Agenda packet — Costa Mesa City Council, April 21, 2026

CITY OF COSTA MESA
REGULAR CITY COUNCIL AND HOUSING AUTHORITY*
Agenda
City Council Chambers
77 Fair Drive
6:00 PMTuesday, April 21, 2026
*Note: All agency memberships are reflected in the title "Council Member" The City Council meetings are presented in a hybrid format, both in-person at City Hall and as a courtesy virtually via Zoom Webinar. If the Zoom feature is having technical difficulties or experiencing any other critical issues, and unless required by the Brown Act, the meeting will continue in person.

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

Closed Captioning is available via the Zoom option in English and Spanish.

Los subtítulos están disponibles a través de la opción Zoom en inglés y español.

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

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

Page 1 of 12 ends

1 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026
Members of the public are welcome to speak during the meeting when the Mayor opens the floor for public comment. There is no need to register in advance or complete a comment card. When it's time to comment, line up at one of the two podiums in the room and wait for your turn. Each speaker will have up to 3 minutes (or as directed) to address the City Council.

To maintain a respectful and orderly atmosphere during the meeting, attendees shall refrain from using horns or amplified speakers. Signs and props may be brought into the Chamber, provided they do not exceed 11 inches by 18 inches in size and do not hinder the visibility of other attendees. The possession of poles, sticks, or stakes is strictly prohibited.

All attendees must remain seated while in the chamber until instructed by the Presiding Officer to approach and line up for public comment. To ensure safety and maintain order during the proceedings, standing or congregating in the aisles or foyer is strictly prohibited.

Further information regarding the City's regulations on addressing the City Council and expected conduct during meetings are available at the following links.

Title 2: Administration
§ 2-61: Conduct while addressing the council.
https://ecode360.com/42609578
Title 2: Administration
§ 2-64: Disorderliness by members of the audience.
https://ecode360.com/42609598
As a courtesy, the public may participate via the Zoom option.

Zoom Webinar:

Please click the link below to join the webinar:
https://us06web.zoom.us/j/83781743950?pwd=pqaRYYlpYbMFmaYgNN4Ea8k3fPHKcq.1 Or sign into Zoom.com and “Join a Meeting”
Enter Webinar ID: 837 8174 3950/ Password: 590501
• If Zoom is not already installed on your computer, click “Download & Run Zoom” on the launch page and press “Run” when prompted by your browser. If Zoom has previously been installed on your computer, please allow a few moments for the application to launch automatically.
• Select “Join Audio via Computer.”
• The virtual conference room will open. If you receive a message reading, “Please wait for the host to start this meeting,” simply remain in the room until the meeting begins.
• During the Public Comment Period, use the “raise hand” feature located in the participants’ window and wait for city staff to announce your name and unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.

Page 2 of 12 ends

2 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026
Participate via telephone:

Call: 1 669 900 6833 Enter Webinar ID: 837 8174 3950/ Password: 590501 During the Public Comment Period, press *9 to "raise your hand" and to be added to the queue to speak and wait for city staff to announce your name/phone number and press *6 to unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.

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

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

Any written communications, photos, or other materials for copying and distribution to the City Council that are 10 pages or less, can be e-mailed to [email protected], submitted to the City Clerk’s Office on a flash drive, or mailed to the City Clerk’s Office. Kindly submit materials to the City Clerk AS EARLY AS POSSIBLE, BUT NO LATER THAN 12:00 p.m. on the day of the meeting.

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

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

Note that records submitted by the public will not be redacted in any way and will be posted online as submitted, including any personal contact information. All pictures, PowerPoints, and videos submitted for display at a public meeting must be previously reviewed by staff to verify appropriateness for general audiences. This includes items submitted for the overhead screen during the meeting. Items submitted for the overhead screen should be 1 page and provided to the City Clerk prior to the start of the meeting. No links to YouTube videos or other streaming services will be accepted, a direct video file will need to be emailed to staff prior to each meeting in order to minimize complications and to play the video without delay. The video must be one of the following formats, .mp4, .mov or .wmv. Only one file may be included per speaker for public comments, for both videos and pictures. Please e-mail to the City Clerk at [email protected] NO LATER THAN 12:00 Noon on the date of the meeting. If you do not receive confirmation from the city prior to the meeting, please call the City Clerks office at 714-754-5225.

Page 3 of 12 ends

3 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026
Note regarding agenda-related documents provided to a majority of the City Council after distribution of the City Council agenda packet (GC §54957.5): Any related documents provided to a majority of the City Council after distribution of the City Council Agenda Packets will be made available for public inspection. Such documents will be posted on the city’s website and will be available at the City Clerk's office, 77 Fair Drive, Costa Mesa, CA 92626.

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

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

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

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

For your convenience, a binder of the entire agenda packet will be at the table in the foyer of the Council Chambers for viewing. Agendas and reports can be viewed on the City website at https://costamesa.legistar.com/Calendar.aspx. Las agendas y los informes se pueden ver en español en el sitio web de la Ciudad en
https://www.costamesaca.gov/trending/current-agendas/spanish-city-council-agendas.

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

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

35.102.35.104 ADA Title II].

Page 4 of 12 ends

4 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026

REGULAR MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY APRIL 21, 2026 – 6:00 P.M.

JOHN STEPHENS
Mayor

MANUEL CHAVEZ ANDREA MARR Mayor Pro Tem - District 4 Council Member - District 3

ARLIS REYNOLDS LOREN GAMEROS Council Member - District 5 Council Member - District 2

JEFF PETTIS MIKE BULEY Council Member - District 6 Council Member - District 1

KIMBERLY HALL BARLOW CECILIA GALLARDO-DALY City Attorney City Manager

CALL TO ORDER

NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE

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

ROLL CALL

CITY ATTORNEY CLOSED SESSION REPORT
PRESENTATIONS: NONE.

PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Comments on Presentations and Consent Calendar items may also be heard at this time. Comments are limited to 3 minutes, or as otherwise directed.

Page 5 of 12 ends

5 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026

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

1. Council Member Marr

2. Council Member Reynolds

3. Council Member Pettis

4. Council Member Buley

5. Council Member Gameros

6. Mayor Pro Tem Chavez

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

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

1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL

ORDINANCES AND RESOLUTIONS
26-212
RECOMMENDATION:

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

2. READING FOLDER 26-241
RECOMMENDATION:

City Council receive and file Claims received by the City Clerk and authorize staff to reject any and all Claims: Kafshi Bennett, Kerry Brennan, Nicholas Wood-Perales, Christopher Riley, Josefina Rodriguez.

