Agenda packet — Costa Mesa City Council, April 16, 2024 (part 1 of 3)

CITY OF COSTA MESA
REGULAR CITY COUNCIL AND HOUSING AUTHORITY*
Agenda
City Council Chambers
77 Fair Drive
6:00 PMTuesday, April 16, 2024
*Note: All agency memberships are reflected in the title "Council Member" The City Council meetings are presented in a hybrid format, both in-person at City Hall and as a courtesy virtually via Zoom Webinar. If the Zoom feature is having technical difficulties or experiencing any other critical issues, and unless required by the Brown Act, the meeting will continue in person.

TRANSLATION SERVICES AVAILABLE / SERVICIOS DE TRADUCCIÓN DISPONIBLE Please contact the City Clerk at (714) 754-5225 to request language interpreting services for City meetings. Notification at least 48 hours prior to the meeting will enable the City to make arrangements.

Favor de comunicarse con la Secretaria Municipal al (714) 754-5225 para solicitar servicios de interpretación de idioma para las juntas de la Ciudad. Se pide notificación por lo mínimo 48 horas de anticipación, esto permite que la Ciudad haga los arreglos necesarios.

Members of the public can view the City Council meetings live on COSTA MESA TV (SPECTRUM CHANNEL 3 AND AT&T U-VERSE CHANNEL 99) or
http://costamesa.granicus.com/player/camera/2?publish_id=10&redirect=true and online at youtube.com/costamesatv.

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1 REGULAR CITY COUNCIL AND HOUSING
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Agenda April 16, 2024
As a courtesy, the public may participate via the Zoom option.

Zoom Webinar:

Please click the link below to join the webinar:
https://us06web.zoom.us/j/81879579049?
pwd=_XoNBT2uciL7zrDsfj4A9Q9srLgExg.bQEU-le6VvXjPDeL
Or sign into Zoom.com and “Join a Meeting”
Enter Webinar ID: 818 7957 9049/ Password: 608584
• If Zoom is not already installed on your computer, click “Download & Run Zoom” on the launch page and press “Run” when prompted by your browser. If Zoom has previously been installed on your computer, please allow a few moments for the application to launch automatically.
• Select “Join Audio via Computer.”
• The virtual conference room will open. If you receive a message reading, “Please wait for the host to start this meeting,” simply remain in the room until the meeting begins.
• During the Public Comment Period, use the “raise hand” feature located in the participants’ window and wait for city staff to announce your name and unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.

Participate via telephone:

Call: 1 669 900 6833 Enter Webinar ID: 818 7957 9049/ Password: 608584 During the Public Comment Period, press *9 to add yourself to the queue and wait for city staff to announce your name/phone number and press *6 to unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.

Note, if you have installed a zoom update, please restart your computer before participating in the meeting.

Additionally, members of the public who wish to make a written comment on a specific agenda item, may submit a written comment via email to the City Clerk at [email protected].

Comments received by 12:00 p.m. on the date of the meeting will be provided to the City Council, made available to the public, and will be part of the meeting record.

Please know that it is important for the City to allow public participation at this meeting. If you are unable to participate in the meeting via the processes set forth above, please contact the City Clerk at (714) 754-5225 or [email protected] and staff will attempt to accommodate you. While the City does not expect there to be any changes to the above process for participating in this meeting, if there is a change, the City will post the information as soon as possible to the City’s website.

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2 REGULAR CITY COUNCIL AND HOUSING
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Agenda April 16, 2024
Note that records submitted by the public will not be redacted in any way and will be posted online as submitted, including any personal contact information. All pictures, PowerPoints, and videos submitted for display at a public meeting must be previously reviewed by staff to verify appropriateness for general audiences. No links to YouTube videos or other streaming services will be accepted, a direct video file will need to be emailed to staff prior to each meeting in order to minimize complications and to play the video without delay. The video must be one of the following formats, .mp4, .mov or .wmv. Only one file may be included per speaker for public comments, for both videos and pictures. Please e-mail to the City Clerk at [email protected] NO LATER THAN 12:00 Noon on the date of the meeting. If you do not receive confirmation from the city prior to the meeting, please call the City Clerks office at 714-754-5225.

Note regarding agenda-related documents provided to a majority of the City Council after distribution of the City Council agenda packet (GC §54957.5): Any related documents provided to a majority of the City Council after distribution of the City Council Agenda Packets will be made available for public inspection. Such documents will be posted on the city’s website and will be available at the City Clerk's office, 77 Fair Drive, Costa Mesa, CA 92626.

All cell phones and other electronic devices are to be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to conduct a phone conversation.

Free Wi-Fi is available in the Council Chambers during the meetings. The network username available is: CM_Council. The password is: cmcouncil1953.

As a LEED Gold Certified City, Costa Mesa is fully committed to environmental sustainability.

A minimum number of hard copies of the agenda will be available in the Council Chambers.

For your convenience, a binder of the entire agenda packet will be at the table in the foyer of the Council Chambers for viewing. Agendas and reports can be viewed on the City website at https://costamesa.legistar.com/Calendar.aspx.

In compliance with the Americans with Disabilities Act, Assistive Listening headphones are available and can be checked out from the City Clerk. If you need special assistance to participate in this meeting, please contact the City Clerk at (714) 754-5225. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II].

En conformidad con la Ley de Estadounidenses con Discapacidades (ADA), aparatos de asistencia están disponibles y podrán ser prestados notificando a la Secretaria Municipal. Si necesita asistencia especial para participar en esta junta, comuníquese con la oficina de la Secretaria Municipal al (714) 754-5225. Se pide dar notificación a la Ciudad por lo mínimo 48 horas de anticipación para garantizar accesibilidad razonable a la junta. [28 CFR

35.102.35.104 ADA Title II].

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3 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 16, 2024

REGULAR MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY APRIL 16, 2024 – 6:00 P.M.

JOHN STEPHENS
Mayor

JEFFREY HARLAN ANDREA MARR Mayor Pro Tem - District 6 Council Member - District 3

MANUEL CHAVEZ LOREN GAMEROS
Council Member - District 4 Council Member - District 2

ARLIS REYNOLDS DON HARPER
Council Member - District 5 Council Member - District 1

KIMBERLY HALL BARLOW LORI ANN FARRELL HARRISON
City Attorney City Manager

CALL TO ORDER

NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE

MOMENT OF SOLEMN EXPRESSION
[Per Council Policy 000-12, these presentations are made by community volunteers stating their own views. The City Council disclaims any intent to endorse or sponsor the views of any speaker.]

ROLL CALL
PRESENTATIONS:

1. Presentation: Street Vending Enforcement Update

2. Presentation: Working Wardrobes
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Comments on Consent Calendar items may also be heard at this time.

Comments are limited to 3 minutes, or as otherwise directed.

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Agenda April 16, 2024

COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Each council member is limited to 3 minutes. Additional comments will be heard at the end of the meeting.

1. Council Member Gameros

2. Council Member Harper

3. Council Member Marr

4. Council Member Reynolds

5. Council Member Chavez

6. Mayor Pro Tem Harlan

7. Mayor Stephens
REPORT – CITY MANAGER
REPORT – CITY ATTORNEY

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine and will be acted upon in one motion. There will be no separate discussion of these items unless members of the City Council, staff, or the public request specific items to be discussed and/or removed from the Consent Calendar for discussion.

1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL

ORDINANCES AND RESOLUTIONS
24-129
RECOMMENDATION:

City Council and Housing Authority approve the reading by title only and waive full reading of Ordinances and Resolutions.

2. READING FOLDER 24-130
RECOMMENDATION:

City Council receive and file Claims received by the City Clerk and authorize staff to reject any and all Claims: Jennifer Maniaci, Johnathan Pate, Loya Casualty Insurance Company (Smith, Brittany).

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Agenda April 16, 2024

3. ADOPTION OF WARRANT RESOLUTION 24-115
RECOMMENDATION:

City Council approve Warrant Resolution No. 2715.

1. Summary Check Registry 4-1-24Attachments:

4. MINUTES 24-131
RECOMMENDATION:

City Council approved the minutes of the regular meeting of April 2, 2024.

1. 04-02-2024 Draft MinutesAttachments:

5. ANIMAL CARE SHELTER SERVICES - PRICELESS PETS RESCUE 24-116 RECOMMENDATION:

Staff recommends the City Council:

1. Approve and authorize the City Manager to execute the Professional Services Agreement with Priceless Pets Rescue (PPR) to provide full-service animal sheltering and animal adoption services. PPR will be responsible for the intake, coordination, and management of animals within the City of Costa Mesa for a five-year term, July 1, 2024 - June 30, 2029, for a not to exceed amount of $480,000 annually.

2. Approve an annual Consumer Price Index (CPI) escalation and de- escalation not exceeding 5%.

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

4. Authorize the City Manager or designee to extend the PPR interim service agreement (Amendment #6) until June 30, 2024, for a not to exceed amount of $33,000 monthly.

1. PSA with Priceless Pets

2. Exhibit A - RFP

3. Exhibit B - Scope of Services

4. Exhibit C - Consultants Proposal
Attachments:

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6 REGULAR CITY COUNCIL AND HOUSING
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Agenda April 16, 2024

6. SECOND READING OF ORDINANCES TO AMEND TITLE 13
(PLANNING, ZONING AND DEVELOPMENT) AND TITLE 9
(LICENSES AND BUSINESS REGULATIONS) OF THE COSTA MESA
MUNICIPAL CODE TO MODIFY THE CITY ’S RETAIL CANNABIS

PROVISIONS AND FIND THIS PROJECT TO BE CATEGORICALLY

EXEMPT FROM CEQA
24-128
RECOMMENDATION:

Staff recommends the City Council:

1. Find that the project is categorically exempt from the California Environmental Quality Act (CEQA), Section 15061(b)(3) (“General Rule”).

2. Give second reading to and adopt Ordinance No. 2024-03 amending Title 13 (Planning, Zoning and Development) and Ordinance No. 2024-04 amending Title 9 (Licenses and Business Regulations) of the Costa Mesa Municipal Code to modify the City’s retail cannabis provisions.

Agenda Report

1. Draft Ordinance Title 13

2. Draft Ordinance Title 9

3. Exhibit A Title 13

4. Exhibit A Title 9

5. Track changes Title 13

6. Track changes Title 9
Attachments:

AT THIS TIME COUNCIL WILL ADDRESS ANY ITEMS PULLED FROM THE CONSENT

CALENDAR
------------------------------END OF CONSENT CALENDAR-------------------------------

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7 REGULAR CITY COUNCIL AND HOUSING
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Agenda April 16, 2024
PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)

1. REVIEW OF THE PLANNING COMMISSION'S DECISION TO

APPROVE MINOR CONDITIONAL USE PERMIT APPLICATION
ZA-22-11 FOR A DRIVE-THROUGH OPERATION AND A REDUCTION
OF REQUIRED PARKING; DEVELOPMENT REVIEW (PDVR- 23-0003)

TO ALLOW THE DEMOLITION OF AN EXISTING
25,159-SQUARE-FOOT COMMERCIAL BUILDING AND TO
CONSTRUCT A NEW 2,913-SQUARE-FOOT RAISING CANES
RESTAURANT WITH 1,303 SQUARE FEET OF COVERED OUTDOOR
PATIO AREA; MINOR MODIFICATION PMND- 23-0003 TO ALLOW
FOR A DECREASE OF 20% IN REQUIRED FRONT
YARD/LANDSCAPE SETBACK; FOR A PROPERTY LOCATED AT
1595 OLD NEWPORT BOULEVARD
24-101
RECOMMENDATION:

Staff recommends that the City Council review the Planning Commission’s decision to approve ZA-22-11, PDVR-23-0003, and PMND-23-0003.

Agenda Report

1. Resolution

2. Filed Review Application

3. Planning Commission minutes

4. Planning Commission Resolution

5. Planning Commission public comments

6. Planning Commission Report 021224

7. Site Plan
Attachments:

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8 REGULAR CITY COUNCIL AND HOUSING
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Agenda April 16, 2024

2. APPEAL OF PLANNING APPLICATION 22-37 TO ESTABLISH AN

EVENT CENTER WITH OUTDOOR ACTIVITIES, INCLUDING A

REQUEST TO OFFER VALET PARKING AND TO DEVIATE FROM
PARKING REQUIREMENTS LOCATED AT 3150 BEAR STREET
24-117
RECOMMENDATION:

Staff recommends the City Council:

1. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15301 (Class 1), Existing Facilities.

2. Adopt a Resolution approving Planning Application 22-37, based on findings of fact and subject to conditions of approval.

Agenda Report

1. Resolution

2. Filed Appeal

3. Additional Materials

4. Planning Commission Resolution

5. Planning Commission Public Comments

6. Planning Commission minutes

7. Planning Commission Agenda Report
Attachments:

OLD BUSINESS: NONE.

NEW BUSINESS: (NEXT PAGE)

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9 REGULAR CITY COUNCIL AND HOUSING
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Agenda April 16, 2024

1. FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE AND

ADJUSTMENTS
24-051
RECOMMENDATION:

The Finance Department is undergoing the mid-year budget review for Fiscal Year 2023-24 that began on July 1, 2023. Certain staffing changes are recommended to assist in achieving City Council goals and priorities as soon as possible. In addition, Funds in the Capital Improvement Program (CIP) that need to be carried over into Fiscal Year 2023-24 require City Council approval.

1. Amend the Table of Organization to add 3.27 new FTEs in the Economic and Development Services Department ( 2.0 FTEs); Parks and Community Services (0.75 FTE); and the Police Department ( 0.52 FTEs) to help achieve City Council goals and priorities related to housing, park and environmental resources management, and public safety.

2. Approve FY 2023-24 Staffing title changes and compensation adjustments to realign positions with current operational needs in multiple departments. a. Approve Resolution No. 2024-XX, approving new classification and salary /pay ranges for an Animal Services Coordinator, new title for Multimedia Specialist and new title and pay ranges for Finance Officer.
b. Approve Resolution No. 2024-XX approving compensation adjustments for Finance Officer (Confidential).
c. Approve Resolution No. 2024-XX creating new classification and salary/pay ranges for Graduate Intern and compensation
adjustments for Intern classification, absorbed within the existing adopted budget, in order to create a more viable pipeline of applicants to recruit City employees.

3. Approve FY 2023-24 Budget Carryovers from the prior year in the General Fund and the various Capital Projects Funds for outstanding capital projects.

1. Mid year CIP

2. Confidential Resolution

3. Part Time Resolution

4. CMCEA Resolution

5. 4.2.24 Org chart
Attachments:

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10 REGULAR CITY COUNCIL AND HOUSING
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Agenda April 16, 2024

2. APPOINTMENT TO THE PLANNING COMMISSION AND VARIOUS

CITY COMMITTEES
24-111
RECOMMENDATION:

Staff recommends the City Council make appointments as follows:

1. Planning Commisssion - Make one ( 1) member appointment to fill vacancy with term expiration of January 2027. Appointment by Council Member Reynolds.

2. Animal Services Committee - Make four ( 4) member appointments with a term expiration of April 2026. One nomination by Mayor Stephens, Council Member Harper, Council Member Gameros, and Mayor Pro Tem Harlan. A Council Member may defer their nomination to the Council Liaison (Mayor Stephens, Council Member Harper).

3. Active Transportation Committee - Make six ( 6) member appointments with a term expiration of April 2026. One nomination by Mayor Stephens, Council Member Harper, Council Member Gameros, and Mayor Pro Tem Harlan, and two at-large appointments. The two at-large members should ensure broad representation of different mobility options and experiences (e.g., walk, bike, bus, and age ability). A Council Member may defer their nomination to the Council Liaison (Council Member Reynolds).

4. Finance and Pension Advisory Committee - Make four ( 4) member appointments with a term expiration of April 2028. One nomination by Mayor Stephens, Council Member Harper, Council Member Gameros, and Mayor Pro Tem Harlan. A Council Member may defer their nomination to the Council Liaison (Mayor Stephens, Alternate Council Member Marr, and Council Member Harper).

5. Housing and Public Service Grants Committee - Make four ( 4) regular member appointments with a term expiration of April 2026. One nomination by Mayor Stephens, Council Member Harper, Council Member Gameros, and Mayor Pro Tem Harlan. A Council Member may defer their nomination to the Council Liaison (Council Member Chavez, Alternate Council Member Harper).

6. Mobile Home Park Advisory Committee - Make one ( 1) Park Owner or Representative appointment, two ( 2) Mobile Home Park Resident appointments, and one ( 1) Independent Citizen At-large appointment, all with a term expiration of April 2028. One nomination by Mayor Stephens, Council Member Harper, Council Member Gameros, and Mayor Pro Tem Harlan. A Council Member may defer their nomination to the Council Liaison (Council Member Reynolds, Alternate Council Member Chavez).

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11 REGULAR CITY COUNCIL AND HOUSING
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Agenda April 16, 2024

7. Approve the recommendation from the Historical Preservation Committee to formally dissolve, and appropriate an estimated total of $13,000 from uncommitted Costa Mesa Community Foundation Fund and authorize a transfer from the Costa Mesa Historical Preservation Committee to the Costa Mesa Historical Society.

1. Planning Commission Applications

2. Animal Services Committee Applications

3. Active Transportation Committee Applications

4. Finance and Pension Advisory Committee Applications

5. Housing and Public Service Grants Committee Applications

6. Mobile Home Park Advisory Committee Applications
Attachments:

ADDITIONAL COUNCIL /BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND

SUGGESTIONS

ADJOURNMENT

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12 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-129 Meeting Date: 4/16/2024
TITLE:

PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND

RESOLUTIONS
RECOMMENDATION:

City Council and Housing Authority approve the reading by title only and waive full reading of Ordinances and Resolutions.

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13 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-130 Meeting Date: 4/16/2024
TITLE:

READING FOLDER
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:

City Council receive and file Claims received by the City Clerk and authorize staff to reject any and all Claims: Jennifer Maniaci, Johnathan Pate, Loya Casualty Insurance Company (Smith, Brittany).

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14 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-115 Meeting Date: 4/16/2024
TITLE:

ADOPTION OF WARRANT RESOLUTION
DEPARTMENT: Finance Department
PRESENTED BY: Carol Molina, Finance Director
CONTACT INFORMATION: Carol Molina at (714) 754-5243
RECOMMENDATION:

City Council approve Warrant Resolution No. 2715.

BACKGROUND:

In accordance with Section 37202 of the California Government Code, the Director of Finance or their designated representative hereby certify to the accuracy of the following demands and to the availability of funds for payment thereof.

FISCAL REVIEW:

Funding Payroll Register No. 24-06 “A” Off Cycle for $1,091.54 and No. 24-07 On Cycle for $3,448,572.99 and City operating expenses for $1,243,603.58.

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-131 Meeting Date: 4/16/2024
TITLE:

MINUTES
DEPARTMENT: CITY MANAGER’S OFFICE/CITY CLERK’S DIVISION RECOMMENDATION:

City Council approved the minutes of the regular meeting of April 2, 2024.

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83 Minutes – Regular Meeting April 2, 2024 Page 1 of 12

REGULAR CITY COUNCIL AND HOUSING AUTHORITY
APRIL 2, 2024 - MINUTES
CALL TO ORDER – The Closed Session meeting was called to order by Mayor Stephens at 5:00 p.m.

ROLL CALL

Present: Council Member Chavez, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: Council Member Gameros and Council Member Harper.

PUBLIC COMMENTS – NONE.

CLOSED SESSION ITEMS:

1. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION - ONE CASE Pursuant to California Government Code Section 54956.9 (d)(4), Potential Litigation.

2. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to California Government Code Section 54956.8
APN: 420-012-16
Agency Negotiators: Lori Ann Farrell Harrison, City Manager Negotiating Parties: State of California
Under Negotiation: Price and Terms of Payment
City Council recessed at 5:02 p.m. for Closed Session.

Closed Session adjourned at 6:00 p.m.

