10-221.2.5. Definitions
Words and phrases not defined herein shall have the meanings ascribed to them in this Title 10, Title 1 and Title 13.

Director – the director of the public services department or his or her designee.

Permit – means a residential parking permit issued by the director pursuant to the provisions of this article.

Residential permit parking policy or policy – means the residential permit parking policy and/or administrative regulations adopted by the city to implement this article pursuant to section 10-221(c).

Residential permit parking zone or zone – a contiguous area within the city that comprised of one or more streets and/or alleys that hashave been designated for parking by residents of that area only pursuant to this article.
10-221.3. Application for permit and action thereon.
(a) To be be assigned obtainissued a residential parking permit, the applicant shall provide the following information, at minimum, to personally appear at the public services department and shall provide the following:
(1) The applicant’s full, true name and home address, and proof of residence; (2) The applicant’s driver license; and
(3) A valid and current vehicle registration, and license plate number forof the vehicle for which a permit is sought; and. A currently valid registration for each vehicle for which a permit is sought.
(4) The applicable fee; and.
(3)(5) Such other information set forth in the policy.
(b) The procedures for granting or denying a permit, and the procedure to appeal a denial are set forth in the adopted program guidelines on file with the Public Services Department (“Guidelines”).The denial, suspension and/or revocation of a residential parking permit and/or eligibility therefore by the director pursuant to this article may be appealed to the Planning Commission pursuant to Article 2 of Chapter IX of this Code.

The transportation services manager or his designee shall grant or deny any permit applied for pursuant to this article within ten (10) business days. Any denial shall be in writing and shall state the reason for denial.

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(c) Each type of permit issuedapplied for and or renewed pursuant to this article , including guest parking permits, shall be subject to a permit fee or fees as established by the city council. No parking permit shall be authorized until the applicant has paid the full permit fee. The permit fee amounts shall be established by the City Council. Denial of an application pursuant to this article may be appealed to the planning commission pursuant to the procedures set forth in Chapter IX of Title 2 of this Code. (d) Additional permits may be obtained by a permit holder for vehicles acquired after the issuance of an initial residential parking permit, upon surrender of the previously issued permit and/or upon proof that the vehicle for which it was issued has been sold or otherwise disposed of.
(e) The transportation services manager may issue more than three (3) permits to a residence or dwelling upon a verified showing by the permit holder that there is a need for additional permits due to complete use of all available off-street parking for vehicles, including garage spaces, by other vehicles owned by the permit holder or other resident of the dwelling. (Ord. No. 16-02, § 1, 1-19-16)
10-221.4. Replacements.

If a valid residential parking permit is lost or destroyed, the holder thereof may obtain a replacement permit for the same vehicle, in the same manner and for the same fee as the original permit. (Ord. No. 16-02, § 1, 1-19-16)
10-221.5. Description of permits and display thereof.
(a) The residential parking permit shall be a numbered hang-tag type placard which will be color coded based on permit parking zone and supplied by the City of Costa Mesa. It shall be suspended from the rear view mirror of the resident’s vehicle at all times when the vehicle is parked on a street within the permit area. (b) Guest permits shall be of paper, bearing the date of issue, the issuer’s signature and address, and the license plate number of the permitted guest’s vehicle, and shall be displayed face up on the left front dashboard at all times when the guest’s vehicle is parked on a street within the permit-parking area. (Ord. No. 16-02, § 1, 1-19-16) 10-221.6. Emergency permits.

The transportation services manager shall have discretionary power in case of emergency to issue to any person a parking permit for a period not exceeding three (3) consecutive days. Such permit may be either oral or written, at the discretion of the transportation services manager, and no fee shall be charged therefor. (Ord. No. 16-02, § 1, 1-19-16)
10-221.47. Duration of permits.
(a) Residential parking permits assigned pursuant to this article shall be renewed according to the adopted program guidelines on file with the Public Services Department ATTACHMENT 1
5 281
(“Guidelines”), and shall be valid for twoone (12) years, unless earlier revoked or terminated, provided however that a permit shall automatically expireterminate upon when the termination of the permit holder’s residenceceases to reside in the designated residential permit -parking areazone.issued pursuant to this article shall be renewed every three (3) years, subject to the conditions and limitations set forth herein. (b) No residential parking permit issued assignedissued pursuant to this article shall be transferable from the permit holder to any other person, nor from one vehicle to another. (c) Any permit issued pursuant to this article shall be renewed every three (3) years and automatically expire upon the termination of the permit holder’s residence in the designated permit-parking area.
(d) Any guest permit issued pursuant to this article shall be valid only until noon of the day following the date of issuance.
(ec) Nothing in this article, nor any permit issued assignedissued pursuant heretothereto, shall authorize a violation of subpart (a) or subpart (b) of section 10-185 of this Code.
(fd) The city council may establish by resolution an expiration date for all outstanding residential and guest parking permits if the city council determines that an unacceptable number of permits are being used by nonresidents of the designated permit-parking areas zone or that permits are being used in a manner inconsistent with and/or in violation the purposes of this article. (Ord. No. 16-02, § 1, 1-19-16) 10-221.85. Violations.
(a) Parking a vehicle in violation of this article shall be an infraction. (b) It shall be a violation of this article and an infraction for any person to falsely to represent himself or herself as eligible for a residential parking permit or to furnish false information in an application therefor to the police department. (c) It shall be a violation of this article and an infraction for any person assignedissued holding a residential parking permit issued pursuant to this article to allow the use or display of such permit on for a motor vehicle other than that for which the permit was issuedassignedissued. Any person who so uses or displays a residential parking permit on a motor vehicle other than that for which it was assigned issuedissued is likewise guilty of a violation of this article, and an infraction.
(d) It shall be a violation of this article and an infraction for any person to copy, produce, or otherwise bring into existence a facsimile or counterfeit parking permit. Any person who knowingly uses or displays a facsimile or counterfeit parking permit, with intent to evade prohibitions or limitations on parking in a designated permit-parking area, is likewise guilty of a violation of this article, and an infraction.

ATTACHMENT 1
6 282
(e) It shall be a violation of this article and an infraction for any person to sell to, transfer to, or exchange a parking permit with any other person except as provided for in this article. (Ord. No. 16-02, § 1, 1-19-16)
(f). In addition to any other penalties under this article, the director may revoke, cancel or suspend a permit and/or eligibility therefore based upon a violation of subsection (b), (c), (d) and/or (e).
10-222. Parking on city property—Designation of “permit parking only” areas.

The city manager may designate portions of city-owned property other than streets, alleys or highways, for parking by permit only and may order the posting of signs bearing the legend, “Permit Parking Only.” (Ord. No. 89-30, § 2, 12-4-89) 10-223. Same—Prohibited parking.

When authorized signs have been posted and are in place giving notice of restrictions as provided hereinin this article , it is unlawful and an infraction for any person to park or leave parked a vehicle, other than a city-owned vehicle, within the an area designated for parking by permit during the times when such parking is prohibited, other than a vehicle displayingthat has been issued a valid permit or exempted pursuant to section 10-221., unless otherwise stated on the sign or between the hours of 5:00 a.m. and 5:00 p.m. on weekdays, unless a parking permit has been assigned therefor, issued by the City of Costa Mesa pursuant to this article and the adopted program guidelines on file with the Public Services Department (“Guidelines”). , is displayed in or on the vehicle so as to be visible from outside the vehicle.
10-224. Same—Enforcement.

Any regularly employed and salaried police officer or police cadet , designee of the chief of police, or any non-safety city employee empowered to issue citations pursuant to section 1-33.1 of this Code and implementing resolutions of the city council, is authorized to enforce the provisions of sections 10-22 1.52 through 10-224 by issuing infraction citations. (Ord. No. 89-30, § 3, 12-4-89)
Section 2. Existing Residential Parking Permits. The city council may by resolution and upon written notice terminate any residential parking permits and/or residential permit parking zones existing at the time of adoption of this Ordinance and/or may require existing residential permit parking holders to apply for permits in compliance with the provisions of this Ordinance.

Section 3. Environmental Compliance. Pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and State CEQA guidelines (Sections 15000 et seq.) the ordinance is not a “project” and further, that it can be seen with certainty that there is no possibility that the Formatted: Normal
Formatted: Font: Not Bold
ATTACHMENT 1
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ordinance in question may have a significant effect on the environment, either directly or indirectly, and that therefore no environmental review under the CEQA is required, pursuant to CEQA Guidelines Section 15061(b)(3). In addition, the Ordinances is exempt pursuant to CEQA Guidelines Section 15308 (Class 8, Actions by Regulatory Agencies for the Protection of the Environment) because the adoption of this Ordinance is required to comply with state law in order to protect the environment.

Section 4. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance.

Section 5. Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional.

No portion of this Ordinance shall supersede any local, State, or Federal law, regulation, or codes dealing with life safety factors.

Section 6. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.

Section 7. Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be posted or published in the manner as required by law.

PASSED, APPROVED AND ADOPTED this xx day of xx, 2022.
_____________________________
John Stephens, Mayor
ATTEST:
______________________________
Brenda Green, City Clerk
Formatted: No underline
ATTACHMENT 1
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APPROVED AS TO FORM:
______________________________
Kimberly Hall Barlow, City Attorney
ATTACHMENT 1
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2022-xx was duly introduced and given first reading at a regular meeting of the City Council held on _____, 2022 and adopted at a regular meeting of the City Council held on thexx day of xx, 2022, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this _____ day of __________, 2022.
________________________________

BRENDA GREEN, CITY CLERK
(SEAL)
ATTACHMENT 1
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ORDINANCE NO. 2022-xx

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA AMENDING ARTICLE 3 (PARKING BY PERMIT

ONLY) OF CHAPTER XI (STOPPING, STANDING OR PARKING

RESTRICTED OR PROHIBITED ON CERTAIN STREETS) OF
TITLE 10 (MOTOR VEHICLES AND TRAFFIC) OF THE COSTA

MESA MUNICIPAL CODE RELATING TO RESIDENTIAL PERMIT

PARKING

WHEREAS, the City Council of the City of Costa Mesa adopted a Residential Permit Parking Program (RPP) in January 2016; and
WHEREAS, the RPP helps to relieve parking congestion on public streets adjacent to impacted residential areas by vehicles unrelated to the neighborhood; and WHEREAS, parking demands from single-family residential, multi-family residential, and commercial parking shortages in recent years have caused significant parking impacts on other adjacent residential neighborhoods; and WHEREAS, the City has received significant feedback from residents and business owners related to the limited parking on public streets; and WHEREAS, the City considered the following criteria and interests while drafting amendments to the RPP, including that there is a growing number of vehicles per household, older neighborhoods were originally designed for a lower parking demand, there is insufficient parking within multi-family communities, and many garages are used for storage; and
WHEREAS, when a single-family street becomes a newly designated residential permit parking street, vehicles are displaced and moved to other streets, and streets that are designated with residential permit parking oftentimes are less utilized since residents not living on that street are displaced and must find parking elsewhere, resulting in an unintended impact on surrounding streets; and
WHEREAS, the City caused to be conducted a Citywide Parking Study in January 2020, which engaged stakeholders, sought to understand parking challenges, evaluated the current RPP, and developed recommendations for the City’s parking operations; and WHEREAS, during the Citywide Parking Study, over 40 community members attended a community outreach meeting where they expressed support for implementing a residential parking permit fee and keeping an RPP; and ATTACHMENT 1
11 (CLEAN VERSION)
287

WHEREAS, the findings of the Citywide Parking Study led to the amended RPP’s principles which are equitable access, sustainable solutions, and efficient program management; and
WHEREAS, the City’s amended RPP is aligned with the Attorney General’s opinion which recommends that cities do not distinguish among residents based on the type of dwellings in which they live when issuing residential parking permits; and WHEREAS, the City Council held a duly noticed public hearing on Ordinance No. 2022-XX on _____, 2022, at which time it considered all evidence presented, both written and oral; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE COSTA MESA CITY COUNCIL DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Article 3 (Parking by Permit Only) of Chapter XI (Stopping, Standing or Parking Restricted or Prohibited on Certain Streets) of Title 10 (Motor Vehicles and Traffic) of the Costa Mesa Municipal Code is hereby amended to read as follows:

ARTICLE 3. PARKING BY PERMIT ONLY
10-221. Parking of unpermitted vehicles prohibited.

When authorized signs have been posted pursuant to resolution of the city council and are in place giving notice of restrictions, it is unlawful and an infraction for any person to park any vehicle on any public street or alley so restricted, unless a parking permit therefor has been issued by the city as provided for in this article. This restriction shall not apply to police vehicles or other authorized emergency vehicles and/or city-owned vehicles when used for official business, or to service vehicles, clearly marked as such, while the owner or operator of the vehicle is providing a service to a residence located in that residential permit parking zone.
10-221.1. Issuance of permits to residents.

Except for emergency permits and as otherwise provided for in section 10-221.2, parking permits may be issued only to residents of those areas where parking has been limited or prohibited pursuant to this article as a residential permit parking zone. 10-221.2. Types of permits.
(a) Residential parking permits.
(1) Except as otherwise provided for in this article, a resident of a dwelling unit within an area that has been designated as a residential permit parking zone may be issued one (1) parking permit per eligible driver by filing an application therefore with the public services department pursuant to the provisions of this article.

ATTACHMENT 1
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(2) A motor vehicle that has been issued a parking permit for a residential parking zone shall be permitted to stand and/or park in that zone without being limited by the parking restrictions established pursuant to this article. (3) The number of residential parking permits that shall be authorized to any one dwelling unit may be set forth in the policy.
(b) Guest parking permits.
(1) Each resident parking permit holder may apply for temporary guest parking permits for use by his or her guests in the parking zone where the permit holder resides by submitting an application therefore to the public services department. (2) A parking permit holder may receive up to a maximum of one hundred (100) guest parking permits per year per dwelling unit, which may be displayed by guests of such permit holder.
(c) Residential Permit Parking Policy. The city council, the city manager and/or designee may adopt policies and/or administrative regulations to implement this article, including but not limited to the establishment of residential permit parking zones and the criteria for the issuance, denial, revocation, duration and/or number of permits. 10-221.2.5. Definitions
Words and phrases not defined herein shall have the meanings ascribed to them in this Title 10, Title 1 and Title 13.

Director – the director of the public services department or his or her designee.

Permit – means a residential parking permit issued by the director pursuant to the provisions of this article.

Residential permit parking policy or policy – means the residential permit parking policy and/or administrative regulations adopted by the city to implement this article pursuant to section 10-221(c).

Residential permit parking zone or zone – a contiguous area within the city comprised of one or more streets and/or alleys that have been designated for parking by residents of that area only pursuant to this article.
10-221.3. Application for permit and action thereon.
(a) To be issued a residential parking permit, the applicant shall provide the following to the public services department:
(1) The applicant’s full, true name and home address, and proof of residence; (2) The applicant’s driver license;
(3) A valid and current vehicle registration and license plate number of the vehicle for which a permit is sought;
(4) The applicable fee; and
(5) Such other information set forth in the policy.

ATTACHMENT 1
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(b) The denial, suspension and/or revocation of a residential parking permit and/or eligibility therefore by the director pursuant to this article may be appealed to the Planning Commission pursuant to Article 2 of Chapter IX of this Code. (c) Each type of permit applied for and or renewed pursuant to this article shall be subject to a fee or fees as established by the city council. 10-221.4. Duration of permits.
(a) Residential parking permits shall be valid for one (1) year, unless earlier revoked or terminated, provided however that a permit shall automatically terminate when the permit holder ceases to reside in the designated residential permit parking zone. (b) No residential parking permit issued pursuant to this article shall be transferable from the permit holder to any other person, nor from one vehicle to another. (c) Nothing in this article, nor any permit issued pursuant thereto, shall authorize a violation of section 10-185.
(d) The city council may establish by resolution an expiration date for all outstanding residential and guest parking permits if the city council determines that an unacceptable number of permits are being used by nonresidents of the designated permit-parking zone or that permits are being used in a manner inconsistent with and/or in violation the purposes of this article.
10-221.5. Violations.
(a) Parking a vehicle in violation of this article shall be an infraction. (b) It shall be a violation of this article and an infraction for any person to falsely represent himself or herself as eligible for a residential parking permit or to furnish false information in an application therefor.
(c) It shall be a violation of this article and an infraction for any person issued a residential parking permit pursuant to this article to allow the use of such permit for a motor vehicle other than that for which the permit was issued. Any person who so uses a residential parking permit on a motor vehicle other than that for which it was issued is likewise guilty of a violation of this article, and an infraction. (d) It shall be a violation of this article and an infraction for any person to copy, produce, or otherwise bring into existence a facsimile or counterfeit parking permit. Any person who knowingly uses a facsimile or counterfeit parking permit, with intent to evade prohibitions or limitations on parking in a designated permit-parking area, is likewise guilty of a violation of this article, and an infraction.
(e) It shall be a violation of this article and an infraction for any person to sell to, transfer to, or exchange a parking permit with any other person except as provided for in this article.

ATTACHMENT 1
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(f). In addition to any other penalties under this article, the director may revoke, cancel or suspend a permit and/or eligibility therefore based upon a violation of subsection (b), (c), (d) and/or (e).
10-222. Parking on city property—Designation of “permit parking only” areas.

The city manager may designate portions of city-owned property other than streets, alleys or highways, for parking by permit only and may order the posting of signs bearing the legend, “Permit Parking Only.”
10-223. Same—Prohibited parking.

When authorized signs have been posted and are in place giving notice of restrictions as provided in this article, it is unlawful and an infraction for any person to park or leave parked a vehicle within an area designated for parking by permit during the times when such parking is prohibited, other than a vehicle that has been issued a valid permit or exempted pursuant to section 10-221.
10-224. Same—Enforcement.

Any regularly employed and salaried police officer or police cadet, or any non-safety city employee empowered to issue citations pursuant to section 1-33.1 of this Code and implementing resolutions of the city council, is authorized to enforce the provisions of sections 10-221.5 through 10-224 by issuing infraction citations.

Section 2. Existing Residential Parking Permits. The city council may by resolution and upon written notice terminate any residential parking permits and/or residential permit parking zones existing at the time of adoption of this Ordinance and/or may require existing residential permit parking holders to apply for permits in compliance with the provisions of this Ordinance.

Section 3. Environmental Compliance. Pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and State CEQA guidelines (Sections 15000 et seq.) the ordinance is not a “project” and further, that it can be seen with certainty that there is no possibility that the ordinance in question may have a significant effect on the environment, either directly or indirectly, and that therefore no environmental review under the CEQA is required, pursuant to CEQA Guidelines Section 15061(b)(3). In addition, the Ordinances is exempt pursuant to CEQA Guidelines Section 15308 (Class 8, Actions by Regulatory Agencies for the Protection of the Environment) because the adoption of this Ordinance is required to comply with state law in order to protect the environment.

Section 4. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance.

ATTACHMENT 1
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Section 5. Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional.

No portion of this Ordinance shall supersede any local, State, or Federal law, regulation, or codes dealing with life safety factors.

Section 6. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.

Section 7. Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be posted or published in the manner as required by law.

PASSED, APPROVED AND ADOPTED this xx day of xx, 2022.

_____________________________
John Stephens, Mayor

ATTEST:

______________________________
Brenda Green, City Clerk

APPROVED AS TO FORM:

______________________________
Kimberly Hall Barlow, City Attorney

ATTACHMENT 1
16 292

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2022-xx was duly introduced and given first reading at a regular meeting of the City Council held on _____, 2022 and adopted at a regular meeting of the City Council held on the xx day of xx, 2022, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this _____ day of __________, 2022.

________________________________

BRENDA GREEN, CITY CLERK

(SEAL)

ATTACHMENT 1
17 293
1 Dixon Resources Unlimited Amendment Three
Rev. 05-20

AMENDMENT NUMBER THREE

TO PROFESSIONAL SERVICES AGREEMENT
WITH

DIXON RESOURCES UNLIMITED

This Amendment Number Three (“Amendment”) is made and entered into this 21st day of June, 2022 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and DIXON RESOURCES UNLIMITED , a California corporation (“Consultant”).