Page 6 of 12 ends

6 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026

3. ADOPTION OF WARRANT RESOLUTION 26-194
RECOMMENDATION:

City Council approve Warrant Resolution No. 2752.

1. Summary Check Registration 3-26-2026

2. Summary Check Registration 4-2-2026
Attachments:

4. MINUTES 26-242
RECOMMENDATION:

City Council approve the Minutes of the Regular Meeting on March 17, 2026.

1. 03-17-2026 Draft MinutesAttachments:

5. ACCEPTANCE OF THE CITY HALL BASEMENT I .T. OFFICES AND TRAINING ROOM REMODEL PROJECT, CITY PROJECT NO. 24-11
26-225
RECOMMENDATION:

Staff recommends the City Council:

1. Accept the work performed by American Construction Company, LLC, dba ACC, 1130 North Kraemer Boulevard, No. 1, Anaheim, California 92806, for the City Hall Basement Information Technology ( I.T.) Offices and Training Room Remodel Project, City Project No. 24-11, and authorize the City Clerk to file the Notice of Completion.

2. Authorize the City Manager to release the Labor and Material Bond seven ( 7) months after the filing date and release the Faithful Performance Bond at the conclusion of the one-year warranty period. The retention has been released per Public Contract Code section 7107(c).

1. Final CostsAttachments:

6. APPROPRIATION OF FUNDS FOR THE REHABILITATION OF
RENTAL UNITS AT THE JAMES/18TH STREET APARTMENTS
26-231
RECOMMENDATION:

Appropriate and transfer $200,000 from the Housing Trust Fund (Fund 226) to the Costa Mesa Housing Authority James/18th Street Property Fund (Fund 223) to rehabilitate four (4) rental housing units at the James/18th Street apartments.

Page 7 of 12 ends

7 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026

7. TWO YEAR EXTENSION OF THE PROFESSIONAL SERVICES

AGREEMENT WITH WITTMAN ENTERPRISES, LLC FOR

AMBULANCE BILLING AND COST RECOVERY SERVICES RFP
18-03
26-218
RECOMMENDATION:

Staff recommends the City Council:

1. Approve Amendment Number Three to extend the term of the Professional Services Agreement for Ambulance Billing and Cost Recovery Services between Wittman Enterprises, LLC and the City of Costa Mesa for two ( 2) additional years to July 31, 2028, and to increase the per call cost by $1.00 from $23.00 to $24.00. (Attachment 1).

2. Authorize the City Manager and the City Clerk to execute the Amendment Number Three to Professional Services Agreement and future amendments to the agreement within the City Council’s authorized limits.

1. Amendment No. Three Wittman Enterprises

2. Wittman proposal for Amendment No. 3

3. Wittman Enterprises LLC - Amendment No. 1

4. Professional Services Agreement with Wittman Enterprises LLC

5. Wittman Enterprises LLC. - Amendment No. 2
Attachments:

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

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

Page 8 of 12 ends

8 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026
PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)

1. CONTINUATION REQUEST OF AN APPEAL OF THE PLANNING
COMMISSION’S DECISION TO UPHOLD THE ECONOMIC AND
DEVELOPMENT SERVICES DIRECTOR ’S DECISION TO DENY A

REASONABLE ACCOMMODATION REQUEST TO DEVIATE FROM

CERTAIN REQUIREMENTS OF THE ZONING CODE TO OPERATE A
SOBER LIVING HOME OPERATED BY THE OHIO HOUSE AT 115

EAST WILSON STREET, UNITS A THROUGH E
26-229
RECOMMENDATION:

Staff recommends the City Council continue the open public hearing item to the June 16, 2026, meeting, pursuant to applicant’s request.

1. Continuance RequestAttachments:

2. INTRODUCTION AND FIRST READING OF THE CITY OF COSTA

M E S A, C AL I F O R N I A AD D I N G C H AP T E R I V , TRAP-NEUTER-RETURN, TO TITLE 3 OF THE COSTA MESA

MUNICIPAL CODE TO ESTABLISH A TRAP-NEUTER-RETURN

PROGRAM FOR COMMUNITY CATS
26-162
RECOMMENDATION:

Staff recommends the City Council introduce for first reading Ordinance No . 2026-XX adding Title 3 Animal Regulations of the Costa Mesa Municipal Code 3-171 to establish and regulate a Trap-Neuter-Return (TNR) program for community cats within the City of Costa Mesa.

1. TNR Ordinance

2. Community Cat Colony Tracking System
Attachments:

Page 9 of 12 ends

9 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026
OLD BUSINESS:

1. ADOPTION OF ORDINANCE AMENDING CHAPTER III OF TITLE 15

OF THE COSTA MESA MUNICIPAL CODE RELATING TO PUBLIC

WORKS - DRAINAGE
26-228
RECOMMENDATION:

Staff recommends the City Council give second reading and adopt Ordinance No. 2026-05, to be read by title only, approving revisions to Chapter III of Title 15 of the Costa Mesa Municipal Code (Public Works-Drainage) to incorporate updated drainage impact fees, revise administrative provisions for fee collection, and align City code language with current state law and the City’s adopted Storm Drainage Impact Fee Nexus Study.

1. Proposed Ordinance No. 2026-05Attachments:

Page 10 of 12 ends

10 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026
NEW BUSINESS:

1. AMENDMENT NUMBER THREE TO EXTEND THE TERM OF THE

PROFESSIONAL SERVICES AGREEMENT WITH FALCK MOBILE

HEALTH CORPORATION FOR AMBULANCE SERVICES
26-223
RECOMMENDATION:

Staff recommends the City Council:

1. Approve Amendment Number Three to the Professional Services Agreement with Falck Mobile Health Corp (Previously known as Care Ambulance) to extend the term for the continuation of emergency ambulance operator and support services for two additional years from August 1, 2026 through July 31, 2028 for an amount not to exceed (NTE) $5,020,000, with all other terms and conditions to remain the same as outlined in Amendment Number Two.

2. Authorize a ten percent (10%) contingency in the amount of $502,000 for unforeseen costs.

3. Authorize the City Manager and the City Clerk to execute Amendment Number Three to the Professional Services Agreement (Attachment 1) and future amendments to the agreement within City Council authorized limits.