CALL TO ORDER – The Regular City Council and Housing Authority meeting was called to order by Mayor Stephens at 6:03 p.m.

NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE – Led by Ms. McVeigh’s second grade class from Sonora Elementary School.

MOMENT OF SOLEMN EXPRESSION – Led by Pastor Christine Nolf, Redemption Church. 84 Minutes – Regular Meeting April 2, 2024 Page 2 of 12

ROLL CALL

Present: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

CITY ATTORNEY CLOSED SESSION REPORT – No reportable action.

PRESENTATIONS:

An update on the Active Transportation Committee was provided by Ralph Taboada, Chair and Bridget Gleason, Vice Chair.

PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Speaker, spoke on Irvine Connect a new free shuttle service in Irvine.

Shirley McDaniels spoke against the proposed housing project at the Senior Center due to concerns on the infrastructure and parking.

Janna Moore and Ella Mootz, advocated for the fight against epilepsy, and spoke on the Epilepsy walk at Tewinkle Park.

Speaker, spoke on the problems associated with illegal street vendors.

Daniel Morgan, Costa Mesa, spoke on challenges associated with the planning and building permitting process, and the costs.

Patty Bonilla, Costa Mesa, spoke on the problems associated with illegal street vendors.

Frank Spitzer, spoke on problems associated with the group home on Joann Street and spoke on excessive police calls to the property.

Speaker, spoke on excessive police calls to the group home on Joann Street.

Speaker, spoke on excessive police calls to the group home on Joann Street, problems associated with the group home, and spoke on safety issues.

Alan Mayeda, spoke in opposition to the development at the senior center due to parking concerns and costs.

Becca Walls, spoke on the Priceless Pets contract and requested that the trap and release provision be included in the contract.

Speaker, spoke on a dog park and a variety of issues.
85 Minutes – Regular Meeting April 2, 2024 Page 3 of 12

COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Council Member Chavez spoke on addressing the issues associated with the group home on Joann Street, spoke on the upcoming Strategic Planning Session and requested the following items for council consideration: tree canopies, efficiency in government, customer service, and rezoning.

Council Member Gameros spoke on illegal street vendors, spoke on the Women in STEM event at the Norma Hertzog Community Center, spoke on home ownership, and employment for young adults.

Council Member Harper spoke on emailing the Council Members with concerns or questions.

Council Member Marr spoke on issues associated with the Joann Street property, spoke on the senior center housing project and parking, and spoke on expediting the permitting process.

Council Member Reynolds spoke on publicizing the tree planting program, spoke on the Women in STEM event at the Norma Hertzog Community Center, requested an update on the bike safety education program, spoke in support of public information and education on traffic calming measures, and spoke on community events for Bike Month and Pride Month.

Mayor Stephens spoke on the Strategic Planning Retreat on April 19 th at the Norma Hertzog Community Center, spoke on the State of the City on April 24 th, spoke on the Radiant Health Center event on April 13 th, spoke on Supervisor Foley’s event at Orange County Museum of Art and that Tina Hanley received the award for Women in Law and Justice, spoke on throwing the first pitch at the Battle of the Bell game, spoke on visiting the Art of Jujitsu business, requested an update on the illegal street vendors, spoke on addressing the 250 Joann Street issues, and spoke on updating the Trap and Release policy.

REPORT – CITY MANAGER – Ms. Farrell Harrison spoke on addressing the illegal street vendors issues, and introduced Brian Gruner, Parks and Community Services Director; Delcie Hynes, Emergency Services Manager; and Mark Khao, Budget and Purchasing Manager.

Assistant City Manager Ms. Gallardo-Daly spoke on addressing issues at the 250 Joann Street group home.

Police Chief Lawrence spoke on the calls for service at the 250 Joann Street group home.

REPORT – CITY ATTORNEY – NONE.
86 Minutes – Regular Meeting April 2, 2024 Page 4 of 12

CONSENT CALENDAR
MOVED/SECOND: Council Member Chavez/Mayor Pro Tem Harlan MOTION: Approve the Consent Calendar.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND

RESOLUTIONS
ACTION:

City Council and Housing Authority approved the reading by title only and waived full reading of Ordinances and Resolutions.

2. READING FOLDER
ACTION:

City Council received and filed Claims received by the City Clerk and authorized staff to reject any and all Claims: Morgan & Morgan (Heidi Kearns), Eli Navarette, Gary Reynolds.

3. ADOPTION OF WARRANT RESOLUTION
ACTION:

City Council approved Warrant Resolution No. 2714.

4. MINUTES
ACTION:

City Council approved the minutes of the regular meeting of March 19, 2024.

5. DESIGNATION OF VOTING DELEGATE FOR THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) 2024 REGIONAL CONFERENCE AND

GENERAL ASSEMBLY
ACTION:

City Council designated Council Member Arlis Reynolds as the delegate for the upcoming 2024 Annual Southern California Association of Governments (SCAG) Regional Conference and General Assembly.
87 Minutes – Regular Meeting April 2, 2024 Page 5 of 12

6. AMENDMENT TO THE CITYWIDE TRAFFIC SIGNAL MAINTENANCE CONTRACT ACTION:

1. City Council approved the First Amendment to the Maintenance Services Agreement (MSA) with Yunex LLC to provide maintenance of the City’s traffic signals, increasing the annual compensation for current and future years of the MSA by $100,000, for an annual amount not to exceed $500,000.

2. Authorized the City Manager and the City Clerk to execute the agreement and future amendments to the agreement.

7. REJECT ALL BIDS - WILSON, WAKEHAM, AND TEWINKLE PARKS BRIDGES REPLACEMENT PROJECT, CITY PROJECT NO. 23-12
ACTION:

City Council rejected all bids for the Wilson, Wakeham, and TeWinkle Parks Bridges Replacement Project, City Project No. 23-12.

AT THIS TIME COUNCIL WILL ADDRESS ANY ITEMS PULLED FROM THE CONSENT

CALENDAR
------------------------------END OF CONSENT CALENDAR------------------------------- City Council recessed into a break at 7:26 p.m.

City Council reconvened at 7:41 p.m.

PUBLIC HEARINGS:

1. SECOND READING OF ORDINANCE NO. 2024-02 AMENDING TITLE 13 (PLANNING, ZONING AND DEVELOPMENT) OF THE COSTA MESA MUNICIPAL

CODE TO ESTABLISH AFFORDABLE HOUSING REQUIREMENTS FOR NEW

RESIDENTIAL DEVELOPMENT PROJECTS AND FEE RESOLUTION TO

ESTABLISH THE AFFORDABLE HOUSING IN-LIEU FEE SCHEDULE
Presentation by Ms. Huynh, Principal Planner.

Public Comments:

Christine Nolf, Costa Mesa, spoke in support of an Inclusionary Housing Ordinance, spoke on housing costs, increasing the maximum amount of affordable housing in the city, spoke in support of 15% low or 10% very low on projects over 40 units, and spoke in support of establishing strong in-lieu fees.

Jacob Sanchez, Costa Mesa, spoke in support of 15% low income on projects.

Speaker, Costa Mesa, spoke on the high rental costs and in support of 15% low income on projects.
88 Minutes – Regular Meeting April 2, 2024 Page 6 of 12 Cynthia McDonald, Costa Mesa, spoke on market rate units, overall ratio, and in support of 15% low income on projects.

Reina Cuthill, Costa Mesa, spoke in support of 15% low income on projects, supports a strong affordable housing ordinance that will impact generations to come.

Speaker, spoke on the need for extremely low-income housing, and in support of 15% low income on projects.

Speaker, spoke in support of affordable housing.

Jenn Tanaka, Costa Mesa, spoke on the timeline for rezoning requirements, the Housing and Community Development suggestions and the change in wording from “can” to “shall”, and that a 20% builders remedy is too high.

Speaker, spoke on incentives, taxes, and assisting first time homebuyers.

Adam Wood, Building Industry Association, spoke on the Planning Commission recommendations, spoke on moving forward with a program that will actually provide more housing, spoke on the City of Santa Ana as a good comparison, and that affordable housing is linked to supply.

Cesar Covarrubias, Executive Director of Kennedy Commission, spoke on the number of units in production in Santa Ana, supports a 15% low income, and spoke on the City of Santa Ana’s fees.

Speaker, spoke in support of a strong affordable housing requirement.

Tim O’Brien, Legacy Partners, spoke on the percentages needing to be competitive, spoke on industrial building and zoning, and spoke in support of the Planning Commission’s recommendation.

George Sakioka, Sakioka Company, spoke on developers meeting the requirements and market forces, spoke on the Planning Commission’s recommendation, spoke on timing of the ordinance and zoning enhancements, and on guarantees for long term development.

Christian Garcia, Costa Mesa, spoke on the need for affordable housing, spoke on increasing the percentages, spoke on creating better environments for families, and in support of 15% low income on projects.

Priscilla Rocco, spoke in support of an inclusionary housing ordinance, and in support of 15% low income and 10% for very low income.
89 Minutes – Regular Meeting April 2, 2024 Page 7 of 12 MOVED/SECOND: Council Member Marr/Council Member Reynolds MOTION: Approve staff recommendation with the following changes:
 At 60 or more dwelling units per acre,15% low income and 10% very low income.  Strike Section 2 related to ownership residential projects and remove references to ownership from the ordinance.
 Adopt in-lieu fees as proposed.

SUBSTITUTE MOTION/SECOND: Mayor Pro Tem Harlan/Council Member Chavez SUBSTITUTE MOTION: Approve staff recommendations with the following changes:
 Allocate $2.5 million in the 2024/2025 budget for an Affordable Housing Trust Fund.
Increase threshold to 50 dwelling units.
 At 60 units per dwelling acre, 10% low income and 5% very low income.  Strike section two (2) related to ownership residential projects and remove references to ownership from the ordinance.
 The ordinance will be effective upon the adoption of rezoning by the City Council.

SECOND SUBSTITUTE MOTION/SECOND: Council Member Reynolds/Council Member Marr
SUBSTITUTE MOTION: Staff recommendation with the following changes:
 At 60% units per dwelling acre, 10% low income, and 5% very low income.  Allocate $2.5 million in the 2024/2025 budget into an Affordable Housing Trust Fund, including a first-time home ownership program.
 Direct staff to bring back strategies & needs to accelerate rezoning.  Streamline projects subject to the affordable housing ordinance.  Adopt the in-lieu fee resolution as presented.

Discussion ensued on the threshold and on in-lieu fees.

Council Member Reynolds clarified her motion to include the threshold to be 50 dwelling units, strike section two (2) related to ownership residential projects and remove references to ownership from the ordinance, defer in-lieu fees, and the ordinance to become effective 31 days after adoption.

SECOND SUBSTITUTE MOTION/SECOND: Council Member Reynolds/Council Member Marr
SUBSTITUTE MOTION: Staff recommendation with the following changes:
 At 60 units per dwelling acre, 10% low income, and 5% very low income.  Allocate $2.5 million into an Affordable Housing Trust Fund, including a first-time home ownership program.
 Direct staff to bring back strategies & needs to accelerate rezoning.  Streamline projects subject to the affordable housing ordinance.  Increase the threshold to 50 dwelling units.
 The Ordinance shall be effective 31 days after adoption (pursuant to State Law).  Strike section two (2) related to home ownership projects in the ordinance.  Defer in-lieu fees to a future meeting.
90 Minutes – Regular Meeting April 2, 2024 Page 8 of 12 The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0
ACTION:

1. City Council found that the project is categorically exempt from the California Environmental Quality Act (CEQA), Section 15061(b)(3) (“General Rule”).

2. Gave first reading to Ordinance No. 2024-02 approving the Affordable Housing Ordinance and amending Title 13 to establish the affordable housing requirements for new residential development projects.

3. Deferred Resolution No. 2024-10 establishing the affordable housing in-lieu fee schedule to a later date.

City Council recessed into a break at 10:30 p.m.

City Council reconvened at 10:46 p.m.

OLD BUSINESS:

1. CITY COUNCIL FIRST READING OF ORDINANCES TO AMEND TITLE 13 (PLANNING, ZONING AND DEVELOPMENT) AND TITLE 9 (LICENSES AND

BUSINESS REGULATIONS) OF THE COSTA MESA MUNICIPAL CODE TO MODIFY THE CITY’S RETAIL CANNABIS PROVISIONS AND FIND THIS PROJECT TO BE

CATEGORICALLY EXEMPT FROM CEQA
Presentation by Ms. Halligan, Senior Planner.

MOVED/SECOND: Council Member Marr/Council Member Gameros MOTION: Limit Public Comment time to 2 minutes each.

The motion carried: 5-2.

Public Comments:

Joe Zappala, spoke on signage and allowing dispensaries to identify their business.

Speaker, expressed concern that a cap of 35 is too high and requested a buffer zone between stores.

Mike Hannegan, Secret Garden, spoke on allowing signage that identifies it is a dispensary, cannabis store, or has a green cross.
91 Minutes – Regular Meeting April 2, 2024 Page 9 of 12 Speaker, spoke on changing the numeric limit from Cannabis Business Permit to Conditional Use Permit, remove the legal non-confirming status from being attached to existing stores, requested to remove the requirement that each financial interest holder obtain a business license.

Speaker, spoke in support of a cap at 35, and in support of changing the signage to allow identification of the business.

Speaker, indicated the cap of 35 is too high and spoke on the separation requirements.

MOVED/SECOND: Mayor Stephens/Council Member Gameros
MOTION: Approve staff recommendations with the following changes:
 Continue to process the 35 CUP applications, accept no other applications for 3 years, then at that time City Council can decide whether to accept additional applications, and if they decide to, what constraints or buffers.  Direct staff to process the remaining 12 CUP applications by the end of 2024, based on the readiness of the application, not if Tier 1 or Tier 2 system.  If subsequently there is a sale or change in ownership of an existing CUP they can apply for a CBP.

Discussion ensued on the financial interest business license requirement.

Mayor Stephens added to the motion to strike that each financial interest holder shall obtain a business license.

SUBSTITUTE MOTION/SECOND: Council Member Marr/Council Member Chavez SUBSTITUTE MOTION: Approve staff recommendation.

Mayor Pro Tem Harlan requested to strike that each financial interest holder shall obtain business license requirement.

Council Member Marr did not agree to the change.

SUBSTITUTE MOTION/SECOND: Council Member Marr/Council Member Chavez SUBSTITUTE MOTION: Approve staff recommendation.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, and Mayor Pro Tem Harlan.

Nays: Mayor Stephens.

Absent: None.

Abstain: None.

Motion carried: 6-1
92 Minutes – Regular Meeting April 2, 2024 Page 10 of 12 ACTION:

1. City Council found that the project is categorically exempt from the California Environmental Quality Act (CEQA), Section 15061(b)(3) (“General Rule”).

2. Introduced for first reading, by title only, Ordinance No. 2024-03 amending Title 13 (Planning, Zoning and Development) and Ordinance No. 2024-04 amending Title 9 (Licenses and Business Regulations) of the Costa Mesa Municipal Code to modify the City’s retail cannabis provisions.

NEW BUSINESS:

1. AWARD OF FIRE STATION NO. 4 TRAINING TOWER AND SITE IMPROVEMENTS PROJECT, CITY PROJECT NO. 23-04, AND FINDING OF A CATEGORICAL

EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Presentation by Mr. Yang, City Engineer.

Public Comments:

Speaker, spoke on the Finance and Pension Advisory Committee reviewing the item and inquired if the scope had increased.

MOVED/SECOND: Council Member Gameros/Council Member Chavez MOTION: Approve staff recommendation.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0
ACTION:

1. City Council found that the Fire Station No. 4 Training Tower and Site Improvements Project, City Project No. 23-04, is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines Section 15301.

2. Adopted plans, specifications, and working details for the Fire Station No. 4 Training Tower and Site Improvements Project, City Project No. 23-04.

3. Authorized the City Manager and City Clerk to execute a Public Works Agreement (PWA) in a not to exceed amount of $3.5 million and future contract amendments as approved by the City Attorney within City Council authorized limits to Caliba, Inc., 8031 Main Street, Stanton, California 90680.
93 Minutes – Regular Meeting April 2, 2024 Page 11 of 12

4. Authorized the City Manager and City Clerk to execute a Professional Services Agreement (PSA) in the amount of $347,241 and future contract amendments as approved by the City Attorney and within City Council authorized limits to STV Construction, Inc., 1055 West 7th Street, Suite 2900, Los Angeles, California 90017.

5. Authorized the City Manager to negotiate change orders, as needed, to split the project into phases based on available funding, and explore financing options, including bond financing, with final bond documents to be brought to the City Council for final adoption, to fund the remaining unfunded portion of the project’s construction costs currently totaling $1.5 million for the second phase of the project.

MOVED/SECOND: Council Member Chavez/Mayor Stephens
MOTION: Continue New Business item No. 2 to the next regularly scheduled meeting.

SUBSTITUTE MOTION/SECOND: Council Member Harper/Council Member Marr SUBSTITUTE MOTION: Adjourn the meeting and continue the remaining items to the April 16th meeting.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: Council Member Reynolds.

Absent: None.

Abstain: None.

Motion carried: 6-1

2. FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE AND ADJUSTMENTS ACTION:

City Council continued the item to the April 16, 2024 City Council meeting.

3. APPOINTMENTS TO VARIOUS CITY COMMITTEES
ACTION:

City Council continued the item to the April 16, 2024 City Council meeting.

ADDITIONAL COUNCIL/BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS – NONE.

ADJOURNMENT – Mayor Stephens adjourned the meeting at 11:46 p.m. 94 Minutes – Regular Meeting April 2, 2024 Page 12 of 12 Minutes adopted on this 16th day of April, 2024.
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
95 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-116 Meeting Date: 4/16/2024
TITLE:

ANIMAL CARE SHELTER SERVICES - PRICELESS PETS RESCUE
DEPARTMENT: POLICE DEPARTMENT
PRESENTED BY: STEPHANIE SELINSKE, LIEUTENANT
CONTACT INFORMATION: STEPHANIE SELINSKE, (714) 754-5293 RECOMMENDATION:

Staff recommends the City Council:

2. Approve an annual Consumer Price Index (CPI) escalation and de-escalation not exceeding 5%.

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

4. Authorize the City Manager or designee to extend the PPR interim service agreement (Amendment #6) until June 30, 2024, for a not to exceed amount of $33,000 monthly.

BACKGROUND:

In 2018, the City explored opportunities to provide a more personalized approach to animal care. At that time, the City created the Animal Services Unit within the Parks and Community Services Department to directly oversee the Animal Care Services’ contracts and to track animals from impound to adoption. With an immediate need to put a new animal shelter and adoption service plan in place, City staff from the Police Department, Parks and Community Services Department, and the City Manager’sOffice worked together to identify possible solutions located in and around the city to care for the communities’animals. At the conclusion of this process, the responsibility for animal sheltering and animal adoption services was contracted to two separate service providers.

In the years that followed, management and oversight of the two providers were determined to be

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96 File #: 24-116 Meeting Date: 4/16/2024
In the years that followed, management and oversight of the two providers were determined to be inefficient. Having two separate service providers created communication challenges, resulting in City staff mediating between the two providers. It was determined that to provide the best and most efficient care for our animals, the City would seek a single provider to administer both shelter and adoption services.

Additionally, effective July 1, 2023, the responsibility for managing Animal Services was transferred to the Police Department.

ANALYSIS:

On June 8, 2023, the City of Costa Mesa released a Request for Proposal (RFP) for animal care services. The goals of the RFP were:

1. Identify a single service provider for animal shelter and adoption services as outlined in the scope of work.

2. Ensure the shelter is managed as a minimal/low kill facility and all animals receive the best care possible.

3. Establish and maintain a positive working relationship with City staff and work cooperatively to ensure all city animal care services are met.

