Agenda packet — Costa Mesa City Council, May 21, 2024 (part 2 of 2)

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File #: 24-199 Meeting Date: 5/21/2024
The FY 2023 OPSG program is awarded to counties within California to help combat these criminal organizations by the California Office of Emergency Services on behalf of the Federal Emergency Management Agency (FEMA). FEMA will allocate the grant to the Riverside Sheriffs’Department, which then distributes funds to subrecipients in Riverside and Orange Counties, including the City of Costa Mesa.

In March of 2023, the Costa Mesa Police Department (CMPD) submitted a funding request for the OPSG program for the purchase of a fully outfitted marked patrol truck with mileage/maintenance and personnel operational overtime funding.

ANALYSIS:

In October 2023, the Riverside County Sheriff’sDepartment was awarded $2,900,000 for the OPSG program. CMPD’sallocation is $191,000 for the purchase of a fully outfitted marked patrol truck and operational overtime for personnel costs. The OPSG grant program period of performance is September 1, 2023 through May 31, 2026 with operational project period of March 25, 2024 through February 28, 2026.

Per the OPSG Program requirements, the funds shall be used to support the OPSG program to enhance law enforcement preparedness and operational readiness along the land and water borders of the United States.

The Costa Mesa Police Department conducts proactive tactical narcotic enforcement operations to identify and dismantle drug trafficking organizations. These traffickers are involved in the smuggling and sales of illegal narcotics and firearms. The marked patrol truck purchased through the grant will be equipped with emergency equipment and a fabricated storage area for equipment utilized to successfully search for contraband, arrest drug trafficking subjects, and transport necessary property.

This will enhance officer safety and the ability to conduct operations within the City of Costa Mesa and in surrounding cities within Orange County.

After the full purchase of the marked patrol truck, estimated at approximately $72,000 (see Attachment 3), remaining funds from the OPSG grant will be used for personnel overtime costs. The Costa Mesa Police Department’sSpecial Investigations Unit will utilize OPSG overtime funding to support operations as follows: Continue collaborative operations with our local, state, and federal partners targeting organized narcotics criminal activity within the City of Costa Mesa and throughout Orange County. The multi-agency operations will include intelligence gathering and sharing amongst OPSG teams. Identifying and dismantling drug trafficking and money laundering organizations.

ALTERNATIVES:

The City Council may elect not to accept the OPSG funds. However, this alternative is not recommended as alternative funding sources, such as the City’sGeneral Fund, would need to be used to purchase the vehicle and fund operational overtime.

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FISCAL REVIEW:

Upon approval and acceptance of the FY23 OPSG funds, revenue and expense appropriations in the amount of $191,000.00 respectively will be established. The OPSG grant program period of performance is September 1, 2023 through May 31, 2026 with operational project period of March 25, 2024 through February 28, 2026.

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal: Strengthen the Public’s Safety and Improve the Quality of Life.

CONCLUSION:

Staff recommends City Council:

1. Adopt Resolution No. 2024-XX authorizing the City Manager or designee to execute all documents necessary to accept the FY 2023 OPSG funds in the amount of $191,000.00.

2. Approve revenue and expense appropriations in the amount of $191,000.00 for the FY 2023 OPSG funds.

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-199 Meeting Date: 5/21/2024
TITLE:

ACCEPTANCE AND ALLOCATION OF THE FY 2023 OPERATION STONEGARDEN (OPSG) FUNDS
DEPARTMENT: POLICE DEPARTMENT
PRESENTED BY: JAMES BROWN, SERGEANT
CONTACT INFORMATION: JAMES BROWN - 714.754.5058
RECOMMENDATION:

Staff recommends the City Council:

1. Approve the Agreement for the FY 2023 Operation Stonegarden (OPSG) Funds and authorize the City Manager or designee to execute the agreement.

2. Adopt Resolution No. 2024-XX authorizing the acceptance of the FY 2023 OPSG funds and authorizing the City Manager or designee to accept the funds in the amount of $191,000.00.

3. Approve revenue and expense appropriations in the amount of $191,000.00 for the FY 2023 OPSG funds.

BACKGROUND:

Narcotics trafficking organizations continue to pose significant threats throughout the state of California, including the City of Costa Mesa. These organizations have become increasingly sophisticated and use counter surveillance, diversionary tactics, night vision devices, and secure communications while conducting operations. In addition, smugglers frequently utilize dangerous tactics such as failures to yield, wrong way driving, and assaults on police officers to further narcotics trafficking throughout the United States. These narcotics are plaguing local communities, including Costa Mesa, causing addiction and death to members of our community.

The mission of the Department of Homeland Security, state and local law enforcement agencies including the Costa Mesa Police Department operating in Riverside, Orange, and Los Angeles Counties is to collaborate to disrupt and degrade transnational criminal organizations, enhance land/coastal detection and interdiction capabilities in the combating of sophisticated narcotics trafficking organizations, and expanding formal communication, intelligence protocols, and nontraditional intelligence/fusion opportunities to overcome the influx of deadly drugs and effectively stop these narcotic trafficking organizations for a safer community.

The FY 2023 OPSG program is awarded to counties within California to help combat these criminal

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The FY 2023 OPSG program is awarded to counties within California to help combat these criminal organizations by the California Office of Emergency Services on behalf of the Federal Emergency Management Agency (FEMA). FEMA will allocate the grant to the Riverside Sheriffs’Department, which then distributes funds to subrecipients in Riverside and Orange Counties, including the City of Costa Mesa.

ANALYSIS:

This will enhance officer safety and the ability to conduct operations within the City of Costa Mesa and in surrounding cities within Orange County.

ALTERNATIVES:

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File #: 24-199 Meeting Date: 5/21/2024
FISCAL REVIEW:

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal: Strengthen the Public’s Safety and Improve the Quality of Life.

CONCLUSION:

Staff recommends City Council:

1. Adopt Resolution No. 2024-XX authorizing the City Manager or designee to execute all documents necessary to accept the FY 2023 OPSG funds in the amount of $191,000.00.

2. Approve revenue and expense appropriations in the amount of $191,000.00 for the FY 2023 OPSG funds.

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RESOLUTION 24-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA

MESA, CALIFORNIA, AUTHORIZING ACCEPTANCE OF FISCAL YEAR 2023 OPERATION STONEGARDEN (OPSG) FUNDS WHICH ARE TO BE

USED TO DETER NARCOTICS TRAFFICKING
W
HEREAS, narcotics trafficking organizations continue to pose significant threats in California, and in Costa Mesa; and
W
HEREAS, federal grant funds have been allocated to the Riverside County Sheriff’s Department; to issue to sub-grantees to help disrupt and degrade transnational criminal organizations involved in narcotics trafficking; and W
HEREAS, the Costa Mesa Police Department was allocated $191,000 for the purchase of a fully outfitted marked patrol truck and operational overtime for personnel costs; and
W
HEREAS, it is in the interest of the city to accept the grant funds to assist in deterring transnational drug trafficking.

W, THEREFORE , THE CITY COUNCIL OF THE CITY OF COSTA MESA RESOLVES:

1. I
n all respects, the above recitals are hereby incorporated by reference.

2. T
he City Manager or designee is authorized to approve all documents necessary to accept the fiscal year 2023 OPSG funds in the amount of $191,000.

P
ASSED AND ADOPTED by this 17th day of May, 2024.

AYES:

N
OES:

ABSENT:
____________________________
John Stephens, Mayor
A
TTEST: APPROVED AS TO FORM:
___
_____________________ ____________________________
Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney Attachment 1
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2024- xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 17th day of May, 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 17th
day of May, 2024.

___________________________
Brenda Green, City Clerk
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1 AGREEMENT FOR
FISCAL YEAR 2023

OPERATION STONEGARDEN (OPSG)

1. PARTIES TO THE AGREEMENT
This Agreement is between the COUNTY OF RIVERSIDE ("COUNTY"), the COUNTY OF LOS ANGELES (“LAC”), the CITY OF COSTA MESA, CITY OF HAWTHORNE, CITY

OF HUNTINGTON BEACH, CITY OF LA HABRA, CITY OF LAGUNA BEACH, CITY OF NEWPORT BEACH, and CITY OF SEAL BEACH (collectively the “CITIES”), each a "PARTY” and collectively the "PARTIES", for support of the Operation Stonegarden ("OPSG") program.

1.1 Party Departments or Agencies Participating In The Agreement

1.1.1 For the COUNTY, participating agency is the Sheriff's Office (''SHERIFF").

1.1.2 For the CITIES, participating agencies are their respective police department.

1.1.3 For LAC, participating agency is their respective Sheriff's department.

2. RECITALS

2.1 WHEREAS, COUNTY through SHERIFF applied for, and was awarded grant funds from the U. S. Department of Homeland Security (“DHS”) passed through the California Governor's Office of Emergency Services (“Cal OES”), under the Fiscal Year (FY) 2023 Operation Stonegarden (OPSG) grant program. As an applicant for the San Diego Border Patrol Sector, SHERIFF shall be the lead agency to manage the OPSG program.

2.2 WHEREAS, funds shall be used to support the OPSG program to enhance law enforcement preparedness and operational readiness along the land and water borders of the United States.

2.3 WHEREAS, Government Code §55632 authorizes COUNTY and PARTIES to contract for provision of joint law enforcement services.

2.4 WHEREAS, PARTIES desire to enter into an agreement with provisions concerning the nature and extent of OPSG collaboration, services rendered, and compensation.

2.5 WHEREAS, COUNTY, by action of the Board of Supervisors Agenda Item 3.30 on January 23, 2024, approved the application, appropriation, and use of FY 2023 OPSG funds to reimburse PARTIES for program related overtime and fringe benefits; equipment purchases and maintenance costs; fuel; mileage; flight; and management and administration costs incurred not to exceed the amounts described in Exhibit A – FY 2023 OPSG Budget Attachment 2
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2 Worksheet in paragraph 2.9 (a) below, during the period of performance (POP) September 1, 2023 through May 31, 2026 but, the operational project period for PARTIES shall be the date of FEMA’s approval, March 25, 2024 through February 28, 2026.

2.6 WHEREAS, PARTIES shall retain documentation supporting all expenditures reimbursed from OPSG grant funds, ensure all expenditures are allowable under grant requirements, adhere to the federal procurement standards found in Title 2 of the Code of Federal Regulations, Part 200, Subpart D, Section §200.317-200.327, and comply with the Single Audit Act Amendments of 1996 and Title 2 of the Code of Federal Regulations, Part 200, Subpart F - Audit Requirements regarding organization-wide financial and compliance audit reports if $750,000 or more of OPSG federal funds are expended in a fiscal year.

2.6.1 Documentation shall be retained in accordance with the FEMA Preparedness Grants Manual and other OPSG grant requirements and shall be available for audit and inspection.

2.7 WHEREAS, PARTIES agree that this Agreement does not provide Federal authority to PARTIES to enforce immigration laws (Title 8 USC).

2.8 WHEREAS, PARTIES acknowledge the following information for the OPSG grant program:

(a) Federal Grantor Agency: U. S. Department of Homeland Security (DHS) (b) Administrative Authority: Federal Emergency Management Agency (FEMA) (c) Operational Oversight: U. S. Customs and Border Protection (CBP) (d) State Administrative Agency (SAA) or Pass-Through Agency: California Governor's Office of Emergency Services (Cal OES)
(e) Program Title: Homeland Security Grant Program (HSGP) Operation Stonegarden (OPSG)
(f) Grant Identification Number: 2023-0042
(g) Federal CFDA Number: 97.067

2.9 WHEREAS, PARTIES agree and shall utilize and adhere to the following Exhibits attached hereto and/or available using the referenced link:

(a) Exhibit A - FY 2023 OPSG Budget Worksheet
(b) Exhibit B - FY 2023 OPSG Standard Assurances
(c) Exhibit C - FY 2023 OPSG Byrd Anti-Lobbying Certification Form (d) Exhibit D - FY 2023 OPSG Operations Order (CONFIDENTIAL, for Official Use Only/Law Enforcement Sensitive)
(e) Exhibit E - Title 2 of the Code of Federal Regulations Part 200, (f) Exhibit F - Federal Contract Provisions
(language to be developed and incorporated within a contract) (g) Exhibit G - FY 2023 Homeland Security Grant Program (HSGP) Notice of Funding Opportunity (NOFO)
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3 (h) Exhibit H - FY 2023 Homeland Security Grant Program (HSGP) California Supplement to the Federal NOFO
(i) Exhibit I - FEMA Preparedness Grants Manual

Nothing in the Exhibits above shall limit the requirements of this Agreement.

NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, PARTIES jointly intend that COUNTY will reimburse, and PARTIES will provide, a level of OPSG services as set forth in this Agreement.

3. PURPOSE AND INTENT

The purpose of this Agreement is to satisfy the OPSG grant program proposal awarded by the DHS and passed through to the Cal OES, under the FY 2023 Operation Stonegarden grant program.

4. SCOPE OF SERVICES

4.1 Method of Service Delivery
SHERIFF shall manage the OPSG grant program, oversee the funding allocation of the PARTIES, and be administratively responsible for coordination of PARTIES' obligations under this Agreement. The SHERIFF's OPSG grant program team will be staffed as described in paragraph 6. STANDARDS OF SERVICE: OBLIGATIONS OF THE PARTIES.

4.2 Overview of Basic Services
PARTIES shall perform OPSG Operations ("Operations") by increasing law enforcement presence in each PARTY's designated jurisdiction and in coordination with other OPSG partner agencies to support the U. S. Customs and Border Protection (CBP) efforts to improve border security in the region. PARTIES will enforce local and state laws within their designated jurisdiction subject to the California Values Act (SB 54; Chapter 495) and shall not enforce or aid in the enforcement of immigration laws on behalf of U. S.

Customs and Border Protection (CBP) and U. S. Border Patrol (BP). This Agreement does not provide Federal authority to PARTIES to enforce immigration laws (Title 8 USC).

5. TERM OF AGREEMENT
The OPSG grant program period of performance (POP) is September 1, 2023 through May 31, 2026, but the operational project period for PARTIES shall be the date of FEMA's approval, March 25, 2024 through February 28, 2026.

5.1 Initial Term
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4 The term of this Agreement shall be retroactive to 12:01 a.m. on March 25, 2024 and shall continue in effect through and terminate at midnight on May 31, 2026; subject to the termination provision in paragraph 5.3.

5.2 Option to Extend
Renewal or extension of the Agreement beyond May 31, 2026 shall be subject to remaining grant funds and to a time extension approved by Cal OES. Any PARTY that does not agree to renew shall terminate its participation at the end of the term of this Agreement.

5.3 Termination
Subject to the applicable provisions of state law, each PARTY may terminate its participation in this Agreement upon ninety (90) days minimum written notice to the other PARTIES.

5.3.1 A PARTY may terminate its participation in this Agreement immediately upon written notice to the other PARTIES in the event it becomes ineligible to receive grant funds under this Agreement.

5.3.2 As the lead agency, SHERIFF, with approval from either FEMA, CBP, and/or Cal OES as needed, may require the termination of a PARTY's participation if it is determined that the PARTY has violated the provisions of this Agreement, including failure to provide the Anticipated Outcome set forth in section 6.3.

6. STANDARDS OF SERVICE: OBLIGATIONS OF THE PARTIES

6.1 Suspension and Debarment
SHERIFF will request, and PARTIES shall provide a copy of the SAM.gov report for their agency which shows their Active and Inactive Exclusions. Any PARTY with Active Exclusions at the onset of, or any time during, the term of this Agreement is not eligible to participate as set forth in Executive Orders 12549 and 12689, 2 CFR 200.214, and codified in 2 CFR Part 180, and shall terminate its participation in this Agreement as provided for in paragraph 5.3 Termination.

6.2 Byrd Anti-Lobbying Amendment
PARTIES that receive an award greater than $100,000 shall certify to SHERIFF on the Byrd Anti-Lobbying Certification Form attached hereto as Exhibit C, that it will not and has not used federally appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, officer or employee of Congress, or an employee of a Member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each PARTY shall also disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from agency to agency up to the recipient who in turn will forward the certifications to the federal awarding agency.

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5 6.3 Anticipated Outcome
The anticipated outcome of Operations to be performed by PARTIES under this Agreement is increased law enforcement presence in each PARTY's designated jurisdiction to support U. S. DHS and U. S. CBP efforts in the region to improve border security and reduce border related crime. The anticipated outcome will be reached by achieving the goals and accomplishing the missions set forth below by PARTIES and in Exhibit D – FY 2023 OPSG Operations Order.

6.3.1 PARTIES shall provide enhanced enforcement by increasing patrol presence in proximity to the border and/or routes of ingress from the border, including the water borders. In addition, PARTIES shall utilize their unique investigatory areas of expertise in operations.

6.3.2 Increase intelligence/information sharing among PARTIES, including but not limited to:
(a) Conducting bi-monthly meetings with a minimum of one representative from each PARTY.
(b) Increasing information sharing during operations.

6.3.3 Prior to Operations, PARTIES' Designated Operations Coordinator, in paragraph 6.4.3, shall submit an operational plan and schedule to the Integrated Planning Team (IPT) at least 72 hours prior to the operation.

6.3.3.1 The IPT is comprised of SHERIFF and CBP sworn personnel.

6.3.3.2 The role of the IPT is to provide support and guidance to the local, state, and federal law enforcement stakeholders within the grant.

6.3.4 Within 48 hours following the conclusion of each Operation:

6.3.4.1 Each PARTY shall complete a Daily Activity Report (DAR) form in Excel format, which will be submitted as supporting documentation for any reimbursement request. Information entered in the Narrative section of the DAR form shall include statistical data and report from Field Interviews (FIs), Arrest Reports, and/or Citations.

6.3.4.2 PARTIES' Designated Operations Coordinator in paragraph 6.4.3, or designee, shall enter and submit the same DAR information directly into DHS's Homeland Security Information Network (HSIN).

6.3.4.3 PARTIES' Designated Operations Coordinator or designee shall ensure DAR information entered in HSIN is correct and shall make necessary corrections until it is processed for approval.

6.4 Personnel Qualifications and Assignment

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6 6.4.1 Qualifications
Each PARTY shall ensure that personnel assigned to perform Operations pursuant to this Agreement meet the minimum qualifications for their specific classification.

6.4.2 Management, Direction, and Supervision; Independent Contractors The hiring, firing, management, direction, and supervision of each PARTY's personnel, the standards of performance, the discipline of each PARTY's personnel, and all other matters incident to the performance of such services, shall be performed by and be the responsibility of each PARTY in each PARTY's sole but reasonable judgment and in accord with the provisions of applicable labor agreements. Each PARTY shall be the appointing authority for all its personnel provided to OPSG by this Agreement. PARTIES shall have no liability for any direct payment of salary, wages, indemnity, or other compensation or benefit to any other PARTY's personnel.

Each PARTY and its respective officers, agents, and employees are independent contractors and are not officers, agents, and employees of any other PARTY. Each PARTY's personnel are under the direct and exclusive supervision of that PARTY, and each PARTY assumes full responsibility for the performance of its own personnel in connection with this Agreement. No PARTY has the authority to bind any other PARTY.

6.4.3 Designated Operations Coordinators
SHERIFF shall select a Designated Operations Coordinator, at the rank of Sheriff's Lieutenant or higher, who shall manage and direct OPSG operations. All other PARTIES shall select a Designated Operations Coordinator for their respective agency under this Agreement. The Designated Operations Coordinator for each PARTY shall serve as their agency contact and shall implement, as needed, appropriate procedures governing the performance of all requirements under this Agreement and shall be responsible for meeting and conferring in good faith to address any disputes which may arise concerning implementation of this Agreement.

6.4.4 Staffing for Basic Services
PARTIES shall ensure that adequate numbers of their qualified respective personnel are always provided to Operations during the term of this Agreement to meet the Basic Services, Scope of Services, and Standards of Service commitments set forth herein.

6.4.5 Equipment and Supplies
COUNTY will provide SHERIFF OPSG personnel with all supplies and/or prescribed safety gear, body armor, and/or standard issue equipment necessary to perform Operations. Similarly, all other PARTIES will provide their respective OPSG personnel with all supplies and/or prescribed safety gear, body armor, and/or standard 331

7 issue equipment necessary to perform Operations unless otherwise specified in Exhibit D - FY 2023 OPSG Operations Order.

6.4.5.1 PARTIES are responsible for the procurement of their own equipment to be used in Operations.

6.4.5.2 PARTIES shall maintain an inventory list of all equipment purchased with OPSG funds and when practicable, equipment shall be labeled with:
"Purchased with funds provided by the U. S. Department of Homeland Security".

7. COST OF SERVICES/CONSIDERATION

7.1 General

7.1.1 As full consideration for the satisfactory performance and completion by PARTIES of Operations set forth in this Agreement, COUNTY shall reimburse PARTIES for personnel assigned to perform Operations on the basis of claims and submittals as set forth hereunder. Such payments by COUNTY are dependent on the continued availability of funds from the DHS passed through the Cal OES.