1. Falck Contract Extension 2026 Amendment No. 3

2. PSA Care Ambulance

3. Falck Operating budget Compensation Schedule

4. Falck Additional Expenses - Surge Unit

5. Falck Amendment No. 1

6. Falck Amendment No. 2
Attachments:

Page 11 of 12 ends

11 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda April 21, 2026

2. AWARD OF THE 2025-26 CITYWIDE ALLEY REHABILITATION
PROJECT, CITY PROJECT NO. 25-17
26-224
RECOMMENDATION:

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 2025-26 Citywide Alley Rehabilitation Project, City Project No. 25-17.

3. Reject the apparent low bid submitted by Diamond Construction & Design, 638 Camino De Los Mares, #H130-513, San Clemente, California 92673, as non-responsive.

4. Award a Public Works Agreement (PWA) for construction to the second lowest bidder to Kalban, Inc ., 26450 Ruether Avenue #201, Santa Clarita, California 91350 in the amount of $1,131,951 and authorize an additional ten percent (10%) contingency in the amount of $113,195 as needed for any unforeseen costs related to this project.

5. Authorize the City Manager and City Clerk to execute the PWA and future amendments to the agreement within Council authorized limits.

ENVIRONMENTAL DETERMINATION:

The proposed action is exempt from the California Environmental Quality Act (CEQA). The action involves an organizational or administrative activity of government that will not result in direct or indirect physical change in the environment. In addition, the proposed action is exempt under section 15301 relating to the operation, repair, maintenance, permitting, and /or minor alteration of existing public facilities.

1. Citywide Alley Project Locations Map

2. Z&K Proposal (Construction Services)

3. Bid Rejection (Diamond Construction)

4. Bid Summary

5. PWA
Attachments:

ADDITIONAL COUNCIL /BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND

SUGGESTIONS

ADJOURNMENT

Page 12 of 12 ends

12 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-212 Meeting Date: 4/21/2026
TITLE:

PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND

RESOLUTIONS
RECOMMENDATION:

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

Page 1 of 1 ends

13 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-241 Meeting Date: 4/21/2026
TITLE:

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

Page 1 of 1 ends

14 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-194 Meeting Date: 4/21/2026
TITLE:

ADOPTION OF WARRANT RESOLUTION
DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: MARK KHOU, BUDGET & PURCHASING MANAGER
CONTACT INFORMATION: MARK KHOU, BUDGET & PURCHASING MANAGER AT (714) 754-5241
RECOMMENDATION:

City Council approve Warrant Resolution No. 2752.

BACKGROUND:

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

FISCAL REVIEW:

Funding Payroll Register No. 26-06 On Cycle for $4,043,889.52; No. 26-07 On Cycle for $4,062,168.01, and No. 26-06 “A” Off Cycle for $671.93, and City operating expenses for $2,641,904.69.

Page 1 of 1 ends

15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 32
33 34
35 36
37 38
39 40
41 42
43 44
45 46
47 48
49 50
51 52
53 54
55 56
57 58
59 60
61 62
63 64
65 66
67 68
69 70
71 72
73 74
75 76
77 78
79 80
81 82
83 84
85 86
87 88
89 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-242 Meeting Date: 4/21/2026
TITLE:

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

City Council approve the Minutes of the Regular Meeting on March 17, 2026.

Page 1 of 1 ends

90 Minutes – Regular Meeting March 17, 2026 Page 1 of 17

REGULAR MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY MARCH 17, 2026 – MINUTES

CALL TO ORDER – The Closed Session meeting was called to order by Mayor Stephens at 4:00 p.m.

ROLL CALL

Present: Council Member Buley , Council Member Gameros (arrived at 4:08 p.m. ), Council Member Marr (arrived at 4:07 p.m. ), Council Member Pettis , Council Member Reynolds (arrived at 4:08 p.m.), Mayor Pro Tem Chavez, and Mayor Stephens.

Absent: None.

PUBLIC COMMENTS – NONE.

CLOSED SESSION ITEMS:

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATION OF LITIGATION - TWO CASES
Pursuant to California Government Code Section 54956.9 (d)(2), Potential Litigation.

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

City Council recessed at 4:02 p.m. for Closed Session.

Closed Session adjourned at 4:50 p.m.

CALL TO ORDER - The Regular City Council and Housing Authority meeting was called to order by Mayor Stephens at 6:00 p.m.

NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE – A video was played of the National Anthem and the Mayor led the Pledge of Allegiance.

MOMENT OF SOLEMN EXPRESSION – Led by Pastor Matthew Hambrick, Costa Mesa First United Methodist Church.

ROLL CALL

Present: Council Member Buley , Council Member Gamer os, Council Member Marr, Council Member Pettis , Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Absent: None.
91 Minutes – Regular Meeting March 17, 2026 Page 2 of 17

CITY ATTORNEY CLOSED SESSION REPORT – No reportable action.

PRESENTATIONS:

Mayor Stephens presented a proclamation to Linda Sadeghi and Jennifer Friend in recognition of 2026 Womens History Month.

PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA

Jay Humphrey, Costa Mesa, requested an update on the Ethics Policy, spoke on improving public outreach at meetings, spoke on the required RHNA numbers, and spoke on park space.

Brooke Grey, Costa Mesa, requested the money donated to Someone Cares Soup Ki tchen be returned.

Cynthia McDonald, Costa Mesa, spoke on the amount of items placed on the agenda, spoke in support of an Ethics Policy, requested the investigators report pertaining to Harrison v. Costa Mesa, spoke on the photographs used at public outreach events, and that surveys exclud e City Council Members and Planning Commissioners.

Speaker, Costa Mesa, requested the money donated to Someone Cares Soup Kitchen be returned.

Juana Trejo, spoke on the dumping of trash in the alley and cars blocking passage through the alley.

COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS

Council Member Buley spoke on the length of the agenda and spoke on attendance at the March 10
th FiPAC meeting.

Council Member Gameros spoke on the heat wave, preventing heat stroke, and a cooling center at the Senior Center.

Council Member Marr spoke on the contract with Immigrant Defenders Law Center , spoke on the chiller and HVAC upgrades, spoke on t he State and dealing with wildfire threats, and asked the Public Works staff to inquire with the County on treating of the waterways.

Council Member Reynolds spoke on the amount of items on the agenda and requested a 2 -3 month outlook, and spoke on new material being presented at the Council meeting.

