Costa Mesa City Council
November 19, 2024

841
File #: 24-398 Meeting Date: 11/19/2024
sidewalk, cross-gutters, driveways, and curb ramps that conform to the current Americans with Disabilities Act (ADA) regulations.

Phase 2: Street Rehabilitation Phase - includes asphalt concrete mill and overlay of the existing roadway pavement.

Phase 3: Slurry Seal Phase - includes application of a surface coating and sealing of the roadway on streets that do not need mill and overlay.

Staff seeks to combine all of the above three (3) phases of work into one construction project in order to achieve economies of scale and cost savings that will result through reduced mobilization costs, as well as lower unit prices for material, equipment, and labor.

For parkway maintenance, concrete improvements located within the City’s parkways (e.g., sidewalks, driveways, curbs & gutters, etc.) require ongoing repair and maintenance due to age, tree root incursion, soil conditions, water intrusion, and traffic loads. One of the goals of this project is to repair as many of these damaged areas and to reduce the potential liability associated with aging parkways. The locations identified for repair are prioritized based on pedestrian and curb ramp access requirements and the severity of the damage.

The renewed Measure M (M2) funding program requires that all cities in Orange County maintain a uniform approach to rating and evaluating streets utilizing a standardized Pavement Management Program (PMP). Based on pavement analysis recommendations and field review, staff prepared a priority list and recommendations of streets to be repaired and rehabilitated. Some of these streets receive full rehabilitation including mill and overlay, while others may just require slurry seal maintenance.

The streets proposed for maintenance under the annual Citywide Street Maintenance Project are located in multiple City Council districts (Attachment 1). Moreover, this project will also include asphalt rehabilitation improvements at the large basketball play area at Balearic Community Center located at 1975 Balearic Drive. The City will conduct future outreach with the community to determine recreational needs for this area. These may include new basketball facilities, pickleball courts, and other surfacing and striping improvements.

The contractor will be required to complete all of the tasks necessary to perform the scope of work as outlined in the contract documents, plans, and specifications. A copy of specifications and working details are available for review in the Office of the City Clerk.

ANALYSIS:

The City Clerk received and opened six (6) bids for this project on September 24, 2024. Onyx Paving Company, Inc. is the apparent low bidder with a base bid proposal of $9,163,000. The average of the six (6) bids received amounted to $11,309,917. The Engineer’s estimate for this project is

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File #: 24-398 Meeting Date: 11/19/2024
$10,409,250. The bid abstract for this project is included as Attachment 2.

The license and references of Onyx Paving Company, Inc. have been checked and staff has found them to be in good standing. Onyx Paving Company, Inc. has successfully completed similar projects in other cities, including the Pavement Rehabilitation Project in the City of Arcadia, Residential Street Rehabilitation Project in the City of La Mirada; and most recently, Slurry Seal at Various Locations in the City of Monterey Park.

Upon City Council award of the Public Works Agreement (PWA) [Attachment 3], Onyx Paving Company, Inc will furnish the necessary bonds for the project. After the award and subsequent execution of the agreement, a “Notice to Proceed” will be issued.

In addition, this Citywide Street Maintenance project is subject to the Community Workforce Agreement (CWA). The City Council approved the CWA on February 1, 2022 in order to promote efforts to increase employment opportunities for residents of Costa Mesa and to facilitate training and employment for the City’sstudents and veterans in the construction trades through apprenticeships and to encourage efficiency in construction operations. Previous CWA-administered capital improvement projects include the Adams Avenue Improvement Project and the Fire Station No. 4 Training Tower and Site Improvements Project.

On March 7, 2023, the City Council awarded a Professional Services Agreement (PSA) to The Solís Group (Solís) to assist the City in administering the CWA. Solís will render its services to manage the provisions of the CWA for this project, including the preparation and submission of the final report.

ALTERNATIVES:

The alternative would be to reject all bids, re-advertise, and re-bid the project for construction. Staff has determined that re-advertising and re-bidding the project will not result in lower bids and will delay the project.

FISCAL REVIEW:

This street improvements portion of this project will be funded through Gas Tax (Fund 201), Capital Improvement Fund (Fund 401), and Measure M2 Fairshare Fund (Fund 416) as annually approved by City Council in the adopted Capital Improvement Budget. The Balearic Community Center surfacing improvements will be funded through the Capital Improvement Fund (Fund 401) as approved by City Council as the Balearic Community Center Asphalt Surfacing Project in FY 2023-

24. LEGAL REVIEW:

The City Attorney’sOffice has reviewed this agenda report, prepared the PWA, and approves them as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This project works toward achieving the following City Council goal:
· Strengthen the public’s safety and improve the quality of life.

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File #: 24-398 Meeting Date: 11/19/2024
· Maintain and Enhance the City’s Infrastructure Facilities, Equipment and Technology.

CONCLUSION:

Staff recommends the City Council:

1. Make a finding of California Environmental Quality Act (CEQA) categorical exemption pursuant to CEQA Guidelines Section 15301.

2. Adopt plans, specifications, and working details for the 2024-2025 Citywide Parkway Maintenance, Street Rehabilitation, and Slurry Seal Project, City Project No. 24-03.

3. Award a Public Works Agreement (PWA) for construction to Onyx Paving Company, Inc., 2890 East La Cresta Avenue, Anaheim, California 92806 in the amount of $9,163,000 (Base Bid).

4. Authorize the City Manager and City Clerk to execute the PWA with Onyx Paving Company, Inc., and future amendments to the agreements within Council authorized limits.

5. Authorize an additional ten percent (10%) contingency, in the amount of $916,300 for construction, as needed for any unforeseen costs related to this project.

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SEE STRIPING
PLAN
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SEE STRIPING PLAN
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SEE STRIPING
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ATTACHMENT 1
853

CITY OF COSTA MESA

PUBLIC WORKS DEPARTMENT
2024-2025 CITYWIDE PARKWAY MAINTENANCE, STREET REHABILITATION, AND SLURRY SEAL PROJECT #24-03 BID OPENING DATE: SEPTEMBER 24, 2024

BID UNIT UNIT UNIT UNIT UNIT
NO. QUANTITY DESCRIPTION PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 1 LS Mobilization and Project Scheduling $500,000.00 $500,000.00 $333,000.00 $333,000.00 $635,423.61 $635,423.61 $424,436.00 $424,436. 00 $1,046,000.00 $1,046,000.00 2 1 F.A. Additional Work Items $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000. 00 $300,000.00 3 1 L.S. Water Quality (BMP's) $50,000.00 $50,000.00 $28,000.00 $28,000.00 $64,602.25 $64,602.25 $50,000.00 $50,000.00 $75,000.00 $75,000. 00 4 1 L.S. Temporary Traffic Control $250,000.00 $250,000.00 $555,000.00 $555,000.00 $290,262.00 $290,262.00 $500,000.00 $500,000.00 $750, 000.00 $750,000.00 5 1 L.S.

Striping, Thermoplastic Striping, Green Thermoplastic
Striping (pre-forms), Traffic Signing, Pavement Markings, & RPM's
$150,000.00 $150,000.00 $237,861.40 $237,861.40 $105,488.75 $105,488.75 $100,000.00 $100,000.00 $108,000.00 $108,000.00 6 58,000 S.F. Remove & Reconstruct Concrete Sidewalk (4-inch Concrete over 4-inch C.M.B) including ADA ramps $20.00 $1,160,000.00 $14.28 $828,240.00 $22.00 $1,276,000.00 $22.50 $1,305,000.00 $19.00 $1,102,000.00 7 23,710 L.F. Remove Existing and Reconstruct C-6 Curb & Gutter over 6" C.M.B with 2' A.C. Slot Pave $95.00 $2,252,450.00 $84.82 $2,011,082.20 $75.50 $1,790,105.00 $118.00 $2,797,780.00 $112.00 $2,655,520.00 8 1,140 L.F. Remove Existing and Reconstruct C-8 Curb & Gutter over 6" CMB with 2' A.C. Slot Pave $100.00 $114,000.00 $88.00 $100,320.00 $92.00 $104,880.00 $140.00 $159,600.00 $115.00 $131,100.00 9 26,800 S.F.

Remove & Reconstruct P.C.C. Cross-Gutter, Spandrel,
Local Depression, and P.C.C. Pad (8" Concrete over
8"inch C.M.B) with 3' A.C. Slot Pave
$45.00 $1,206,000.00 $28.82 $772,376.00 $42.00 $1,125,600.00 $57.00 $1,527,600.00 $52.00 $1,393,600.00 10 16,450 S.F. Remove Existing and Reconstruct P.C.C. Driveway Approach (6-inch Concrete over 6-inch C.M.B.) $28.00 $460,600.00 $22.00 $361,900.00 $27.50 $452,375.00 $33.50 $551,075.00 $28.00 $460,600.00 11 50 TONS Remove & Reconstruct Miscellaneous AC Pavement (excludes 2' AC Slot Pave) $350.00 $17,500.00 $444.00 $22,200.00 $488.00 $24,400.00 $800.00 $40,000.00 $620.00 $31,000.00 12 1,150 L.F. Paint Curb Existing Color $5.00 $5,750.00 $8.00 $9,200.00 $3.25 $3,737.50 $5.00 $5,750.00 $2.30 $2,645.00 13 6,368 L.F. Root Prune and Install Root Barrier $52.00 $331,136.00 $48.00 $305,664.00 $49.75 $316,808.00 $55.00 $350,240.00 $38.00 $241, 984.00 14 86 EA Install Truncated Domes (ADA ramps) $1,000.00 $86,000.00 $1,428.00 $122,808.00 $530.00 $45,580.00 $1,500.00 $129,000.00 $750.00 $ 64,500.00 15 858,620 S.F. Cold Mill (2-inch Minimum Depth) $0.45 $386,379.00 $0.42 $360,620.40 $0.57 $489,413.40 $0.45 $386,379.00 $0.45 $386,379.00 16 23,000 S.F. Cold Mill (6-inch Depth) - Balearic Park Playground $1.40 $32,200.00 $1.96 $45,080.00 $1.65 $37,950.00 $1.60 $36,800.00 $ 2.55 $58,650.00 17 870 TONS AC Overlay ( 6-inch Depth)-Balearic Park Playground $150.00 $130,500.00 $133.00 $115,710.00 $124.25 $108,097.50 $125.00 $10 8,750.00 $125.00 $108,750.00 18 13,500 TONS Type "C" Asphalt Concrete (A.C.) Overlay (Paving Machine) - Surface Course $135.00 $1,822,500.00 $111.00 $1,498,500.00 $132.75 $1,792,125.00 $120.00 $1,620,000.00 $136.00 $1,836,000.00 19 440 TONS Type "B" Asphalt Concrete ( A.C.) Base Course (Paving Machine) $150.00 $66,000.00 $133.00 $58,520.00 $132.75 $58,410.00 $150.00 $66,000.00 $160.00 $70,400.00 20 1,475 TONS Type "D" Asphalt Concrete (A.C.) Leveling Course (Paving Machine) $150.00 $221,250.00 $133.00 $196,175.00 $141.25 $208,343.75 $225.00 $331,875.00 $147.00 $216,825.00 21 600 TONS Remove & Reconstruct Asphalt Concrete ( A.C.) 6-inch Minimum Depth. (Including Excavation) - Digouts $300.00 $180,000.00 $282.00 $169,200.00 $347.50 $208,500.00 $335.00 $201,000.00 $300.00 $180,000.00 22 6 EA Install Type "E" Traffic Signal Loops $500.00 $3,000.00 $1,111.00 $6,666.00 $477.00 $2,862.00 $800.00 $4,800.00 $450.00 $2,700.00 23 4 EA Install Type "F" or modified Type "F" Traffic Signal Loops $530.00 $2,120.00 $1,111.00 $4,444.00 $504.00 $2,016.00 $800.00 $3,2 00.00 $475.00 $1,900.00 24 80 EA Install Blue Raised Pavement Markers (BRPM) $30.00 $2,400.00 $24.00 $1,920.00 $10.75 $860.00 $25.00 $2,000.00 $21.00 $1,680.00 25 36 EA Adjust and Reset Existing Survey Monuments and Ties per California Licensed Land Surveyor $750.00 $27,000.00 $1,300.00 $46,800.00 $742.25 $26,721.00 $1,900.00 $68,400.00 $700.00 $25,200.00 26 87 EA Adjust Manhole Covers to Grade $1,250.00 $108,750.00 $1,300.00 $113,100.00 $1,484.25 $129,129.75 $1,200.00 $104,400.00 $995.00 $8 6,565.00 27 93 EA Adjust Water Valves to Grade $1,200.00 $111,600.00 $1,300.00 $120,900.00 $1,060.00 $98,580.00 $1,200.00 $111,600.00 $975.00 $90,6 75.00 28 2 EA Adjust Well Monuments to Grade $1,500.00 $3,000.00 $1,300.00 $2,600.00 $1,060.00 $2,120.00 $2,000.00 $4,000.00 $975.00 $1,950.00 29 940 ELT Slurry Seal Type II with 2.5% Latex $330.00 $310,200.00 $321.00 $301,740.00 $373.75 $351,325.00 $310.00 $291,400.00 $320.00 $30 0,800.00 30 62,650 L.F. Edge Grinding (18 inch width max) $1.10 $68,915.00 $0.82 $51,373.00 $1.06 $66,409.00 $1.10 $68,915.00 $1.10 $68,915.00 31 1 L.S. Crack Seal $50,000.00 $50,000.00 $82,000.00 $82,000.00 $71,856.50 $71,856.50 $50,000.00 $50,000.00 $70,000.00 $70,000.00 PROJECT BASE BID TOTAL: $10,409,250.00 $9,163,000.00 $10,189,981.01 $11,700,000.00 $11,869,338.00

1. ONYX PAVING COMPANY,
INC
BREA

4. SULLY-MILLER

CONTRACTING COMPANY
UNIT

BASE BID CITY ESTIMATE

3. HARDY AND HARPER, INC. 2.ALL AMERICAN ASPHALT

CORONA LAKE FORESTANAHEIM
PAGE 1 OF 2
ATTACHMENT 2
854

CITY OF COSTA MESA

PUBLIC WORKS DEPARTMENT
2024-2025 CITYWIDE PARKWAY MAINTENANCE, STREET REHABILITATION, AND SLURRY SEAL PROJECT #24-03 BID OPENING DATE: SEPTEMBER 24, 2024

BID UNIT UNIT UNIT UNIT
NO. QUANTITY DESCRIPTION PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 1 LS Mobilization and Project Scheduling $500,000.00 $500,000.00 $984,000.00 $984,000.00 $800,000.00 $800,000.00 $703,809.94 $703,809. 94 2 1 F.A. Additional Work Items $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 3 1 L.S. Water Quality (BMP's) $50,000.00 $50,000.00 $24,000.00 $24,000.00 $74,000.00 $74,000.00 $52,600.38 $52,600.38 4 1 L.S. Temporary Traffic Control $250,000.00 $250,000.00 $325,000.00 $325,000.00 $400,000.00 $400,000.00 $470,043.67 $470,043.67 5 1 L.S.

Striping, Thermoplastic Striping, Green Thermoplastic
Striping (pre-forms), Traffic Signing, Pavement Markings, & RPM's
$150,000.00 $150,000.00 $110,000.00 $110,000.00 $110,000.00 $110,000.00 $128,558.36 $128,558.36 6 58,000 S.F. Remove & Reconstruct Concrete Sidewalk (4-inch Concrete over 4-inch C.M.B) including ADA ramps $20.00 $1,160,000.00 $21.00 $1,218,000.00 $20.00 $1,160,000.00 $19.80 $1,148,206.67 7 23,710 L.F. Remove Existing and Reconstruct C-6 Curb & Gutter over 6" C.M.B with 2' A.C. Slot Pave $95.00 $2,252,450.00 $134.00 $3,177,140.00 $140.00 $3,319,400.00 $110.72 $2,625,171.20 8 1,140 L.F. Remove Existing and Reconstruct C-8 Curb & Gutter over 6" CMB with 2' A.C. Slot Pave $100.00 $114,000.00 $134.00 $152,760.00 $158.00 $180,120.00 $121.17 $138,130.00 9 26,800 S.F.

Remove & Reconstruct P.C.C. Cross-Gutter, Spandrel,
Local Depression, and P.C.C. Pad (8" Concrete over
8"inch C.M.B) with 3' A.C. Slot Pave
$45.00 $1,206,000.00 $51.00 $1,366,800.00 $74.00 $1,983,200.00 $50.80 $1,361,529.33 10 16,450 S.F. Remove Existing and Reconstruct P.C.C. Driveway Approach (6-inch Concrete over 6-inch C.M.B.) $28.00 $460,600.00 $31.00 $509,950.00 $31.50 $518,175.00 $28.92 $475,679.17 11 50 TONS Remove & Reconstruct Miscellaneous AC Pavement (excludes 2' AC Slot Pave) $350.00 $17,500.00 $720.00 $36,000.00 $406.00 $20,300.00 $579.67 $28,983.33 12 1,150 L.F. Paint Curb Existing Color $5.00 $5,750.00 $3.00 $3,450.00 $3.15 $3,622.50 $4.12 $4,734.17 13 6,368 L.F. Root Prune and Install Root Barrier $52.00 $331,136.00 $51.00 $324,768.00 $52.50 $334,320.00 $49.04 $312,297.33 14 86 EA Install Truncated Domes (ADA ramps) $1,000.00 $86,000.00 $985.00 $84,710.00 $715.00 $61,490.00 $984.67 $84,681.33 15 858,620 S.F. Cold Mill (2-inch Minimum Depth) $0.45 $386,379.00 $0.45 $386,379.00 $0.38 $326,275.60 $0.45 $389,241.07 16 23,000 S.F. Cold Mill (6-inch Depth) - Balearic Park Playground $1.40 $32,200.00 $1.67 $38,410.00 $1.65 $37,950.00 $1.85 $42,473.33 17 870 TONS AC Overlay ( 6-inch Depth)-Balearic Park Playground $150.00 $130,500.00 $130.00 $113,100.00 $168.00 $146,160.00 $134.21 $116 ,761.25 18 13,500 TONS Type "C" Asphalt Concrete (A.C.) Overlay (Paving Machine) - Surface Course $135.00 $1,822,500.00 $123.00 $1,660,500.00 $135.00 $1,822,500.00 $126.29 $1,704,937.50 19 440 TONS Type "B" Asphalt Concrete ( A.C.) Base Course (Paving Machine) $150.00 $66,000.00 $162.00 $71,280.00 $170.00 $74,800.00 $151.29 $66,568.33 20 1,475 TONS Type "D" Asphalt Concrete (A.C.) Leveling Course (Paving Machine) $150.00 $221,250.00 $150.00 $221,250.00 $185.00 $272,875.00 $163.54 $241,223.96 21 600 TONS Remove & Reconstruct Asphalt Concrete ( A.C.) 6-inch Minimum Depth. (Including Excavation) - Digouts $300.00 $180,000.00 $310.00 $186,000.00 $306.00 $183,600.00 $313.42 $188,050.00 22 6 EA Install Type "E" Traffic Signal Loops $500.00 $3,000.00 $460.00 $2,760.00 $475.00 $2,850.00 $628.83 $3,773.00 23 4 EA Install Type "F" or modified Type "F" Traffic Signal Loops $530.00 $2,120.00 $480.00 $1,920.00 $500.00 $2,000.00 $645.00 $2,580. 00 24 80 EA Install Blue Raised Pavement Markers (BRPM) $30.00 $2,400.00 $23.00 $1,840.00 $11.00 $880.00 $19.13 $1,530.00 25 36 EA Adjust and Reset Existing Survey Monuments and Ties per California Licensed Land Surveyor $750.00 $27,000.00 $700.00 $25,200.00 $1,300.00 $46,800.00 $1,107.04 $39,853.50 26 87 EA Adjust Manhole Covers to Grade $1,250.00 $108,750.00 $2,000.00 $174,000.00 $1,300.00 $113,100.00 $1,379.88 $120,049.13 27 93 EA Adjust Water Valves to Grade $1,200.00 $111,600.00 $1,600.00 $148,800.00 $1,300.00 $120,900.00 $1,239.17 $115,242.50 28 2 EA Adjust Well Monuments to Grade $1,500.00 $3,000.00 $1,600.00 $3,200.00 $1,400.00 $2,800.00 $1,389.17 $2,778.33 29 940 ELT Slurry Seal Type II with 2.5% Latex $330.00 $310,200.00 $253.00 $237,820.00 $310.00 $291,400.00 $314.63 $295,747.50 30 62,650 L.F. Edge Grinding (18 inch width max) $1.10 $68,915.00 $1.45 $90,842.50 $1.05 $65,782.50 $1.10 $68,706.17 31 1 L.S. Crack Seal $50,000.00 $50,000.00 $110,000.00 $110,000.00 $72,000.00 $72,000.00 $75,976.08 $75,976.08 PROJECT BASE BID TOTAL: $10,409,250.00 $12,089,879.50 $12,847,300.60 $11,309,916.52

CITY ESTIMATE

AVERAGE
ORANGE
UNIT

BASE BID LONG BEACH

5. PALP DBA EXCEL PAVING 6. R.J. NOBLE COMPANY
PAGE 2 OF 2
ATTACHMENT 2
855
1 CITY OF COSTA MESA

PUBLIC WORKS AGREEMENT FOR
CITY PROJECT NO. 24-03
THIS PUBLIC WORKS AGREEMENT (“Agreement”), dated November 19, 2024 (“Effective Date”), is made by the CITY OF COSTA MESA, a political subdivision of the State of California (“CITY”), and ONYX PAVING COMPANY, INC. a California corporation (“CONTRACTOR”).