WHEREAS, City and Consultant entered into an agreement on January 21, 2020 for Consultant to provide parking consulting services (the “Agreement”); and

WHEREAS, Section 4.1 of the Agreement provides for a term of one (1) year, with the option to extend the term for one (1) additional one (1) year period; and

WHEREAS, City and Consultant extended the term of the Agreement through January 20, 2022 through Amendment Number One to the Agreement; and

WHEREAS, City and Consultant extended the term of the Agreement through January 20, 2023 through Amendment Number Two to the Agreement; and

WHEREAS, City and Consultant now desire to amend the Scope of Services to include additional services relating to implementation support services and solicitation and procurement support services as set forth in Exhibit “A,” attached hereto and incorporated herein; and

WHEREAS, City desires to increase Consultant’s maximum compensation accordingly.

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. The Scope of Services shall be amended to include the additional s ervices set forth in Exhibit A.

2. Section 2.1 of the Agreement shall be amended to reflect that Consultant ’s total compensation shall not exceed One Hundred Ninety-Two Thousand Nine Hundred Fifty Dollars ($192,950.00).

3. All terms not defined herein shall have the same meani ng and use as set forth in the Agreement.

4. All other terms, conditions, and provisions of the Agreement shall remain in full force and effect.

5. This Amendment may be executed in one or more counterparts, each of whi ch shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

[Signature page follows.]

ATTACHMENT 2
1 294
2 Dixon Resources Unlimited Amendment Three
Rev. 05-20

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date indicated by each signature.

CITY OF COSTA MESA

________________________________ Date: __________________________ Lori Ann Farrell Harrison
City Manager

CONSULTANT

________________________________ Date: __________________________ Julie Dixon
President

ATTEST:

________________________________
Brenda Green
City Clerk

APPROVED AS TO FORM:

________________________________ Date: __________________________ Kimberly Hall Barlow
City Attorney

APPROVED AS TO INSURANCE:

________________________________ Date: __________________________ Ruth Wang
Risk Management

APPROVED AS TO CONTENT:

________________________________ Date: __________________________ Jennifer Rosales
Project Manager

ATTACHMENT 2
2 295
3 Dixon Resources Unlimited Amendment Three
Rev. 05-20

DEPARTMENTAL APPROVAL:

________________________________ Date: __________________________ Raja Sethuraman
Public Services Director

APPROVED AS TO PURCHASING:

________________________________ Date: __________________________ Carol Molina
Finance Director

ATTACHMENT 2
3 296

EXHIBIT A

ADDITIONAL SERVICES
ATTACHMENT 2
4 297

Proposal for Parking Management Support Services

To: Jennifer Rosales, Transportation Services Manager
From: Dixon Resources Unlimited
Date: June 6, 2022
Subject: Implementation Support Services for the City of Costa Mesa

Proposed Scope of Work
Dixon Resources Unlimited (DIXON) is pleased to submit this proposal to continue to provide parking consultant services to the City of Costa Mesa (City). DIXON is currently finalizing a Residential Parking Action Plan for the City and is prepared to provide on -going parking management support as the City implements the updated residential permit parking program, transitions to a new Automated Permit Management System, and re-evaluates the existing permit parking zones. Our uniquely qualified firm specializes in supporting municipal parking and mobility programs across the country, consistently proving our ability to identify and implement operations, management, and technology recommendations to transition municipal parking operations to long-term, sustainable programs.

Parking Management Support Services
DIXON will work at the City’s direction to provide parking management support services to assist in implementing the updated residential permit parking program guidelines and deploying an automated permit management system (PMS). DIXON will support the transition of the permit process, assist in implementing the updated permit program guidelines, provide guidance for the new permit fee structure , and ensure seamless integration with existing parking technologies .

DIXON will also manage an extensive public outreach and education campaign to ensure a smooth transition for the new residential permit program. DIXON will also provide additional on -call support for parking related tasks as required.

DIXON’s support services will extend to the following core deliverables:

1. Vendor Selection and Contract Negotiation – DIXON will support the City during the vendor selection process. DIXON will evaluate the ability to leverage additional services from existing vendors and can coordinate product demonstrations. DIXON is available to review and negotiate contract agreements.

2. Municipal Code and Permit Guidance – DIXON will finalize updates to the municipal code to prepare the City for the implementation and management of the updated program guidelines, such as virtual permitting and the permit fee.

ATTACHMENT 2
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3. Automated Permit Management System and Virtual Permit Transition – DIXON will provide project management services to assist with the transition to virtual parking permits offered through an online portal allowing the permit to be purchased from a computer or smartphone. In coordination with municipal code updates, DIXON will ensure a smooth integration with existing License Plate Recognition (LPR) technology to support an optimized permit program. By establishing the residential parking permit as a virtual permit, the license plate number becomes the permit identifier for enforcement, removing the need for physical hangtags or stickers. Virtual permits will allow the City to efficiently enforce with the use of LPR technology.

4. Public Outreach and Support – Stakeholder engagement and communications are one of DIXON’s specialties and continued outreach and education will be critical during the implementation of the updated permit program and the re-evaluation of existing permit zones. DIXON will prepare outreach materials that will be used to communicate the re- evaluation process and the new permit parking program. Input from residents, merchants, advisory groups, and decision makers will be a vital part of successfully implementing the new program. DIXON will develop and finalize a public outreach engagement strategy with the City, conduct virtual one-on-one and small group meetings, and conduct formal public meetings, including City Council presentations as required. - DIXON will prepare outreach materials for the re -evaluation process and the new permit parking program education campaign. Materials will include social media posts, flyers, FAQs, and draft website language.
- DIXON will prepare and conduct up to three public outreach meetings in coordination with City staff to solicit input from interested stakeholders throughout the implementation of the PMS program.

5. Solicitation and Procurement Support Services (Opt ional) – DIXON can work with the City to draft an RFP specification for technology equipment and services as required. The development of technical specifications will ensure that the scope of work set forth in the selected bids will integrate with current and future parking technology software. The specification will identi fy solicitation objectives and prioritize deliverables with defined Service-Level Agreements (SLAs) that are supported by liquidated damages, ensuring that RFP respondents remain account able to their performance commitments. This exercise identifies the necessary financial penalties, compliance requirements, and corrective action process to safeguard the solution and ensure system uptime, access, and revenue accountability.

In collaborat ion with the City, DIXON will define the phasing and evolution of the procurement process, including recommendations for schedule, submission requirements, and procurement management tools. We will clarify agreement/business terms, which will be incorporated into SLAs and/or Key Performance Indicators (KPIs), draft procurement ATTACHMENT 2
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documents in consultation with the City, and establish a framework through which to fairly evaluate respondents.

DIXON can provide support throughout the proposal evaluation process, including coaching reviewing proposals, preparing for interviews, and coordinating various vendor technology demonstrations.

DIXON will work at the City’s direction to provide implementation support and parking management services to address the City’s evo lving priorities and ongoing needs regarding the implementation of virtual permits, management of vendor contracts and negotiation , and extensive public outreach.

Julie Dixon, President, will serve as the main point of contact/project manager for the City and will be directly assisted by Kellie Dugdale, Associate, and other project support staff as required by the individual task.

Cost Proposal
This cost proposal is based upon a Time & Materials (T&M) approach to ensure that the project is managed in the most cost -effective and efficient manner. There is a NTE amount, and we will deliver within that budget, customizing our solution to focus on what the project needs to achieve its objectives and adapting in order to ensure that the task is completed within the agreed upon budget and timing. The budget includes all required travel or related expenses, which are based upon GSA standards and will be billed per City requ irements and guidelines. Our terms are negotiable and can be customized based upon the City’s priorities. The DIXON bill rate schedule for each job classification is provided below.

Classification Labor Rate Per Hour
Principal Consultant $225/hour
Senior Associate $175/hour
Associate $145/hour
Junior Associate $105/hour

Description Not to Exceed
Implementation Support Services $47,450
Solicitation and Procurement Support Services (Optional) $13,500 (per solicitation) ATTACHMENT 2
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301
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City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-698 Meeting Date: 6/21/2022
TITLE:

APPROVAL OF AMENDMENTS TO CITYWIDE RENTAL ASSISTANCE PROGRAMS FUNDED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: SUSAN PRICE, ASSISTANT CITY MANAGER

NATE ROBBINS, NEIGHBORHOOD SERVICES MANAGER
CONTACT INFORMATION: LORI KARAGUEZIAN, SENIOR MANAGEMENT ANALYST, (714) 593-5347
RECOMMENDATION:

Staff recommends the City Council:

1. Approve proposed Amendment No. 2 (Attachment 1) to the Subrecipient Agreement (SRA) with Mercy House Living Centers increasing the compensation by $62,312, for a total Not-To-Exceed amount of $392,633 for program administration for the City’s CDBG-CV Rental Assistance Program for lower-income households without children.

2. Appropriate an allocation of $500,000 in American Rescue Plan Act (ARPA) funds to augment the HUD funded Rental Assistance Program for Costa Mesa renters, and required ancillary services, if eligible, from this or any other Federal or City available and eligible Fund, as needed.

3. Authorize the City Manager and the City Clerk to execute any new agreements and any and all amendments to existing agreements for the augmented ARPA funding for the Rental Assistance Program to assist Costa Mesa renters to overcome housing instability.

BACKGROUND:

From March 2020 to now, the COVID-19 Pandemic has had significant economic impacts on communities. Programs designed to provide a safety net for residents have been necessary to mitigate the related impacts pertaining to food, housing and income insecurity. The information contained herein provides an update on two HUD funded rental assistance programs in the City of Costa Mesa during this period of the pandemic.

Consolidated Plan
The City of Costa Mesa, Development Services Department, submits a Consolidated Plan to HUD every five years and an Annual Action Plan every year in order to comply with HUD requirements, and continue to receive Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds from the U.S. Department of Housing and Urban Development.

Citywide rental assistance programs are currently funded with both CDBG-CV and HOME funding

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File #: 22-698 Meeting Date: 6/21/2022
Citywide rental assistance programs are currently funded with both CDBG-CV and HOME funding sources.

Community Development Block Grant Coronavirus (CDBG-CV) The Coronavirus Aid, Relief and Economic Security Act of 2020 (the “CaresAct”)provided $5 billion in Community Development Block Grant Coronavirus funding (“CDBG-CV”)to assist low-income and vulnerable Americans impacted by the Coronavirus pandemic. The U.S. Department of Housing and Urban Development (“HUD”)allocated $2 billion of these funds to eligible jurisdictions by using the existing CDBG grant formula. The CDBG-CV program is a COVID 19 resource that was approved as a substantial amendment to the FY 2019-2020 Annual Action Plan and is not a recurring source of funding.

City Council accepted round one of CDBG-CV funds on May 26, 2020 in the amount of $668,658 and round two of CDBG-CV funds on October 9, 2020 in the amount of $1,168,216 for a total of $1,836,874 in CDBG-CV funds awarded to the City.

Table 1 shows the current allocations to subrecipients under the CDBG-CV program. A total of $842,321 is allocated to three subrecipients for the operation of CDBG-CV Rental Assistance Programs: SPIN for Families ($457,000), Mercy House for Individuals ($330,321), and Families Forward for Families ($55,000). Of these amounts, a total of $285,451 is remaining. In addition, there is a total of $62,312 of unprogrammed CDBG CV funds that can be added to this amount to provide further assistance to needy families and individuals, for a total of $347,763 from CDBG CV funds.

HOME Tenant Based Rental Assistance Program (TBRA)
The HOME TBRA Pilot Program was initiated as part of the 2020-2024 Consolidated Plan process with an initial allocation of $150,000 for the program in FY 2020-2021. Families Forward was selected as the subrecipient administrator for the program in November 2020 and was subsequently allocated an additional $150,000 in November 2021 for a total allocation of $300,000 for the TBRA program. The agreement with Families Forward expires in November 2022 but can be extended as needed. A total of $273,726 is remaining.

ANALYSIS:

CDBG-CV Rental Assistance Program
The City’scurrent CDBG-CV Rental Assistance Program subrecipient agreements include the initial program criteria set by HUD. The initial objectives and guidelines of the City’sCDBG-CV Rental Assistance Program allow for rental relief payments for residents experiencing a loss of income, directly related to COVID-19, with up to three (3) consecutive months of rental assistance, or a maximum of $6,000 per household, whichever is less.

However, HUD revised its program guidelines to extend the period that grantees can make payments on behalf of individuals and families from three (3) consecutive months to six (6) consecutive months and authorizing the City to eliminate the maximum amount of assistance that can be provided.

Staff met with the subrecipient agencies to review the revised HUD guidelines and discuss progress with the Rental Assistance Programs. The HUD guidelines will be operationalized by the subrecipients for the remaining duration of program, until the funds are fully expended. By increasing

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File #: 22-698 Meeting Date: 6/21/2022
subrecipients for the remaining duration of program, until the funds are fully expended. By increasing the rental assistance period from three months to six months, removing the $6,000 cap to allow for assistance up to any reasonable and necessary amount, and broadening eligibility criteria to include general COVID-19 economic recovery, homelessness, and eviction prevention, the Rental Assistance Programs will become more applicable to a broader group of Costa Mesa residents and easier to administer.

Staff has also expanded outreach efforts in response to public comments in recent Council meetings by developing new flyers and targeted outreach including:
· Targeted redistribution of Spanish and English program flyers; · Social Media Posts (i.e., Facebook, Instagram, etc.); · Costa Mesa Minute and El Minuto de Costa Mesa episodes; · Table at English Learner Advisory Committee (ELAC) event at Costa Mesa High School; and · Working with community partners to get the word out about rental assistance availability (i.e., Save Our Youth, Shalimar Learning Center, Wilson Learning Center, Las Promotorars, Think Together, Melinda Hoag Smith Center for Healthy Living, NMUSD -Title 1 Campus Community Facilitators/Principals).

Throughout the pandemic, several entities administered Rental Assistance Programs that had differing eligibility criteria, documentation standards and expiration dates. The Costa Mesa providers referred eligible households to those programs, where applicable, during the contract period. The CDBG-CV programs do not expire until 2024; hence, all programs funded can be extended until the allocated funds are fully expended.

The City does not anticipate receiving any more CDBG-CV funds from HUD. The three subrecipient agencies have expended $556,869 of the $842,321 awarded. There is $285,452 remaining to administer. Mercy House is the only subrecipient serving households without children and it has almost fully expended its allocation. Staff recommends that Council allocate the remaining $62,312 of unallocated CDBG-CV funds to Mercy House, which will fully appropriate the remaining CDBG-CV program funding.

The City expects current subrecipients to expend the currently allocated funding within the next 6 to 9 months.

HOME - Tenant Based Rental Assistance (TBRA)
The initial pilot TBRA program eligibility matched the TBRA program provided by Families Forward in the City of Huntington Beach and included the following criteria:
· Assisted people experiencing homelessness or at-risk of experiencing homelessness (e.g., low income at 50% area median income (AMI) or less and fleeing domestic violence or threatened by eviction within the forthcoming 21 days);
· Provided for a maximum of 6 months of rental assistance; and · Included a “local preference” requirement for low-income (50% AMI) /homeless families that could demonstrate 36-month prior residency in the City of Costa Mesa.

Families Forward has observed that the local residency requirement is posing a barrier to assisting otherwise eligible families in Costa Mesa. In addition, staff noted that HUD regulations allow for rental

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otherwise eligible families in Costa Mesa. In addition, staff noted that HUD regulations allow for rental assistance to be provided for up to 24 months and to low income families at 60% AMI. Therefore, staff is expanding the eligibility criteria to match the HUD regulations, which will broaden the group of Costa Mesa residents who are eligible for this program. Additionally, the three year residency requirement will be removed and “local preference” for families with ties to Costa Mesa will be approved on a case-by-case basis, based on more flexible criteria such as ties with family, work or school connections. Staff will continue to monitor and modify program criteria as needed to meet community need within the limits of HUD regulations. To date, Families Forward has expended $26,274, with $273,726 available to assist additional Costa Mesa families moving forward.

Table 2 - HOME Rental Assistance Program
The following table reflects the numbers served by both rental assistance programs to date:

Table 3 - Households/Persons Assisted to Date
The referenced revisions to both CDBG-CV and HOME-TBRA program eligibility criteria will expand the number of residents in Costa Mesa eligible for these programs. Approximately $347,763 in CDBG -CV funds and $273,726 in HOME-TBRA funds remain available to assist Costa Mesa individuals and families and are sufficient to fund these programs through FY 22-23.

Mercy House, the only subrecipient serving households without children, has almost fully expended its allocation.

ALTERNATIVES:

This item is administrative in nature.

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FISCAL REVIEW:

Staff is recommending that the remaining $62,312 of unallocated CDBG-CV funding be allocated to Mercy House for rental assistance to individuals.

Staff also recommends to allocate $500,000 from the American Rescue Plan Act (ARPA) funds to augment the current Rental Assistance programs and related support services.

LEGAL REVIEW:

The City Attorney’s office has reviewed this report and approved it as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:
· Diversify, Stabilize and Increase Housing to Reflect Community Needs CONCLUSION:

Staff recommends the City Council:

1. Approve proposed Amendment No. 2 (Attachment 1) to the Subrecipient Agreement (SRA) with Mercy House Living Centers increasing the compensation by $62,312, for a total Not-To-Exceed amount of $392,633 for program administration for the City’s CDBG-CV Rental Assistance Program for lower-income households without children;

2. Appropriate an allocation of $500,000 in American Rescue Plan Act (ARPA) funds to augment the HUD funded Rental Assistance Program for Costa Mesa renters;

3. Authorize the City Manager and the City Clerk to execute any new agreements and any and all amendments to existing agreements for the augmented ARPA funding for the Rental Assistance Program to assist Costa Mesa renters to overcome housing instability.

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AMENDMENT NUMBER TWO
TO 2020-2021 SUBRECEIPIENT AGREEMENT

AMONG THE CITY OF COSTA MESA, AS GRANTEE UNDER THE

COMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS PROGRAM, THE COSTA

MESA HOUSING AUTHORITY AND MERCY HOUSE LIVING CENTERS
This Amendment Number Two (“Amendment”) is made and entered into this 21st day of June, 2022 (“Effective Date”), by and among the CITY OF COSTA MESA (“CITY”), a municipal corporation and a grantee under the U.S. Department of Housing and Urban Development (“HUD”) Community Development Block Grant-Coronavirus (“CDBG-CV”) Program (Catalog of Federal Domestic Assistance Number 14-218; Grant No: B-20-MW-06-0503), the COSTA MESA HOUSING AUTHORITY, a public body corporate and politic (“AUTHORITY”), and MERCY HOUSE LIVING CENTERS, a nonprofit corporation (“SUBRECIPIENT”). CITY and AUTHORITY are collectively referred to herein as “CITY.”
WHEREAS, CITY and SUBRECIPIENT entered into an agreement dated October 6, 2020 for SUBRECIPIENT to provide shelter, supportive services and housing navigation services for homeless men and women (the “Agreement”); and
WHEREAS, on June 15, 2021, CITY and SUBRECIPIENT amended the Agreement and extended the term of the Agreement through June 30, 2022; and WHEREAS, CITY and SUBRECIPIENT now desire to extend the term of the Agreement through June 30, 2023 and to amend the Agreement as set forth herein.

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. The term of the Agreement shall be extended through June 30, 2023.

2. Section A.4. (Amount of Grant and Quarterly Disbursement) shall be amended to read as follows:

4. Amount of Grant and Quarterly Disbursement. The amount granted to SUBRECIPIENT shall not exceed Three Hundred Ninety-Two Thousand Six Hundred Thirty-Three Dollars ($392,363.00) (“CDBG-CV FUNDS”).

SUBRECIPIENT shall expend such funds during the term of this Agreement or any extension thereof. CITY will disburse CDBG-CV FUNDS to SUBRECIPIENT on a quarterly basis subject to and upon receipt and approval of a complete quarterly activity report from SUBRECIPIENT.

3. All terms not defined herein shall have the same meaning and use as set forth in the Agreement.
[Signature page follows.]
1 Mercy House Living Centers Amendment Two CDBG-
CV
Rev. 05-20
ATTACHMENT 1
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date first written above.