7.1.2 PARTIES agree that awarded funds identified as allowable costs, as set forth in Exhibit G – FY 2023 Homeland Security Grant Program Notice of Funding Opportunity (HSGP NOFO), shall be expended only for approved Operations operating expenses, and equipment as detailed in Exhibit A – FY 2023 OPSG Budget Worksheet, and that unallowable costs are not reimbursable as set forth in Exhibit G – FY 2023 HSGP NOFO.

7.1.3 No reimbursement shall be made to a PARTY during any period of time within which that PARTY is in default on filing any informational or financial reports required by SHERIFF. SHERIFF shall make any necessary adjustments to PARTY claims to correct for overpayments, underpayments, or disallowances.

7.2 Project Costs/Rate of Compensation
SHERIFF shall reimburse PARTIES for overtime worked by personnel assigned to perform Operations and shall reimburse for costs approved in Exhibit D – FY 2023 OPSG Operations Order, based upon available funding and the actual costs incurred by PARTIES to provide Operations.

7.3 Method of Payment
PARTIES shall submit to SHERIFF, accurate and complete reimbursement forms, labor reports, timesheets, DARs, equipment and equipment maintenance invoices, procurement documents, purchase orders and/or contracts, and proof of payment, that represent amounts to be reimbursed under this Agreement within ninety (90) days from the date when expenditure was incurred. All requests for reimbursement shall be sent to:

332

8 Riverside County Sheriff's Office
Irina Sandoval / OPSG Grants Unit
1500 Castellano Rd
Riverside, CA 92509

7.3.1 Reimbursement forms and invoices must have the signature of PARTY's Authorized Agent, certifying that the invoice and substantiating documentation, e.g., DARs, timesheets, payroll and labor reports, procurement documents, etc., are true and correct.

7.3.2 PARTIES shall provide payroll records for each person whose costs are reimbursable under this Agreement, to include, at a minimum, the person's name, classification, duty position, task, regular hourly rate, overtime hourly rate, overtime hours worked, date(s) overtime worked, and fringe benefit rate and cost.

7.3.2.1 PARTIES shall make available to SHERIFF for inspection, upon request, all payroll records and any other records that relate to the Basic Services provided under this Agreement.

7.3.3 PARTIES shall submit to SHERIFF, verifiable and complete supporting documentation to substantiate reimbursement requests for service maintenance and/or equipment purchase, to include the equipment inventory ledger, certified copies of invoice, purchase order, proof of payment to vendor and procurement documentation.

7.3.3.1 PARTIES shall provide procurement records that show proof of compliance to 2 CFR 200.317-200.327 requirements, and documents that substantiate full and open competition, to include but not limited to copies of solicitation (RFQ, RFB, RFP), rationale for the method of procurement, contract policy, basis for the contract type and price, purchase request, statement of work and other pre-solicitation documents, cost/price analysis (if applicable), profit negotiation (if applicable), purchase orders, federal contract provisions with required language incorporated within contracts under federal award (as directed herein by Exhibit F – Federal Contract Provision), notice of award, record of protest, performance or other bond documents, specialized endorsements, suspension and debarment listing, etc.

7.3.3.2 PARTIES shall make available to SHERIFF for inspection and upon request, all procurement records that provide historical and background information to answer inquiries pertaining to the acquisition of service maintenance and/or equipment that may arise in a review or audit or until the grant record retention period expires.

7.3.4 PARTIES shall ensure awareness, understanding and compliance to all grant rules and procurement requirements. PARTIES shall be responsible in making sure that proper authorization are in place for any OPSG equipment purchase that require 333

9 specialized endorsement or approvals, including waiver request forms or Environmental Planning and Historic Preservation (EHP) compliance.

7.3.5 Noncompetitive procurements of equipment exceeding the $250,000 simplified acquisition threshold established by Federal Acquisition Regulation (FAR) 48 CFR Subpart 2.1, in accordance with 41 U.S.C. 1908, will require prior written approval from Cal OES.

7.3.5.1 Prior to purchasing equipment determined to be noncompetitive, PARTIES shall provide SHERIFF by email a copy of their Purchasing Agent's approval for the noncompetitive procurement which SHERIFF will submit to Cal OES for approval.

7.3.6 PARTIES shall obtain a performance bond from vendors prior to procuring equipment items costing over $250,000, or any vehicle, aircraft, or watercraft, to be paid at the time of purchase, in order to ensure delivery of the equipment within ninety (90) days of the performance period end date.

7.3.6.1 Performance bond shall be included for reimbursement with invoice.

7.3.7 Within ninety (90) business days upon receipt of valid invoice and supporting documentation specified in subparagraphs under 7.3, SHERIFF will reimburse PARTIES for the Basic Services agreed to.

7.3.8 Each PARTY shall manage their allocation and track their claims to ensure they remain within their allocated amount as specified in Exhibit A – FY 2023 OPSG Budget Worksheet.

7.4 Reimbursement Disallowances
PARTIES not in compliance with procedures in paragraph 7.3 above risk having incurred expenditures disallowed for reimbursement by SHERIFF. PARTIES that fail to submit claims for reimbursement within ninety (90) days will be notified in writing by SHERIFF that the claim(s) is/are past due, and funds allocated to the PARTY for that time period may be redistributed among other PARTIES.

8. PROGRAM/FINANCIAL ADMINISTRATION

8.1 PARTIES shall use as the primary reference in all programmatic, financial, and grant administration matters and adhere to the policies and regulations in Exhibit E - Title 2 of the Code of Federal Regulations Part 200 (2 CFR Part 200), Exhibit G – FY 2023 HSGP NOFO, Exhibit H – FY 2023 HSGP CA Supplement to the NOFO, and Exhibit I – FEMA Preparedness Grants Manual, in conjunction with updates issued by the Office of Management and Budget (OMB), Grants & Training (G&T) information bulletins, and Cal OES policy, regulations, and statutes.

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10 8.1.1 Contract Provisions
PARTIES shall ensure that all contracts adhere to all applicable contract provisions stated in 2 CFR 200.317–200.327 and found in Appendix II - Contract Provisions for Non-Federal Entity Contracts under Federal Awards. Reimbursement claims associated with contracts that are found to be in noncompliance will be denied.

8.1.2 Methods of Procurement
PARTIES shall adhere to the procurement methods found in 2 CFR 200, Subpart D, Section 200.320.

9. REPAYMENT OF REIMBURSEMENTS

9.1 Any PARTY found through compliance assessments, audits, or monitoring site visits, to be out of compliance with paragraphs 7.3 and 8 above, shall retroactively repay SHERIFF, within ninety (90) days of notification, any reimbursement found out of compliance which was paid to PARTY during the term of, and even after the term, of this Agreement. This provision shall survive termination or expiration of this Agreement.

10. INDEMNIFICATION – WORKERS' COMPENSATION, EMPLOYMENT AND

CLAIMS AND LIABILITY ISSUES

10.1 The COUNTY shall fully indemnify and hold harmless non-County PARTIES and their respective officers, employees and agents, from any claims, losses, fines, expenses (including attorneys' fees and court costs and/or arbitration costs), costs, damages or liabilities arising from or related to (1) any workers' compensation claim or demand or other workers' compensation proceeding arising from or related to, or claimed to arise from or relate to, employment which is brought by an employee of the COUNTY or any contract labor provider retained by the COUNTY, or (2) any claim, demand, suit, or other proceeding arising from or related to, or claimed to arise from or relate to, the status of employment (including without limitation, compensation, demotion, promotion, discipline, termination, hiring, work assignment, transfer, disability, leave or other such matters) which is brought by an employee of the COUNTY or any contract labor provider retained by the COUNTY.

10.2 Each non-County PARTY shall fully indemnify and hold harmless the COUNTY, its officers, employees, and agents, from any claims, losses, fines, expenses (including attorneys' fees and court costs or arbitration costs), costs, damages or liabilities arising from or related to (1) any workers' compensation claim or demand or other workers' compensation proceeding arising from or related to, or claimed to arise from or relate to, employment which is brought by an employee of that respective non-County PARTY or any contract labor provider retained by non-County PARTY, or (2) any claim, demand, suit, or other proceeding arising from or related to, or claimed to arise from or relate to, the status of employment (including without limitation, compensation, demotion, promotion, discipline, termination, hiring, work assignment, transfer, disability, leave or other such matters) which is brought by an employee of that respective non-County PARTY or any contract labor provider retained by the non-County PARTY.

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11 10.3 Each non-County PARTY shall fully indemnify and hold harmless the other non- County PARTIES, its officers, employees, and agents, from any claims, losses, fines, expenses (including attorneys' fees and court costs or arbitration costs), costs, damages or liabilities arising from or related to (1) any workers' compensation claim or demand or other workers' compensation proceeding arising from or related to, or claimed to arise from or relate to, employment which is brought by an employee of that respective non-County PARTY or any contract labor provider retained by non-County PARTY, or (2) any claim, demand, suit, or other proceeding arising from or related to, or claimed to arise from or relate to, the status of employment (including without limitation, compensation, demotion, promotion, discipline, termination, hiring, work assignment, transfer, disability, leave or other such matters) which is brought by an employee of that respective non-County PARTY or any contract labor provider retained by the non-County PARTY.

11. INDEMNIFICATION RELATED TO ACTS OR OMISSIONS; NEGLIGENCE

11.1 Claims Arising from Sole Acts or Omissions of a PARTY Each PARTY to this Agreement hereby agrees to defend and indemnify the other PARTIES to this Agreement, their agents, officers, and employees, from any claim, action, or proceeding against the other PARTIES, arising solely out of its own acts or omissions in the performance of this Agreement. At each PARTY's sole discretion, each PARTY may participate at its own expense in the defense of any claim, action, or proceeding, but such participation shall not relieve any PARTY of any obligation imposed by this Agreement.

PARTIES shall notify each other promptly of any claim, action, or proceeding and cooperate fully in the defense.

11.2 Claims Arising from Concurrent Acts or Omissions
The PARTIES hereby agree to defend themselves from any claim, action, or proceeding arising out of the concurrent acts or omissions of the PARTIES. In such cases, PARTIES agree to retain their own legal counsel, bear their own defense costs, and waive their right to seek reimbursement of such costs, except as provided in paragraph 11.4 below.

11.3 Joint Defense
Notwithstanding paragraph 11.2 above, in cases where PARTIES agree in writing to a joint defense, PARTIES may appoint joint defense counsel to defend the claim, action, or proceeding arising out of the concurrent acts or omissions of PARTIES. Joint defense counsel shall be selected by mutual agreement of PARTIES. PARTIES agree to share the costs of such joint defense and any agreed settlement in equal amounts, except as provided in paragraph 11.4 below. PARTIES further agree that no PARTY may bind the others to a settlement agreement without the written consent of the others.

11.4 Reimbursement and/or Reallocation
Where a trial verdict or arbitration award allocates or determines the comparative fault of the parties, PARTIES may seek reimbursement and/or reallocation of defense costs, settlement payments, judgments, and awards, consistent with such comparative fault.

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12 12. GENERAL PROVISIONS

12.1 Notices
Any notice, request, demand, or other communication required or permitted hereunder shall be in writing and may be personally delivered or given as of the date of mailing by depositing such notice in the United States mail, first-class postage prepaid and addressed as follows, or, to such other place as each PARTY may designate by subsequent written notice to each other:

To SHERIFF:

Sheriff
Riverside County Sheriff's Office
4095 Lemon Street
Riverside, CA 92501

To Non-County PARTIES:

Chief of Police Chief of Police
Costa Mesa Police Department Hawthorne Police Department 99 Fair Drive 12501 Hawthorne Blvd
Costa Mesa, CA 92626 Hawthorne, CA 90250

Chief of Police Chief of Police
Huntington Beach Police Department La Habra Police Department 2000 Main Street 150 N Euclid Street
Huntington Beach, CA 92648 La Habra, CA 90631

Chief of Police Chief of Police
Laguna Beach Police Department Newport Beach Police Department 505 Forest Ave 870 Santa Barbara Drive
Laguna Beach, CA 92651 Newport Beach, CA 92660

Chief of Police Sheriff
Seal Beach Police Department Los Angeles County Sheriff's Dept. 911 Seal Beach Blvd Special Enforcement Bureau
Seal Beach, CA 90740 1060 North Eastern Avenue
Los Angeles, CA 90063

A notice shall be effective on the date of personal delivery if personally delivered before 5:00 p.m. on a business day or otherwise on the first business day following personal delivery; or two (2) business days following the date the notice is postmarked, if mailed; or on the first business day following delivery to the applicable overnight courier, if sent by overnight courier for next business day delivery and otherwise when received. 337

13 12.2 Amendment; Assignment
This Agreement may be modified or amended only by a written document signed by the COUNTY through SHERIFF and the affected PARTY or PARTIES, and no oral understanding or agreement shall be binding on any PARTY or PARTIES. No PARTY shall assign any of its rights or delegate any of its obligations hereunder without the prior written consent of the other PARTIES.

12.3 Entire Agreement
This Agreement constitutes the complete and exclusive statement of agreement between the COUNTY and non-County PARTIES with respect to the subject matter hereto.

As such, all prior written and oral understandings are superseded in total by this Agreement.

12.4 Construction
This Agreement will be deemed to have been made and shall be construed, interpreted, governed, and enforced pursuant to, and in accordance with, the laws of the State of California. The headings and captions used in this Agreement are for convenience and ease of reference only and shall not be used to construe, interpret, expand, or limit the terms of the Agreement and shall not be construed against any one PARTY.

12.5 Waiver
A waiver by COUNTY or non-County PARTIES of a breach of any of the covenants to be performed by COUNTY or non-County PARTIES shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this Agreement. In addition, the failure of any PARTY to insist upon strict compliance with any provision of this Agreement shall not be considered a waiver of any right to do so, whether for that breach or any subsequent breach. The acceptance by COUNTY or non- County PARTIES of either performance or payment shall not be considered a waiver of PARTY's preceding breach of this Agreement.

12.6 Authority to Enter Agreement
COUNTY and non-County PARTIES have all requisite power and authority to conduct their respective business and to execute, deliver, and perform the Agreement. Each PARTY warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective PARTY.

12.7 Cooperation
COUNTY through SHERIFF and Non-County PARTIES will cooperate in good faith to implement this Agreement.

12.8 Counterparts
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. SHERIFF will provide each PARTY with a copy of this Agreement once fully executed.
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14 12.9 Severability
This Agreement is subject to all applicable laws and regulations. If any provision of this Agreement is found by any Court or other legal authority, or is agreed upon by the PARTIES, to be in conflict with any law or regulation, then the conflicting provision shall be considered null and void. If the effect of nullifying any conflicting provision is such that a material benefit of this Agreement to any PARTY is lost, then the Agreement may be terminated at the option of the affected PARTY, with the notice as required in this Agreement. In all other cases, the remainder of this Agreement shall be severable and shall continue in full force and effect.

12.10 Legislative Changes
If any changes are made to regulations pursuant to which this Agreement is made or to any successor legislation or regulations, or if the DHS imposes any budget requirements or limitations applicable to this Agreement and the services to be provided hereunder, then (1) to the extent any of the changes are of mandatory application, such change(s) shall apply to the PARTIES in this Agreement, and this Agreement shall be deemed to be amended to be consistent with such changes(s) except to the extent that such change(s) alter(s) a material provision of this Agreement in which case such material provision shall be voidable and the PARTIES will negotiate in good faith to amend the Agreement as necessary, and (2) to the extent any of the changes are not of mandatory application, such change(s) shall not affect this Agreement or the right or obligations of COUNTY and non-COUNTY under this Agreement unless the PARTIES mutually agree to subject themselves to such changes(s).

12.11 Representation
Each PARTIES' Chief, and/or Sheriff, or their respective designee, shall represent its PARTY in all discussions pertaining to this Agreement. SHERIFF, or his or her designee, shall represent COUNTY in all discussions pertaining to this Agreement.

12.12 Dispute Resolution Concerning Services and Payment In the event of any dispute concerning services and payment arising from this Agreement, representatives described in paragraph 12.11, will meet, and confer within ten (10) business days after receiving notice of the dispute to resolve the dispute.

12.13 Termination of Funding
If funding for reimbursement of costs related to Operations is terminated by the DHS, this Agreement in its entirety shall be considered null and void and COUNTY through SHERIFF and PARTIES shall no longer be required to provide Operations as described herein. In such event, PARTIES shall meet immediately, and if agreed upon by the PARTIES, mutually develop and implement within a reasonable time frame, a transition plan for the provision of Operations through alternate means.

12.14 Obligation
This Agreement shall be binding upon the successors of the PARTIES.

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15 12.15 California Law
This Agreement is executed and delivered within the State of California and the rights and obligations of the PARTIES hereto shall be construed and enforced in accordance with, and governed by, the laws of the State of California.

IN WITNESS WHEREOF, the PARTIES hereto approve and agree to the terms of this Agreement, such Agreement being effective March 25, 2024, unless otherwise specified.

Approved as to form and legality:

RIVERSIDE COUNTY Minh C. Tran

SHERIFF'S OFFICE OFFICE OF COUNTY COUNSEL

COUNTY OF RIVERSIDE

___________________________ _____________________________ Chad Bianco Amrit P. Dhillon
Sheriff-Coroner Deputy County Counsel

COSTA MESA POLICE HAWTHORNE POLICE DEPARTMENT

DEPARTMENT

___________________________ _____________________________ Ron Lawrence Gary Tomatani
Chief Chief

HUNTINGTON BEACH POLICE LA HABRA POLICE DEPARTMENT

DEPARTMENT

___________________________ _____________________________ Eric G. Parra Adam Foster
Chief Chief

LAGUNA BEACH POLICE NEWPORT BEACH POLICE

DEPARTMENT DEPARTMENT

___________________________ _____________________________ Jeff Calvert Joe Cartwright
Chief Chief

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16 SEAL BEACH POLICE

DEPARTMENT

___________________________
Michael Henderson
Chief

Approved as to form:

LOS ANGELES COUNTY DAWYN R. HARRISON

SHERIFF'S DEPARTMENT OFFICE OF THE COUNTY COUNSEL

COUNTY OF LOS ANGELES

___________________________ ___________________________ Robert G. Luna Michele Jackson
Sheriff Principal Deputy County Counsel

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EXHIBIT A
FY 2023 OPERATION STONEGARDEN

RIVERSIDE COUNTY SHERIFF'S OFFICE - SUB-RECIPIENT

SUMMARY

A B C D E F G H I
AGENCY NAME Operational OT Fringe Benefits Vehicle/Vessel Maint Equip Maint New/Replace
Equip Fuel Costs Mileage Flight Costs M&A TOTAL
Riverside County Sheriff's Department 259,436$ 12,354$ -$ -$ 399,200$ -$ 27,510$ -$ 145,000$ 843,500$ Costa Mesa Police Department 116,263$ -$ -$ -$ 72,000$ -$ 2,737$ -$ -$ 191,000$ Hawthorne Police Department 106,000$ -$ -$ -$ -$ -$ -$ -$ -$ 106,000$ Huntington Beach Police Department 199,000$ -$ -$ -$ -$ -$ -$ 26,000$ -$ 225,000$ La Habra Police Department 65,776$ 7,652$ -$ -$ 133,500$ -$ 1,572$ -$ -$ 208,500$ Laguna Beach Police Department 35,572$ 515$ -$ -$ 80,000$ -$ 4,913$ -$ -$ 121,000$ Los Angeles County Sheriff's Department 885,000$ -$ -$ -$ -$ -$ -$ -$ -$ 885,000$ Newport Beach Police Department 93,642$ 1,358$ -$ -$ 30,000$ -$ -$ -$ -$ 125,000$ Seal Beach Police Department 102,161$ 1,481$ -$ -$ 89,000$ -$ 2,358$ -$ -$ 195,000$ Grand Total Riverside County Region 1,862,850$ 23,360$ -$ -$ 803,700$ -$ 39,090$ 26,000$ 145,000$ 2,900,000$ Budget Narrative Category
Attachment 3
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FY 2023 Operation Stonegarden Grant - Standard Assurances Page 1 of 9 Initials

EXHIBIT B
Homeland Security Grant Program - Operation Stonegarden Grant (OPSG) FY 2023 Standard Assurances
(All OPSG Participating Agencies)
Name of Agency:

Address:

City: State: Zip Code:

As the duly authorized representative of the Agency ("Agency") named above, I hereby certify that the Agency has the legal authority to apply for federal assistance and has the institutional, managerial and financial capability (including sufficient funds to pay any non -federal share of project cost or to retroactively repay any reimbursement found out of compliance which was paid to Agency, for as long as the grant is active) to ensure proper planning, management and completion of the project described in this application, within prescribed timelines.

I further acknowledge that the Agency is responsible for reviewing and adhering to all requirements within the:
(a) Applicable Federal Regulations (see below);
(b) Federal Program Notice of Funding Opportunity (NOFO); (c) Federal Preparedness Grants Manual;
(d) HSGP California State Supplement to the NOFO; and
(e) Federal and State Grant Program Guidelines.