WHEREAS, CITY desires to construct the public improvements described below under Paragraph 1, Scope of Work (the “Project”); and
WHEREAS, CITY has determined that CONTRACTOR is the lowest responsible bidder; and
WHEREAS, CITY now desires to contract with CONTRACTOR to furnish construction and related services for the Project; and
WHEREAS, CITY and CONTRACTOR desire to set forth their rights, duties and liabilities in connection with the services to be performed.

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

1. SCOPE OF WORK.

The scope of work generally consists of a citywide parkway maintenance, street rehabilitation and slurry seal project (the “Work”).

The Work is further described in the “Contract Documents” referred to below.

The Project is known as the 2024-2025 Citywide Parkway Maintenance, Street and Rehabilitation, and Slurry Seal Project, City Project No.24-03 (the “Project”).

2. CONTRACT DOCUMENTS.

The complete Agreement consists of the following documents relating to the Project:
(a) This Agreement;
(b) CONTRACTOR’s bid, attached hereto as Exhibit A and incorporated herein; (c) Bid packag e, including , but not limited to, notice inviting bids, complete plans, profiles, detailed drawings and specifications, general provisions and special provisions. The bid package is attached hereto as Exhibit B and Attachment 3
856
Project and Specification No. 24-03
2 incorporated herein;

(d) Faithful Performance Bond and Labor and Material Bond, including agent’s Power of Attorney for each bond, attached hereto as Exhibit C;

(e) Drug-Free Workplace Policy, attached hereto as Exhibit D and incorporated herein; and

(f) Provisions of the most current edition of The Greenbook: Standard Specifications for Public Works Construction (“The Greenbook”). Provisions of The Greenbook are incorporated by this reference as if fully set forth herein.

The documents comprising the complete Agreement will be referred to as the “Contract Documents.”

All of the Contract Documents are intended to complement one another, so that any Work called for in one and not mentioned in another is to be performed as if mentioned in all documents.

In the event of an inconsistency in the Contract Documents, the terms of this Agreement shall prevail over all other Contract Documents. The order of precedence between the remaining Contract Documents shall be as set forth in The Greenbook.

The Contract Documents constitute the entire agreement between the parties and supersede any and all other writings and oral negotiations.

3. CITY’S REPRESENTATIVE.

The CITY’s Representative is Cristina Oquendo, referred to herein as the Project Manager (“Project Manager”).

4. CONTRACTOR’S PROJECT MANAGER; PERSONNEL.

(a) Project Manager. CONTRACTOR’s Project Manager must be approved by City. Such approval shall be at CITY’s sole discretion.

(b) Personnel. CITY has the right to review and approve any personnel who are assigned to perform work under this Agreement. CONTRACTOR shall remove personnel from performing work under this Agreement if requested to do so by CITY.

This Paragraph 4 is a material provision of the Agreement.

5. SCHEDULE.

All Work shall be performed in accordance with the schedule approved on behalf 857
Project and Specification No. 24-03
3 of CITY by the Project Manager, and in accordance with the time of performance set forth in Paragraph 11 (Time of Performance).

6. EQUIPMENT - PERFORMANCE OF WORK.

CONTRACTOR shall furnish all tools, equipment, apparatus, facilities, labor and materials necessary to perform and complete the Work in a good and workmanlike manner in strict conformity with the Contract Documents.

The equipment, apparatus, facilities, labor and material shall be furnished and such Work performed and completed as required in the plans and specifications to the satisfaction of the Project Manager or his or her designee, and subject to his or her approval.

7. COMPENSATION.

CITY shall pay CONTRACTOR in accordance with the fee schedule set forth in CONTRACTOR’s bid. CONTRACTOR’s total compensation shall not exceed Nine Million One Hundred Sixty-Three Thousand Dollars ($9,163,000.00).

8. ADDITIONAL SERVICES.

CONTRACTOR shall not receive compensation for any services provided outside the scope of the Contract Documents unless such additional services, including change orders, are approved in writing by CITY prior to CONTRACTOR performing the additional services.

It is specifically understood that oral requests or approvals of such additional services, change orders or additional compensation and any approvals from CITY shall be barred and are unenforceable.

9. PAYMENTS TO CONTRACTOR.

On or before the last Monday of each and every month during the performance of the Work, CONTRACTOR shall meet with the Project Manager or his or her designee to determine the quantity of pay items incorporated into the improvement during that month.

A “Progress Payment Order” will then be jointly prepared, approved, and signed by the Project Manager and the CONTRACTOR setting forth the amount to be pai d and providing for a five percent (5%) retention. Upon approval of the progress payment order by the Project Manager, or his or her designee, it shall be submitted to CITY’s Finance Department and processed for payment by obtaining approval from the City Council to issue a warrant.

Within three (3) days following City Council’s approval to issue a warrant, CITY shall mail to CONTRACTOR a warrant for the amount specified in the progress payment order as the amount to be paid. The retained five percent (5%) shall be paid to 858
Project and Specification No. 24-03
4 CONTRACTOR thirty-five (35) days after the recording of the Notice of Completion of the Work by the CITY with the Orange County Clerk-Recorder and after CONTRACTOR has furnished releases of all claims against CITY by persons who furnished labor or materials for the Work, if required by CITY.

Upon the request of CONTRACTOR and at its expense, securities equivalent to the amount withheld pursuant to the foregoing provisions may be presented to CITY for substitution for the retained funds. If CITY approves the form and amount of the offered securities it will release the retained funds and will hold the securities in lieu thereof.

CONTRACTOR shall be entitled to any interest earned on the securities.

In the event that claims for property damage or bodily injury are presented to CITY arising out of CONTRACTOR’s or any subcontractor’s work under this Agreement, CITY shall give notice thereof to CONTRACTOR, and CONTRACTOR shall have thirty-five (35) days from the mailing of any such notice to evaluate the claim and to settle it by whole or partial payment, or to reject it, and to give notice of settlement or rejection to CITY. If CITY does not receive notice within the above-mentioned 35-day period that the claim has been settled, and if the Project Manager, after consultation with the City Attorney, determines that the claim is meritorious, CITY may pay the claim or a portion of it in exchange for an appropriate release from the claimant, and may deduct th e amount of the payment from the retained funds that would otherwise be paid to CONTRACTOR upon completion of the Work; provided, however, that the maximum amount paid for any one claim pursuant to this provision shall be One Thousand Dollars ($1,000.00), and the maximum amount for all such claims in the aggregate paid pursuant to this provision shall be Five Thousand Dollars ($5,000.00).

10. PROMPT PAYMENT OF SUBCONTRACTORS.

CONTRACTOR agrees to pay each subcontractor under this Agreement for satisfactory performance of its contract no later than seven (7) days from the receipt of each payment the CONTRACTOR receives from CITY.

CONTRACTOR agrees further to release retainage payments to each subcontractor within thirty (30) days after the subcontractor’s work is satisfactorily completed.

Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the CITY.

11. TIME OF PERFORMANCE.

CONTRACTOR shall commence Work by the date specified in CITY’s Notice to Proceed, unless a later date is agreed upon in writing by the parties. The Work shall be completed within one hundred thirty (130) working days from the date set in the Notice- to-Proceed or the the first day of commencement of the Work, whichever occurs first.

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5 12. TERMINATION.

(a) Termination for Convenience. CITY may terminate this Agreement at any time, with or without cause, by providing thirty (30) days’ written notice to CONTRACTOR.

(b) Termination for Breach of Contract.

(i) If CONTRACTOR refuses or fails to prosecute the Work or any severable part of it with such diligence as will ensure its timely completion, or if CONTRACTOR fails to complete the Work on time, or if CONTRACTOR, or any subcontractor, violates any of the provisions of the Contract Documents, the Project Manager may give written notice to CONTRACTOR and CONTRACTOR’s sureties of the CITY’s intention to terminate this Agreement; and, unless within five (5) days after the serving of that notice, such conduct s hall cease and arrangements for the correction thereof be made to the satisfaction of the CITY, this Agreement may be terminated at the option of CITY effective upon CONTRACTOR’s receipt of a second notice sent by the CITY indicating that the CITY has exercised its option to terminate.

(ii) If CONTRACTOR is adjudged bankrupt or files for any relief under the Federal Bankruptcy Code or State insolvency laws, this Agreement shall automatically terminate without any further action or notice by CITY.

(iii) If CONTRACTOR is in breach of any material provision of this Agreement, CITY may immediately terminate this Agreement by providing written notice to CONTRACTOR of same.

13. LIQUIDATED DAMAGES.

In the event the Work is not completed, for any reason, within the time required including any approved extensions of time, and to the satisfaction of the Project Manager, CITY may, in addition to any other remedies, equitable and legal, including remedies authorized by Paragraph 12 (Termination) of this Agreement, charge to CONTRACTOR or its sureties, or deduct from payments or credits due CONTRACTOR, a sum equal to Six Thousand Seven Hundred Dollars ($6,700.00) as liquidated damages for each calendar day beyond the date provided for the completion of such work.

The parties hereto agree that the amount set forth above, as liquidated damages constitutes a fair and reasonable estimate of the costs the CITY would suffer for each day that the CONTRACTOR fails to meet the performance schedule. The parties hereby agree and acknowledge that the delays in the performance schedule will cause CITY to incur costs and expenses not contemplated by this Agreement.

14. PERFORMANCE BY SURETIES.
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6 In the event CONTRACTOR fails or refuses to perform the Work, CITY may provide CONTRACTOR with a notice of intent to terminate as provided in Paragraph 12 (Termination), of this Agreement. CITY shall immediately give written notice of such intent to terminate to CONTRACTOR and CONTRACTOR’s surety or sureties, and the sureties shall have the right to take over and perform this Agreement; provided, however, that the sureties must, within five (5) days after CITY’s giving notice of termination, (a) give the CITY written notice of their intention to take over the performance of this Agreement; (b) provide adequate assurances, to the satisfaction of the CITY, that the Work shall be performed diligently and in a timely manner; and (c) must commence performance thereof within five (5) days after providing notice to the CITY of their intention to take over the Work. Upon the failure of the sureties to comply with the provisions set forth above, CITY may take over the Work and complete i t, at the expense of CONTRACTOR, and the CONTRACTOR and the sureties shall be liable to CITY for any excess costs or damages including those referred to in Paragraph 13 (Liquidated Damages), incurred by CITY. In such event, CITY may, without liability for so doing, take possession of such materials, equipment, tools, appliances, Contract Documents and other property belonging to CONTRACTOR as may be on the site of the Work and reasonably necessary therefor and may use them to complete the Work.

15. DISPUTES PERTAINING TO PAYMENT FOR WORK.

Should any dispute arise respecting whether any delay is excusable, or its duration, or the value of the Work done, or of any Work omitted, or of any extra Work which CONTRACTOR may be required to do, or respecting any payment to CONTRACTOR during the performance of this Agreement, such dispute shall be decided by the Project Manager, and his or her decisions shall be final and binding upon CONTRACTOR and its sureties.

16. SUPERINTENDENCE BY CONTRACTOR.

At all times during performance of the Work, CONTRACTOR shall give personal superintendence or have a competent foreman or superintendent on the worksite, with authority to act for CONTRACTOR.

17. INSPECTION BY CITY.

CONTRACTOR shall at all times maintain proper facilities and provide safe access for inspection by CITY to all parts of the Work and to all shops on or off -site where the Work or portions of the Work, are in preparation. CITY shall have the right of access to the premises for inspection at all times. However, CITY shall, at all times, comply with CONTRACTOR’s safety requirements on the job site.

18. CARE OF THE WORK AND OFF-SITE AUTHORIZATION.

CONTRACTOR warrants that it has examined the site of the Work and is familiar 861
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7 with its topography and condition, location of property lines, easements, building lines and other physical factors and limitations affecting the performance of this Agreement.

CONTRACTOR, at CONTRACTOR’s sole cost and expense, shall obtain any permission, and all approvals, licenses, or easements necessary for any operations conducted off the premises owned or controlled by CITY. CONTRACTOR shall be responsible for the proper care and protection of all materials delivered to the site or stored off -site and for the Work performed until completion and final inspection and acceptance by CITY. The risk, damage or destruction of materials delivered to the site or to Work performed shall be borne by CONTRACTOR.

19. CONTRACT SECURITY AND GUARANTEE.

CONTRACTOR shall furnish, concurrently with the execution of this Agreement, the following: (1) a surety bond in an amount equal to one hundred percent (100%) of the contract price as security for the faithful performance of this Agreement, and (2) a separate surety bond in an amount equal to at least one hundred percent (100%) of the contract price as security for the payment of all persons furnishing labor or materials in connection with the Work under this Agreement. Sureties for each of the bonds and th e forms thereof shall be satisfactory to CITY. In addition, such sureties must be authorized to issue bonds in California; sureties must be listed on the latest revision to the U.S.

Department of the Treasury Circular 570; and must be shown to have suffici ent bonding capacity to provide the bonds required by the Contract Documents.

CONTRACTOR shall provide a certified copy of the certificate of authority of the surety issued by the Insurance Commissioner; a certificate from the clerk of the county in which the court or officer is located that the certificate of authority of the suret y has not been surrendered, revoked, canceled, annulled, or suspended or, in the event that it has, that renewed authority has been granted; and copies of the surety’s most recent annual statement and quarterly statement filed with the Department of Insura nce pursuant to Article 10 (commencing with Section 900) of Chapter 1 of Part 2 of Division 1 of the Insurance Code.

CONTRACTOR guarantees that all materials used in the Work and all labor performed shall be in conformity with the Contract Documents including, but not limited to, the standards and specifications set forth in the most current edition of The Greenbook.

CONTRACTOR shall, at its own expense, make any and all repairs and replacements that shall become necessary as the result of any failure of the Work to conform to the aforementioned Contract Documents, and/or standard specifications; provided, however, that CONTRACTOR shall be obligated under this provision only to the extent of those failures or defects of which CONTRACTOR is given notice within a period of twelve (12) months from the date that the Notice of Completion is recorded.

The rights and remedies available to CITY pursuant to this provision shall be cumulative with all rights and remedies available to CITY pursuant to statutory and common law, which rights and remedies are hereby expressly reserved, and neither the foregoing guarantee by CONTRACTOR nor its furnishing of the bonds, nor acceptance 862
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8 thereof by CITY, shall constitute a waiver of any rights or remedies available to CITY against CONTRACTOR.

20. INDEMNIFICATION.

CONTRACTOR agrees to protect, defend, indemnify and hold harmless CITY and its elected and appointed boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys’ fees, for injury to or death of any person, and for injury or damage to any property, including consequential damages of any nature resulting therefrom, arising out of or in any way connected with the performance of this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the CONTRACTOR, 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 CONTRACTOR, 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 CONTRACTOR, its employees, and/or authorized subcontractors under this Agreement, whether or not the CONTRACTOR, its employees, and/or authorized subcontr actors are specifically named or otherwise asserted to be liable.

Notwithstanding the foregoing, the CONTRACTOR 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 CONTRACTOR’s proposal, which shall be of no force and effect.

CONTRACTOR shall comply with all of the provisions of the Workers’ Compensation insurance laws and Safety in Employment laws of the State of California, including the applicable provisions of Divisions 4 and 5 of the California Labor Code and all amendments thereto and regulations promulgated pursuant thereto, and all similar State, Federal or local laws applicable; and CONTRACTOR shall indemnify and hold harmless CITY from and against all claims, liabilities, expenses, damages, suits, actions, proceedings and judgments, of every nature and description, including attorney fees, that may be presented, brought or recovered against CITY for or on account of any liability under or failure to comply with any of said laws which may be incurred by reason of any Work performed under this Agreement by CONTRACTOR or any subcontractor or others performing on behalf of CONTRACTOR.

CITY does not, and shall not, waive any rights against CONTRACTOR which it may have by reason of the above hold harmless agreements, because of the acceptance by CITY or the deposit with CITY by CONTRACTOR of any or all of the insurance policies described in Paragraph 21 (Insurance) of this Agreement.

The hold harmless agreements by CONTRACTOR shall apply to all liabilities, expenses, claims, and damages of every kind (including but not limited to attorneys’ fees) incurred or alleged to have been incurred, by reason of the operations of CONTRACTOR 863
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9 or any subcontractor or others performing on behalf of CONTRACTOR, whether or not such insurance policies are applicable. CONTRACTOR shall require any and all tiers of subcontractors to afford the same degree of indemnification to the CITY OF COSTA MESA an d its elected and appointed boards, officers, agents, and employees that is required of CONTRACTOR and shall incorporate identical indemnity provisions in all contracts between CONTRACTOR and all tiers of its subcontractors.

In the event that CONTRACTOR and CITY are sued by a third party for damages caused or allegedly caused by negligent or other wrongful conduct of CONTRACTOR, or by a dangerous condition of CITY’s property created by CONTRACTOR or existing while the propert y was under the control of CONTRACTOR, CONTRACTOR shall not be relieved of its indemnity obligation to CITY by any settlement with any such third party unless that settlement includes a full release and dismissal of all claims by the third party against the CITY.

21. INSURANCE.

(a) Minimum Scope and Limits of Insurance . CONTRACTOR shall not commence work under this Agreement until it has obtained all insurance required under this Paragraph 21 and CITY has approved the insurance as to form, amount, and carrier, nor shall CONTRACTOR allow any subcontractor to commence any Work until all similar insurance required of the subcontractor has been obtained and approved.

CONTRACTOR shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, rated “A,” Class X, or better in the most recent Best’s Key Insurance Rating Guide, and approved by CITY:

(i) 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. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit.

(ii) 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.

(iii) Workers’ compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. CONTRACTOR agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its 864
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10 workers’ compensation insurance policy against the CITY, its officers, agents, employees, and volunteers arising from work performed by CONTRACTOR for the CITY and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies.

(iv) Umbrella or excess liability insurance that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and emp loyer’s liability. Such policy or policies shall include the following terms and conditions:

(1) A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason;
(2) Pay on behalf of wording as opposed to reimbursement; (3) Concurrency of effective dates with primary policies; (4) Policies shall “follow form” to underlying primary policies; and (5) Insureds under primary policies shall also be insureds under the umbrella or excess policies.

(b) Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions:

(i) 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 CONTRACTOR pursuant to its contract with the City; products and completed operations of the CONTRACTOR; premises owned, occupied or used by the CONTRACTOR; automobiles owned, leased, hired, or borrowed by the CONTRACTOR.”

(ii) Notice: “Said policy shall not terminate, nor shall it be canceled nor the coverage reduced, until thirty (30) days after written notice is given to CITY.”

(iii) Other Insurance: “CONTRACTOR’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.”

(c) Reporting Provisions . Any failure of CONTRACTOR 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.

(d) Insurance Applies Separately . CONTRACTOR’s insurance shall apply 865
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11 separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

(e) 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 a dditional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self-insured retention.

(f) Proof of Insurance. Prior to commencement of the Work, CONTRACTOR shall furnish CITY, through the Project Manager, proof of compliance with the above insurance requirements in a form satisfactory to City’s Risk Management.

(g) Non-Limiting. Nothing in this Paragraph 21 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.

22. PREVAILING WAGE REQUIREMENTS.

(a) Prevailing Wage Laws . CONTRACTOR is aware of the requirements of Chapter 1 (beginning at Section 1720 et seq.) of Part 7 of Division 2 of the California Labor Code, as well as Title 8, Section 16000 et seq. of the California Code of Regulations (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. This Project is a “public works” project and requires compliance with the Prevailing Wage Laws. CONTRACTOR shall defend, indemnify and hold the CITY, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

(b) Payment of Prevailing Wages . CONTRACTOR shall pay the prevailing wage rates for all work performed under this Agreement. When any craft or classification is omitted from the general prevailing wage determinations, CONTRACTOR shall pay the wage rate of the craft or classification most closely related to the omitted classification. A copy of the general prevailing wage rate determination is on file in the Office of the City Clerk and is incorporated into this Agreement as if fully set forth herein. CONTRA CTOR shall post a copy of such wage rates at all times at the project site(s).

(c) Legal Working Day . In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day. CONTRACTOR and any subcontractor(s) of CONTRACTOR shall comply with the provisions of the Labor Code regarding eight (8) -hour work day and 40 -hour work week requirements, and overtime, Saturday, Sunday, and holiday work. Work performed by CONTRACTOR’s or any subcontractor’s employees in excess of eight (8) hours per day, and 40 hours during any one week, must include compensation for all hours wor ked in excess of eight (8) hours per day, or 40 hours during any one week, at not less than one and one -half times the 866
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12 basic rate of pay. CONTRACTOR shall forfeit as a penalty to CITY Twenty -Five Dollars ($25.00), or any greater penalty set forth in the Labor Code, for each worker employed in the execution of the Work by CONTRACTOR or by any subcontractor(s) of CONTRACTOR, for each calendar day during which such worker is required or permitted to the work more than eight (8) hours in one calendar day or more than 40 hours in any one calendar week in violation of the Labor Code.

(d) Apprentices. CONTRACTOR shall comply with the provisions of Labor Code Section 1777.5 concerning the employment of apprentices on public works projects.

CONTRACTOR shall be responsible for ensuring compliance by its subcontractors with Labor Code Section 1777.5.

(e) Payroll Records. Pursuant to Labor Code Section 1776, CONTRACTOR and any subcontractor(s) shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actua l per diem wages paid to each journeyman, apprentice, worker, or other employee employed by CONTRACTOR or any subcontractor in connection with this Agreement. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct; and (2) The employer has complied with the requirements of Sections 1771, 1881, and 1815 of the Labor Code for any work performed by his or her employees on this Project. The payroll records shall be certified and shall be available for inspection at all reasonable hours in accordance with the requirements of Labor Code Section 1776. CONTRACTOR shall also furnish each week to CITY’s Project Administration Division a statement with respect to the wages of each of its employees during the preceding weekly payroll period.