CITY OF COSTA MESA
________________________________ Date: __________________________ Lori Ann Farrell Harrison
City Manager

COSTA MESA HOUSING AUTHORITY
________________________________ Date: __________________________ Lori Ann Farrell Harrison
Executive Director

SUBRECIPIENT

MERCY HOUSE LIVING CENTERS
Federal Tax Identification No: 33-0315864
DUNS Number: 879797165
________________________________ Date: __________________________ Signature
________________________________
Name and Title
________________________________ Date: __________________________ Signature
________________________________
Name and Title
ATTEST:
________________________________
Brenda Green
City Clerk/Housing Authority Secretary
2 Mercy House Living Centers Amendment Two CDBG-
CV
Rev. 05-20
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APPROVED AS TO FORM:
________________________________
Kimberly Hall Barlow
City Attorney/Housing Authority
General Counsel
APPROVED AS TO INSURANCE:
________________________________
Ruth Wang
Risk Management
APPROVED AS TO PURCHASING:
________________________________
Carol Molina
Finance Director
3 Mercy House Living Centers Amendment Two CDBG-
CV
Rev. 05-20
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ATTACHMENT 3
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City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-755 Meeting Date: 6/21/2022
TITLE:

FIRST READING OF AN ORDINANCE REVISING CHAPTER III OF TITLE 12 REGARDING THE

PARKS, ARTS AND COMMUNITY SERVICES COMMISSION TO REMOVE ARTS FUNCTIONS, FIRST READING OF AN ORDINANCE ADDING CHAPTER IV OF TITLE 12 ESTABLISHING AN

ARTS COMMISSION, AND RESULTING DISSOLUTION OF THE CULTURAL ARTS COMMITTEE DEPARTMENT: PARKS & COMMUNITY SERVICES
PRESENTED BY: JASON MINTER, PARKS & COMMUNITY SERVICES DIRECTOR CONTACT INFORMATION: JASON MINTER, PARKS & COMMUNITY SERVICES DIRECTOR, (714) 754-5009
RECOMMENDATION:

Staff recommends City Council:

1. Read by title only, waive further reading and introduce Ordinance 2022-xx to rename the Parks, Arts and Community Services Commission to Parks and Community Services Commission and remove arts related language (Attachment 1).

2. Read by title only, waive further reading and introduce Ordinance 2022-xx to establish an Arts Commission that would serve as an advisory commission to the City Council in matters related to the City’sArts and Culture Master Plan (Attachment 2), and dissolve the Cultural Arts Committee accordingly.

3. Authorize a $100.00 per month stipend for the Arts Commissioners.

BACKGROUND:

The City of Costa Mesa has long supported the development of the arts as a means of enriching the community with a variety of arts opportunities. In 1984, the City Council adopted the motto “City of the Arts”to memorialize the City’scommitment to the development of the arts, including the creation of an Arts Committee (Attachment 3). Subsequently, in recognition of the value and impact of local arts and culture on the community the City Council approved Resolution 99-54 adopting modifications to the City Seal to include the “City of the Arts” motto. In 2019, the Parks and Recreation Commission was renamed the Parks, Arts and Community Services Commission, and both the arts and senior services were added to its purview.

On March 16, 2021, City Council approved and adopted the Arts and Culture Master Plan, a comprehensive plan to enhance arts policies and funding for continued growth in all arts related areas. Goal #3 of the Master Plan is to professionalize and elevate the status of the arts and culture

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in city government (Attachment 4).

ANALYSIS:

The recently approved Arts and Culture Master Plan included establishing an Arts Commission to reflect the Council’sdesire for an ongoing policy focus, along with oversight of the City’sinvestment in the arts. A new seven (7) member Commission (no alternate) would serve to attract those residents best qualified by virtue of knowledge and experience for the overall development of the arts, supporting City Councils goals as well as the public at large. The general ideology of the Arts Commission shall be to ensure that the City of Costa Mesa is a place where creativity can flourish; imagination, inspiration and innovation are held in high regard; arts education is essential to all; and that arts and culture promotes civic pride and enriches the daily lives of the community.

The current recommendation for the Parks, Arts and Community Services Commission would remove the Arts language and responsibilities that were added in 2019, changing the name to the Parks and Community Services Commission (formally known as the Parks and Recreation Commission). Staff would continue to promote the Arts to the Parks and Community Services Commission, especially for those events that apply to both Commissions.

The following list includes the qualities that would be ideal for Arts Commissioners:

Qualifications of Arts Commission Members:
· Resident of Costa Mesa (candidates are not selected by Council District) · Background in the arts, either business related or participatory in the following fields:
architecture, fine art, interior design, dance, video/film, photography, literary arts, music, theater, graphic design, media arts, visual arts and or arts administration. · 4 year appointments, with 3-4 Commissioners initially taking 2 year appointments · Need to apply and be nominated by City Council (see potential application questions below) Pursuant to the Council-approved Arts and Culture Master Plan, the existing Cultural Arts Committee could serve in a volunteer role on cultural arts projects and events, as needed, moving forward.

There are currently eight (8) voting members (one voting member vacant) and two (2) alternates of the Cultural Arts Committee. All members and alternates would be invited to apply for the Commissioner positions. Staff developed a list of questions for use during the recruitment of Arts Commissioners (Attachment 5).

ALTERNATIVES:

The City Council may choose to not revise the existing Parks, Arts and Community Services Commission or to establish a City Arts Commission and continue solely with the Cultural Arts Committee.

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FISCAL REVIEW:

The cost to establish an Arts Commission for FY 2022-23 is $8,400. This was added to the Parks and Community Services Department budget during the budget process in 2021-22 utilizing funding from the Measure Q Cannabis Sales Tax.

LEGAL REVIEW:

The City Attorney‘sOffice has reviewed this report, the proposed ordinances and approves them as to form.

CITY COUNCIL GOALS AND PRIORITIES:

Strengthen the Public’s Safety and Improve the Quality of Life.

CONCLUSION:

At this time, it is the staff recommendation that City Council:

1. Read by title only, waive further reading and introduce Ordinance 2022-xx to rename the Parks, Arts and Community Services Commission to Parks and Community Services Commission and remove arts related language (Attachment 1).

2. Read by title only, waive further reading and introduce Ordinance 2022-xx to establish an Arts Commission that would serve as an advisory commission to the City Council in matters related to the City’sArts and Culture Master Plan (Attachment 2), and dissolve the Cultural Arts Committee accordingly.

3. Authorize a $100.00 per month stipend for the Arts Commissioners.

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ATTACHMENT 1
Ordinance No. 22-23 | Page 1 of 4
ORDINANCE NO. 22-23

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,

CALIFORNIA, AMENDING CHAPTER III (PARKS, ARTS AND COMMUNITY SERVICES COMMISSION) OF TITLE 12 (PARKS AND RECREATION) OF THE

COSTA MESA MUNICIPAL CODE
WHEREAS, Chapter III (Parks Arts, and Community Services Commission) of Title 12 (Parks and Recreation) of the Costa Mesa Municipal Code establishes a Parks, Arts and Community Services Commission (“Commission”), the rules, regulations, and procedures applicable to the Commission, and the membership requirements for the Commission; and
WHEREAS, the City Council desires to amend Chapter III to rename the Commission as the Parks and Community Services Commission and to remove all duties related to the Arts of the Commission.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The title of Chapter III of Title 12 of the Costa Mesa Municipal Code is hereby amended to read as follows:

CHAPTER III. PARKS AND COMMUNITY SERVICES COMMISSION
Section 2. Section 12-71 of the Costa Mesa Municipal Code is amended, as follows:
12-71. Commission established.

There is hereby established as a part of the government of the city, a parks and community services commission, which shall:
(a) Consider and provide advice regarding matters that may be referred to it by the City Council, the City Manager, the Director of Parks and Community Services, or the Director of Public Services;
(b) By its own motion, conduct studies and investigations and hold public hearings as it may deem necessary for the formulation of policies, plans, and procedures relating to parks, recreation, senior programs, recreation facilities, community facilities, and parkways, or to determine the wisdom and efficacy of such policies, plans and procedures, or to determine an action plan to pursue in implementing the City’s Parks, Recreation and Open Space Master Plan and report its findings and recommendations to the City Council, the City Manager, the Director of Parks and Community Services, and/or the Director of Public Services; 378
Ordinance No. 22-23 | Page 2 of 4
(c) Recommend to the city council approval of concept plans for development and/or modification of parks, recreation, community, and open space facilities; (d) Solicit to the fullest extent possible the cooperation of school authorities and other public and private agencies concerned with the parks, recreation, recreation facilities, community facilities, and parkways of the City; (e) Make recommendations and findings on the necessity for removal of parkway trees and the necessity for terms and conditions for retention of trees in accordance with Chapter V of Title 15 of this Code, which decisions shall be final notwithstanding section 2-303;
(f) Set the fees to be charged to participants in recreation and community programs and classes in accordance with the guidelines adopted by the City Council;
(g) In its discretion, review the annual budget as presented to the City Council and advise it on the current operational needs and long-range plans for capital improvements;
(h) Periodically visit parks, recreation and community facilities in the city to review established programs and facilities, and to monitor needs in accordance with the Parks, Recreation and Open Space Master Plan;
(i) On behalf of the city, actively encourage programs for the cultural enrichment of the community;
(j) Solicit partnerships with senior organizations which share the common goal to serve Costa Mesa’s senior population; and
(k) Seek out and recommend to the City Council, City Manager or Director of Parks and Community Services possible public and private funding opportunities available to implement new or enhance existing senior programs and services. (Ord.

No. 19-06, § 2, 4-2-19)
Section 3. Subsection (a) of Section 12-74 of the Costa Mesa Municipal Code is hereby deleted in its entirety and replaced with the following: (a) Commission. The Parks and Community Services Commission shall consist of seven (7) members. There shall be one (1) member from each electoral district of the city and one (1) at-large member.

Section 4. Section 12-74(c) of the Costa Mesa Municipal Code is hereby deleted in its entirety and replaced with the following:
(c) Residency in districts. Except for the at-large member, each member of the commission must be a resident of the electoral district from which the member is 379
Ordinance No. 22-23 | Page 3 of 4
nominated at the time the member is nominated and appointed. If any member of the Commission ceases to be a resident of the district from which the member was appointed, that member’s appointment will automatically terminate. The at-large member must be a resident of the City. If the at-large member ceases to be a resident of the city, that member’s appointment will automatically terminate. The Commission secretary shall immediately inform the City Council of any such termination.

Section 5. Section 12-74(e) of the Costa Mesa Municipal Code is hereby deleted in its entirety and replaced with the following:
(e) Senior liaison. If the Mayor does not assign the liaison position, the members of the Commission shall designate one (1) member of the Commission to serve as the liaison for the senior center.

Section 6. Environmental Compliance. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City’s environmental procedures, and has been found to be exempt pursuant to Section 15061(b)(3)(General Rule) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment.

Section 7. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.

Section 8. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional.

Section 9. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.

Section 10. Certification. This City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law.

PASSED AND ADOPTED this ___th day of ______, 2022.

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Ordinance No. 22-23 | Page 4 of 4

John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Brenda Green, City Clerk Kimberly Hall Barlow, City
Attorney

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ATTACHMENT 2
Ordinance No. 22-24 | Page 1 of 5
ORDINANCE NO. 22-24

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADDING CHAPTER IV (ARTS COMMISSION) OF TITLE 12 (PARKS

AND RECREATION) OF THE COSTA MESA MUNICIPAL CODE
WHEREAS, Chapter III (Parks and Community Services Commission) of Title 12 (Parks and Recreation) of the Costa Mesa Municipal Code was recently amended to delete responsibilities relating to the arts from the purview of the Parks and Community Services Commission (previously known as the Parks, Arts and Community Services Commission); and
WHEREAS, the City Council previously approved the City’s Arts and Culture Master Plan; and
WHEREAS, in accordance with the new Arts and Culture Master Plan, the City Council desires to establish an Arts Commission to assume all duties related to the arts for the City,

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Chapter IV of Title 12 of the Costa Mesa Municipal Code is hereby added to read as follows:

CHAPTER IV. ARTS COMMISSION
12-75. Commission established.

There is hereby established as a part of the government of the City, an Arts Commission, which shall:
(a) Consider and provide advice regarding matters that may be referred to it by the City Council, the City Manager, the Director of Parks and Community Services, or the Director of Public Services;
(b) By its own motion, conduct studies and investigations and hold public hearings as it may deem necessary for the formulation of policies, plans, and procedures relating to arts, or to determine the wisdom and efficacy of such policies, plans and procedures, or to determine an action plan to pursue in implementing the City’s Arts and Culture Master Plan and report its findings and recommendations to the City Council, the City Manager, the Director of Parks and Community Services, and/or the Director of Public Services;
(c) Recommend to the City Council approval of concept plans for development and/or modification of arts programming, policies and services; 382

Ordinance No. 22-24 | Page 2 of 5
(d) Solicit to the fullest extent possible the cooperation of school authorities and other public and private agencies concerned with the arts, in the City; (e) Make recommendations and findings on public art installations for temporary and permanent artworks and arts events and programs;
(f) Set the fees to be charged to participants in arts programs and classes in accordance with the guidelines adopted by the City Council; (g) In its discretion, review the annual budget as presented to the City Council and advise it on the current operational needs and long-range plans for arts opportunities and for a community arts center facility;
(h) On behalf of the City, actively encourage programs for the cultural and artistic enrichment of the community;
(i) Solicit partnerships with arts organizations and artists who share the common goal to serve Costa Mesa’s arts and culture landscape;
(j) Solicit partnerships with senior organizations which share the common goal to serve Costa Mesa’s senior population relating to arts; and (k) Seek out and recommend to the City Council, City Manager or Director of Parks and Community Services possible public and private funding opportunities available to implement new or enhance existing arts programs and services. 12-76 Rules and regulations.

The commission shall operate under the following rules and regulations:
(a) Chairperson, vice-chairperson: The election of the chairperson will precede that of the vice-chairperson nominations. Elections of officers shall take place annually to coincide as closely as possible with the appointment terms of the commissioners. The commission, in event of a vacancy in either office, shall elect one (1) of its members for the unexpired term.
(b) Meetings: The commission shall meet at City Hall, 77 Fair Drive, on the times and dates set forth by resolution of the City Council. In the event the regular meeting day falls on a holiday, the regular meeting shall be held on the next business day. A regular or adjourned meeting may be adjourned to a time and place specified in the order of adjournment. Special meetings may be called at any time by the chairperson, or in the absence of the chairperson, by the vice-chairperson, by the City Manager, the Mayor, or by the majority of the members of the commission, by notice delivered to each available member of the commission, at least twenty-four (24) hours previous to the meeting. A 383

Ordinance No. 22-24 | Page 3 of 5
regularly scheduled meeting may be canceled or rescheduled by a majority vote of the commission, with proper notice as required by law.
(c) Quorum: A majority of the members of the commission shall constitute a quorum for the transaction of business. No action shall be taken by the commission unless it is concurred in and adopted by the affirmative vote of at least a majority of the members present. The powers conferred to the commission shall be exercised by motion of resolution and recorded in the minutes. Upon request of any member of the commission a roll call of the vote shall be conducted, and the results thereof recorded in the minutes.
(d) Secretary: The secretary shall be designated by the Director of Parks and Community Services. The secretary shall record the minutes of the commission and shall maintain the records of its proceedings and transactions. 12-77. Procedures.
(a) All meetings of the Commission shall be open to the public. (b) Matters brought before the Commission by the public, Director of Parks and Community Services, or their designee, shall be considered by the Commission and it shall report its actions, findings and recommendations to the City Council, the City Manager, or the Director of Parks and Community Services. 12-78. Membership.
(a) Commission. The Arts Commission shall consist of seven (7) members. (b) Appointment and removal of commissioners. Each Council member elected by district shall appoint a Commission member who may or may not be a resident of his or her district, subject to approval by a majority vote of the entire City Council. The Mayor shall appoint a Commission member, subject to approval by a majority vote of the entire City Council. Commission members appointed shall be for a term of four (4) years, except as otherwise provided in this section. The Commissioner appointed by the Mayor shall be for a two (2) year term, except as otherwise provided in this section.

Commissioners serve at the pleasure of the City Council. A member may be removed prior to the expiration of his or her term by a majority vote of the entire City Council.

Additional details for the appointment procedures and member qualifications, terms and compensation may be set by City Council policy. For the initial appointments only, members appointed by the representatives of the first, second and sixth districts shall initially serve a two (2) year term.
(c) Residency in the City. Each member of the Commission must be a resident of the City at the time the member is nominated and appointed. If any member of the Commission ceases to be a resident of the City, that member’s appointment will 384

Ordinance No. 22-24 | Page 4 of 5
automatically terminate. The secretary of the Arts Commission shall immediately inform the City Council of any such termination.
(d) Term. The term of each Commission member shall expire on the date on which the second regular meeting in January is held immediately following expiration of the term of the Council member or Mayor who appointed that member, or until he or she is reappointed or replaced.

Section 2. Environmental Compliance. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City’s environmental procedures, and has been found to be exempt pursuant to Section 15061(b)(3)(General Rule) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment.

Section 3. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.

Section 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional.

Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.

Section 6. Certification. This City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law.

PASSED AND ADOPTED this ___th day of ______, 2022.

John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:
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Brenda Green, City Clerk Kimberly Hall Barlow, City
Attorney

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Community-created mural by Friends of Brentwood Park
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OBJECTIVE 3.3: ESTABLISH A CITY ARTS COMMISSION AND RETAIN THE CITY’S CULTURAL ARTS COMMITTEE IN A NEW ROLE.

Costa Mesa has an 11-member Cultural Arts Committee that functions with a dual purpose:
primarily, hands-on volunteer coordination in support of city sponsored events and, secondarily, if only periodically, consideration of arts related policies and practices. Few Committee members have professional arts experience or public policy expertise.

In California, Committees typically meet as needed and are advisory bodies, whereas Commissions meet more often and make decisions that are final, absent successful appeals to Council. City Commissions, because effectively they are delegated legislative authority, are broadly viewed as more prestigious, i.e., as compared with City Committees.

Effectively engaging the public ensures broad participation in both City sponsored programs and development of public policy. Bifurcating the twin functions of the Cultural Arts Committee would serve to better advance both functions. Each warrants a singular focus by the citizens best suited to the respective dynamics and challenges at hand.

Establishing an independent Commission would reflect the Council’s desire for an ongoing policy focus, along with vigilant oversight of City investments in the arts. A new Commission would serve to attract those residents best qualified by virtue of knowledge and experience, which in turn would redound to the benefit of Council and the public at large. 11 cities in Orange County have Arts Commissions—none with a motto of “City of the Arts.” This would be a statement to the world that Costa Mesa holds in highest regard the vital role of the arts in its community.

We recommend:

• Action 3.3.1: Establish an Arts Commission comprised of seven members appointed by Council who have some combination of deep knowledge of and/or professional experience in the cultural arts.
• Action 3.3.2: Retain a Committee with a new mission of building public awareness and providing volunteer coordination for City arts events. “SIMPLY PUT, IT DEMONSTRATES A HIGHER COMMITMENT
TO THE ARTS.”
-Key stakeholder comment
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Example Arts Commission Application Questions

1. Full Name:

2. Address:

3. Mobile Phone:

4. Home Phone:

5. Email:

6. Current or Most Recent Employer:

7. Current or Most Recent Job Title:

8. Key Accomplishments:

9. Please share you background and experience or knowledge of the arts (visual and performing), arts education, arts administration and community outreach/engagement:

10. Why are you applying to be an Arts Commissioner for the city of Costa Mesa?

11. Please share you vision for the arts in Costa Mesa:

12. Please share your experience in producing and or participating in arts and multicultural programming:

13. Please share any other relevant work experience, volunteer work, community activities or memberships:

14. How did you hear about this opportunity?

15. Attach a resume:

16. Signature:

ATTACHMENT 5
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City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-759 Meeting Date: 6/21/2022
TITLE:

PROFESSIONAL SERVICES AGREEMENT WITH TCCG TECH COAST CONSULTING GROUP

LLC TO PREPARE AN ECONOMIC DEVELOPMENT STRATEGIC PLAN FOR THE CITY OF

COSTA MESA
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/ PLANNING

DIVISION
PRESENTED BY: DANIEL INLOES, ACTING PRINCIPAL PLANNER / ECONOMIC

DEVELOPMENT ADMINISTRATOR
CONTACT INFORMATION: DANIEL INLOES, AICP, ACTING PRINCIPAL PLANNER / ECONOMIC DEVELOPMENT ADMINISTRATOR, (714) 754-5088
RECOMMENDATION:

Staff recommends the City Council:

1. Approve and authorize the City Manager and City Clerk to execute an agreement with TCCG Tech Coast Consulting Group LLC (TCCG), for a not-to-exceed amount of $200,000 for the term of one year with an additional four one-year renewal options, in substantially the form as attached, and in such final form as approved by the City Attorney.