Federal Regulations
Government cost principles, uniform administrative requirements and audit requirements for federal grant programs are set forth in Title 2, Part 200 of the Code of Federal Regulations (C.F.R.). Updates are issued by the Office of Management and Budget (OMB) and can be found at http://www.whitehouse.gov/omb/.

Significant state and federal grant award requirements (some of which appear in the documents listed above) are set forth below. The Agency hereby agrees to comply with the following:

1. Proof of Authority
The Agency will obtain written authorization from the city council, governing board or authorized body in support of this project. This written authorization must specify that the Agency and the city council, governing board or authorized body agree:
(a) To provide all matching funds required for said project and that any cash match will be appropriated as required;
(b) That any liability arising out of the performance of this agreement shall be the responsibility of the Agency and the city council, governing board or authorized body; (c) That grant funds shall not be used to supplant expenditures controlled by the city council, governing board or authorized body;
Attachment 4
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FY 2023 Operation Stonegarden Grant - Standard Assurances Page 2 of 9 Initials (d) That the Agency is authorized by the city council, governing body, or authorized body to apply for federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non-federal share of project cost, if any, or to retroactively repay any reimbursement found out of compliance which was paid to Agency, for as long as the grant is active) to ensure proper planning, management and completion of the project described in this application; and (e) That the official executing this agreement is, in fact, authorized to do so.

This Proof of Authority must be maintained on file and readily available upon request.

2. Period of Performance
The Agency is only authorized to perform allowable activities approved under the award, within the period of performance specified in the grant. Allowable activities may be initiated after approval of the award.

3. Lobbying and Political Activities
As required by Section 1352, Title 31 of the U.S. Code (U.S.C.), for persons entering into a contract, grant, loan or cooperative agreement from an agency or requests or receives from an agency a commitment providing for the United States to insure or guarantee a loan, the Agency certifies that:
(a) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement , and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. (b) If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying”, in accordance with its instructions. (c) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all Agencies shall certify and disclose accordingly.

The Agency will also comply with provisions of the Hatch Act (5 U.S.C. §§1501 -1508 and §§7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with federal funds.

Finally, the Agency agrees that federal funds will not be used, directly or indirectly, to support the enactment, repeal, modification or adoption of any law, regulation or policy without the express written approval from the California Governor’s Office of Emergency Services (Cal OES) or the federal awarding agency.

4. Debarment and Suspension
As required by Executive Orders (EO) 12549 and 12689, and 2 C.F.R §200.213 and codified in 2 C.F.R Part 180, Debarment and Suspension, the Agency will provide protection against waste, fraud and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the federal government. The Agency certifies that it and its principals, contractors, or subcontractors:
(a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; (b) Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, 344
FY 2023 Operation Stonegarden Grant - Standard Assurances Page 3 of 9 Initials or receiving stolen property;
(c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (2)(b) of this certification; and
(d) Have not within a three -year period preceding this application had one or more public transaction (Federal, State, or local) terminated for cause or default.

Where the Agency is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application.

5. Non-Discrimination and Equal Employment Opportunity
The Agency will comply with all state and federal statutes relating to non-discrimination. These include, but are not limited to the following:

(a) Title VI of the Civil Rights Act of 1964 (Public Law (P.L.) 88 -352 and 42 U.S.C. § 2000d et. seq.) which prohibits discrimination on the basis of race, color or national origin and requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with limited English proficiency (LEP) to their programs and services; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§ 1681-1683, and 1685- 1686), which prohibits discrimination on the basis of sex in any federally funded educational program or activity;
(c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination against those with disabilities or access and functional needs; (d) Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, and requires buildings and structures be accessible to those with disabilities and access and functional needs (42 U.S.C. § 12101-12213);
(e) Age Discrimination Act of 1975, (42 U.S.C. §§ 6101-6107), which prohibits discrimination on the basis of age;
(f) Public Health Service Act of 1912 (42 U.S.C. §§ 290 dd --- 2), relating to confidentiality of patient records regarding substance abuse treatment;
(g) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), relating to nondiscrimination in the sale, rental or financing of housing as implemented by the Department of Housing and Urban Development at 24 C.F.R Part 1 00. The prohibition on disability discrimination includes the requirement that new multifamily housing with four or more dwelling units --- i.e., the public and common use areas and individual apartment units (all units in buildings with elevators and grou nd- floor units in buildings without elevators) --- be designed and constructed with certain accessible features (See 24 C.F.R § 100.201);
(h) Executive Order (E.O.) 11246, which prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identification, or national origin;
(i) Executive Order (E.O.) 11375, whi ch bans discrimination on the basis of race, color, religion, sex, sexual orientation, gender identification, or national origin in hiring and employment in both the United States federal workforce and on the part of government contractors; (j) California Publ ic Contract Code § 10295.3, which prohibits discrimination based on domestic partnerships and those in same sex marriages;
(k) DHS policy to ensure the equal treatment of faith-based organizations, under which all recipients must comply with equal treatment policies and requirements contained in 6 C.F.R. Part 19; (l) The Agency will comply with California's Fair Employment and Housing Act (FEHA) (California Government Code § 12940, 12945, 42945.2), as applicable. FEHA prohibits harassment and discrimination in employment because of ancestry, familial status, race, color, religious creed (including religious dress and grooming practices), sex (which includes pregnancy, childbirth, 345
FY 2023 Operation Stonegarden Grant - Standard Assurances Page 4 of 9 Initials breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, mental and physical disability, genetic information, medical condition, age, pregnancy, denial of medical an d family care leave, or pregnancy disability leave, military and veteran status, and/or retaliation for protesting illegal discrimination related to one of these categories, or for reporting patient abuse in tax supported institutions;
(m) Any other nondiscrimination provisions in the specific statute(s) under which application for federal assistance is being made; and
(n) The requirements of any other nondiscrimination statute(s) which may apply to the application.

6. Drug-Free Workplace
As required by the Drug-Free Workplace Act of 1988 (41 U.S.C. § 701 et seq.), the Agency certifies that it will maintain a drug-free workplace and a drug-free awareness program as outlined in the Act.

7. Environmental Standards
The Agency will comply with State and Federal environmental standards, including:

(a) California Environmental Quality Act (CEQA) (California Public Resources Code §§ 21000 -21177), to include coordination with the city or county planning agency; (b) CEQA Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387); (c) Federal Clean Water Act (CWA) (33 U.S.C. § 1251 et seq.), which establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters;
(d) Federal Clean Air Act of 1955 (42 U.S.C. § 7401), which regulates air emissions from stationary and mobile sources;
(e) Institution of environmental quality control measures under the National Environmental Policy Act (NEPA) of 1969 (P.L. 91 -190); the Council on Environmental Quality Regulations for Implementing the Procedural Provisions of NEPA; and Executive Orders (EO) 12898 which focuses on the environmental and human health effects of federal actions on minority and low -income populations with the goal of achieving environmental protection for all communities; (f) Evaluation of flood hazards in floodplains in accordance with Executive Order (EO) 11988 (g) Executive Order (EO) 11514 which sets forth national environmental standards; (h) Executive Order ( EO) 11738 instituted to assure that each federal agency empowered to enter into contracts for the procurement of goods, materials, or services and each federal agency empowered to extend federal assistance by way of grant, loan, or contract shall undertake such procurement and assistance activities in a manner that will result in effective enforcement of the Clean Air Act and the Federal Water Pollution Control Act Executive Order (EO) 11990 which requires preservation of wetlands;
(i) The Safe Drinking Water Act of 1974, (P.L. 93-523); (j) The Endangered Species Act of 1973, (P.L. 93-205);
(k) Assurance of project consistency with the approved state management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§ 1451 et seq.); (l) Conformity of Federal Actions to State (Clear Air) Implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. §§ 7401 et seq.); (m) Wild and Scenic Rivers Act of 1968 (16 U.S.C. § 1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.

The Agency shall not be: 1) in violation of any order or resolution promulgated by the State Air Resources Board or an air pollution district; 2) subject to a cease and desist order pursuant to § 13301 of the California Water Code for violation of waste discharge requirements or discharge prohibitions; or 3) determined to be in violation of federal law relating to air or water pollution.
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FY 2023 Operation Stonegarden Grant - Standard Assurances Page 5 of 9 Initials

8. Audits
For grant recipients expending $750,000 or more in federal grant funds annually, the Agency will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and Title 2 of the Code of Federal Regulations, Part 200, Subpart F Audit Requirements.

9. Access to Records
In accordance with 2 C.F.R § 200.336, the Agency will give the awarding agency, the Comptroller General of the United States and, if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the award. The Agency will require any subrecipients, contractors, successors, transferees and assignees to acknowledge and agree to comply with this provision.

10. Conflict of Interest
The Agency will establish safeguards to prohibit the Agency's employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain.

11. Financial Management
False Claims for Payment - The Agency will comply with 31 U.S.C § 3729-3733 which sets forth that no subgrantee, recipient or subrecipient shall submit a false claim for payment, reimbursement or advance.

12. Reporting - Accountability
The Agency agrees to comply with applicable provisions of the Federal Funding Accountability and Transparency Act (FFATA) (P.L. 109 -282), specifically (a) the reporting of subawards obligating $25,000 or more in federal funds and (b) executive compensation data for first-tier subawards. This includes the provisions of FFATA, which includes requirements for executive compensation, and also requirements implementing the Act for the non-federal entity at 2 C.F.R. part 25 Financial Assistance Use of Universal Identifier and Central Contractor Registration and 2 C.F.R. part 170 Reporting Subaward and Executive Compensation Information.

13. Whistleblower Protections
The Agency also must comply with statutory requirements for whistleblower protections at 10 U.S.C. § 2409, 41 U.S.C. § 4712, and 10 U.S.C. § 2324, 41 U.S.C. § 4304 and § 4310.

14. Human Trafficking
The Agency will comply with the requirements of Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. § 7104) which prohibits grant award recipients or a subrecipient from: (1) engaging in trafficking in persons during the period of time that the award is in effect; (2) procuring a commercial sex act during the period of time that the award is in effect; or (3) using forced labor in the performance of the award or subawards under the award.

15. Labor Standards
The Agency will comply with the following federal labor standards:
(a) The Davis-Bacon Act (40 U.S.C. §§ 276a to 276a-7), as applicable, and the Copeland Act (40 U.S.C. § 3145 and 18 U.S.C. § 874) and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 327- 333), regarding labor standards for federally-assisted construction contracts or subcontracts, and (b) The Federal Fair Labor Standards Act (29 U.S.C. § 201 et al.) as they apply to employees of institutes of higher learning (IHE), hospitals and other non-profit organizations.

16. Worker’s Compensation
The Agency must comply with provisions which require every employer to be insured to protect workers who may be injured on the job at all times during the performance of the work of this Agreement, as per the workers compensation laws set forth in California Labor Code §§ 3700 et seq. 347
FY 2023 Operation Stonegarden Grant - Standard Assurances Page 6 of 9 Initials

17. Property-Related
If applicable to the type of project funded by this federal award, the Agency will:

(a) Comply with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of federal or federally-assisted programs.

These requirements apply to all interests in real property acquired for project purposes regardless of federal participation in purchase;
(b) Comply with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires Agencies in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more;
(c) Assist the awarding agency in assuring compl iance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. § 470), Executive Order (EO) 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. § 469a-1 et seq.); and
(d) Comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. § 4831 and 24 C.F.R. Part 35) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures.

18. Certifications Applicable Only to Federally Funded Construction Projects For all construction projects, the Agency will:

(a) Not dispose of, modify the use of, or change the terms of the real property title or other interest in the site and facilities without permission and instructions from the awarding agency. Will record the federal awarding agency directives and will include a covenant in the title of real property acquired in whole or in part with federal assistance funds to assure nondiscrimination during the useful life of the project. (b) Comply with the requirements of the awarding agency with regard to the drafting, review and approval of construction plans and specifications; and
(c) Provide and maintain competent and adequate engineering supervision at the construction site to ensure that the complete work conforms to the approved plans and specifications and will furnish progressive reports and such other information as may be required by the assistance awarding agency or State.

19. Use of Cellular Device While Driving is Prohibited
Agencies are required to comply with California Vehicle Code sections 23123 and 23123.5. These laws prohibit driving motor vehicle while using an electronic wireless communications device to write, send, or read a text-based communication. Drivers are also prohibited from the use of a wireless telephone without hands -free listening and talking, unless to make an emergency call to 911, law enforcement, or similar services.

20. California Public Records Act and Freedom of Information Act The Agency acknowledges that all information submitted in the course of applying for funding under this program, or provided in the course of an entity’s grant management activities that are under federal control, is subject to the Freedom of Information Act (FOIA), 5 U.S.C. § 552, and the California Public Records Act, California Government Code section 6250 et seq. The Agency should consider these laws and consult its own State and local laws and regulations regarding the release of information when reporting sensitive matters in the grant application, needs assessment, and strategic planning process.
348
FY 2023 Operation Stonegarden Grant - Standard Assurances Page 7 of 9 Initials HOMELAND SECURITY GRANT PROGRAM (HSGP) –

PROGRAM SPECIFIC ASSURANCES / CERTIFICATIONS

21. Acknowledgement of Federal Funding from DHS
All Agencies must acknowledge their use of federal funding when issuing statements, press releases, requests for proposal, bid invitations, and other documents describing projects or programs funded in whole or in part with federal funds.

22. Activities Conducted Abroad
All Agencies must ensure that project activities carried on outside the United States are coordinated as necessary with appropriate government authorities and that appropriate licenses, permits, or approvals are obtained.

23. Best Practices for Collection and Use of Personally Identifiable Information (PII) DHS defines personally identifiable information (PII) as any information that permits the identity of an individual to be directly or indirectly inferred, including any information that is linked or linkable to that individual. All Agencies who collect PII are required to have a publicly available privacy policy that describes standards on the usage and maintenance of PII they collect. Agencies may also find the DHS Privacy Impact Assessments: Privacy Guidance and Privacy template a useful resource respectively.

24. Copyright
All Agencies must affix the applicable copyright notices of 17 U.S.C. §§ 401 or 402 and an acknowledgement of U.S. Government sponsorship (including the award number) to any work first produced under federal financial assistance awards.

25. Duplication of Benefits
Any cost allocable to a particular federal financial assistance award provided for in 2 C.F.R. Part 200, Subpart E may not be charged to other federal financial assistance awards to overcome fund deficiencies, to avoid restrictions imposed by federal statutes, regulations, or federal financial assistance award terms and conditions, or for other reasons. However, these prohibitions would not preclude Agencies from shifting costs that are allowable under two or more awards in accordance with existing federal statutes, regulations, or the federal financial assistance award terms and conditions.

26. Energy Policy and Conservation Act
All Agencies must comply with the requirements of 42 U.S.C. § 6201 which contain policies relating to energy efficiency that are defined in the state energy conservation plan issued in compliance with this Act.

27. Federal Debt Status
All Agencies are required to be non -delinquent in their repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A - 129.

28. Fly America Act of 1974
All Agencies must comply with Preference for U.S. Flag Air Carriers: (air carriers holding certificates under 49 U.S.C. § 41102) for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. § 40118) and the interpretative guidelines issued by the Comptroller General of the United States in the March 31, 1981, amendment to Comptroller General Decision B-138942. 349
FY 2023 Operation Stonegarden Grant - Standard Assurances Page 8 of 9 Initials

29. Hotel and Motel Fire Safety Act of 1990
In accordance with Section 6 of the Hotel and Motel Fire Safety Act of 1990, all Agencies must ensure that all conference, meeting, convention, or training space funded in whole or in part with federal funds complies with the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, as amended, 15 U.S.C. § 2225a.

30. Non-supplanting Requirement
All Agencies who receive federal fina ncial assistance awards made under programs that prohibit supplanting by law must ensure that federal funds do not replace (supplant) funds that have been budgeted for the same purpose through non-federal sources.

31. Patents and Intellectual Property Rights
Unless otherwise provided by law, Agencies are subject to the Bayh -Dole Act, Pub. L. No. 96 -517, as amended, and codified in 35 U.S.C. § 200 et seq. All Agencies are subject to the specific requirements governing the development, reporting, and dispositio n of rights to inventions and patents resulting from financial assistance awards located at 37 C.F.R. Part 401 and the standard patent rights clause located at 37 C.F.R. § 401.14.

32. SAFECOM
All Agencies who receive federal financial assistance awards made under programs that provide emergency communication equipment and its related activities must comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications.

33. Terrorist Financing
All Agencies must comply with Executive Order (EO) 13224 and U.S. law that prohibit transactions with, and the provisions of resources and support to, individuals and organizations associated with terrorism. Agencies are legally responsible to ensure compliance with the EO and laws.

34. Reporting of Matters Related to Subrecipient Integrity and Performance If the total value of the Agency's currently active grants, cooperative agreements, and procurement contracts from all federal assistance offices exceeds $10,000,000 for any period of time during the period of performance of this federal financial assistance award, you must comply with the requirements set forth in the government-wide Award Term and Condition for Recipient Integrity and Performance Matters located at 2 C.F.R. Part 200, Appendix XII, the full text of which is incorporated here by reference in the award terms and conditions.

35. USA Patriot Act of 2001
All Agencies must comply with the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C. §§ 175-175c.

36. Use of DHS Seal, Logo, and Flags
All Agencies must obtain permission from DHS Financial Assistance Office, prior to using the DHS seal(s), logos, crests or reproductions of flags or likenesses of DHS agency officials, including use of the United States Coast Guard seal, logo, crests or reproductions of flags or likenesses of Coast Guard officials. 350
FY 2023 Operation Stonegarden Grant - Standard Assurances Page 9 of 9 Initials

IMPORTANT
The purpose of the assurance is to obtain federal and state financial assistance, including any and all federal and state grants, loans, reimbursement, contracts, etc. The Agency recognizes and agrees that state financial assistance will be extended based on the representations made in this assurance. This assurance is binding on the Agency, its successors, transferees, assignees, etc. Failure to comply with any of the above assurances may result in suspension, termination, or reduction of grant funds.

All appropriate documentation, as outlined above, must be maintained on file by the Agency and available for Cal OES or public scrutiny upon request. Failure to comply with these requirements may result in suspension of payments under the grant or termination of the grant or both and the Agency may be ineligible for award of any future grants if Cal OES determines that any of the following has occurred: (1) the Agency has made false certification, or (2) violates the certification by failing to carry out the requirements as noted above.

All of the language contained within this document must be included in the award documents for all subawards at all tiers. All Agencies are bound by the Department of Homeland Security Standard Terms and Conditions 2023, Version 2, hereby incorporated by reference, which can be found at: https://www.dhs.gov/publication/fy15-dhs- standard-terms-and-conditions.

The undersigned represents that he/she is authorized to enter into this agreement for and on behalf of the above-named Agency.

Name of Agency:

Signature of Authorized Agent:

Printed Name of Authorized Agent:

Title: Date:

Email Address:
351
FY 2023 Operation Stonegarden Grant – Certification Regarding Lobbying Page 1 | 2

EXHIBIT C
Homeland Security Grant Program - Operation Stonegarden Grant (OPSG) CERTIFICATION REGARDING LOBBYING UNDER FY202
3 OPSG
(All OPSG Participating Agencies)
Certification for Contracts, Grants, Loans and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuati on,
renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form- LLL, 'Disclosure of Lobbying Activities,' in accordance with its instructions.

3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

Attachment 5
352
FY 2023 Operation Stonegarden Grant – Certification Regarding Lobbying Page 2 | 2 Homeland Security Grant Program - Operation Stonegarden Grant (OPSG) CERTIFICATION REGARDING LOBBYING UNDER FY2023 OPSG
(All OPSG Participating Agencies)
The Subrecipient, as identified below, certifies, or affirms the truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, the Subrecipient understands and agrees that the provisions of 31 U.S.C. Chap. 38, Administrative Remedies for False Claims and Statements, apply to this certification and disclosure, if any.

Name of Agency: ________________________________________________________________ Signature of Authorized Agent: _______________________________________________ Printed Name of Authorized Agent: ___________________________________________ Title: _____________________________________ Date: _____________________________ 353

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-204 Meeting Date: 5/21/2024
TITLE:

FISCAL YEAR (FY) 2024-2025 ANNUAL ACTION PLAN IDENTIFYING FUNDING PRIORITIES

FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT

PARTNERSHIPS GRANT (HOME) PROGRAMS
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES

DEPARTMENT/HOUSING AND COMMUNITY DEVELOPMENT DIVISION
PRESENTED BY: MIKELLE DAILY, GRANT ADMINISTRATOR
CONTACT INFORMATION: MIKELLE DAILY, GRANT ADMINISTRATOR, (714) 754-5678 RECOMMENDATION:

Staff recommends the City Council:

1. Hold a Public Hearing regarding the FY 2024-2025 Annual Action Plan.

2. Approve the recommended allocation of $1,189,331 for FY 2024-2025 Community Development Block Grant, which includes the annual allocation of $971,431 prior year(s) uncommitted program funds in the amount of $187,000, and $30,900 in CDBG program income (CDBG lien/loan repayment).