(f) Registration with DIR . CONTRACTOR and any subcontractor(s) of CONTRACTOR shall comply with the provisions of Labor Code Section 1771 and Labor Code Section 1725.5 requiring registration with the DIR.

23. COMPLIANCE WITH ALL LAWS.

CONTRACTOR shall, at its own cost and expense, comply with all applicable local, state, and federal laws, regulations, and requirements in the performance of this Agreement, including but not limited to laws regarding health and safety, labor and employment, and wage and hours.

24. DRUG-FREE WORKPLACE POLICY.

CONTRACTOR, upon notification of the award of this Agreement, shall establish a Drug-Free Awareness Program to inform employees of the dangers of drug abuse in the workplace, the penalties that may be imposed upon employees for drug abuse violations occurring in the workplace, and the employee assistance programs available to employees. Each employee engaged in the performance of a CITY contract must be notified of this Drug -Free Awareness Program, and must abide by its terms. 867
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13 CONTRACTOR shall conform to all the requirements of CITY’s Policy No. 100 -5, attached hereto. Failure to establish a program, notify employ ees, or inform the CITY of a drug-related workplace conviction will constitute a material breach of contract and cause for immediate termination of the contract by the CITY.

25. NON–DISCRIMINATION.

In performing this Agreement, CONTRACTOR will not engage in, nor permit its agents to engage in, discrimination in employ ment of persons because of their race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status or sex, or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code. Violation of this provision may result in the imposition of penalties referred to in Section 1735 of the California Labor Code.

26. PROVISIONS CUMULATIVE.

The provisions of this Agreement are cumulative and in addition to, and not in limitation of, any other rights or remedies available to CITY.

27. NOTICES.

It shall be the duty and responsibility of CONTRAC TOR to notify all tiers of subcontractors and material men of the following special notice provision; namely, all preliminary 20-day notices or stop notices shall be directed only to the City Clerk and to no other department, and shall be either personally delivered or sent by certified mail, postage prepaid.

All other notices shall be in writing and delivered in person or sent by certified mail, postage prepaid. Notices required to be given to CITY pursuant to this Agreement shall be addressed as follows:

City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Attn: Seung Yang

Notices required to be given to CONTRACTOR shall be addressed as follows:

Onyx Paving Company, Inc.
2890 E. La Cresta Avenue
Anaheim, CA 92806
Attn: Corey R. Kirschner, Principal

Notices required to be given to CONTRACTOR’s sureties shall be addressed as follows:

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14 Swiss Re Corporate Solutions American Insurance Corporation 1200 Main Street, Suite 800
Kansas City, MO 64105-2478
Attn: Jeffrey Goldberg, Senior Vice President

28. INDEPENDENT CONTRACTOR.

The parties hereto acknowledge and agree that the relationship between CITY and CONTRACTOR is one of principal and independent contractor and no other. All personnel to be utilized by CONTRACTOR in the performance of this Agreement shall be employees of CONTRACTOR and not employees of the CITY. CONTRACTOR shall pay all salaries and wages, employer’s social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes.

Nothing contained in this Agreement shall create or be construed as creating a partnership, joint venture, employment relations, or any other relationship except as set forth between the parties. The parties specifically acknowledge and agree that CONTRACTOR is not a partner with CITY, whether general or limited, and no activities of CITY or CONTRACTOR or statements made by CITY or CONTRACTOR shall be interpreted by any of the parties hereto as establishing any type of business relationship other than an independent contractor relationship.

29. PERS ELIGIBILITY INDEMNIFICATION.

In the event that CONTRACTOR or any employee, agent, or subcontractor of CONTRACTOR 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 elig ible for enrollment in PERS as an employee of the CITY, CONTRACTOR shall indemnify, defend, and hold harmless CITY for the payment of any employee and/or employer contributions for PERS benefits on behalf of CONTRACTOR or its employees, agents, or subcontr actors, 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, CONTRACTOR 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.

30. VALIDITY.

The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any of the other provisions of this Agreement.

31. GOVERNING LAW.

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15 This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any legal action relating to or arising out of this Agreement shall be subject to the jurisdiction of the County of Orange, California.

32. NO THIRD PARTY BENEFICIARY RIGHTS.

This Agreement is entered into for the sole benefit of the CITY and CONTRACTOR 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.

33. ASSIGNABILITY.

This Agreement may not be transferred or assigned by either party, or by operation of law, to any other person or persons or business entity, without the other party’s written permission. Any such transfer or assignment, or attempted transfer or assignment , without written permission, may be deemed by the other party to constitute a voluntary termination of this Agreement and this Agreement shall thereafter be deemed terminated and void.

34. WAIVER.

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 referring expressly to this Paragraph. 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.

35. HEADINGS.

Section and subsection headings are not to be considered part of this Agreement, are included solely for convenience, and are not intended to modify or explain or to be a full or accurate description of the content thereof.

36. 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.

37. COUNTERPARTS.
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16 This Agreement may be executed in one or more counterparts by the parties hereto. All counterparts shall be construed together and shall constitute one Agreement.

38. 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.

[Signature page follows.]
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17 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.

CITY OF COSTA MESA
A municipal corporation

__________________________________ Date: _____________________ Lori Ann Farrell Harrison
City Manager

CONTRACTOR

__________________________________ Date: _____________________ Signature

__________________________________
Name and Title

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 PURCHASING:
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18 __________________________________ Date: _____________________ Carol Molina
Finance Director

DEPARTMENTAL APPROVAL:

__________________________________ Date: _____________________ Raja Sethuraman
Public Works Director

__________________________________ Date: _____________________ Seung Yang
Project Manager

873

EXHIBIT A

CONTRACTOR’S BID

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-407 Meeting Date: 11/19/2024
TITLE:

APPROVE THE ACQUISITION OF REAL PROPERTY LOCATED AT 778 SHALIMAR DRIVE, COSTA MESA, CA 92627 FOR EVALUATION OF COMMUNITY SERVING PUBLIC USES DEPARTMENT: CITY MANAGER’S OFFICE, ADMINISTRATION
PRESENTED BY: CECILIA GALLARDO-DALY, ASSISTANT CITY MANAGER CONTACT INFORMATION: SERGIO ESCOBAR, MANAGEMENT ANALYST (714) 754-5156 RECOMMENDATION:

Staff recommends the City Council:

1. Determine the acquisition of the property is exempt from analysis under the California Environmental Quality Act (CEQA).

2. Approve the acquisition of real property located at 778 Shalimar Drive, Costa Mesa, CA 92627 for evaluation of community serving public uses.

3. Authorize the release of all contingency items related to the Real Estate Purchase Agreement, including appraisal and inspections.

4. Authorize a budget appropriation in the amount of $1.5 million from audited General Fund Unassigned Fund Balances for the acquisition of 778 Shalimar Drive, Costa Mesa, CA 92627.

5. Authorize the City Manager and City Clerk to execute any and all real estate purchase documents, disclosures, escrow paperwork and future authorized changes and amendments necessary.

BACKGROUND:

The residential real property (Property) located at 778 Shalimar Drive, Costa Mesa, CA 92627, Assessor Parcel Number (APN) 424-051-23 was listed for sale on May 23, 2024 at a listing price of $1,850,000. The 6,970 square-foot property includes a 3,390 square- foot, four-unit residential structure, with each unit having two bedrooms with one bathroom. Currently, three of the four units are occupied, with one unit vacant.

The property is adjacent to Shalimar Park, which is located in the Westside neighborhood of Costa Mesa along Shalimar Drive between Wallace Avenue and Placentia Avenue. The park was dedicated in January 1999, and despite its relatively small size, less than half-acre, the current park includes a playground featuring elements for young children, trees, seating area and benches.

The park is situated in an open space deficient community, between two apartment complexes (one

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File #: 24-407 Meeting Date: 11/19/2024
The park is situated in an open space deficient community, between two apartment complexes (one being the subject property for sale) and is an essential part of the community in serving the nearby underserved residents with recreational amenities. The City secured state grant funding through State Senator Dave Min for various parks projects, of which $1.0 million was allocated for Shalimar Park and is currently underway.

In June 2024, City staff identified the potential land acquisition of the residential real property at 778 Shalimar Drive that could potentially expand the Shalimar Park footprint to include a Community Center and/or expand the park to provide additional amenities and/or provide additional affordable housing. The City’sReal Estate consultant, Carlo Achdjian, contacted the seller to express the City’s interest in the property. The property owner was amenable to negotiating with the City. The City’s consultant has been in subsequent discussions with the seller for the potential acquisition of the property. City staff conducted a site visit of the property and visited three tenant-occupied units in June 2024. Staff observed that the property was in dilapidated condition.

The subject property presents the City a unique opportunity to potentially expand open space and recreational amenities, develop a community center, and/or improve affordable housing opportunities as a part of a broader effort to improve the quality of life residents of the Shalimar neighborhood. For these reasons, Staff presented this land acquisition opportunity for City Council consideration. The City Council authorized a letter of interest to be submitted to the seller in July 2024 to begin negotiations.

Exhibit 1 - Shalimar Park
On August 6, 2024, the City Council authorized Staff to begin negotiating the Price and Terms of Payment for the property. At the direction of the City Council, the City Real Estate Consultant and City Attorney prepared a draft Real Property Purchase Agreement.

On November 12, 2024, the Planning Commission adopted Resolution PC 2024-26 finding that the proposed acquisition of real property at 778 Shalimar Drive is in conformance with the City of Costa Mesa General Plan and is not subject to the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061 (b)(3).

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ANALYSIS:

The acquisition of the property located at 778 Shalimar Drive presents the City with a unique opportunity to expand community serving uses in a park deficient community, while also safeguarding the interests of nearby residents. Preliminary options, subject to further assessment, include expanding the current footprint of Shalimar Park by adding recreational and sports amenities, proposed construction of a community center, and/or enhancing the affordable housing opportunities at the site, or a combination thereof.

Exhibit 2 - 778 Shalimar Drive
Location Map Street View Property Facts
· Location: 778 Shalimar Drive
o Adjacent to Shalimar Park
· Year Built: 1961
· Property Type: Multi-Family
· Size:
o Lot: 6,970 S.F.
o Building: 3,390 S.F.
o Number of units: Four
· Occupancy
o Three occupied units and one vacant unit
o Number of tenants - 19
Existing Property Conditions
On June 27, 2024, City staff conducted a site visit with the City’sReal Estate Consultant and the property owner. Out of the four units, staff was provided access to three tenant occupied units and were informed that one unit had been recently remodeled; however, no access was provided to the vacant unit. During the visit, Staff observed that the units and overall property, are in poor condition and in dire need of substantial rehabilitation.

Currently, three of the four units are tenant occupied with one (remodeled) vacant unit. The total building occupancy is approximately 19 occupants.

Of the units visited, staff observed that substantial work would be required to bring the property to

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Of the units visited, staff observed that substantial work would be required to bring the property to code compliance and make the units habitable given the building conditions. City staff determined that should the City acquire the property, the four-unit structure should be demolished and unoccupied while the consideration of the property’s future is determined. The City is currently undertaking the renovation of nearby City-owned and vacant housing units that could offer a replacement housing for the current residents.

Real Property Purchase Agreement
The proposed Real Property Purchase Agreement, includes the following key provisions:
· The total purchase price for the property at $1,725,000; · The City shall deposit $100,000 for escrow within 30 days of approval of the Real Property Purchase Agreement;
· Escrow opening upon execution, and in accordance, of the Real Property Purchase Agreement;
· Due diligence required including property inspection and environmental assessment of any hazardous conditions of the property, i.e., lead, asbestos, soil contamination, etc. · Escrow shall be open for a period of 180 days following the execution of the Real Property Purchase Agreement to allow for tenant relocation.

Tenant Relocation Plan
The City entered into a Professional Service Agreement with Monument Inc. (Monument), to provide support services in connection with the relocation of the tenants at 778 Shalimar Drive pursuant to Federal and State law. Monument specializes in providing professional real estate and right-of-way services with knowledge of public sector requirements. Monument possesses the expertise and sensitivity to work effectively with a broad range of stakeholders and operates in conformance with all State and Federal laws including California Government Code, Section 7260, et seq, Title 25, the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 49 CFR Part 24, and within the applicable guidelines of the Caltrans Right of Way Manual and the Caltrans Local Assistance Procedures Manual.

Monument will assist the City by interviewing occupants of impacted units, prepare a relocation plan, draft relocation notices and meet with all tenants to present their relocation benefits, help tenants identify replacement units and prepare claims on their behalf, as required by the State relocation law.

In preparation of a relocation plan, Monument will conduct the following activities:
· Interview occupants to obtain needed tenant demographic information. The interview requests household information, including the number of persons, ages, gender, income information, distance to employment, medical and other special needs assessments, as well as over- crowding.
· Research the rental market for available replacement locations within the immediate community and surrounding areas.
· Ensure the potential eligibility calculation amounts for the determined placement of tenants into comparable units.
· Coordinate mandatory 30-Day Relocation Plan review and finalize the Plan upon receipt of

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· Coordinate mandatory 30-Day Relocation Plan review and finalize the Plan upon receipt of Public Comments.
· Present a draft Relocation Plan to the City Council for review and approval.

The Relocation Plan process is anticipated to take three months. Upon completion of the 30-Day Plan review, the Relocation Plan will be brought to the City Council for approval.

Tenant Relocation Process
While this is an exciting opportunity for the Shalimar neighborhood, it does impact the current tenants at this property. As part of this project, the City will be working closely with tenants to ensure that the transition is handled smoothly, with sensitivity and care. Residents living on the property will have the opportunity to relocate to City-owned affordable housing units in the immediate vicinity, preventing the displacement of tenants wishing to continue to be a part of the Shalimar neighborhood. This will also ensure there is no disruption to families with children attending local schools.

During the relocation process, Monument will conduct the following activities:
· Conduct personal, on-site interviews of existing tenants to ascertain relocation needs and special requirements.
· Inform tenants of relocation process, services and benefits. · Prepare and distribute General Information Notices, Notices of Eligibility, 90-Day Notices to Vacate, and other notices, as required.
· Assist tenants in locating to replacement sites and provide written referrals. · Provide on-going advisory assistance to tenants, including lists of qualified movers, if needed. · Coordinate and conduct the inspection to the replacement site. · Monitor the actual move to the replacement site, as necessary. · Prepare all benefit claim forms and submit to the City for processing and payment. · Deliver benefit checks and other appropriate payments to claimants.

The Relocation Process is anticipated to take three months. Tenants are eligible for moving expenses and a rent differential based on fair market value, if they move into a property with higher rent than the subject property. Altogether, the relocation preparation and process is anticipated to be six months, coinciding with the six-month escrow period.

Potential Uses
The City intends to evaluate the use of the property for a variety of community serving uses including the creation of a community center, expansion of Shalimar Park and/or enhanced affordable housing, among other possible community uses. All of these uses are currently allowed under existing zoning and General Plan Land Use designations.

Zoning District
The property is in the R-3 Multiple-Family Residential District. This district is intended to promote the development of multi-family rental as well as ownership dwelling units. The required minimum lot size is 12,000 square feet. The maximum density allowed is 2,178 square feet per dwelling unit, which equals 20 dwelling units per gross acre.

The City’sLand Use Matrix permits “parksand playgrounds”in the R3 Zoning District subject to the

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The City’sLand Use Matrix permits “parksand playgrounds”in the R3 Zoning District subject to the approval of a Conditional Use Permit (CUP).

General Plan Land Use Designation
HDR-High Density Residential. Areas designated as High-Density Residential are intended for residential development with a density of up to 20 units to the acre.

General Plan Conformance (Government Code Section 65402) Pursuant to Government Code Section 65402(a), if a general plan or part thereof has been adopted, no real property shall be acquired by dedication or otherwise for street, square, park or other public purposes, and no real property shall be disposed of, no street shall be vacated or abandoned, and no public building or structure shall be constructed or authorized, if the adopted general plan or part thereof applies thereto, until the location, purpose and extent of such acquisition or disposition, such street vacation or abandonment, or such public building or structure have been submitted to and reported upon by the planning agency as to conformity with said adopted general plan or part thereof.

On November 12, 2024, Pursuant to State Government Code Section 65402, the Planning Commission made a finding of General Plan conformity as discussed below:

1. Project conformance with General Plan in regard to “location” A potential park expansion would be located in the R3 zoning District which permits parks subject to the approval of a CUP. The adjacent neighborhood is established with multi-family residences that would be served by this park expansion. The City’s General Plan Open Space and Recreation Element identifies the subject property in “Planning Area 1” in regard to “underserved park areas” (the subject property location is shown as a red star in Exhibit 2 below). Although not considered a residential underserved park area specifically, the site is located in close proximity to a “residential underserved [park] area” located to the north which also includes two “park priority areas”.In addition, the General Plan identifies Planning Area 1 as “themost densely populated and highly developed area in the City, which leaves very limited opportunities for sites to fulfill parkland deficiency”.

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Exhibit 3 - Figure OSR-3: Planning Area and Underserved Park Areas (Planning Area 1)

2. Project conformance with General Plan in regard to “purpose” The purpose of the property acquisition and potential demolition of the existing residential units and development of a Community Center and expansion of the neighborhood park would be to provide park and/or other public-serving amenities for the surrounding neighborhood and community.

Creating additional park land would be consistent with the following Open Space and Recreation Element <
https://www.costamesaca.gov/home/showpublisheddocument/34706/636740022584770000> goal, objective, and policies:
· Goal OSR-1: Balanced and Accessible System of Parks and Open Spaces Provide a high-quality environment through the development of recreation resources and preservation of open space that meets community needs in Costa Mesa. · Objective OSR-1A: Maintain and preserve existing parks, and strive to provide additional parks, public spaces, and recreation facilities that meet the community’sevolving needs.
· Policy OSR-1.3: Policy OSR-1.4: Pursue the acquisition and development of pocketPage 7 of 10 912
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· Policy OSR-1.3: Policy OSR-1.4: Pursue the acquisition and development of pocket and neighborhood parks within park-deficient areas, as identified in Figure OSR-3:

Planning Areas and Underserved Park Areas. Prioritize the acquisition of land for parks in underserved neighborhoods.
· Policy OSR-1.8: Require that parks and recreation facilities reflect new trends and population changes, and are developed with facilities appropriate to all ages, including athletic fields, active play areas, passive open space, tot lots, and picnic areas. · Policy OSR-1.18: Provide a minimum of 4.26 acres of parkland per 1,000 residents.

3. Project conformance with General Plan in regard to “extent” The proposed property purchase and creation of a Community Center through an expansion of the park and/or other public serving amenities at this location would convert a private property for public use of approximately 6,500 square feet of additional park space for the community and would essentially double the size of an adjacent established neighborhood park. As indicated above under “purpose”, there are several General Plan policies that recognize the importance of park and recreational space for the community and therefore the addition of park space in an area that is known as deficient of park and recreational space would be consistent with the General Plan in regard to extent.

This land acquisition is in alignment with the City Council’sStrategic Plan objective to identify strategies to increase park access with a focus on the Westside of Costa Mesa. As previously mentioned, Shalimar Park is 6,900 square feet, and an expansion of this park is desirable as the proposed design is limited due to space constraints. The expansion of the park, through the acquisition would provide an opportunity to nearly double Shalimar Park’sfootprint and eventually build a Community Center to further meet community needs.

California Environmental Quality Act (CEQA) Compliance
There is no specific categorical or statutory exemption for the development of a neighborhood public park. However, CEQA Guidelines Section 15301 (Existing Facilities) subsection “l”categorically exempts the review of projects that proposes the “demolitionand removal of small structures listed”, including the demolition of “a duplex or similar multifamily residential structure. In urbanized areas, this exemption applies to duplexes and similar structures where not more than six dwelling units will be demolished”. "Urbanized area" (per CEQA) is defined as a central city or a group of contiguous cities with a population of 50,000 or more, together with adjacent densely populated areas having a population density of at least 1,000 persons per square mile.

In addition, CEQA Guidelines Section 15332, Class 32 exemption pertains to projects characterized as in-fill development meeting the conditions described below:
a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses;

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c) The project site has no value, as habitat for endangered, rare or threatened species; d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and
e) The site can be adequately served by all required utilities and public services.

In summary, the CEQA Guidelines allows an exemption for the purchase and demolition of the existing units pursuant to Section 15301 (up to six dwelling units can be demolished) and the expansion of the pocket park pursuant to Section 15332 (the project complies with sections a-e above in that the development of the park is consistent with the GP and applicable GP policies and Zoning, the park is proposed in an urban area, there is no environmental issues such as high value habitat or endangered species, the park is not anticipated to create abnormal conditions related to traffic, noise, air quality, or water quality, and the site is currently adequately served by utilities and public services).

ALTERNATIVES:

The City Council may choose not to move forward with the acquisition of 778 Shalimar Drive; however, this property is unique as it is adjacent to Shalimar Park and would allow for the immediate expansion of its existing footprint contributing to the health, safety, and well-being of the Shalimar community.

FISCAL REVIEW:

The Fiscal Year 2024-25 budget includes the Westside Park Development Project funded in Park Development Fund 208 totaling $250,000. The additional $1.5 million can be allocated from General Fund Balances (Attachment 5) currently totaling $59.0 million across multiple categories.

Specifically, the General Fund unassigned fund balance category is recommended for this one-time expenditure.

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:
· Maintain and Enhance the City’s Facilities, Equipment and Technology · Strengthen the Public’s Safety and Improve the Quality of Life CONCLUSION:

This land acquisition aligns with the City Council’sStrategic Plan objective of improving the quality of life of Cost Mesa residents, particularly on the Westside of Costa Mesa. As noted earlier, acquiring this land would nearly double Shalimar Park’sfootprint, creating a valuable opportunity to expand community services and amenities. For this reason, Staff recommends that the City Council:

1. Determine the acquisition of the property is exempt from analysis under the California Environmental Quality Act (CEQA).