2. Authorize the City Manager and City Clerk to approve future amendments to the agreement with TCCG including potential increases in compensation so long as such amendments are within the annual budget.

BACKGROUND:

As the market has become more competitive and the economic landscape less predictable, revenue sources for local governments have become more limited and complex over time. Within this context over the last several years, the City has begun to take a more proactive and innovative approach to cultivating a thriving local economy including creating new revenue sources and increase existing revenue sources to fund the wide variety of infrastructure and community services Costa Mesa residents and businesses expect. With finite resources, a built-out City, and an infinite number of potential opportunities and actions, identifying a clear vision for economic prosperity is paramount.

Just like a sports team needs a playbook to act decisively and quickly, Economic Development Strategic Plan will establish a clear vision, strategy, and action items to ensure Costa Mesa continues to thrive economically.

In 2021, the City Council established its first set of Council Goals and Objectives and included

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File #: 22-759 Meeting Date: 6/21/2022
In 2021, the City Council established its first set of Council Goals and Objectives and included “Achievelong-term fiscal sustainability”as a key goal and a related objective, “Developthe scope of work for the Economic Development planning consulting contract and present to the City Council”.

Staff developed a scope of work based on the current economic climate, requests and direction from the City Council, best practices/case studies, and feedback gathered from hundreds of interviews with local business leaders, educational institutions, and non-profits throughout the City. The scope of work was approved by the City Council on August 3, 2021 on a 6-1 vote and the Council directed staff to release a Request for Proposals (RFP). The link to that report is below. <http://ftp.costamesaca.gov/costamesaca/council/agenda/2021/2021-08-03/NB-2.pdf> ANALYSIS:

RFP and Selection Process
The City released the RFP for the Economic Development Strategic Plan on April 5, 2022 and proposals were due on May 3, 2022. The evaluation committee consisted of two internal evaluators and one external evaluator. The committee evaluated the proposals based on the criteria established in the RFP and interviewed the top three prospective firms. The evaluation committee selected TCCG Tech Coast Consulting Group as the most qualified consulting firm for this project. TCCG committed to the requested scope of work and have developed a team with the appropriate experience to complete all aspects of the work for a not-to-exceed cost of $200,000. The draft agreement is provided as an attachment.

Recommended Consultant - TCCG
TCCG Tech Coast Consulting Group LLC (TCCG) is an economic development, strategic planning and economic research firm based locally in Orange County. The consulting group has 22 years of experience which includes assisting in the development of Orange County’s Comprehensive Economic Development Strategy (CEDS). The managing partner Wallace Walrod Ph.D., will be the project manager for the City’s Economic Development Strategic Plan. Mr. Walrod is the Chief Economic Advisor for the Southern California Association of Governments, Orange County Business Council, the Draper Hero Institute, and ESRI. He consults with local, regional and state government agencies as well as world-class financial organizations, including JP Morgan Chase and Merrill Lynch. His knowledge of the local economy is well recognized, and his passion for the economic success for Orange County has been witnessed by hundreds every year at the Economic Development Summit in Los Angeles when he provides economic professionals with an update to the Orange County economy. TCCG is not only dedicating its firm’sresources to this work effort but has assembled a team that provides the expertise necessary to successfully complete the City’s full scope of work.

This team includes three other experts and their associated firms:
§ Robert Kleinhenz, Ph.D., Kleinhenz Economics - Mr. Kleinhenz has over 30 years of experience in conducting economic research as a Chief Economist for the Los Angeles County Development Corporation, Executive Director of Research for Beacon Economics, and Founder for Kleinhenz Economics. Coupling his practical experience with an extensive knowledge of our region and expertise in sharing complex economic principals with the public, he makes for a strong Lead

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expertise in sharing complex economic principals with the public, he makes for a strong Lead Consultant;
§ Benjamin Palmer, SEED Consulting - Mr. Palmer has over 11 years of economic development and experience in the Orange County area and specific experience in actionable strategies. Mr.

Palmer was born and raised in Orange County and purchased his first home in Costa Mesa’s Mesa Del Mar neighborhood. While he is trained at evaluating the economic characteristics of a community, he also can draw from his daily experiences living in Costa Mesa. § Rebecca Alvarez, Nonprofit Strategies - Ms. Alvarez has over 17 years of experience in community outreach and is the principal for Nonprofit Strategies, a firm which specializes in assisting nonprofit agencies in community outreach. Ms. Alvarez and her firm have assisted over 100 organizations including; American Red Cross, San Diego County, THINK Together, and Project Hope Alliance. She is also bilingual which will assist substantially in the outreach process.

Scope of Work
If approved, TCCG will immediately begin work on the City’sEconomic Development Strategic Plan summarized in the following work efforts:

1. Studies & Analysis - establish a clear economic baseline;

2. Vision & Goal Setting - identify a vision and economic development goals to be implemented over the next several years;

3. Develop Action Plan & Priorities - establish a menu of action items that meet community goals and improve the City’s economic prosperity;

4. Develop Tools, Metrics, Models, and Evaluate Resources - provide tools for staff to execute the action plan after its completion, and develop indicators and metrics for ongoing evaluation of economic prosperity and the success of the City’s implementation actions moving forward;

5. Provide Materials & Branding - provide materials and branding for ongoing implementation and identify the next steps to move the plan forward.

This work effort includes community outreach throughout the process. Staff is planning for a series of town hall meetings, targeted outreach to Costa Mesa’sbusiness community and economic enclaves, City Council Study Sessions at key points in the process, and the establishment of a Blue Ribbon Panel made up of Costa Mesa business and community leaders to work in partnership with staff to guide the work effort.

Timeline
TCCG’sproposal commits to completing the strategic plan work effort within nine months. If the City Council approves the professional services agreement, City staff will finalize the agreement and will finalize the schedule to ensure delivery of a high-quality Economic Development Strategic Plan in a timely manner.

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ALTERNATIVES:

The City Council could modify the scope of work, request an alternative consultant, or opt to not develop an economic development strategic plan. Staff does not recommend these alternatives.

While this will be the first time the City has created an economic development strategic plan, it has become salient and best practice for local governments to develop a clear strategy as to how the City will navigate international, regional, sub regional, and e-commerce pressures that will determine the path of the City’s economic future.

FISCAL REVIEW:

The contract with TCCG is for a not-to-exceed amount of $200,000. Funds are available in the Development Services Department’s FY 2022-23 budget.

LEGAL REVIEW:

The City Attorney’s office has prepared the attached draft agreement and approved this report as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:
· Achieve Long-Term Fiscal Sustainability
CONCLUSION:

Staff recommends the City Council:

1. Approve and authorize the City Manager and City Clerk to execute an agreement with TCCG Tech Coast Consulting Group LLC, for a not-to-exceed amount of $200,000 for the term of one year with an additional four one-year renewal options, in substantially the form as attached, and in such final form as approved by the City Attorney.

2. Authorize the City Manager and City Clerk to approve future amendments to the agreement with TCCG including potential increases in compensation so long as such amendments are within the annual budget.

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Rev. 05-2022

CITY OF COSTA MESA

PROFESSIONAL SERVICES AGREEMENT
WITH

TCCG TECH COAST CONSULTING GROUP, LLC
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 21st day of June, 2022 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and TCCG TECH COAST CONSULTING GROUP , LLC, a Delaware limited liability company (“Consultant”).

RECITALS
A. City proposes to utilize the services of Consultant as an independent contractor to provide consulting services in connection with the creation of the City’s Economic Development Strategic Plan, as more fully described herein; and
B. Consultant represents that it has that degree of specialized expertise contemplated within California Government Code section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and
C. City and Consultant desire to contract for the specific services described in Exhibits “A” and “B” and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and
D. No official or employee of City has a finan cial interest, within the provisions of sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:

1.0. SERVICES PROVIDED BY CONSULTANT

1.1. Scope of Services. Consultant shall provide the profess ional services described in the Scope of Work, attached hereto as Exhibit “A,” and Consultant’s Proposal, attached hereto as Exhibit “B,” both incorporated herein.

1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordan ce with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement.

1.3. Performance to Satisfaction of City . Consultant agrees to perform all the work to the complete satisfaction of the City. Evaluations of the work will be done by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to:
(a) Meet with Consultant to review the quality of the work and resolve the ATTACHMENT 1
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matters of concern; (b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or (c) Terminate the Agreement as hereinafter set forth. 1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers’ compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Consultant shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys’ fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Consultant’s performance under this Agreement. 1.5. Non-Discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military or veteran status, except as permitted pursuant to section 12940 of the Government Code. 1.6. Non-Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.7. Delegation and Assignment. This is a personal service contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ other personnel to perform services contemplated by this Agreement at Consultant’s sole cost and expense. 1.8. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant’s covenant under this Section shall survive the termination of this Agreement. 2.0. COMPENSATION AND BILLING 2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit B. Consultant’s total compensation shall not exceed Two Hundred Thousand Dollars ($200,000.00). 396
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2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the scope of services specified in the Consultant’s Proposal unless the City Manager or designee, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. 2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than two times a month. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail, the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices. 2.4. Records and Audits. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City or its Project Manager for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after termination of this Agreement. 3.0. TIME OF PERFORMANCE 3.1. Commencement and Completion of Work. Consultant shall commence providing services on July 1, 2022 (“Service Commencement Date”). Said services shall be performed in strict compliance with the Project Schedule set forth in Exhibit B. The Project Schedule may be amended by mutual agreement of the parties. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, pandemics, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party (each, a “Force Majeure Event”). If a party experiences a Force Majeure Event, the party shall, within five (5) days of the occurrence of the Force Majeure Event, give written notice to the other party stating the nature of the Force Majeure Event, its anticipated duration and any action being taken to avoid or minimize its effect. Any suspension of performance shall be of no greater scope and of no longer duration than is reasonably required and the party experiencing the Force Majeure Event shall use best efforts without being obligated to incur any material expenditure to remedy its inability to perform; provided, however, if the suspension of performance continues for sixty (60) days after the date of the occurrence and such failure to perform would constitute a material breach of this Agreement in the absence of such Force Majeure Event, the parties shall meet and discuss in good faith any amendments to this Agreement to permit the other party to exercise its rights under this Agreement. If the parties are not able to agree on such amendments within thirty (30) days and if suspension of performance continues, such other party may terminate this Agreement immediately by written notice to the party experiencing the Force Majeure Event, in which case neither party shall have any liability to the other except for those rights and liabilities that accrued prior to the date of termination. 397
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4.0. TERM AND TERMINATION 4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of one (1) year from the Service Commencement Date, ending on June 30, 2023, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. This Agreement may be extended by four (4) additional one (1) year periods upon mutual written agreement of both parties. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing written notice to Consultant. The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City. 4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City’s written notice of termination. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. In ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Consultant. 4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of delivery of termination notice to Consultant, at no cost to City. Any use of uncompleted documents without specific written authorization from Consultant shall be at City’s sole risk and without liability or legal expense to Consultant. 5.0. INSURANCE 5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, rated “A,” Class X, or better in the most recent Best’s Key Insurance Rating Guide, and approved by City: (a) Commercial general liability, including premises-operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit. (b) Business automobile liability for owned vehicles, hired, and non-owned 398
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vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence for bodily injury and property damage. (c) Workers’ compensation insurance as required by the State of California. Consultant agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers, agents, employees, and volunteers arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies. (d) Professional errors and omissions (“E&O”) liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. Architects’ and engineers’ coverage shall be endorsed to include contractual liability. If the policy is written as a “claims made” policy, the retro date shall be prior to the start of the contract work. Consultant shall obtain and maintain, said E&O liability insurance during the life of this Agreement and for three years after completion of the work hereunder. 5.2. Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions: (a) Additional insureds: “The City of Costa Mesa and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant.” (b) Notice: “Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor the coverage or limits reduced, until thirty (30) days after written notice is given to City.” (c) Other insurance: “The Consultant’s insurance coverage shall be primary insurance as respects the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Costa Mesa shall be excess and not contributing with the insurance provided by this policy.” (d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. (e) The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. 399
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5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self-insured retention. 5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. 5.5. Non-Limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property. 6.0. GENERAL PROVISIONS 6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement. 6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Project Managers. City shall designate a Project Manager to work directly with Consultant in the performance of this Agreement. Consultant shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement. Consultant or its Project Manager shall attend and assist in all coordination meetings called by City. 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: (a) at the time of delivery if such communication is sent by personal delivery, and (b) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. 400
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IF TO CONSULTANT: IF TO CITY: TCCG Tech Coast Consulting Group, LLC 7545 Irvine Center Drive #200 Irvine, CA 92618 City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Tel: (949) 280-5492 Tel: (714) 754-5088 Attn: Dr. Wallace Walrod Attn: Dan Inloes Courtesy copy to: City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Attn: Finance Dept. | Purchasing 6.5. Drug-Free Workplace Policy. Consultant shall provide a drug-free workplace by complying with all provisions set forth in City’s Council Policy 100-5, attached hereto as Exhibit “C” and incorporated herein. Consultant’s failure to conform to the requirements set forth in Council Policy 100-5 shall constitute a material breach of this Agreement and shall be cause for immediate termination of this Agreement by City. 6.6. Attorneys’ Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. 6.7. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California. 6.8. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City’s consent, no subletting or assignment shall release Consultant of Consultant’s obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement. 6.9. Indemnification and Hold Harmless. Consultant agrees to defend, indemnify, hold free and harmless the City, its elected officials, officers, agents and employees, at Consultant’s sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, 401
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complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect. 6.10. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph. 6.11. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 6.12. Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance or services rendered under this Agreement, Consultant shall render 402
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any reasonable assistance and cooperation which City might require. 6.13. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys’ fees, arising out of or resulting from City’s use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other Project related items as requested by City or its authorized representative, at no additional cost to the City. 6.14. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court. 6.15. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act (Government Code sections 81000, et seq.) and Government Code section 1090. During the term of this Agreement, Consultant and its officers, employees, associates and subconsultants shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subconsultants to abstain from a decision under this Agreement pursuant to a conflict of interest statute. 6.16. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design drawings, estimates and other Consultant professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 6.17. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect. 403
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6.18. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced. 6.19. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 6.20. Binding Effect. This Agreement binds and benefits the parties and their respective permitted successors and assigns. 6.21. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.22. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.23. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement and have had an adequate opportunity to review each and every provision of the Agreement and submit the same to counsel or other consultants for review and comment. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 6.24. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.25. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.26. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, 404
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then both parties agree to substitute such provision(s) through good faith negotiations. 6.27. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. 6.28. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CONSULTANT __________________________________ Date: __________________________ Signature __________________________________ [Name and Title] CITY OF COSTA MESA __________________________________ Date: __________________________ Lori Ann Farrell Harrison City Manager ATTEST: __________________________________ Brenda Green City Clerk APPROVED AS TO FORM: __________________________________ Date: __________________________ Kimberly Hall Barlow City Attorney 405
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APPROVED AS TO INSURANCE: __________________________________ Date: __________________________ Ruth Wang Risk Management APPROVED AS TO CONTENT: __________________________________ Date: __________________________ Daniel Inloes Project Manager DEPARTMENTAL APPROVAL: __________________________________ Date: __________________________ Jennifer Le Economic and Development Services Director APPROVED AS TO PURCHASING: __________________________________ Date: __________________________ Carol Molina Finance Director 406

EXHIBIT A

SCOPE OF WORK
13 407

Exhibit A-1
Scope of Work for Costa Mesa’s Economic
Development Strategic Plan RFP

Introduction
The City of Costa Mesa, California, is looking for a partner to create the City’s first economic development strategic plan. The strategic plan will consist of two main components: the City’s strategic vision and the action plan. Costa Mesa's strategic vision document will establish an economic baseline, market context, and a clear vision including overarching economic goals and objectives. The action plan will outline the immediate actions necessary to implement the strategic vision. Both plan components will be based upon quantitative evidence from data portals available to the Consultant and the City and focused analytical studies by the Consultant, as well as qualitative data gathered from community outreach efforts, SWOT analysis, and case studies. Costa Mesa’s action plan will provide the means by which programs, projects, and tasks that push the vision and goals of the strategic vision forward can be tracked, measured, and evaluated. While the strategic vision will have a five -to-seven-year outlook, the action plan will focus on the immediate actions that must take place within the next few years.

Project Overview and Objectives
Intent
The City of Costa Mesa serves its residents, businesses, and visitors by promoting a vibrant and prosperous community. To that end, the City of Costa Mesa prioritizes committing the resources necessary to create a responsive economy that nurtures a competitive workforce and generates a thriving economic market that is prosperous and resilient. The successful bidder will articulate a successful strategy and proposal to accomplish this mission and will provide the tools and actions necessary for the City to measure success and deliver on the strategic plan goals that are set.

Purpose: Beyond Just A Return on Investment
While the strategic vision must be designed to increase the City's tax base and expand the economic opportunities of its businesses & residents in an equitable manner, it is also meant to improve the economic vibrancy of all economic enclaves within the City ( a map of Costa Mesa’s economic enclaves is included at the end of Scope of Work). Its goals, objectives, and policies should prioritize actions that will increase human, social, fiscal, manufacturing, and natural capital. While all tasks, programs, and projects should be aimed at elevating the City's overall brand and attracting new business to the City, a prosperous community is safe, accessible, occupied, transactionally efficient, resilient, sustainable, and engaging to all people. The City is seeking more than GDP growth but a thoughtful plan that responds to market failure, responsibly develops common goods, and responsibly seeks to encourage and incentivize the type of development that will support existing businesses, improve the City’s economic resiliency, and seeks growth that has a holistic economic benefit.
14 408

Exhibit A-2
Scope of Work
All prospective consultants are required to articulate and address the approach to implementing each phase of the economic development strategic plan. While the City accepts proposals and even encourages proposals that include sub-consultants to assist with some of the required tasks, a primary consulting firm must oversee and coordinate all activities and work products prepared by sub -consultants and ensure deliverables are provided on time and in accordance with the direction of the City. The City has identified eight phases to the development of a strategic plan and action plan:

1. Economic Context
An Analysis of Costa Mesa

2. A Vibrant Strategic Vision
Strategic vision document

3. Exploration of Key Economic Studies
Development of key actions/programs

4. Economic Best Practices
Development of best practices

5. Resource Assessment
Recommendations for resources

6. Implementation and Assessment Tools
Identify tools/indicators

7. Comprehensive Action Plan List
Costa Mesa-specific action list

8. Prosperity Action Plan
Draft and final action plan

Community Mobilization
The City of Costa Mesa is highly sensitive as businesses have recently been impacted by eighteen months of restrictions and limitations due to the COVID -19 pandemic. As COVID -19 restrictions lift and our community turns toward reopening and recovery, companies are mobilizing and have limited time to track or participate in this effort. Thus, the mobilization necessary for developing and implementing this plan will require deference to participants by first being clear, respectful, and engaging and, second, objective and evidence based. Community outreach meetings must be short and efficient. The benefits of this endeavor must be transparent to the businesses that are engaged. Announcements or notifications to businesses must be clear, direct, and visually interesting to garner their attention. As part of the proposal, the City requests a sample of an outreach notification sent for a similar project. Decisions regarding goals, policies, objectives, and actions must be based on unbiased empirical evidence and professionally accepted concepts. All goals, policies, objectives, or prioritized actions must be shown to have a significant economic benefit and ensure community resiliency. For each recommendation, an analysis and justification must be provided.