3. Approve the recommended allocation of $558,943 for the Fiscal Year 2024-2025 HOME Investment Partnerships Grant, which includes the annual allocation of $395,571 prior year(s) unused administrative resources in the amount of $54,702, and $108,670 in program income (HOME lien/loan repayments).

4. Adopt Resolution No. 2024-XX in order to:
a. Approve the FY 2024-2025 Annual Action Plan.
b. Authorize the City Manager, or the City Manager’sdesignee, to submit the FY 2024- 2025 Annual Action Plan to the U.S. Department of Housing and Urban Development. c. Designate the City Manager, or the City Manager’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by HUD, and execute all subrecipient agreements for the use of funds approved in the FY 2024-2025 Annual Action Plan.

5. Provide direction regarding an update of our Public Service Grant guidelines and rating rubric as described in the staff report.

Page 1 of 1 ends

354

Page 1 of 10 ends

City of Costa Mesa
Agenda Report

77 Fair Drive
Costa Mesa, CA 92626
File #: 24-204 Meeting Date: 5/21/2024
TITLE: FISCAL YEAR (FY) 2024 -2025 ANNUAL ACTION PLAN IDENTIFYING FUNDING

PRIORITIES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME

INVESTMENT PARTNERSHIPS GRANT (HOME) PROGRAMS

DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/HOUSING AND

COMMUNITY DEVELOPMENT DIVISION

PRESENTED BY: MIKELLE DAILY, GRANT ADMINISTRATOR

CONTACT INFORMATION: MIKELLE DAILY, GRANT ADMINISTRATOR, (714) 754-5678

RECOMMENDATION:

Staff recommends the Council:

1. Hold a Public Hearing regarding the FY 2024-2025 Annual Action Plan.

2. Approve the recommended allocation of $1,189,331 for FY 2024 -2025 Community Development Block Grant, which includes the annual allocation of $971,431 prior year(s) uncommitted program funds in the amount of $187,000, and $30,900 in CDBG program income (CDBG lien/loan repayment).

3. Approve the recommended allocation of $558,943 for the Fiscal Year 2024 -2025 HOME Investment Partnerships Grant, which includes the annual allocation of $395,571 prior year(s) unused administrative resources in the amount of $54,702, and $108,670 in program income (HOME lien/loan repayments).

4. Adopt Resolution No. 2024-XX in order to:
a. Approve the FY 2024-2025 Annual Action Plan.
b. Authorize the City Manager, or the City Manager’s designee, to submit the FY 2024-2025 Annual Action Plan to the U.S. Department of Housing and Urban Development. c. Designate the City Manager, or the City Manager’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by HUD, and execute all subrecipient agreements for the use of funds approved in the FY 2024 -2025 Annual Action Plan.

5. Provide direction regarding an update of our Public Service Grant guidelines and rating rubric as described in the staff report.
355

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Page 2 of 10 ends

BACKGROUND:

Costa Mesa is a recipient of two U.S. Department of Housing and Urban Development (HUD) grant program funds: (1) the Community Development Block Grant (CDBG) Program and (2) the HOME Investment Partnerships Program (HOME). These two HUD programs annually provide approximately $1.5 million to the City and can be used for various activities that assist low - and moderate- income Costa Mesa residents.

The Housing and Community Development Division (HCD) of the D evelopment Services Department is responsible for administering the City’s CDBG and HOME grants. CDBG and HOME -funded activities must address the needs outlined in the City’s Consolidated Plan.

FIVE-YEAR CONSOLIDATED PLAN

The Consolidated Plan is a five-year planning document required by HUD for all communities receiving federal community development grant funds. The current Consolidated Plan was approved by the City Council on May 19, 2020 and covers FY 2020 -21 through FY 2024 -25. The following five-year goals are identified in the 2020-2024 Consolidated Plan:

 Goal 1: Housing Preservation - To provide decent and affordable housing through a variety of activities, including owner -occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation.

 Goal 2: Infrastructure and Facility Improvements - To enhance the suitability of the living environment through improvements to public infrastructure and facilities.

 Goal 3: Homeless Continuum of Care - To provide supportive services and housing assistance for homeless persons and homelessness prevention.

 Goal 4: Public Social Service - To provide services for low- and moderate-income persons, and those with special needs, including fair housing services.

 Goal 5: Program Administration - To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of programs and services and complying with all HUD program requirements.

The Consolidated Plan also includes a five -year strategic plan that i dentifies community needs, and strategies, programs and resources to address those needs. Its five -year cycle will end on June 30, 2025. The Consolidated Plan can be found on the City’s website at: Consolidated Plan

ANNUAL ACTION PLAN

The Annual Action Plan is the component of the Consolidated Plan that is revised annually. It links the goals identified in the City’s 2020-2024 Consolidated Plan to the planned annual expenditure of CDBG and HOME funds. The City must submit the Annual Action Plan to HUD in May of each year to comply with HUD requirements and continue to receive these federal funds. However, HUD issued Community Development and Planning (CPD) Notice 24-01 advising Grantees not to submit their Action Plan until after the 2024 allocations have been announced. Allocation amounts were announced on May 7, 2024 356

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and Costa Mesa has 60 days from that date to submit the Annual Action Plan to meet the regulatory requirement.

The City is required to provide a 30 -day public comment period and to hold a public hearing before approving and submitting the Annual Action Plan to HUD. In order to meet this requirement, the HUD CPD Notice indicates that the Plan may include estimated funding amounts to meet public participation procedures. The draft plan provided for public comment from April 20 th to May 21, 2024 , included estimated funding amounts with a contingency provision: “Consistent with HUD guidelines, once HUD announces CDBG and HOME awards for FY 2024 -2025, the City will adjust the funding for activities listed in the annual Action Plan proportionally in order to equal the final grant awards, or as otherwise directed by the City Council.” This language was also included in the Public Notice. The actual allocation amounts replaced the estimated amounts in the draft plan once HUD made the announcement on May 7, 2024. This agenda report reflects the actual allocation amounts.

ANALYSIS:

PROPOSED 2024-25 ANNUAL ACTION PLAN

Fiscal Year 2024-25 is the last year of the five -year 2020-2024 Consolidated Plan cycle. The period covered by the FY 2024-25 Action Plan begins July 1, 2024, and ends June 30, 2025.

Both CDBG and HOME funds have specific program requirements. For example, CDBG funds must be utilized to achieve one of three national objectives: 1) elimination of slums or blight, 2) to meet an urgent need (e.g., declared disaster), or 3) to benefit low- and moderate- income persons. HOME funds must be used to preserve or increase housing opportunities for low- income residents in Costa Mesa.

Lower income persons are defined by HUD as an individual with a household income equal to or less than 80 percent of the County median income. (The 2024 median family income for Orange County is $129,000). Income limits are based on family size and are adjusted annually by HUD. HUD 2024 Orange County (OC) income limits effective 4/1/2024 are shown below:

Household Size Household Income at
50% of OC Median
Income (Very Low
Income)
Household Income at
80% of OC Median
Income (Low Income)
1-Person $55,250 $88,400
2-Person $63,100 $101,000
3-Person $71,050 $113,650
4-Person $78,900 $126,250
5-Person $85,250 $136,350
6-Person $91,550 $146,450
7-Person $97,850 $156,550
8-Person $104,150 $166,650

CDBG Funds

The City will receive $971,431 in CDBG funds for FY 2024-25, a four percent decrease from the amount received in FY 2023. Additionally, $187,000 in prior year uncommitted program funds and $30,900 in 357

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CDBG program income will be available to CDBG-eligible activities. Staff is recommending funding in five primary program areas: (1) Capital Improvements , (2) Public Services Grants, (3) Housing Rehabilitation Administration , (4) Community Improvement/Code Enforcement, and (5) Program Administration.

Capital Improvements

CDBG funds may be used to improve infrastructure and public facilities, provided the primary beneficiaries are low - and moderate - income Costa Mesa residents. Capital projects funded with CDBG funds must be appropriate for the amount of funding available, consistent with the Consolidated Plan, and capable of being completed and funds expended within required CDBG timelines.

The City’s HCD staff solicited proposals for eligible projects from City departments in February 2024.

The Public Works Department r equested a minimum of $350,000 in funds to replace the roof at the Costa Mesa Senior Center. No other CDBG -eligible projects were identified. The Costa Mesa Senior Center serves more than 3,400 individuals per year and 2,911 of those served are age 62 and over, a population that is “presumed” as low- income by HUD. The Senior Center is located in an area where 77% of the residents are low- and moderate- income according to current HUD data available.

Available CDBG funds (approximately $414,331) are proposed to be used for the roof replacement of the Senior Center located at 695 W. 19 th Street, Costa Mesa, CA. If funds are remaining after the completion of the Senior Center roof replacement, they will be uncommitted from the roof project and made available for another CDBG-eligible Infrastructure or public facility project, to be determined at a future date.

Public Services

The City is allowed to earmark up to 15% of its annual CDBG allocation to fund public services. Based on the FY 2024-25 CDBG allocation, staff is recommending the City allocate the maximum allowable amount of $145,714 for public services.

Public services are defined as social service programs that primarily benefit low- and moderate- income residents. These programs may be administered by City staff or by local nonprofit agencies through a subrecipient agreement. Staff recommends allocating $30,000 to fund a portion of the salary for the City’s Senior Center Community Outreach Worker position. The City’s Community Outreach Worker assists senior clients by connecting them to appropriate community agencies, services and resources and provides support for their physical, mental, emotional and social health. This leaves $115,714 available to fund public services grants (PSGs) for community-based non-profit organizations.

On January 16, 2024, the City released a request for PSG applications. Nine eligible PSG applications requesting a total of $240,000 were received by the due date of February 9, 2024. On March 7, 2024, the City’s Housin g and Public Service Grant Committee (H&PSG Committee) convened to listen to presentations from non-profit organizations to finalize the rating process of the applications for grant funds, and to develop public service grant funding recommendations for the City Council’s consideration.

In addition to developing grant funding recommendations, the City’s H&PSG Committee also discussed a desire to update the guidelines and rating criteria for the public services application to reflect 358

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changing community priorities at their next scheduled meeting in September 2024. Items to consider include possible changes to the maximum and minimum grant amounts, ratings that reflect a funding preference for small charities that are making a big differ ence, and weighted ratings that reflect the impact of a small CDBG grant on the organization’s total operating budget. The updated criteria and requirements would be included with the first public service grants application for the new Consolidated Plan term covering FY 25-26 through 29-30.

The H&PSG Committee recommends funding six of the nine PSG applications received (refer to Table 1 below). The Fair Housing Foundation application will be funded with administration funds this year as it has been for the last two years. (Funding f or Fair Housing is a HUD requirement and is eligible for funding from either the administration portion or the PSG portion of the CDBG allocation).

The H&PSG Committee’s ratings, rankings, and grant recommendations are provide d as an attachment to this report for the City Council’s consideration. The attachment also includes a summary of grant applications and a three -year funding history of CDBG public service grants. The H&PSG Committee’s grant recommendations are listed in the proposed CDBG budget below. A complete copy of all PSG applications submitted are posted on the City’s website at: CDBG Applications.

Housing Rehabilitation Program Administration

Staff recommends allocating $50,000 in CDBG funding for staff and other direct costs associated with administering the City’s HOME -funded housing rehabilitation program. Examples of eligible costs include costs associated with staff preparation of work specifications, property inspections, and loan/grant application processing. Refer to the discussion under the HOME funds section of this report for further details regarding the Housing Rehabilitation program.

Community Improvement/Code Enforcement

CDBG funds may be used for code enforcement activities, provided the program primarily benefits low- and moderate- income persons, and that such activities “together with public or private improvements, rehabilitation, or services to be provided, may be expected to arrest the decline of the area.” The core of this regulation is that any CDBG-funded code enforcement activity must have a direct connection to rehabilitation or improvement of housing in a CDBG-eligible area. For FY 2024-25, staff recommends an allocation of $385,000 in CDBG funds to support the work effort of two full-time and one part-time City Community Improvement Officer s. Activity will be limited to e ligible low- and moderate- income Census Tract Block Groups identified by HUD. The goal of community improvement activities in these areas is to connect property owners, residents and other members of the community with resources and programs to resolve substandard housing conditions in an overall effort to improve the quality of life within these neighborhoods.

Administration

HUD allows the City to allocate up to 20 percent of its annual grant for planning and program administration. Based on the City’s FY 2024 -25 allocation, a maximum of $194,286 can be allocated for program administration. Eligible program administration expenditures include program staff salaries and benefits, contract services, legal services, direct program operating costs and fair housing costs (if not funded through the public services allocation). The City is required by HUD to fund a Fair Housing Program, which provides education, counseling and enforcement services for Costa Mesa households. 359

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Staff recommends allocating $20,000 from administration to fund the Fair Housing F oundation to provide fair housing services to the community and comply with federal regulations.

TABLE 1 – CDBG FUNDS

AVAILABLE FUNDS
FY 2024-2025 CDBG Allocation $971,431
FY 2024-2025 Uncommitted CDBG Allocation $187,000
FY 2023-2024 CDBG Program Income $30,900
TOTAL: $1,189,331

PROPOSED PROGRAMS/PROJECTS
Community Improvement/Code Enforcement
 Salary & Benefits 2 FT & 1 PT Officers $385,000
SUBTOTAL: $385,000
Capital Improvement Projects
 Public Facilities and Infrastructure
Improvements $414,331
SUBTOTAL: $414,331
Public Service Grants (15% Maximum)
 City of Costa Mesa – Senior Services
Community Outreach Worker $30,000
 Boys & Girls Clubs of Central Orange Coast
(YES) $14,464
 Families Forward $28,500
 Human Options $28,500
 Project Hope Alliance $23,750
 Trellis International $20,500
SUBTOTAL: $145,714
Housing Rehabilitation
 Housing Rehabilitation Administration $50,000
SUBTOTAL: $50,000
Administration (20%) Maximum)
 CDBG Program Administration $174,286
 Fair Housing Foundation $20,000
SUBTOTAL: $194,286
TOTAL: $1,189,331

HOME Funds

The City will receive a HOME grant allocation of $395,571 for FY 2024-25. Additionally, $108,670 in program income and $54,702 in prior year administrative resources are available. Staff recommends allocating FY 2024-25 HOME funds for four activities: (1) Single-family housing rehabilitation loans and grants program, (2) Affordable Housing Development - Community Housing Development Organization (CHDO) qualified, (3) Tenant Based Rental Assistance (TBRA) program, and (4) Program Administration.

The City must reserve a minimum of 15 percent of annual HOME funds for an affordable housing project to be undertaken by a qualified nonprofit housing developer known as a Community Housing 360

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Development Organization (CHDO). The City is also allowed to use a maximum of 10 percent of the current allocation of HOME funds for program administration.

The City anticipates additional administration expenses during FY 2024 -25 for consulting costs to complete the required 2025-2029 Analysis of Impediments, the planning process for the required 2025- 2029 Consolidated Plan, and consulting costs for the research and implementatio n of a grants administration system compatible with TESSA and the City’s new Enterprise Resource Planning (ERP) system. The additional resources available from prior year(s) unused administration funds have been identified for use for these additional expenses.

Single-family Housing Rehabilitation Grant and Loan Program

Staff is recommending an allocation of $255,349 in HOME funds for the City’s Housing Rehabilitation Loan and Grant Program. Program funds must be used to correct nonconforming uses, re medy code violations, and repair and improve deteriorating properties, with the goal of providing decent and safe housing conditions. The program will offer grants up to $15,000 for mobile homes and $20,000 for single family homes. The grant amounts are in creased from $12,500 and $17,500 respectively over last year’s program maximums to account for increased labor and material costs due to inflation and post-pandemic price increases.

Deferred zero interest loans of up to $50,000 are available as part of the Housing Rehabilitation Grant and Loan Program for single family homes. The property value after rehabilitation cannot exceed 95 percent of the HUD median purchase price for the City, which HUD calculates at $765,000 for Orange County based on an unadjusted median home value of $805,000. HUD’s calculation for Orange County would exclude nearly all of the single-family homes in Costa Mesa from eligibility for a HOME funded rehabilitation loan from the City. However, HUD regulations allow the City to request approval of an increase to the Median Area Purchase Price Limit based on a 3-month survey of single-family home sales in the most recent 12-month period. The City received a report of sales from April 2023 through March 2024 from Orange Coast Title showing that the median home value of a single -family home in Costa Mesa is $1,500,000. The City is requesting that HUD approve the median area purchase price as calculated by reported sales in Costa Mesa to in crease the number of eligible homes for rehabilitation loans to include those with after rehab values of $1,439,250 for FY 2024. The subject property must be owner-occupied and serve as the principal residence of the eligible low- to very low- income household applying.

The proposed allocation is estimated to fund approximately 10 grants and one loan annually.

Historically, this program has primarily funded improvements to mobile homes and focused on grants instead of loans. If the increase to the median area purchase price limit is approved, the City hopes to see an increase in loan applications. The after -rehab value limit for single family homes in FY 2023 - 2024 was $1,163,750 and one home was approved for a loan.

Community Housing Development Organization (CHDO) Affordable Housing Funds

HOME program regulations require that a minimum of 15 percent of the City’s annual grant allocation be reserved for the CHDO (a community-based nonprofit development entity). Based on the City’s FY 2024-25 HOME grant, $59,335 is the minimum CHDO set-aside requirement. HUD has suspended the 24-month commitment deadline requirement indefinitely for CHDO set-aside funds. As a result, these 361

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funds are set aside and accrue each year pending an eligible development app lication from a CHDO.

Most recently, CHDO funds were used to assist the “Motel 6 rehabilitation project”.

Tenant Based Rental Assistance (TBRA)

Staff is recommending allocating $150,000 in HOME funds for the City’s Tenant Based Rental Assistance Program. Families Forward has been operating the Costa Mesa TBRA program since 2020-2021. The program provides rental assistance for families with minor children for up to 24 months.

The TBRA rental subsidy covers rental costs, security deposits and utilities and reduces the housing cost for participating households to 30% of the household’s monthly adjusted income. To receive TBRA assistance, both the household and the housing unit must be eligible.

Eligible households include:
 Households with incomes at or below 60% Area Median Income (AMI) (e.g. , $94,680 for a household of four persons) with a severe housing cost burden (i.e., housing costs equal to 50% or more of the household monthly income); or
 Households meeting the HUD “At Risk of Homelessness ” definition in the Code of Federal Regulations - 24 CFR Part 91 (e.g. , household income at 30% AMI or below and insufficient resources to prevent them from moving to an emergency shelter and meets one of five additional conditions as listed in the regulations); or Households experiencing homelessness and having strong ties to the City (live/work/school).

Eligible units are required to comply with a HUD Housing Quality Inspection and occupancy standards, have a lease between the tenant and landlord, and have a rental assistance payment contract between the landlord and the TBRA program administrator.

Program Administration

The City may use up to 10 percent of its annual grant for HOME program administration. Based on the City’s FY 2024 -25 allocation, $39,557 is available for HOME program administration. Additional administrative funds of $54,702 are available for the additional administrative expenses described above, that are expected during FY 2024-25. Eligible administration expenditures include program staff salaries and benefits, contract services, and legal services which may be required to implement the funded activities.

TABLE 2 – HOME FUNDS

AVAILABLE FUNDS
FY 2024-2025 HOME Allocation $395,571
Previous Year(s) Unused Administrative Funds $54,702
FY 2023-2024 HOME Program Income $108,670
TOTAL: $558,943

PROPOSED PROGRAMS/PROJECTS
Housing Rehabilitation
 Single Family Housing Rehab Loans & Grants $255,349
SUBTOTAL: $255,349
Affordable Housing CHDO Reserve (15% minimum)
 CHDO Reservation – Project to be determined $59,335
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SUBTOTAL: $59,335
Tenant Based Rental Assistance
 Families Forward Costa Mesa TBRA $150,000
SUBTOTAL: $150,000
Administration (10% Maximum of annual allocation)
 FY 2023-2024 Program Administration $39,557
 Prior Year(s) Program Administration $54,702
SUBTOTAL: $94,259
TOTAL: $558,943

Noticing Requirements and Public Comment

As required by HUD, a notice was published in local newspapers in Spanish and English on April 20, 2024, inviting the public to review and comment on the draft 2024 -2025 Annual Action Plan. The comment period began April 20, 2024 , and concludes on May 21, 20 24. The notice also announced the May 21, 2024, City Council public hearing. At the time this report was drafted, no comments were received.

Program Changes

Each year, staff continually evaluates the effectiveness of our housing assistance programs, including those funded by CDBG and HOME dollars. Staff believes that an increase in the grant amount for the grants available to residents through the City’s Single -Family Housing Rehabilitation program is necessary as previously mentioned in this staff re port. Grant amounts will be increased to $15,000 from $12,500 for mobile homes and to $20,000 from $17,500 for single family homes.

Additionally, staff is seeking Council direction regarding the potential changes to the public service application guidelines and rating criteria as described in this report. Updates that the Housing and Public Service Grants Committee would like to consider at their meeting in September include:

 Possible changes to the maximum and minimum grant amounts;  Ratings that reflect a funding preference for small charities that are making a big difference; and  Weighted ratings that reflect the impact of a small CDBG grant on the applicant organization’s total operating budget.