2. Approve the acquisition of real property located at 778 Shalimar Drive, Costa Mesa, CA 92627

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2. Approve the acquisition of real property located at 778 Shalimar Drive, Costa Mesa, CA 92627 for evaluation of community serving public uses.

3. Authorize the release of all contingency items related to the Real Estate Purchase Agreement, including appraisal and inspections.

4. Authorize a budget appropriation in the amount of $1.5 million from audited General Fund Unassigned Fund Balances for the acquisition of 778 Shalimar Drive, Costa Mesa, CA 92627.

5. Authorize the City Manager and City Clerk to execute any and all real estate purchase documents, disclosures, escrow paperwork and future authorized changes and amendments necessary.

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_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 1 REAL PROPERTY PURCHASE AGREEMENT

AND ESCROW INSTRUCTIONS

THIS REAL PROPERTY PURCHASE AGREEMENT AND ESCROW
INSTRUCTIONS (AGREEMENT) is and entered into by and between the CITY OF COSTA MESA (“CITY”), and DOMINIC BULONE (“OWNER”) with reference to the following:

RECITALS
WHEREAS, OWNER is the owner of that certain real property in the City Costa Mesa, State of California, commonly known as 778 Shalimar Drive and more particularly described as Assessor’s Parcel Number 424-051-23 and all improvements on said Parcel hereinafter collectively referred to as the PROPERTY, shown on Exhibit “A”, attached hereto and incorporated herein by reference; and
WHEREAS, CITY desires to purchase the PROPERTY, which consists of approximately 6,970 square feet including a four-unit residential structure consisting of 3,390 square feet, in fee title for the future needs of the City of Costa Mesa; and WHEREAS, OWNER and CITY agree to enter into this A GREEMENT for the sale of PROPERTY.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the covenants and conditions contained herein, the CITY and OWNER hereto agree as follows:

1. PURCHASE PRICE AND TERMS OF SALE:

Subject to the terms and conditions contained in this AGREEMENT, CITY agrees to purchase from OWNER, and OWNER agrees to sell to CITY, fee ownership of the PROPERTY, subject to the following:
a. The total purchase price for the PROPERTY shall be ONE MILLION SEVEN HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($1,725,000.00)
b. Upon OWNER providing CITY with the executed and dated original of this AGREEMENT, and final approval of this transaction by the Costa Mesa City Council and subsequent execution by CITY, CITY and OWNER shall open escrow in accordance with Section 2 hereof, and shall deliver a copy of this AGREEMENT to the escrow holder. c. As set forth in Section 3 below, CITY shall deposit with escrow holder the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) (DEPOSIT) , applicable to the final sale price upon close of escrow.

Attachment 1
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_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 2 d. Escrow shall be open for a period of one hundred eighty (180) days following the execution of this AGREEMENT by CITY.
e. Should any current tenant or group of tenants occupying a unit at opening of escrow, and having a leasehold interest in the unit, of his/her/their own volition, vacate the PROPERTY during the escrow period without using relocation efforts conducted by City or its consultant as referenced in item h. (ii), below including payment of relocation or moving expenses (Conditions Precedent), CITY will pay OWNER an additional FIVE THOUSAND DOLLARS ($5,000.00), at close of escrow, provided tenant’s unit remains vacated up until the time of close of escrow. f. CITY shall have one hundred eighty (120) days following the Execution Date of this AGREEMENT (“Due Diligence Period”) to approve, or disapprove, in its sole judgment, the condition of the PROPERTY and complete its investigation of the PROPERTY. g. Within thirty (30) days or sooner of the opening of escrow, CITY will deliver to Escrow Holder, the DEPOSIT.
h. Conditions Precedent: In addition to the other terms and conditions contained in this AGREEMENT, CITY’s obligation to purchase the PROPERTY shall be expressly subject to and conditioned upon the fulfillment of each of the following conditions precedent. These conditions are for the sole benefit of CITY and may be waived or deemed satisfied by CITY in CITY's sole and absolute discretion.
i. CITY completing all necessary due diligence and compliance with any and all requirements it determines to be vital in the acquisition of the PROPERTY including the completion of any environmental studies (Phase 1 and 2 as applicable), asbestos and lead studies, and other studies as required. ii. CITY and/or CITY’s relocation consultant completing any necessary due diligence required for compliance with the California Relocation Assistance Act or any other mandated requirements in order to complete a formal relocation plan for any and all tenants of the PROPERTY as applicable.
iii. Completion of the California Environmental Quality Act (CEQA) , if and as applicable for this transaction as determined by CITY in its sole and absolute discretion. The CITY retains the absolute sole discretion to (i) modify the transaction, and create and enter into transactional documents as may be necessary to comply with CEQA, (ii) select other feasible alternatives to avoid significant environmental impacts identified during the CEQA process, (iii) balance the benefits of entering into an agreement against any identifiable significant environmental impacts, and (iv) determine not to proceed with the purchase to avoid significant environmental impacts identified during the CEQA process. No legal obligations will exist unless and until the CEQA environmental review process is completed and this contingency is removed by CITY. iv. Compliance by CITY with the requirements of California Government Code 65402(c), regarding General Plan Consistency.

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_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 3 In the event any of the foregoing conditions are not fulfilled or waived before the Closing Date as defined below, CITY, at its election by written notice to OWNER, may terminate this AGREEMENT and be released from all obligations under this AGREEMENT. Alternatively, CITY may agree with SELLER to extend the date of closing to allow sufficient time to satisfy these conditions.

2. ESCROW AND OTHER FEES:
a. Escrow shall be opened at Freedom Escrow, Newport Beach, with escrow instructions to be based upon the terms and conditions set forth herein, and CITY shall deliver a copy of this AGREEMENT to the escrow holder. On behalf of the CITY, the City Manager of the City of Costa Mesa, or her designee, shall execute the necessary escrow instructions and/or additional documents which may be required to complete the closing of this transaction. This A GREEMENT shall become part of the escrow and shall constitute the b asic instructions and documents as are reasonably required to complete the closing of the transaction contemplated herein in accordance with the terms and conditions of this A GREEMENT. In case of conflict between this AGREEMENT and any of said escrow documents, the terms of this AGREEMENT shall govern. b. Escrow, title and other fees shall be paid as follows:
i. OWNER shall pay all County documentary transfer tax
(“Transfer Tax”), if applicable.

ii. OWNER shall pay for a Standard California Land Title Association owner’s policy of title insurance showing title vested in CITY subject only to the permitted exceptions and the standard printed exceptions and conditions in the policy.

iii. CITY shall pay for any extended or additional title insurance coverage that may be required by the CITY.

iv. CITY and OWNER shall each pay one -half (1/2) of Escrow Holder’s standard escrow fees except as otherwise required by this AGREEMENT.

v. CITY shall pay all escrow fees in the event that this escrow is canceled by CITY after the expiration of the Due Diligence Period.

vi. OWNER shall pay all escrow fees in the event that this escrow is canceled by OWNER.

c. The Closing shall be on May 30, 2025 (the “Closing Date”), or sooner, or such other date if escrow is extended pursuant to the terms herein or as the parties hereto mutually agree in writing. The “Closing” is defined as the satisfaction of all conditions herein stated, except those conditions that have been waived by an express written waiver duly executed by the waiving party; and the recordation of the Deed which shall vest title to the real property interests described in the Deed in BUYER. The "Close of Escrow" is defined as:
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_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 4 i. the recordation of the Deed, which shall vest all real property interests described in the Deed in CITY; and
ii. the payment to OWNER pursuant to Section 1, PURCHASE PRICE AND TERMS OF SALE, hereinabove.

3. DEPOSIT AND REFUND : Within thirty (30) days or sooner, following the execution of this AGREEMENT by CITY, CITY shall deposit with Escrow Holder the Deposit in the amount of ONE HUNDRED THOUSAND DOLLARS ($100,000.00). If this AGREEMENT is terminated by OWNER prior to the expiration of the Due Diligence Period for any reason, the Deposit shall be refunded to CITY. If this AGREEMENT is terminated by CITY after the Due Diligence Period and prior to the Close of Escrow pursuant to the provisions herein, the D eposit shall be paid to OWNER, except in the case of termination of this AGREEMENT resulting from non-satisfaction of any of the Conditions Precedent set forth in Section 1.g. above, in which case, CITY shall be entitled to a full refund of the Deposit.

4. ESCROW HOLDER OBLIGATIONS : Escrow Holder shall be obligated as follows:
a. Provide a current preliminary title report covering the PROPERTY; b. Cause the Grant Deed, Certificate of Acceptance, and any Assignments to be recorded concurrently at the Close of Escrow with title to the PROPERTY vested in the CITY; c. Issue, or have issued to CITY the California Land Title Association Standard Coverage Policy of title insurance required herein;
d. Obtain reconveyance(s) from any holders of liens against the PROPERTY and record said reconveyance(s) in the Orange County Clerk -Recorder’s Office concurrently with the executed Grant Deed and Certificate of Acceptance or promptly upon receipt if such reconveyance(s) are received after the Close of Escrow; e. Provide CITY and OWNER with (i) Conformed Copies of all recorded documents pertaining to this Escrow;
f. Provide CITY and OWNER with a final closing statement with certification by the title company.

5. TITLE AND DEED: Title to the PROPERTY is to be free of all liens, encumbrances, restrictions, conditions, rights to possession or claims to possession, rights, and conditions (recorded and/or unrecorded) known or unknown to OWNER, except:

a. All covenants, conditions, restrictions, and reservations of record approved by CITY.

b. All easements or rights of way for public or quasi-public utility or public street purposes, if any, approved by CITY.

c. All exceptions contained in the preliminary title report as may be approved by CITY.

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_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 5 d. Property taxes for the fiscal year in which this escrow closes shall be satisfied in a manner consistent with California Revenue and Taxation Code Section 4986(a)(6). Escrow Holder is authorized to pay all delinquent taxes, if any, from the amount shown in Section 1 (a), PURCHASE PRICE AND TERMS OF SALE, herein above. OWNER understand that pursuant to Section 4986(a)(6), OWNER may receive after the Close of Escrow, either 1) an unsecured property tax bill from the County of Orange Treasurer-Tax Collector for real property taxes that may be due; or 2) a County of Orange warrant from the County of Orange Auditor-Controller to reimburse OWNER for any prepaid property taxes that may be canceled. e. OWNER shall provide to CITY a Preliminary Title Report covering the PROPERTY. CITY shall have the right to review the Preliminary Title Report and disapprove in writing, those items disclosed in the Preliminary Title Report prior to the Close of Escrow.

OWNER shall have the right within ten (10) days from receipt of notice of disapproval to correct the condition(s) that adversely affect said PROPERTY as determined by CITY in its discretion.

If OWNER does not correct any such condition, CITY may terminate this AGREEMENT and receive a full refund of its Deposit, or pursue other means of perfecting title, at CITY’s sole discretion.
f. OWNER shall have the right, but not the obligation, to request Escrow be extended for thirty (30) days where the OWNER elects to correct any disapproved matter unless correction required more than thirty (30) days in which case Close of Escrow shall be extended to the date of correction.

6. OWNER’S REPRESENTATION AND WARRANTIES: The OWNER represents and warrants that:
a. There is no suit, action, arbitration, legal, administrative, or other proceeding or inquiry pending against the PROPERTY or pending against OWNER, which could affect OWNER’s title to the PROPERTY, or subject OWNER of the PROPERTY to liability. b. There are no attachments, execution proceedings, assignments for the benefit of creditors, insolvency, or bankruptcy, reorganization or other proceedings pending against the OWNER or the PROPERTY restricting the Close of Escrow.
c. OWNER has not actually received any formal, written notice of any pending change in zoning from any governmental or quasi-governmental authority, which change would materially affect the present zoning or present or proposed future use of the PROPERTY. The term “formal written notice” as used in this A GREEMENT shall mean that kind and method of notice which must legally be given to the OWNER of the PROPERTY, but shall not mean notice by publication. d. OWNER will not subject the PROPERTY to any additional liens, encumbrances, covenants, conditions, easements, rights of way or similar matters after the execution of this AGREEMENT that will not be eliminated prior to the Close of Escrow. e. Neither entering into this A GREEMENT nor the performance of any of OWNER’s obligations under this A GREEMENT will violate the terms of any contract, agreement or instrument to which OWNER is a party.
f. OWNER has not actually received any formal written notice of any presently uncured violation of any law, ordinance, rule or regulation (including, but not limited to, those relating to zoning, building, fire, health and safety) of any governmental, quasi -governmental authority bearing on the construction, operation, ownership or use of the PROPERTY. 920
_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 6 g. OWNER shall not enter into any rental or lease agreement before and/or after the execution of this AGREEMENT. In the event OWNER has entered and/or wishes to enter into a rental and/or lease agreement, CITY at its sole option may terminate this A GREEMENT and receive a full refund of its Deposit.

7. OWNER’S OBLIGATIONS: The OWNER shall be obligated as follows:
a. Within one (1) business day prior to the Close of Escrow, OWNER shall deliver to Escrow Holder an executed Grant Deed, conveying fee interest to the PROPERTY. The Grant Deed shall show title vested in the CITY OF COSTA MESA. b. OWNER shall ensure that PROPERTY is free and clear of any and all liens and encumbrances including the removal of financial indebtedness (excepting taxes, which will be prorated to the Close of Escrow), and any Permitted Encumbrances. c. OWNER shall pay, if and whe n due, all payments on any encumbrances or assessments presently affecting the PROPERTY and any and all taxes, assessments, and levies in respect to the PROPERTY prior to the Close of Escrow.
d. OWNER shall not record any covenants, conditions or restrictions against PROPERTY, including without limitation any application for annexation or development of the PROPERTY.
e. OWNER shall be responsible to pay for any and all costs identified as OWNER’s costs as contained in this AGREEMENT. OWNER’s costs associated with this AGREEMENT shall be paid by OWNER at the Close of Escrow from the purchase price as stated in Section 1 above. f. OWNER shall timely deliver to Escrow Holder all documents required to be deposited by OWNER under this AGREEMENT.
g. OWNER shall remove any personal property, inventory or other personal materials and debris from PROPERTY within seven (7) calendar days or sooner before the Escrow Closing Date.

8. COMMISSION: It is understood that CITY has retained a real estate broker that represents CITY in this transaction and that a commission of two (2) percent of the purchase price shall be paid by the OWNER to the broker no later than the escrow Closing Date.

9. GOOD FAITH DISCLOSURE BY OWNER : OWNER shall make a good faith disclosure to CITY of any and all facts, findings, or information on the PROPERTY, known to OWNER after reasonable inquiry, including without limitation those relating to: historical uses; prior permitted uses; current uses including, but not limited to, express or implied contracts, leases and/or permits; geological conditions; biolog ical conditions; archaeological sites; flood hazard area(s); special studies zones; zoning reports; environmentally hazardous material such as dioxins, oils, solvents, waste disposal, gasoline tank leakage, pesticide use and spills, herbicide use or spills or any other substances and/or products of environmental contamination. Any and all facts or information known by OWNER concerning the condition of the PROPERTY shall be delivered to CITY no later than ten (10) days following CITY’s execution of this AGREEMENT. Except for the disclosure requirements of this Section 9 and the representations and warranties prov ided 921
_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 7 elsewhere in this AGREEMENT, CITY is purchasing the PROPERTY “as is” without further representations or warranties of OWNER.

If such facts or information provided by OWNER disclose conditions that adversely affect the continued or contemplated use of the PROPERTY, and that CITY reasonably deems unacceptable, or if CITY otherwise discovers such facts or information through tests and/or surveys which disclose such conditions, and OWNER is unwilling or unable to correct such conditions to the reasonable satisfaction of CITY or any governmental body having jurisdiction, then CITY may, at its sole option, terminate this A GREEMENT and receive a full refund of its Deposit.

10. INSPECTION BY CITY: CITY upon not less than 24-hour notice to the OWNER shall have the right of entry onto the PROPERTY to conduct such non-invasive and non-intrusive inspections and testing thereon as are, in CITY’s sole discretion, necessary to reasonably determine the condition of such areas. The scope of any such testing or inspection which requires physical sampling shall be subject to:
a. The requirement that CITY or its Representative(s) conduct all such inspections and testing, including the disposal of samples taken, in accordance with applicable law and at no cost or liability to OWNER . CITY shall complete such inspections and testing and shall restore all areas of the Subject Property to its pre-test and pre-inspection condition as near as is practicable.

If any toxins or contaminates are discovered, CITY shall notify OWNER immediately and OWNER shall have the right, but not the responsibility to take any actions in response to such notifications that it deems necessary in its sole and absolute discretion. If OWNER elect s not to take actions in response to such notifications, then, notwithstanding other provisions contained herein, OWNER and/or CITY shall have the right at any time prior to the Close of Escrow to terminate this AGREEMENT with no further liability to each other.

11. INDEMNIFICATION: OWNER shall indemnify, defend and hold CITY, and its officers, employees and agents, harmless from and against any and all liability, claims, damages, loss, penalties or judgments arising from or in any way connected with any breach by OWNER of its obligations hereunder, including but not limited to, its duty of disclosure, from any breach of OWNER’s representations and warranties herein contained, and from any damages to persons, property or the environment which occurred at any time prior to the Close of Escrow.

CITY shall indemnify, defend and hold OWNER, and its officers, employees and agents, harmless from and against any and all liability, claims, damages, loss, penalties or judgments arising from or in any way connected with any breach by CITY of its obligations hereunder, including but not limited to, its duty of disclosure, from any breach of CITY’s representations and warranties herein contained, and from any damages to persons, property or the environment which occurs at any time after to the Close of Escrow.

12. ATTORNEYS’ FEES. In the event that a party to this AGREEMENT brings an action against the other party hereto by reason of the breach of any condition, covenant, representation or warranty in this AGREEMENT, or otherwise arising out of this AGREEMENT, the prevailing party in such action shall be entitled to recover from the other party its reasonable attorney’s fees and costs, including expert witness fees. Attorney’s fees shall include attorney’s 922
_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 8 fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery.

13. TIME OF ESSENCE : Time is of the essence in the performance by the parties in respect to this AGREEMENT.

14. NOTICES: All notices, documents, correspondence, and communications concerning this transaction shall be addressed as set forth below or as either party may hereafter designate by written notice and shall be sent through the United States mail duly registered or certified with postage prepaid. Notwithstanding the above, CITY may also provide notices, documents, correspondence or such other communications to OWNER or its Representative by personal delivery or by first class mail postage prepaid and any such notices , documents, correspondence and communications so given shall be deemed to have been given upon actual receipt.

IF TO OWNER: Matthew P. Hoyt
Hoyt Real Estate, Inc.
1625 Ohms Way, Suite A
Costa Mesa, CA 92627
Telephone: (949) 283-1696
Email: [email protected]

IF TO CITY: Carlo Achdjian
Achdjian Real Estate Advisory
Attn: Carlo Achdjian
P.O Box 1992
Los Gatos, CA 95031
Telephone: (805) 319-0333
Email: [email protected]

ESCROW OFFICER: Freedom Escrow-Lisa Osuna
Title No: TBD
Address: 1200 Newport Center Dr., Ste. 180
Newport Beach, CA

15. SUCCESSORS: This AGREEMENT shall bind and inure to the benefit of the respective heirs, personal representatives, executors, successors and assignees of the parties to this AGREEMENT.

16. ASSIGNMENT PROHIBITION: CITY shall not assign its rights or delegate its duties under this AGREEMENT, without the prior written consent of OWNER, which consent may be reasonably withheld. Any sale, assignment, or other transfer in violation of this Section 16 shall be null and void.

17. WAIVERS: No waiver of any breach of any covenant or provision in this AGREEMENT shall be deemed a waiver of any other covenant or provision, and no waiver shall be valid unless in writing and executed by the waiving party. 923
_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 9 18. CONSTRUCTION: Section headings are solely for the convenience of the parties and are not a part and shall not be used to interpret this A GREEMENT. The singular form shall include the plural and vice -versa. This A GREEMENT shall not be construed as if it had been prepared by one of the parties, but rather as if both parties have prepared it. Unless otherwise indicated, all references to sections are to sections of this AGREEMENT.

19. FURTHER ASSURANCES : Whenever requested by the other party, each party shall execute, acknowledge and deliver all further conveyances, agreements, confirmations, satisfactions, releases, powers of attorney, instruments of further assurances, approvals, consents and all further instruments and documents as may be necessary, expedient or proper to complete any conveyances, transfers, sales, and agreements covered by this A GREEMENT, and to do all other acts and to execute, acknowledge, and deliver all requested documents to carry out the intent and purpose of this AGREEMENT.

20. THIRD PARTY RIGHTS : Nothing in this A GREEMENT, express or implied, is intended to confer on any person, other than the parties to this AGREEMENT and their respective successors and assigns, any rights or remedies under or by reason of this AGREEMENT.

21. INTEGRATION: This AGREEMENT contains the entire AGREEMENT between the parties, and expressly supersedes all previous or contemporaneous agreements, understandings, representations, or statements between the parties respecting the purchase of the PROPERTY.

22. COUNTERPARTS: This Agreement may be executed in one or more counterparts, each of which taken together shall constitute one and the same instrument. A copy of this AGREEMENT or an amendment hereto that is executed by a party (including by use of electronic signature software ( e.g., “DocuSign ”) and is transmitted b y that party to the other party electronically or as an attachment to an email shall be binding upon the signatory to the same extent as a copy hereto containing that party’s original signature.

23. SURVIVAL: The indemnification provisions of this A GREEMENT shall survive termination and shall be binding on all successor in interest to the PROPERTY as provided in Section 15 above.