Only two proposals were received, both from the previous service providers, Newport Center Animal Hospital (NCAH) and Priceless Pets Rescue (PPR). Proposals were reviewed by an evaluation committee which included staff from Costa Mesa Police Department, City Manager, Finance, and Parks. Proposals were evaluated based on project understanding, depth of experience, technical expertise, and associated evaluation criteria. Due to the similarity of proposal scoring, the service providers were interviewed for further evaluation.

During the evaluation phase, NCAH who was providing animal shelter and veterinarian services at the time, submitted a 60-day notice to terminate the current service agreement and withdrew from the RFP process on November 2, 2023. Due to the unplanned termination of the services agreement with NCAH and based on purchasing guidelines, Section 2-171(2), the agreement with PPR was amended to include interim animal shelter and veterinarian services to ensure there were no lapses in services for the community. PPR agreed to continue to provide the interim services at a monthly cost of $33,000 until the City secured a new long-term agreement.

On January 29, 2024, the City requested a revised service and cost proposal from PPR based on a revised scope of work that included services for adoption, veterinarian and other services not included in the original scope of work that was a part of the original RFP.

PPR was able to demonstrate the ability to provide all services required in the revised scope of work.

They have over 15 years of experience in the animal welfare, care and adoption field. PPR has been providing animal adoption services to the City of Costa Mesa since early 2018. PPR is currently and will continue to provide animal services from their current location at 1536 Newport Blvd. and has established a temporary partnership with Newport Mesa Animal Hospital, 1542 Newport Blvd., to provide veterinary services.

Upon approval of this agreement, PPR will have reasonable time to identify and secure a stand-

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97 File #: 24-116 Meeting Date: 4/16/2024
Upon approval of this agreement, PPR will have reasonable time to identify and secure a stand- alone facility in Costa Mesa, establish a lease, and take steps to apply for any required permits. PPR will make the necessary upgrades to the location to provide an intake area, isolation area, quarantine area, and a fully staffed veterinary suite and open to the public to redeem their lost/stray animals.

The facility will adhere to guidelines set forth in the Guidelines for Standards of Care in Animals Shelters - Second Edition, published by the Association of Shelter Veterinarians and as recommended by The Humane Society of the United States. PPR will provide hours of operation that allow for general intake from Animal Control and provide extended hours for the public to allow for return to owner activity, owner surrender, and be staffed 24/7 with trained personnel with access at any time to the City of Costa Mesa’sAnimal Services personnel. PPR will provide standard veterinary care for all animals based on their needs, including spay/neuter procedures, microchips, emergency medical care, vaccines, health assessment, daily treatment, monitoring, etc. PPR will provide all adoption services, utilize specialty rescue groups, volunteer and foster programs, and other animal services such as low-cost spay/neuter and microchip clinics for community members.

PPR has a long-standing connection and support in Costa Mesa and is active within the community providing animal care and adoption outreach. The City of Costa Mesa has a long-standing working relationship with PPR, its management, staff, and volunteers. Approving the animal services agreement will allow for an uninterrupted continuation of these vital services.

Based upon this agreement, PPR will continue to provide interim services at a rate of $33,000 through June 30, 2024. Beginning July 1, 2024, the negotiated compensation under this animal shelter services agreement would not exceed $40,000 monthly.

ALTERNATIVES:

The City Council could choose not to approve the contract with Priceless Pets Rescue; however, this alternative is not recommended as contracting with PPR would be in the City's best interest due to the level of comprehensive services they can provide to all animals within the City of Costa Mesa, their existing working relationship with Costa Mesa Animal Services, and the ability to provide care for animals without a delay or gap in services and their geographic proximity, which ensures expedient care for animals within the city limits.

FISCAL REVIEW:

The annual budget in the amount of $425,000 for the interim service agreement with Priceless Pets Rescue is in the Police Department’sbudget in the General Fund 101. An additional $55,000 has been requested in the budget development process to bring the total annual budget to $480,000 to cover the increase to the service agreement beginning July 1, 2024.

LEGAL REVIEW:

The City Attorney’sOffice has reviewed this report and drafted the Professional Services Agreement and approves them as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the City Council Goal: Strengthen the public’s safety and improve the quality of life.

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98 File #: 24-116 Meeting Date: 4/16/2024
CONCLUSION:

Staff recommends the City Council:

2. Approve an annual Consumer Price Index (CPI) escalation and de-escalation not exceeding 5%.

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

4. Authorize the City Manager or designee to extend the PPR interim service agreement (Amendment #6) until June 30, 2024, for a not to exceed amount of $33,000 monthly.

Page 4 of 4 ends

99 Attachment 1
1 Rev. 2-2024 Priceless Pets

CITY OF COSTA MESA

PROFESSIONAL SERVICES AGREEMENT
WITH

PRICELESS PETS

This PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 1st day of July, 2024 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and Priceless Puppy Rescue, Corp, a California Nonprofit Public Benefit Corporation (dba PRICELESS PETS) (“Consultant”).

RECITALS

A. City proposes to utilize the services of Consultant as an independent contractor to provide animal care shelter services, 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,” “B” and “C” 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 financial 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 professional services described in the following documents, each of which is incorporated by reference:

 City’s Request for Proposals, attached hereto as Exhibit “A”  Revised Scope of Services, attached hereto as Exhibit “B” and  Background & Project Summa ry – Scope of Work Considerations – Revised March 14, 2024 (“Consultant’s Proposal”), attached hereto as Exhibit “C”.

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 accordance 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 100
Attachment 1
2 Rev. 2-2024 Priceless Pets

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 matters of concern;

(b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or

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; occupationa l 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, gende r expression, age, sexual orientation, or military or veteran status, except as permitted pursuant to s ection 12940 of the Government Code.

1.6. Non-Exclusive Agreement . Consultant acknowledges that City may enter into agreements with other consultant s 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 t he 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. Co nsultant 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. Initially, Consultant shall be paid forty thousand dollars ($40,000) 101
Attachment 1
3 Rev. 2-2024 Priceless Pets

per month . Consultant’s total compensation shall not exceed four hundred eighty thousand ($ 480,000.00) per year. The monthly payment may only be increased pursuant to section 2.2 , below.

2.2. Consumer Price Index Adjustment . Upon request, effective on each July 1 following the Effective Date, Consultant is entitled to request and obtain a price increase for the monthly payment based on the lesser of (a) 5% or (b) the changes to the Consumer Price Index, all Urban Consumers (CPI-U), for the Los Angeles–Long Beach–Anaheim statistical area based upon the changes to the CPI-U comparing the immediately preceding April (i.e., 3 months prior) against the April before that date (i.e., 1 year and 3 months prior). For Consultant’s request for a price increase to be effective, the request shall reference the above referenced CPI-U index, the calculation establishing the amount of the change to the CPI-U for that period, and Consultant’s revised prices based upon such CPI increase.

2.3. 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.

2.4. 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.

2.5. 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. Unless otherwise agreed to in writing by the parties, t he profess ional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the time frames set forth in Consultant’s Proposal, unless the parties agreed to amend such time frame in writing. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement.

Consultant shall continue to provide the contracte d services at its current location in the City if necessary but shall expeditiously secure a new location at which all services contemplated herein shall be provided, including intake, veterinary services, sheltering, and adoption services.

Consultant shall enter into a lease or contingent lease for such location within sixty (60) days of execution of this Agreement and shall prepare and submit any required conditional use permit or minor conditional use permit or other land use entitlement for such locati on as may be required within ninety (90) days of the effective date of this Agreement. Within ninety (90) days of securing any such required land use entitlement, or if none is required, from executing a lease for the new 102
Attachment 1
4 Rev. 2-2024 Priceless Pets

location, Consultant shall complete any tenant improvements necessary to provide the services contemplated herein . The Chief of Police may provide such additional time extensions for securing land use entitlements or completion of construction for full operations at such new location as he shall deem necessary and appropriate; provided, however, that Consultant continues to meet all other requirements of this Agreement during any such extended time period.

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 (excluding COVID-19), 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 dur ation 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 thi s 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 imm ediately 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.

4.0. TERM AND TERMINATION

4.1. Term. This Agreement shall commence on the Effective Da te and continue for a period of five [5] years, ending on June 30, 2029, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties.

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.

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 A.M. Best’s 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 Millio n Dollars ($1,000,000.00) per occurrence, Two Million Dollars ($2,000,000.00) general aggregate.

(b) Business a utomobile liability for owned vehicles, hired, and non -owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00) com bined single limit per accident for bodily injury and property damage.

Consultant agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogati on 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.”
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(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 con tributing with the ins urance 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.

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 provisi on which requires that no insured except the named insured can satisfy any such deductible or self-insured retention.

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 C ity Manager or his or her designee shall be the representative of City for purposes of t his 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 thi s 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.
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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 of ficial U.S. postmark if such communication is sent through regular United States mail.

IF TO CONSULTANT: IF TO CITY:

Priceless Pets
15350 Fairfield Ranch Road, Suite I
Chino Hills, CA 91709
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Tel: (909) 662-1440 Tel: (714) 754-5672
Attn: Lisa Price Attn: Bryan Wadkins

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 “D” 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 sha ll 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 106
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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 r elease 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, complaint, or suit asserts as it s 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.

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, assessme nts, 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 inde mnification arising under this paragraph.

6.11 Conflicts with Independent Contractor. Contractor/consultant’s duties and services under this Agreement shall not include preparing or assisting the public entity with any portion of the public entity’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the public entity. The public entity entering into this Agreement shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. Contractor/consultant’s participation in the 107
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planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. Contractor/consultant shall cooperate with the public entity to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by contractor pursuant to this Agreement.

6.12. 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 pa yment 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.

6.13. 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 any reasonable assistance and cooperation which City might require.

6.14. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or pre pared 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 C ity or its authorized representative, at no additional cost to the City.

6.15. 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 A ct (California Government Cod e s ection 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 108
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liable or responsible for t he 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.

6.16. 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 s ections 81000, et seq.) and G overnment Code s ection 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.

6.17. 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.

6.18. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect.

6.19. 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. To the extent that Exhibit “A” and “B” conflict, Exhibit “B” controls. To the extent that Exhibit “C” conflicts with Exhibit “B,” Exhibit “B” controls.

6.20. Costs. Each party shall bear its own cos ts and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

6.21. Binding Effect. This Agreement binds and benefits the parties and their respective permitted successors and assigns.

6.22. 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.

6.23. 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.

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6.24. 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.

6.25. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.

6.26. 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 righ t 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.

6.27. Severability. If any provision of this Agreem ent 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, then both parties agree to substitute such provision(s) through good faith negotiations.

6.28. 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.

6.29. 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 do ing so the parties hereto are formally bound to the provisions of this Agreement.

[Signatures appear on following page.]
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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

APPROVED AS TO INSURANCE:

__________________________________ Date: __________________________ Ruth Wang
Risk Management

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APPROVED AS TO CONTENT:

__________________________________ Date: __________________________ Bryan Wadkins
Project Manager

DEPARTMENTAL APPROVAL:

__________________________________ Date: __________________________ Ronald Lawrence
Police Chief

APPROVED AS TO PURCHASING:

__________________________________ Date: __________________________ Carol Molina
Finance Director

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EXHIBIT A

REQUEST FOR PROPOSALS
113
Attachment 1

EXHIBIT B

CITY’S REVISED SCOPE OF SERVICES
114
Attachment 1

EXHIBIT C

CONSULTANT’S PROPOSAL

“Background & Project Summary – Scope of Work Considerations – Revised March 14, 2024”

115
Attachment 1

EXHIBIT D

CITY COUNCIL POLICY 100-5

116
Attachment 1

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 workpl ace, 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 purposes 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 unde r 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 de emed 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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REQUEST FOR PROPOSAL
23-22
FOR
Animal Care Shelter Services
Police/Parks & Community Services Department

CITY OF COSTA MESA
Released on June 8, 2023
Attachment 2
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REQUEST FOR PROPOSAL
Fabrication & Outfitting of Fire Department Mobile Command Vehicle

The City of Costa Mesa (hereinafter referred to as the “City”) is requesting Proposals from qualified consultants for Animal Care Sh elter Services for the Police/Parks and Community Services Department. The awarded Contractor, (hereinafter referred to as “Contractor”) shall be in accordance with the Sample Professional Service Agreement, Appendix B terms, conditions, and scope of work.

Prior to submitting a Proposal, Proposers are advised to carefully read the instructions below, including the Sample Professional Service Agreement and any solicitation appendix/exhibits. The term is expected to be for 5 years. The City reserves the right to award one or more contracts for this service.

I. GENERAL INFORMATION
The City of Costa Mesa is a general law city, which operates under the council/manager form of government with an annual General Fund budget of over $206 million and a total budget of $163.5 million for fiscal year 2022-2023.

The City of Costa Mesa, incorporated in 1953, has an estimated population of 115,000 and has a land area of 16.8 square miles. It is located in the northern coastal area of Orange County, California, and is bordered by the cities of Santa Ana, Newport Beach, Huntington Beach, Fountain Valley and Irvine.

The City is a “full service city” providing a wide range of services. These services include: police and fire protection; animal control; emergency medical aid; building safety regulation and inspection; street lighting; land use planni ng and zoning; housing and community development; maintenance and improvement of streets and related structures; traffic safety maintenance and improvement; and full range of recreational and cultural programs.

The City of Costa Mesa is home of the Segerst rom Center for the Arts, Orange County Fairgrounds, South Coast Repertory Theater and the South Coast Plaza Shopping Center, which is the single largest commercial activity center in the City. The volume of sales generated by South Coast Plaza secures its place as the highest volume regional shopping center in the nation.

The successful Proposer, shall have experience in similar types of services. All Proposers responding to this Request for Proposal (RFP) will be evaluated on the basis of their expertise, prior experience on similar projects, demonstrated competence, ability to meet the requested services, adequate staffing, reference check, understanding of services, cost and responsiveness to the needs and concerns of the City of Costa Mesa.

1. Important N otice: The City has attempted to provide all information available. It is the responsibility of each Proposer to review, evaluate, and, where necessary, request any clarification prior to submission of a Proposal. Proposers are not to contact other City personnel with any questions or clarifications concerning this Request for Proposal (RFP). Any City response relevant to this RFP other than through or approved by City’s Purchasing Department is unauthorized and will be considered invalid.

If clarification or interpretation of this solicitation is considered necessary by City, a written addendum shall be issued and the information will be posted on PlanetBids. Any interpretation of, or correction to, this solicitation will be made only by addendum issued by the City’s Purchasing Department. It is the responsibility of each Proposer to periodically check PlanetBids website to ensure that it has 121

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received and reviewed any and all addenda to this solicitation. The City will not be responsible for any other explanations, corrections to, or interpretations of the documents, including any oral information.

2. Schedule of Events: This Request For Proposal shall be governed by the following schedule:

Release of RFP June 8, 2023
Mandatory Pre-propsal Meeting June 21, 2023 2:00PM Deadline for Written Questions June 26, 2023 at 5:00 p.m.

Responses to Questions Posted June 29, 2023 by 5:00 p.m Proposals are Due July 6, 2023 at 10:00 a.m.

Interview (Tentative) July 18-20
Approval of Contract (Tentative) July/August TBD
**All dates are subject to change at the discretion of the City.

Pre-Proposal Conference: A MANDATORY Pre-Proposal conference will be held on June 21, 2022 at 2:00 p.m. in Community Room at City Hall, 77 Fair Drive, Costa Mesa, CA 92626. A Pre-Proposal conference is held to allow for questions and clarification concerning the City’s RFP process, scope of services and subsequent contract award.

3. Proposer’s Minimum Requirements: Interested and qualified Proposers that can demonstrate their ability to successfully provide the required services outlined in Appendix A– Scope of Work, of this RFP are invited to submit a proposal, provided they meet the following requirements. All requirements must be met at the time of the proposal due date. If these requirements are not met, the proposal may not receive further consideration, as determined in the sole discretion of the City.

1. Must demonstrate an ability to commence shelter operations by September 1, 2023.

2. Proposals shall provide an implementation timeline or schedule that conforms with the requirements of this RFP.

3. A minimum of five years' demonstrated experience in housing and caring for dogs

4. and cats in a setting other than as a pet in the home

5. Must provide financial documents to demonstrate financial stability, and an ability to finance the required Animal Care Services as stated in Scope of Work. Proposers should provide a statement describing the method that will be used to finance the proposed operation.

6. At the time of submittal of a proposal, the proposer must have:

1. All applicable and current California and Federal employer tax IDs;

2. Other licenses required by the State of California or City of Costa Mesa for the services proposed.

7. The proposer, its agents and employees shall not have been convicted of any crime involving cruelty to animals.

8. The proposer shall not be “inactive,” or “not in good standing” with the California State Secretary of State’s Office, the Department of Revenue, or the Department of Labor & Industries

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II. GENERAL INSTRUCTIONS AND PROVISIONS

1. Proposal Format Guidelines: Interested entities or contractors are to provide the City of Costa Mesa with a thorough Proposal using the following guidelines: Proposal should be typed and should contain no more than 20 typed pages using a 12 -point font size, including transmittal letter and resumes of key people, but excluding Index/Table of Contents, tables, charts, graphic exhibits and pricing forms. Each Proposal will adhere to the following order and content of sections. Proposal should be straightforward, concise and provide “layman” explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP instructions, responding to the RFP requirements, and on providing a complete and clear description of the offer. Proposals which appear unrealistic in terms of technical commitments, lack of technical competence or are indicative of failure to comprehend the complexity and risk of this contract may be rejected. The following Proposal sections are to be inc luded in the Proposer’s response:
• Cover Letter: A cover letter, not to exceed three pages in length, should summarize key elements of the Proposal. An individual authorized to bind the Contractor must sign the letter. Indicate the address and telephone number of the contractor’s office located nearest to Costa Mesa, California, and the office from which the project will be managed. And include proposed working relationship among the offering agency and subcontractors, if applicable.

• Background and Project Summary Section: The Background and Project Summary Section should describe your understanding of the City, the work to be done, and the objectives to be accomplished. Refer to Scope of Work, Appendix A of this RFP.

• Method of Approach: Provide a detai led description of the approach and methodology that will be used to fulfill each requirement listed in the Scope of Work of this RFP. The section should include:

1. An implementation plan that describes in detail (i) the methods, including controls by which your firm manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.

2. Detailed description of efforts your firm will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section.

3. Detailed project schedule, identifying all tasks and deliverab les to be performed, durations for each task, and overall time of completion.

4. Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work.

5. Proposers are encouraged to provide additional innovative and/or creative approaches for providing the service that will maximize efficient, safe, and cost - effective operations or increased performance capabilities. • Qualifications & Experience of the Firm : Describe the qualifications and experience of the organization or entity performing services/projects within the past eight years that are 123

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similar in size and scope to demonstrate competence to perform these services. Information shall include:

1. If the owner is a corporation please provide: Name of corporation, corporate office street address, city, state, and zip code, state where incorporated, date of incorporation, first and last name of officers, local office address, city, state & zip, and the date local office opened its doors for business.

2. If the owner is a partnership or joint venture, please provide: Name of partnership or joint venture, principal office street address, city, state, and zip code, state of organization, date of organization, first and last name of general partner(s), local office address, city, state, and zip code, and date local office opened its doors for.

3. List all businesses owned or controlled by yourself (applicant) or business manager doing similar b usiness in California under another name. List business name and address and specify who owns or controls the business (e.g., self, business manager, etc.).

4. List all businesses for which you or your business manager is or was an officer, director, or partn er doing similar business in California under another name. List business name and address, title, date(s) in position; specify who was in position (e.g., self, business manager, etc.).

5. How many years have you been in business under your present business name?

6. Provide a list of current and previous contracts similar to the requirements for Costa Mesa, including all public agencies served (if any). For each, provide a brief description of the scope of work performed, the length of time you have been providing services, and the name, title, and telephone number of the person who may be contacted regarding your organization’s service record. Provide a sample of each background investigation for each contract.

7. Submit a description of the organization’s qualifications, experience and abilities that make it uniquely capable to provide the services specified in the Scope of Work.