Council Member Pettis spoke on the heat wave and preventing heat stroke and spoke on the importance of public engagement.

Mayor Pro Tem Chavez spoke in response to Juana Trejo’s comments and requested to adjourn the meeting in memory of Huy Pham.

92 Minutes – Regular Meeting March 17, 2026 Page 3 of 17

Mayor Stephens complimented the City Snapshot and spoke on adjourning the meeting in memory of Beau Moore, Julian Enrique Hernandez, Marcia LaPierre, and Huy Pham.

REPORT – CITY MANAGER – NONE.

REPORT – CITY ATTORNEY – NONE.

CONSENT CALENDAR

MOVED/SECOND: Mayor Stephens/Council Member Reynolds
MOTION: Approve the Consent Calendar except for item no. 4.

The motion carried by the following roll call vote:

Ayes: Council Member Buley , Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: Council Member Gameros recused himself on item 3 the Warrant Resolution due to his wife working for Priceless Pet Rescue.

Motion carried: 7-0

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

RESOLUTIONS

ACTION:

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

2. READING FOLDER

ACTION:

City Council received and filed Claims received by the City Clerk and authorized staff to reject any and all Claims: Jake Blackman (JBA Motors), Bryan Devora, Pierre Raymon Holt, Andrew Solarte, Eric Valles.

3. ADOPTION OF WARRANT RESOLUTION

ACTION:

City Council approved Warrant Resolution No. 2750.

5. 2025 GENERAL PLAN ANNUAL PROGRESS REPORT

ACTION:

City Council received and filed the 2025 Annual Progress Report (APR) and authorize d staff to submit the annual report to the State Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (LCI), formerly known as the Office of Planning and Research (OPR).

93 Minutes – Regular Meeting March 17, 2026 Page 4 of 17

6. BRISTOL STREET TRAFFIC SIGNAL SYNCHRONIZATION PROJECT

ACTION:

1. City Council a pproved the Cooperative Agreement between the cities of Costa Mesa, Santa Ana, and Newport Beach for the Bristol Street Traffic Signal Synchronization Project.

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

7. AMENDMENT TO INCREASE FUNDING TO THE CITY SIDEWALK AND GUTTER

FLOW GRINDING SERVICES AGREEMENT

ACTION:

1. City Council a uthorized the City Attorney to prepare the Second Amendment to the Maintenance Services Agreement (MSA ) for citywide sidewalk grinding and gutter flow grinding with BPR, Incorporated, increasing compensation by $150,000 for an annual not to exceed amount of $300,000.

2. Authorized a ten percent (10%) contingency annually for emergency response, special events and other unforeseen costs; and approval for Consumer Price Index (CPI) escalation and de-escalation.

3. Authorized the City Manager and the City Clerk to execute the agreeme nt and future amendments to this agreement within Council authorized limits.

8. RESOLUTION AUTHORIZING STREET CLOSURES FOR THE 2026 ORANGE

COUNTY MARATHON RUNNING FESTIVAL

ACTION:

City Council a dopted Resolution No. 2026- 09, designating event routes for the 2026 Orange County (OC) Marathon Running Festival and approving the temporary street closures for May 2, 2026, and May 3, 2026, as requested for the 2026 OC Marathon Running Festival.

9. RESOLUTION 2026-10 APPROVING THE 2025-2026 STATEMENT OF INVESTMENT

POLICY FOR THE CITY, AND DESIGNATING THE CITY TREASURER TO INVEST

AND REINVEST IDLE MONIES OF THE CITY OF COSTA MESA IN ACCORDANCE WITH THE 2025-2026 STATEMENT OF INVESTMENT POLICY

ACTION:

City Council a dopted Resolution 2026-10 approving the 2025- 26 Costa Mesa Investment Policy and delegating the investment activities to the City Treasurer.

94 Minutes – Regular Meeting March 17, 2026 Page 5 of 17

ITEMS PULLED FROM THE CONSENT CALENDAR

4. MINUTES

Council Member Reynolds clarified the motion on the 2026 Legislative Update to include sending a letter to the transportation committees in Sacramento regarding the success of lowering speed limits in the city.

Public Comments: None.

MOVED/SECOND: Mayor Stephens/Council Member Marr
MOTION: Approve the March 3, 2026 minutes with the clarification as noted by Council Member Reynolds.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

ACTION:

City Council approved the minutes of the regular meeting of March 3, 2026 with the clarification r egarding the 2026 Legislative Update to include sending a letter to the transportation committees in Sacramento regarding the success of lowering speed limits in the city.

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

Council Member Marr requested to consider New Business Item No. 2 out of order after the Consent Calendar.

NEW BUSINESS:

2. CITY OF COSTA MESA, COSTA MESA FINANCE AUTHORITY, AND COSTA MESA

HOUSING AUTHORITY AUDITED FINANCIAL STATEMENTS, AND HOUSING SUCCESSOR ANNUAL REPORT FOR THE PERIOD ENDING JUNE 30, 2025

Presentation by Ms. Acosta- Reyes, Finance Manager and Daphne Munoz, consultant with CliftonLarsonAllen LLP.

Public Comments: None.

95 Minutes – Regular Meeting March 17, 2026 Page 6 of 17

MOVED/SECOND: Council Member Marr/Council Member Pettis MOTION: Approve staff recommendation.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

ACTION:

1. City Council receive d and filed the following reports for the fiscal year ended June 30, 2025:

a. Annual Comprehensive Financial Report (ACFR).
b. Air Quality Improvement Fund Compliance Report.
c. Audit Communication Letter.
d. Independent Accountant's Report on Agreed- Upon Procedures Applied to Appropriation Limit Worksheets.

2. City Council and Costa Mesa Financing Authority received and filed the Costa Mesa Financing Authority audited financial statements for the fiscal year ended June 30, 2025.

3. City Council and Housing Authority receive d and filed the following reports for the fiscal year ended June 30, 2025:

a. Independent Financial Audit of the Costa Mesa Housing Authority, including the Low and Moderate-Income Housing Asset Fund; and
b. The Fiscal Year 2024- 25 Housing Successor Annual Report prepared under the California Health and Safety Code section 34176.1 as the housing successor and section 34328 as a housing authority.