24. AMENDMENT: This AGREEMENT may not be amended or altered except by a written instrument executed by CITY and OWNER.

25. PARTIAL INVALIDITY : Any provision of this A GREEMENT that is unenforceable or invalid or the inclusion of which would adversely affect the validity, legality, or enforceability of this AGREEMENT shall be of no effect, but all the remaining provisions of this AGREEMENT shall remain in full force and effect.

28. AUTHORITY OF PARTIES: All persons executing this AGREEMENT on behalf of any party to this A GREEMENT warrant that they have the authority to execute this AGREEMENT on behalf of that party. OWNER represents and warrants that it is the sole owner of the PROPERTY or is authorized by the OWNER of the PROPERTY to execute this 924
_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 10 AGREEMENT, to consummate the transactions contemplated hereby, and no additional signatures are required.

29. GOVERNING LAW: The validity, meaning, and effect of this AGREEMENT shall be determined in accordance with California laws.

IN WITNESS WHEREOF , CITY and OWNER has executed this Purchase Agreement and Escrow Instructions by the respective authorized officer(s) as set forth below to be effective as of the date executed by CITY.

ATTEST: CITY OF COSTA MESA:
(Name to be inserted on behalf of City)

TITLE By: _________________________________
Lori Ann Farrell Harrison
City Manager

By: ______________________________ Date: ________________________________ Deputy

OWNER:

DOMINIC BULONE
A married man

By: _______________________________

Date: _____________________________

925
_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 11 CONSENT OF ESCROW HOLDER

The undersigned Escrow Holder hereby agrees to:

A. Accept the foregoing Escrow Instructions (AGREEMENT).

B. Act as the Escrow Holder under the AGREEMENT for the fees herein described;

C. Be bound by the AGREEMENT in the performance of its duties as Escrow Holder.

However, the undersigned will have no obligation, liability or responsibility under this consent or otherwise, unless and until the A GREEMENT, fully signed by the parties has been delivered to the undersigned. Further, the undersigned will have no obligation, liability or responsibility under any amendment to the A GREEMENT unless and until the amendment is accepted by the undersigned in writing.

TBD

By: ________________________________

________________________________,
Escrow Officer

Date: _______________________________

926
_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 12 EXHIBIT A

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COSTA

MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL 1:

LOT(S) 5 OF TRACT NO. 3517, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 128 PAGE(S) 39 AND 40 OF

MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPTING THEREFROM AN EASEMENT FOR DRIVEWAY PURPOSES OVER THE EAST 6 FEET THEROF.

PARCEL 2:

AN EASEMENT FOR DRIVEWAY PURPOSES OVER THE WEST 6 FEET OF LOT 6 OF TRACT 3517, AS PER MAP RECORDED IN BOOK 128 PAGE(S) 39 AND 40 OF

MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN: 424-051-23

927
_____________________________________________________________________________________________ APN: 424-051-23 City of Costa Mesa-778 Shalimar Dr. Real Property Purchase Agreement 13 EXHIBIT A

CONTINUED

928
778 Shalimar Drive - Site Plan
Attachment 2
929
Site Photos
Attachment 3
930
Legend
City Limit
Streets
Addresses
Silver
Lot Dimensions
²
0 0.01 0.020.01
mi
The City of Costa Mesa makes no guarantee as to the accuracy of any of the information pro
vided and assumes no liability for any errors, omissions, or inaccuracies.

WGS 1984 Web Mercator Auxiliary Sphere
© City of Costa Mesa
778 SHALIMAR DRIVE - VICINITY MAP
Attachment 4
931
City Of Costa Mesa, California
FISCAL

YEAR ENDED
JUNE 30, 2023
Annual
Comprehensive
Financial
Report
Attachment 5
932

CITY OF COSTA MESA, CALIFORNIA
Notes to the Basic Financial Statements
Year ended June 30, 2023

(9) Long-Term Liabilities (Continued)

The annual debt service requirements for the finance lease as of June 30, 2023 is as follows:

(10) Fund Balances

Fund balance consisted of the following at June 30, 2023:

1. Restricted fund balances in the Public Services category consist of fund balances in the Gas Tax, Air Quality Improvement, Lions Park Capital Improvements, and Measure “M2” Construction funds. Revenues received in these funds are legally restricted for specific purposes, such as transportation and facility related capital projects.

2. The fund balance committed for declared disasters was adopted by Ordinance No. 91-20 and Municipal Code Section 2-206 to provide required funding as a result of a declared emergency by the City Council for an unanticipated but urgent event threatening the public health, safety and welfare of the City. Any fund balance utilized has to be replenished.

Year
Ending
June 30 Principal Interest Total
2024 158,264 $ 28,381 $ 186,645 $
2025 161,586 25,059 186,645
2026 167,516 19,129 186,645
2027 173,664 12,981 186,645
2028 180,038 6,605 186,643
Total 841,068 $ 92,155 $ 933,223 $
Government Gas Tax
American
Rescue Capital Non-Major
General Grants Fund Plan Act Fund Improvements Funds
Nonspendable:

Prepaid items 373,530 $ - $ - $ - $ - $ - $ Inventories 85,157 - - - - - Restricted for:

Pension and OPEB 3,178,229 - - - - - Protection of persons and property - 262,850 - 258,379 - 1,376,549 Community programs - - - - - 9,179,963 Public services (1) - - 17,556,354 - - 6,580,177 Debt service - - - - - 7,278 Committed for:

Declared disasters (2) 14,125,000 - - - - - Self insurance (3) 2,000,000 - - - - - Economic reserves (4) 9,000,000 - - - - - Assigned for:

Compensated absences 6,209,276 - - - - - Police Retirement 1% Supplemental 1,737,346 - - - - - Workers compensation 2,000,000 - - - - - Facilities reserve 2,000,000 - - - - - Strategic plan projects 2,000,000 - - - - - Protection of persons and property - - - - - 642,253 Public services - - - 31,538,022 12,500,167 Unassigned 16,328,416 - - - - 961,694 Total Fund Balance 59,036,954 $ 262,850 $ 17,556,354$ 258,379 $ 31,538,022$ 31,248,081 $ Major Funds
57 933

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-406 Meeting Date: 11/19/2024
TITLE:

ADOPTION OF SALARY AND BENEFIT RESOLUTIONS FOR THE COSTA MESA DIVISION

MANAGERS ASSOCIATION (CMDMA), CONFIDENTIAL MANAGEMENT UNIT AND EXECUTIVE

EMPLOYEES
DEPARTMENT: CITY MANAGER’S OFFICE-HUMAN RESOURCES DIVISION PRESENTED BY: KASAMA LEE, HUMAN RESOURCES MANAGER
CONTACT INFORMATION: KASAMA LEE, HUMAN RESOURCES MANAGER (714) 754-5169
RECOMMENDATION:

Staff recommends the City Council:

1. Approve and Adopt Resolution Number 2024-XX revising the pay ranges and benefits for the Costa Mesa Division Managers Association.

2. Approve and Adopt Resolution Number 2024-XX revising the pay ranges and benefits for the Confidential Management Unit.

3. Approve and Adopt Resolution Number 2024-XX revising the pay ranges and benefits for Executive Employees.

BACKGROUND:

The current agreement between the City and the Costa Mesa Division Manager’s Association (CMDMA) covered years 2020 - 2024 (June 30, 2024). A series of collaborative and productive discussions were held between the City’sdesignated negotiation team and CMDMA’snegotiation team which resulted in the attached resolution (Attachment 1) covering wages and benefits for the period of July 1, 2024 through June 30, 2027. The compensation adjustments recommended for CMDMA are also recommended for the City’sConfidential Managers and Executive employees to provide consistency and avoid compaction.

ANALYSIS:

The City’sNegotiation Team and CMDMA Negotiation Team held several discussions to discuss wage and benefit provisions. During the course of negotiations, the City Negotiation Team met with the City Council to discuss the status and progress of negotiations and to receive direction specific to provisions under consideration. The negotiations were fully collaborative and were based on the shared interests of the CMDMA employees and the City to attract, recruit and retain management level staff throughout the organization. The results of the negotiations have been compiled in the

934
File #: 24-406 Meeting Date: 11/19/2024
attached resolution (Attachment 1).

The following are the key provisions of the negotiated terms for CMDMA:
· Term: Upon City Council adoption, the term of these negotiated provisions will be July 1, 2024 - June 30, 2027
· Salaries and Wages
o Effective July 2024, a 3.75% increase to base salary
o Effective July 2025, an additional 3.75% increase to base salary o Effective July 2026, an additional 3.5% increase to base salary · Market Analysis
o The City agrees to perform a Market Analysis in February 2025 for the following management positions: Energy and Sustainability Manager, Neighborhood Improvement Manager, Public Affairs Manager and Recreation Manager. · Professional Development Reimbursement
o Increase of $300 per person per fiscal year and include activities that support mental and physical health as eligible for reimbursement.

The above provisions (excluding market analysis) will also apply to the non-represented employees in the Confidential Management Unit (Attachment 2) and to non-represented Executive employees (Attachment 3).

The resolution for Executive employees also includes an additional minor adjustment of 1.25%, in addition to the proposed 3.75% (for a total increase of 5%) effective July 1, 2024, for the Deputy Police Chief position and Sworn-Assistant Fire Chief position to address internal compaction and alignment.

The CMDMA and Negotiation Team have agreed to the tentative terms and the CMDMA ratification process was completed. These recommendations are generally consistent with amounts recommended and approved for the City’s other employee associations.

ALTERNATIVES:

The parties to this agreement considered a variety of issues in the context of good faith negotiations in accordance with Government Code Section 3500, et seq. (Meyer-Milias-Brown Act). The CMDMA members have ratified the tentative agreement. This resolution represents the successful conclusion of labor negotiations.

FISCAL REVIEW:

The Fiscal Impact Analysis prepared pursuant to the City Council Policy 300-8 Transparency in Labor Negotiations recognizes the CMDMA and CMU Fiscal Year 2024-2025 increase is estimated at approximately $197,645 which is generally consistent with amounts included in the adopted budget in anticipation of negotiations.

The estimated annual fiscal impact to the City’s future budget is $196,198, and approximately

935
File #: 24-406 Meeting Date: 11/19/2024
The estimated annual fiscal impact to the City’s future budget is $196,198, and approximately $583,828 in an annual cumulative increase by the end of the term of the agreement (June 30, 2027) which will be factored into future year’s budgets.

The Fiscal Impact Analysis prepared pursuant to the City Council Policy 300-8 Transparency in Labor Negotiations recognizes the Executive Employees Fiscal Year 2024-2025 increase is estimated at approximately $142,750 which is generally consistent with amounts included in the adopted budget in anticipation of negotiations. The estimated annual fiscal impact to the City’s future budget is $136,658, and approximately $411,739 in an annual cumulative increase by the end of the term of the agreement (June 30, 2027) which will be factored into future year’s budgets.

LEGAL REVIEW:

The City’s special counsel, Liebert Cassidy Whitmore (LCW) and City Attorney’s Office have reviewed the agreements and resolutions and this report and approved them as to form.

CITY COUNCIL GOALS AND PRIORITIES:

The proposed resolutions support the City’sStrategic Plan Goals to Recruit and Retain High Quality Staff and Strengthen the Public’s Safety and Improve the Quality of Life.

CONCLUSION:

Staff recommends the City Council:

1. Approve and Adopt Resolution Number 2024-XX revising the pay ranges and benefits for the Costa Mesa Division Managers Association.

2. Approve and Adopt Resolution Number 2024-XX revising the pay ranges and benefits for the Confidential Management Unit.

3. Approve and Adopt Resolution Number 2024-XX revising the pay ranges and benefits for Executive Employees.

936
RESOLUTION NO. 2024-XX

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

CALIFORNIA, REVISING THE PAY RANGES AND BENEFITS FOR JOB

CLASSIFICATIONS REPRESENTED BY THE COSTA MESA DIVISION MANAGERS ASSOCIATION.

T
he City Council of the City of Costa Mesa does hereby resolve, determine and order as follows:

W
HEREAS, the City Council previously adopted Resolutions No. 2023-10, 2023- 14, 2023- 38 and 2023- 47 implementing changes agreed upon with the Costa Mesa Division Managers Association; and
W
HEREAS, the City Council desires to repeal and replace Resolutions No. 2023- 10, 2023- 14, 2023- 38 and 2023 -47 to revise the pay ranges and benefits for the classifications specified herein; and
NO
W, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows:

SECTION 1. The following job classifications are hereby revised to reflect the salary ranges and monthly rat es of pay specified, effective the pay period that includes July 1, 2024. The rate of pay for individual classifications may be anywhere within the monthly minimum and maximum salary steps.

Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0143 Assistant Building Official 854 $9,387 $9,856 $10,349 $10,866 $11,409 $11,979 $12,578 Monthly $112,644 $118,272 $124,188 $130,392 $136,908 $143,748 $150,936 Annual $54.16 $56.86 $59.71 $62.69 $65.82 $69.11 $72.57 Hourly 0157 Assistant Development Services 761 $12,497 $13,122 $13,778 $14,467 $15,190 $15,950 $16,747 Monthly Director $149,964 $157,464 $165,336 $173,604 $182,280 $191,400 $200,964 Annual $72.10 $75.70 $79.49 $83.46 $87.63 $92.02 $96.62 Hourly 0142 Building Official 754 $12,191 $12,801 $13,441 $14,113 $14,819 $15,560 $16,338 Monthly $146,292 $153,612 $161,292 $169,356 $177,828 $186,720 $196,056 Annual $70.33 $73.85 $77.54 $81.42 $85.49 $89.77 $94.26 Hourly Attachment 1
937
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0112 City Engineer 751 $13,041 $13,693 $14,378 $15,097 $15,852 $16,645 $17,477 Monthly $156,492 $164,316 $172,536 $181,164 $190,224 $199,740 $209,724 Annual $75.24 $79.00 $82.95 $87.10 $91.45 $96.03 $100.83 Hourly

0161 Community Improvement 895 $9,783 $10,272 $10,786 $11,325 $11,891 $12,486 $13,110 Monthly Manager $117,396 $123,264 $129,432 $135,900 $142,692 $149,832 $157,320 Annual $56.44 $59.26 $62.23 $65.34 $68.60 $72.03 $75.63 Hourly

0115 Deputy Director of Public Works 858 $13,041 $13,693 $14,378 $15,097 $15,852 $16,645 $17,477 Monthly $156,492 $164,316 $172,536 $181,164 $190,224 $199,740 $209,724 Annual $75.24 $79.00 $82.95 $87.10 $91.45 $96.03 $100.83 Hourly

0239 Emergency Services Manager 855 $9,783 $10,272 $10,786 $11,325 $11,891 $12,486 $13,110 Monthly $117,396 $123,264 $129,432 $135,900 $142,692 $149,832 $157,320 Annual $56.44 $59.26 $62.23 $65.34 $68.60 $72.03 $75.63 Hourly

0111 Energy and Sustainability 897 $9,783 $10,272 $10,786 $11,325 $11,891 $12,486 $13,110 Monthly Services Manager $117,396 $123,264 $129,432 $135,900 $142,692 $149,832 $157,320 Annual $56.44 $59.26 $62.23 $65.34 $68.60 $72.03 $75.63 Hourly

0216 Fire Marshal 895 $12,191 $12,801 $13,441 $14,113 $14,819 $15,560 $16,338 Monthly $146,292 $153,612 $161,292 $169,356 $177,828 $186,720 $196,056 Annual $70.33 $73.85 $77.54 $81.42 $85.49 $89.77 $94.26 Hourly

0451 Maintenance Services Manager 733 $11,971 $12,570 $13,198 $13,858 $14,551 $15,279 $16,043 Monthly $143,652 $150,840 $158,376 $166,296 $174,612 $183,348 $192,516 Annual $69.06 $72.52 $76.14 $79.95 $83.95 $88.15 $92.56 Hourly

0160 Neighborhood Improvement 719 $8,787 $9,226 $9,687 $10,171 $10,680 $11,214 $11,775 Monthly Manager $105,444 $110,712 $116,244 $122,052 $128,160 $134,568 $141,300 Annual $50.69 $53.23 $55.89 $58.68 $61.62 $64.70 $67.93 Hourly

0159 Planning and Sustainable 856 $12,191 $12,801 $13,441 $14,113 $14,819 $15,560 $16,338 Monthly Development Manager $146,292 $153,612 $161,292 $169,356 $177,828 $186,720 $196,056 Annual $70.33 $73.85 $77.54 $81.42 $85.49 $89.77 $94.26 Hourly

0097 Police Administrative Services 756 $11,110 $11,665 $12,248 $12,860 $13,503 $14,178 $14,887 Monthly Commander $133,320 $139,980 $146,976 $154,320 $162,036 $170,136 $178,644 Annual $64.10 $67.30 $70.66 $74.19 $77.90 $81.80 $85.89 Hourly

0464 Police Records, 899 $9,783 $10,272 $10,786 $11,325 $11,891 $12,486 $13,110 Monthly Property & Evidence Manager $117,396 $123,264 $129,432 $135,900 $142,692 $149,832 $157,320 Annual $56.44 $59.26 $62.23 $65.34 $68.60 $72.03 $75.63 Hourly

938
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0077 Public Affairs Manager 140 $9,783 $10,272 $10,786 $11,325 $11,891 $12,486 $13,110 Monthly $117,396 $123,264 $129,432 $135,900 $142,692 $149,832 $157,320 Annual $56.44 $59.26 $62.23 $65.34 $68.60 $72.03 $75.63 Hourly

0162 Real Property Manager 730 $8,787 $9,226 $9,687 $10,171 $10,680 $11,214 $11,775 Monthly $105,444 $110,712 $116,244 $122,052 $128,160 $134,568 $141,300 Annual $50.69 $53.23 $55.89 $58.68 $61.62 $64.70 $67.93 Hourly

0305 Recreation Manager 893 $9,550 $10,028 $10,529 $11,055 $11,608 $12,188 $12,797 Monthly $114,600 $120,336 $126,348 $132,660 $139,296 $146,256 $153,564 Annual $55.10 $57.85 $60.74 $63.78 $66.97 $70.32 $73.83 Hourly

0303 Senior Recreation Program 725 $6,965 $7,313 $7,679 $8,063 $8,466 $8,889 $9,333 Monthly Administrator $83,580 $87,756 $92,148 $96,756 $101,592 $106,668 $111,996 Annual $40.18 $42.19 $44.30 $46.52 $48.84 $51.28 $53.84 Hourly

0236 Telecommunications Manager 894 $10,761 $11,299 $11,864 $12,457 $13,080 $13,734 $14,421 Monthly $129,132 $135,588 $142,368 $149,484 $156,960 $164,808 $173,052 Annual $62.08 $65.19 $68.45 $71.87 $75.46 $79.23 $83.20 Hourly

0113 Transportation Services Manager 745 $12,881 $13,525 $14,201 $14,911 $15,657 $16,440 $17,262 Monthly $154,572 $162,300 $170,412 $178,932 $187,884 $197,280 $207,144 Annual $74.31 $78.03 $81.93 $86.03 $90.33 $94.85 $99.59 Hourly

SECTION 2. The following job classifications are hereby revised to reflect the salary ranges and monthly rat es of pay specified, effective the pay period that includes July 1, 2025. The rate of pay for individual classifications may be anywhere within the monthly minimum and maximum salary steps.

Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0143 Assistant Building Official 854 $9,738 $10,225 $10,736 $11,273 $11,837 $12,429 $13,050 Monthly $116,856 $122,700 $128,832 $135,276 $142,044 $149,148 $156,600 Annual $56.18 $58.99 $61.94 $65.04 $68.29 $71.71 $75.29 Hourly

0157 Assistant Development Services 761 $12,966 $13,614 $14,295 $15,010 $15,760 $16,548 $17,375 Monthly Director $155,592 $163,368 $171,540 $180,120 $189,120 $198,576 $208,500 Annual $74.80 $78.54 $82.47 $86.60 $90.92 $95.47 $100.24 Hourly

0142 Building Official 754 $12,650 $13,282 $13,946 $14,643 $15,375 $16,144 $16,951 Monthly $151,800 $159,384 $167,352 $175,716 $184,500 $193,728 $203,412 Annual $72.98 $76.63 $80.46 $84.48 $88.70 $93.14 $97.79 Hourly

939
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0112 City Engineer 751 $13,531 $14,208 $14,918 $15,664 $16,447 $17,269 $18,132 Monthly $162,372 $170,496 $179,016 $187,968 $197,364 $207,228 $217,584 Annual $78.06 $81.97 $86.07 $90.37 $94.89 $99.63 $104.61 Hourly

0161 Community Improvement 895 $10,150 $10,657 $11,190 $11,750 $12,337 $12,954 $13,602 Monthly Manager $121,800 $127,884 $134,280 $141,000 $148,044 $155,448 $163,224 Annual $58.56 $61.48 $64.56 $67.79 $71.18 $74.73 $78.47 Hourly

0115 Deputy Director of Public Works 858 $13,531 $14,208 $14,918 $15,664 $16,447 $17,269 $18,132 Monthly $162,372 $170,496 $179,016 $187,968 $197,364 $207,228 $217,584 Annual $78.06 $81.97 $86.07 $90.37 $94.89 $99.63 $104.61 Hourly

0239 Emergency Services Manager 855 $10,150 $10,657 $11,190 $11,750 $12,337 $12,954 $13,602 Monthly $121,800 $127,884 $134,280 $141,000 $148,044 $155,448 $163,224 Annual $58.56 $61.48 $64.56 $67.79 $71.18 $74.73 $78.47 Hourly

0111 Energy and Sustainability 897 $10,150 $10,657 $11,190 $11,750 $12,337 $12,954 $13,602 Monthly Services Manager $121,800 $127,884 $134,280 $141,000 $148,044 $155,448 $163,224 Annual $58.56 $61.48 $64.56 $67.79 $71.18 $74.73 $78.47 Hourly

0216 Fire Marshal 895 $12,650 $13,282 $13,946 $14,643 $15,375 $16,144 $16,951 Monthly $151,800 $159,384 $167,352 $175,716 $184,500 $193,728 $203,412 Annual $72.98 $76.63 $80.46 $84.48 $88.70 $93.14 $97.79 Hourly

0451 Maintenance Services Manager 733 $12,420 $13,041 $13,693 $14,378 $15,097 $15,852 $16,645 Monthly $149,040 $156,492 $164,316 $172,536 $181,164 $190,224 $199,740 Annual $71.65 $75.24 $79.00 $82.95 $87.10 $91.45 $96.03 Hourly

0160 Neighborhood Improvement 719 $9,115 $9,571 $10,050 $10,553 $11,081 $11,635 $12,217 Monthly Manager $109,380 $114,852 $120,600 $126,636 $132,972 $139,620 $146,604 Annual $52.59 $55.22 $57.98 $60.88 $63.93 $67.13 $70.48 Hourly

0159 Planning and Sustainable 856 $12,650 $13,282 $13,946 $14,643 $15,375 $16,144 $16,951 Monthly Development Manager $151,800 $159,384 $167,352 $175,716 $184,500 $193,728 $203,412 Annual $72.98 $76.63 $80.46 $84.48 $88.70 $93.14 $97.79 Hourly

0097 Police Administrative Services 756 $11,527 $12,103 $12,708 $13,343 $14,010 $14,710 $15,445 Monthly Commander $138,324 $145,236 $152,496 $160,116 $168,120 $176,520 $185,340 Annual $66.50 $69.83 $73.32 $76.98 $80.83 $84.87 $89.11 Hourly

0464 Police Records, 899 $10,150 $10,657 $11,190 $11,750 $12,337 $12,954 $13,602 Monthly Property & Evidence Manager $121,800 $127,884 $134,280 $141,000 $148,044 $155,448 $163,224 Annual $58.56 $61.48 $64.56 $67.79 $71.18 $74.73 $78.47 Hourly

940
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0077 Public Affairs Manager 140 $10,150 $10,657 $11,190 $11,750 $12,337 $12,954 $13,602 Monthly $121,800 $127,884 $134,280 $141,000 $148,044 $155,448 $163,224 Annual $58.56 $61.48 $64.56 $67.79 $71.18 $74.73 $78.47 Hourly

0162 Real Property Manager 730 $9,115 $9,571 $10,050 $10,553 $11,081 $11,635 $12,217 Monthly $109,380 $114,852 $120,600 $126,636 $132,972 $139,620 $146,604 Annual $52.59 $55.22 $57.98 $60.88 $63.93 $67.13 $70.48 Hourly

0305 Recreation Manager 893 $9,909 $10,404 $10,924 $11,470 $12,043 $12,645 $13,277 Monthly $118,908 $124,848 $131,088 $137,640 $144,516 $151,740 $159,324 Annual $57.17 $60.02 $63.02 $66.17 $69.48 $72.95 $76.60 Hourly

0303 Senior Recreation Program 725 $7,227 $7,588 $7,967 $8,365 $8,783 $9,222 $9,683 Monthly Administrator $86,724 $91,056 $95,604 $100,380 $105,396 $110,664 $116,196 Annual $41.69 $43.78 $45.96 $48.26 $50.67 $53.20 $55.86 Hourly

0236 Telecommunications Manager 894 $11,166 $11,724 $12,310 $12,925 $13,571 $14,250 $14,962 Monthly $133,992 $140,688 $147,720 $155,100 $162,852 $171,000 $179,544 Annual $64.42 $67.64 $71.02 $74.57 $78.29 $82.21 $86.32 Hourly

0113 Transportation Services Manager 745 $13,363 $14,031 $14,733 $15,470 $16,244 $17,056 $17,909 Monthly $160,356 $168,372 $176,796 $185,640 $194,928 $204,672 $214,908 Annual $77.09 $80.95 $85.00 $89.25 $93.72 $98.40 $103.32 Hourly

SECTION 3. The following job classifications are hereby revised to reflect the salary ranges and monthly rat es of pay specified, effective the pay period that includes July 1, 2026. The rate of pay for individual classifications may be anywhere within the monthly minimum and maximum salary steps.

Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0143 Assistant Building Official 854 $10,079 $10,583 $11,112 $11,668 $12,251 $12,864 $13,507 Monthly $120,948 $126,996 $133,344 $140,016 $147,012 $154,368 $162,084 Annual $58.15 $61.06 $64.11 $67.32 $70.68 $74.22 $77.93 Hourly

0157 Assistant Development Services 761 $13,419 $14,090 $14,794 $15,534 $16,311 $17,127 $17,983 Monthly Director $161,028 $169,080 $177,528 $186,408 $195,732 $205,524 $215,796 Annual $77.42 $81.29 $85.35 $89.62 $94.10 $98.81 $103.75 Hourly

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Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0142 Building Official 754 $13,091 $13,746 $14,433 $15,155 $15,913 $16,709 $17,544 Monthly $157,092 $164,952 $173,196 $181,860 $190,956 $200,508 $210,528 Annual $75.53 $79.30 $83.27 $87.43 $91.81 $96.40 $101.22 Hourly

0112 City Engineer 751 $14,004 $14,704 $15,439 $16,211 $17,022 $17,873 $18,767 Monthly $168,048 $176,448 $185,268 $194,532 $204,264 $214,476 $225,204 Annual $80.79 $84.83 $89.07 $93.53 $98.20 $103.11 $108.27 Hourly

0161 Community Improvement 895 $10,506 $11,031 $11,583 $12,162 $12,770 $13,408 $14,078 Monthly Manager $126,072 $132,372 $138,996 $145,944 $153,240 $160,896 $168,936 Annual $60.61 $63.64 $66.83 $70.17 $73.67 $77.35 $81.22 Hourly

0115 Deputy Director of Public Works 858 $14,004 $14,704 $15,439 $16,211 $17,022 $17,873 $18,767 Monthly $168,048 $176,448 $185,268 $194,532 $204,264 $214,476 $225,204 Annual $80.79 $84.83 $89.07 $93.53 $98.20 $103.11 $108.27 Hourly

0239 Emergency Services Manager 855 $10,506 $11,031 $11,583 $12,162 $12,770 $13,408 $14,078 Monthly $126,072 $132,372 $138,996 $145,944 $153,240 $160,896 $168,936 Annual $60.61 $63.64 $66.83 $70.17 $73.67 $77.35 $81.22 Hourly

0111 Energy and Sustainability 897 $10,506 $11,031 $11,583 $12,162 $12,770 $13,408 $14,078 Monthly Services Manager $126,072 $132,372 $138,996 $145,944 $153,240 $160,896 $168,936 Annual $60.61 $63.64 $66.83 $70.17 $73.67 $77.35 $81.22 Hourly

0216 Fire Marshal 895 $13,091 $13,746 $14,433 $15,155 $15,913 $16,709 $17,544 Monthly $157,092 $164,952 $173,196 $181,860 $190,956 $200,508 $210,528 Annual $75.53 $79.30 $83.27 $87.43 $91.81 $96.40 $101.22 Hourly

0451 Maintenance Services Manager 733 $12,856 $13,499 $14,174 $14,883 $15,627 $16,408 $17,228 Monthly $154,272 $161,988 $170,088 $178,596 $187,524 $196,896 $206,736 Annual $74.17 $77.88 $81.77 $85.86 $90.16 $94.66 $99.39 Hourly

0160 Neighborhood Improvement 719 $9,437 $9,909 $10,404 $10,924 $11,470 $12,043 $12,645 Monthly Manager $113,244 $118,908 $124,848 $131,088 $137,640 $144,516 $151,740 Annual $54.44 $57.17 $60.02 $63.02 $66.17 $69.48 $72.95 Hourly

0159 Planning and Sustainable 856 $13,091 $13,746 $14,433 $15,155 $15,913 $16,709 $17,544 Monthly Development Manager $157,092 $164,952 $173,196 $181,860 $190,956 $200,508 $210,528 Annual $75.53 $79.30 $83.27 $87.43 $91.81 $96.40 $101.22 Hourly

0097 Police Administrative Services 756 $11,930 $12,526 $13,152 $13,810 $14,500 $15,225 $15,986 Monthly Commander $143,160 $150,312 $157,824 $165,720 $174,000 $182,700 $191,832 Annual $68.83 $72.27 $75.88 $79.67 $83.65 $87.84 $92.23 Hourly

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Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0464 Police Records, 899 $10,506 $11,031 $11,583 $12,162 $12,770 $13,408 $14,078 Monthly Property & Evidence Manager $126,072 $132,372 $138,996 $145,944 $153,240 $160,896 $168,936 Annual $60.61 $63.64 $66.83 $70.17 $73.67 $77.35 $81.22 Hourly

0077 Public Affairs Manager 140 $10,506 $11,031 $11,583 $12,162 $12,770 $13,408 $14,078 Monthly $126,072 $132,372 $138,996 $145,944 $153,240 $160,896 $168,936 Annual $60.61 $63.64 $66.83 $70.17 $73.67 $77.35 $81.22 Hourly

0162 Real Property Manager 730 $9,437 $9,909 $10,404 $10,924 $11,470 $12,043 $12,645 Monthly $113,244 $118,908 $124,848 $131,088 $137,640 $144,516 $151,740 Annual $54.44 $57.17 $60.02 $63.02 $66.17 $69.48 $72.95 Hourly

0305 Recreation Manager 893 $10,255 $10,768 $11,306 $11,871 $12,465 $13,088 $13,742 Monthly $123,060 $129,216 $135,672 $142,452 $149,580 $157,056 $164,904 Annual $59.16 $62.12 $65.23 $68.49 $71.91 $75.51 $79.28 Hourly

0303 Senior Recreation Program 725 $7,478 $7,852 $8,245 $8,657 $9,090 $9,545 $10,022 Monthly Administrator $89,736 $94,224 $98,940 $103,884 $109,080 $114,540 $120,264 Annual $43.14 $45.30 $47.57 $49.94 $52.44 $55.07 $57.82 Hourly

0236 Telecommunications Manager 894 $11,556 $12,134 $12,741 $13,378 $14,047 $14,749 $15,486 Monthly $138,672 $145,608 $152,892 $160,536 $168,564 $176,988 $185,832 Annual $66.67 $70.00 $73.51 $77.18 $81.04 $85.09 $89.34 Hourly

0113 Transportation Services Manager 745 $13,831 $14,523 $15,249 $16,011 $16,812 $17,653 $18,536 Monthly $165,972 $174,276 $182,988 $192,132 $201,744 $211,836 $222,432 Annual $79.79 $83.79 $87.98 $92.37 $96.99 $101.84 $106.94 Hourly

SECTION 4. A market analysis study will be conducted in February 2025 for the following classifications: E mergency and Sustainability Manager, Neighborhood Improvement Manager, Public Affairs Manager and Recreation Manager,

SECTION 5. The City of Costa Mesa has contracted with the California Public Employees Retirement System (CalPERS) to provide retirement benefits to eligible City employees.

5.1 CalPERS - MISCELLANEOUS MEMBERS
Employees covered by this resolution who do not meet the definition of “new member” under the California Public Employees’ Pension Reform Act of 2013 (PEPRA) (those unit members shall be referred to as “classic members”) are 943
enrolled in either the CalPERS retirement plan provided for by Government Code § 21354.4, and commonly referred to as the 2.5% at age 55 retirement plan (“tier 1”), or the 2% at 60 formula provided for by Government Code § 21353 (“tier 2”).

A. Classic Members:

Effective April 16, 2017, the total contribution for tier 1 (2.5% @ 55) unit members will be 12 % of compensation earnable, inclusive of statutory employee contributions and all cost sharing. The total contribution for tier 2 (2% @ 60) unit members will be 10% of compensation earnable, inclusive of statutory employee contributions and all cost sharing.

Effective the pay period that includes July 1, 2023, classic member employees subject to the 2.5% @ 55 formula shall have their cost sharing per Government Code section 20516(a) reduced by 1.469% for a net contribution of one percent (1%) and cost sharing pursuant to 20516(f) will be reduced from 1.531% to 0%.

Effective the pay period that includes July 1, 2023, classic member employees subject to the 2% @ 60 formula shall have their cost sharing per Government Code section 20516(f) reduced by 1% for a net contribution of two percent (2%).

B. New Members: Under PEPRA (see section 5.2 below):

Effective April 16, 2017, the total contribution for PEPRA tier 3 (2% @ 62) unit members will be 9% of pensionable compensation, inclusive of statutory employee contributions and cost sharing.

5.2 THE CALIFORNIA PUBLIC EMPLOYEES’ PENSION REFORM ACT OF 2013 (PEPRA)
As it may from time to time exist, the PEPRA shall in its entirety be given full force and effect. PEPRA includes, but is not limited to, the provisions described below:
944
Members hired on and after January 1, 2013, deemed to be a “new member” as defined in Government Code § 7522.04, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said “ new member” is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater.

Members who are “new members” on and after January 1, 2013, shall be enrolled in the PEPRA provided for 2% @ 62 retirement formula for miscellaneous employees (Govt. Code § 7522.20).

Members who are “new members” on and after January 1, 2013, shall have “final compensation” measured by the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months (Section 7522.32.), and their retirement benefits shall be calculated based on “pensionable compensation” (Section 7522.10) rather than “compensation earnable” (Section 20636).

SECTION 6. Employees covered by this resolution shall be provided with a $75 monthly technology allowance. The City Manager has the sole discretion to grant, modify or deny an allowance for employees covered by this resolution.

SECTION 7. The City shall contribute an amount toward the flexible benefit plan bucket for the payment of premiums for affected employees and dependents based upon the following criteria:

• Full family coverage for the PERS Platinum medical plan under the California Public Employees’ Retirement System (CALPERS) health insurance programs • Full family coverage for the Dental Indemnity plan
• Full premium payment for Life Insurance
• Long Term Disability premium will be based upon the top step salary of the highest-salaried Division Manager within the classified service

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Any amounts necessary to maintain benefit premiums in excess of the City contribution specified above shall be borne entirely by the executive employee.

SECTION 8. Effective October 15, 2017, employees covered by this resolution shall accrue vacation leave at the following rates and shall be capped at the following maximum levels:

Years of Service Annual Accrual 40-Hour Maximum Accrual 40-Hour 1-2 92 184
3-4 116 232
5-9 140 280
10-14 164 320
15-19 188 320
20+ 212 320

Vacation Leave Cash-Outs – Each fiscal year, employees will have the following cash-out options: 1) One eighty (80) hour cash- out any time during the fiscal year, regardless of the employee’s maximum accrual and regardless of the employee’s Vacation Leave usage; and, 2) Up to four cash -outs per fiscal year, any time during the fiscal year (irrespective of quarter), based on a “2 for 1” usage ratio, up to a maximum of 80-hours for each cash out. For example, if an employee uses 10 hours of Vacation Leave, the employee could cash out up to 20 hours of Vacation Leave; in order for an employee to cash- out the maximum of 80- hours Vacation Leave, the employee would need to use 40 hours of Vacation Leave.

All employees who are at the Maximum Accrual Level or who may reach the Maximum Accrual Level shall utilize the “Cash- Out” and/or “Vacation Leave” options so as to NOT exceed the Vacation Accrual Ceiling. Other than exceptions granted based upon City and/or Departmental needs as approved by both the Department Director and the City Manager there will no other cash -out of Vacation Leave time beyond the Maximum Accrual rates that have been established.

946
SECTION 9. Effective December 24, 2017, the City shall grant Executive Leave to management personnel not to exceed forty (40) hours per year. The City Manager may grant an additional sixty (60) hours of Executive Leave.

SECTION 10. Pursuant to the Executive Professional Development Reimbursement Program, the City agrees to reimburse Division Managers up to $1,300 per fiscal year for activities, materials, equipment or fees that will aid in their individual professional development or support employee wellness, mental and physical health. The intent of this program is to encourage and recognize executive staff for pursuing educational, professional or community -oriented activities, enhancing job skills and expertise, and/or purchasing materials/equipment, which improve the executive’s performance and well-being. These activities, materials, equipment or fees are int ended to be beyond what is budgeted for individuals through the annual budget cycle. The reimbursement options available include the following:

• Professional memberships, licenses and certificates that are job-related • Professional conferences that are job -related including fees and other expenses while attending
• Membership dues in community organizations relevant to the executive’s job assignment
• Purchase of job- related professional journals, periodicals, books or other written materials which further knowledge or improvement of effecti veness in performance of duties
• Education fees that exceed the City’s annual $1,250 tuition reimbursement limit • Activities, materials, equipment or fees that promote employee wellness, mental and physical health
• Direct purchase of qualifying computer equipment defined in Administrative Regulation 2.29

The Department Director and Assistant City Manager must approve participation in the activities and/or purchase of the materials/equipment in advance. Claims for reimbursement must be accompanied by documentation that an eligible expense has 947
been incurred during the fiscal year for the executive employee only. Employee may not request reimbursement for any activities, materials, equipment or fees that have already been reimbursed through a Flexible Spending Account, Health Savings Account or similar program. Any portion of the reimbursement amount not incurred within the fiscal year shall remain City funds unless prior approval has been received by the City Manager.

Requests to carry forward unencumbered amounts to the next fiscal year must receive approval by the City Manager prior to the end of the fiscal year. All payments will be in the form of reimbursement and no executive employee will directly receive cash for this benefit. Reimbursements, which are subject to taxation, will be processed through the payroll system. The Finance Department shall administer this program in accordance with the stated purpose and will provide the appropriate forms and procedures. This reimbursement program does not prohibit individual departments from continuing to budget funds for executive staff attendance at professional conferences and seminars, for the payment of professional membership dues, and/or for the purchase of books, journals and written materials that are job -related and will enhance an executive’s knowledge or expertise.

SECTION 11. The 401(a) deferred compensation plan provides executives with another tax-deferred savings plan for future financial planning. The City will provide a

0.5% per pay period employer contribution for any executive whose management group elects to participate in the 401(a) plan. The employer contribution will be reflected in that executive’s annual total compensation calculation. However, the City will not provide an employer contribution to the current 457 deferred compensation plan and the exec utive must make all 457 contributions.

SECTION 12. All parts of resolutions in conflict herewith are hereby rescinded.

948
PASSED AND ADOPTED this 19th day of November, 2024.

______________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

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

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 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 19
th day of November, 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 20
th day of November, 2024.

__________________________
Brenda Green, City Clerk

(SEAL)

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RESOLUTION NO. 2024-XX
A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,

CALIFORNIA, REVISING THE PAY RANGE S AND BENEFITS FOR

CLASSIFICATIONS IN THE CONFIDENTIAL MANAGEMENT UNIT
T

HE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA HEREBY FINDS, DETERMINES, AND DECLARES AS FOLLOWS:

W
HEREAS, the City Council previously adopted Resolution No. 2023-12, revising the pay ranges and benefits for job classifications in the Confidential Management Unit; and
W
HEREAS, the City Council desires to repeal and replace Resolution No. 202 3- 12 to revise the pay ranges and benefits for the classifications specified herein; and NO
W, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows:

SECTION 1. Employer-Employee Organization Relations Resolution No. 95- 63, as authorized under the California Government Code (Section 3500, et seq.), defines “Employee, Confidential” as any employee whose normal duties would give the employee access to decisions or the decision-making processes of the City concerning any matters relating to employer -employee relations; and said Resolution sets forth the “Policy and Standards for Determination of Appropriate Units”, including the provision that confidential responsibilities are determining factors in establishing appropriate units. Accordingly, specific positions have been determined by the City Manager (Employee Relations Officer) as having access to or preparing confidential materials and/or information and/or recommendations on behalf of the City in matters relating to employer-employee relations and are included in this Confidential Management Unit.

SECTION 2. The following positions in the Office of the City Manager, Finance Department and Information Technology Department, placed under the Confidential Management Unit Salary Schedule, are hereby revised to reflect the salary ranges and monthly rates of pay specified, effective the pay period that includes J uly 1, 2024. The Attachment 2
950

monthly rate of pay may also be in increments between the monthly minimum and maximum pay step.

Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0068 Assistant Finance Director 750 $13,007 $13,657 $14,340 $15,057 $15,810 $16,601 $17,431 Monthly $156,084 $163,884 $172,080 $180,684 $189,720 $199,212 $209,172 Annual $75.04 $78.79 $82.73 $86.87 $91.21 $95.78 $100.56 Hourly

0092 Assistant to the City Manager 896 $9,783 $10,272 $10,786 $11,325 $11,891 $12,486 $13,110 Monthly $117,396 $123,264 $129,432 $135,900 $142,692 $149,832 $157,320 Annual $56.44 $59.26 $62.23 $65.34 $68.60 $72.03 $75.63 Hourly

0059 Budget and Purchasing Manager 740 $10,640 $11,172 $11,731 $12,318 $12,934 $13,581 $14,260 Monthly $127,680 $134,064 $140,772 $147,816 $155,208 $162,972 $171,120 Annual $61.38 $64.45 $67.68 $71.07 $74.62 $78.35 $82.27 Hourly

0023 City Clerk 892 $11,395 $11,965 $12,563 $13,191 $13,851 $14,544 $15,271 Monthly $136,740 $143,580 $150,756 $158,292 $166,212 $174,528 $183,252 Annual $65.74 $69.03 $72.48 $76.10 $79.91 $83.91 $88.10 Hourly

0171 Finance Manager 727 $11,395 $11,965 $12,563 $13,191 $13,851 $14,544 $15,271 Monthly $136,740 $143,580 $150,756 $158,292 $166,212 $174,528 $183,252 Annual $65.74 $69.03 $72.48 $76.10 $79.91 $83.91 $88.10 Hourly

0090 Human Resources Manager 748 $11,767 $12,355 $12,973 $13,622 $14,303 $15,018 $15,769 Monthly $141,204 $148,260 $155,676 $163,464 $171,636 $180,216 $189,228 Annual $67.89 $71.28 $74.84 $78.59 $82.52 $86.64 $90.98 Hourly

0047
Information Technology
Manager 741 $12,368 $12,986 $13,635 $14,317 $15,033 $15,785 $16,574 Monthly $148,416 $155,832 $163,620 $171,804 $180,396 $189,420 $198,888 Annual $71.35 $74.92 $78.66 $82.60 $86.73 $91.07 $95.62 Hourly

SECTION 3. The following positions of the Office of the City Manager, Finance Department and Information Technology Department, placed under the Confidential Management Unit Salary Schedule, are hereby revised to reflect the salary ranges and monthly rates of pay specified, effective the pay period that includes July 1, 202 5. The monthly rate of pay may also be in increments between the monthly minimum and maximum pay step.