Any public entity which submits a Proposal should describe in detail how it currently performs services like those identified in the Scope of Work within its or other jurisdictions, including photographs, written policies and/or video of services provided. If you have performed these services under contract for another public entity, please provide references for those entities as set fo rth above for private Proposers.
• Financial Capacity: The City is concerned about bidders’ financial capability to perform, therefore, please provide sufficient data to allow an evaluation of firm’s financial capabilities.

• Key Personnel: It is essential that the Proposer provide adequate experienced personnel, capable of and devoted to the successful accomplishment of work to be performed under this contract. The Proposer must agree to assign specific individuals to the key positions. o Identify the members of the staff who would be assigned to act for Proposer’s firm in key management and filed positions providing the services described in the Proposal, and the functions to be performed by each.
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o Include resumes or curriculum vitae of ea ch such staff member, including name, position, telephone number, email address, education, and years and type of experience. Describe for each such person, the relevant transactions on which they have worked.

• Cost Proposal: Provide a fee schedule/pricing information for the project as referenced in the attached in Appendix C. Proposals shall be valid for a minimum of 180 days following submission.

• Disclosure: Please disclose any and all past or current business and personal relationships with any current Costa Mesa elected official, appointed official, City employee, or family member of any current Costa Mesa elected official, appointed official, or City employee. Any past or current business relationship may not disqualify the firm from consideration.

• Sample Professional Service Agreement: The firm selected by the City will be required to execute a Professional Service Agreement with the City. A sample of th e Agreement is enclosed as Appendix B, but may be modified to suit the specific services and needs of the City. If a Proposer has any exceptions or conditions to the Agreement, these must be submitted for consideration with the Proposal. Otherwise, the Pr oposer will be deemed to have accepted the form of Agreement. See No. 12 of this RFP below.

• Checklist of Forms to Accompany Proposal: As a convenience to Proposers, following is a list of the forms, Appendix C included in this RFP, which should be includ ed with Proposals:

1. Vendor Application Form

2. Company Profile & References

3. Ex Parte Communications Certificate

4. Disclosure of Government Positions

5. Disqualifications Questionnaire

6. Bidder/Applicant/Contractor Campaign Contribution

7. Cost Proposal

2. Process for Submitting Proposals:
• Content of Proposal: The Proposal must be submitted using the format as indicated in the Proposal format guidelines.

• Preparation of Proposal: Each Proposal shall be prepared simply and economically, avoiding the use of elaborate promotional material beyond those sufficient to provide a complete, accurate and reliable presentation.

• Cost for Preparing Proposal : The cost for developing the Proposal is the sole responsibility of the Proposer. All Proposals submitted become the property of the City. Fee proposal shall be submitted in a separate file containing the following:
✓ Cover letter stating the total lump sum fee.
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✓ A spreadsheet with a detailed fee schedule of the proposed costs. Each fee schedule shall depict individual project asks, number of hours assigned for specific personnel and their basic hourly rates.

• Forms to Accompany Proposal: Appendix C forms shall be attached at the end of the Proposal with the exception of the Cost Proposal which shall be submitted in a separate file.

• Number of Proposals: Submit one (1) PDF file format copy of your proposal in sufficient detail for thorough evaluation and comparative analysis

• Submission of Proposals: Complete written Proposals must be submitted electronically in PDF file format via the planetbids.com website not later than 10:00 a.m. July 6, 2023. Proposals will not be accepted after this deadline. Bids received after the scheduled closing time will not be accepted. It shall be the sole responsibility of the Bidder to see that the bid is received in proper time. Faxed or e -mailed Proposals will not be accepted. NO EXCEPTIONS.

• Inquiries: Questions about this RFP must be posted in the Q & A tab on Planetbids no later than June 26, 2023 at 5:00 P.M. The City reserves the right not to answer all questions.

The City reserves the right to amend or supplement this RFP prior to the Proposal due date. All addendum(s), responses to questions received, and additional information will be posted to the Costa Mesa Procurement Registry, Costa Mesa -Official City Web Sit e, Business-Bids & RFP's. Proposers should check this web page daily for new information.

From the date that this RFP is issued until a firm or entity is selected and the selection is announced, firms or public entities are not allowed to communicate out side the process set forth in this RFP with any City employee other than the contracting officer listed above regarding this RFP. The City reserves the right to reject any Proposal for violation of this provision. No questions other than posted on Planetbids will be accepted, and no response other than written will be binding upon the City.

• Conditions for Proposal Acceptance: This RFP does not commit the City to award a contract or to pay any costs incurred for any services. The City, at its sole discret ion, reserves the right to accept or reject any or all Proposals received as a result of this RFP, to negotiate with any qualified source(s), or to cancel this RFP in part or in its entirety. The City may waive any irregularity in any Proposal. All Propos als will become the property of the City of Costa Mesa, USA. If any proprietary information is contained in the Proposal, it should be clearly identified.

• Insurance & W-9 Requirements: Upon recommendation of contract award, Contractor will be required to submit the following documents with ten (10) days of City notification, unless otherwise specified in the solicitation:

▪ Insurance - City requires that licensees, lessees, and vendors have an approved Certificate of Insurance (not a declaration or policy) or proof of legal self-insurance on file with the City for the issuance of a permit or contract. Within ten(10) consecutive calendar days of award of contract, successful Bidder must furnish the City with the Cert ificates of Insurance proving coverage as specified in the sample contract.
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▪ W-9 – Current signed form W -9 (Taxpayer Identification Umber & Certification) which includes Contractor’s legal business name(s).

3. Evaluation Criteria: The City’s evaluation and selection process will be conducted in accordance with Chapter V, Article 2 of the City's Municipal Code (Code). In accordance with the Code, the responsive responsible proposer shall be determined based on evaluation of qualitative factors in addition to cost. At all times during the evaluation process, the following criteria will be used. Sub - criteria are not necessarily listed in order of importance. Additional sub-criteria that logically fit within a particular evaluation criteria may also be considered even if not specified below.

1. Qualifications of Key Personnel 20%

2. Qualifications of the Firm Experience 30%

3. Method of Approach 40%

4. Cost Proposal 10%

4. Evaluation of Proposals and Selection Process: In accordance with its Municipal Code, the City will adhere to the following procedures in evaluating Proposals. An Evaluation Committee, which may include members of the City's staff and possibly one or more outside experts, will screen and review all Proposals according to the weighted criteria set forth above. While price is one basic factor for award, it is not the sole consideration.

A. Responsiveness Screening : Proposals will first be screened to ensur e responsiveness to the RFP. The City may reject as non-responsive any Proposal that does not include the documents required to be submitted by this RFP. At any time during the evaluation process, the City reserves the right to request clarifications or additional information from any or all Proposers regarding their Proposals.

B. Initial Proposal Review: The Committee will initially review and score all responsive written Proposals based upon the Evaluation Criteria set forth above. The Committee may a lso contact Proposer's references. Proposals that receive the highest evaluation scores may be invited to the next stage of the evaluation process. The City may reject any Proposal in which a Proposer’s approach, qualifications, or price is not considered acceptable by the City. An unacceptable Proposal is one that would have to be substantially rewritten to make it acceptable. The City may conclude the evaluation process at this point and recommend award to the lowest responsible bidder. Alternatively, the City may elect to negotiate directly with one or more Proposers to obtain the best result for the City prior to making a recommendation or selection.

C. Interviews, Reference Checks, Revised Proposals, Discussions: Following the initial screening and review of Proposals, the Proposers included in this stage of the evaluation process may be invited to participate in an oral interview. Interviews, if held, are tentatively scheduled for the week of July 18-20 and will be conducted at City of Costa Mesa City Hall, 77 Fair Drive, Costa Mesa, CA 92628 or via video conference call. This date is subject to change. The individual(s) from Proposer's organization that will be directly responsible for carrying out the contract, if awarded, 127

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should be present at the oral interview. The oral interview may, but is not required to, use a written question/answer format for the purpose of clarifying the intent of any portions of the Proposal.

In addition to conducting an oral interview, the City may during this stage of the evaluation process also contact and evaluate the Proposer’s references , contact any Proposer to clarify any response or request revised or additional information, contact any current users of a Proposer’s services, solicit information from any available source concerning any aspect of a Proposal, and seek and review any other information deemed pertinent to the evaluation process.

Following conclusion of this stage of the evaluation process, the Committee will again rank all Proposers according to the evaluation criteria set forth above. The Committee may conclude the evaluation process at this point, and make a recommendation for award, or it may request Best and Final Offers from Proposers. The City may accept the Proposal or negotiate the terms and conditions of the agreement with the highest ranked organization. The City may recommend award without Best and Final Offers, so Proposers should include their best Proposal with their initial submission.

Recommendation for award is contingent upon the successful negotiation of final contract terms.

Negotiations shall be confid ential and not subject to disclosure to competing Proposers unless an agreement is reached. If contract negotiations cannot be concluded successfully within a time period determined by the City, the City may terminate negotiations and commence negotiations with the next highest scoring Proposer or withdraw the RFP.

5. Protests: Failure to comply with the rules set forth herein may result in rejection of the protest.

Protests based upon restrictive specifications or alleged improprieties in the Proposal procedure, which are apparent or reasonably should have been discovered prior to receipt of Proposals shall be filed in writing with the City’s Purchasing Department at least 10 calendar days prior to the deadline for receipt of Proposals. The protest must clearly specify in writing the grounds and evidence on which the protest is based.

Protests based upon alleged improprieties that are not apparent or that could not reasonably have been discovered prior to submission date of the Proposals, such as disputes over the staff recommendation for contract award, shall be submitted in writing to the City’s Purchasing Department, within 48 hours from receipt of the notice from the City advising of City’s recommendation for award of contract. The protest must clearly specify in writing the grounds and evidence on which the protest is based. The City’s Purchasing Department will respond to the protest in writing at least 3 days prior to the meeting at which City’s recommendation to the City Council will be considered. Should Proposer decide to appeal the response of the City’s Purchasing Department, and pursue its protest at the Council meeting, it will notify the City’s Purchasing Department of its intention at least 2 days prior to the scheduled meeting.

A. Procedure – All protests shall be typed under the protester’s letterhead and submitted in accordance with the provisions stated herein. All protests shall include at a minimum the following information:
• The name, address and telephone number of the protester; • The signature of the protester or the protester’s representative; • The solicitation or contract number;
• A detailed statement of the legal and/or factual grounds for the protest; and • The form of relief requested.

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6. Accuracy of Proposals: Proposers shall take all responsibility for any errors or omissions in their Proposals. Any discrepancies in numbers or calculations shall be interpreted to reflect the cost to the City.

If prior to contract award, a Proposer discovers a mistake in their Proposal which renders the Proposal unwilling to perform under any resulting contract, the Proposer must immediately notify the facilitator and request to withdraw the Proposal. It shall be solely within the City's discretion as to whether withdrawal will be permitted. If the solicitation contemplated evaluation and award of "all or none" of the items, then any withdrawal must be for the entire Proposal. If the solicitation provided for evaluation and award on a line item or combination of items basis, the City may consider permitting withdrawal of specific line item(s) or combination of items.

7. Responsibility of Proposers: The City shall not be liable for any expenses incurred by potential Contractors in the preparation or submission of their Proposals. Pre -contractual expenses are not to be included in the Contractor’s Pricing Sheet. Pre -contractual expenses are defined as , including but not limited to, expenses incurred by Proposer in:

• Preparing Proposal in response to this RFP;
• Submitting that Proposal to the City;
• Negotiating with the City any matter related to the Proposal; and, • Any other expenses incurred by the Proposer prior to the date of the award and execution, if any, of the contract.

8. Confidentiality: The California Public Records Act (Cal. Govt. Code Sections 6250 et seq.) mandates public access to government records. Therefore, unless information is exempt from disclosure by law, the content of any request for explanation, exception, or substitution, response to this RFP, protest, or any other written communication between the City and Proposer, shall be available to the public. The City intends to release all public portions of the Proposals following the evaluation process at such time as a recommendation is made to the City Council.

If Proposer believes any communication contains trade secrets or other proprietary information that the Proposer believes would cause substantial injury to the Proposer’s competitive position if disclosed, the Proposer shall request that the City withhold from disclosure the proprietary information by marking each page containing such proprietary information as confidential. Proposer may not designate its entire Proposal as confidential nor designate its Price Proposal as confidential.

Submission of a Proposal shall indicate that, if Proposer requests that the City withhold from disclosure information identified as confidential, and the City complies with the Proposer’s request, Proposer shall assume all responsibility for any challenges resulting from the non -disclosure, indemnify and hold harmless the City from and against all damages (including but not limited to attorney’s fees and costs that may be awarded to the party requesting the Proposer information), and pay any and all costs and expenses related to the withholding of Proposer information. Proposer shall not make a claim, sue, or maintain any legal action against the City or its directors, officers, employees, or agents concerning the disclosure, or withholding from disclosure, of any Proposer information. If Proposer does not request that the City withhold from disclosure information identified as confidential, the C ity shall have no obligation to withhold the information from disclosure and may release the information sought without any liability to the City.
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9. Ex Parte Communications: Proposers and Proposers’ representatives should not communicate with the City Council members about this RFP. In addition, Proposers and Proposers’ representatives should not communicate outside the procedures set forth in this RFP with an officer, employee or agent of the City, including any member of the evaluation panel, with the e xception of the RFP Facilitator, regarding this RFP until after Contract Award. Proposers and their representatives are not prohibited, however, from making oral statements or presentations in public to one or more representatives of the City during a public meeting.

A "Proposer" or "Proposer's representative" includes all of the Proposer's employees, officers, directors, consultants and agents, any subcontractors or suppliers listed in the Proposer's Proposal, and any individual or entity who has been req uested by the Proposer to contact the City on the Proposer's behalf. Proposers shall include the Ex Parte Communications Form, Appendix C with their Proposals certifying that they have not had or directed prohibited communications as described in this section.

10. Conflict of Interest: The Proposer warrants and represents that it presently has no interest and agrees that it will not acquire any interest which would present a conflict of interest under California Government Code Sections 1090 et seq., or Sect ions 87100 et seq., during the performance of services under any Agreement awarded. The Proposer further covenants that it will not knowingly employ any person having such an interest in the performance of any Agreement awarded. Violation of this provision may result in any Agreement awarded being deemed void and unenforceable.

11. Disclosure of Governmental Position : In order to analyze possible conflicts that might prevent a Proposer from acting on behalf of the City, the City requires that all Proposers disclose in their Proposals any positions that they hold as directors, officers, or employees of any governmental entity. Additional disclosure may be required prior to contract award or during the term of the contract. Each Proposer shall disclose whether any owner or employee of the firm 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 using the attached Disclosure of Government Positions Form, Appendix C.

12. Conditions to Agreement: The selected Proposer will execute a Professional Service Agreement for Services with the City describing the Scope of Services to be performed, the schedule for completion of the services, compensation, and other pertinent provisions. The contract shall follow the sample form of Agreement provided as Appendix B to this RFP, which may be modified by the City.

All Proposers are directed to particularly review the indemnification and insurance requirements set forth in the sample Agreement. The terms of the agreement, including insurance requirements have been mandated by the City and can be modified only if extraordinary circumstances exist.

Submittal of a Proposal shall be deemed acceptance of all the terms set forth in this RFP and the sample agreement for services unless the Proposer includes with its Proposal, in writing, any conditions or exceptions requested by the Proposer to the proposed Agreement.

13. Disqualification Questionnaire: Proposers shall complete and submit, under penalty of perjury, a standard form of questionnaire inquiring whether a Proposer, any officer of a proposer, or any employee of a Proposer who has a proprietary interest in the Proposer, has ever been disqualified, removed, or otherwise prevented from proposing on, or completing a federal, state, or local government project because of a violation of law or safety regulation and if so, to explain the circumstances. A Proposal may be rejected on the basis of a Proposer, any officer or 130

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employee of such Proposer, having been disquali fied, removed, or otherwise prevented from proposing on, or completing a federal, state, or local project because of a violation of law or a safety regulation, Appendix C.

14. Standard Terms and Conditions: The City reserves the right to amend or supplement this RFP prior to the Proposal due date. All addendum(s) and additional information will be posted to the via PlanetBids.com. Proposers should check this web page daily for new information. 131

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APPENDIX A

SCOPE OF SERVICES

City of Costa Mesa – Police/Parks and Community Services Department

ANIMAL CARE SHELTER SERVICES

SCOPE OF WORK
The City is seeking a partnership to provide and operate an animal shelter facility to handle animal care sheltering and adoption services for the City of Costa Mesa. The provider will be responsible for the intake, coordination and management of animals within the City of Costa Mesa. The offer to provide an animal shelter facility and management along with operation and program services should address each section of the scope of work, specifying how the Bidder intends to meet the matter and the proposed method of services. The bidder should identify the manner to which they would accomplish the following like Animal Care Service Operations and Programs:
• Sheltering
• Medical Care (including specialty treatment)
• Adoption
• Foster Care
• Volunteer (if desired)
• Reporting
• Potential Animal Licensing

BACKGROUND
January of 2018, the City explored alternative Animal Care services to provide a more personalized approach to animal care. With an immediate need to put a new animal shelter and adoption service plan into place, City staff from the Police Department, Parks and Community Services Department, and the City Manager's Department worked together to identify possible solutions located in and around the City to care for the City's stray animals. The City developed a refined three-pronged operations process contracting their animal sheltering and animal adoption services. In response to the new system, the City created the Animal Care Services Division to directly oversee the Animal Care services contracts and to track animals from impound to adoption.

The City's specific objectives in selecting an animal care services shelter provider include the following:

1. Have an animal shelter facility to accommodate all necessary requirements as stated in this scope of work

2. Manage the shelter facility in a manner committed to ensuring that the facility is a minimal/low kill facility and all animals are getting the best care possible 132

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3. Establish and maintain a positive working relationship with City staff and work cooperatively to ensure all city animal care services are met.

SHELTER FACILITY - The proposal should describe the proposed facility to include capacity, compatible use, staffing, ownership/lease arrangement, location, service area, etc.

1. Shelter Facility: The shelter facility(ies) will include all necessary buildings, structures, grounds, spaces and equipment, as well as animal shelter operations services, as may be necessary to properly receive, maintain, care for, exercise, and provide for the appropriate disposition of all domestic and non-domestic animals that come within the City of Costa Mesa limits. The shelter facility(ies) must be appropriate for the species, the number of animals receiving care and the expected length of stay in order to ensure physical and psychological well-being of the animals. The shelter facility(ies) will provide for proper separation of animals by health status, age, gender, species, temperament, and predator-prey status. The shelter facility(ies) shall have an adequate number of dog kennels and cat cages, isolation facilities for sick dogs and cats, and quarantine facilities for biters or injured animals which are not necessarily sick (specifics listed below). The shelter facility(ies) shall be maintained in a clean and sanitary condition and the Provider will not permit any condition to exist which might constitute a nuisance. The shelter facility(ies) shall be in conformance with RFP -Animal Shelter Services local zoning regulations and shall comply with all federal, state and local regulations. The shelter facility(ies) should be of sufficient size to provide for the needs of the community, with effective separation between neighbors and the facility.

The shelter facility(ies) should:

a. Designate an area for sick and injured animals
b. Separate cats and dogs
c. Have noise control to muffle inside noise
d. Have an outdoor area designated for exercise/play
e. Not be filled beyond its designed capacity
f. Be well maintained, to provide for the sanitary and humane care of the animals

Note: The City reserves the right to inspect any potential shelter facility(ies) before contract award.