96 Minutes – Regular Meeting March 17, 2026 Page 7 of 17

PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)

1. CONTINUATION REQUEST OF AN INTRODUCTION AND FIRST READING BY TITLE ONLY OF AN ORDINANCE AMENDING CHAPTER III OF TITLE 15 OF THE

COSTA MESA MUNICIPAL CODE RELATING TO DRAINAGE AND ADOPTION OF

DEVELOPMENT IMPACT FEES FOR STORM DRAINAGE AND ADOPTION OF A

CAPITAL IMPROVEMENT PLAN AS PART OF THE NEXUS STUDY AND

COMPLETION OF THE STORM DRAIN SYSTEM MASTER PLAN (SDSMP) UPDATE

Public Comments: None.

MOVED/SECOND: Mayor Stephens/Council Member Marr
MOTION: Approve staff recommendation.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

ACTION:

City Council opened the public hearing and continued the item to the April 7, 2026, City Council meeting.

Council Member Marr requested to consider New Business Item No. 1 out of order after Public Hearing Item No. 2.

2. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA REPEALING, REPLACING AND AMENDING TITLE 9 (LICENSES AND

BUSINESS REGULATIONS) OF THE COSTA MESA MUNICIPAL CODE, CHAPTER II (REGULATION OF CERTAIN BUSINESSES), ARTICLE 24 (JUST CAUSE

RESIDENTIAL TENANT PROTECTIONS)

Presentation by Mr. Robbins, Neighborhood Improvement Manager.

Public Comments:

Victor C ao, S enior Vice President of the California Apartment Association, spoke in opposition of the ordinance, and spoke on privacy concerns pertaining to the tenant’s information.

Christian Lopez, Resilience O range County, spoke in support of tracking all evictions, including At Fault evictions.

Jeff Butcher, Costa Mesa, spoke in opposition to the ordinance.

97 Minutes – Regular Meeting March 17, 2026 Page 8 of 17

Speaker, spoke in support of the ordinance.

Nick Gould, Costa Mesa, spoke in opposition to the ordinance.

Roberto Herrera, Resilience Orange County, spoke in support of the ordinance.

Speaker, spoke in opposition of the ordinance.

Brooke Grey, Costa Mesa, spoke in support of the ordinance.

Speaker, Costa Mesa, spoke in opposition to the ordinance.

David Cordero, Ap artment Association of Orange County , spoke in opposition to the ordinance.

Chip Ahlswede, Apartment Association of Orange County, spoke on the timeline of the eviction process, that the data is available through other agencies, and spoke in opposition to the ordinance.

Speaker, spoke in support of the ordinance.

Speaker, spoke in opposition of the ordinance.

Speaker, Costa Mesa, spoke in support of the ordinance.

Steve Smith, spoke in opposition of the ordinance.

Juano Trejo, spoke in support of the ordinance.

Speaker, spoke in support of the ordinance.

Jose Toscano, spoke in opposition of the ordinance.

Speaker, spoke in support of the ordinance.

MOVED/SECOND: Mayor Stephens/Mayor Pro Tem Chavez
MOTION: Receive and File the report.

SUBSTITUTE MOTION/SECOND: Mayor Pro Tem Chavez/Mayor Stephens SUBSTITUTE MOTION: Gather the public information available from the Courts while still protecting resident’s information, and do not amend the ordinance.

The motion failed by the following roll call vote:

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

Nays: Council Member Buley, Council Member Marr, Council Member Pettis , and Council Member Reynolds.
98 Minutes – Regular Meeting March 17, 2026 Page 9 of 17

Absent: None.

Abstain: None.

Motion failed: 3-4

ORIGINAL MOTION/SECOND: Mayor Stephens/ Mayor Pro Tem Chavez ORIGINAL MOTION: Receive and File the report.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Pettis , Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: Council Member Marr and Council Member Reynolds.

Absent: None.

Abstain: None.

Motion carried: 5-2

ACTION:

City Council received and filed the report.

NEW BUSINESS:

1. REQUEST FOR CITY COUNCIL DIRECTION REGARDING THE POTENTIAL

IMPLEMENTATION OF A CITYWIDE RENTAL REGISTRY PROGRAM AND ESTABLISHMENT OF A NETWORK FOR RENTERS’ SOLUTIONS

Presentation by Mr. Robbins, Neighborhood Improvement Manager.

Public Comments:

Victor Cao, California Apartment Association, spoke on rent control , fiscal considerations, and spoke in opposition to the item.

Speaker, spoke on fiscal considerations , and to focus on policies to bring more development, and spoke in opposition to the item.

Jeff Butcher, Costa Mesa, spoke in opposition to the item.

Christian Lopez, spoke in support of a rental registry.

Speaker, spoke in opposition to the item and spoke on rent control.

Speaker, student at Estancia High School, spoke in support of a rental registry.

Speaker, spoke in opposition of the item.

Speaker, spoke in support of a rental registry.

Benjamin Kelly, Manufactured Housing Educational Trust, spoke in opposition of the item.

Speaker, spoke in support of a rental registry.
99 Minutes – Regular Meeting March 17, 2026 Page 10 of 17

Chip Ahlswede, Apartment Association of Orange County, spoke on a City of Santa Ana lawsuit, that the data is available through other agencies, and spoke in opposition to the item.

Speaker, spoke in support of a rental registry.

Speaker, spoke in opposition to the item.

Brooke Grey, Costa Mesa, spoke in support of a rental registry.

David Cordero, Apartment Association of O range County , spoke on privacy concerns pertaining to the tenants information, and spoke in opposition to the item.

Speaker, spoke on Palo Alto’s program and spoke in support of a rental registry.

Speaker, spoke in opposition to the item.

Speaker, spoke in support of a rental registry.

Angely Andrade Vallarta, spoke in support of a rental registry.

Speaker, spoke on fiscal consideratons, and in opposition to the item.

Casey, spoke in support of a rental registry.

Speaker, spoke in support of a rental registry.

MOVED/SECOND: Mayor Stephens/Council Member Buley
MOTION: Receive and File the report.

SUBSTITUTE MOTION/SECOND: Council Member Marr/Council Member Reynolds SUBSTITUTE MOTION: Direct staff to bring back financial and staffing information on establishing a Network for Renters’ Solutions.

The motion carried by the following roll call vote:

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

Nays: Council Member Buley and Council Member Pettis.

Absent: None.

Abstain: None.

Motion carried: 5-2

ACTION:

City Council provided direction to staff to bring forth information on establishing a Network for Renters’ Solutions.

City Council recessed into a break at 10:37 p.m.