951

Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0068 Assistant Finance Director 750 $13,495 $14,170 $14,879 $15,623 $16,404 $17,224 $18,085 Monthly $161,940 $170,040 $178,548 $187,476 $196,848 $206,688 $217,020 Annual $77.86 $81.75 $85.84 $90.13 $94.64 $99.37 $104.34 Hourly

0092 Assistant to the City Manager 896 $10,150 $10,657 $11,190 $11,750 $12,337 $12,954 $13,602 Monthly $121,800 $127,884 $134,280 $141,000 $148,044 $155,448 $163,224 Annual $58.56 $61.48 $64.56 $67.79 $71.18 $74.73 $78.47 Hourly

0059 Budget and Purchasing Manager 740 $11,039 $11,591 $12,171 $12,780 $13,419 $14,090 $14,795 Monthly $132,468 $139,092 $146,052 $153,360 $161,028 $169,080 $177,540 Annual $63.69 $66.87 $70.22 $73.73 $77.42 $81.29 $85.36 Hourly

0023 City Clerk 892 $11,823 $12,414 $13,035 $13,687 $14,371 $15,090 $15,844 Monthly $141,876 $148,968 $156,420 $164,244 $172,452 $181,080 $190,128 Annual $68.21 $71.62 $75.20 $78.96 $82.91 $87.06 $91.41 Hourly

0171 Finance Manager 727 $11,823 $12,414 $13,035 $13,687 $14,371 $15,090 $15,844 Monthly $141,876 $148,968 $156,420 $164,244 $172,452 $181,080 $190,128 Annual $68.21 $71.62 $75.20 $78.96 $82.91 $87.06 $91.41 Hourly

0090 Human Resources Manager 748 $12,208 $12,818 $13,459 $14,132 $14,839 $15,581 $16,360 Monthly $146,496 $153,816 $161,508 $169,584 $178,068 $186,972 $196,320 Annual $70.43 $73.95 $77.65 $81.53 $85.61 $89.89 $94.38 Hourly

0047 Information Technology Manager 741 $12,831 $13,473 $14,147 $14,854 $15,597 $16,377 $17,196 Monthly $153,972 $161,676 $169,764 $178,248 $187,164 $196,524 $206,352 Annual $74.03 $77.73 $81.62 $85.70 $89.98 $94.48 $99.21 Hourly

SECTION 4. The following positions of the Office of the City Manager, Finance Department and Information Technology Department, placed under the Confidential Management Unit Salary Schedule, are hereby revised to reflect the salary ranges and monthly rates of pay specified, effective the pay period that includes July 1, 202 6. The monthly rate of pay may also be in increments between the monthly minimum and maximum pay step.

Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0068 Assistant Finance Director 750 $13,969 $14,667 $15,400 $16,170 $16,978 $17,827 $18,718 Monthly $167,628 $176,004 $184,800 $194,040 $203,736 $213,924 $224,616 Annual $80.59 $84.62 $88.85 $93.29 $97.95 $102.85 $107.99 Hourly

952

Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0092 Assistant to the City Manager 896 $10,506 $11,031 $11,583 $12,162 $12,770 $13,408 $14,078 Monthly $126,072 $132,372 $138,996 $145,944 $153,240 $160,896 $168,936 Annual $60.61 $63.64 $66.83 $70.17 $73.67 $77.35 $81.22 Hourly

0059 Budget and Purchasing Manager 740 $11,428 $11,999 $12,599 $13,229 $13,890 $14,584 $15,313 Monthly $137,136 $143,988 $151,188 $158,748 $166,680 $175,008 $183,756 Annual $65.93 $69.23 $72.69 $76.32 $80.13 $84.14 $88.34 Hourly

0023 City Clerk 892 $12,237 $12,849 $13,491 $14,166 $14,874 $15,618 $16,399 Monthly $146,844 $154,188 $161,892 $169,992 $178,488 $187,416 $196,788 Annual $70.60 $74.13 $77.83 $81.73 $85.81 $90.10 $94.61 Hourly

0171 Finance Manager 727 $12,237 $12,849 $13,491 $14,166 $14,874 $15,618 $16,399 Monthly $146,844 $154,188 $161,892 $169,992 $178,488 $187,416 $196,788 Annual $70.60 $74.13 $77.83 $81.73 $85.81 $90.10 $94.61 Hourly

0090 Human Resources Manager 748 $12,636 $13,268 $13,931 $14,628 $15,359 $16,127 $16,933 Monthly $151,632 $159,216 $167,172 $175,536 $184,308 $193,524 $203,196 Annual $72.90 $76.55 $80.37 $84.39 $88.61 $93.04 $97.69 Hourly

0047 Information Technology Manager 741 $13,281 $13,945 $14,642 $15,374 $16,143 $16,950 $17,798 Monthly $159,372 $167,340 $175,704 $184,488 $193,716 $203,400 $213,576 Annual $76.62 $80.45 $84.47 $88.70 $93.13 $97.79 $102.68 Hourly

SECTION 5. The City of Costa Mesa has contracted with the California Public Employees Retirement System (CalPERS) to provide retirement benefits to eligible City employees.

5.1 CalPERS - Miscellaneous Members
Employees covered by this resolution who do not meet the definition of “new member” under the California Public Employees’ Pension Reform Act of 2013 (PEPRA) (those unit members shall be referred to as “classic members”) are enrolled in either the CalPERS retirement plan provided for by Government C ode § 21354.4, and commonly referred to as the 2.5% at age 55 retirement plan (“tier 1”), or the 2% at 60 formula provided for by Government Code § 21353 (“tier 2”).

953

A. Classic Members:

Effective April 16, 2017, the total contribution for tier 1 (2.5% @ 55) unit members will be 12% of compensation earnable, inclusive of statutory employee contributions and all cost sharing. The total contribution for tier 2 (2% @ 60) unit members will be 10% of compensation earnable, inclusive of statutory employee contributions and all cost sharing.

Effective the pay period that includes July 1, 2023, classic member employees subject to the 2.5% @ 55 formula shall have their cost sharing per Government Code section 20516(a) reduced by 1.469% for a net contribution of one percent (1%) and cost sharing pursuant to 20516(f) will be reduced from 1.531% to 0%.

Effective the pay period that includes July 1, 2023, classic member employees subject to the 2% @ 60 formula shall have their cost sharing per Government Code section 20516(f) reduced by 1% for a net contribution of two percent (2%).

B. New Members: Under PEPRA (see section 5.2 below):

Effective April 16, 2017, the total contribution for PEPRA tier 3 (2% @ 62) unit members will be 9% of pensionable compensation, inclusive of statutory employee contributions and cost sharing.

5.2 THE CALIFORNIA PUBLIC EMPLOYEES’ PENSION REFORM ACT OF 2013 (PEPRA)
As it may from time to time exist, the PEPRA shall in its entirety be given full force and effect. PEPRA includes, but is not limited to, the provisions described below:

Members hired on and after January 1, 2013, deemed to be a “new member” as defined in Government Code § 7522.04, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said “new member” is enrolled, rounded to the nearest 954

quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater.

Members who are “new members” on and after January 1, 2013, shall be enrolled in the PEPRA provided for 2% @ 62 retirement formula for miscellaneous employees (Govt. Code § 7522.20).

Members who are “new members” on and after January 1, 2013, shall have “final compensation” measured by the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months (Section 7522.32.), and their retirement benefits shall be calculated based on “pensionable compensation” (Section 7522.10) rather than “compensation earnable” (Section 20636).

SECTION 6. Employees covered by this resolution shall be provided with a $75 monthly technology allowance. The City Manager has the sole discretion to grant, modify or deny an allowance for employees covered by this resolution.

SECTION 7. The City shall contribute an amount toward the flexible benefit plan bucket for the payment of premiums for affected employees and dependents based upon the following criteria:
• Full family coverage for the PERS Platinum medical plan under the California Public Employees’ Retirement System (CALPERS) health insurance programs • Full family coverage for the Dental Indemnity plan
• Full premium payment for Life Insurance
• Long Term Disability premium will be based upon the top step salary of the highest-salaried Division Manager within the classified service

Any amounts necessary to maintain benefit premiums in excess of the City contribution specified above shall be borne entirely by the confidential management employee.

955

SECTION 8. Effective October 15, 2017, employees covered by this resolution shall accrue vacation leave at the following rates and shall be capped at the following maximum levels:

Years of Service Annual Accrual 40-Hour Maximum Accrual 40-Hour 1-2 92 184
3-4 116 232
5-9 140 280
10-14 164 320
15-19 188 320
20+ 212 320

Vacation Leave Cash-Outs – Each fiscal year, employees will have the following cash-out options: 1) One eighty (80) hour cash- out any time during the fiscal year, regardless of the employee’s maximum accrual and regardless of the employee’s Vacation Leave usage; and, 2) Up to fo ur cash-outs per fiscal year, any time during the fiscal year (irrespective of quarter), based on a “2 for 1” usage ratio, up to a maximum of 80-hours for each cash out. For example, if an employee uses 10 hours of Vacation Leave, the employee could cash out up to 20 hours of Vacation Leave; in order for an employee to cash- out the maximum of 80- hours Vacation Leave, the employee would need to use 40 hours of Vacation Leave.

All employees who are at the Maximum Accrual Level or who may reach the Maximum Accrual Level shall utilize the “Cash- Out” and/or “Vacation Leave” options so as to NOT exceed the Vacation Accrual Ceiling. Other than exceptions granted based upon City and/or Departmental needs as approved by both the Department Director and the City Manager there will no other cash -out of Vacation Leave time beyond the Maximum Accrual rates that have been established.

SECTION 9. Effective December 24, 2017, the City shall grant Executive Leave to confidential management personnel not to exceed forty (40) hours per year. The City Manager may grant up to an additional forty (60) hours of Executive Leave. 956

SECTION 10. Pursuant to the Executive Professional Development Reimbursement Program, the City agrees to reimburse Confidential Management employees up to $1,300 per fiscal year for activities, materials, equipment or fees that will aid in their individual professional development or support employee wellness, mental and physical health. The intent of this program is to encourage and recognize executive staff for pursuing educational, professional or community -oriented activities, enhancing job skills and expertise, and/or purchasing materials/equipment, which improve the executive’s performance and well-being. These activities, materials, equipment or fees are intended to be beyond what is budgeted for individuals through the annual budget cycle. The reimbursement options available include the following:

• Professional memberships, licenses and certificates that are job-related • Professional conferences that are job- related including fees and other expenses while attending
• Membership dues in community organizations relevant to the executive’s job assignment
• Purchase of job- related professional journals, periodicals, books or other written materials which further knowledge or improvement of effectiveness in performance of duties
• Education fees that exceed the City’s annual $1,250 tuition reimbursement limit • Activities, materials, equipment or fees that promote employee wellness, mental and physical health
• Direct purchase of qualifying computer equipment defined in Administrative Regulation 2.29

The Department Director and Assistant City Manager must approve participation in the activities and/or purchase of the materials/equipment in advance. Claims for reimbursement must be accompanied by documentation that an eligible expense has been incurred during the fiscal year for the executive employee only. Employee may not request reimbursement for any activities, materials, equipment or fees that have already been reimbursed through a Flexible Spending Account, Health Savings Account or similar 957

program. Any portion of the reimbursement amount not incurred within the fiscal year shall remain City funds unless prior approval has been received by the City Manager.

Requests to carry forward unencumbered amounts to the next fiscal year must receive approval by the City Manager prior to the end of the fiscal year. All payments will be in the form of reimbursement and no executive employee will directly receive cash for this benefit. Reimbursements, which are subject to taxation, will be processed throu gh the payroll system. The Finance Department shall administer this program in accordance with the stated purpose and will provide the appropriate forms and procedures. This reimbursement program does not prohibit individual departments from continuing to budget funds for executive staff attendance at professional conferences and seminars, for the payment of professional membership dues, and/or for the purchase of books, journals and written materials that are job -related and will enhance an executive’s knowledge or expertise.

SECTION 11. The 401(a) deferred compensation plan provides executives with another tax-deferred savings plan for future financial planning. The City will provide a

0.5% per pay period employer contribution for any executive whose management group elects to participate in the 401(a) plan. The employer contribution will be reflected in that executive’s annual total compensation calculation. However, the City will not provide an employer contribution to the current 457 deferred compensation plan and the exec utive must make all 457 contributions.

SECTION 12. Amendments made pertaining to the fringe benefits, City Rules and Regulations and other employment conditions for employees represented by the Costa Mesa Division Managers Association shall also apply to “Confidential” unrepresented management employees unless specifically excluded. Any positions that may qualify to be part of this unrepresented unit shall be added as part of the process of adoption of salary schedules after consultation with the bargaining unit and employees.

SECTION 1 3. All resolutions and parts of resolutions in conflict herewith are hereby rescinded.

958

PASSED AND ADOPTED this 19th day of November, 2024.

______________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

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

959

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. 202 4-XX and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 19th day of November, 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 20th day of November, 2024.

______________________________
Brenda Green, City Clerk

(SEAL)

960
RESOLUTION NO. 2024-XX

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

CALIFORNIA, ESTABLISHING NEW JOB CLASSIFICATIONS AND REVISING THE EXECUTIVE COMPENSATION PLAN AND EXECUTIVE SALARY SCHEDULE.

T

HE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA HEREBY FINDS, DETERMINES, AND DECLARES AS FOLLOWS:

W
HEREAS, on March 21, 2023, the City Council adopted Resolutions No. 2023- 28 and 2023- 44, revising the pay ranges and benefits for job classifications in the Executive Salary Schedule; and
W
HEREAS, the City Council desires to repeal and replace Resolutions No. 2023- 28 and 2023- 44 to revise the pay ranges and benefits for the classifications specified therein; and

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

SECTION 1. The Costa Mesa City Council previously established the Executive Compensation Plan to: 1) promote maximum commitment by City executives to objectives and standards of the City Council and City Manager; 2) establish a system in which compensation serves as an effective device for promoting better job performance; 3) foster the identification of an executive employee group and recognize the distinct character of executive jobs; and, 4) improve the City’s ability to attract and retain outstanding executives.

SECTION 2. The following job classifications, placed under the Executive Salary Schedule, are hereby revised to reflect the salary ranges and monthly rates of pay specified, effective the pay period including J uly 1, 2024. The rate of pay for individual executives may be anywhere within the monthly minimum and maximum salary steps.

Attachment 3
961

APPOINTED AT-WILL EXECUTIVES
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0075 Assistant City Manager 810 $17,284 $18,148 $19,055 $20,008 $21,008 $22,058 $23,161 Monthly $207,408 $217,776 $228,660 $240,096 $252,096 $264,696 $277,932 Annual $99.72 $104.70 $109.93 $115.43 $121.20 $127.26 $133.62 Hourly

0027 Deputy City Manager 853 $13,819 $14,510 $15,235 $15,997 $16,797 $17,637 $18,519 Monthly $165,828 $174,120 $182,820 $191,964 $201,564 $211,644 $222,228 Annual $79.73 $83.71 $87.89 $92.29 $96.91 $101.75 $106.84 Hourly

APPOINTED AT-WILL SWORN DEPARTMENT DIRECTORS
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0223 Fire Chief 793 $16,915 $17,761 $18,649 $19,581 $20,560 $21,588 $22,667 Monthly $202,980 $213,132 $223,788 $234,972 $246,720 $259,056 $272,004 Annual $97.59 $102.47 $107.59 $112.97 $118.62 $124.55 $130.77 Hourly

0207 Police Chief 792 $16,915 $17,761 $18,649 $19,581 $20,560 $21,588 $22,667 Monthly $202,980 $213,132 $223,788 $234,972 $246,720 $259,056 $272,004 Annual $97.59 $102.47 $107.59 $112.97 $118.62 $124.55 $130.77 Hourly

APPOINTED AT-WILL DEPARTMENT DIRECTORS
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0091 Administrative Services 775 $11,837 $12,429 $13,050 $13,703 $14,388 $15,107 $15,862 Monthly Director $142,044 $149,148 $156,600 $164,436 $172,656 $181,284 $190,344 Annual $68.29 $71.71 $75.29 $79.06 $83.01 $87.16 $91.51 Hourly

0080 Economic and Development 850 $14,998 $15,748 $16,535 $17,362 $18,230 $19,142 $20,099 Monthly Development Services Director $179,976 $188,976 $198,420 $208,344 $218,760 $229,704 $241,188 Annual $86.53 $90.85 $95.39 $100.17 $105.17 $110.43 $115.96 Hourly

0069 Finance Director 772 $15,022 $15,773 $16,562 $17,390 $18,260 $19,173 $20,132 Monthly $180,264 $189,276 $198,744 $208,680 $219,120 $230,076 $241,584 Annual $86.67 $91.00 $95.55 $100.33 $105.35 $110.61 $116.15 Hourly

0049 Information Technology 851 $14,224 $14,935 $15,682 $16,466 $17,289 $18,153 $19,061 Monthly Director $170,688 $179,220 $188,184 $197,592 $207,468 $217,836 $228,732 Annual $82.06 $86.16 $90.47 $95.00 $99.74 $104.73 $109.97 Hourly

0306 Parks and Community 735 $13,549 $14,226 $14,937 $15,684 $16,468 $17,291 $18,156 Monthly Services Director $162,588 $170,712 $179,244 $188,208 $197,616 $207,492 $217,872 Annual $78.17 $82.07 $86.18 $90.48 $95.01 $99.76 $104.75 Hourly

962
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0117 Public Works Director 791 $14,998 $15,748 $16,535 $17,362 $18,230 $19,142 $20,099 Monthly $179,976 $188,976 $198,420 $208,344 $218,760 $229,704 $241,188 Annual $86.53 $90.85 $95.39 $100.17 $105.17 $110.43 $115.96 Hourly

SWORN DIVISION MANAGERS IN THE CLASSIFIED SERVICE
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0222 Assistant Fire Chief 859 $14,595 $15,325 $16,091 $16,896 $17,741 $18,628 $19,559 Monthly (Operations) $175,140 $183,900 $193,092 $202,752 $212,892 $223,536 $234,708 Annual $84.20 $88.41 $92.83 $97.48 $102.35 $107.47 $112.84 Hourly

0209 Deputy Police Chief 860 $14,595 $15,325 $16,091 $16,896 $17,741 $18,628 $19,559 Monthly $175,140 $183,900 $193,092 $202,752 $212,892 $223,536 $234,708 Annual $84.20 $88.41 $92.83 $97.48 $102.35 $107.47 $112.84 Hourly

NON SWORN DIVISION MANAGERS IN THE CLASSIFIED SERVICE
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0224 Assistant Fire Chief 860 $12,191 $12,801 $13,441 $14,113 $14,819 $15,560 $16,338 Monthly (Fire Marshal / $146,292 $153,612 $161,292 $169,356 $177,828 $186,720 $196,056 Annual Community Risk Reduction) $70.33 $73.85 $77.54 $81.42 $85.49 $89.77 $94.26 Hourly

SECTION 3. The following job classifications, placed under the Executive Salary Schedule, are hereby revised to reflect the salary ranges and monthly rates of pay specified, effective the pay period including July 1, 2025. The rate of pay for individual executives may be anywhere within the monthly minimum and maximum salary steps.