City of Art’s Artist Collaboration
The City requests engaging and dynamic infographics and visuals as a part of the strategic vision and action plan. The City is seeking visuals and information that encapsulate the results of the studies, analysis, and outreach, and indicate a branding for the vision so it is easy to share. Visuals that are informative but effective because they are creative and fun are highly desired. The mediums sharing the vision and action plan should be engaging and should draw in the reader and rely on visuals whenever possible. For this 15 409

Exhibit A-3
purpose, the City requests that the Consultant identify a local artist that they would partner with to help produce the visuals for the report. The City will work with the Consultant to help identify the information or visuals that can be used toward branding, marketing, and community buy -in. The City maintains an artist directory online for reference. While your team should budget for this expense and make it a part of your proposal, the artist does not need to be selected prior to the submittal of your proposal; however, the proposal must address how this requirement will be addressed.

Tasks
PHASE 1: Economic Context – An Analysis of Costa Mesa
The Context section is the deep dive into understanding macro and micro economic structures that exist in the City. The Consultant must provide a methodology, which allows data to be processed and contextualized for the City of Costa Mesa.

The Consultant will also review economic development related information, reports, and studies the City has already generated. The Consultant will review in this section other planning documents which affect the economic vitality of the City including but not limited to SCAG’s SCS, Costa Mesa’s General Plan and Area Plans, Orange Coast College Master Plan, Air port Land Use Plan, OC Fair and Event Center Master Plan, and more.

The Consultant will conduct a demographic, socioeconomic, and psychographic analysis which tracks all age cohorts for the last ten years; looking specifically at income, wealth and credit levels, home ownership, poverty, education levels, commute time, skills, underemployment, and race. The Consultant will prioritize use of 2020 US Census Data. The Consultant will provide the trends and forecasts associated with these datasets and identify potential indicators for implementation metrics in the future.

The Consultant will evaluate the maturity of all industries within the City and determine the top seven industries within Costa Mesa for each of the following: 1) produces the most tax revenue, 2) hires the most people, 3) has the largest number of distinct businesses, and 4) identifies those industries with the most diverse distribution within the various types of uses that support an industry (office, headquarters, research and development, retail, manufacturing).

The Consultant will assess non-residential building stock to identify the distribution of building stock and existing availability for the potential to allow for all levels of a business’s life cycle, i.e. incubator space, launch, growth, shake-out, maturity, and re-envisioning. The building stock’s productivity will be assessed by looking at the revenue and economic benefit by square foot of each non -residential building in Costa Mesa.

The Consultant will identify potential markets that are currently growing and evaluate the most lucrative market’s needs for any growth potential in Costa Mesa. This will includes assessing the potential growth within the hospitality and tourism sector, specifically, the number of keys that could be supported within Costa Mesa. This is a detailed market analysis. The Consultant will assess the potential for crucial capital improvement projects that can have a significant economic benefit. The Consultant will meet with staff from the various departments to assess potential projects with high economic development potential.

Community outreach for this effort will be critical. Since there are seven economic enclaves, there will be a minimum of eight onsite community engagement meetings with at least one of those community 16 410

Exhibit A-4
engagement meetings conducted in Spanish. There will also be monthly e -meetings with the business community throughout this process that can be used to collaborate with focus groups, gather insights, information, or provide updates. Beside s the community outreach mentioned above and internal meetings as needed throughout the project, the consultant should anticipate three public hearings, with additional meetings as necessary. The consultant will be responsible for attending these meetings, providing the staff that can conduct the meeting in Spanish, and providing materials needed for the meeting to City staff prior per an agreed upon schedule.

The Consultant shall provide the data, analysis, and final conclusions for each component outlined above as well as six separate stand -alone reports identified below. Each report shall provide an executive summary meant to be consumed by the public and a detailed report for Costa Mesa's economic development team to review. These reports are listed below.

1. Projections on E-commerce impacts specifically for Costa Mesa The Consultant will provide insights on e -commerce for the specific markets within Costa Mesa and those markets which are remaining fairly e-commerce resilient. The e-commerce analysis will share what segments are seeing general growth and which ones are witnessing more cannibalism of physical market space. Review the impact of e-commerce and provide a breakdown on which goods and services are seeing strong growth or substantial market share being collected from e- commerce.

2. Contextual Analysis
Identify the roles in supply and demand met by each economic enclave within Costa Mesa and Costa Mesa in general relative to is sub-regional markets, regional markets, national markets, and the international market. This comes with projections or forecasts of how much demand there is for retail, industrial, and specifically what type of housing is in most demand based on jobs.

3. Market & Industry Cluster Analysis
The Industry Cluster Analysis portion of the strategy is intended to identify the economic sectors in which Costa Mesa is currently or is capable of becoming highly competitive at the national and global scale. Following identification of target industries , this portion of the plan should lay out action-oriented strategies for building upon and growing these sectors to create a diverse, sustainable and resilient economy that is sufficient to support the needs of the City and its population. Risks associated with their stability and growth shall be included in this part of the analysis. In addition to identifying industry sectors at the global scale in which Costa Mesa is competitive, a second objective is to identify the local industry clusters or strengths that enable the City to stand out within the region and prescribe strategies for growing and sustaining them.

4. Economic Site Value Index to identify Key Nodes
The City of Costa Mesa has to plan for the development of 11,760 additional housing units as part of its Housing Element. For this to be possible, some non -residentially zoned sites must be rezoned. To ensure that the areas converted to residential are going to provide minimal economic impact to the City, the consultant will evaluate all non-residentially zoned properties based on its current value, future commercial or industrial development potential, its uniqueness in the 17 411

Exhibit A-5
development type, and geographic location, and other characteristics the consultants recommend. The Consultant will work with the City to generate an economic value index that will give each property a score. This index will help identify which commercial and industrial properties within the City are the most strategically important or valuable.

5. SWOT Analysis and Competitive Assessment
SWOT analysis to identify significant strengths, weaknesses, opportunities, and threats in the market, particularly as they compare to similar, competitive (or emerging competitive) markets.

SWOT analysis includes identifying and evaluating exposure to systemic risks or 'shocks,' including those identified in the City's resilience strategy.

The SWOT analysis must also include a competitive assessment focused on comparing Costa Mesa to two competitor cities determined to be most similar to Costa Mesa in size, accessibility, proximity to tourism, age of development, business make -up, and any other socioeconomic indicators the consultants recommend. The competitive assessment may identify programs and projects that have been implemented in the comparison cities that would also benefit Costa Mesa.

6. Economic Benefit Scoring System
Since the City is a public agency with most of its goods/assets in its control due to market failure or regulation, that City's perspective on economic prosperity includes fiscal sustainability for the City and positive fiscal externalities to the business community. However, it is more than this as it captures ecological, social, and resiliency impacts as well. The City is a steward of the 16.5 square miles that makes up the City, its natural amenities, and resources. Social capital is a significant part of why current industries call Costa Mesa home. While some institutions in Costa Mesa predate the City, cities typically have the most extended shelf life and will be around longer than any one business. To ensure that City decisions only increase resiliency is critical. The consultant must develop a scoring system for any goal, policy, objective, or prioritized action to be given a score that reflects these considerations. This objecti ve scoring system will allow all considerations to be accounted for simultaneously and goals, policies, objectives, or prioritized actions to be shared in a simplified and more complete manner.

PHASE 2: A Vibrant Strategic Vision
The Vibrant Strategic Vision must have four critical sections:
• First, it needs to provide a clear vision of what economic prosperity means to Costa Mesa and what components is the City choosing to focus on.
• Second, it needs to give a clear and accurate b aseline to measure against for all relevant geographic levels (from international down to each Costa Mesa economic enclave). • Third, it needs to pull from various existing reports, datasets and required additional studies itemized in this scope of work to produce the most critical goals, policies, and objectives the City would need to focus on for the next 5 to 7 years. These goals should be specific enough to guide decision-making but salient and fundamental enough not to fluctuate with market pressures. • Fourth, since the document is meant to last 5 to 7 years, it must anticipate goals, policies, and objectives for each phase of the economic cycle. The vibrant strategic vision will also articulate how the City measures success and develop indicators for specific goals. 18 412

Exhibit A-6
The Consultant shall work with the City to accurately assess the semi -permanent economic attributes of the City of Costa Mesa. The Consultant will identify in this section the other planning documents which affect the economic vitality of the City, including but not limited to SCAG's SCS, Costa Mesa's General Plan and area plans, Orange Coast College Master Plan, Airport Land Use Plan, OC Fair and Event Center Master Plan, and more. The Consultant shall provide a summarized permanent condition of the City of Costa Mesa, which determines the geographic attributes of the City. This includes analyzing the collection of public property, vacant land, traffic volumes, and the extent of smart City applications.

The Consultant will establish a base year that will be used for projections, forecasting, implementation, and success metrics moving forward. This base year will be critical for community outreach discussions as well.

The Consultant will collaborate with City staff in developing and reviewing the Vision document. They will be responsible for drafting the document, managing the requested revisions, and keeping track of the authoritative version. The majority of document review will be electronic, but print copies will be requested for public heari ngs and some final versions published as a resource for leadership. The document should be able to be printed in black in white without any limitation to the legibility of the document. Furthermore, a more website and digital friendly version of the document will be requested to be uploaded to the City’s website in a searchable and interactive manner.

PHASE 3: Exploration of Key Economic Studies
The Consultant will produce standalone reports that include the data, analysis, and results of each of these concepts. The reports will include a detailed approach that implements each of these concepts and necessary actions for their launch.

1. Incentivizing development through intensity bonus programs

The City of Costa Mesa is 98% built out, and the State of California is pushing for additional housing. As the City continues to review how it might achieve its RHNA allocation, it is apparent that this may result in traditional commercial and industrial space transitioning to residential. At the same time, the vacancy rate for non-residential uses is well below average, and demand has persisted through COVID-19 due to the City’s location and accessibility. To preserve the potential for non-residential development and use the subsidized residential market to its fullest potential, the consultant will explore the idea of creating a development opportunity reserve. The consultant will help identify the most beneficial structure of this program, establish a framework, and assess its impact. An example is the City could bank lost non-residential square footage that future projects could leverage based on the proposed project’s economic benefit and quality in design. The Consultant will analyze the agreed upon program for its benefit based on existing versus projected demand of non-residential development and the potential development projects that may benefit from greater intensity. This type of incentive program may encourage potential residential projects to be mixed-use or provide growing businesses opportunity to expand in their current location without having to relocate.

19 413

Exhibit A-7

2. Shop Local Incentive Program

The City would like to continue to encourage the long- term success of small businesses. As a City with a good number of small businesses, the City would like to find oppor tunities to continue to encourage these businesses through incentive programs. The ideal would be to not only support local businesses but encourage local shopping practices and strengthen the relationship between City businesses, non -profits, and local patrons. While City staff drafted a contract with a white label application from Colu, the Consultant will provide recommendations as to how it might be implemented or provide recommendations on other small business incentive projects, programs, or policies that can be initiated as well that can have as good or greater of an impact.

3. Next Steps for the Costa Mesa BAC

The consultant will evaluate and recommend actions for the further development and management of the Costa Mesa Business Assistance Collaborative (BAC). The BAC was created in response to COVID -19 to merge resources from the Chamber, Travel Costa Mesa, South Coast Metro Alliance, and the City to help businesses and get the word out to the business community of the resources that are available to them. The BAC, as part of the coordinated efforts the City took in helping businesses through COVID -19, received recognition from the Los Angeles Times and received a Golden Hub Award. All participants want to continue working with the BAC, especially since, in the process, the City has developed a microsite for business development. It provides resources, guidance, and a platform for all licensed businesses within the City.

4. City-wide Fiber

The City has been approached in the past about city- wide fiber. While this a substantial infrastructure project, it would cost millions of dollars. The City knows that there is a significant economic benefit for this type of infrastructure project. Potential economic benefits include direct revenue, from leasing the lines to ISPs, generation of market competition, which drives down the price for local clients, faster internet speeds, which support and draws higher -paying jobs, cost savings from negotiating a reduced rate for the City's internet service, and the development of a smart city network, which will generate cost savings from additional efficiencies and attract tech- friendly businesses. The City consultant will provide a complete financial review of a City-wide fiber installation capital improvement project and a recommendation on how it could be funded and completed. The Consultant will calculate the estimated economic benefit to the market and directly to the City through a financial pro forma.

5. Project Specific Economic Benefit Model and Policy
The consultant will generate an editable or filterable project-specific economic effect model and economic impact review policy. The model would evaluate the positive and negative economic effects of a given development. It should be a site -specific analysis that includes all significant factors. This includes both the direct cost and benefit as well as the positive and negative externalities of a given project. The consultant will also develop an accompanyin g policy document that would propose how and when this model would be used. The policy would also 20 414

Exhibit A-8
include recommended exceptions to be considered by the City for development that addressed a significantly economic indicator which is substantially underrepresented within the City of Costa Mesa. Once the final model and policy are established the consultant would evaluate this program’s economic development benefit.

PHASE 4: Economic Best Practices
The City would require the consultant to provide insight int o best practices that create economic prosperity and available information as to how other Cities are implementing them. The consultant will provide City tailored options for best practices as itemized below in Costa Mesa and others recommended programs, projects, or actions by the Consultant that have a better economic benefit. Each concept, action, or project will be tailored for Costa Mesa, assessed based on overall economic benefit. If it has an economic benefit, it will be included in the potential projections or actions list. The consultant will provide at least one concept or idea that addresses each of the listed tasks or themes below or provide a replacement they share that has a proven greater economic benefit. The themes are:
• Develop & Retain Human Capital
• Decrease Economic Leakage
• Encourage Maturation and Growth of Existing Industries • Prioritize Capital Improvement Projects
• Leverage the Benefits of having Two Census Tracts Identified As Opportunities Zones • Establishing and Administration of Fiscal Incentive Programs • Branding and Marketing Techniques that Work
• Diversification of the City’s business portfolio
• Develop balance of businesses that thrive during different phases of the economic cycle • Encourage environmental sustainability while supporting economic prosperity • Support all phases of a businesses life cycle, especially incubators or start-ups • Preparation and response to current legislation
• Workforce Housing
• Develop sense of place and destination
• Increased City service efficiencies
PHASE 5: Resource Assessment
The Consultant will produce a comprehensive resource assessment that will develop a recommendation on immediate and long -term staffing, networking, and budgeting needs. This report will include the following three sections.

Staffing
The City of Costa Mesa currently has one staff dedicated to economic development within the City, and this has not been sufficient to meet the City’s current needs within this field, let alone additional tasks and projects that may be identified a s part of this action plan. The consultant will recommend a staffing structure necessary for a successful implementation of the Vibrant Strategic Vision and three action plan options (low, medium, and high) with increased intensity or number of action items planned at each level.

As part of this task, the consultant will provide a comparative analysis to other Cities within Orange County, and cities with similar service size, business make -up, square footage set aside for commercial 21 415

Exhibit A-9
and industrial uses, dev elopment maturity, and City budget. These recommendations will be based on what would be necessary to successfully execute the action items within a two-year timeframe.

Recommended Partnerships and Data Access
The consultant will provide recommendations on the growth and development of partnerships and the acquisition of data. This section will include recommendations on the prioritization, viability, and form of partnerships that generate specialized groups like business improvement associations or oppor tunity investment and collaboration with entities that provide grants, training, or support. The consultant will also provide a list of the City’s data needs and recommendations in order to provide for more accurate and precise indicators for economic succ ess of the City as a whole as well as assessing each economic action. This section should also provide clarity on the most efficient format of business assistance the City can provide and the best structure that would serve the business community the best.

Budget & Grant Recommendations
The City currently has no line -item in the City Budget for economic development -related tasks and projects. Currently, the City has three contracts for Economic Development related services focused more on providing the Cit y access to economic development businesses with comparative analytics or site selection tools. The consultant will estimate the budget necessary for the prioritized tasks established in Phase 4 and the goals set in Phase 2. The Consultant must also provid e recommendations on how this budget can be phased into the General Budget, including potential grant programs the City should be aware of and should apply for based on some of the tasks being identified within the project. This will include a list of prioritized grants or financial programs the Consultant recommends the City apply for to implement its economic development actions plan or goals.

PHASE 6: Implementation and Assessment Tools
The success or failure of this plan cannot be anecdotal. This Consu ltant will be expected to provide a system of assessment tools that will allow for the City to have a solid structure of metrics and measurements to track, review, and help City staff determine the level of success of a given project.

The Consultant will draft the metrics and modify them based on City review. The metrics will be collected and used to update the overall economic vitality of the City and each of the economic enclaves each year.

PHASE 7: Comprehensive Action List
Based on all of the informatio n gathered, the scoring of all potential projects and programs will be assessed based on the scoring system developed in Phase 1’s Economic Benefit Scoring System. The City will work with the Consultant to identify the collection of projects or programs th at can give the most significant benefit. A critical deliverable for the City is the list of all beneficial programs identified during this process, their score, other critical considerations, and a citation to any more detailed analysis conducted or found . The collection of projects will be determined based on level of benefit, comprehensiveness in addressing the established goals of the vision document, the duration it will take to implement the project, and its resource consumption. The Consultant will d evelop specific actions or markers for each program, project, or independent action with clear and precise metrics to match each one.
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Exhibit A-10
PHASE 8: Prosperity Action Plan
The Consultant will draft an easy -to-understand visual and branded final Prosperity Action Plan. The document will be include a (maximum 11 x 17) poster highlighting the action items set to be completed within the following few years. It will identify the action that must take place and the metrics that determine its level of success. This document will also include general economic metrics, benchmarks, and indicators for the City and the individual economic enclaves that were assessed in the initial evaluations and must continue to be tracked to assess success and progress on goals, objectives, policies, and the selected programs and projects.

The reporting template to be created by the Consultant; one for the City-wide assessment and the other for the economic enclaves.

The City is also looking for implementation measurements that would assess the level of success for each action plan item and the ones that remain on the list submitted to the City in Phase 4.

Project Schedule
This project must be completed within 9 months. The Economic Development Administrator and the consultant will determine the exact schedule for the public outreach meetings and the dates of key deliverables in the kick-off meeting(s). While the consultant will not be working onsite, the expectation is that meetings will be held in person unless otherwise requested by the City if they include members of the public, business community, or Executive leadership. Regular check -in meetings can be conducted remotely. The schedule must consider the economic cycle. Therefore, after initial studies are concluded and a vibrant strategic vision is established, the remaining section must be completed as quickly as possible since fluctuations in the economy can alter analysis results within those phases.

Deliverables by Phase

1. Economic Context – An Analysis of Costa Mesa
Comprehensive anal ysis of the economic markets which make up Costa Mesa, review the documents which regulate the City or large properties near or within the City, detailed studies and reports which look at e-commerce, contextual analysis, market cluster analysis, a GIS base d economic site value index to identify highest value nodes, a SWOT analysis, and an economic benefit scoring system to evaluate all potential actions for an unbiased assessment. This phase will also have a responsible community outreach component.

Deliverables:
• Separate and stand-alone studies on overall economic context for Costa Mesa, e - commerce’s effect on Costa Mesa economy, a market and industry cluster analysis, trends and opportunities from economic site value index, SWOT analysis, and result s and explanation of methodology for economic benefit scoring system. • GIS layers reflecting the economic site value index results and the other applicable studies.
• Economic benefit scoring system.
• Attendance and preparation for public outreach meetings, presentation materials, and detailed minutes. This includes a briefing memo to the City on this phase.

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Exhibit A-11

2. A Vibrant Strategic Vision
The consultant will generate Costa Mesa’s Vibrant Strategic Vision Deliverables:
• Draft and Final Vibrant Strategic Vision
• Attendance and preparation for public outreach meetings, presentation materials, and detailed minutes. This includes a briefing memo to the City on this phase.