The intent is to align the application and rating criteria with the City’s changing community priorities, while keeping the regulatory requirements for CDBG funding in the application materials. If the City Council directs staff to work with the H&PSG committee to update the application process, staff wi ll return with the updated application, guidelines, and rating criteria after the H&PSG September meeting for City Council consideration.

ALTERNATIVES:

The City Council can choose not to fund the proposed activities recommended by staff and alloca te CDBG or HOME funds to other eligible activities. The City Council can also direct staff to not submit the Action Plan; however, if the City does not submit the Action Plan, HOME funds will most likely be 363

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returned to the U.S. Treasury, and the City’s CDBG funds will be distributed proportionally among other Orange County jurisdictions that receive CDBG funds.

FISCAL REVIEW:

This action does not have a fiscal impact to the General Fund. For FY 2024-25 the City will receive an annual allocation of $971,431 in CDBG funds and $395,571 in HOME funds to fund the programs outlined above.

LEGAL REVIEW:

The City Attorney’s Office has reviewed and approved this agenda report and the attached resolution as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:

 Diversify, Stabilize and Increase Housing to Reflect Community Needs

CONCLUSION:

The draft 2024-2025 Annual Action Plan has been prepared according to HUD regulations and outlines how the City will utilize FY 2024-2025 CDBG and HOME funds to meet federal objectives and the goals of the City’s adopted five -year Consolidated Plan. Staff recommends that the City Council adopt the FY 2024-2025 Annual Action Plan and authorize its submittal to HUD.

In addition, sta ff is seeking Council direction regarding the potential changes to the public service application rating criteria as described in this report. If the City Council directs staff to work with the H&PSG committee to update the application process, staff will return with the updated application, guidelines and rating criteria after the H&PSG September meeting for City Council to consider on the consent calendar.

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ATTACHMENT 1
RESOLUTION NO. 2024-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING AND AUTHORIZING SUBMISSION OF THE 2024-2025

ANNUAL ACTION PLAN FOR THE APPLICATION AND EXPENDITURE OF

COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVES TMENT

PARTNERSHIPS ACT FUNDS TO THE UNITED STATES DEPARTMENT OF

HOUSING AND URBAN DEVELOPMENT

THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS AND DECLARES AS FOLLOWS:

WHEREAS, the City of Costa Mesa participates in the United States Department of Housing and Urban Development’s (“HUD”) Community Development Block Grant (CDBG) Program and also participates in HUD’s Home Investment Partnerships Program (HOME); and
WHEREAS, in order to receive annual allocations from these HUD programs, the City is required to prepare a five-year strategic plan outlining the use of the grants and strategic vision for affordable housing and community development in the City known as the Consolidated Plan; and
WHEREAS, the City’s current Consolidated Plan, was adopted on May 19, 2020, and will expire on June 30, 2025; and
WHEREAS, the federal regulations (Title 24 Code of Federal Regulations Part 91) delineate the required content of the Consolidated Plan, including an annual application and expenditure plan for CDBG and HOME funds, known as the Annual Action Plan; and
WHEREAS, the City is eligible to receive $971,431 in 2024-2025 CDBG funds, which can be used for social service grants, housing rehabilitation, public facilities and administration, and is also eligible to receive $395,571 in 2024-2025 HOME funds, which can be used for housing and administration as set forth in the 2024-2025 Annual Action Plan (Exhibit A); and
WHEREAS, the City made the 2024-2025 Annual Action Plan available for the required 30-day public review period between April 20, 2024 and May 21, 2024; and WHEREAS, the City has published a notice of a public hearing for the 2024-2025 Annual Action Plan in English and Spanish; and
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WHEREAS, in the 2024-2025 Annual Action Plan, the City has considered all public comments which have been received either in writing or at the public hearing.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES as follows:

SECTION 1. The City Council hereby approves the 2024-2025 Annual Action Plan, attached hereto as Exhibit “A” and incorporated herein by reference.

SECTION 2. The City Council hereby authorizes the City Manager, or the City Manager’s designee, to submit the 2024-2025 Annual Action Plan to HUD and execute all certifications and assurances contained therein to approve minor changes and provide additional information as may be required.

SECTION 3. The City Council hereby designates the City Manager, or the City Manager’s designee, as the City’s official representative to administer the programs and execute and submit all required agreements, certifications, and documents required by HUD. The City Council further authorizes the City Manager, or City Manager’s designee, to execute all subrecipient agreements with the nonprofit organizations receiving allocations of CDBG funds approved in the 2024-2025 Annual Action Plan.

PASSED AND ADOPTED this 21st day of May 2024.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

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

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Resolution No. 2024-xx Page 3 of 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Cl erk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2024-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 21st day of May 2024, by the following roll call vote, to witness:

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 22nd day of May 2024.

___________________________
Brenda Green, City Clerk
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Attachment XX
2024-2025 PUBLIC SERVICE GRANT APPLICATION SUMMARIES

HOMELESS SERVICES
Families Forward – Affordable Housing Support
Proposed Service: The program will provide housing support services for homeless Costa Mesa families with children
Amount Requested: $30,000 for staff salaries and support services CM Residents to be Assisted: 50
Committee Recommendation: $30,000 (Rating: 78/100) adjusted based on actual allocation $28,500 Human Options – Second Step Transitional Housing Program Proposed Service: Transitional housing & support services for survivors of domestic violence Amount Requested: $30,000 for Case Manager and Supervisor salaries CM Residents to be Assisted: 70
Committee Recommendation: $30,000 (Rating: 76.3/100) adjusted based on actual allocation $28,500

SENIOR SERVICES
City of Costa Mesa – Senior Social Services
Proposed Service: Counseling and referral services for seniors provided by social worker at the Costa Mesa Senior Center
Amount Requested: $30,000 for program staff salaries
CM Residents to be Assisted: 260
Committee Recommendation: $30,0000 (Unrated – City Program) Community SeniorServ – Meals on Wheels
Proposed Service: This senior meal program will provide home-delivered meals and quick assessment for homebound seniors to ensure health and safety
Amount Requested: $20,000 for raw food costs
CM Residents to be Assisted: 30
Committee Recommendation: $0 (Rating: 77.8/100 – other funding source available?) Community SeniorServ – Lunch Café
Proposed Service: The program provides seniors with hot lunch 5 days per week at the Costa Mesa Senior Center.

They also offer a “grab-n-go” option.

Amount Requested: $20,000 for raw food costs
CM Residents to be Assisted: 135
Committee Recommendation: $0 (Rating: 76.7/100 – other funding source available?) Trellis International – Labors of Love
Proposed Service: Manual labor projects to help low-income seniors Amount Requested: $30,000 for program salaries and supplies CM Residents to be Assisted: 30
Committee Recommendation: $21,575 (Rating: 76.2/100) adjusted based on actual allocation $20,500 ATTACHMENT 2
-1-
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Attachment XX

YOUTH SERVICES
Project Hope Alliance – In—Place Case Management for Homeless CM Students Proposed Service: Wrap-around services for NMUSD students experiencing homelessness. Funds will be used to provide one-on-one case management, mentoring, tutoring, college and FAFSA application assistance, job search assistance, basic needs support like food.

Amount Requested: $30,000 for program staff salaries
CM Residents to be Assisted: 125
Committee Recommendation: $25,000 (Rating: 80.2/100) adjusted based on actual allocation $23,750 Stand UP for Kids
Proposed Service: Program provides pre-employment counseling, mock interview skills training, job counseling, and job referrals for youth.

Amount Requested: $30,000 for program staff salaries
CM Residents to be Assisted: 15
Committee Recommendation: $0 (Rating: 71.7/100)
(Previously funded as YES – Youth Employment Services)
Boys & Girls Clubs of Central Orange Coast – Workforce Development Proposed Service: No-cost job readiness programming that prepares low-income Costa Mesa youth ages 16-24 to search, interview for, secure and maintain meaningful employment.

Amount Requested: $30,000 for program staff salaries
CM Residents to be Assisted: 1,000
Committee Recommendation: $15,000 (Rating: 70.5/100) adjusted based on actual allocation $14,464

LOW- AND MODERATE-INCOME SERVICES
Fair Housing Foundation – Fair Housing Program (HUD-Required – Paid out of Admin) Proposed Service: Program will provide fair housing education, counseling and enforcement services in compliance with federal program regulations
Amount Requested: $20,000 for program staff salaries and related program and admin costs CM Residents to be Assisted: 186
Committee Recommendation: $20,000
-2-
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Attachment XX
2024-2025 CDBG PUBLIC SERVICE GRANT
Housing & Public Service Grant Committee Recommendations -3-
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CDBG 3-Year Funding History
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Annual Action Plan
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ATTACHMENT 3
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Contents
Executive Summary ....................................................................................................................................... 3 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ........................................................................ 3 PR-05 Lead & Responsible Agencies – 91.200(b) ...................................................................................... 6 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................................................................... 7 AP-12 Participation – 91.105, 91.200(c) ................................................................................................. 15 Expected Resources .................................................................................................................................... 18 AP-15 Expected Resources – 91.220(c)(1,2) ........................................................................................... 18 Annual Goals and Objectives ...................................................................................................................... 22 Projects ................................................................................................................................................... 25 AP-35 Projects – 91.220(d) ..................................................................................................................... 25 AP-38 Project Summary .......................................................................................................................... 26 AP-50 Geographic Distribution – 91.220(f) ............................................................................................. 34 Affordable Housing ..................................................................................................................................... 35 AP-55 Affordable Housing – 91.220(g) ................................................................................................... 35 AP-60 Public Housing – 91.220(h) ........................................................................................................... 37 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ............................................................ 38 AP-75 Barriers to affordable housing – 91.220(j) ................................................................................... 41 AP-85 Other Actions – 91.220(k) ............................................................................................................ 43 Program Specific Requirements .................................................................................................................. 46

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Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Costa Mesa is a recipient of federal Community Development Block Grant (CDBG) and Home Investment Partnerships Grant (HOME) funds; these funds are awarded to the City by the U.S.

Department of Housing and Urban Development (HUD). As a recipient of CDBG and HOME funds, the City must prepare a five-year strategic plan known as the Consolidated Plan. The Consolidated Plan identifies and prioritizes housing and community needs and establishes five-year goals and objectives to address identified needs. The City's current Consolidated Plan was approved by the City Council on May 19, 2020 and covers Fiscal Year 2020-2021 through Fiscal Year 2024-2025.

The Annual Action Plan is the component of the Consolidated Plan that is revised annually. It links the goals and objectives identified in the City's 2020-2024 Consolidated Plan with the planned annual expenditure of CDBG and HOME funds over the next twelve months. The period covered by the 2024- 2025 Annual Action Plan begins July 1, 2024, and ends June 30, 2025. The City refers to this time frame as a Fiscal Year (FY).

HUD announced funding for FY2024-2025 has yet to be announced* on May 7, 2024. The City is receiving an allocation of $1,010,506 $971,431 in CDBG funds and $407,408 395,571 in HOME funds for FY 2024-2025. Additionally, $187,000 in prior year uncommitted CDBG funds and $54,702 in prior year uncommitted HOME funds, $30,900 in CDBG Program Income (PI) and $108,670 in HOME Program Income (PI) funds are available for programming. Program income is generated by the repayment of prior funded housing rehabilitation loans and is available to fund eligible activities. The City will use CDBG resources to fund capital improvements (e.g., public facilities or street improvements), code enforcement, social services, and program administration. HOME resources will be used to fund owner- occupied housing rehabilitation, affordable rental housing through Community Housing Development Organizations (CHDO), Tenant Based Rental Assistance (TBRA) and program administration. *Consistent with HUD guidelines, once HUD announced CDBG and HOME awards for FY 2024-2025, the City adjusted the funding for activities listed in the Annual Action Plan proportionally in order to equal the final grant awards, or as otherwise directed by the City Council. Adjustments are noted in red.

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2. Summarize the objectives and outcomes identified in the Plan Based on an analysis of housing and community needs, market analysis, and input from the community, the following five-year goals and priorities have been identified for implementation in the 2020-2024 Consolidated Plan:
• Goal 1: Housing Preservation - To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation
• Goal 2: Infrastructure and Facility Improvements - To enhance the suitability of the living environment through improvements to public infrastructures and facilities • Goal 3: Homeless Continuum of Care - To provide supportive services and housing assistance for those experiencing homelessness and near homelessness • Goal 4: Public Social Service - To provide services for low- and moderate-income persons, and those with special needs, including fair housing services • Goal 5: Program Administration - To provide administration of the CDBG and HOME programs, ensuring effective and delivery of programs and services and complying with all HUD program requirements
Activities funded with CDBG and HOME funds will address the goals and objectives identified in the City's Consolidated Plan.

3. Evaluation of past performance
FY 2023-2024 (the current fiscal year) is the fourth year of the City's 2020-2024 Consolidated Plan cycle; year-end program accomplishments are not available at this time; however, one-year accomplishment data for FY 2022-2023 is available. This information is provided in table format as Attachment 1.

4. Summary of Citizen Participation Process and consultation process For the preparation of the 2024-2025 Annual Action Plan, the following opportunities for public participation were taken:
• Housing and Public Services Grant Committee public meeting to receive input regarding public service needs and to prioritize funding for FY 2024-2025 public service grants (March 7, 2024) • Public Notice – 30-day comment period and public hearing • Public Hearing – City Council Public Hearing to receive additional public input and to approve the FY 2024-2025 Annual Action Plan (May 21, 2024).

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5. Summary of public comments
See Attachment 2.

6. Summary of comments or views not accepted and the reasons for not accepting them See Attachment 2.

7. Summary
The Action Plan serves to implement the Consolidated Plan objectives which were developed to address priority housing and community needs using federal resources (i.e., CDBG and HOME). The Annual Action Plan provides specific information regarding the resources and activities the City will utilize to address priority needs and specific objectives identified in the Consolidated Plan during the 12- month Action Plan period. The 2024-2025 Action Plan begins July 1, 2024, and ends June 30, 2025. The Annual Plan will also serve as the City's application to HUD for $1,010,506 $971,431 in CDBG and $407,408 395,571 in HOME funds for FY 2024-2025. The Action Plan is also the expenditure plan for HUD grant funds, prior year grant funds, and anticipated program income resources.

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PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator COSTA MESA Housing & Community Dev/Development Services HOME Administrator COSTA MESA Housing & Community Dev/Development Services Table 1 – Responsible Agencies

Narrative (optional)
The City's Housing and Community Development (HCD) Division of the Development Services Department is primarily responsible for preparing the Consolidated Plan, Annual Action Plan, and for the administration of CDBG and HOME funds.

Consolidated Plan Public Contact Information
Mikelle Daily, Grant Administrator: 77 Fair Drive, Costa Mesa, CA 92626 (714) 754-5678 - [email protected] DRAFT
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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The Annual Action Plan preparation process requires jurisdictions to contact and consult with other public and private agencies and residents when developing respective plans. For the FY 2024-2025 Annual Action Plan, the City consulted with the public and private agencies listed below. Also listed below are the steps taken by the City to solicit the input of community residents.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City of Costa Mesa does not own or manage public housing. Similarly, the City does not administer the Housing Choice Voucher or Section 8 Certificate rental assistance programs, however, Costa Mesa has an executed MOU with the Orange County Housing Authority (OCHA) to participate in their Housing Choice Voucher (HCV) Set-Aside Program, which makes available HCV’s only for participating jurisdictions. Rental assistance voucher/certificate programs are administered in the City of Costa Mesa by OCHA. The City is a member of the OCHA Cities Advisory Committee, which provides OCHA staff with direct input regarding program policies.

The City has been developing a focused response to the issue of homelessness for over a decade. The result is a comprehensive system of care aimed at providing a complete continuum of programs and services for residents experiencing homelessness and those at risk of homelessness. In Costa Mesa, the response to each and every person comes from a network of compassionate professionals with a heart to serve and a mindset to overcome barriers to self-sufficiency, one person at a time. The City’s task force is called the Network for Homeless Solutions (NHS) which is comprised of representatives of various City departments, nonprofit service agencies, and representatives of faith-based service providers. The main focus of the NHS is to find workable solutions to address the needs of those experiencing and at-risk of homelessness, especially those with close ties to Costa Mesa. Additionally, the City works closely with other Orange County HUD-grantee communities to develop regional plans and share program management data. The City also has a strong partnership with local behavioral health providers like Share Our Selves (SOS) and College Hospital, who participate in the City’s Network for Homeless Solutions and attend monthly NHS meetings.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

Since 2014, the Network for Homeless Solutions (NHS) has directly addressed homeless issues in Costa Mesa. The NHS participates in the comprehensive, coordinated and regional Continuum of Care strategy DRAFT
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with the County of Orange, local governmental agencies, nonprofit agencies, faith-based service providers, the homeless and formerly homeless, business leaders and schools to find solutions for those experiencing and at-risk of homelessness. The NHS is focused on establishing direct links to services for the homeless, especially those with strong ties to Costa Mesa, facilitating access to services and housing options. The NHS also serves as a liaison to the business community and resident groups.

In addition, the City’s outreach team, the Costa Mesa Bridge Shelter and the nonprofit shelter operator, Mercy House, are an Access Point for the County of Orange. As an Access Point, the City collects and shares information about individuals who access services with the Continuum of Care. The City and its Network for Homeless Solutions team regularly consults with other Orange County cities, such as the City of Santa Ana and Garden Grove that participate in the Continuum of Care and provide shelter or housing vouchers to homeless individuals.

Trellis International (Trellis) receives funding from the City to administer a workforce development and life skills training program called the Community Impact Team (CIT). The CIT provides employment services and transitional employment opportunities for homeless and extremely low-income Costa Mesa residents seeking to reenter the workforce.

In June 2023, City Council approved a capacity increase of 16 beds for the Costa Mesa Bridge Shelter, bringing the Shelter’s total capacity to 85 beds. In March 2023, the City formalized a grant of $4.2M in Behavioral Health Bridge Housing (BHBH) funds from the Orange County Health Care Agency to add 15 behavioral health beds and associated services at the Shelter. The primary focus of the BHBH funds is to assist individuals experiencing homelessness who have serious behavioral health conditions that prevent them from accessing resources and securing permanent housing. This increase will bring the Shelter’s total capacity to 100 beds. Additionally, Costa Mesa was selected as one of two cities by the CalOptima Board of Directors to receive their innovative Street Medicine Program, which delivers primary and behavioral health care to both sheltered and unsheltered homeless people. Street Medicine is projected to launch at the Bridge Shelter in August 2024.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City is not a recipient of Emergency Solutions Grant (ESG) funds; therefore, it does not assist the OC CoC with determining ESG allocations, evaluating the outcomes, or developing policies and procedures for administering the regional Homeless Management Information System (HMIS). However, as stated above, the City is an Access Point and active participant in the comprehensive, coordinated and regional Continuum of Care strategy in Orange County.

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2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities

See Table 2 - Next Page
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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Orange County Housing Authority Agency/Group/Organization Type PHA
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
OCHA provided data regarding households receiving HUD rental assistance and regarding households on the waitlist for housing assistance. The Orange County Housing Authority (OCHA) re-opened the wait list for Section 8 Vouchers in September 2023 and the City helped advertise to residents. 2 Agency/Group/Organization City of Costa Mesa
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Strategy
Non-Homeless Special Needs
Anti-poverty Strategy
Lead-based Paint Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Various City departments, commissions, Housing & Public Service Grants Committee, and City Council provided a variety of data and information. They also played a key role in identifying priorities for the allocation of HUD funds. 3 Agency/Group/Organization Fair Housing Foundation
Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Impediments for Fair Housing
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Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
In Person and Virtual Meetings/Workshops/Quarterly Reporting. Provided data regarding fair housing issues in the community and input regarding impediments to fair housing, and assisted in developing action steps to address impediments to fair housing.
4 Agency/Group/Organization Families Forward
Agency/Group/Organization Type Services - Housing
Services-homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs - Families with children
Homelessness Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Monthly and Quarterly Reporting. Agency helped identify needs and assisted with the implementation of the City's homeless service/housing strategy with a focus on families with children experiencing homelessness.
5 Agency/Group/Organization Project Hope Alliance
Agency/Group/Organization Type Services-Children
Services-homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs - Families with children
Homelessness Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Monthly & Quarterly Reporting. Agency helped identify the needs of school-age children and provided input on the gaps in services for McKinney-Vento youth and their families.

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6 Agency/Group/Organization Trellis International
Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
Services-homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Non-Homeless Special Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Agency provides help to seniors needing assistance with manual labor through their Labors of Love program and also provides staffing to our Community Impact Team that serves the needs of our homeless community. Agency provides monthly and quarterly reporting on the programs and services they provide to residents. 7 Agency/Group/Organization Community SeniorServ
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Quarterly reporting. Agency helped identify needs and provided input regarding the City's special needs populations, specifically seniors and frail elderly. Agency also provides information regarding the price and availability of food, volunteers, and transportation for services to seniors.
9 Agency/Group/Organization Human Options, Inc.