APPOINTED AT-WILL EXECUTIVES
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0075 Assistant City Manager 810 $17,932 $18,829 $19,770 $20,758 $21,796 $22,886 $24,030 Monthly $215,184 $225,948 $237,240 $249,096 $261,552 $274,632 $288,360 Annual $103.45 $108.63 $114.06 $119.76 $125.75 $132.03 $138.63 Hourly

0027 Deputy City Manager 853 $14,337 $15,054 $15,807 $16,597 $17,427 $18,298 $19,213 Monthly $172,044 $180,648 $189,684 $199,164 $209,124 $219,576 $230,556 Annual $82.71 $86.85 $91.19 $95.75 $100.54 $105.57 $110.84 Hourly

963

APPOINTED AT-WILL SWORN DEPARTMENT DIRECTORS
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0223 Fire Chief 793 $17,549 $18,426 $19,347 $20,314 $21,330 $22,397 $23,517 Monthly $210,588 $221,112 $232,164 $243,768 $255,960 $268,764 $282,204 Annual $101.24 $106.30 $111.62 $117.20 $123.06 $129.21 $135.68 Hourly

0207 Police Chief 792 $17,549 $18,426 $19,347 $20,314 $21,330 $22,397 $23,517 Monthly $210,588 $221,112 $232,164 $243,768 $255,960 $268,764 $282,204 Annual $101.24 $106.30 $111.62 $117.20 $123.06 $129.21 $135.68 Hourly

APPOINTED AT-WILL DEPARTMENT DIRECTORS
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0091 Administrative Services 775 $12,280 $12,894 $13,539 $14,216 $14,927 $15,673 $16,457 Monthly Director $147,360 $154,728 $162,468 $170,592 $179,124 $188,076 $197,484 Annual $70.85 $74.39 $78.11 $82.02 $86.12 $90.42 $94.94 Hourly

0080 Economic and Development 850 $15,560 $16,338 $17,155 $18,013 $18,914 $19,860 $20,853 Monthly Development Services Director $186,720 $196,056 $205,860 $216,156 $226,968 $238,320 $250,236 Annual $89.77 $94.26 $98.97 $103.92 $109.12 $114.58 $120.31 Hourly

0069 Finance Director 772 $15,587 $16,366 $17,184 $18,043 $18,945 $19,892 $20,887 Monthly $187,044 $196,392 $206,208 $216,516 $227,340 $238,704 $250,644 Annual $89.93 $94.42 $99.14 $104.09 $109.30 $114.76 $120.50 Hourly

0049 Information Technology 851 $14,757 $15,495 $16,270 $17,083 $17,937 $18,834 $19,776 Monthly Director $177,084 $185,940 $195,240 $204,996 $215,244 $226,008 $237,312 Annual $85.14 $89.39 $93.87 $98.56 $103.48 $108.66 $114.09 Hourly

0306 Parks and Community 735 $14,056 $14,759 $15,497 $16,272 $17,086 $17,940 $18,837 Monthly Services Director $168,672 $177,108 $185,964 $195,264 $205,032 $215,280 $226,044 Annual $81.09 $85.15 $89.41 $93.88 $98.57 $103.50 $108.68 Hourly

0117 Public Works Director 791 $15,560 $16,338 $17,155 $18,013 $18,914 $19,860 $20,853 Monthly $186,720 $196,056 $205,860 $216,156 $226,968 $238,320 $250,236 Annual $89.77 $94.26 $98.97 $103.92 $109.12 $114.58 $120.31 Hourly

SWORN DIVISION MANAGERS IN THE CLASSIFIED SERVICE
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0222 Assistant Fire Chief 859 $15,143 $15,900 $16,695 $17,530 $18,406 $19,326 $20,292 Monthly (Operations) $181,716 $190,800 $200,340 $210,360 $220,872 $231,912 $243,504 Annual $87.36 $91.73 $96.32 $101.13 $106.19 $111.50 $117.07 Hourly

964
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0209 Deputy Police Chief 860 $15,143 $15,900 $16,695 $17,530 $18,406 $19,326 $20,292 Monthly $181,716 $190,800 $200,340 $210,360 $220,872 $231,912 $243,504 Annual $87.36 $91.73 $96.32 $101.13 $106.19 $111.50 $117.07 Hourly

NON SWORN DIVISION MANAGERS IN THE CLASSIFIED SERVICE
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0224 Assistant Fire Chief 860 $12,650 $13,282 $13,946 $14,643 $15,375 $16,144 $16,951 Monthly (Fire Marshal / $151,800 $159,384 $167,352 $175,716 $184,500 $193,728 $203,412 Annual Community Risk Reduction) $72.98 $76.63 $80.46 $84.48 $88.70 $93.14 $97.79 Hourly

SECTION 4. The following job classifications, placed under the Executive Salary Schedule, are hereby revised to reflect the salary ranges and monthly rates of pay specified, effective the pay period including July 1, 2026 . The rate of pay for individual executives may be anywhere within the monthly minimum and maximum salary steps.

APPOINTED AT-WILL EXECUTIVES
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0075 Assistant City Manager 810 $18,560 $19,488 $20,462 $21,485 $22,559 $23,687 $24,871 Monthly $222,720 $233,856 $245,544 $257,820 $270,708 $284,244 $298,452 Annual $107.08 $112.43 $118.05 $123.95 $130.15 $136.66 $143.49 Hourly

0027 Deputy City Manager 853 $14,838 $15,580 $16,359 $17,177 $18,036 $18,938 $19,885 Monthly $178,056 $186,960 $196,308 $206,124 $216,432 $227,256 $238,620 Annual $85.60 $89.88 $94.38 $99.10 $104.05 $109.26 $114.72 Hourly

APPOINTED AT-WILL SWORN DEPARTMENT DIRECTORS
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0223 Fire Chief 793 $18,163 $19,071 $20,025 $21,026 $22,077 $23,181 $24,340 Monthly $217,956 $228,852 $240,300 $252,312 $264,924 $278,172 $292,080 Annual $104.79 $110.03 $115.53 $121.30 $127.37 $133.74 $140.42 Hourly

0207 Police Chief 792 $18,163 $19,071 $20,025 $21,026 $22,077 $23,181 $24,340 Monthly $217,956 $228,852 $240,300 $252,312 $264,924 $278,172 $292,080 Annual $104.79 $110.03 $115.53 $121.30 $127.37 $133.74 $140.42 Hourly

965

APPOINTED AT-WILL DEPARTMENT DIRECTORS
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0091 Administrative Services 775 $12,710 $13,346 $14,013 $14,714 $15,450 $16,222 $17,033 Monthly Director $152,520 $160,152 $168,156 $176,568 $185,400 $194,664 $204,396 Annual $73.33 $77.00 $80.84 $84.89 $89.13 $93.59 $98.27 Hourly

0080 Economic and Development 850 $16,105 $16,910 $17,756 $18,644 $19,576 $20,555 $21,583 Monthly Development Services Director $193,260 $202,920 $213,072 $223,728 $234,912 $246,660 $258,996 Annual $92.91 $97.56 $102.44 $107.56 $112.94 $118.59 $124.52 Hourly

0069 Finance Director 772 $16,132 $16,939 $17,786 $18,675 $19,609 $20,589 $21,618 Monthly $193,584 $203,268 $213,432 $224,100 $235,308 $247,068 $259,416 Annual $93.07 $97.73 $102.61 $107.74 $113.13 $118.78 $124.72 Hourly

0049 Information Technology 851 $15,273 $16,037 $16,839 $17,681 $18,565 $19,493 $20,468 Monthly Director $183,276 $192,444 $202,068 $212,172 $222,780 $233,916 $245,616 Annual $88.11 $92.52 $97.15 $102.01 $107.11 $112.46 $118.08 Hourly

0306 Parks and Community 735 $14,549 $15,276 $16,040 $16,842 $17,684 $18,568 $19,496 Monthly Services Director $174,588 $183,312 $192,480 $202,104 $212,208 $222,816 $233,952 Annual $83.94 $88.13 $92.54 $97.17 $102.02 $107.12 $112.48 Hourly

0117 Public Works Director 791 $16,105 $16,910 $17,756 $18,644 $19,576 $20,555 $21,583 Monthly $193,260 $202,920 $213,072 $223,728 $234,912 $246,660 $258,996 Annual $92.91 $97.56 $102.44 $107.56 $112.94 $118.59 $124.52 Hourly

SWORN DIVISION MANAGERS IN THE CLASSIFIED SERVICE
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0222 Assistant Fire Chief 859 $15,672 $16,456 $17,279 $18,143 $19,050 $20,002 $21,002 Monthly (Operations) $188,064 $197,472 $207,348 $217,716 $228,600 $240,024 $252,024 Annual $90.42 $94.94 $99.69 $104.67 $109.90 $115.40 $121.17 Hourly

0209 Deputy Police Chief 860 $15,672 $16,456 $17,279 $18,143 $19,050 $20,002 $21,002 Monthly $188,064 $197,472 $207,348 $217,716 $228,600 $240,024 $252,024 Annual $90.42 $94.94 $99.69 $104.67 $109.90 $115.40 $121.17 Hourly

NON SWORN DIVISION MANAGERS IN THE CLASSIFIED SERVICE
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0224 Assistant Fire Chief 860 $13,091 $13,746 $14,433 $15,155 $15,913 $16,709 $17,544 Monthly (Fire Marshal / $157,092 $164,952 $173,196 $181,860 $190,956 $200,508 $210,528 Annual Community Risk Reduction) $75.53 $79.30 $83.27 $87.43 $91.81 $96.40 $101.22 Hourly

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SECTION 5. Except as expressly provided in the City Manager’s Employment Agreement, the City Manager shall receive the same benefits as the other Executives.

SECTION 6. Effective the payroll period that includes January 1 , 2025, the City Manager is eligible to move to Step 4 in the salary range which equates to a three and three quarter percent (3.75 %) base salary increase. Effective the payroll period that includes January 1, 2026 , the City Manager is eligible to move to Step 5 in the salary range which equates to a three and a half (3.5%) base salary increase. Effective the payroll period that includes January 1, 2027, the City Manager is eligible to move to Step 6 in the salary range which equates to a three and a half (3.5%) base salary increase.

Class Class Title Grade Eff Eff Eff Eff Eff Eff
12/29/2021 1/1/2023 1/1/2024 1/1/2025 1/1/2026 1/1/2027 Code 1 2 3 4 5 6
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City
Manager 850 $25,000 $25,750 $26,523 $27,518 $28,481 $29,478 Monthly $300,000 $309,000 $318,276 $330,216 $341,772 $353,736 Annual $144.23 $148.56 $153.02 $158.76 $164.31 $170.07 Hourly

SECTION 7. The City of Costa Mesa has contracted with the California Public Employees Retirement System (CalPERS) to provide retirement benefits to eligible City employees.

7.1 CalPERS - Miscellaneous Members
Employees covered by this resolution who do not meet the definition of “new member” under the California Public Employees’ Pension Reform Act of 2013 (PEPRA) (those unit members shall be referred to as “classic members”) are enrolled in either the CalPERS retirement plan provided for by Government Code § 21354.4, and commonly referred to as the 2.5% at age 55 retirement plan (“tier 1”), or the 2% at 60 formula provided for by Government Code § 21353 (“tier 2”).

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A. Classic Members:

Effective April 16, 2017 , the total contribution for tier 1 (2.5% @ 55) unit members will be 12 % of compensation earnable, inclusive of statutory employee contributions and all cost sharing. The total contribution for tier 2 (2% @ 60) unit members will be 10% of compensation earnable, inclusive of statutory employee contributions and all cost sharing.

Effective the pay period that includes July 1, 2023, classic member employees subject to the 2.5%@55 formula shall have their cost sharing per Government Code section 20516(a) reduc ed by 1.469% for a net contribution of one percent (1%) and cost sharing pursuant to 20516(f) will be reduced from 1.531% to 0%.

Effective the pay period that includes July 1, 2023, classic member employees subject to the 2%@60 formula shall have their cost sharing per Government Code section 20516(f) reduced by 1% for a net contribution of two percent (2%).

B. New Members: Under PEPRA (see section 3.4 below):

Effective April 16, 2017, the total contribution for PEPRA tier 3 (2% @ 62) unit members will be 9 % of pensionable compensation, inclusive of statutory employee contributions and cost sharing.

7.2 CalPERS - Safety Police Members
Employees covered by this resolution who do not meet the definition of “new member” under the California Public Employees’ Pension Reform Act of 2013 (PEPRA) (those unit members shall be referred to as “classic members”) are enrolled in the CalPERS retirement plan provided for by Government Code § 21362.2, and commonly referred to as the 3% at age 50 retirement plan (“tier 1”).

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A. Classic Members:

Effective April 16, 2017, the total contribution for tier 1 (3 % @ 50) unit members will be 12% of compensation earnable, inclusive of statutory employee contributions and all cost sharing.

B. New Members: Under PEPRA (see section 3.4 below):

Effective April 16, 2017, the total contribution for PEPRA tier 2 (2.7% @ 57) unit members will be 9 % of pensionable compensation, inclusive of statutory employee contributions and cost sharing.

73 CalPERS – Safety Fire Members
Employees covered by this resolution who do not meet the definition of “new member” under the California Public Employees’ Pension Reform Act of 2013 (PEPRA) (those unit members shall be referred to as “classic members”) are enrolled in either the CalPERS retirement plan provided for by Government Code § 21362.2, and commonly referred to as the 3% at age 50 retirement plan (“tier 1”) or the 2% at 50 formula provided for by Government Code § 21362 (“tier 2”).

A. Classic Members:

Effective June 21, 2020, t he total contribution for tier 1 (3% @ 50) unit members will be 15 % of compensation earnable, inclusive of statutory employee contributions and all cost sharing. The total contribution for tier 2 (2% @ 50) unit members will be 15% of compensation earnable, inclusive of statutory employee contributions and all cost sharing.

Effective the pay period that includes July 1, 2023, classic member employees subject to the 2%@50 formula shall have their cost sharing per Government Code section 20516(f) reduced by 2% for a net contribution of three percent (3%).

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B. New Members: Under PEPRA (see section 7.4 below):

Upon adoption of this resolution by the City Council, the total contribution for PEPRA tier 3 (2.7% @ 57) will be 9% of pensionable compensation, inclusive of statutory employee contributions and cost sharing.

7.4 THE CALIFORNIA PUBLIC EMPLOYEES’ PENSION REFORM ACT OF 2013 (PEPRA)

As it may from time to time exist, the PEPRA shall in its entirety be given full force and effect. PEPRA includes, but is not limited to, the provisions described below:

Members hired on and after January 1, 2013, deemed to be a “new member” as defined in Government Code § 7522.04, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said “ new member” is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater.

Members who are “new members” on and after January 1, 2013, shall be enrolled in the PEPRA provided for 2% @ 62 retirement formula for miscellaneous employees (Govt. Code § 7522.20) , or 2.7% @ 57 for safety employees (Govt.

Code § 7522.25(d)).

Members who are “new members” on and after January 1, 2013, shall have “final compensation” measured by the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months (Section 7522.32.), and their retirement benefits shall be calculated based on “pensionable compensation” (Section 7522.10) rather than “compensation earnable” (Section 20636).

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SECTION 8. The following classifications shall be provided with a City vehicle or monthly automobile allowance:

Assigned City Vehicle: Fire Chief, Police Chief, Assistant Fire Chief, Deputy Police Chief

Assigned City Vehicle or up to $650 Monthly Automobile Allowance, except as expressly provided in the City Manager’s Employment Agreement: City Manager

$575 Monthly Automobile Allowance: Administrative Services Director, Assistant City Manager , Deputy City Manager, Economic and Development Services Director, Finance Director , Information Technology Director, Parks and Community Services Director, Public Works Director

In all situations, the City Manager has the sole discretion to grant, modify or deny use of a City vehicle or grant an allowance for employees covered by this resolution.

SECTION 9. Employees covered by this resolution shall be provided with a $75 monthly technology allowance. The City Manager has the sole discretion to grant, modify or deny an allowance for employees covered by this resolution.

SECTION 10. With exception of the City Manager, a pay -for-performance evaluation and compensation system will be utilized for all employees in executive job classifications. All compensation increases for executives will be based upon continued meritorious service to the City. Though the City Manager may receive labor marketplace salary adjustments, annual performance evaluations for this position will be conducted in the fall of each year by the City Council.

SECTION 11. Sworn Executives and Managers are eligible to participate in the Management Certification/Education Program based upon the following achievements and criteria:

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Certification/ Degree Eligible Classification Award P.O.S.T. Executive Certificate Police Chief 5.0%
FBI Academy Police Chief 2.5%
Command College Police Chief 2.5%*
National Fire Academy - Executive Fire Officer Fire Chief 2.50% Master’s Degree Fire Chief 2.50%
P.O.S.T. Management Certificate Deputy Police Chief 5.0%

Awards are based on a percentage of base salary. The maximum cumulative award payable to any employee shall not exceed 10.0% of base salary. To the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 California Code of Regulations, Section 571 and 571.1.

An award may be granted, rejected or removed at any time. The City Manager may review and update this program on a periodic basis to ensure its vitality and relevance.

SECTION 12. Sworn Division Managers who have been employed in a full -time sworn law enforcement position (as defined by California Penal Code sections 830.1, 830.2, 830.32 and 830.33 or the out -of-state equivalent as determined by the Chief of Police) or in a full -time sworn fire classification (i.e. , Firefighter, Fire Engineer, Fire Captain, Battalion Chief or Fire Division Chief) in a municipal, state, federal fire department or other agency (as determined by the Fire Chief) for twenty-five (25) years or more (with a maximum of 10 years in such a position outside of the City of Costa Mesa) shall receive recruitment and retention incentive pay of ten percent (10%).

SECTION 13. Sworn Division Managers (Deputy Police Chief and Assistant Fire Chief) work without regards to holiday and shall be compensated for holiday time of 104 hours per calendar year. To the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 California Code of Regulations, Section 571 and 571.1.
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SECTION 14. The City shall contribute an amount toward the executive flexible benefit plan bucket for the payment of premiums for affected employees and dependents based upon the following criteria:

• Full family coverage for the PERS Platinum medical plan under the California Public Employees’ Retirement System (CALPERS) health insurance programs • Full family coverage for the Dental Indemnity plan
• Full premium payment for Life Insurance
• For Department Directors, Long Term Disability premium will be based upon the top step salary of the highest -salaried Department Director within the classified service
• For Division Managers, Long Term Disability premium will be based upon the top step salary of the highest -salaried Division Manager within the classified service

Any amounts necessary to maintain benefit premiums in excess of the City contribution specified above shall be borne entirely by the executive employee.

SECTION 15. Employees covered by this resolution shall accrue vacation leave at the following rates and shall be capped at the following maximum levels:

Years of Service Annual Accrual 40-Hour Maximum Accrual 40-Hour 1-2 92 184
3-4 116 232
5-9 140 280
10-14 164 320
15-19 188 320
20+ 212 320

Vacation Leave Cash-Outs – Each fiscal year, employees will have the following cash-out options: 1) One eighty (80) hour cash- out any time during the fiscal year, regardless of the employee’s maximum accrual and regardless of the employee’s 973
Vacation Leave usage; and, 2) Up to four cash- outs per fiscal year, any time during the fiscal year (irrespective of quarter), based on a “2 for 1” usage ratio, up to a maximum of 80-hours for each cash out. For example, if an employee uses 10 hours of Vacation Leave, the employee could cash out up to 20 hours of Vacation Leave; in order for an employee to cash- out the maximum of 80- hours Vacation Leave, the employee would need to use 40 hours of Vacation Leave.

All employees who are at the Maximum Accrual Level or who may reach the Maximum Accrual Level shall utilize the “Cash- Out” and/or “Vacation Leave” options so as to NOT exceed the Vacation Accrual Ceiling. Other than exceptions granted based upon City and/or Departmental needs as approved by the City Manager , there will no other cash-out of Vacation Leave time beyond the Maximum Accrual rates that have been established.

SECTION 16. The City shall grant Executive Leave to management personnel not to exceed forty (40) hours per year. The City Manager may grant up to an additional sixty (60) hours of Executive Leave.

SECTION 17. Pursuant to the Executive Professional Development Reimbursement Program, the City agrees to reimburse Department Directors up to $2,300 and Division Managers up to $1,300 per fiscal year for activities, materials, equipment or fees that will aid in their individual professional development or support employee wellness, mental and physical health. The intent of this program is to encourage and recognize executive staff for pursuing educational, professional or community-oriented activities, enhancing job skills and expertise, and/or purchasing materials/equipment, which improve the executive’s performance and well-being. These activities, materials, equipment or fees are intended to be beyond what is budgeted for individuals through the annual budget cycle. The reimbursement options available include the following:

• Professional memberships, licenses and certificates that are job-related 974
• Professional conferences that are job- related including fees and other expenses while attending
• Membership dues in community organizations relevant to the executive’s job assignment
• Purchase of job- related professional journals, periodicals, books or other written materials which further knowledge or improvement of effecti veness in performance of duties
• Education fees that exceed the City’s annual $1,250 tuition reimbursement limit • Activities, materials, equipment or fess that promote employee wellness, mental and physical health
• Direct purchase of qualifying computer equipment defined in Administrative Regulation 2.29

The Assistant City Manager must approve participation in the activities and/or purchase of the materials/equipment in advance. Claims for reimbursement must be accompanied by documentation that an eligible expense has been incurred during the fiscal year for the executive employee only. Employee may not request reimbursement for any activities, materials, equipment or fees that have already been reimbursed through a Flexible Spending Account, Health Savings Account or similar program.

Any portion
of the reimbursement amount not incurred within the fiscal year shall remain City funds unless prior approval has been received by the City Manager. Requests to carry forward unencumbered amounts to the next fiscal year must receive approval by the City Manager prior to the end of the fiscal year. All payments will be in the form of reimbursement and no executive employee will directly receive cash for this benefit. Reimbursements, which are subject to taxation, will be processed through the pay roll system. The Finance Department shall administer this program in accordance with the stated purpose and will provide the appropriate forms and procedures. This reimbursement program does not prohibit individual departments from continuing to budget funds for executive staff attendance at professional conferences and seminars, for the payment of professional membership dues, and/or for the purchase of books, journals and written materials that are job-related and will enhance an executive’s knowledge or expertise. 975
SECTION 18. The 401(a) deferred compensation plan provides executives with another tax -deferred savings plan for future financial planning. Executives and Department Directors covered by the Executive Compensation Plan and executive salary schedule shall receive a $15,000 annual contribution to the City’s 401(a) plan. Division Managers covered by the Executive Compensation Plan and executive salary schedule shall receive 0.5% per pay period for those who elect to participate in the 401(a) plan.

Except as provided in the City Manager’s Employment Agreement , executives must make any and all 457 deferred compensation contributions. The City shall contribute to City Manager’s 45 7 account the maximum annual contribution permitted, including applicable catch-up provisions. The City will also calculate a contribution to a defined contribution plan for the Fire Chief in an amount to be determined by an actuarial valuation performed by a professional actuary.

SECTION 1 9. All resolutions and parts of resolutions in conflict herewith are hereby rescinded.

PASSED AND ADOPTED this 19
th day of November, 2024.

______________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

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

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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 19th day of November , 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 20
th day of November, 2024.

______________________________
Brenda Green, City Clerk

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