2. Shelter Location: The proposed shelter shall be within ten (10) miles of the City of Costa Mesa.

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3. Kennels/Cages: Provider shall provide an adequate number of dog kennels and cat cages, reptile areas, and separate areas for animals in quarantine and/or isolation designated for City's animals at the shelter facility(ies), which shall include, at a minimum:

a. 10 kennels for dogs under normal conditions
b. 5 kennels for dogs under quarantine
c. 5 kennels for dogs in isolation
d. 10 cages for cats under normal conditions
e. 10 cages for cats under quarantine and/or isolation
f. 2 areas for large reptile
Provider shall adhere to the guidelines relating to kennel sizes, including related amenities, that are set forth in Guidelines for Standards of Care in Animal Shelters - Second Edition December 2022 by the Association of Shelter Veterinarians, as recommended by the Humane Society of the U.S. (HSUS). Provider shall maintain the facility in accordance with the ASV Guidelines, including but not limited to the sanitation guidelines set forth therein.
(http://jsmcah.org/index.php/jasv/article/view/42/19)

Report to City when the shelter facility{ies) is at capacity.

4. Hours of Operation: Provide normal business hours at least six (6) days a week for twenty-four(24) hours per week. Veterinary services must be available to impounded City animals during normal business hours. In the event a veterinarian is required to perform routine or emergency medical services for any sick or injured animal delivered to the facility, the charge to the owner of said animal shall be accordance with the fee schedule set forth in provider's Proposal.

5. After-Hour Operations: Operate seven (7) days a week, twenty-four (24) hours a day with minimum of one caretaker onsite, providing access to City of Costa Mesa Animal Control Officers for non-emergency drop-offs and continuous care for City animals.

OPERATIONS - Administer and operate consistent and uniform procedures and processes that promote the health and safety of all animals, staff, volunteers, the public, and city workers. This includes following all Federal, State, and Local rules and regulations applicable to shelter operations.

1. Shelter Services: Provide and operate such animal shelter and care facilities, including all necessary buildings, structures, grounds, spaces and equipment, as well as animal shelter services, as may be necessary to properly receive, maintain, care for and provide for the appropriate disposition of all domestic animals that come within the legal animal control authority and responsibility of the City. Receive and evaluate animals, feed, provide water, emergency 134

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medical attention, health and condition evaluation, administer preventative medicine, clean kennels and cages, clean and disinfect animal spaces, provide shelter for animals, provide necessary grooming, flea and tick control, rodent control, provide euthanasia when deemed necessary, animal body storage and removal, animal exercise.

Type and brand of food may be mutually agreed upon between the Provider and the City of Costa Mesa Animal Control.

2. Pet Management System: All service area providers are expected to enter information into pet management system within 24 hours of each event, designated by the City, for the following:

a. Each change in an animal's status (breed, sex, age, weight) b. Health and behavioral assessment
c. Incidents of bites, mishandling of animals or other non-routine activity
d. Service delivered
City staff shall be given access to the system for proper tracking and updates for all animals.

3.Reporting:

Provide adequate and timely reports as requested by City and as applicable per law which will include statistics on:
• Animal Intakes
• Animal Outcomes
• Animal health records
• Animal days in care

3. Partnering: The City is looking for one service provider for all matters of this scope; however, the Provider may choose to propose to partner with another shelter(s) or organization(s) to provide services under this scope of work. If a partnering situation is to be used, that information shall be provided in the proposal.

4. Un-Adopted Animals: Provider will agree to allow unadopted animals to be gifted to a bona fide animal care or rescue organization that accepts otherwise "un-adoptable" animals, if available. The proposal should specify the manner that this would be accomplished.

5. Animal Intake: Includes animals detained by City of Costa Mesa Animal Control, or surrendered by a member of the public when the animal originated, or was found, in the incorporated area of Costa Mesa, California. Perform immediate health and behavior assessments of each animal, and provide medical care and grooming as necessary.

6. Standards of Medical Care: Provide baseline veterinarian care and medical treatment for animals within financial limits that are agreed upon between Provider and City per animal.
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Medical care above the agreed upon limit are the financial responsibility of the provider, unless otherwise identified in the scope of the agreement, through mutual agreement of both the provider and the city.

Provide for the administration and operation of a spay and neuter for all cats, dogs, and rabbits prior to being fostered or adopted into the community and follow guidelines provided by Guidelines for Standards of Care in Animal Shelters - Second Edition December 2022 by the Association of Shelter Veterinarians, as recommended by the Humane Society of the U.S. (HSUS).
(http://jsmcah.org/index.php/jasv/article/view/42/19)
In addition to the vaccinations listed in the Guidelines for Standards of Care in Animal Shelters, administer preventative medicine to treat heart worm and kennel cough.

7. Return to Owner: It shall be the Provider's responsibility to make every available effort to identify and promptly attempt to notify the owner of any animal taken into custody, working in conjunction with the City of Costa Mesa Animal Control when needed. Provider will provide food, water, shelter, exercise and medical care to each animal for a minimum of 6 days (not including day of impound) to give the owner an opportunity to claim the animal before transferring to the Animal Service Programs.

8. Scanning for Microchips: Every effort will be made to locate the owner of animals. The Shelter will be equipped with universal scanner/s in order to check for the presence of a microchip, to facilitate return of animals to owners.

9. Owner Redemption: Rabies vaccinations administered unless proof of current rabies inoculation is furnished at the time of release. Provider is to recommend microchipping to animal owner prior to the redemption of their pet.

10. Website Presence: Provider will work with the City on the City's internet website page/presence, which will be updated daily to assist in reunion of animal owners with their pets,(i.e. "Impound Page"). Provider will provide photos and details of stray animals coming directly into the Shelter facility, within a maximum of 24 hours from the time the stray animal enters the Shelter facility. Internet presence for strays is required in accordance with the requirements of sections 32001 (a) and (b) of the California Food and Agriculture Code. Provider will also include a link to the City's impounded animals page (www.costamesaca.gov/government/departmentsand- divisions/police/animal-control/impounded-animals) on Provider's website.

11. Quarantine and Isolation: Provide medical quarantine and behavior isolation for the duration of the holding period for a minimum of 7 days (not including day of impound) or as deemed by City of Costa Mesa Animal Control, and evaluation as appropriate to protect the shelter population and the people working at or visiting the facility. Animals shall be held in accordance with the requirements of sections 31108 and 31752 of the California Food and Agriculture Code.

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12. Police Holds: Provider shall ensure that animals with police holds, quarantines, or pets held in protective custody are in an isolated area not permitted within view or access of the public. Quarantined animals shall be separated from other animals with proper ventilation. Upon direction from City of Costa Mesa Animal Control, provider shall hold animals longer than the above stated retention period for police purposes, such as police holds, quarantine, vicious animal investigations, nuisance enforcement, or cruelty investigations.

13. Animal Surrender: Provide and collect an Animal Surrender Form from surrendering owner, including if the animal has a bite history.

14. Evaluation and Humane Euthanasia: Provide the evaluation and humane euthanasia of dangerous or diseased animals as determined and approved by a veterinarian or City of Costa Mesa Animal Control.

15. Disposal of Animals: The Provider will be responsible for any costs associated with the disposal of animals. Provider will comply with applicable state and federal law regarding the disposal of animal remains, and will identify the manner that this would be accomplished. Provide adequate storage of deceased animals in an area out of view from the general public.

16. Unclaimed Deceased Animals: Provider shall be responsible for the humane disposal of unclaimed deceased animals after holding such animals for the holding period agreed upon by City and Provider, unless the condition of an animal requires immediate disposal. City of Costa Mesa Animal Control will make reasonable efforts to locate the owners of deceased animals during such holding period. Provider shall under no circumstances sell unclaimed deceased animals for purposes of medical research or other activities which may harm them without the prior written consent of City of Costa Mesa Animal Control.

17. Euthanasia of Animals: The Bidder should identify the manner that would be utilized to accomplish a minimal/low kill facility. (Euthanasia policy)

18. Adaptability: Evaluate, and coordinate to determine each animal's suitability for fostering and/or adoption and facilitate adoptions.

19. Animal Service Programs: Provide and partner with City to implement animal service programs which include:

a. Spay/ Neuter Program: The City recognizes that long-term solutions to excess animal populations involve the spaying and neutering of animals.

The proposal should include a methodology for the implementation of such a program and identify the cost for such, should the City elect to 137

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participate in this option. (aka -TNR Program) In addition, the Provider shall honor spay or neuter vouchers, issued by the City and distributed to low income families in Costa Mesa.

b. Vaccination Clinics: Participate in at least two (2) low-cost vaccination clinics hosted by City by providing low-cost vaccinations, fees mutually agreed upon by Provider and City. Provider shall receive no additional compensation from City for such participation.

20. Controlled Substance for Animal Control: Upon proof of certified controlled substance training by the City of Costa Mesa Animal Control personnel, Provider will provide City of Costa Mesa Animal Control with controlled substances necessary to perform field captures and euthanasia. The controlled substances will be charged to the City at the same cost paid by veterinarians. a. Telazol (class Ill drug, l00mg/ml concentrate, used primarily in dog capture)
b. Ketamine (class Ill drug, l00mg/ml for cats and subhuman primates and some dog captures)
c. Sodium Pentobarbital (class II drug, 250 ml bottle, for euthanasia only) (Check with Animal Control if controlled substances listed are accurate) C. Fees -Provider and City shall agree upon fees for impoundment, feeding, care, veterinarian services, and boarding of animals. Said fees shall be charged to members of the public whose animals are subject to this Agreement.

1. Impound/Surrender Fee: Provider shall collect impound or surrender fee(s), except criminal penalties or civil infraction penalties paid through Municipal Court, which shall be remitted to the City.

When charging subsequent impound fees, the 12-month period used to determine the fee charged for subsequent impounds shall be the 12 months subsequent to the current impoundment. Provider shall charge Costa Mesa residents redeeming animals from impound an impound fee of forty dollars ($40) for the first impoundment, sixty dollars ($60) for the second impoundment within a 12-month period, and ninety dollars ($90) for the third and subsequent impoundments within a 12-month period. Non- spayed or Un-neutered Fee: Provider shall collect a mandatory non-spayed or un- neutered fee in accordance with Food and Agriculture Code sections 30804.7 and 31751.7 and City Ordinance section 8.08.02, which shall be remitted to the City.

2. Animal License Registration: Provider shall administer animal license registration for no licensed dogs being redeemed by owner, as required by City Ordinance section 3-106. Animal license registration fees are processed directly into the City's pet licensing portal.

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Notes:

Provide vaccinations:

Cats: FVRCP {Feline viral rhinotracheitis (FHV-1), calicivirus (FCV), panleukopenia {FPV)), rabies, dewormer
Dogs: DHPP (Distemper, hepatitis, parainfluenza, and canine parvovirus) OR DA2PP (distemper, adenovirus 2, parvovirus, and parainfluenza virus) and Bordetella bronchiseptica, rabies, dewormer
Puppies & Kittens: See vaccination schedule below, plus heart worm and kennel cough vaccinations
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APPENDIX B

SAMPLE

PROFESSIONAL SERVICE AGREEMENT

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CITY OF COSTA MESA

PROFESSIONAL SERVICES AGREEMENT
WITH
_____________________________

THIS AGREEMENT is made and entered into this __ day of _____, 20__ (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and ___________, a [state] [type of corporation] (“Consultant”).

W I T N E S S E T H :

A. WHEREAS, City proposes to utilize the services of Consultant as an independent contractor to __________________, as more fully described herein; and

B. WHEREAS, 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. WHEREAS, City and Consultant desire to contract for the specific services described in Exhibit “A” (the “Project”) and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and

D. WHEREAS, no official or employee of City has a financial 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 c onsideration 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 professional services described in the City’s Request for Proposal (“RFP”), attached hereto as Exhibit “A,” and Consultant’s Response to City’s RFP (the “Response”) attached hereto as Exhibit “B,” both incorporated herein by this reference.

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 car e, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance 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 141

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work to the complete satisfaction of the City and withi n the hereinafter specified.

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 matters of concern;

(b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or

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 employ ment of persons because of thei r race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code.

1.6. Non-Exclusive Agreement. Con sultant 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.

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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 “C,” attached hereto and made a part of this Agreement (the “Fee Schedule”). Consultant’s total compensation shall not exceed _______ Dollars ($ _____.00).

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 or the Project Manager for this Project, 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 se rvices 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 for a period of three (3) years from the Effective Date.

3.0. TIME OF PERFORMANCE

3.1. Commencement and Completion of Work. The professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the Project Schedule approved by City as set forth in Exhibit “D,” attached hereto and incorporated herein by this reference. 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, material shortages, 143

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compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party.

4.0. TERM AND TERMINATION

4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of ______ months, ending on __________, 20__, unless previously terminated as provided herein or as otherwise agreed to in writing by the 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.

4.4. 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, 144

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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 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' co mpensation 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 of ficers, 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 c ontractual 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 ye ars 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.

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(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.

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. The certificates of insurance shall be attached hereto as Exhibit “E” and incorporated herein by this reference.

5.5. Non-limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agre ement, 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 matt er referenced herein and supersedes any and all other prior writings and oral negotia tions. 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.

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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.

6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile 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; b) at the time of transmission if such communication is sent by facsimil e; and c) 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.

IF TO CONSULTANT: IF TO CITY:

_________________
_________________
_________________
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Tel: _________________ Tel: (714) 754-
Fax: _________________ Fax: (714) 754-
Attn: _________________ Attn: _________________

Provide courtesy copy to:

City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Attn: Finance Department

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 “F” and incorporated herein by reference. 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 147

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opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing pa rty 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 with out 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 as signment, 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 obli gation 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, office rs, 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 Con sultant, 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, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or wheneve r 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 or employees are in any manner agents or employees of City. Consultant shall secure, at 148

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its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insuranc e 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 inde mnify 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 fr om 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 Consultan t’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 contribu tion 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 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 individ ual 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 Consu ltant. 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, 149

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information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other Project related items a s 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 t his 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 a s 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 t o, 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 sub -consultants 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 sub-consultants 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.

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 p revail. 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 150

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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. 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.

6.21. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to mo dify, 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.

6.22. Construction. The parties have participated jointly in the negotiation and drafting of this

Agreement. 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.

6.23. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.

6.24. 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 c ompliance.

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.

6.25. 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 f oregoing, 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, then both parties a gree to substitute such provision(s) through good faith negotiations.

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6.26. 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.

6.27. 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.

CITY OF COSTA MESA,
A municipal corporation

__________________________ Date: __________________________ [Mayor or City Manager]

CONSULTANT

__________________________ Date: __________________________ Signature

__________________________________
Name and Title

__________________________________
Social Security or Taxpayer ID Number

ATTEST:

________________________________
City Clerk of the City of Costa Mesa

APPROVED AS TO FORM:

______________________________ Date: _______________________ City Attorney

APPROVED AS TO INSURANCE:

____________________________________ Date: ________________________ Risk Management
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APPROVED AS TO CONTENT:
____________________________________ Date: ________________________ Project Manager

DEPARTMENTAL APPROVAL

____________________________________ Date: ________________________ Department Director

APPROVED AS TO PURCHASING:

_________________________________ Date: _______________________ Finance Director

APPENDIX C
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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. 23-22 Animal Care Shelter Services

TYPE OF APPLICANT:  NEW  CURRENT VENDOR
Legal Contractual Name of Corporation: ______________________________________ Contact Person for Agreement: _________ ____________________________________ Title: ______________________________ E-Mail Address: ______________________ Business Telephone: _________________________ Business Fax: ________________ Corporate Mailing Address: ________________________________________________ City, State and Zip Code: __________________________________________________ Contact Person for Proposals: _________ _____________________________________ Title: ______________________________ E-Mail Address: ______________________ Business Telephone: _________________________ 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
___________________________________ ________________ ___________________

___________________________________ ________________ ___________________

Federal Tax Identification Number: __________________________________________

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

City of Costa Mesa Business License Expiration Date: ________________________________

EX PARTE COMMUNICATIONS CERTIFICATION
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Please indicate by signing below one of the following two statements. Only sign one statement.

I certify that Proposer and Proposer’s representatives have not had any communication with a City Councilmember concerning informal RFP No. 23-22 Animal Care Shelter Services at any time after June 8, 2023.

________________________________ Date: _______________________ Signature

________________________________
Print

I certify that Proposer or Proposer’s representatives have communicated after June 8, 2023 with a City Councilmember concerning informal RFP No. 23-22 Animal Care Shelter Services . A copy of all such communications is attached to this form for public distribution.

________________________________ Date: _______________________ Signature

________________________________
Print

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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, remo ved, 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.

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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."

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COMPANY PROFILE & REFERENCES

Company Legal Name:

Company Legal Status (corporation, partnership, sole proprietor etc.):

Active licenses issued by the California State Contractor’s License Board:

Business Address:

Website Address:

Telephone Number: Facsimile Number:

Email Address:

Length of time the firm has been in business:

Length of time at current location:

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:

Regular Business Hours:

Regular holidays and hours when business is closed:

Contact person in reference to this solicitation:

Telephone Number: Facsimile Number:

Email Address:

Contact person for accounts payable:

Telephone Number: Facsimile Number:

Email Address:
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Name of Project Manager:

Telephone Number: Facsimile Number:

Email Address:

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:

Contact Name:

Contract Amount:

Email:

Address:

Brief Contract Description:

Company Name:

Telephone Number:

Contact Name:

Contract Amount:

Email:

Address:

Brief Contract Description:

Company Name:
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Telephone Number:

Contact Name:

Contract Amount:

Email:

Address:

Brief Contract Description:

Company Name:

Telephone Number:

Contact Name:

Contract Amount:

Email:

Address:

Brief Contract Description:

Company Name:

Telephone Number:

Contact Name:

Contract Amount:

Email:

Address:

Brief Contract Description:

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BIDDER/APPLICANT/CONTRACTOR CAMPAIGN CONTRIBUTION

DISCLOSURE FORM
Proposer/Consultant/Applicant is required to identify any campaign contribution or cumulative contributions greater than $249 to any city council member in the twelve months prior to submitting an application, proposal, statement of qualifications or bid requiring approval by the City Council.

Date

Name of Donor
Company/Business
Affiliation
Name of
Recipient

Amount

Except as described above, I/we have not made any campaign contribution in the amount of $250 or more to any Costa Mesa City Council Member in the twelve months preceding this Application/Proposal.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Bidder/Applicant/Proposer

Date

Cost Proposal
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Task Description Total Estimate

A. *Fee Description*
TOTAL

All originals of plans, field notes, data and calculations, reports, electronic files, etc., will be turned over to the City upon completion of work. Ten percent (10%) of the total contract fee will be withheld under final project documents are submitted to the City. 165
Attachment 3
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Attachment 4
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191

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-128 Meeting Date: 4/16/2024
TITLE:

SECOND READING OF ORDINANCES TO AMEND TITLE 13 (PLANNING, ZONING AND DEVELOPMENT) AND TITLE 9 (LICENSES AND BUSINESS REGULATIONS) OF THE COSTA MESA MUNICIPAL CODE TO MODIFY THE CITY’SRETAIL CANNABIS PROVISIONS AND FIND

THIS PROJECT TO BE CATEGORICALLY EXEMPT FROM CEQA
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES

DEPARTMENT/PLANNING DIVISION
PRESENTED BY: MICHELLE HALLIGAN, SENIOR PLANNER
CONTACT INFORMATION: MICHELLE HALLIGAN, SENIOR PLANNER, 714-754-5608 RECOMMENDATION:

Staff recommends the City Council:

1. Find that the project is categorically exempt from the California Environmental Quality Act (CEQA), Section 15061(b)(3) (“General Rule”).

Page 1 of 1 ends

192

Page 1 of 3 ends

City of Costa Mesa
Agenda Report

77 Fair Drive
Costa Mesa, CA
92626
Item #: 24-128 Meeting Date: 04/16/2024

TITLE: SECOND READING AND ADOPTION OF ORDINANCES TO AMEND TITLE 13 (PLANNING, ZONING AND DEVELOPMENT) AND TITLE 9 (L ICENSES AND BUSINESS REGULATIONS) OF THE COSTA MESA MUNICIPAL CODE TO MODIFY THE CITY’S RETAIL CANNABIS PROVISIONS

AND FIND THIS PROJECT TO BE CATEGORICALLY EXEMPT FROM CEQA

DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING

DIVISION

PRESENTED BY: MICHELLE HALLIGAN, SENIOR PLANNER

CONTACT INFORMATION: MICHELLE HALLIGAN, SENIOR PLANNER, 714-754-5608

RECOMMENDATION:

Staff recommends the City Council:

1. Find that the project is categorically exempt from the California Environmental Quality Act (CEQA), Section 15061(b)(3) (“General Rule”).