City Council reconvened at 10:48 p.m.
100

Minutes – Regular Meeting March 17, 2026 Page 11 of 17

PUBLIC HEARINGS:

3. ADOPTION OF A RESOLUTION TO AMEND THE SIXTH CYCLE HOUSING ELEMENT (2021 -2026) OF THE CITY OF COSTA MESA’S GENERAL PLAN (PCTY-26-0001) IN CONJUNCTION WITH THE HOUSING ELEMENT SITES REZONING (PCTY -25-0008 AND PSPA- 26-0001) AND FINDING THE PROJECT

EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT

Presentation by Ms. Halligan, Senior Planner.

Public Comments:

Justin McCusker, CJ Segerstrom and Sons, shared gratitude for the strong partnership with the City.

Jennifer Lynch, representing Anduril Industries Inc., requested to remove the Anduril Industries property located at 3333 Susan St. from the inventory list.

Cynthia McDonald, Costa Mesa, requested to delay the public hearing and requested additional notification.

Kathy Esfahani, Costa Mesa Affordable Housing Coalition, spoke on the need for housing and spoke in support of including 3333 Susan St. on the inventory list.

Patty Turrell, representing the Costa Mesa Women’s Club, requested the club house be removed from the inventory list.

MOVED/SECOND: Mayor Pro Tem Chavez/Mayor Stephens
MOTION: Approve staff recommendation.

The Public Hearing was reopened.

Jennifer Lynch, representing Anduril Industries, Inc. repeated the request to remove the Anduril Industries property located at 3333 Susan St. from the Inventory list, and that neither Anduril Industries nor the property owner received timely notification.

Speaker, representing CJ Segerstrom and Sons, spoke on the unintended consequences of a recent court ruling.

MOVED/SECOND: Mayor Pro Tem Chavez/Mayor Stephens
MOTION: Approve staff recommendation.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.
101

Minutes – Regular Meeting March 17, 2026 Page 12 of 17

Abstain: None.

Motion carried: 7-0

ACTION:

City Council adopted Resolution No. 2026-11 to adopt the amendments to the Housing Element of the City’s General Plan to add two Housing Element Opportunity Sites and remove 17 Housing Element Opportunity Sites from Appendix B ; and determining the amendments are exempt from review under the California Environmental Quality Act.

4. A ZONING CODE AMENDMENT TO REZONE SIXTH CYCLE (2021 -2029) HOUSING

ELEMENT SITES AND IMPLEMENT HOUSING ELEMENT PROGRAMS TO COMPLY WITH STATE LAW, A CONFORMING CODE AMENDMENT TO TI TLE 9 OF THE

MUNICIPAL CODE, A RESOLUTION TO AMEND THE NORTH COSTA MESA

SPECIFIC PLAN FOR CONSISTENCY WITH THE HOUSING ELEMENT SITES

REZONING, AND DISCUSSION OF A RESOLUTION FOR THE FUTURE

CONSIDERATION OF ADOPTION OF FEES ASSOCIATED WITH NEW PROCESSES - PCTY-25-0008 AND PSPA-26-0001

Presentation by Ms. Halligan, Senior Planner.

Public Comments:

David Martinez, Costa Mesa, spoke on development of housing and walkability, removing the minimum parking requirements, spoke on AB 2097, supports reducing setbacks to 5 ft ., allowing open space in front of buildings , and supports recommendations on open space standards.

Jennifer Lynch, representing Anduril Industries, Inc. , request ed the property at 3333 Susan St. be removed as soon as possible from the inventory list.

MOVED/SECOND: Council Member Gameros/Mayor Stephens
MOTION: Continue the meeting past midnight.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

Cynthia McDonald, Costa Mesa, spoke on transparency, the Brown Act, and removing the property located at 3333 Susan St. from the inventory list.

Richard Huffman, Costa Mesa, spoke on the additional properties that requested to be removed from the opportunity sites and spoke on traffic and parks requirements.

102

Minutes – Regular Meeting March 17, 2026 Page 13 of 17

MOVED/SECOND: Council Member Reynolds/Mayor Pro Tem Chavez MOTION: Approve staff recommendation with the following amendments:
• Modified the open space standards to allow some usable common residential open space to be substituted by publicly accessible open space and for some private open space to be substituted by usable common residential and/or publicly accessible open space.
•Modified to remove minimum residential parking requirements. •Along with the additions from the supplement al memo (dated 3/17/2026) insert the exception language and adopt the revised zoning maps and maps for the North Costa Mesa Specific Plan.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

ACTION:

1. City Council f ound that the following actions are statutorily exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085(a) (Senate Bill 131) and CEQA Guidelines Section 15061(b)(3); and

2. City Council gave first reading to Ordinance No. 2026- 03 to amend Title 13 of the Costa Mesa Municipal Code (Planning, Zoning, and Development) to rezone Sixt h Cycle (2021-2029) Housing Element sites and implement specific Housing Element programs, and find that the project is statutorily exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085(a) (Senate Bill 131) (Attachment 1); and

3. City Council gave first reading to Ordinance No. 2026- 04 to amend Title 9 of the Costa Mesa Municipal Code (Licenses and Business Regulations) Article 23 for consistency with amendments to Chapter XVI of Title 13 (Planning, Zoning, and Development); and

4. City Council adopt ed Resolution No. 2026 -12 to amend the North Costa Mesa Specific Plan for consistency with the application of the Mixed- Use Overlay District on Housing Element sites and f ound that the project is statutorily exempt from the provisions of CEQA pursuant to Public Resources Code Section 21080.085(a) (SB 131); and

•Modified the open space standards to allow some usable common residential open space to be substituted by publicly accessible open space and for some private open space to be substituted by usable common residential and/or publicly accessible open space.
• Modified to remove the minimum residential parking requirements. 103

Minutes – Regular Meeting March 17, 2026 Page 14 of 17

• Along with the additions from the supplement al memo (dated 3/17/2026) insert the exception language and adopt the revised zoning maps and maps for the North Costa Mesa Specific Plan.

MOVED/SECOND: Council Member Marr/Mayor Stephens
MOTION: Directed staff to bring back the resolution establishing fees for new development review processes for housing projects at the April 7, 2026 meeting.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

ACTION:

The City Council reviewed and provided input on draft Resolution No. 2026- 13, which establishes fees for new development review processes for housing projects, and will consider the resolution for adoption on April 7, 2026.