3. Key Economic Studies
The Consultant will produce standalone reports that include the data, analysis, and recommendations surrounding key concepts including: cap and trade program for development intensity (transfer of development rights program), growth of shop local incentive programs, development of the Costa Mesa BAC, implementation of a City -wide fiber project, and the development of a project specific economic benefit model and accompanying economic benefit policy for development projects.

Deliverables:
• Separate and stand-alone studies on: Cap and Trade of Development Intensity, Growth Strategy of Shop Local Incentive Program, Growth Strategy for Outreach, Branding, and Collaboration, Fiscal benefit analysis of implementation options for a city -wide fiber project, Study on cost benefit analysis of an Economic Benefit Policy and Model. • A Project Specific Economic Benefit Model.
• Attendance and preparation for public outreach meetings, presentation materials, and detailed minutes. This includes a briefing memo to the City on this phase.

4. Economic Best Practices
The Consultant will review major economic themes provided by the City and provide a potential best practice, project, program, or action for each of them.

Deliverables:
• Separate and stand- alone study that provides the City with at least t en programs, projects, or actions that would have the highest economic benefit to Costa Mesa. There must be at least one recommended action that speaks to each of the most critical economic themes identified in the scope of work.
• Attendance and preparatio n for public outreach meetings, presentation materials, and detailed minutes. This includes a briefing memo to the City on this phase.

5. Resource Assessment
The Consultant will assess the staffing, networking, and budget needs to implement the recommended action plan and identify potential funding sources available for identified projects.

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Exhibit A-12
Deliverables:
• A stand-alone report which reviews current staffing, par tnerships, tools, and budget as well as provides recommended actions for each based on three levels of alternatives. • Attendance and preparation for public outreach meetings, presentation materials, and detailed minutes. This includes a briefing memo to the City on this phase.

6. Implementation and Assessment Tools
Evaluate and identify specific indicators and metrics to be used to assess progress and success for each proposed action.

Deliverables:
• A stand -alone report which matches objectives with best measu rable indicators and establishes metrics for success or sustainability for each of those goals, policies, objectives, or specific actions.
• Attendance and preparation for public outreach meetings, presentation materials, and detailed minutes. This includes a briefing memo to the City on this phase.

7. Comprehensive Action List
The Consultant will create a complete list of recommended projects, programs, and actions necessary to implement the strategic vision. The consultant will evaluate each based on the Action’s Economic Benefit scoring system, then determine the prioritization of the listed actions and their associated indicators or metrics.

Deliverables:
• A prioritized recommended action list with associated economic benefit score, indicators, and metrics.
• Attendance and preparation for public outreach meetings, presentation materials, and detailed minutes. This includes a briefing memo to the City on this phase.

8. Prosperity Action Plan
Generate the Prosperity Action Plan.

Deliverables:
• Draft and Final Prosperity Action Plan
• Attendance and preparation for public outreach meetings, presentation materials, and detailed minutes.
• Attendance and preparation for public outreach meetings, presentation materials, and detailed minutes. This includes a briefing memo to the City on this phase.

Adoption Plan
A successful adoption of this Economic Development Strategic Plan involves: community support throughout the development process and buy-in; a successful review and recommendation from Planning 25 419

Exhibit A-13
Commission; app roval of the Economic Development Strategic Plan from City Council; visuals and marketing components uploaded to costamesabac.com and the City Website; and a dynamic ESRI story map that explains the goals and objectives of the Vibrant Strategic Vision and the list of prioritized actions within the Prosperity Action Plan; resources for the annual evaluation of the Economic Development Strategic Plan; and instructions and clear methodology on the use and parameters of the models requested as part of this deliverable with training and support for each during their initial use by staff.

Project Management
Structure of Contract
The City is seeking to partner with an Economic Development Consulting firm or collection of firms that have extensive experience with d eveloping an economic development strategic plan for a local government agency, conducting sophisticated spatial economic analysis, and collaborating with a City’s business community. The City seeks to build a partnership with the Consulting firm and take a collaborative and tailored approach to create a vibrant, and innovative strategic plan unique to Costa Mesa. Due to the number of documents and phases required for this effort, the City is seeking a deliverables-based contract. While the City has establi shed the individual deliverables, approach and order of tasks listed in the contract will be mutually agreed upon by the City and the Consultant. All deliverables will be approved by either the Economic Development Administrator (EDA) or the Economic & Development Services Director (EDSD). It is anticipated that some deliverables will be first provided in a draft format only and final approval given once additional phases are complete so the product can be analyzed as a whole. The consultant will be coordinating all efforts with the EDA and therefore any scope change, adjustments, or support will come through the EDA. All research materials, models, GIS layers, and draft/final documents will belong to the City and will be provided in a curated format during and especially at the end of the project. Project completion is requested within nine months of the first kick - off meeting and proposals should provide a detailed schedule detailing how that deadline would be achieved.

Success Criteria and Approval
The success of this project is measured by first the successful completion of all deliverables, second the approval of each from the EDA or EDSD, third the adoption by City Council of a final Economic Development Strategic Plan, for the successful implementation of the findings, goals, objectives, and prioritized actions, and fifth the circulation and shared communal knowledge of those goals through successful branding and marketing materials, and presentation on digital media.

Evidence of Success
The Consultant will provide two references of Cities that they have worked with to develop an economic development strategic plan who can demonstrate measurable success in the implementation of that plan.

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Exhibit A-14
Costa Mesa’s Economic Enclaves

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EXHIBIT B

CONSULTANT’S PROPOSAL

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Proposal Review Committee
City of Costa Mesa, Development Services Department

REQUEST FOR PROPOSAL (RFP) #22-02:

City of Costa Mesa Economic Development Strategic Plan
77 Fair Drive
Costa Mesa, CA 92626

Submitted on May 3, 2022 by:

Irvine, California

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Table of Contents

Cover Letter ................................ ................................ ................................ ................................ .......1 Section 1 – Organizational Information ................................ ................................ ............................... 4 Organizational Chart ................................ ................................ ................................ ......................5 Project Team – Key Personnel ................................ ................................ ................................ .........5 Resumes ................................ ................................ ................................ ................................ .....5 Section 2 – Project Approach and Timeline/Schedule ................................ ................................ ........ 12 Project Approach ................................ ................................ ................................ ......................... 12 Phase 1 – Economic Context – A Comprehensive Analysis of Costa Mesa ................................ .... 12 Phase 2 – A Vibrant Strategic Vision ................................ ................................ .......................... 14 Phase 3 – Exploration of Key Economic Studies / Development of Action Plan ............................ 14 Phase 4 – Assessment and Development of Economic Best Practices ................................ .......... 16 Phase 5 – Resource Assessment Recommendations ................................ ................................ ... 16 Phase 6 – Implementation and Assessment Tools ................................ ................................ ...... 17 Phase 7 – Comprehensive Action Plan List for Costa Mesa ................................ ......................... 17 Phase 8 – Prosperity Final Action Plan ................................ ................................ ....................... 17 Project Timeline/Schedule ................................ ................................ ................................ ............ 18 Section 3 – Local Preference ................................ ................................ ................................ ............. 19 Section 4 – Identification of Subcontractors ................................ ................................ ...................... 19 Section 5 – Insurance ................................ ................................ ................................ ....................... 20 Section 6 – Financial Capacity ................................ ................................ ................................ ........... 20 Section 7 – Disclosure ................................ ................................ ................................ ...................... 20 Section 8 – Professional Service Agreement ................................ ................................ ...................... 20

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Cover Letter
The creation and adoption of the City of Costa Mesa’s first ever Economic Development Strategic Plan provides a crucial roadmap for accelerating economic growth and improving residents’ quality of life. T roadmap that TCCG creates will reflect the economic, demographic, and social opportunities currently presenting themselves that will ensure that the city can leverage its competitive advantages to further advance growth for its businesses and residents. Costa Mesa has its own set of unique strengths and weaknesses which, if properly studied and analyzed, can be leveraged to ensure equitable economic growth throughout the city.

Located in the heart of Southern California and in one of the nation’s largest counties, Costa Mesa is an incredible location for both individuals and businesses alike that attracts residents and tourists from all over the world. It boasts South Coast Plaza, one of the nation’s highest grossing shopping centers per square foot and the innovative open retail developments The Lab and the Camp – popular among young professionals and families – as well as the Orange County Fair and the beautiful Upper Newport Bay Nature Preserve. Costa Mesa, in order words, offers residents a multitude of attractive amenities while also providing access to a broad range of industry sectors and innovative businesses. It also has another key advantage, a highly educated workforce. The percentage of Costa Mesa residents 25 and older with a Bachelor’s degree from

37.5 percent in 2015 to 41.1 percent in 2020
Despite the attractive labor market and amenities offered by the city, it faces challenges common to many com munities: a lack of affordable housing for lower -income residents, young professionals, and young families; an aging workforce putting into question the future of the labor market; and a skills mismatch between employer needs and employee qualifications.

Solving many of these problems, especially the skills gap, will require collaborative efforts between private industry, academia, and trade schools that can quickly and effectively respond to business needs. Doing so will ensure that businesses can find qualified, local workers helping to reinforce economic activity and spending in the region while simultaneously attracting new businesses and workers into the region.

Global, national , and regional economies are all in a transitional period due to the COVI D-19 pandemic, rapidly rising inflation and the armed conflict between Russia and Ukraine. Because Costa Mesa’s economy is affected by these macro -level changes as well as more local demographic trends and affordability concerns, this economic development strategy will assess how all of these trends could impact local competitive advantages and other facets of the local economy.
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Due to strong regional differences in economic, demographic, and social structures in cities across the U.S. and California, a one-size-fits-all approach to the economic recovery is unlikely to be successful or efficient or be a good fit for Costa Mesa. That is why a local team like ours is so important for understanding Costa Mesa’s unique context. Therefore, it is imperative for local and regional economies to perform in-depth analyses of their economic, demographic, and social structures in order to craft unique, actionable strategies tailored to their current economic environment and individual goals. We applaud Costa Mesa for taking this important step forward at this crucial time.

In order to provide the most comprehensive analysis of Costa Mesa, the Project Team will include OCBC’s Chief Economic Advisor, Dr. Wallace Walrod, and subcontractors Principle Economist Dr.

Robert Kl einhenz from Kleinhenz Economics , Benjamin Palmer from SEED Consulting , and Community Outreach /Engagement Consultant Rebecca Alvarez . Our team will draw on its decades of expertise, familiarity with the region, and deep relationships with private industrie s, academia, and regional stakeholders.

The majority of the Project team are centrally located in Orange County and thus uniquely positioned to undertake the Economic Development Strategic Plan due to deep experience and extensive history in the region. Dr. Walrod has lived and worked in Orange County for over 30 years, experience that has given him an unparalleled knowledge of local and regional standings and trends, leading to his reputation as a respected leader on economic development matters .

Thanks to his long work history in the region, Dr. Walrod is also extremely familiar with local and regional industry groups and private industry leaders as well as local government leaders.

This knowledge extends to Costa Mesa, as he has frequently given economic presentations to local organizations, including the Costa Mesa Chamber of Commerce. Dr. Walrod also conducted a Business Economic Impact Analysis for the Orange County Transportation Authority which detailed the potential impacts to local businesses if the 55 freeway was to be extended in an attempt to reduce traffic congestion. As part of this study, all businesses along the 55 freeway/Newport Boulevard corridor in Costa Mesa were catalogued and many surveyed and interviewed regarding their dependence on traffic and how that might impact their businesses.

Dr. Robert Kleinhenz, who currently resides in Long Beach, a lso has significant work experience in Southern California and Orange County, specifically at California State University, Long Beach where he serves as the Associate Director of Economic Research and Adjunct Professor. Robert has also worked extensively w ith California State University, Fullerton and has presented a number of economic outlook and update reports to organizations across Southern California.

Robert previously worked as the Chief Economist for the Los Angeles Economic Development Corporation (LAEDC), a professor at California State University, Fullerton’s College of Business Administration and Economics teaching a range of courses from urban and regional economics 32 426
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Section 1 – Organizational Information

TCCG Tech Coast Consulting Group LLC (TCCG) is an economic development management consulting, strategic planning, and economic research firm based in Orange County that serves corporate, government, foundations, and non -profit c lients. Dr. Wallace Walrod, TCCG’ Managing Partner, is a leading voice on economics, housing, labor markets, business climate, economic development, workforce development, and a variety of economic and public policy research and data analytics topics of i nterest in the Southern California region and statewide.

Established in 2000, TCCG’s work includes designing innovative research, strategy, and policy solutions for the private sector and government.

TCCG is one of California’s leading research organizations with substantial economic, workforce development, housing, and infrastructure research capabilities and expertise. Dr. Wallace Walrod will be the Project Manager for this project, is available 100% time for this project. Dr.

Walrod has the capability to reallocate resources as needed to meet the city of Costa Mesa's Economic Development Strategy schedule.

TCCG is one of the most highly regarded research organizations in California and has developed a stellar reputation throughout the region regarding infrastructure, economic development, and housing issues. With a long history of involvement with transportation, infrastructure, and local and regional economic development issues, TCCG is exceptionally well positioned to provide in- depth assessments of Costa Mesa . TCCG’s research arm has developed a stellar reputation regionally and statewide as a cutting-edge provider of impartial, credible, and objective research to a wide variety of top-tier organizations throughout California.

TCCG operates in Irvine but has obtained a statewide reputation as one of the most active and influential research organizations in California. TCCG’s success is integrally connected to its ability to represent all policy opinions dispassionately with only the most solid research objectivity. The organization adheres to the highest professional research standards, a true commitment to client impact, and broad relevant experience and expertise in the public policy arena representing the foundation of any research services provided.

TCCG possesses substantial experience as a liaison between the public and private sectors , including a long history and track record in transportation and infrastructure economic research and policy. TCCG’s core research areas include economic, infrastructure, workforce and economic development, and workforce housing policy and impacts. TCCG aspires to become a true partner in research consulting by helpin g our clients address complex business, organizational, public policy, and strategic challenges. Our clients achieve significant and sustained improvements in their performance.
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For 30 years, Dr. Wallace Walrod and TCCG have been studying and applying rese arch analysis, demographics, and economic thought to economic and workforce development issues in Orange County and throughout Southern California. Dr. Walrod has developed the research methodology and project plan for each TCCG project and has taken leading roles in TCCG’s research on workforce development, infrastructure policy, housing, and economic development. His work includes designing innovative program, strategy, and policy solutions for private industry, government, and private foundations, including the annual Orange County Community Indicators, Workforce Housing Scorecard, Workforce Housing Toolkit, Public Officials 101, annual Workforce Indicators , and Orange County Comprehensive Economic Development Strategy (CEDS), and Sustainable Communities Strategy. This work includes managing the work of research associates to ensure successful completion of each research effort, conducting much of the analysis, writing reports, and presenting results to clients and stakeholder groups.

Organizational Chart

Project Team – Key Personnel
Project Manager – Dr. Wallace Walrod
Lead Consultant – Dr. Robert Kleinhenz
Research Director – Benjamin Palmer
Community Outreach Consultant – Rebecca Alvarez
Resumes

Project Manager
Dr. Wallace Walrod
Lead Consultant
Dr. Robert Kleinhenz
Research Director
Benjamin Palmer
Rebecca Alvarez
Community Outreach/
Engagement
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Dr. Wallace Walrod
7545 Irvine Center Drive #200, Irvine, CA, 92618(949) 280-5492; [email protected]

Managing Partner and Chief Economic Advisor, Tech Coast Consulting Group LLC Chief Economic Advisor, OCBC, SCAG, and Draper Innovation Index

Dr. Wallace Walrod is Chief Economic Advisor for the Southern California Association of Governments (SCAG), the nation’s largest Metropolitan Planning Organization (MPO), Orange County Business Council (OCBC) and the Draper Hero Institute (San Mateo). He is also a strategic research advisor to OCTANe and Visionary Venture Fund, an Executive Consultant with Esri, a Strategic Advisor to EdTech Capital (Texas), and an Expert in Residence at UC Irvine’s Institute for Applied Innovation.

Dr. Walrod has led st rategic projects with world-class organizations including JP Morgan Chase, Allergan, the Draper Hero Institute, Toshiba America Information Systems, Hitachi Chemical, Merrill Lynch, Balanced Business Advisors (New York, NY) the Irvine Company, First Americ an Corp, Citizens Business Bank, Bank of America, Esri, Wexford Capital, Pacific Life Foundation, and the James Irvine Foundation, among others and many public sector agencies such as County of Orange, OCTA, Anaheim, Santa Ana, Irvine, and Huntington Beach Dr. Walrod played a key role as part of the SCAG team that developed SCAG’s Inclusive Economic Recovery Strategy (IERS). The IERS plan includes specific recommendations in four focus areas – housing, transportation, growth sectors and human capital – and identifies opportunities to promote equity -oriented industry growth, job creation, entrepreneurship, and small business success.

Among the key recommendations included in the Inclusive Economic Recovery Strategy:
• Develop a Broadband Action Plan to lead a nd support regional efforts in bridging the digital divide.
• Develop a regional blueprint for zero -emissions medium- and heavy-duty truck charging infrastructure.
• Identify priority transportation and infrastructure projects across the region that will invest in and directly benefit low-income and communities of color. • Join the state in advocating for a federal jobs guarantee. • Work with transit agencies to facilitate the adoption of the U.S. Employment Plan to create local jobs through future equipment and supply procurement.

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Dr. Walrod also played a key role in the development of SCAG’s recently launched Regional Data Platform (RDP). SCAG’s RDP is a collaborative data sharing and planning system designed to facilitate better planning for cities and counties of all levels across the region as a whole, streamline the process of collecting and integrating data from member agencies to SCAG, and to facilitate transparency and collaboration, locally and regionally, to drive more democratic and sustainable planning
The RDP is a signature element of SCAG’s Future Communities Initiative – a work program adopted to accelerate SCAG’s leadership in technology and big/open data to promote a smarter and more connected region. As one of SCAG’s largest and most transformative projects to-date, the RDP focuses on using data to help solve our common challenges.

The RDP standardizes regionally significant datasets, provides opportunities for local partners to update their data in real-time, and draws insights from local trends by monitoring transportation, land development trends, housing and economic growth, and sustainability conditions. The platform also features a data -driven collaboration hub for local jurisdictions to engage with stakeholders for individual projects, such a s local and regional land use planning, active transportation planning, greenhouse gas reduction strategies and development impact assessments.

In his role as Chief Economic Advisor to the Draper Hero Institute, founded by legendary Silicon Valley venture capitalist and entrepreneur Timothy C. Draper, Dr. Walrod has led development of both the Draper Innovation Index – Global (DII Global) and Draper Innovation Index – US (DII US). In October 2021, the Draper Hero Institute (DHI) announced the Draper Innova tion Index Global 2.0, which is the first index of its kind to be updated monthly to reflect the most current state of the ever -evolving state of economic opportunities, economic freedom for innovators, entrepreneurs, and investors around the globe.

Dr. Walrod is also the Founding President of the Center for a New California , which plays a key role in shaping the state’s economic future by focusing on emerging economic trends such Future of Work, which studies the impacts of automation, robotics, AI, and other advanced technologies on the California economy. Dr. Walrod graduated with a PhD in Regional Economics from UC Irvine. His dissertation studied successful strategic management practices in high -tech firms, including advanced electronics and biotechno logy. He has published three papers co -authored with Luis Suarez -Villa in Disasters, Journal of International Biotechnology, and Urban Studies (Donald Robertson Memorial Prize winner). He recently published Dimensions of Defensibility, a national study on the Future of Work. He is quoted frequently in the Los Angeles Times, Orange County Register, Wall Street Journal, The Economist, Entrepreneur, and other publications on economic and business matters.