BACKGROUND:

At the March 19, 2024 , City Council meeting, the City Council considered the Planning Commission’s recommendations, as well as other issues raised by members of the cannabis industry and the public.

The City Council passed nine motions for staff to modify and return with revised Ordinances for “first reading”. The March 19, 2024, City Council report and video are linked below:

March 19, 2024 City Council Agenda Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6576096&GUID=EF1D8EE8-A9A0-4153- 82A6-19FFB634CE53

Video: https://costamesa.granicus.com/player/clip/4107?view_id=14&redirect=true

At the April 2, 2024 City Council meeting , the Council considered the follow-up draft ordinance modifications, heard public comment, and voted 6 -1 to give first reading of Ordinance 2024 -03 and Ordinance 2024 -04 without modifications, and conduct the second reading at the next regularly scheduled City Council meeting.

193

Item #: 24-128 Meeting Date: 04/02/2024

Page 2 of 3 ends

April 2, 2024 City Council Agenda Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6606557&GUID=9BC36605-449D-4FC2- B4C0-2D06126BE2B6

Video: https://costamesa.granicus.com/player/clip/4112?view_id=14&redirect=true

ANALYSIS:

On April 2, 2024, the City Council voted to give first reading to the proposed Ordinances without amending the draft Ordinances. A brief summary of the first reading amendments to the Ordinances is provided below:

 Allow processing of only pending applications which have moved past the pre-application phase, up to a cap of 35 cannabis storefronts, and, thereafter, suspend processing applications for new storefronts until such time when the number of operating licensed cannabis storefronts falls below 10;
 Increase the minimum separation between cannabis storefronts and youth centers, as defined in the CMMC, from 600 feet to 1,000 feet;
 Establish a 250 -foot minimum separation be tween cannabis storefronts and properties zoned for residential use;
 Allow the word cannabis to be used up to two times with a maximum letter height of two inches on a notice posted at cannabis storefront entrances;
 Incorporate California Code of Regulatio ns Title 4 Section 15040 (cannabis advertising and marketing) into the CMMC by reference;
 Require property owners to notify existing tenant s when a cannabis storefront is proposed to occupy an existing occupied tenant space;
 Modify the existing cannabis storefront security guard provisions to indicate that “at a minimum, all cannabis storefront operations must have one licensed security guard onsite during hours of operation, including when any cash, cannabis or cannabis products are shipped from or received at the facility . Select cannabis storefront operations, as determined by the Chief of Police or designee based on their professional opinion, must have a licensed security guard onsite for 24 hours per day”; and
 Define “financial interest holders” in cannabis businesses to reflect recent changes in State law and require all financial interest holders to obtain a City business license.

ENVIRONMENTAL DETERMINATION:

The proposed Ordinances are exempt from environmental review under the California Environ mental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (“General Rule”) in that the updates to the City’s Municipal Code provisions for retail cannabis storefronts will not have a significant impact on the environment.

194

Item #: 24-128 Meeting Date: 04/02/2024

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ALTERNATIVES:

The City Council may give second reading and adopt the Ordinance as proposed, modify the Ordinance, or not adopt the Ordinance. If the City Council chooses to make substantive modifications to the Ordinance after introduction, the modified Ordinance would need to be brought back at a future meeting for second reading and adoption.

FISCAL REVIEW:

The adoption of the proposed Ordinances is not anticipated to have any fiscal impact on the City’s budget.

LEGAL REVIEW:

The draft Ordinances and staff report have been prepared in conjunction with and reviewed by the City Attorney’s Office.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:

 Achieve long-term fiscal sustainability.

CONCLUSION:

The proposed retail cannabis ordinance amendments are intended to address issues of potential over concentration, land use compatibility, as well as improving economic and business conditions. The City Council’s proposed amendments to the retail cannabis provisions are reflected in the attached exhibits.

195
ATTACHMENT 1
Ordinance No. 2024-03 Page 1 of 4

ORDINANCE NO. 2024-03

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING TITLE 13 (PLANNING, ZONING, AND DEVELOPMENT) , CHAPTER IX (SPECIAL LAND USE REGULATIONS), ARTICLE 21 (LOCATION OF

CANNABIS DISTRIBUTING, MANUFACTURING, RESEARCH AND DEVELOPMENT,

TESTING LABORATOIES, RETAIL STORERONT AND RETAIL NONSTOREFRONT

USES) OF THE COSTA MESA MUNICIPAL CODE OF THE COSTA MESA MUNICIPAL

CODE PERTAINING TO CANNABIS STOREFRONTS

THE CITY COUNCIL OF THE CITY OF COSTA MESA , CALIFORNIA DOES HEREBY FIND AND DECLARE AS FOLLOWS:

WHEREAS, in November 2020, the Costa Mesa voters approved Measure Q; which allows for storefront and non-storefront retail cannabis uses on commercially zoned properties meeting specific location requirements, and non-storefront retail cannabis uses on Industrial Park (MP) and Planned Development Industrial (PDI) zoned properties; WHEREAS, Measure Q authorizes the City Council to adopt ordina nces to regulate cannabis retail uses;
WHEREAS, on June 15, 2021, the City Council adopted Ordinance No. 21-08 and No. 21-09 to amend Titles 9 and 13 of the Costa Mesa Municipal Code (CMMC) to establish regulations for cannabis retail uses;
WHEREAS, at the July 18, 2023 City Council meeting, a Councilmember requested that an item be agenized to discuss the potential for exploring amendments to the City’s cannabis ordinances in response to public input; WHEREAS, on September 5, 2023, the City Council dire cted the Planning Commission to explore potential amendments to the City’s cannabis retail storefront provisions specific to eight topics;
WHEREAS, the Planning Commission discussed potential amendments to the City’s cannabis retail storefront provisions at the November 27, 2023, December 11, 2023, and January 22, 2024, Planning Commission meetings; Now, therefore, THE CITY COUNCIL OF THE CITY OF COSTA MESA , CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Title 13, of the Costa Mesa Municipal Code is hereby amended to read as specified in Exhibit A, attached hereto and incorporated herein by this reference. 196
Ordinance No. 2024-03 Page 2 of 4
Section 2. Compliance with CEQA. Pursuant to the California Environmental Quality Act (CEQA), the project is exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15061(b)(3) (“General Rule”), as this action will not have any 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 affect the provisions of this Ordinance.

Section 4. Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, 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 or portion thereof, irrespective of the fact that any one or more subsections, subdivi sions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid o r unconstitutional. No portion of this Ordinance shall supersede any local, State, or Federal law, regulation, or codes dealing with life safety factors.

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

Section 6. Certification. The 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.

197
Ordinance No. 2024-03 Page 3 of 4
PASSED AND ADOPTED this ___day of _____, 2024.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

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

198
Ordinance No. 2024-03 Page 4 of 4

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. 2024-03 was duly introduced for first reading at a regular meeting of the City Council held on the ____day of _________ 2024, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the ___ day of _________, 2024, 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 ___________, 2024.

__________________________
Brenda Green, City Clerk

199
ATTACHMENT 2
Ordinance No. 2024-04 Page 1 of 4

ORDINANCE NO. 2024-04

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING TITLE 9 (LICENSES AND BUSINESS REGULATIONS) OF

THE COSTA MESA MUNICIPAL CODE PERTAINING TO CANNABIS BUSINESSES

THE CITY COUNCIL OF THE CITY OF COSTA MESA , CALIFORNIA DOES HEREBY FIND AND DECLARE AS FOLLOWS:

WHEREAS, in November 2020, the Costa Mesa voters approved Measure Q; which allows for storefront and non-storefront retail cannabis uses on commercially zoned properties meeting specific location requirements, and non-storefront retail cannabis uses on Industrial Park (MP) and Planned Development Industrial (PDI) zoned properties; WHEREAS, Measure Q authorizes the City Counci l to adopt ordinances to regulate cannabis retail uses;
WHEREAS, on June 15, 2021, the City Council adopted Ordinance No. 21-08 and No. 21-09 to amend Titles 9 and 13 of the Costa Mesa Municipal Code (CMMC) to establish regulations for cannabis retail uses;
WHEREAS, at the July 18, 2023 City Council meeting, a Councilmember requested that an item be agenized to discuss the potential for exploring amendments to the City’s cannabis ordinances in response to public input; WHEREAS, on September 5, 2023, the City Council directed the Planning Commission to explore potential amendments to the City’s cannabis retail storefront provisions specific to eight topics;
WHEREAS, the Planning Commission discussed potential amendments to the City’s cannabis retail storefront provisions at the November 27, 2023, December 11, 2023, and January 22, 2024, Planning Commission meetings; Now, therefore, THE CITY COUNCIL OF THE CITY OF COSTA MESA , CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Title 13, of the Costa Mesa Municipal Code is hereby amended to read as specified in Exhibit A, attached hereto and incorporated herein by this reference.

Section 2. Compliance with CEQA. Pursuant to the California Environmental Quality Act (CEQA), the project is exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15061(b)(3) (“General Rule”), as this action will not have any 200
Ordinance No. 2024-04 Page 2 of 4

significant effect on the environment.

Section 4. Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, 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 cou rt 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 or portion thereof, irrespective of the fact that any one or more subsections, subdivi sions, 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 5. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.

Section 6. Certification. The 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.

201
Ordinance No. 2024-04 Page 3 of 4

PASSED AND ADOPTED this ___day of _____, 2024.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

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

202
Ordinance No. 2024-04 Page 4 of 4

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. 2024-04 was duly introduced for first reading at a regular meeting of the City Council held on the ____day of _________ 2024, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the ___ day of _________, 2024, 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 ___________, 2024.

__________________________
Brenda Green, City Clerk

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ATTACHMENT 3

Page 1 of 5 ends

EXHIBIT A

CHAPTER IX. SPECIAL LAND USE REGULATIONS. ARTICLE 21. LOCATION OF

CANNABIS DISTRIBUTING, MANUFACTURING, RESEARCH AND DEVELOPMENT,

TESTING LABORATORIES, RETAIL STOREFRONT AND RETAIL NON-

STOREFRONT USES

13-200.90. Purpose.

The purpose of this article is to regulate the location of and standards for cannabis distributing facilities, manufacturing sites, research and development laboratories, testing laboratories, retail storefront and retail non-storefront uses in order to promote the health, safety, morals and general welfare of the residents and the businesses within the city by maintaining local control over the ability to authorize and regulate the location of cannabis businesses.

13-200.91. Applicability.
(a) Nothing in this article is intended, nor shall it be construed, to burden any defense to criminal prosecution under the Compassionate Use Act of 1996. (b) All the provisions of this article shall apply to all property, public and private, within the city.
(c) All the provisions of this article shall apply indoors and outdoors. (d) Unless otherwise provided herein or in this title, the terms used in this article shall have the meaning ascribed to them in Title 9, Chapter VI of this Code.

13-200.92. Cannabis distributing facilities, manufacturing sites, research and development laboratories, and testing laboratories.
(a) Cannabis distribution, manufacturing, research and development and testing is prohibited in all zone districts within the city, except for those portions of the manufacturing park (MP) and planned development industrial (PDI) zones that are located both north of South Coast Drive and west of Harbor Boulevard, excluding any portion of the South Coast Collection (the “Green Zone”).
(b) A conditional use permit shall be required and may be issued to allow the location of any business engaged in the distribution, manufacturing, researching and developing, or testing of cannabis in the MP or PDI zones pursuant to subsection (a) of this section, subject to the following conditions:
(1) The requirements of Chapter III of this title have been met; (2) The findings for granting a conditional use permit in accordance with section 13- 29(g) are met;
(3) The applicant obtains a cannabis business license pursuant to Chapter VI of Title 9 of this Code; and
(4) The use is conducted in compliance with all applicable state and local laws. (c) No person shall engage in any use set forth in this article unless that use is specifically authorized by Chapter VI of Title 9 of this Code.
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13-200.93. Cannabis retail storefront and non-storefront uses. (a) Cannabis retail storefront uses are prohibited in all zone districts within the city, except for the commercial zone districts.
(b) Cannabis retail non-storefront uses are prohibited in all zone districts within the city, except for the commercial zone districts and within the Green Zone. (c) The following planning application shall be required for cannabis retail uses:
(1) A conditional use permit shall be required for retail storefronts and non-storefronts; and
(2) An amendment to the approved conditional use permit shall be required for existing licensed cannabis distribution or manufacturing businesses to operate a retail non-storefront under the existing business and within the same licensed premise. The amendment shall be processed as a minor conditional use permit. (d) A conditional use permit may be issued to allow the location of a retail cannabis use pursuant to subsections (a) and (b) of this section, subject to the following conditions:
(1) The requirements of Chapter III of this title have been met; (2) The findings for granting conditional use permit pursuant to section 13-29(g) are met;
(3) The applicant obtains a cannabis business licensed for the location pursuant to Chapter VI of Title 9 of this Code; and
(4) The use is conducted in compliance with all applicable state and local laws, regulations, and all applicable conditional use permit conditions of approval. (e) Cannabis retail storefront location.
(1) No cannabis retail storefront use shall be located within one-thousand (1,000) feet from a K-12 school, playground, child daycare, homeless shelter, or youth center, that is in operation at the time of submission of a completed Cannabis Business Permit application, or within two hundred fifty (250) feet from a property zoned for residential use;
i. For the purpose of identifying separations from cannabis storefronts and properties zoned for residential use, properties zoned for residential use are within the following zoning districts: R1 Single-Family Residential District, R2-MD Multiple-Family Residential District, Medium Density, R2-HD Multiple-Family Residential District, High Density, R3 Multiple- Family Residential District, TC Town Center District, PDR-LD Planned Density Residential—Low Density, PDR-MD Planned Development Residential—Medium Density, PDR-HD Planned Development
Residential—High Density, and PDR-NCM Planned Development Residential—North Costa Mesa.
ii. Where a non-residential property was developed for residential or mixed residential use in accordance with an overlay, urban plan, or specific plan, and the residential development and use remains, the property would be considered residential when establishing a separation from cannabis storefronts.
iii. Where an overlay, urban plan, or specific plan allows residential development on a property zoned for residential use, but residential 205

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development has not been constructed, such property would not be considered a property zoned for residential use pursuant to this provision. iv. Where a legal nonconforming residential unit or units have been developed on a property zoned for non-residential use, the property would not be considered residential when establishing a separation from cannabis storefronts.
(2) All distances referenced in (e)(1) shall be measured in a straight line from the premises where the cannabis retail use is to be located to the closest property line of a K-12 school, playground, child daycare, homeless shelter, youth center or property zoned for residential use, or from the premises of a lawfully existing cannabis retail storefront use.
i. For purposes of this sub-sub-section, the property line of a playground shall be a thirty (30) foot radius from the exterior physical boundaries of the playground equipment area;
(3) All distances shall be measured without regard to the boundaries of the city and and/or intervening structures or other barriers;
(4) At a property as for which the zoning administrator, director or planning commission determines, based on a preponderance of the evidence, that unpermitted and/or illegal cannabis activity involving sales, delivery and/or dispensing has taken place at any time in the 365 days preceding an application under this Article. If an unpermitted and/or illegal cannabis activity has existed on a property no cannabis business may be permitted on that property unless 365 days has elapsed since that unpermitted and/or illegal cannabis activity has vacated the property, and the owner of that property has compensated the City for any and all expenditure of public funds and resources, including all costs, expenses (including but not limited to the salaries of peace and/or code enforcement officers) and/or attorney’s fees, incurred in investigating, abating or attempting to abate the unpermitted use or uses, whether or not any type of civil, criminal or administrative proceedings have been commenced against the property, provided however if the owner of the property is required to evict that use, the 365 days shall begin to run from the date of the filing of an unlawful detainer complaint, in which case a permit may be issued after the 365 days had elapsed and that use is no longer occupying the property. (5) A determination and/or finding under sub-section (e)(4) is subject to the appeal provisions of Chapter IX of Title 2 of this Code.
(6) The nonconforming provisions contained in Chapter X of this Code pertain to cannabis uses except as follows:
i. When an approved retail cannabis storefront conditional use permit location which lawfully met separation requirements at the time of the submission of a cannabis business permit application for the subject property does not conform to the separation and the permitted cannabis retail operation is discontinued or abandoned for more than one hundred eighty (180) days, or when a permitted cannabis use is replaced in whole or part for any period of time by any other use, the conditional use permit shall be null and void after the permittee has had an opportunity for a hearing before the issuing officer as provided in Chapter II of Title 9. 206

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(f) Retail storefront uses shall be subject to the following development standards in addition to those contained in Chapter VI of Title 9:
(1) Opaque window coverings unless required by the City for security purposes are prohibited;
(2) Permanent security or safety bars shall not be placed on any interior or exterior windows or door, unless required by the City for security purposes; (3) Directional signage to the use including but not limited to A-frame signs, sandwich board signs, banners, or flags are prohibited;
(4) No use shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of- way;
(5) Uses shall comply with the landscaping requirements set forth in Chapter VII of this title including bringing the site landscaping into conformance when feasible as determined by the director;
(6) Parking requirements shall be subject to Section 13-89; (7) The hours of operation may be established as part of the planning application subject to the final review authority and may be more restrictive than those set forth in Chapter VI of Title 9. Modification of operation hours when established as part of the planning application shall be subject to an amendment of the planning application;
(8) Drive-through services or walk-up window services are prohibited; (9) Outdoor seating or patio areas are prohibited;
(10) Special events that include live entertainment, dancing, and/or amplified music, or that are otherwise visible and/or audible from the public right-of-way, are prohibited;
(11) All cannabis products shall be secured after business hours in a locked container under 24-hour video surveillance; and
(12) For uses within two hundred (200) feet of a residential zone, all exterior lighting shall be shielded and/or directed away from residential areas. In addition, trash facilities shall be screened from view and designed and located appropriately to minimize potential noise and odor impacts to adjacent residential areas. (g) Non-storefront uses shall be subject to the following development standards in addition to those contained in Chapter VI of Title 9:
(1) Uses may operate independently from a retail storefront or as a part of, and in conjunction with, a permitted storefront, distribution, or manufacturing facility; (2) Parking requirements shall be subject to Section 13-89 and shall also include sufficient parking spaces for delivery vehicles;
(3) All deliveries to customers shall be completed by 10:00 p.m.; and (4) The general public shall not be permitted to enter the premises of a non-storefront retail use.
(h) Except as specifically authorized in this article, all other cannabis retail uses such as but not limited to lounges and cafes are expressly prohibited in the city. (i) No person shall engage in any use set forth in this article unless that use is specifically authorized by Chapter VI of Title 9 of this Code.
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(j) Any cannabis use, including but not limited to those involving sale, delivery and/or dispensing, that is not permitted, licensed and otherwise in full compliance with all applicable provisions of this Code and state and local law, shall not be considered a legally non-conforming use pursuant to, and notwithstanding any contrary provisions of, Chapter IX of this title.

13-200.94. Declaration of public nuisance.

Any use, structure, or property that is altered, enlarged, erected, established, maintained, moved, or operated contrary to the provisions of this article, is hereby declared to be unlawful and a public nuisance and may be abated by the city through civil and/or administrative proceedings by means of a restraining order, preliminary or permanent injunction, or in any other manner provided by law for the abatement of such nuisances.

13-200.95. Violations.

Violations of this article shall be punishable pursuant to the provisions of section 13-16 in addition to any other remedy available at law or in equity.

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EXHIBIT A

CHAPTER VI. CANNABIS BUSINESS PERMITS

9-481. Purpose and intent.