OLD BUSINESS: NONE.

NEW BUSINESS:

4. APPROVE A TOTAL FUNDING COMMITMENT OF $1,500,000 OF HOME

INVESTMENT PARTNERSHIP FUNDS TO JAMBOREE HOUSING CORPORATION

FOR THE DEVELOPMENT OF THE COSTA MESA SENIOR PROJECT AND TO

AMERICAN FAMILY HOUSING FOR AVON RIVER APARTMENTS LOCATED AT 1400 BRISTOL AVENUE IN COSTA MESA

Presentation by Ms. Tai, Economic and Development Services Director.

Public Comments:

Jeff Butcher, spoke in support of the item.

Marc Vukcevich spoke in support of the item.

Kathy Esfahani spoke in support of the item.

Andi Lau, American Family Housing, spoke in support of the item.

MOVED/SECOND: Mayor Pro Tem Chavez
MOTION: Approve staff recommendation.

Motion dies for lack of a second.

104

Minutes – Regular Meeting March 17, 2026 Page 15 of 17

MOTION/SECOND: Council Member Marr/Mayor Stephens
MOTION: Allocate $1.15 million to Jamboree Housing Corporation and allocate $350,000 to American Family Housing and set the interest rate for both loans at 3%.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

ACTION:

1. Approved the allocation of $1. 15 million to Jamboree Housing Corporation for the development of the Costa Mesa Senior project from HOME Investment Partnerships Program funds (HOME) contingent upon the completion of a National Environmental Protection Act (NEPA) environmental review and HOME Subsidy Layering Review.

2. Approved the allocation of $3 50,000 to American Family Housing towards the construction of the Avon River Apartments, contingent upon the completion of a NEPA environmental review and HOME Subsidy Layering Review.

3. Authorized the City M anager to execute funding commitment letters with Jamboree Housing Corporation and American Family Housing in affordable housing funds for development of the above-mentioned projects.

4. Authorized revenue and expense appropriations, respectively, each in the amounts above-mentioned projects.

5. Set the interest rate for both loans at 3%.

5. JAMBOREE HOUSING CORPORATION’S REQUEST FOR ADDITIONAL FUNDS

FOR THE DEVELOPMENT OF THE COSTA MESA SENIOR PROJECT

Presentation by Ms. Jakher, Assistant to the City Manager.

Public Comments:

Elizabeth Hansburg, Housing and Policy Advocate, spoke in support of the item.

Cynthia McDonald requested the item be postponed.

Kathy Esfahani spoke in support of the item.

MOVED/SECOND: Council Member Marr/Mayor Pro Tem Chavez
MOTION: Allocate $2.1 million to Jamboree, funding only from the City’s Housing Trust Fund, require that Jamboree give Costa Mesa residents preference to the non-voucher 105

Minutes – Regular Meeting March 17, 2026 Page 16 of 17

units, the loan term is 55 years at 3% interest, Jamboree to make best efforts to obtain additional funding from other sources before closing, and any additional funding sources will supplant Costa Mesa’s funding prior to closing.

The motion carried by the following roll call vote:

Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0

ACTION:

1. The City Council approved allocating $2.1 million from the City’ s Housing Trust Fund to Jamboree Housing Corporation for the development of the Costa Mesa Senior Project.

2. The Council approved requiring Jamboree to provide Costa Mesa residents with preference for the non-voucher units.

3. The Council approved a loan term of 55 years at 3% interest.

4. The Council approved requiring Jamboree to make best efforts to secure additional funding from other sources before closing. Any additional funding obtained will replace Costa Mesa’s contribution prior to closing.

5. Authorized the City Manager to execute a funding commitment letter with Jamboree Housing Corporation for the amount approved by the City Council for the Costa Mesa Senior Project.

6. Authorized the necessary revenue and expenditure appropriations, and allocation of the funds approved by the City Council for the Costa Mesa Senior Project.

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

ADJOURNMENT – Mayor Stephens adjourned the meeting at 12:55 a.m.

106

Minutes – Regular Meeting March 17, 2026 Page 17 of 17

Minutes adopted on this 21st day of April, 2026.

___________________________
John Stephens, Mayor

ATTEST:

___________________________
Brenda Green, City Clerk
107

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-225 Meeting Date: 4/21/2026
TITLE:

ACCEPTANCE OF THE CITY HALL BASEMENT I.T. OFFICES AND TRAINING ROOM REMODEL PROJECT, CITY PROJECT NO. 24-11
DEPARTMENT: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: PATRICK BAUER, DEPUTY PUBLIC WORKS DIRECTOR, (714) 754-5029
RECOMMENDATION:

Staff recommends the City Council:

1. Accept the work performed by American Construction Company, LLC, dba ACC, 1130 North Kraemer Boulevard, No. 1, Anaheim, California 92806, for the City Hall Basement Information Technology (I.T.) Offices and Training Room Remodel Project, City Project No. 24-11, and authorize the City Clerk to file the Notice of Completion.

2. Authorize the City Manager to release the Labor and Material Bond seven (7) months after the filing date and release the Faithful Performance Bond at the conclusion of the one-year warranty period. The retention has been released per Public Contract Code section 7107(c).

BACKGROUND:

On February 18, 2025, the City Council awarded a Public Works Agreement (PWA) in the amount of $490,000 to American Construction Company, LLC, dba ACC for the construction of the City Hall Basement I.T. Offices and Training Room Remodel Project, City Project No. 24-11.

There is an ongoing need for a dedicated, reliable facility to provide training and education for City staff across all departments. Previously, training classes were accommodated in the Council Chambers, individual conference rooms, personal offices, offsite facilities, or through online platforms. All of these options were often limited and did not consistently support the City’scontinuing requirements for legally mandated, time-sensitive, operational training, and instances where training in group setting is more practical and cost-effective. In order to address the need for a dedicated training space, the City Hall basement storage areas were transformed into a permanent, purpose- built training facility available to all City staff.

In addition, the project also included the construction of three (3) adjacent offices for the I.T.

Department to accommodate staffing growth identified and authorized in the City’s5-Year Information Technology Strategic Plan.

Page 1 of 4 ends

108
File #: 26-225 Meeting Date: 4/21/2026
The scope of work consisted of demolition and remodeling of the City Hall basement storage areas to construct the new training room and offices. Construction included new walls and partitions; mechanical heating, ventilation, and air conditioning (HVAC); electrical; lighting; low-voltage and data; fire alarms; painting; and flooring & carpeting improvements, along with installation of an advanced audio-visual (AV) system to support classroom-style training. Computer network equipment and cabling, office and classroom furniture, and related finishes and fixtures were provided and installed in accordance with the project plans and specifications.