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Dr. Robert A. Kleinhenz
Kleinhenz Economics; [email protected]; 213.925.0221

Over 30 years of experience in conducting economic research and analysis as well as strategic planning in private and academic sectors, and as consultant to public and private sector clients:
• Regularly participates in media coverage of economy, including the labor market and housing industry. Conducted over 2,000 interviews with numerous local, state, and national media outlets including the Wall Street Journal, CNBC, Bloomberg News, the Los Angeles Times, the Los Angeles Daily News, the San Francisco Chronicle, NPR, radio stations in across California and the U.S. Authored or co -authored several hundred publications, including over 200 in - depth economic research studies on the economy, its industries, and the real estate/housing market.
• Specialty in regional economics with an emphasis on land use, transportation, business location, and real estate. Experienced in application of general economic analysis, forecasting and other statistical methods, regional economic models including economic impact analysis, and survey research methods.

EXPERIENCE
PRINCIPAL ECONOMIST/FOUNDER: Kleinhenz Economics, 2019 -Present. Private economic consulting practice, involving economic analysis/public policy research conducted on behalf of clients as well as public speaking engagements.
• Recent/current clients: Inland Empire Economic Partnership, Los Angeles Orange County Regional Consortium of Community Colleges, Downtown Long Beach Alliance, California Association of School Business Officials, California Association of Realtors, City of Long Beach

LECTURER/ASSOCIATE DIRECTOR OF RESEARCH: California State University, Long Beach, January 2020-Present.
• Associate Director, Office of Economic Research: Cond ucts applied economic research and analysis, delivers talks on national, state, and local economy. • Courses taught: Fundamentals of Economics (Econ 300 survey course), Forecasting (Econ 420), International Finance (Econ 471), Urban Economics (Econ 437).

ECONOMIST/EXECUTIVE DIRECTOR OF RESEARCH : Beacon Economics, 2016 -2019. Oversaw research activities and client products/services; as a leading spokesperson for the company, provided regular commentary on the economy in the media; delivered talks to a variet y of groups; member of organization’s Executive Management Team. • Delivered presentations on national, state, and local economies to groups across California and the U.S. Presented economic forecasts and the outlook for industries, including the real estate sector to audiences that range in size from corporate boards of directors to large chambers of commerce and industry.
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• Directed Beacon client research practice, which gathers data, conducts analysis and forecasting, produces reports, provides litigation services, and public policy research. • Frequent contributor to media coverage on Southern California, California, and national economy, labor market and key industries, including both residential and nonresidential real estate.

CHIEF ECONOMIST: Los Angeles County Economic Development Corporation (LAEDC), 2012-2016.

Head of Kyser Center for Economic Research, playing a leading role in Southern California in analyzing economic and industry trends, producing economic forecasts, and providing regular commentary in the media; member of organization’s Management Team. • Delivered speech presentations annually on national, state, and local economies and housing markets to variety of audiences.
• Directed LAEDC Kyser Center research team, which included gathering data, conducting analysis, and producing reports such as semi-annual economic forecasts, international trade outlook, and detailed industry studies.

DEPUTY CHIEF ECONOMIST/SENIOR ECONOMIST: California Association of REALTORS® (C.A.R.).

Directed Research & Economics Department, which gathers and publishes information on the California housing market and economy, and also conducts survey research of consumers and C.A.R. members; member of organization’s Management Team and staff coordinato r of organization’s Strategic Planning and Finance function. • Frequent contributor to media coverage of housing market stories, particularly those associated with C.A.R. housing market statistics and forecasts. Wrote articles for C.A.R. magazine, newsletters, and website.
• Delivered speech presentations annually on national, state, and local economies and housing markets to real estate groups, mainly throughout California but also elsewhere in the U.S. • Directed primary data collection and analysis of housing market data, directed survey research/primary data collection of consumers and members. Author or co-author of reports based on survey results.

DIRECTOR: Center for Economic Education, California State University, Fullerton. Ran professional development/continuing education programs for college and high school instructors and programs to promote economic literacy.

ASSISTANT DIRECTOR/RESEARCH ASSOCIATE: Institute for Economic and Environmental Studies, California State University, Fullerton.

EDUCATION
Ph.D. in ECONOMICS : University of Southern California. Major Field: Urban & Regional Economics.

M.A. in ECONOMICS: University of Southern California.

B.A. in ECONOMICS: University of Michigan.
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Benjamin J. Palmer

69 Malden Street, West Boylston, MA 01583; [email protected]; 714.393.0487

EXPERIENCE

FOUNDER/CEO ● SEED Consulting ● Worcester, MA ● April 2020 - Present: Founded a new social, economic, employment, and demographic consulting firm focused on providing private, public, and municipal organizations with in -depth research and analysis along with actionable strategies for furthering economic development and growth.

• Worked alongside industry leading economists providing a variety of consulting services including research and development of economic impact reports including a study on emerging and existing industry clusters in Mendocino County and broader 4-county region. • Co-authored several economic reports including the 2019 -2023 Orange County Comprehensive Economic Development Strategy Report (CEDS).

RESEARCH ASSOCIATE/CONSULTANT ● ORANGE COUNTY BUSINESS COUNCIL ● Irvine, California ● March 2015 – April 2020:

Acted as lead and key personnel for several annual economic, demographic, and housing-related reports focused on the local region, state and nation as well as creating reports assessing the local economic impact of major locally-based organizations and industries. • Lead author for the following documents including but not limited to: Orange County (OC) Comprehensive Economic Development Strategy Report, OC Housing Scoreboard, OC Community Indicators Reports, OC Workforce Indicators Reports. • Analyzed and reported on the direct, indirect, and induced economic impacts associated with major industry clusters and key employers such as Allergan.

RESEARCH ANALYST ● THE IRVINE COMPANY ● Irvine, California ● December 2011 – April 2013:

Key member of a cross-divisional research department that provides demographic, economic and financial research analyses used to assess correlating effects in the financial and real estate markets.

• Provided financial and organizational information of cur rent and potential customers to the Chairman, board members, senior staff and leasing directors. • Created various targeted customer lists for leasing directors based on location, number of employees, revenue growth, lease expiration and industry.

EDUCATION
• M.B.A., - The University of California, Irvine (Irvine, California), June 2017 • B.S., Regional Development – The University of Arizona (Tucson, Arizona), May 2009 • LEED Green Associate Level Certification – Green Building Certification Institute (Los Angeles, California)
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Rebecca Alvarez

124 W Avenida Valencia, San Clemente, CA 92672; [email protected]

EXPERIENCE

NP Strategies, San Diego, CA (2005-Present) CO-FOUNDER & PRINCIPAL Successfully launched nonprofit strategy consulting organization more than 15 years ago focused on serving nonprofits, foundations, and other mission -driven organizations in Southern Calif ornia. Lead business development and manage all day -to-day operations. Client experience includes healthcare, education, arts, community and economic development, youth development, scientific research, and philanthropic organizations. Conduct thorough res earch and analysis, work collaboratively with clients, facilitate focus groups and planning sessions, manage quality across all NP Strategies’ deliverables.

Bainbridge, Inc., San Diego, CA (2001 – 2005)

CONSULTING MANAGER
Principally responsible for managing projects and providing project oversight/training to project managers and business analysts. Acted as quality control manager for all consulting engagements, ensuring that research, analysis and recommendations met client objectives. Led internal i mprovement initiatives, recruiting efforts, client feedback sessions, performance appraisals, and mentor program. Participated in business development efforts including proposal writing. Accomplishments include:
• Developed and implemented a company -wide im provement initiative aimed at increasing customer loyalty and employee retention.
• Increased client satisfaction rates and repeat client engagements.

PROJECT MANAGER
Managed client relationships and analyst teams from project start to finish ensuring clie nt expectations were exceeded. Organized teams, planned project deliverables and presented to clients. Led research and analysis efforts—providing recommendations that enabled clients (often directors of marketing or market research) to make informed busin ess decisions regarding positioning and sales/marketing strategy.

Participated in business development efforts. Accomplishments include:
• Maintained long -term client relationships with leading search technology providers and conducted projects that involved research and analyses of market trends, competitor positioning and new product innovations.

SENIOR BUSINESS ANALYST
Conducted primary and secondary source research for Fortune 1000 client base. Gathered and analyzed data and created client presentation s for a variety of projects, including strategy development, merger and acquisition searches, customer analyses, and benchmarking studies. Presented research and recommendations to clients.

EDUCATION
• Masters in International Management; University of California, San Diego • Bachelor of Arts in Spanish and International Relations; University of Delaware

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Section 2 – Project Approach and Timeline/Schedule

Project Approach
TCCG has significant experience in researching, analyzing, and reporting on the economic, demographic, and social trends which transform cities’ labor markets, economic growth, and overall economic development. The team’s wealth of experience at the local Orange County level highlights our overall approach – we understand Orange County and we understand Costa Mesa from decades of experience. The team’s work on Orange County’s 2019-2023 Comprehensive Economic Development Strategy not only highlights this experience but provides a baseline roadmap for the City of Costa Mesa’s First Economic Development Strategic Plan.

Phase 1 – Economic Context – A Comprehensive Analysis of Costa Mesa Using the best available proprietary and government data sources, the first phase of th is Economic Development Strategic Plan will involve the creation of a data repository where a variety of economic, demographic, and social metrics will be aggregated an analyzed. Detailed demographic breakdowns will provide measures of populations by age, educational attainment, income levels, homeownership rates, rental prices, home values, and building permit activity .

Industry and occupational employment and wages trend will shed light on unemployment trends, localized industry clusters , and specializations which can be better leveraged or supported. An assessment of current workforce skills and occupational demand will be conducted through the analysis of job postings , which will show the most in -demand skills, qualifications, educational attainment, and occupations.

Reflecting statewide affordability concerns, special attention will be placed on cost -of-living trends in the region including housing costs and population migration trends to help determine how rising prices are impacting the region and subsequently serving to attract or push out young professionals and families. Additionally, an assessment of the COVID-19 pandemic and how it has impacted the region will be provided. Combined, these aggregated data and analyses will provide the economic context for Costa Mesa and serve as the backbone for the Vibrant Strategic Vision.

Community outreach and engagement will be a key success factor for this project, and Dr.

Walrod, Dr. Kleinhenz, Ben Palmer, and Rebecca Alvarez have experience across a wide range of public and business community outreach and engagemen t projects. Dr. Walrod especially has deep experience in working successfully with the local business community.

In order to help guide the Project Team and to gain additional insights into local trends, issues or concerns, a minimum of eight onsite community engagement meetings will be undertaken (one at each economic enclave in Costa Mesa) with at least one of these meetings conducted in Spanish. The importance of these meetings cannot be understated as they will help further 42 436
ground the study in current economic, demographic, and social realities as well as provide unique points-of-view from residents or local business leaders that the Project Team might not otherwise take into account. To ensure these community engagement meetings are run efficiently and produce valuable insights, Dr. Walrod and Rebecca Alvarez will oversee and attend these meetings. Rebecca Alvarez, Co-Founder and Principal of NP Strategies and a San Clemente local, has deep experience in organizing and conducting public and community ou treach meetings, having facilitated a number of cross -sector collaboratives and leadership teams in developing and executing shared visions . Rebecca Alvarez also earned her Bachelors of Arts in Spanish and International Relations, giving her a unique advantage and experience in conducting one of the community outreach and engagement meetings in Spanish.

In order to ensure all possible facets of Costa Mesa are accounted for in the Vibrant Strategic Vision, the Project Team will first draft up the six stand -alone reports requested in the RFP.

Experience from one previous project, Inside Orange County’s Retail E -Volution – a comprehensive 2018 research report that analyzed the impact of e -commerce on Orange County’s retail sector, land use, sales tax revenue, and labor force – gives the project team unique insights into local e -commerce and brick -and-mortar retail trends. The continued, accelerating growth of e -commerce makes it imperative that Costa Mesa understands its competitive advantages so that it may better support local economic activity and growth.

It is also important to understand each of Costa Mesa’s 7 economic enclaves, especially their economic performance relative to each other and the broader city, county, state, and nation.

Each Costa Mesa enclave has its own strengths and weaknesses, which will require individualized economic strategies drawing on a detailed understanding of each enclave, its population, leading industries, largest employers, and income levels. Due to current affordability concerns, special attention will be placed on the projected demand for specific land use types based on projected job and industry growth.

The third stand -alone report to be provided as part of the Costa Mesa Economic Development Strategic Plan will be an Economic Site Value Index. This Index will assign ‘property scores’ to various properties throughout Costa Mesa including retail, industrial and commercial properties, scores that reflect each property’s future commercial or industrial development potential, geographic location, uniqueness, and other metrics . These scores, which draw on the team’s previous experience on Inside Orange County’s Retail E -Volution, help city officials, developers, and local stakeholders determine which properties are best suited to be converted into mixed - use or residential uses.

A SWOT (Strength, Weaknesses, Opportunities, Threats) analysis of the data gathered during this first Phase will determine any potential systemic risks or opportunities that the Costa Mesa could plan for or leverage. Alongside this SWOT analysis, two comparable, competitor cities will be 43 437
chosen based on size, accessibil ity, businesses, industries, income levels and a variety of other socioeconomic metrics.

The final stand -alone report will be the Economic Benefit Scoring System , which will score the broad impacts of any policy or action in a complete but accessible way. Considering the number of goals, strategies and objectives presented to city leaders and stakeholders, it is imperative to fully understand and comprehend the impacts these goals or policies will have ; this Economic Benefit Scoring System will aid in providing city leaders and stakeholders with a quick assessment of policy impacts so that they can easily compare policy impacts with one another to determine the best course of action.

Phase 2 – A Vibrant Strategic Vision
A clear, concise Vibrant Strategic Vision will be based on the data, trends, and insights gained during Phase 1 of this Economic Development Strategic Plan as well as input from Costa Mesa staff. It will serve as the roadmap for how Costa Mesa can drive economic prosperity for both its businesses and residents.

The first step in creating the Vibrant Strategic Vision will be to assess and review insights, trends, recommendations, and conclusions found in existing local and regional reports. These documents include but are not limit ed to the Southern California Association of Governments ’ (SCAG’s) Sustainable Communities Strategy (SCS) ; Costa Mesa’s General Plan; Orange Coast College Master Plan; Airport Land Use Plan; and OC Fair and Event Center Master Plan. Analysis of these reports will help the creation and guidance of the most critical goals, policies, and objectives Costa Mesa should focus on in the next 5 to 7 years as well as shedding light on the effectiveness of past policies and strategies.

The Vibrant Strategic Vision will clearly indicate how Costa Mesa measures economic prosperity, which components have been chosen and why, and provide a baseline for growth so that Costa Mesa can measure progress, not only over time, but also in comparison to other neighboring or peer cities and regions. Because we’ve all seen how much has changed during the past 2 years, this report will attempt to future market shifts and provide guidance, strategies, or policies for the 5-7 year time frame.

The Vibrant Strategic Vision will help to p rovide an assessment of the current state or condition of Costa Mesa. In doing so, the Project Team will create a foundation for future data metrics, which will help track Costa Mesa’s continued economic development. These metrics – and the strategic Vision itself – will be chosen through a collaborative effort between Costa Mesa and the Project Team to ensure the Vision correctly communicates the overarching goals of the Economic Development Strategic Plan.

Phase 3 – Exploration of Key Economic Studies / Development of Action Plan Alongside the six stand -alone reports communicated in the First Phase , five additional stand - alone reports will be created in this phase, touching on five important concepts. The first stand- 44 438
alone report will be an assessment of how to incentivize development in Costa Mesa through an ‘intensity bonus program.’ Costa Mesa is largely built -out but still experiences high real estate demand, which makes it increasingly important to determine how much value existing, non - residential properties currently have and how to convert these properties into better, value - generating assets. This report will build off the insights gained during the creation of the Economic Benefit Scoring System and help to assess a project’s existing or potential benefit to the region. This will also include the creation of a ‘development opportunity reserve’ from which Project Team will determine the economic benefits of different programs so that the best course of action can be followed.

The important of shopping locally was a major highlight of the COVID-19 pandemic. While major retailers leveraged online delivery services to ensure consumers could still purchase their goods, smaller organizations who lack that infrastructure and were forced to halt in -person shopping saw their sales plummet and many were forced to close their doors. The bene fits of shopping locally can be dramatic, with multiplicative economic impacts as money between employers and employees and businesses and consumers change hands. Therefore, another stand-alone report will be created to assess the success or failure of any current incentive programs while also providing recommendations on other small business incentives programs or policies measured or observed in different cities which may increase or accelerate shopping locally.

Working off the findings of the Shop Local ly Incentive Program analysis, a stand -alone report evaluating and providing an action plan for the Costa Mesa Business Assistance Collaborative (BAC) will be created. Considering the success of the BAC and its evolution into a microsite for business development, it is imperative that successful programs like this continue. The Project Team will assess the program’s current strengths and weaknesses to better understand the services which businesses use the most and which can be replaced with more effective products and services. Considering small businesses make up the majority of businesses in Costa Mesa, the county, state, and nation, and with small businesses largely seeing the biggest brunt of the COVID-19 pandemic, it is imperative that support and serv ices be made available to these job creators.

With high-speed internet access becoming one of the most important utilities for businesses and consumers alike, the implementation of a city-wide fiber network might be one of the best uses of municipal budgets. While the associated cost s with deploying such a large fiber network are high, the benefits they bring, including business and resident attraction and retention, the support of higher-paying jobs, cost efficiencies, and faster internet speeds can dramatically offset that initial cost, especially in the long -term. As such, one of the stand-alone reports created will be a cost-benefit analysis of deploying a city-wide fiber network in Costa Mesa.

The last stand-alone report to be created by the Project Team will be a Project Specific Economic Benefit Model and Policy. Rather than looking specifically at the economic benefit of properties in Costa Mesa, the Project Specific Economic Benefit Model would create a similar scoring system but for specific projec ts Costa Mesa is considering. Providing additional detail to city staff, this 45 439
benefit model would be accompanied by policies which indicated how or when this project would be implemented. This editable or filterable report will evaluate the positive and negative effects of potential projects.

Phase 4 – Assessment and Development of Economic Best Practices TCCG’s Dr. Wallace Walrod and all subcontractors strictly follow best practices when creating economic assessments of different regions; they all have deep experience in conducting a broad variety of economic analyses and reports on a number of different topics and facets of local and regional economies. Following best practices not only ensures the accuracy of data and metrics but also ensures that policies or strategies can be implemented effectively. Looking specifically at the concepts and themes highlighted in the RFP, the Project Team has the experience and expertise to provide detailed recommendations and best practices on how to address these ideas.

This expertis e comes from years of data and policy analysis as well as relationships and observable results from other cities and regions who have implemented best practices. Extensive labor force analysis will determine strategies to attract and retain qualified workers in in-demand fields, while an assessment of industry demand and gross regional products will help determine any economic leakage. Analyses of location quotients and industry specializations will help highlight important industries and guide policies or incentive programs. An extensive assessment of projects, programs or policies will help to determine how Costa Mesa can maximize its economic benefits while minimizing potential weaknesses, ensuring it leverages its current competitive advantages, such as having two Opportunity Zones.

Finally, the Project Team will draw on its decades of experience to identify best practices such as the best marketing and branding techniques which best reach both local residents and businesses; reducing exposure to economic disruptions through industry diversification; reducing economic volatility experienced during economic cycle; encouraging sustainability; supporting start-ups; increasing workforce housing; and improving city efficiencies and anticipating regulations.

Identifying
Phase 5 – Resource Assessment Recommendations
In order to ensure that Costa Mesa is able to follow through with the Economic Development Strategic Plan and continues to properly serve its businesses and residents, the Project Team will produce a comprehensive assessment of current and projected staffing, networking, and budgeting needs.

In order to ensure Costa Mesa can continue to effectively promote economic development, the Project Team will indicate preferred staffing arrangements for the imp lementation of the Economic Development Strategic Plan with three different intensity levels – low, medium, and high. These staffing recommendations will indicate action items and roles of staffing members 46 440
with examples of different cities, regions or muni cipalities with a similar size , industry base, budget, and goal.

Thanks to decades of experience in the field of data analysis and economics, the Project Team has deep knowledge of data platforms available to private, public and government institutions.

Thus, this phase will not only include recommendations to industry -leading data platforms but will also include recommendations of potential relationships or partnerships to develop with important industry trade groups, academic institutions, private businesses, or individuals. With an already deep set of existing ties between a significant number of businesses and governments in the region, the Project Team is uniquely placed to help form important, long -lasting relationships between Costa Mesa outside groups.