It is the purpose and intent of this chapter to regulate the distributing, manufacturing, processing, research and development, retail sale, testing and transporting of cannabis and cannabis -related products in a manner which is responsible, which protects the health, safety, a nd welfare of the residents of Costa Mesa, and to enforce rules and regulations consistent with state law. In part to meet these objectives, a permit shall be required in order to own and/or to operate a cannabis business within the city. Nothing in this c hapter is intended to authorize the possession, use, or provision of cannabis for purposes which violate state or federal law. The provisions of this chapter are in addition to any othe r permits, licenses, and approvals which may be required to conduct business in the city, and are in addition to any permits, licenses and approvals required under state law.

9-482. Legal authority.

Pursuant to Sections 5 and 7 of Article X I of the California Constitution and the provisions of Division 10 of the Business and Professions Code, the city is authorized to adopt ordinance s that establish standards, requirements and regulations for local licenses and permits for cannabis and cannabis-related activity.

9-482.5 Authority of the City Manager
The City Manager is authorized to make reasonable rules, policies, and procedures consistent with the intent and spirit of this Chapter as may be necessary to administer and enforce the provisions of this Chapter and any other ordinances, regulations or laws relating to and affecting the permitting and operations of commercial cannabis businesses.

The City Manager is authorized to make reasonable rules, policies, and procedures consistent with the intent and spirit of this Chapter concerning the applications, the application process, the information required of applicants, the applicati on procedures, and the administration and procedures to be used and followed in the application process for permit applications and requests for permit changes or modifications pursuant to this Chapter, and the implementation and administration of social equity programs.

9-483. Cannabis business activities prohibited unless specifically authorized by this chapter.

Except as specifically authorized in this chapter, the manufacture, processing, storing, laboratory testing, labeling, transporting, dispensing, furnishing, distribution, delivery, or sale of cannabis or a cannabis product is expressly prohibited in the city.

9-484. Compliance with laws.

It is the responsibility of the owners and operators of the cannabis business to ensure that it is, at all times, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder.

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9-485. Definitions.

Unless otherwise defined in this chapter or in chapte r I of Title 13, the words used in this chapter shall have the same definitions ascribed to them in Division 10 of the Business and Professions Code or the definitions of the Health and Safety Code applicable to school and child daycare. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.

Cannabis means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from marijuana. “Cannabis” also means marijuana as defined by section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. “Cannabis” does not include the mature stalks of th e plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, “cannabis” does not mean industrial hemp as that term is defined by section 81000 of the California Food and Agricultural Code or section 11018.5 of the California Health and Safety Code.

Cannabis business permit means a regulatory permit issued by the city pursuant to this chapter to a cannabis business, and is required before any cannabis activity may be conducted in the city.

Cannabis goods means cannabis and/or cannabis products.

Cannabis product or manufactured cannabis product or product means cannabis that has undergone a process whereby the plant material is transformed into a concentrate for internal consumption or topical application, including, but not limited to, concentrated cannab is, an edible cannabis product, or a topical cannabis product containing cannabis or concentrated cannabis in combination with other ingredients.

Caregiver or primary caregiver has the same meaning as that term is defined in section 11362.7 of the California Health and Safety Code.

City manager shall mean the city manager of the city or designee.

Director shall mean the city’s Director of the Economic and Development Services department or designee, unless otherwise specified.

Dispensing means any activity involving the retail sale of cannabis or cannabis products.

Distributor means a person or entity th at engages in distribution. The direct and/or retail sale, distribution, or furnishing of any cannabis or cannabis product to any consumer or end user by a distributor is expressly prohibited, unless otherwise authorized pursuant to this chapter.

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Edible cannabis product means manufactured cannabis that is intended to be used, in whole or in part, for oral human consumption including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the California Food and Agricultural Code. An edible cannabis product is not considered food as defined by California Health and Safety Code Section 109935 or a drug as defined by California Health and Safety Code Section 109925.

Financial interest holder shall have the same meaning as set forth in Title 4, Division 19, section 15004 of the California Code of Regulations.

Free sample means any amount of cannabis goods provided to a patron of a business or member of the public without cost or payment or exchan ge for any other thing of value.

Green Zone means those portions of the manufacturing park (MP) and planned development industrial (PDI) zones that are located both north of South Coast Drive and west of Harbor Boulevard, excluding any portion of the South Coast Collection.

Homeless shelter has the same meaning as emergency shelter.

Labor Peace Agreement has the same meaning set forth in Business and Professions Code section 26001.

Manufacturing site means a location where cannabis products are manufactured.

Marijuana means “cannabis,” as that term is defined in this chapter.

Marijuana activity and/or cannabis activity includes manufacture, processing, laboratory testing, research and development, transporting, delivery, dispensing, distribution, furnishing, giving away or sale, or arranging and/or directing any of the foregoing, or any other activity involving cannabis or a cannabis product.

Marijuana business and/or cannabis business means any business or operation which engages in any marijuana or cannabis activity.

Marijuana business permit has the same meaning as cannabis business permit.

Patient or qualified patient shall have the same definition as California Health and Safety Code section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health and Safety Code section 11362.5. For purposes of this chapter, a qualified patient shall include a person with an identification card as that t erm is defined by California Health and Safety Code section 11362.7 et seq.

Person with an identification card shall have the meaning given that term by California Health and Safety Code section 11362.7.

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Playground shall mean and include both a public playground located in a city park and a private playground. A private playground shall mean a privately-owned outdoor recreation area, including a tot lot, containing playground equipment or amenities such as swings, slides, sandboxes, or similar installations designed for use by minors and serving either the general public or residents of a development where the playground equipment is located, including residential subdivisions and/or developments such as apartments, townhomes and/or condominium complexes, mobile home parks or other similar residential uses, as well as playground equipment serving registered guests at hotels and motels. A private playground does not include a playground or playground equipment installed at a single -family residence, or play equipment that is part of a privately -owned commercial business or place of worship, or a playground that is access -controlled during operating hours or does not have direct access from the public right -of-way. A private playground does not include areas designated for use as a playing field or court, pool, or skate facility.

Premises shall have the same meaning as set forth in Business and Professions Code section 26001 sub-section (ap) for purposes of measuring the required distance from retail storefront uses to those uses set forth in section 13-200.93(e)(1).

Processing and processor shall have the same meaning as manufacturing and manufacturer, respectively.

Property shall mean any single development lot that has been subdivided bearing its own assessor’s parcel number or with an approved subdivision map or condominium map unless the context clearly indicates a different meaning.

Research and development laboratory means a facility, entity, or site in the cit y that performs research into and/or the development of cannabis or cannabis products, where cannabis in any amount is located on-site, and that is both of the following:

1. Accredited by an accrediting body that is independent of all other persons involved in the cannabis industry in the state.

2. Registered with the State Department of Public Health, and is owned and operated by a person issued a valid cannabis business permit for laboratory testing from the city and is currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis business and cannabis activities.

South Coast Collection or SoCo means all properties located at 3303 through 3323, inclusive, Hyland Avenue, in the City of Costa Mesa, commonly known as “SoCo” or “SOCO.”

State means the State of California, including any of its departments, divisions, and/or bureaus.

State license means a permit or license issued by the state to engage in cannabis activity.

Youth center means any public or private facility that is primarily used to host recreation or social activities for minors, specifically private youth membership organizations or clubs, social services teenage club facilities, video arcades where ten (10) or more games or game mac hines or devices 212

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are operated or similar amusement park facilities, but does not include dance studios, tutoring, martial arts studios or similar type of uses.

9-486. Type of authorized cannabis businesses permitted. (a) One (1) or more of the following types of adult (A -license) and/or medical (M -license) cannabis business may be permitted to operate within the city:

1. Cannabis distributor (includes license classification type 11);

2. Cannabis manufacturer (includes license classification type 6 and 7);

3. Cannabis testing laboratory (includes license classification type 8);

4. Cannabis retail - storefront (includes license classification type 10);

5. Cannabis retail - non-storefront (includes license classification type 9); and

6. Cannabis research and development laboratory.

(b) Businesses permitted pursuant to this chapter shall not engage in the retail sale, delivery or dispensing of cannabis, cannabis product, hemp or hemp products unless expressly permitted to do so pursuant to the terms of their cannabis business permit. (c) No person may engage in any type of cannabis business that is not specifically authorized pursuant to this section and this code, including, but not limited to, cultivating cannabis. (d) The City Council may by resolution limit and/or restrict the number of cannabis retail permits available for issuance and/or renewal.

9-487. Cannabis business permit required to engage in a cannabis business.

No person may engage in any cannabis business or in any cannabis activity within the city including manufacturing, processing, lab oratory testing, transporting, dispensing, distribution, or sale of cannabis or a cannabis product unless the person: 1) has a valid cannabis business permit from the city that authorizes the specific business and activity at specific location; 2) has a va lid business license issued to the entity that is listed on the cannabis business permit; and 3) is currently in compliance with all other applicable state and local laws and regulations pertaining to the cannabis business and cannabis activity. All cannabis business permits shall include a copy of a written notice to any existing tenant of the proposed business premises from the owner of the property of the intent to file a cannabis business permit application for those premises.

9-487.3. Disclosure of Financial Interest Holders Required.

Any and all financial interest holders must be disclosed to the City as part of any application for issuance and/or renewal of a cannabis business permit.

9-487.5. Change in business name.

No operator shall operate, conduct, manage, engage in, or carry on a cannabis business under any name other than the business name specified in the permit and/or any “doing business as” or “DBA”, or “fictitious business name” or “FBN”, provided in the permit application and/or business license.

Proof of the “DBA” or “FBN” filing with the County Clerk Recorder shall be required. Any approved changes and/or updates to the permit may require payment of fees as set by resolution of the City Council.

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9-488. Term of permit-Fees.
(a) A cannabis business permit shall be valid for two (2) years from the date of issue, unless otherwise suspended or revoked, and may be renewe d bi-annually thereafter, provided the permittee and application for renewal are in compliance with all of the provisions of this chapter as well as all administrative regulations adopted pursuant to section 9-497. (b) Cannabis business permit application fees and renewal fees shall be established by resolution of the city council as may be amended from time to time. Failure to timely submit fees and/or comply with the administrative regulations governing applications an d/or renewals shall be grounds for denial of application and/or renewal.

9-489. Effect of state license suspension, revocation, or termination.

Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the city, until the State of California, or its respective departments or divisions, reinstates or reissues the State license within 90 days. Should the state license remain suspended for 90 days or longer, any permit issued pursuant to this chapter shall expire and be of no further force and effect. Should the State of California, or any of its departme nts or divisions, revoke or terminate the license of a cannabis business, such revocation or termination shall also revoke or terminate the ability of a business permitted pursuant to this chapter including the persons and entities set forth in section 9-490(c) to operate any cannabis business within the city for a period of five years from the date of such revocation or termination.

9-490. Denial and revocation.
(a) Revocation. A cannabis business permit may be revoked and/or suspended pursuant to the procedures of section 9 -120, and/or deemed abandoned or forfeited pursuant to the procedures of section 9 -495, for failing to comply with the terms of the permit, the applicable provisions of this chapter, this Code, city regulations, state law or regulations and/or any conditions of any other permit issued pursuant to this Code. (b) Denial. An application for a cannabis business permit may be denied where it fails to provide all required information, documentation and/or fees and/or where it does not or would not be able to comply with the applicable provisions of this chapter, this Code, city regulations and/or state law or regulations and/or where the applicant is otherwise ineligible for such permit.
(c) Effect of revocation and denial. Whenever an application for a permit is denied, no other similar application by such applicant or permittee will be considered for a period of one (1) year from the date of the denial of an application. Whenever a permit has been revoked, no other similar application by such permittee shall be considered for a period of five (5) years from either the date the notice of the permit revocation was mailed or the date of the final decision of the city to revoke the permit, whichever is later. The prohibitions of this subsection shall also apply to the following:

1. Any individual whose permit was revoked or whose application was denied who later becomes a director or officer of a corporation, profit or nonprofit, or a member 214

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of a partnership or a person owning or possessing any portion of the shares of a corporation seeking to obtain a new permit.

2. A corporation, profit or nonprofit, whose permit was revoked, or application was denied, to any of its directors or officers or to any person who owned any portion of its shares, who attempts by way of a new corporation or using their individual names or becoming a member of a partnership or a director or officer or a person owning or possessing any por tion of the shares in another corporation seeking to obtain a new permit.
(d) Ineligibility. In addition to any other law, no person or entity shall be eligible for and/or receive a cannabis business permit if that person or entity, or any director or officer of that entity or a person who owned any portion of that entity’s shares, or any financial interest holder of that entity, engaged or engages in unpermitted and/or illegal cannab is activity involving sales, delivery and/or dispensing in the city, or had an ownership interest in any property set forth in section 13 -200.93(e)(5), in the five (5) years preceding an application under this chapter or during the application process. A determination of ineligibility under this sub -section (d) may be made by the City Manager and shall be based on the preponderance of the evidence . This prohibition shall not apply to a natural person who would otherwise be ineligible based on a criminal co nviction that has been dismissed, withdrawn, expunged or set aside or is otherwise exempted pursuant to sections 9 - 495(g)(10) and/or 9-496(b).

9-491. Appeals.

Notwithstanding any other provision of this code, only a decision by the city manager to suspend, revoke or deny a cannabis business permit under this chapter shall be subject to appeal, which shall be governed by the procedures set forth in Chapter IX of Title 2 of this code.

9-492. Prohibition on transfer of cannabis business permits.

In the event a permit holding cannabis business sells or transfers the business to a new owner and/or operates the business under a new entity and/or name not listed on the permit, the new owner must obtain a new cannabis business permit and business license prior to commencing or continuing operations. A cannabis business shall be deemed to have tran sferred to a new owner within the meaning of this section if person(s) or entities with controlling interest at the time the permit was first issued cease(s) at any time to possess controlling ownership interest and/or hold an ownership interest of less than fifty-one (51) percent.

9-493. City business license required.

Prior to commencing operations, a cannabis business and any financial interest holder therein shall each separately obtain and thereafter maintain a valid city business license pursuant to Chapter I of this title. Failure to hold a valid business license at all times shall render the cannabis business permit invalid.

9-494. Conditional use permit required.

No cannabis business permit shall be issued, and no person shall conduct a cannabis business unless a conditional use permit has been issued therefore pursuant to the provisions of Title 13, Chapter IX, Article 21 of this Code. Approval of a conditional use permit shall not waive any other 215

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requirements of State or local law or regulation, including, but not limited, to the requirement to obtain a building permit, certif icate of occupancy, cannabis business permit and/or city business license.

9.494.5 Maximum cannabis retail storefront cannabis business permits.

A maximum of thirty -five (35) storefront retail cannabis business permits may be issued by the City; provided, however, that City will only process applications which have passed the pre - application phase as of the effective date of this ordinance . Thereafter, no further storefront retail cannabis business permits for new locations may be issued by the City until the total number of operating licensed storefront retail establishments fall below ten (10), after which time the City may issue further cannabis business permits not to exceed ten (10) total active storefront retail cannabis business permits operating at one time.

9-495. Operating requirements for all cannabis businesses permitted under this chapter. (a) Records and recordkeeping.

1. Each owner and operator of a cannabis business shall maintain accurate books and records, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than a quarterly basis or at any time upon reasonable request of the city, each cannabis business shall file a sworn statement detailing the number of sales by the cannabis business during the previous three (3) month period (or shorter period based upon the timing of the reques t), provided on a per -month basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid.

Each owner and operator shall keep and preserve for a period of no less than seven (7) years, all records as m ay be necessary to determine the amount of such tax the operator may have been liable to collect and remit to the city.

2. Each owner and operator of a cannabis business shall maintain a current register of the names and the contact information (includ ing the name, address, telephone number, a copy of that person’s government issued identification, and email address) of anyone owning or holding an interest in the cannabis business, and separately of all the officers, managers, employees, agents and volu nteers currently employed or otherwise engaged by the cannabis business. The register required by this paragraph shall be provided to the city manager upon a reasonable request.

3. All cannabis businesses shall maintain an inventory control and reporti ng system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the production or manufacturing, laboratory testing and distribution processes.

4. Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA), each cannabis business shall allow city officials to have access to the business’s books, records, accounts, together with any other data or documents relevant to its permitted cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents 216

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will be produced no later than twenty -four (24) hours after receipt of the city’s request, unless otherwise stipulated by the city.

5. Each owner and operator of a cannabis business shall disclose to the City the names and addresses of each and every financial interest holder of that business within ten (10) calendar days of that person becoming a financial interest holder of the cannabis business, and thereafter shall notify the City within ten (10) business days if that person or entity ceases to be a financial interest holder. Each financial interest holder shall obtain a business license pursuant to section 9 -493 within thirty (30) days of becoming a financial interest holder of that business.

(b) Security measures.

1. A permitted cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the cannabis business. These security measures shall include:
a. Establishing limited access areas accessible only to authorized cannabis business personnel;
b. All cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault, and shall be kept in a manner as to prevent diversion, theft, and loss;
c. Sensors shall be installed to detect entry and exit from all secure areas; d. Having a professionally installed, maintained, and monitored alarm system; e. Any bars to be installed on the windows or the doors of the cannabis business for security purposes, if permitted by the city, shall be installed only on the interior of the building;
f. Security personnel if utilized must be licensed by the State of California Bureau of Security and Investigative Services Personnel, shall comply with the requirements of California Business and Professions Code Chapte rs 11.4 and 11.5 of Division 3, and have a valid business license from the city; and g. Each cannabis business shall have the capability to remain secure and operational during a power outage and shall ensure that all access doors are not solely contro lled by an electronic access panel to ensure that locks are not released during a power outage.

2. Each cannabis business shall identify a designated security representative/liaison to the city, who shall be reasonably available to meet with the city manag er regarding any security related measures or and operational issues.

3. A cannabis business shall notify the city manager within twenty-four (24) hours after discovering any of the following:
a. Significant discrepancies identified during inventory, as set forth in the city’s administrative regulations;
b. Diversion, theft, loss, or any criminal activity involving the cannabis business or any agent or employee of the cannabis business; or
c. The loss or unauthorized alteration of records rel ated to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the cannabis business and/or cannabis sales.

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(c) Restriction on alcohol sales. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on or about the premises of the cannabis business. (d) Compliance with laws. It is the responsibility of the owners and operators of the cannabis business to ensure that it is, at all times, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder. Nothing in this chapter shall be construed as authorizing any actions which violate state law or local law with respect to the operation of a cannabis business or any site -specific, additional operating procedures or requirements which may be imposed as conditions of approval of the location of the cannabis business.
(e) Taxes. All cannabis businesses authorized to operate under this chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each cannabis business shall cooperate with the city with respect to any reasonable request to audit the cannabis business’s books and records for the purpose of verifying compliance with this section, including, but not limited to, a verification of the amount of taxes required to be paid during any period. (f) Insurance. Permittee shall obtain and maintain at all times during the term of the permit comprehensive general liability insurance and comprehensive automotive liability insurance protecting the permittee in an amount of not less than one million dollars ($1,000,000.00) per occurrence, combined single limit, including bodily injury and property damage and not less than one million dollars ($1,000,000.00) aggregate for each personal injury liability, products-completed operations and each accident, issued by an insurance provider rated at least A -:VIII in A.M. Best and Company’s Insur ance Guide and either admitted and authorized to do business in California or is listed on the California Department of Insurance’s List of Approved Surplus Line Insurers.

(g) Miscellaneous operating requirements.

1. Restriction on consumption. Cannabis shall not be consumed on the premises of any cannabis businesses or elsewhere in the city other than within private residences.

2. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a cannabis business permit, or on any of the vehicles owned or used as part of the cannabis business except as otherwise expressly allowed by this chapter. No outdoor storage of cannabis or cannabis products is permitted at any time.

3. Reporting and tracking of product and of gross sales. Each cannabis business shall have in place a point-of-sale tracking system to track and report on all aspects of the cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, and gross sales (by weight and by sale). The cannabis business shall ensure that such information is compatible with the city’s record -keeping systems.