Agency/Group/Organization Type Services - Victims
What section of the Plan was addressed by
Consultation?
Homeless Needs - Families with children
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Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Agency helped identify needs and provided input regarding the City's special needs populations, specifically domestic violence survivors.

Identify any Agency Types not consulted and provide rationale for not consulting The City made an effort to have an open consultation process. No agency/service type was knowingly excluded from the process.

Any agency or organization that was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Economic & Development Services Department, Housing and Community Development Division at 714-754-5678 or at [email protected].

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Orange County 211
Provides regional and local point in time homeless survey data, development of the regional 10-Year Plan to End Homelessness, and development of the regional Discharge Plan
City of Costa Mesa
Housing Element City of Costa Mesa Provides housing priorities and program goals City of Costa Mesa Capital
Improvement Plan City of Costa Mesa Identifies priority capital improvement projects which may be CDBG-eligible 5-Yr. & 1-Yr. PHA Plan Orange County Housing
Authority
Identifies OCHA resources to address the housing needs of lower-income renter households in the County and City
Analysis of Impediments
to Fair Housing
Orange County HUD Grantee
Cities and the County of Orange
Countywide document that identifies fair housing impediments within participating cities and outlines a plan to address fair housing issues Table 3 – Other local / regional / federal planning efforts

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Narrative (optional)
The City has a monthly NHS meeting with City staff, representatives of service providers and nonprofit organizations, faith-based organizations and formerly homeless residents to discuss the City’s need, approach and strategy for outreach and support of individuals experiencing or at-risk of homelessness. The City’s Neighborhood Improvement Manager is a member of the CoC Community Forum, attends CoC Board Meetings as well as the Office of Care Coordination Housing Opportunities Committee and shares the information gained from these meetings and membership with the NHS. The Housing & Community Development Division works with subrecipients of CDBG and HOME funds to ensure a coordinated effort among service agencies in the City to address the needs of Costa Mesa residents, including chronically homeless individuals, at-risk families with children, seniors, veterans, unaccompanied youth, and persons who were recently homeless, but now live in permanent housing. To promote economic opportunities for low-income residents, the City partners with subrecipient nonprofit organizations providing career planning and job training for at-risk youth. Additionally, the City ensures that information is disseminated through appropriate channels to connect job opportunities for low-income individuals with HUD-assisted projects consistent with the objectives of Section 3 of the Housing and Community Development Act of 1968.

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AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

The City of Costa Mesa’s Housing and Public Service Grants Committee meets twice a year with further meetings scheduled on an as-needed basis to help promote community understanding of the activities funded by the U.S. Housing and Urban Development Department (HUD) and Community Development Block Grants (CDBG) with a focus on social service grants. Every March, members of the Committee hear presentations from several nonprofit organizations to determine which will receive CDBG funds in the upcoming fiscal year. Committee recommendations are then presented to the City Council in May. During the March meeting, nonprofit organizations provide information about the services they provide and the gaps in services that exist for Costa Mesa low-income residents and those experiencing homelessness in Costa Mesa. The Housing and Public Service Grants Committee meeting is a public meeting where citizen participation is encouraged during public comment. Members of the public have a second opportunity to participate in the planning process during the Public Hearing for the Annual Action Plan at City Council or by providing comment on the posted Draft Annual Action Plan during the 30-day comment period prior to the Public Hearing. Efforts made to broaden citizen participation this year included advertisement of the draft action plan availability by the new Community Relations Manager and Government Affairs Manager as well as through the City’s online advertising platforms.

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Citizen Participation Outreach
Sort Orde
r
Mode of Outrea
ch
Target of Outrea
ch
Summary of
response/attendan
ce
Summary of
comments receiv
ed
Summary of commen
ts not accepted
and reasons
URL (If applicable)
1 Public Meeting
Non-
targeted/broad
community
Housing and Public
Services Grant
Committee – 6
committee
members in
attendance,
discussed priority
public service needs
(3/7/24)
9 representatives
of nonprofit
organizations
spoke in support
of grant
applications
submitted for
CDBG funding
None NA
2 Newspaper Ad
Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broad
community
30-day public
comment period
(4/20/24 - 5/20/24)
None None NA
3 Public Hearing
Non-
targeted/broad
community
5/21/24 Regular
City Council
Meeting
See Attachment 2 None NA
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Sort Orde
r
Mode of Outrea
ch
Target of Outrea
ch
Summary of
response/attendan
ce
Summary of
comments receiv
ed
Summary of commen
ts not accepted
and reasons
URL (If applicable)
4 Internet
Outreach
Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broad
community
See Attachment 2 None None

www.costamesaca.g
ov

Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City will receive an allocation of $1,010,506 $971,431 in CDBG funds and $407,408 $395,571 in HOME funds for FY 2024-2025. Additionally, $187,000 in prior year uncommitted CDBG funds and $54,702 in prior year unused HOME admin funds, $30,900 in CDBG Program Income (PI), and $108,670 in HOME Program Income (PI) funds are available for programming. The City's application for funds is in the federal Standard Form 424 (SF-424).

Fluctuations in CDBG and HOME funding make it difficult to estimate the amount available over the five years of the Consolidated Plan.

Anticipated funds that may be available to implement the Consolidated Plan are remaining one-time CDBG-CV funds to prepare, prevent or respond to the impacts of the Coronavirus; one-time HOME-ARP funds, Housing Authority (former redevelopment successor agency) funds, the general fund for the homeless shelter, and housing voucher/certificate resources via OCHA.

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Anticipated Resources
Program Source of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
$1,010,506
$971,431 $30,900 $187,000
$1,228,406
$1,189,331 $0
Remainder estimate is
zero because this is the
last year of the Con Plan.

HOME public -
federal
Acquisition
Homebuyer
assistance
Homeowner rehab
Multifamily rental
new construction
Multifamily rental
rehab
New construction
for ownership
TBRA
$407,408
$395,571 $108,670 $54,702
$570,780
$558,943 $0
Remainder estimate is
zero because this is the
last year of the Con Plan.

Table 5 - Expected Resources – Priority Table

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how DRAFT
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matching requirements will be satisfied
For the foreseeable future, the City will continue to allocate General Fund and the local Housing Authority (as the City's Successor Agency) resources for homeless services. Additionally, the City has a partnership with Newport Beach to support the ongoing operations of the Bridge Shelter that was previously a vacant warehouse in 2019. Primarily CDBG funding was used for the rehabilitation of the warehouse in 2019. The City also has a small CalHome owner-occupied housing rehabilitation loan program. CalHome-funded rehab loans are leveraged with HOME funds, which provides a source of match for the City's HOME program. If available, the City will use CalHome to fund rehab loans during FY 2024- 2025. The CDBG program does not have a match requirement. Depending on the financing structure of a given activity, it may be advantageous for the City to use CDBG and HOME funds to leverage appropriate state, local and private resources. An example of such a project is the Motel 6 Housing Project, a conversion from a 94 guest room motel into 87 units of permanent affordable housing for veterans, senior citizens and other individuals previously experiencing homelessness. The project includes State funding from the California Department of Housing and Community Development (HCD) Homekey Program, VASH Vouchers and LMIHAF funds from OCHA, MHSA funds from Orange County, and American Rescue Plan Act (ARPA) funds from the City in addition to City HOME funding. The City closed on financing for this 87-unit Permanent Supportive Housing Project during FY 2022-2023 and leased-up the ten HOME units in FY 2023-2024. All 40 units included in the first phase of the project will be leased-up by the end of FY 2023-2024. This project and similar projects provide additional sources of match for the City’s HOME program.

The final Action Plan containing the final adjusted funding allocations per City Council on May 21, 2024 to projects and activities will be posted in the Annual Action Plans section on the City’s website at: Housing and Community Development | City of Costa Mesa (costamesaca.gov)

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If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Costa Mesa is considered a built-out community with little vacant land available for new development.

The City has begun to recycle land to accommodate growth. The City's Housing Element identifies City- owned and State-owned properties, and considers various options for the sites. Development opportunities are identified in the Housing Element. The most recent Housing Element covers years 2021 through 2029 and includes updates to the development opportunities to address the needs identified in the Consolidated Plan. For example, the Housing Element identifies the City’s Senior Center property as a potential opportunity for redevelopment to accommodate affordable housing units for seniors.

In addition, the Housing Element identifies the State’s Fairview Developmental Center site as a potential housing opportunity site. In December 2022, an agreement between the City and the State was signed which provided $3.5 Million in State funds to the City for land use planning and zoning at the Fairview Developmental Center (FDC) site focused on accommodating housing for households at all income levels, with a priority for projects that provide housing for individuals with developmental disabilities.

Meetings have been conducted for residents to provide input regarding community needs and values for the FDC site. The City Council held a study session on affordable housing in December 2023. City Council members expressed a desire to explore increasing the number of housing units on the FDC site beyond the 2,300 units identified in the Housing Element.

The City purchased a warehouse for the Bridge Shelter in 2019 to provide up to 72 emergency shelter beds for adult men and women experiencing homelessness. The shelter has since been expanded to accommodate 88 shelter beds. Additional behavioral health beds expected to be added to the shelter in fiscal year 2024-2025 will bring the total capacity to 100 shelter beds, further addressing the priority needs identified in the City's Consolidated Plan.

Discussion
Funding resources to implement the City's 2024-2025 Annual Action Plan are limited. For FY 2024-2025, the City will receive an allocation of $1,010,506 $971,431 in CDBG funds and $407,408 $395,571 in HOME funds. Prior year funds and program income for CDBG and HOME are also available. HOME housing rehabilitation loan repayments have provided the City with additional funding in the past; however, this source of revenue is susceptible to the fluctuations of the economy and is unpredictable.

The City will continue to support OCHA's efforts to secure new rental assistance resources and provide HOME funded tenant based rental assistance as long as funding is available. For the foreseeable future the City will continue to support homeless service programs serving individuals with strong ties to Costa Mesa with local funds. City funds from Costa Mesa, Newport Beach and the State will be used to operate the homeless shelter.

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Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Housing
Preservation
2020 2024 Affordable
Housing
Citywide Housing
Preservation
CDBG: $385,000
(code
enforcement)
HOME: $325,337
$314,684 (264,226
$255,349 rehab +
61,111 $59,335
CHDO)
Rental units rehabilitated: 1
Household Housing Unit
Homeowner Housing
Rehabilitated: 11 Household
Housing Unit
Housing Code
Enforcement/Foreclosed
Property Care: 200 Household
Housing Unit
2 Infrastructure
and Facility
Improvements
2020 2024 Non-Housing
Community
Development
Citywide
CDBG
Eligible
Areas
Public Facilities
and
Infrastructure
CDBG: $439,730
$414,331 (roof
senior center)
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 3,410 Persons Assisted
3 Homeless
Continuum of
Care
2020 2024 Homeless Citywide Homeless
Services and
Housing
CDBG: $60,000
$57,000 (Families
Forward, Human
Options)
HOME: $150,000
(TBRA)
Tenant-based rental assistance /
Rapid Rehousing: 10 Households
Assisted
Homeless Person Overnight
Shelter: 70 Persons Assisted
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
4 Public Social
Services
2020 2024 Non-Homeless
Special Needs
Citywide Public Services CDBG: $91,575
$88,714 (pub svcs -
homeless CoC)
Public service activities other
than Low/Moderate Income
Housing Benefit: 1,645 Persons
Assisted
5 Program
Administration
2020 2024 Program
Administration
Citywide Program
Administration
and Fair Housing
CDBG: $202,101
$194,286
HOME: $95,443
$94,259 (FY24-25 +
previous years)
N/A
Table 6 – Goals Summary

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Goal Descriptions

1 Goal Name Housing Preservation
Goal
Description
To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation 2 Goal Name Infrastructure and Facility Improvements
Goal
Description To enhance the suitability of the living environment through improvements to public infrastructures and facilities 3 Goal Name Homeless Continuum of Care
Goal
Description To provide supportive services and housing assistance for the homeless and near homeless 4 Goal Name Public Social Services
Goal
Description To provide services for low- and moderate-income persons and those with special needs 5 Goal Name Program Administration
Goal
Description
To provide administration of the CDBG and HOME programs, including fair housing services and ensuring effective and efficient delivery of programs and services and complying with all HUD program requirements

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Projects
AP-35 Projects – 91.220(d)
Introduction
The City is allocating 100 percent of its non-administrative CDBG and HOME funds for FY 2024-2025 to projects and activities that benefit low- and moderate- income people throughout the City.

Projects
# Project Name
1 CDBG Administration
2 CDBG Fair Housing
3 CDBG Housing Rehabilitation Administration
4 Families Forward
5 Human Options
6 Project Hope Alliance
7 Trellis International – Labors of Love
8 Boys & Girls Club of Central Orange Coast (YES)
9 City of Costa Mesa Senior Social Services
10 CDBG Special Housing Code Enforcement
11 CDBG Capital Improvements Project
12 HOME Administration
13 HOME Affordable Housing (CHDO)
14 HOME Housing Rehabilitation
15 HOME Tenant Based Rental Assistance (TBRA)
Table 7 - Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City recognizes that special needs populations (i.e., seniors, disabled, and households with extremely low-income) are more likely at risk to become homeless because they have limited incomes and have other issues that require housing and supportive services; therefore, the City considers services for those already homeless a high need to merit funding. The primary obstacles to meeting the underserved needs of low- and moderate- income residents include a lack of funding from federal, state and local sources, and the high cost of housing combined with the low vacancy rate in Costa Mesa and throughout Orange County.

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AP-38 Project Summary
Project Summary Information
1 Project Name CDBG Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Program Administration
Funding $182,101 $174,286
Description CDBG program oversight
Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
N/A
Location Description 77 Fair Drive, Costa Mesa, CA
Planned Activities Program oversight and coordination
2 Project Name CDBG Fair Housing
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Program Administration/Fair Housing
Funding $20,000
Description Fair housing outreach, education and enforcement services Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
186 individuals
Location Description Citywide
Planned Activities Community outreach, education, and enforcement of fair housing laws
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3 Project Name CDBG Housing Rehabilitation Administration Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding $50,000
Description CDBG funds staff costs associated with the direct delivery of owner-occupied housing rehabilitation loans and grants
Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
N/A - The number of households to be assisted is accounted for under the HOME program - this activity is to pay for a portion of the administrative expenses associated with the HOME-funded Housing Rehabilitation Program
Location Description 77 Fair Drive, Costa Mesa, CA
Planned Activities Staff costs associated with the delivery of housing rehabilitation loans and grants
4 Project Name Families Forward
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Funding $30,000 $28,500
Description Housing Supportive Services
Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
50 individuals
Location Description Citywide
Planned Activities The program will provide housing support services for homeless Costa Mesa families with children
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5 Project Name Human Options
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Funding $30,000 $28,500
Description Transitional Housing and Support Services
Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
70 individuals
Location Description Citywide
Planned Activities Transitional housing and support services for survivors of domestic violence
6 Project Name Project Hope Alliance
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding $25,000 $23,750
Description Case management and wrap-around services for NMUSD students experiencing homelessness including one-on-one case
management, mentoring, tutoring, college and FAFSA application assistance, job search assistance, basic needs support like food Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
125 individuals
Location Description Citywide
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Planned Activities CDBG funds will support the salaries of program staff to provide one-on-one case management, mentoring, tutoring, college and FAFSA application assistance, and job search assistance 7 Project Name Trellis International – Labors of Love
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding $21,575 $20,500
Description Manual labor projects to help low-income seniors Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
30 individuals
Location Description Citywide
Planned Activities CDBG will fund staff salaries and supplies to oversee volunteers and carry-out the program
8 Project Name Boys and Girls Club of Central Orange Coast (previously YES) Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding $15,000 $14,464
Description No-cost job readiness programming that prepares low-income Costa Mesa youth ages 16-24 to search, interview for, secure and maintain meaningful employment
Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
1,000 individuals (youth age 16-24)
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400

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Location Description Citywide
Planned Activities Workforce Development
9 Project Name City of Costa Mesa Senior Social Services Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding $30,000
Description Counseling and case management for seniors
Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
260 seniors
Location Description Program available citywide but based out of the Costa Mesa Senior Center located at 695 W. 19th Street, Costa Mesa, CA.

Planned Activities Funding for counseling and case management for seniors 10 Project Name CDBG Special Housing Code Enforcement
Target Area CDBG Eligible Areas
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding $385,000
Description Enforcement of housing and building codes and connecting residents with housing-related resources
Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
200 Housing Units
Location Description 77 Fair Drive, Costa Mesa, CA – City Hall DRAFT
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Planned Activities Inspection and enforcement of housing and building codes in CDBG eligible declining/deteriorating areas combined with connecting residents with housing-related resources to halt the decline of the area.
11 Project Name CDBG Capital Improvement Project
Target Area CDBG Eligible Areas
Goals Supported Infrastructure and Facility Improvements Needs Addressed Public Facilities and Infrastructure
Funding $439,730 $414,331
Description Improve public facilities and infrastructure to benefit low- and moderate- income residents or those presumed under HUD
regulations to be low- and moderate- income such as the elderly and disabled adults. This includes facilities owned and operated by the City of Costa Mesa that are open and available to residents as well as facilities owned and operated by nonprofit organizations servicing the public that are open to the public during normal business hours.

Target Date 06/30/2026
Estimate the number/type of
families that will benefit
from the proposed activities
3,410 individuals (each year)
Location Description CDBG Eligible Areas including Senior Center at 695 W. 19th Street, Costa Mesa, CA
Planned Activities Roof replacement on the Senior Center located at 695 W. 19th Street, Costa Mesa, CA
12 Project Name HOME Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Program Administration
Funding $95,443 $94,259
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Description Home funds for program oversight and coordination Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
N/A
Location Description 77 Fair Drive, Costa Mesa, CA
Planned Activities HOME Program Oversight and Coordination 13 Project Name HOME Affordable Housing (CHDO)
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding $61,111 $59,335
Description HOME-CHDO funds reserved for eligible housing project (to be determined)
Target Date 06/30/2026
Estimate the number/type of
families that will benefit
from the proposed activities
1 housing unit. Goal entered for data input purposes only Location Description TBD
Planned Activities TBD
14 Project Name HOME Housing Rehabilitation
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding $264,226 $255,349
Description HOME funds for owner-occupied housing rehabilitation loans and grants
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Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
11 low- and moderate- income homeowners (1 loan and 10 grants) Location Description Citywide
Planned Activities Housing rehabilitation loans and grants to address deferred property improvements and building code deficiencies
15 Project Name HOME Tenant Based Rental Assistance (TBRA) Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Funding $150,000
Description The City will use HOME funds for tenant based rental assistance to assist low-income residents with rental assistance to increase housing affordability
Target Date 06/30/2025
Estimate the number/type of
families that will benefit
from the proposed activities
10 low-income households with minor children
Location Description Citywide
Planned Activities HOME funds will be used to provide tenant-based rental subsidies
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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed CDBG and HOME funds will focus on programs that serve eligible low-income residents regardless of where they live. The identified facility improvement is to provide a new roof to the Senior Community Center, which provides all residents age 50+ with a variety of services and activities. The Senior Community Center is located at 695 19th Street in Costa Mesa in the Southwest portion of the City, where the area surrounding it is primarily residential (29,900 residents) and 77% of those residents (23,045) are low- and moderate- income according to current HUD data available. Over 3,400 unduplicated seniors are served by the Senior Center each year. The City's CDBG map is included as Attachment 3.

Geographic Distribution
Target Area Percentage of Funds
Citywide 33
CDBG Eligible Areas 67
Table 8 - Geographic Distribution

Rationale for the priorities for allocating investments geographically HUD funding will primarily be allocated on a citywide basis as the City's primary intent is to serve eligible Costa Mesa households in need of housing and services regardless of where they live. As the City's CDBG-eligible areas tend to be older sections of the City, area-wide activities will help to improve and sustain these neighborhoods and encourage property owners to also invest in their properties.

Discussion
As indicated above, CDBG and HOME funds will be focused on programs that serve eligible residents regardless of where they live. It is also expected that the City's investment in neighborhoods will create a synergy whereby other property owners will also invest in their homes and community.

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
During FY 2024-2025, proposed activities to be funded with CDBG and HOME funds will meet the housing needs of the following households:

One Year Goals for the Number of Households to be Supported Homeless 4
Non-Homeless 11
Special-Needs 1
Total 16
Table 9 – One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 10
The Production of New Units 0
Rehab of Existing Units 11
Acquisition of Existing Units 0
Total 21
Table 10 – One Year Goals for Affordable Housing by Support Type

Discussion
The City will focus FY 2024-2025 HOME funds on the rehabilitation of existing owner-occupied housing units, TBRA program and affordable housing (if a CHDO project is identified). The grant amounts available through the rehabilitation program for mobile homes will increase to $15,000 per household and grants for single family residences will be increased to $20,000 per household to keep up with inflation, increased costs for construction materials and labor, and the after-effects of the pandemic.