Additional recommendations will be provided regarding the necessary budget to implement the stated tasks and reports as well as recommendations on potential grant programs Costa Mesa should pursue and how the budget for the Economic Development Strategic Plan can be phased into Costa Mesa’s General Budget.

Phase 6 – Implementation and Assessment Tools
Based on the data, trends, and analysis performed in Phase 1 of this proposal and in collaboration with City staff , a set matrix of economic and demographic metrics which can be continually updated in order to help the City in tracking, reviewing, and determining the level of success of certain projects or policies. These metrics are to be updated on an ongoing basis so that local economic vitality can be continuously evaluated and better supported if these metrics begin to decline.

Phase 7 – Comprehensive Action Plan List for Costa Mesa Using the information, data, trend, insights, and assessments in Phase 1, alongside the Economic Benefit Scoring System, potential projects and programs in Costa Mesa will be given scores and aggregated into a Comprehensive Action List , allowing Costa Mesa to prioritize projects and programs on which can provide the largest economic ben efit. Each project or program will be evaluated for specific actions needed and assigned scores allowing city staff to easily compared projects and programs to one another and pick those which stand to benefit residents and businesses the most.

Phase 8 – Prosperity Final Action Plan
In order to best market the City’s economic development strategies and to maximize understanding of these strategies and their impacts, an infographic-style poster highlighting the most effective strategies, plans and programs to be completed or realized over the next several years will be created. This infographic style poster will be completed in collaboration with a local artist from Costa Mesa, satisfying the “City of Art’s Artist Collaboration” requirement. The Project Team sees significant value in hiring and collaborating with an artist local to Costa Mesa as it will bring further uniqueness and local flavor to the final product. Additionally, hiring local workers 47 441
and artists not only helps to drive economic activity in the region but helps to amplify artists ’ voices and exposure. Costa Mesa has an extremely vibrant and innovative art community with unique styles and atmospheres exemplified in developments such as The OC SOCO Mix, the LAB, and the Camp as well as Costa Mesa’s Art Walk, which features over 20 pieces for free public art to view around the city. The Project Team looks forward to collaborating with Costa Mesa artists.

Project Timeline/Schedule
City of Costa Mesa’s First Economic Development Strategic Plan Project Phases
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Section 3 – Local Preference

The Project Team has significant, deep ties to Costa Mesa and Orange County. Dr. Wallace Walrod has both lived and worked in Irvine for over 25 years and in that time has developed crucial relationships with industry -leading businesses, academic institutions, city and county leaders, and long-time residents. Dr. Robert Kleinhenz currently resides in nearby Long Beach and also has an extensive work history and relationships in the region, including his time as a professor at Cal State Fullerton. Benjamin Palmer was born and raised in Orange County and, despite currently living out-of-state, purchased a home and lived in Costa Mesa’s Mesa Del Mar neighborhood from 2013 to 2020 , providing a significant understanding of the city, its many attractions and amenities, as well as some of its weaknesses and pitfalls. Rebecca Alvarez was born and raised in Orange County and currently resides in San Clemente.

Section 4 – Identification of Subcontractors

1) Subcontractor Name: Kleinhenz Economics
Contact Person: Dr. Robert Kleinhenz
Contact Address: P.O. Box 41214, Long Beach CA 90853
Contact Phone Number: 213.925.0221
Contact Email: [email protected]

2) Subcontractor Name: SEED Consulting
Contact Person: Benjamin Palmer
Contact Address: 69 Malden Street, West Boylston, MA, 01583 Contact Phone Number: 714-393-0487
Contact Email: [email protected]

3) Subcontractor Name: NP Strategies
Contact Person: Rebecca Alvarez
Contact Address: 124 W. Avenida Valencia, San Clemente, CA 92672 Contact Phone Number: (858) 414-7203
Contact Email: [email protected]

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Section 5 – Insurance

Tech Coast Consulting Group (TCCG) and Dr. Wallace Walrod currently have all the required insurance as outlined in Section 2 of General Instructions and Provisions of the RFP.

Section 6 – Financial Capacity

TCCG’s finances are sound with significant reserves, and there is no expectation of future financial conditions such as bankruptcy, litigation, office closure s, or mergers. There are no known conditions that will impede TCCG’s ability to complete the proposed project.

Section 7 – Disclosure

Nothing to disclose.

Section 8 – Professional Service Agreement

All consultants agree to the terms of the Professional Service Agreement outlined in Appendix B.

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APPENDIX C
FORMS

Vendor Application Form
Ex Parte Communications Certification
Disclosure of Government Positions
Disqualification Questionnaire
Company Profile & References
Bidder/Applicant/Contractor Campaign Contribution
Cost Proposal
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




VENDOR APPLICATION FORM
FOR
RFP No. 22-02 Economic Development Strategic Plan

TYPE OF APPLICANT: NEW  CURRENT VENDOR

EXCEPTIONS TO THE PROFESSIONAL SERVICES AGREEMENT:  Yes No Legal Contractual Name of Corporation: TCCG Tech Coast Consulting Group LLC

Contact Person for Agreement: Dr. Wallace Walrod

Title: Managing Partner E-Mail Address: [email protected]

Business Telephone: (949) 280-5492 Business Fax:

Corporate Mailing Address: 7545 Irvine Center Drive #200

City, State and Zip Code: Irvine, CA, 92618

Contact Person for Proposals: Dr. Wallace Walrod

Title: Managing Partner E-Mail Address: [email protected]

Business Telephone: (949) 280-5492 Business Fax:

Is your business: (check one)

 NON PROFIT CORPORATION FOR PROFIT CORPORATION

Is your business: (check one)

 CORPORATION LIMITED LIABILITY PARTNERSHIP

 INDIVIDUAL  SOLE PROPRIETORSHIP

 PARTNERSHIP  UNINCORPORATED ASSOCIATION
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Names & Titles of Corporate Board Members
(Also list Names & Titles of persons with written authorization/resolution to sign contracts)

Names Title Phone

Dr. Wallace Walrod Managing Partner (949) 280-5492

Christine Petersen Chief Administrator (949) 280-3924

Federal Tax Identification Number: 33-0932336

City of Costa Mesa Business License Number: Will be obtained upon award

(If none, you must obtain a Costa Mesa Business License upon award of contract.)

City of Costa Mesa Business License Expiration Date:
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DISQUALIFICATION QUESTIONNAIRE

The Contractor shall complete the following questionnaire:

Has the Contractor, any officer of the Contractor, or any employee of the Contractor who has proprietary interest in the Contractor, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or safety regulation?

Yes No

If the answer is yes, explain the circumstances in the following space. 55 449

DISCLOSURE OF GOVERNMENT POSITIONS

Each Proposer shall disclose below whether any owner or employee of Contractor currently hold positions as elected or appointed officials, directors, officers, or employees of a governmental entity or held such positions in the past twelve months. List below or state "None."

NONE
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COMPANY PROFILE & REFERENCES

Company Legal Name: TCCG Tech Coast Consulting Group LLC

Company Legal Status (corporation, partnership, sole proprietor etc.): LLC Active licenses issued by the California State Contractor’s License Board:

Business Address: 7545 Irvine Center Drive #200, Irvine, CA 92618 Website Address:

Telephone Number: (949) 280-5492 Facsimile Number:

Email Address: [email protected]

Length of time the firm has been in business: 25 Years

Length of time at current location: 2 Years

Is your firm a sole proprietorship doing business under a different name: Yes No

If yes, please indicate sole proprietor’s name and the name you are doing business under:

Federal Taxpayer ID Number: 33-0932336

Regular Business Hours: 8:00AM – 5:00PM, Monday through Friday

Regular holidays and hours when business is closed:

Contact person in reference to this solicitation: Dr. Wallace Walrod Telephone Number: (949) 280-5492 Facsimile Number:

Email Address: [email protected]
Contact person for accounts payable: Dr. Wallace Walrod Telephone Number: (949) 280-5492 Facsimile Number:

Email Address: [email protected]
Name of Project Manager: Dr. Wallace Walrod
Telephone Number: (949) 280-5492 Facsimile Number:

Email Address: [email protected]
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COMPANY PROFILE & REFERENCES (Continued)

Submit the company names, addresses, telephone numbers, email, contact names, and brief contract descriptions of at least three clients, preferably other municipalities for whom comparable projects have been completed or submit letters from your references which include the requested information.

Company Name: County of Orange, Orange County Workforce Development Board, OC Community Services, Community Investment Division, Orange County Business Council

Contact Name: Jesse Ben-Ron, Vice President, Workforce and Economic Development, Board Member, Orange County Development Board

Contract Amount: Various totaling over $200,000

Email: [email protected]

Address: 2 Park Plaza, Suite 100, Irvine, CA 92614

Brief Contract Description: As designated by the Board of Supervisors, the Orange County Community Services Division (OCCS) developed the 2019-2023 Orange County Comprehensive Economic Development Strategy (CEDS), which provides important information regarding Orange County’s current economic state, demographics, social landscape, and potential strategies to further drive economic growth and activity in the region. It should be noted tha t Dr. Wallace Walrod, also worked extensively on the previous CEDS reports including the 2008-2013 Orange County CEDS and 2013 -2018 Orange County CEDS further highlighting his deep history and experience not only in economic development strategies but also deep history and experience in the region as well.

Company Name: Southern California Association of Governments (SCAG)

Telephone Number: (213) 236-1800

Contact Name: Darin Chidsey, Chief Operating Officer

Contract Amount: $331,375

Email: [email protected]

Address: 900 Wilshire Blvd, Ste 1700, Los Angeles, CA 90017

Brief Contract Description: SCAG’s RDP is a collaborative data sharing and planning system designed to facilitate better planning for cities and counties of all levels across the region as a whole, streamline the process of collecting and integrating data from member agencies to SCAG, and to facilitate transparency and collaboration, locally and regionally, to drive more democratic and sustainable planning . Alongside the SCAG RDP, a number of economic assessment and analysis reports have been produced for SCAG providing them with valuable insights on local, regional, state and national trends and how they may impact the SCAG region.

Company Name: First 5 OC, OC United Waty, TCCG, OC Community Foundation, CalOptima

Telephone Number: (949) 553-4202

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Contact Name: Shelley Hoss, President and CEO, OC Community Foundation

Contract Amount: $75,000

Email: [email protected]

Address: 4041 MacArthur Blvd # 510, Newport Beach, CA 92660

Brief Contract Description: The OC Community Indicators report, first published in 2000, annually tracks and measures Orange County’s performance in a variety of areas, from population growth to demographics, household income, economy and employment, education, crime and public safety, and health and wellbeing. The 2021-2022 report gave a portrait of a diverse, thriving county with a high quality of life that makes it a globally desirable destination.

Company Name: Orange County Business Council

Telephone Number: (949) 794-7221

Contact Name: Jesse Ben-Ron, Vice President, Workforce and Economic Development

Contract Amount: $45,000

Email: [email protected]

Address: 2 Park Plaza, Suite 100, Irvine, CA 92614

Brief Contract Description: Dr. Walrod created the Orange County Business Council’s Inside Orange County’s Retail Evolution, published in 2018 which examines the spreading e- commerce revolutions effects on the region’s retail sector, land use practices, workforce composition, and sales tax base. This report analyzed the current retail industry in the county, the growing e -commerce industry, consumer how various retail technologies have impacted the workforce, how some retail uses have become obsolete, and how to replace those obsolete retail stores and centers with more innovative, mixed -use projects which help to increase workforce housing while maximizing economic benefits.

Company Name: Southern California Partnership for Jobs

Telephone Number: (562) 483-2044

Contact Name: John Hakel, Executive Director

Contract Amount: $70,000

Email: [email protected]

Address: 2400 E Katella Ave., Ste 570, Anaheim, CA 92806

Brief Contract Description: The Southern California Partnership for Jobs Southern California Construction 2020 -2024 Employment Forecast was created by Dr. Walrod and TCCG in collaboration with the Southern California Partnership for Jobs Going beyond Orange County, it examines the past present and future of Construction in the 10-county Southern California region, with an emphasis on the future.

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Company Name: MOVE 2030 Steering Committee

Telephone Number: (714) 348-9844

Contact Name: Paul Garza, Jr., Chairman of the Board

Contract Amount: $20,000

Email: [email protected]

Address: 345 N. Franklin St. Fort Bragg CA 95437

Brief Contract Description: Dr. Wallace Walrod and his team were contracted to identify and analyze industry clusters and potential drivers of economic growth and development within Mendocino County and the four -county region including Mendocino, Sonoma, Humboldt, and Trinity countie s. Presented to the MOVE2030 Steering Committee in September 2020, the findings included the identification of detailed industry sectors which could serve to better drive economic growth in the region.

Company Name: City of Huntington Beach

Telephone Number: (714) 536-5271

Contact Name: Ursula Luna-Reynosa, Director of Community Development

Contract Amount: $25,000

Email: [email protected]

Address: 2000 Main Street, Huntington Beach, CA, 92648

Brief Contract Description: Dr. Wallace Walrod and his team were brought on to develop accurate economic and workforce development data, data analytics, indicators and an editable database which provides an assessment of major industry clusters in Huntington Beach. Clusters are regional concentrations of related industries which often provide a number of regional benefits including increased employment growth, strong supply chains, increased investment, and a number of other economic opportunities. As part of this study, local industry cl usters were identified using Location Quotients to determine their overall concentration in the region compared to the nation. This analysis helped to better define and understand local and regional specializations and innovative sectors so that they may b e better supported and help to further drive economic activity and growth in Huntington Beach.

Company Name: Los Angeles/Orange County Regional Consortium of Community Colleges

Telephone Number: (714) 564-5211

Contact Name: Dr. Jesse Crete, Director

Contract Amount: $25,000
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Email: [email protected]

Address: 2323 N. Broadway, Room 328, Santa Ana, CA 92706

Brief Contract Description: The OC Strong: Economic and Occupation Projections for Orange County, 2021 -2025 was created by Dr. Rober t Kleinhenz and Kleinhenz Economics to comprehensively analyze the recent state of the Orange County economy, to develop forecasts of the county's industries, and to identify opportunities for its current and future workforce. The study also provides essential background on the current state of the U.S., California, and Orange County economies, including the impact of the COVID-19 pandemic. OC Strong complements the LAOCRC’s four-year Strong Workforce Program Regional Plan for the Orange County community colleges. It also equips the LAOCRC to coordinate more effectively with other regional workforce planning initiatives, particularly those developed by the three Workforce Development Boards in Orange County. Most importantly, it informs community college eff orts to successfully plan and implement career education programs to provide the county economy with a capable workforce that is trained for the 21st Century.
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Cost Proposal
Task Description Cost Per Deliverable

1. Economic Context: An Analysis of Costa Mesa
$70,000
a. Overall Analysis
$20,000
b. Projections on E-commerce impacts specifically for Costa Mesa

$5,000
c. Contextual Analysis
$5,000
d. Market & Industry Cluster Analysis
$15,000
e. Economic Site Value Index to identify Key Nodes $10,000 f. SWOT Analysis and Competitive Assessment $10,000
g. Economic Benefit Scoring System
$5,000

2. A Vibrant Strategic Vision: Strategic vision document $20,000

3. Exploration of Key Economic Studies: Development of key actions/programs

$30,000
a. Incentivizing development through intensity bonus
programs

$5,000
b. Shop Local Incentive Program $5,000
c. Next Steps for the Costa Mesa BAC
$5,000
d. City-wide Fiber
$5,000
e. Project Specific Economic Benefit Model and Policy
$10,000

4. Recommended Economic Best Practices: Development of best practices

$10,000

5. Resource Assessment: Recommendations for resources
$10,000
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6. Implementation and Assessment Tools: Identify tools/indicators $10,000

7. Comprehensive Action Plan List: Costa Mesa-specific action list $10,000

8. Prosperity Action Plan: Draft and final action plan
$15,000

9. Outreach, Public Hearings, and Meetings
$20,000

10. Artist Collaboration
$5,000

11. Travel Cost

$0

TOTAL

$200,000

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EXHIBIT C

CITY COUNCIL POLICY 100-5

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CITY OF COSTA MESA, CALIFORNIA

COUNCIL POLICY

BACKGROUND

Under the Federal Drug-Free Workplace Act of 1988, passed as part of omnibus drug legislation enacted November 18, 1988, contractors and grantees of Federal funds must certify that they will provide drug-free workplaces. At the present time, the City of Costa Mesa, as a sub -grantee of Federal funds under a variety of programs, is required to abide by this Act. The City Council has expressed its support of the national effort to eradicate drug abuse through the creation of a Substance Abuse Committee, institution of a City-wide D.A.R.E. program in all local schools and other activities in support of a drug-free community. This policy is intended to extend that effort to contractors and grantees of the City of Costa Mesa in the elimination of dangerous drugs in the workplace.

PURPOSE

It is the purpose of this Policy to:

1. Clearly state the City of Costa Mesa’s commitment to a drug-free society.

2. Set forth guidelines to ensure that public, private, and nonprofit organizations receiving funds from the City of Costa Mesa share the commitment to a drug-free workplace.

POLICY

The City Manager, under direction by the City Council, shall take the necessary steps to see that the following provisions are included in all contracts and agreements entered into by the City of Costa Mesa involving the disbursement of funds.

1. Contractor or Sub-grantee hereby 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 Contractor’s and/or sub-grantee’s workplace, specifically the job site or location included in this contract, and specifying the actions that will be taken against the employees for violation of such prohibition;

B. Establishing a Drug-Free Awareness Program to inform employees about:

SUBJECT

DRUG-FREE WORKPLACE
POLICY
NUMBER
100-5

EFFECTIVE
DATE
8-8-89
PAGE

1 of 3

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SUBJECT

DRUG-FREE WORKPLACE
POLICY
NUMBER
100-5

EFFECTIVE
DATE
8-8-89
PAGE

2 of 3

1. The dangers of drug abuse in the workplace;

2. Contractor’s and/or sub-grantee’s policy of maintaining a drug-free workplace;

3. Any available drug counseling, rehabilitation and employee assistance programs; 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 to be engaged in the performance of the contract be given a copy of the statement required by subparagraph A;

D. Notifying the employee in the statement required by subparagraph 1 A that, as a condition of employment under the contract, the employee will:

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 (5) days after such conviction;

E. Notifying the City of Costa Mesa within ten (10) days after receiving notice under subparagraph 1 D 2 from an employee or otherwise receiving the actual notice of such conviction;

F. Taking one of the following actions within thirty (30) days of receiving notice under subparagraph 1 D 2 with respect to an 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 p urposes by a Federal, State, or local health agency, law enforcement, or other appropriate agency;

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SUBJECT

DRUG-FREE WORKPLACE
POLICY
NUMBER
100-5

EFFECTIVE
DATE
8-8-89
PAGE

3 of 3

G. Making a good faith effort to maintain a drug -free workplace through implementation of subparagraphs 1 A through 1 F, inclusive.

2. Contractor and/or sub-grantee shall be deemed to be in violation of this Policy if the City of Costa Mesa determines that:

a. Contractor and/or sub -grantee has made a false certification under paragraph 1 above;

b. Contractor and/or sub-grantee has violated the certification by failing to carry out the requirements of subparagraphs 1 A through 1 G above;

c. Such number of employees of Contractor and/or sub-grantee have been convicted of violations of criminal drug statutes for violations occurring in the workplace as to indicate that the contractor and/or sub -grantee has failed to make a good faith effort to provide a drug-free workplace.

3. Should any contractor and/or sub -grantee be deemed to be in violation of this Policy pursuant to the provisions of 2 A, B, and C, a suspension, termination or debarment proceeding subject to applicable Federal, State, and local laws shall be conducted. Upon issuance of any final decision under this section requiring debarment of a contractor and/or sub-grantee, the contractor and/or sub -grantee shall be ineligible for award of any contract, agreement or grant from the City of Costa Mesa for a period specified in the decision, not to exceed five (5) years. Upon issuance of any final decision recommending against debarment of the contractor and/or sub-grantee, the contractor and/or sub-grantee shall be eligible for compensation as provided by law.

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