The system must have the capability to produce historical transactional data for review by the city manager.

4. All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with all state and local regulations.

5. There shall not be a physician located in or around any cannabis business at any time for the purpose of evaluating patients for the issuance of a cannabis prescription or card.
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6. Signage, notices, and advertising.
a. In addition to the requirements otherwi se set forth in this section, business identification signage for a cannabis business shall conform to the requirements of this Code, including, but not limited to, seeking the issuance of a city sign permit.
b. Each entrance to a cannabis retail business shall be visibly posted with one clear and legible notice up to twelve (12) inches by eighteen (18) inches in size, indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the cannabis business is prohibited. The word “cannabis” is allowed to be used up to two times on each of these specific notices. Letter height in the notice shall be limited to up to two (2) inches in size. All notice lettering shall be the same font and color. c. Business identification signage shall be limited to that needed for identification only.
d. The business shall at all times comply with the advertising and marketing restrictions of Business and Professions Code sections 26150 -26156, in addition to the requirements of this code.
e. Cannabis business advertising and/or marketing materials in the city shall comply with advertising, marketing and merchandising restrictions provided in California Code of Regulations sections 15040 -15041.1 and California Business and Professions Code sections 26150-26156.

7. Minors.
a. Persons under the age of twenty -one (21) years shall not be allowed on the premises of a cannabis business, except as otherwise specifically provided for by state law. It is unlawful and a violation of this chapter for any person to employ any person at or for a cannabis business who is not at least twenty -one (21) years of age.
b. The entrance to the cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the cannabis business except as specifically provided for herein.

8. Odor control. Odor control devices and techniques shall be incorporated in all cannabis businesses to ensure that odors from cannabis are not detectable off-site.

9. Display of permit and city business license. The original copy of the cannabis business permit issued by the city pursuant to this chapter and the city -issued business license shall be po sted inside the cannabis business in a conspicuous location.

10. Background check. Every owner, manager, supervisor or employee of the cannabis business must submit fingerprints and other information deemed necessary by the city manager for a background check by the Costa Mesa police department to verify that person’s criminal history. No person shall be issued a permit to operate a cannabis business who has been convicted of a felony within the past seven (7) years, unless that felony has been dismissed, withdrawn, expunged or set aside pursuant to Penal Code section 1203.4, 1000 or 1385, or who is currently on probation or parole for the sale, distribution, possession or manufacture of a controlled substance. 219

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Exempted from this prohibition is a conviction for a felony involving cannabis and/or marijuana for which the underlying cannabis or marijuana offense has subsequently been designated a misdemea nor or infraction or decriminalized pursuant to the provisions of the Control, Regulate and Tax Adult Use of Marijuana Act or federal law.

11. Loitering. The owner and/or operator of a cannabis business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises.

12. Permits and other approvals. Prior to the establishment of any cannabis business or the operation of any such business, the person intending to establish a cannabis business must fi rst obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such cannabis business intends to operate.

13. Free samples. No cannabis business shall provide or cause to be provided any free sample of cannabis goods to any person within the city.

14. A licensed retailer may only sell cannabis goods, cannabis accessories, and licensees’ branded merchandise or promotional materials.

(h) Additional operating requirements for retail sale (storefront) businesses. In addition to every other requirement of this section, other than those set forth in subsection (i) ( retail sale, non-storefront) that are expressly inapplicable, every business that sells cannabis as a storefront retailer shall comply with the following requirements:

1. All cannabis retail storefront operators are encouraged to have a licensed private security guard present at the premises twenty -four (24) hours per day. The security plan shall include at least one (1) licensed private security guard or guards who shall be present at the premises at all times during operations, deliveries of any cannabis product to or from the premises, and transportation of cash to or from the premises, exterior lighting, and continuous video monitoring and recording of the interior and exterior of the premises. Video surveillance recordings must also include video of all entryways and exits of the premises.

All video recordings shall be maintained for a minimum of ninety (90) days. At the request of the Chief of Police or designee, based upon site-specific concerns or safety incidents, at least one (1) licensed private security guard or guards may be required to be present at the premises twenty-four (24) hours per day.

2. Both the private security guard and the business personnel shall monitor the premises and the immediate vicinity of the premises to ensure that patrons immediately leave the premises and do not consume cannabis in the v icinity of the retail business or on the property or in the parking lot, and shall ensure that persons do not loiter, linger, or otherwise congregate within fifty (50) feet of the premises.

3. There shall be no on-site sales of alcohol or tobacco products, (excluding rolling papers and lighters) and no on -site consumption of food, alcohol, cannabis or tobacco by patrons.

4. Hours of operation shall be limited to: 7:00 a.m. to 10:00 p.m. daily , unless further restricted by conditions of approval. No licensed retail business shall be open to the public between the hours of 10:01 p.m. and 6:59 a.m. of any day. 220

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5. The cannabis retail business shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location:
a. Unlawful sa le, barter or distribution of cannabis is a crime and subject to a fine or arrest.
b. Loitering on and around the retail premises is prohibited by California Penal Code section 647 and that patrons must immediately leave the premises and not consume cannabis in the vicinity and/or on the property or in the parking lot.
c. A warning that patrons and/or employees may be subject to prosecution under federal cannabis laws, if applicable.
d. That the use of cannabis may impair a person’s ability to drive a motor vehicle or operate machinery and that doing so is illegal.

6. No one under the age of twenty -one (21) shall be allowed to enter the premises of a cannabis business unless the business holds a retail medical cannabis license (M - license) issued by the State.

7. No person shall be permitted to enter the premises without government -issued identification, and cannabis goods may not be provided to any person, whether by purchase, trade, gift, or otherwise, who does not possess a valid government-issued identification and who does not meet the age requirements of this Chapter.

8. Electronic age verification device required. Proof of age of every person other than employees entering the business shall be verified with an electronic age verification device, prior to entry of the ret ail area or delivery to that person. The electronic age verification device may be mobile or fixed, and shall be able to retain a log of all scans that includes the following information: date, time, and age. Said log shall be kept for a minimum of one hun dred eighty (180) business days and all records shall be made available to the City Manager upon request.

9. Point-of-sale tracking required. The business shall facilitate the sale, making available, furnishing and/or delivery of cannabis goods with a technology platform that uses point -of-sale technology to track, and database technology to record and store, the following information for each transaction involving the exchange of cannabis goods between the business and consumer:
a. The date and time of transaction.
b. The first name and employee number of the employee who processed the sale of cannabis goods on behalf of the business.
c. A list of all the cannabis goods purchased, including the quantity purchased. d. The total amount paid for the sale, including th e individual prices paid for cannabis or cannabis products purchased, and any amounts paid for taxes.

10. Cannabis retail businesses shall also record on the video surveillance system point - of-sale areas and areas where cannabis goods are displayed for sale.

11. Adequate signage shall clearly state who has inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.

12. Shipments of cannabis goods may only be accepted during regular business hours.

13. Inventory shall be secured using a lockable storage system during non -business hours.

14. No cannabis product shall be visible from the exterior of the business. 221

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15. All required labelling shall be maintained on all product, as required by State law, at all times.

16. A permitted commer cial cannabis retail business shall have one hundred eighty (180) days after permit issuance by the city to commence operations, after which the permit shall be void and of no further force and effect. A cannabis retail business shall be considered nonoper ational and abandoned after failing to report income and/or reporting no income to the city in any one quarter, ceasing to operate, losing the right to occupy the permitted premises or otherwise failing to maintain an on - going permitted business at the premises for a total of ninety (90) days in any twelve (12) month period. A notice of determination of abandonment shall be delivered to the premises of the retail business and is subject to appeal pursuant to Chapter IX of Title 2. The forgoing notwithstandi ng, a permitted commercial cannabis business may temporarily suspend operations for a period of time not to exceed ninety (90) days as may be reasonably required to affect upgrades, modifications, repairs, and/or to remedy other real property related problems, as approved in writing by the director or city manager.

17. Obtain and maintain at all times during the term of the permit the insurance required pursuant to subsection (f) of this section in the minimum amounts of two million dollars ($2,000,000.00), and enter into an agreement approved by the city attorney to defend, with attorneys of city’s choosing, indemnify, release and hold harmless the city, its city council, boards, commissions, officers and employees from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys’ fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to the permittee or the permittee’s activities. This indemnification shall include, but not be limited to, damages awarded against the city, if any, costs of suit, attorneys’ fees, and other expenses i ncurred in connection with such claim, action, or proceeding whether incurred by the permittee, city, and/or the parties initiating or bringing such proceeding, and shall not be limited by the types and/or amounts of insurance required herein;

18. For an applicant with two or more employees, provide a notarized statement that the applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement as otherwise required by Business and Professions Code section 26105.5.

(i) Additional operating requirements for retail sale (non -storefront) delivery businesses. In addition to every other requirement of this section, except only for subsection (h)(1) through (5) and (10) (retail sale, store-front), every business that sells and/or delivers cannabis as a non-store front retailer shall comply with the following requirements:

1. Commercial cannabis retail deliveries may be made only from a commercial cannabis retail business permitted by the City in complian ce with this chapter, and in compliance with all State regulations.

2. All employees who deliver cannabis shall have valid identification and a copy of the retail business' cannabis business permit and State license at all times while making deliveries.
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3. All commercial cannabis retail businesses shall maintain proof of vehicle insurance for any and all vehicles being used to transport cannabis goods as required by State law.

4. Deliveries may only take place during normal business hours of the commercial cannabis retail business.

5. During delivery, the delivery employee shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers. The delivery request documentation shall comply with State law.

6. A licensed delivery employee shall not leave the State of California while possessing cannabis products while performing his or her duties for the cannabis retailer.

7. A commercial cannabis retail business sha ll maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered, and any other information required by the State.

8. A manifest with all information required in this section shall accompany any delivery person at all times during the delivery process and delivery hours.

9. Any delivery method shall be made in compliance with State law, as amended, including use of a vehicle that has a dedicated GPS device for identifying the location of the vehicle (cell phones and tablets are not sufficient).

10. Each delivery request shall have a receipt prepared by the commercial cannabis retail business with the following information:
a. Name and address of the commercial cannabis retail business. b. The name of the employee who delivered the order.
c. The date and time the delivery request was made.
d. The complete delivery addresses.
e. A detailed description of the cannabis goods requested for delivery including the weight or volume, or any accurate measure of the amount of cannabis goods requested.
f. The total amount paid for the delivery including any fees or taxes. g. At the time of the delivery, the date and time delivery was made, and the signature of the person who received the delivery.
h. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement.
i. Inspections by an authorized City representative may be conducted anytime during regular business hours.

11. Delivery must be made to a physical address that is not on publicly owned land, a school, a day care, or a youth center.

12. The delivery employee shall not carry cannabis goods valued in excess of $5,000 at any time with no more than $3,000 of cannabis goods that are not already part of a customer order that was processed prior to leaving the premises.

13. Delivery must be made in person by a direct employee of the licensed retailer. An independent contractor, third -party courier service, or an individual employed through a staffing agency would not be considered directly employed by the licensed retailer.

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9-496. Cannabis employees.

(a) Any person who is an employee or who otherwise works within a cannabis business must be legally authorized to do so under applicable state law. (b) No cannabis business or owner thereof may employ any person who has been convicted of a felony within the past seven (7) years, unless that felony has been dismissed, withdrawn, expunged o r set aside pursuant to Penal Code section 1203.4, 1000 or 1385, or who is currently on probation or parole for the sale, distribution, possession or manufacture of a controlled substance. Exempted from this prohibition is a conviction for a felony involving cannabis and/or marijuana for which the underlying cannabis or marijuana offense has subsequently been designated a misdemeanor or infraction or decriminalized pursuant to the provisions of the Control, Regulate and Tax Adult Use of Marijuana Act or federal law. (c) All employees must wear an identification badge while on the premises of the business, in a format authorized by the city manager.

9-497. Promulgation of administrative regulations.
(a) The city manager is also authorized to establish any additional administrative rules, regulations, policies, p rocedures and/or standards governing the issuance, denial or renewal of cannabis business permits, or concerning any other subject necessary to carry out the purposes of this chapter.
(b) Regulations promulgated by the city manager shall become effective upon the date of publication. Cannabis businesses shall be required to comply with all state and local laws and regulations, including, but not limited to, any rules, regulations policies, procedures and/or standards adopted by the city manager. (c) Such administrative rules, regulations and/or standards may include establishing standards and timing for application processing, including but not limited to providing priority for existing licensees in good standing.

9-498. Inspection and enforcement.
(a) The city manager is charged with enforcing the provisions of the Costa Mesa Municipal Code, or any provision thereof, and may enter the location of a cannabis business at any time during the hours of operation without notice, and inspect the location of any cannabis business as well as any recordings and records required to be maintained pursuant to this title or under applicable provisions of state law. (b) It is unlawful for any person having responsibility for the operation of a cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the city to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a cannabis business under this chapter or under state or local law.

It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this chapter or under state or local law.

9-499. Violations.

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(a) Violations declared a public nuisance. Each and every violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance. (b) Each violation a separate offense. Each and every violation of this chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the Costa Mesa Municipal Code. Additionally, as a nuisance per se, any violation of this chapter shall be subject to injunctive relief, any permit issued pursuant to this chapter being deemed null and void, disgorgement and payment to the city of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The city may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the cannabis business or persons related to, or associated with, the cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the city manager, or the chief of poli ce, may take immediate action to temporarily suspend a cannabis business permit issued by the city, pending a hearing before the city council.
(c) Criminal penalties. Each and every violation of the provisions of this chapter may be prosecuted as a mis demeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000.00) or imprisonment in the County Jail for a period of not more than twelve (12) months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. (d) Remedies cumulative and not exclusive. The remedies provided herein are not to be construed as exclusive remedies. The city is authorized to pursue any proceedings or remedies provided by law.

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CHAPTER IX. SPECIAL LAND USE REGULATIONS. ARTICLE 21. LOCATION OF

CANNABIS DISTRIBUTING, MANUFACTURING, RESEARCH AND DEVELOPMENT,

TESTING LABORATORIES, RETAIL STOREFRONT AND RETAIL NON-

STOREFRONT USES

13-200.90. Purpose.

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iv. Where a legal nonconforming residential unit or units have been developed on a property zoned for non-residential use, the property would not be considered residential when establishing a separation from cannabis storefronts.
(2) All distances referenced in (e)(1) shall be measured in a straight line from the premises where the cannabis retail use is to be located to the closest property line of a K-12 school, playground, child daycare, homeless shelter, or youth center or property zoned for residential use, or from the premises of a lawfully existing cannabis retail storefront use.
i. For purposes of this sub-sub-section, the property line of a playground shall be a thirty (30) foot radius from the exterior physical boundaries of the playground equipment area;
(3) All distances shall be measured without regard to the boundaries of the city and and/or intervening structures or other barriers;
(4) At a property as for which the zoning administrator, director or planning commission determines, based on a preponderance of the evidence, that unpermitted and/or illegal cannabis activity involving sales, delivery and/or dispensing has taken place at any time in the 365 days preceding an application under this Article. If an unpermitted and/or illegal cannabis activity has existed on a property no cannabis business may be permitted on that property unless 365 days has elapsed since that unpermitted and/or illegal cannabis activity has vacated the property, and the owner of that property has compensated the City for any and all expenditure of public funds and resources, including all costs, expenses (including but not limited to the salaries of peace and/or code enforcement officers) and/or attorney’s fees, incurred in investigating, abating or attempting to abate the unpermitted use or uses, whether or not any type of civil, criminal or administrative proceedings have been commenced against the property, provided however if the owner of the property is required to evict that use, the 365 days shall begin to run from the date of the filing of an unlawful detainer complaint, in which case a permit may be issued after the 365 days had elapsed and that use is no longer occupying the property. (5) A determination and/or finding under sub-section (e)(4) is subject to the appeal provisions of Chapter IX of Title 2 of this Code.
(6) The nonconforming provisions contained in Chapter X of this Code pertain to cannabis uses except as follows:
i. When an approved retail cannabis storefront conditional use permit location which lawfully met separation requirements at the time of the submission of a cannabis business permit application for the subject property does not conform to the separation and the permitted cannabis retail operation is discontinued or abandoned for more than one hundred eighty (180) days, or when a permitted cannabis use is replaced in whole or part for any period of time by any other use, the conditional use permit shall be null and void after the permittee has had an opportunity for a hearing before the issuing officer as provided in Chapter II of Title 9. (f) Retail storefront uses shall be subject to the following development standards in addition to those contained in Chapter VI of Title 9:
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(1) Opaque window coverings unless required by the City for security purposes are prohibited;
(2) Permanent security or safety bars shall not be placed on any interior or exterior windows or door, unless required by the City for security purposes; (3) Directional signage to the use including but not limited to A-frame signs, sandwich board signs, banners, or flags are prohibited;
(4) No use shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of- way;
(5) Uses shall comply with the landscaping requirements set forth in Chapter VII of this title including bringing the site landscaping into conformance when feasible as determined by the director;
(6) Parking requirements shall be subject to Section 13-89; (7) The hours of operation may be established as part of the planning application subject to the final review authority and may be more restrictive than those set forth in Chapter VI of Title 9. Modification of operation hours when established as part of the planning application shall be subject to an amendment of the planning application;
(8) Drive-through services or walk-up window services are prohibited; (9) Outdoor seating or patio areas are prohibited;
(10) Special events that include live entertainment, dancing, and/or amplified music, or that are otherwise visible and/or audible from the public right-of-way, are prohibited;
(11) All cannabis products shall be secured after business hours in a locked container under 24-hour video surveillance; and
(12) For uses within two hundred (200) feet of a residential zone, all exterior lighting shall be shielded and/or directed away from residential areas. In addition, trash facilities shall be screened from view and designed and located appropriately to minimize potential noise and odor impacts to adjacent residential areas. (g) Non-storefront uses shall be subject to the following development standards in addition to those contained in Chapter VI of Title 9:
(1) Uses may operate independently from a retail storefront or as a part of, and in conjunction with, a permitted storefront, distribution, or manufacturing facility; (2) Parking requirements shall be subject to Section 13-89 and shall also include sufficient parking spaces for delivery vehicles;
(3) All deliveries to customers shall be completed by 10:00 p.m.; and (4) The general public shall not be permitted to enter the premises of a non-storefront retail use.
(h) Except as specifically authorized in this article, all other cannabis retail uses such as but not limited to lounges and cafes are expressly prohibited in the city. (i) No person shall engage in any use set forth in this article unless that use is specifically authorized by Chapter VI of Title 9 of this Code.
(j) Any cannabis use, including but not limited to those involving sale, delivery and/or dispensing, that is not permitted, licensed and otherwise in full compliance with all applicable provisions of this Code and state and local law, shall not be considered a 229

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legally non-conforming use pursuant to, and notwithstanding any contrary provisions of, Chapter IX of this title.

13-200.94. Declaration of public nuisance.

13-200.95. Violations.

Violations of this article shall be punishable pursuant to the provisions of section 13-16 in addition to any other remedy available at law or in equity.

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EXHIBIT A

CHAPTER VI. CANNABIS BUSINESS PERMITS

9-481. Purpose and intent.

9-482. Legal authority.

9-483. Cannabis business activities prohibited unless specifically authorized by this chapter.

9-484. Compliance with laws.

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9-485. Definitions.

Cannabis business permit means a regulatory permit issued by the city pursuant to this chapter to a cannabis business, and is required before any cannabis activity may be conducted in the city.

Cannabis goods means cannabis and/or cannabis products.

Caregiver or primary caregiver has the same meaning as that term is defined in section 11362.7 of the California Health and Safety Code.

City manager shall mean the city manager of the city or designee.

Director shall mean the city’s Director of the Economic and Development Services department or designee, unless otherwise specified.

Dispensing means any activity involving the retail sale of cannabis or cannabis products.

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Costa Mesa City CouncilApril 16, 2024

Costa Mesa City Council
April 16, 2024