While not the program's primary focus, some special-needs households (seniors and disabled) may be assisted during the year via the City's Housing Rehabilitation Program. Since 2020, the City has allocated nearly $2.7M to provide rapid rehousing and homelessness prevention services through City-wide rental assistance programs. It is anticipated that OCHA will continue to provide rental assistance to approximately 586 Costa Mesa renter households during FY 2024-2025.

The City Council of Costa Mesa has a goal to diversify, stabilize and increase housing to reflect community needs. In an effort to bring this goal into reality, the City previously contributed $5,850,000, including $1,500,000 in HOME funds, toward a Homekey motel conversion project to create 87 units of permanent affordable housing in Costa Mesa. That project is now known as Mesa Vista and is currently leasing-up the completed units. A second Homekey project located in Costa Mesa was identified during DRAFT
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the Homekey Round 3 funding period. The City approved an allocation of $4,000,000 in LMIHAF and ARPA funds to a motel conversion project for the Travelodge North, located at 1400 Briston Street.

When complete, the project will provide an additional 76 units of permanent supportive housing in Costa Mesa, further meeting the goal of diversified, stabilized and increased housing for the Costa Mesa community.

The City has a partnership with Families Forward, an organization with an Affordable Housing Program that ends homelessness and safely houses approximately 50 extremely low-income individuals with ties to Costa Mesa each year. Families Forward owns 16 units across two developments in Costa Mesa. In FY 2023-2024 the City contributed $850,000 in ARPA funds to their second affordable housing project, the Bungalows. This is an 8-unit affordable housing project for households with minor children. The first affordable housing project purchased by Families Forward in Costa Mesa in 2019 is also an 8-unit complex serving families with minor children. CDBG funds provide services to the residents of the affordable housing projects that Families Forward has in Costa Mesa.

Families Forward has a commitment to serving low-income families, ending homelessness and preserving affordable housing in Costa Mesa and throughout Orange County. Families Forward was chosen to be the administrator for the City of Costa Mesa’s TBRA program in 2019, and continues to administer the TBRA program which helps approximately 10 families with children each year. In addition to providing affordable housing, Families Forward provides TBRA participants with supportive services and case management.

FY 2024-2025 HOME CHDO funds are included in the Annual Action Plan for Affordable Housing projects; however, no specific project has been identified at this time.

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AP-60 Public Housing – 91.220(h)
Introduction
Costa Mesa does not own or manage public housing.

Actions planned during the next year to address the needs to public housing Not applicable.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable.

Discussion
Not applicable.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
As outlined in the 2020-2024 Consolidated Plan, the City’s homeless strategy is to support programs that prevent homelessness by providing safety net services. These programs will help households, especially extremely low-income households, maximize the amount of income they have available for housing.

Additionally, both HUD and City resources will be allocated to provide access to a continuum of services, including the Costa Mesa Bridge Shelter and housing to assist those experiencing homelessness and with strong ties to the community.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Costa Mesa Network for Homeless Solutions (NHS) is a ten-person team who meet people where they are to forge genuine relationships, make connections to services, and, ultimately, facilitate their transition into permanent housing. Partnering agencies are CityNet, PATH (Orange County North and Central Service Planning Area (SPA) contracted outreach provider), Save Our Selves (SOS), Lighthouse Church, Mercy House, Trellis, Chrysalis, Project Hope Alliance, Meals on Wheels OC, Families Forward, Serving People In Need (SPIN), and Someone Cares Soup Kitchen. The City has been and continues to use one-time CDBG-CV funds to respond to the increased outreach needs of those experiencing or at-risk of homelessness due to the impacts of the Coronavirus pandemic.

Addressing the emergency shelter and transitional housing needs of homeless persons The City owns and operates a 72-bed emergency shelter, soon to be expanded to accommodate 100 beds including 15 for individuals experiencing homelessness with behavioral health needs. The facility is funded in partnership with the City of Newport Beach. Mercy House, a nonprofit organization, is the Shelter Operator and Bracken’s Kitchen, a nonprofit organization, operates the full-service commercial kitchen. Shelter partners are Mercy House, Bracken’s Kitchen, Trellis, Orange County Housing Authority (OCHA), Santa Ana Housing Authority (SAHA), Anaheim Housing Authority (AHA) and Garden Grove Housing Authority (GGHA). The City utilized CDBG funds to repurpose a warehouse into the shelter facility in 2019. Since that time, the Bridge Shelter has assisted over 1,000 individuals with emergency shelter and associated services including housing 162 shelter participants and housing 179 individuals through street outreach for a total of 341 housed between April 14, 2019 and March 2024.

FY 2024-2025 CDBG public services funding is allocated for a second step transitional housing program through Human Options, an organization that serves domestic violence survivors.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to DRAFT
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permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The Network for Homeless Solutions (NHS) includes a ten-person team of Outreach Workers, a 70- bed emergency shelter, and the provision of affordable/supportive housing. Each one of these components seeks to engage with those experiencing homelessness to ensure full access to all available resources and a smooth transition into permanent housing. This constant engagement shortens the length of homelessness and ensures those that have secured permanent housing are able to thrive in their new environments. Since April 2019, the City of Costa Mesa has assisted 341 formerly homeless people to secure permanent housing. Additionally, the City utilizes HOME funds to provide tenant based rental assistance to low and very-low income households both experiencing and at-risk of homelessness. The City is committed to increasing access to affordable housing units through advocacy for and development of affordable and supportive housing units. The City’s first Permanent Supportive Housing project recently filled 10-HOME funded units with formerly homeless residents. The Families Forward Bungalows affordable housing project continues to house 8 households with minor children. The City’s COC partners include Mercy House, Families Forward, Illumination Foundation, Jamboree Housing, Trellis, CityNet, SPIN, Orange County Office of Care Coordination, Orange County Housing and Community Development, HUD, State HCD, and Orange County Housing Finance Trust. Additionally, the City has allocated the majority of its HOME-ARP grant funds for supportive services including legal services, case management services and outreach services for individuals experiencing or at risk of homelessness in an effort to prevent homelessness and/or shorten the period of time that individuals or families experience homelessness.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The City's homeless strategy is based on the proposition that it is less expensive and disruptive for a household to remain housed in their existing home than to be rehoused. To this end, the City will focus its resources on agencies that provide various safety-net services to prevent households from becoming homeless. The City will support programs that provide low-cost meals, counseling, and employment/job skills development services for lower-income individuals. Safety-net services allow households to save a portion of income previously spent on food, clothes, etc. and preserve their housing. Additionally, The City has also used and continues to use (until funds are expended) CDBG-CV and ARPA funds to provide emergency rental assistance to low-income residents facing financial hardships as a result of the DRAFT
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Coronavirus pandemic and its subsequent impact to the economy. Since 2020, the City has allocated nearly $2.7M to provide rapid rehousing and homelessness prevention services through City-wide rental assistance programs.

Additionally, on November 7, 2023, the City Council adopted an urgency Ordinance for Just Cause Residential Tenant Protections. $250,000 in ARPA funds were allocated to provide eviction and rental- related legal services including, but not limited to court filings, to enforce the eviction protection provisions of the Costa Mesa Municipal Code regarding unlawful acts in connection with no-fault just cause evictions. Three full time equivalent (FTE) positions were added to implement, monitor and enforce the subject Ordinance including two community outreach workers. The City has implemented a Community Outreach and Education Plan to inform both owners and tenants of their rights regarding evictions as well as the resources available to them. The City funds Project Hope Alliance (PHA) with CDBG and HOME-ARP funds to provide on- and off-campus case management of homeless and at-risk Newport Mesa Unified School District (NMUSD) students and their families. The services provided by PHA are vital to preventing both current and future homelessness for Costa Mesa residents.

Discussion
The City has a well-developed strategy to address homelessness in the community. This strategy includes outreach and assessment services for homeless and chronic homeless individuals. Program staff will attempt to link individuals to appropriate housing, support services, and public assistance programs (e.g., VA benefits, SSI). To undertake this effort, the City partners with local nonprofit service providers and community-based volunteers. Based on assessments, individuals or households are referred to appropriate housing/service providers. City staff will coordinate the delivery of services and housing with providers to reduce the number of homeless individuals in the community. Both HUD and City funds will be used to carry out these activities, including outreach, emergency shelter, and the provision of affordable and supportive housing.

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AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

A strategy to address barriers to affordable housing and actions to overcome these barriers is provided in the City's Housing Element and Consolidated Plan. The current Housing Element covers the eight-year planning cycle of 2021-2029 and provides updated strategies to address barriers to affordable housing since the completion of the consolidated planning process. The City will continue efforts to address these barriers, incorporating the updated strategies, during the 2024-2025 Program Year.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
According to the City's Housing Element, governmental agencies' actions or policies can impact the private sector's ability to provide adequate housing to meet consumer demands. Local governments exercise regulatory and approval powers that directly impact residential development within their respective jurisdiction. These powers establish the location, intensity, and type of units that may or may not be developed. The City's General Plan, zoning regulations, project review and approval procedures, development, and processing fees all play important roles in determining the cost and availability of housing opportunities in Costa Mesa. Implementation actions identified in the City’s current Housing Element and progress reports to address the negative effects that serve as barriers to affordable housing include:

The City plans to regularly monitor deed-restricted units that have the potential of converting to market- rate during the planning period, work with the property owner on potential extensions past the current agreement to extend the affordability period, and comply with noticing requirements and coordinate with qualified entities to preserve at-risk units.

The City initiated the affordable housing ordinance effort in 2021, retaining Keyser Marston Associates (KMA). Since then, KMA have completed the required Financial Evaluation and the City has conducted 17 stakeholder meetings, two joint Council/Planning C ommission Study Sessions and completed the draft Ordinance. The Ordinance was presented to the Planning Commission on November 13, 2023 with a second discussion occurring on December 11, 2023. The Affordable Housing Ordinance (Ordinance No. 2024-02) was approved for first reading by City Council on April 2, 2024.

The Affordable Housing Ordinance will require residential developments with 50 units or more to include an affordable housing component. The residential development must set aside a portion of the residential units as affordable, or provide a land dedication, or construct off-site affordable units, or pay in-lieu fees.

To implement the Affordable Housing Program, the City would rezone non-residentially zoned properties located along major corridors to allow for higher density housing with reduced parking requirements and DRAFT
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the allowance of affordable rents for low-income units to be calculated based on 80% of the area median income (AMI) where 60% is required under state density bonus law. Adding residential development as an allowed use at higher densities creates land value and incentivizes housing production overall.

The City will pursue State and regional funding for affordable housing development. The City will also pursue local partnerships and annually meet with affordable housing organizations to encourage the development of housing affordable to all segments of the population. Additionally, The City will establish development incentives (i.e. deferment of fees, priority processing, modified development standards, etc.) for affordable housing projects that meet objective evaluation criteria similar to the process for density bonus concessions. The City will also develop clear instructional materials for achieving incentives and make them publicly available on the City’s website.

The City will review planning application fees, with a special focus on the density bonus fee, and update the fee(s) to avoid creating a constraint to the development of affordable housing.

Discussion:

The City's Housing Element outlines the City's plan to address barriers to affordable housing. The City of Costa Mesa followed certain “guiding principles” in developing its approach and strategy for accommodating future housing growth. These guiding principles assist with implementation of the housing goals, policies and programs and will aid overall decision making. The guiding principles are rooted in community engagement and local knowledge and input into the planning process. The guiding principles are as follows:

The City will plan for future housing primarily along major commercial, industrial, and mixed use corridors within Costa Mesa that are compatible with growth, while preserving established residential neighborhoods.

Each neighborhood, community, and district within Costa Mesa has its own unique characteristics and needs. Future housing growth will build upon Costa Mesa’s history and complement the diversity and unique characteristics that already exist within each area.

The City will plan for a diverse range of housing forms, types, and densities to address the housing needs of an inclusive and diverse community and provide housing opportunities that meet the needs of all residents, including low-income households, seniors, multi-generational families, larger households, and special needs groups.

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AP-85 Other Actions – 91.220(k)
Introduction:

As outlined in the City's Consolidated Plan, the City will implement the following actions during FY 2024- 2025 to address the "Other Actions" or sub-strategies identified in the Consolidated Plan.

Actions planned to address obstacles to meeting underserved needs The City will allocate a portion of its CDBG and HOME funds for activities that address the housing and service needs of the elderly and lower-income households. The City's housing rehabilitation program assists elderly and lower-income homeowners in improving their residences to address specific household needs. Additionally, the City will encourage and support OCHA's efforts to obtain additional rental assistance funding, especially for senior and low-income households. OCHA reports that as of April 2024, 586 Costa Mesa households received rental housing assistance. This total includes 84 households with at least one disabled person, 372 households with at least one elderly person, and 54 family households. Among these households are 29 households that were homeless at admission and 35 Veteran households. OCHA re-opened its waiting list on September 18, 2023. As of April 2024, there are 293 Costa Mesa names on the 2023 waiting list including 161 disabled persons, 109 elderly, 42 families, 19 currently homeless and 27 Veterans. The waiting list from 2012 has a total of 6 households on it including 3 disabled persons, 2 elderly persons, 3 families and 1 currently homeless.

Actions planned to foster and maintain affordable housing The City of Costa Mesa has identified the actions it will undertake during FY 2024-2025 to foster and maintain affordable housing. The Annual Action Plan identified programs such as Owner-Occupied Housing Rehabilitation assistance as the means to maintain and improve housing currently available to low- and moderate-income residents. By providing deferred payment loans and grants, lower-income households can rehabilitation their residence to meet basic housing quality standards and incur zero or minimal additional housing costs. An estimated 11 housing units will be assisted with HOME funds during FY 2024-2025. Additionally, the City has allocated HOME CHDO funds to accommodate a potential housing project. 40 residents moved into a new permanent supportive housing development (previously Motel 6) during the 2023-2024 fiscal year. This project will house up to 87 formerly homeless residents. The Bungalows project, an 8-unit affordable housing project for households with minor children completed in FY2023-2024 has housed 31 individuals (8 households) since its opening. Families Forward has another affordable housing program in Costa Mesa where 27 formerly homeless individuals (8 families) are housed.

Actions planned to reduce lead-based paint hazards
Based on past housing rehabilitation program statistics, only a small percentage of housing units rehabilitated with City resources contain lead-paint hazards. To ensure compliance with all current HUD DRAFT
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lead-based paint regulations, all housing units constructed before 1978, which are rehabilitated with City resources, will be tested for lead-paint hazards. If needed, additional grant funds may be allocated to a project to ensure all lead-based hazards are mitigated.

Actions planned to reduce the number of poverty-level families The City will assist programs and services that combat poverty. During FY 2024-2025, the City will fund the following activities to support the implementation of this strategy:

Implement housing programs (including housing rehabilitation assistance) for lower-income senior and disabled homeowners
Support rental assistance programs provided by the OCHA for very low-income renters and provide tenant based rental assistance to residents who are severely rent burdened Support services for individuals presently housed but at risk of losing their residence. Also, assist those already homeless in need of shelter and continue coordinating services with nonprofit partners Support safety-net public services programs to improve the quality of life for seniors, youth, disabled, homeless, and other populations that may be severely impacted by the cost of living in the region Actions planned to develop institutional structure
The City has made an effort to establish an institutional structure to help identify and access resources to improve the community. For example, the City will continue to work with nonprofit entities to deliver public services. As a member of the Orange County Continuum of Care Community Forum, the City will provide critical information to the County of Orange to prepare the County's Continuum of Care Homeless Assistance grant application to HUD. Costa Mesa will also continue to fund activities that help address gaps and needs in the regional system of care. Finally, the City will continue to assist the Orange County Housing Authority in implementing its Five-year PHA plan.

Actions planned to enhance coordination between public and private housing and social service agencies
The City of Costa Mesa does not operate public housing. The Orange County Housing Authority provides rental assistance in the community. Federal legislation requires that the Housing Authority prepare a five-year and a one-year plan that highlights its mission, goals and objectives related to public and assisted housing programs. The City will review the Authority's plans and provide OCHA the opportunity to review and consult with the City regarding its Consolidated Plan/Annual Action Plan. The goal of this cross-consultation is to provide consistent and coordinated housing services for City residents. Ongoing DRAFT
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consultation with local nonprofits also assists the City in coordinating the efficient and effective use of...

Discussion:

HUD-funded grant recipients are required under various laws not to discriminate in housing or services directly or indirectly based on race, color, religion, sex, national origin, age, familial status or disability.

Grant recipients such as Costa Mesa are required to: (1) examine and attempt to alleviate housing discrimination within their jurisdiction; (2) promote fair housing choices for all persons; (3) provide opportunities for all persons to reside in any given housing development, regardless of race, color, religion, sex, disability, familial status, national origin, and other personal or familial attributes; (4) promote housing that is accessible to and usable by persons with disabilities; (5) and comply with the non-discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate region-wide fair housing planning. The Analysis of Impediments (AI) to Fair Housing Choice is the primary document utilized for this purpose. In addition to identifying impediments, a strategy to overcome barriers much be developed and implemented - accomplishments are reported annually. The City participated in developing a county-wide AI, which the City Council adopted in May 2020. A summary of impediments to fair housing and the action steps the City will take during FY 2024-2025 are found in Attachment 4. The City has recently joined 33 other cities in Orange County to develop an updated county-wide AI (also called an Equity Plan) which will be adopted in tandem with the City's next Consolidated Plan for FY2025-26 through FY2029-30.

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00%

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HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

The City is not proposing to utilize HOME funds in a form that is not delineated in Section 92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

The City has not and does not plan to utilize HOME funds for homebuyer assistance; however, if funds are redirected to such a program, steps will be taken to ensure program guidelines comply with the applicable resale and recapture regulations.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

If a CHDO project comes to fruition, the applicable loan agreement(s) will be prepared to comply with the resale/recapture requirements delineated in 24 CFR 92.254.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

If a CHDO project comes to fruition, program staff will ensure that all applicable program policies are followed, including establishing refinancing guidelines.

5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)).

6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii)).

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7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR

92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a).

NA
The City will meet the CDBG Program's overall 70% benefit for low- and moderate-income requirement over three program years: 2023-2024, 2024-2025, and 2025-2026.

With respect to HOME affordable homeownership limits for the area (i.e., 95 percent of the median area purchase price as set forth in 24 CFR 92.254(a)(2)(iii), the City will utilize HUD’s HOME affordable homeownership limits for its HOME-funded mobile home rehabilitation program. For single-family, owner-occupied housing rehabilitation, the City conducted a survey in order to establish a maximum property value that is reflective of the local market median home purchase prices, which exceed HUD’s published limit. This information is provided as Attachment 5 of the Annual Action Plan.

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Grantee Name: City of Costa Mesa
Source
of Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Housing Units 10 5 50.00%
50 5 10.00%
2020 Housing Units 1 0 0.00%
5 0 0.00%
2020 Housing Units 0 0 0.0%
0 0 0.00%
2020 Housing Units 250 233 93.20%
1,250 233 18.64%
Source
of Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Individuals 430 580 134.88%
2,500 580 23.20%
2020 Individuals 350 236 67.43%
1,250 236 18.88%
2020 Individuals 192 173 90.10%
750 173 23.07%
2020 Individuals A 1,500 0 0.00%
7,500 0 0.00%
2020 Individuals C 500 0 0.00%
2,500 0 0.00%
Source
of Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Individuals *
350 236 67.43%

NA NA NA
Source
of Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Individuals 30 0 0.00%
150 0 0.00%
2020 Individuals 230 115 0.00%
250 115 46.00%
2020 Individuals 26 31 119.23%
100 31 31.00%
Source
of Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Year of Admin 1 1 100.00%
5 1 20.00%
* Accomplishments also reported separately as Youth accomplishments.

Rental Housing Acquisition/Rehabilitation to expand and/or improve the number of rental housing units for lower income renter households HOME 5-Yr Con Plan Goal
Rental Housing New Construction to expand the number of rental housing units for lower income renter households HOME
5-Yr Con Plan Goal
No 5-year goals for CDBG-funded Economic Opportunity were established in the Consolidated Plan; however, CDBG funds have been allocated for public service programs that expanded economic opportunities for low-income youths and disabled adults (i.e., Youth Employment Services)
Financial assistance to prevent homelessness such as a short-term financial subsidy to prevent eviction and/or utility termination, and for the provision of provide support services
CDBG
NA
Objective
Economic Opportunity
5-Yr Con Plan Goal
Special Code Enforcement activity to inspect and enforce housing and building codes for residential properties located in the City's CDBG- eligible areas
CDBG
5-Yr Con Plan Goal
5-Yr Con Plan Goal
CDBG
5-Yr Con Plan Goal
CDBG
5-Yr Con Plan Goal
CDBG
CDBG
Improvements to public facilities that address a community priority including but not limited to repairs, replacement and/or upgrades (including ADA compliance) to neighborhood parks, centers and other public facilities
Improvements to public infrastructure that address a community priority including but not limited to repairs, replacement and/or upgrades (including ADA compliance) to streets, alleys, sidewalks, flood/storm water drains, and other public improvements Five-Year and One-Year Summary of Accomplishments
Decent Housing
HOME
5-Yr Con Plan Goal
Owner Occupied Housing Rehabilitation Loans and Grants to assist homeowners improve primary residence to correct code violations, address deferred property improvements and improve neighborhood aesthetics
Objective
CDBG
5-Yr Con Plan Goal
Other (O-1)
Objective
CDBG
5-Yr Con Plan Goal
Short-term emergency shelter and support services (up to 3 months) for individuals that are in immediate need of shelter and services Rapid Rehousing and case management services to stabilize homeless households in permanent housing (may encompass TBRA is a low priority)
CDBG program oversight, coordination and administration CDBG
Suitable Living Environment
Objective
5-Yr Con Plan Goal
Services will help seniors and the frail elderly maintain their independent living situation or ensure they are provided services that improve quality of life
Services to assist lower income families with children by providing access to youth programs and services at reduced or no cost.

Services that assist low and moderate-income households and individuals with safety net services such as access to medical, food, case management, and employment services. Supported agencies should provide households with access to programs and services at reduced or no cost - including fair housing services
5-Yr Con Plan Goal
5-Yr Con Plan Goal
CDBG
5-Yr Con Plan Goal
Continuum of Care
Objective

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SUMMARY OF PUBLIC COMMENTS

March 7, 2024 Housing & Public Service Grant Committee
The H&PSG Committee held an in-person meeting to obtain additional public comments regarding CDBG public service grants, and to develop funding recommendations. No written comments were received.

Internet/Social Media Outreach

30—Day Public Comment Period
TBD

May 21, 2024 Public Hearing
TBD

Attachment 2 421

W 17TH ST
CDBG Map

MACARTHUR BLVD

ADAMS A

ADAMS AV

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ARLINGT AVE

FAIR DR
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ORIA ST

CT : 063701
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W WILSON ST

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ORANGE COUNTY ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE August 6, 2020

REGIONAL PROPOSED AI GOALS AND STRATEGIES
To address the contributing factors described above, the AI plan proposes the following goals and actions:

Regional Goals and Strategies”
Goal 1: Increase the supply of affordable housing in high opportunity areas.1 Strategies:

1. Explore the creation of a new countywide source of affordable housing.

2. Using best practices from other jurisdictions, explore policies and programs that increase the supply affordable housing, such as linkage fees, housing bonds, inclusionary housing, public land set-aside, community land trusts, transit-oriented development, and expedited permitting and review.

3. Explore providing low-interest loans to single-family homeowners and grants to homeowners with household incomes of up to 80% of the Area Median Income to develop accessory dwelling units with affordability restriction on their property.

4. Review existing zoning policies and explore zoning changes to facilitate the development of affordable housing.

5. Align zoning codes to conform to recent California affordable housing legislation.

Goal 2: Prevent displacement of low- and moderate-income residents with protected characteristics, including Hispanic residents, Vietnamese residents, other seniors, and people with disabilities.

Strategies:

1. Explore piloting a Right to Counsel Program to ensure legal representation for tenants in landlord-tenant proceedings, including those involving the application of new laws like A.B. 1482.

Goal 3: Increase community integration for persons with disabilities.

Strategies:

1. Conduct targeted outreach and provide tenant application assistance and support to persons with disabilities, including individuals transitioning from institutional settings and individuals who are at risk of institutionalization. As part of that assistance, maintain a database of housing that is accessible to persons with disabilities.

2. Consider adopting the accessibility standards adopted by the City of Los Angeles, which require at least 15 percent of all new units in city-supported Low-Income Housing Tax Credit (LIHTC) projects to be ADA- accessible with at least 4 percent of total units to be accessible for persons with hearing and/or vision disabilities.
1 The term “high opportunity areas” generally means locations where there are economic and social factors and amenities that provide a positive impact on a person’s life outcome. This is described in more detail in Section iii, Disparities in Ac cess to Opportunity.

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ATTACHMENT 4
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Goal 4: Ensure equal access to housing for persons with protected characteristics, who are disproportionately likely to be lower-income and to experience homelessness.

Strategies:

1. Reduce barriers to accessing rental housing by exploring eliminating application fees for voucher holders and encouraging landlords to follow HUD’s guidance on the use of criminal backgrounds in screening tenants.

2. Consider incorporating a fair housing equity analysis into the review of significant rezoning proposals and specific plans.

Goal 5: Expand access to opportunity for protected classes.

Strategies:

1. Explore the voluntary adoption of Small Area Fair Market Rents or exception payment standards in order to increase access to higher opportunity areas for Housing Choice Voucher holders.

2. Continue implementing a mobility counseling program that informs Housing Choice Voucher holders about their residential options in higher opportunity areas and provides holistic supports to voucher holders seeking to move to higher opportunity areas.

3. Study and make recommendations to improve and expand Orange County’s public transportation to ensure that members of protected classes can access jobs in employment centers in Anaheim, Santa Ana, and Irvine.

4. Increase support for fair housing enforcement, education, and outreach.

CITY OF COSTA MESA PROPOSED AI GOALS AND STRATEGIES

1. In collaboration with the Orange County Housing Authority (OCHA):
a. Attend quarterly OCHA Housing Advisory Committee to enhance the exchange of information regarding the availability, procedures, and policies related to the Housing Assistance Voucher program and regional housing issues.
b. Support OCHA's affirmative fair marketing plan and de-concentration policies by providing five-year and annual PHA plan certifications.
c. In coordination with OCHA and fair housing services provider, conduct landlord education campaign to educate property owners about State law prohibiting discrimination based on household income.

2. Through the City's fair housing contractor:
a. Provide fair housing education and information to apartment managers and homeowner associations on why denial of reasonable modifications/accommodations is unlawful. b. Conduct multi-faceted fair housing outreach to tenants, landlords, property owners, realtors, and property management companies. Methods of outreach may include workshops, informational booths, presentations to community groups, and distribution of multi-lingual fair housing literature.

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Building Division 714.754.5273 ∙ Code Enforcement & Community Improvement Division 714.754.5638 Housing & Community Development 714.754.4870 ∙ Planning Division 714.754.5245 www.costamesaca.gov

May 21, 2024

Mr. Rufus Washington, Director
HUD Los Angeles Field Office
U.S. Dept. of Housing & Urban Development
Office of Community Planning and Development
300 N. Los Angeles Street, Suite #4054
Los Angeles, CA 90012

SUBJECT: HOME Investment Partnership (HOME) Program Request to Increase Median Area Purchase Price Limit

Dear Mr. Washington:

The City of Costa Mesa is submitting a request to increase the Median Area Purchase Price Limit as part of its 2024-2025 Action Plan. In lieu of the limit provided by the U.S. Department of Housing & Urban Development (HUD) for FY 2024, the City is requesting permission to use an increased limit of $1,439,250.

The City conducted its local market survey using data supplied by Orange Coast Title Company, which is based on information from the database of the Orange County Recorder and Assessor’s offices. We have found this source to be accurate and reliable. The following are the steps used in the survey methodology:

1. Sales data on all single-family home sales, 1 April 2023 through March 31, 2024 in the City of Costa Mesa compiled in ascending order of sales price. Data includes the address of the listed properties, sales value, parcel number and date of sale.

2. Pursuant to 92.254(2)(iii), the length of the reporting period is dependent upon the volume of existing home sales in the City. If sales were 250 or less per month in the most recent 12 months (April 2023 to March 2024), then a minimum of a 3-month survey is used. Based on the attached report, the median home price was $1,515,000 and 95% of this property value is $1,439,250.

3. Methodology for Costa Mesa adjusted home limit increase request:

Median Sales Price for 106 sales: N+1 = $1,515,000
2 Single Family Unit: $1,515,000 (95%) = $1,439,250

CITY OF COSTA MESA

P.O. BOX 1200 • 77 FAIR DRIVE • CALIFORNIA 92628-1200

ECONOMIC AND DEVELOPMENT

SERVICES DEPARTMENT
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Building Division 714.754.5273 ∙ Code Enforcement & Community Improvement Division 714.754.5638 Housing & Community Development 714.754.4870 ∙ Planning Division 714.754.5245 www.costamesaca.gov
If you have any questions, please contact Mikelle Daily of the Housing and Community Development Office at 714-754-5678 or [email protected].

Sincerely,

SCOTT DRAPKIN
Assistant Director of Economic and Development Services

Attachment: Survey
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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-217 Meeting Date: 5/21/2024
TITLE:

UPGRADES TO AUDIO/VISUAL EQUIPMENT AND BROADCAST SYSTEM DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: TONY DODERO, PUBLIC INFORMATION OFFICER
CONTACT INFORMATION: TONY DODERO, PUBLIC INFORMATION OFFICER (714) 754- 5288
RECOMMENDATION:

Staff recommends the City Council:

1. Approve the Professional Services Agreement with Triton Technology Solutions, Inc. for audio/visual and broadcasting system upgrades for the Council Chambers, Control Room, Community Room, and Conference Room 1A, pursuant to CMMC 2-171(b).

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

3. Approve a budget appropriation of $238,250 from available fund balances in the Information Technology Replacement Fund 603.

BACKGROUND:

Designing a New A/V Equipment and Broadcasting System
On December 3, 2013, the City Council: (1) approved designating $1.6 million to upgrade the City’s audio/visual equipment and broadcast system used to facilitate and broadcast public meetings that are routinely conducted in the Council Chambers and (2) directed City staff to issue a Request for Proposals (RFP) for this designation.

Due to the specialized nature of the designs, on December 7, 2015, the City entered into a Professional Services Agreement with Triton Technology Solutions, Inc. (Triton) for $136,125 to provide professional engineering services to design the RFP bid specifications, which was expanded to include the Council Chambers, Control Room, Community Room, and Conference Room 1A. The design encompassed a vast and integrated audio/visual and broadcasting system, whose various components can be distinguished generally as follows:
· Audio equipment
· Camera equipment

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· Presentation displays
· Computer displays and accessories
· Furniture, racks, and power distribution units
· Voting system
· Lighting equipment and system
· Production switchers and routers
· System storage, servers, and patch bays
· A/V digital media source control system
· Broadcasting and streaming control system
The estimated cost for purchase of all of the above equipment categories was quoted at $1.25 million in 2015. The estimated costs specifically designated for the “A/V digital media source control system” totaled $105,274 from the $1.25 million quote.

Constructing and Installing A/V Equipment and Broadcast System On July 10, 2018, City Council adopted the plans, specifications, and working details for the City Hall Audio Visual (A/V) Improvement and Broadcast Production Upgrade Project - City Project No. 18-05.

The City Council awarded Key Code Media, Inc. the RFP bid in July 2018 for $1.75 million. However, because of the need for expertise and oversight during the construction and installation of the project design, on December 15, 2018, the City entered into a Professional Services Agreement with Triton for $47,985 to provide design and review services during the construction phase on the CIP project.

On June 18, 2019, City Council meetings resumed in the renovated Council Chambers with the new media equipment operational. Since that time, Costa Mesa public meetings have been available to the public through the City’sCMTV3 channel, the online broadcasting channel, and YouTube. Since the COVID-19 pandemic, public meetings have also been available via Zoom. The City’s award winning CMTV team and City Clerks’ Office have been recognized for these efforts in providing excellent transparency during public meetings. In 2022, City Clerk Brenda Green received the City Clerk Award of Distinction for Technology and Innovation from the City Clerks Association of California, for her efforts in ensuring public access to City government meetings during a global pandemic where many other amenities had restrictive access. Most recently, the Voice of OC gave Costa Mesa an “A” rating for the efforts in transparency for broadcasting public meetings.

Discontinuation of Key Materials
Industry standards note that the lifespan of A/V and broadcasting systems and equipment can last up to eight (8) years. However, due to the impacts of the COVID-19 pandemic on manufacturing, production, and supply chain, many manufactures discontinued certain products, including some that were used by the City in their A/V and broadcasting systems.

Notably, key components of the “A/V digital media source control system”category, including the Crestron DigitalMedia switcher chassis, blades, and related accessories were discontinued and no longer supported by the manufacturer. This system functions as the nucleus of the A/V system, which

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longer supported by the manufacturer. This system functions as the nucleus of the A/V system, which delivers ultra-fast signal routing and pure, lossless distribution of High-Definition Multimedia Interface (HDMI) and other signals to support all the digital media players, HDTV receivers, computers, cameras, and display devices. The system seamlessly manages all of the disparate A/V signals and devices to deliver a transparent user experience, and to ensure an optimum video image and audio signal at all facilities - Council Chambers, Control Room, Community Room, and Conference Room 1A.

ANALYSIS:

As a result of the discontinuation of key materials for the City’sA/V digital media source control system, it is vital for staff to plan to replace the existing discontinued software. Therefore, staff is recommending an upgrade of the City’sCouncil Chamber A/V and broadcasting system which has been discontinued by the manufacturer. Failure to upgrade the A/V digital media source control system component, will results in the inability to properly run the necessary audio and video components of the City’s public meetings.

Triton designed the original system that formed the bid specifications for the original RFP in 2015.

Triton managed the installation of the system in 2019, and the City has had a contract with them to maintain the system. Triton has a specialized knowledge of the City’s A/V digital media control source system.

Due to (1) the specialized A/V and broadcasting technological systems currently in place at the Council Chambers, Control Room, Community Room, and Conference Room 1A and (2) the specialized knowledge of the City’scurrent system, design, and operations that span over a decade, staff is recommending to enter into a professional services agreement with Triton Technology Solutions, Inc. to provide the following services to our Crestron DigitalMedia System:
· Program and Design Labor;
· Installation and Commissioning;
· Equipment Procurement; and
· Materials Installation.

The total estimated pricing for this professional service review is $223,250. Staff is requesting an additional $15,000 for any unforeseen costs related to this review for a total amount of $238,250.

Program and design of the new system includes identifying the discontinued systems and providing suitable alternatives that meet the City’s standards in providing excellent audio/visual and broadcasting services at public meetings. After design, the vendor would lead the procurement of the identified systems and technology, as well as the installation and programming of the materials.

ALTERNATIVES:

City Council may choose not to approve the agreement, however, the City runs the risk of losing the ability to adequately and functionally broadcast and stream its public meetings if it continues to rely on antiquated hardware and software.

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File #: 24-217 Meeting Date: 5/21/2024
FISCAL REVIEW:

The total estimated cost to review the Creston DigialMedia System in the City’sCouncil Chamber is $238,250. There are sufficient fund balances available in the Information Technology Replacement Fund 603 to cover this project.

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the City Council’s goal to Maintain and Enhance the City’s Facilities, Equipment, and Technology.

CONCLUSION:

Staff recommends the City Council:

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

3. Approve a budget appropriation of $238,250 from available fund balances in the Information Technology Replacement Fund 603.

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CITY OF COSTA MESA

PROFESSIONAL SERVICES AGREEMENT
WITH
TRITON TECHNOLOGY SOLUTIONS, INC.

T HIS AGREEMENT is made and entered into this 21st day of May, 2024 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and TRITON TECHNOLOGY, SOLUTIONS, INC., a California Corporation (“Consultant”).

WITNESSETH:

WHEREAS, City proposes to utilize the services of Consultant as an independent contractor to provide professional engineering services to upgrade the City's existing audio/video design and specifications in the City Council Chambers, Control Room, Conference Room 1A, Community Room as more fully described herein; and

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

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

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

1.0. SERVICES PROVIDED BY CONSULTANT

1.1. Scope of Services. Consultant shall provide the professional services described in Consultant’s Proposal, attached hereto as Exhibit “A,” incorporated herein by 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 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 thi s Agreement.

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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 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; occupational health and safety; fair employment and employment practices; workers’ compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Consultant shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys’ fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Consultant’s performance under this Agreement.

1.5. Non-Discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religious creed, color, national origin, ancestry, physical disability, mental disability, m edical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military or veteran status, except as permitted pursuant to section 12940 of the Government Code.

1.6. Non-Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement.

1.7. Delegation and Assignment. This is a personal service contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ other personnel to perform services contemplated by this Agreement at Consultant’s sole cost and expense.

1.8. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or 432
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other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement.

Consultant’s covenant under this Section shall survive the termination of this Agreement.

2.0. COMPENSATION AND BILLING

2.1. Compensation. Consultant shall be paid in accordance with the fee schedule included in Exhibit A. In no event shall total compensation shall exceed Two Hundred Thirty-Eight Thousand Two Hundred and Fifty Dollars ($238,250.00).

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 Manager or designee, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable.

2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than two times a month. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty -five (45) days from the date City receives said invoice. Each invoice shall describe in detail, the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.

2.4. Records and Audits. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City or its Project Manager for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after termination of this Agreement.

3.0. TIME OF PERFORMANCE

3.1. Commencement and Completion of Work . Unless otherwise agreed to in writing by the parties, the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement.

Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement.

3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties.

Such acts shall include, but not be limited to, acts of God, fire, strikes, pandemics 433
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(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 duration than is reasonably required and the party experiencing the Force Majeure Event shall use best efforts without being obligated to incur any material expenditure to remedy its inability to perform; provided, however, if the suspension of performance continues for sixty (60) days after the date of the occurrence and such failure to perform would constitute a material breach of this Agreement in the absence of such Force Majeure Event, the parties shall meet and discuss in good faith any amendments to this Agreement to permit the other party to exercise its rights under this Agreement. If the parties are not able to agree on such amendments within thirty (30) days and if suspension of performance continues, such other party may terminate this Agreement immediately by written notice to the party experiencing the Force Majeure Event, in which case neither party shall have any liability to the other except for those rights and liabilities that accrued prior to the date of termination.

4.0. TERM AND TERMINATION

4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of 12 months, ending on May 20 , 2025, 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 cancelling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing written notice to Consultant. The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City.

4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City’s written notice of termination. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. In ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Consultant.

4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, 434
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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 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 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 limit per accident for bodily injury and property damage.

Consultant agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the C ity, 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 followingprovisions:

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(a) Additional insureds: “The City of Costa Mesa and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant.”

(b) Notice: “Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor the coverage or limits reduced, until thirty (30) days after written notice is given to City.”

(c) Other insurance: “The Consultant’s insurance coverage shall be primary insurance as respects the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Costa Mesa shall be excess and not contributing with the insurance provided by this policy.”

(d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Costa Mesa, its officers, officials, agents, employees, and volunteers.

(e) The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

5.3. Deductible or Self -Insured Retention. If any of such policies provide for a deductible or self -insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self-insured retention.

5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement.

5.5. Non-Limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property.

6.0. GENERAL PROVISIONS

6.1. Entire Agreement . This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any 436
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and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement.

6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement.

Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement.

6.3. Project Managers. City shall designate a Project Manager to work directly with Consultant in the performance of this Agreement.

Consultant shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement. Consultant or its Project Manager shall attend and assist in all coordination meetings called by City.

6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: (a) at the time of delivery if such communication is sent by personal delivery, and (b) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail.

IF TO CONSULTANT: IF TO CITY:

Triton Technology Solutions, Inc.
32234 Paseo Adelanto, Suite E-1
San Juan Capistrano, CA 92675
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Tel: (949) 388-3919
Fax: (866) 275-9175
Tel: (714) 754-4885
Attn: Kristen Tetherton Attn: Hadassa Jakher

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 “B” 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. If litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all 437
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costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.

6.7. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California.

6.8. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City’s consent, no subletting or assignment shall release Consultant of Consultant’s obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement.

6.9. Indemnification and Hold Harmless. Consultant agrees to defend, indemnify, hold free and harmless the City, its elected officials, officers, agents and employees, at Consultant’s sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement.

The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect.

6.10. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement.

Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Consultant shall secure, at 438
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its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.

6.11 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 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 payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

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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 prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys’ fees, arising out of or resulting from City’s use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other Project related items as requested by City or its authorized representative, at no additional cost to the City.

6.15. 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 Act (California Government Code section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.

6.16. 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 sections 81000, et seq.) and Government Code section 1090. During the term of this Agreement, Consultant and its officers, employees, associates and subconsultants shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subconsultants to abstain from a decision under this Agreement pursuant to a conflict of interest statute.

6.17. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification 440
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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 c ost 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.

6.20. 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.

6.21. 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.

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. 441
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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 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.

6.27. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, 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 doing so the parties hereto are formally bound to the provisions of this Agreement.

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IN WITNESS WHEREOF , the Parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date first above written.

CONSULTANT

________________________________ Date: __________________________ Signature

________________________________
Name and Title

CITY OF COSTA MESA

__________________________________ Date: __________________________ Lori Ann Farrell Harrison
City Manager

[Signatures continue on following page.]

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ATTEST:

__________________________________ Date: __________________________ Brenda Green
City Clerk

APPROVED AS TO FORM:

__________________________________ Date: __________________________ Kimberly Hall Barlow
City Attorney

APPROVED AS TO INSURANCE:

__________________________________ Date: __________________________ Ruth Wang
Risk Management

APPROVED AS TO CONTENT:

__________________________________ Date: __________________________ Tony Dodero
Project Manager

APPROVED AS TO PURCHASING:

__________________________________ Date: __________________________ Carol Molina
Finance Director

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Costa Mesa City CouncilMay 21, 2024

Costa Mesa City Council
May 21, 2024