Construction is now complete, and the project is ready to be accepted by the City Council.

ANALYSIS:

The work required by the contract documents was completed to the satisfaction of the Deputy Public Works Director and the City Engineer on January 22, 2026. The final contract cost amounted to $482,719.25. A report of the final costs is included as Attachment 1.

A summary of the costs is as follows:

Initial Contract Cost: $ 490,000.00
Final Quantity Adjustments: ($ 7,280.75)
Final Contract Cost: $ 482,719.25
The final contract cost reflects a 1.50% decrease to the original contract as a result of final payment and quantity adjustments.

As of this date, there are no Stop Notices filed against the monies due to American Construction Company, LLC.

Therefore, staff recommends that the City Council accept this project as complete and authorize the City Clerk to file the Notice of Completion.

BEFORE

Page 2 of 4 ends

109
File #: 26-225 Meeting Date: 4/21/2026
AFTER
ALTERNATIVES:

This item is administrative in nature.

FISCAL REVIEW:

The project was funded by the Capital Improvement Fund (Fund 401). The remaining project balance, including contingency, will be returned to fund balance after the purchase order is closed.

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

This project worked towards achieving the following City Council goals:
· Strengthen the Public’s Safety and Improve the Quality of Life. · Maintain and Enhance the City’s Infrastructure, Facilities, Equipment, and Technology.

Page 3 of 4 ends

110
File #: 26-225 Meeting Date: 4/21/2026
CONCLUSION:

Staff recommends the City Council:

1. Accept the work performed by American Construction Company, LLC, dba ACC, 1130 North Kraemer Boulevard, No. 1, Anaheim, California 92806, for the City Hall Basement I.T. Offices and Training Room Remodel Project, City Project No. 24-11, and authorize the City Clerk to file the Notice of Completion.

2. Authorize the City Manager to release the Labor and Material Bond seven (7) months after the filing date and release the Faithful Performance Bond at the conclusion of the one-year warranty period. The retention has been released per Public Contract Code section 7107(c).

Page 4 of 4 ends

111
ATTACHMENT 1
Contractor: American Construction Company, LLC, DBA ACC 1130 N. Kraemer Blvd, #1, Anaheim CA 92806
Project: COSTA MESA CITY HALL IT OFFICES AND TRAINING ROOM BASEMENT REMODEL CITY PROJECT 24-11
ITEM

NO DESCRIPTION PERCENTAGE

OF CONTRACT
ACTUAL
COST(s) CONTRACT ESTIMATE

PROJECT COSTS
1 GENERAL REQUIREMENTS 16.0% $75,460.00 $75,460.00 $139,414.00 2 DEMOLITION & DISPOSAL 6.0% $30,238.00 $30,238.00 INCLUDED 3 WALLS 9.0% $43,852.00 $43,852.00 $57,440.00
4 FINISHES 6.0% $27,928.00 $27,928.00 $47,000.00
5 CEILING 5.0% $23,241.00 $23,241.00 INCLUDED
6 FRAMES/DOORS 4.0% $16,900.00 $16,900.00 $10,000.00
7 FURNITURE & MILLWORK 17.0% $81,271.00 $81,271.00 $53,000.00 8 FLOORING 2.0% $9,796.00 $9,796.00 INCLUDED
9 AUDIO/VIDEO 1.0% $2,965.00 $2,965.00 INCLUDED
10 FIRE 3.0% $16,806.00 $16,806.00 INCLUDED
11 HVAC 10.0% $48,780.00 $48,780.00 $61,500.00
12 ELECTRICAL 10.0% $51,931.00 $51,931.00 $84,260.00
13 LOW VOLTAGE/DATA 2.0% $10,662.00 $10,662.00 INCLUDED 14 ACCESS CONTROLS 2.0% $9,148.00 $9,148.00 INCLUDED
15 CLOSE OUT 2.0% $11,022.00 $11,022.00 INCLUDED
16 ALLOWANCE 5.0% $22,719.25 $30,000.00 $28,212.00
TOTAL PROJECT COST: 482,719.25$
TOTAL CONTRACT: $490,000.00
TOTAL ESTIMATE: $480,826.00
112

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-231 Meeting Date: 4/21/2026
TITLE:

APPROPRIATION OF FUNDS FOR THE REHABILITATION OF RENTAL UNITS AT THE JAMES/18TH STREET APARTMENTS
DEPARTMENT: CITY MANAGER
PRESENTED BY: NATE ROBBINS, NEIGHBORHOOD IMPROVEMENT MANAGER CONTACT INFORMATION: NATE ROBBINS, 714-754-5274
RECOMMENDATION:

BACKGROUND:

On April 2, 2024, the City Council provided direction for the creation of the Housing Trust Fund to be used for the development of affordable housing. The FY 2024-25 Adopted Budget included a transfer of approximately $2.47 million from American Rescue Plan Act (ARPA) funds into the Housing Trust Fund and the transfer was completed before the deadline of December 31, 2024. Staff is recommending a reallocation of the ARPA dollars in the Housing Trust Fund to the Costa Mesa Housing Authority James/18th Street Property Fund to rehabilitate vacant rental housing units located at the James/18th Street apartments in Costa Mesa.

ANALYSIS:

Housing Trust Fund
The Housing Trust Fund was created to address housing affordability within the City of Costa Mesa and has a current fund balance of approximately $2.35 million, of which $2.1 million has been pledged to support the Jamboree Senior Center Housing project. Staff is requesting an appropriation and transfer of $200,000 from the Housing Trust Fund to the Costa Mesa Housing Authority James/18th St Property Fund for the rehabilitation of low-income rental units at the James/18th Street apartments.

James/ 18th Street Apartments
The James/18th Street apartments are a combined 30 rental units located within eight (8) separate buildings that are owned and operated by the City of Costa Mesa Housing Authority (CMHA). All 30 rental units are deed-restricted affordable units and must therefore be leased to low-income households at an affordable rent. The CMHA acquired the properties in FY 2015-16 and has since managed the units as affordable rental housing. Currently, four (4) of the units are vacant and need

Page 1 of 2 ends

113
File #: 26-231 Meeting Date: 4/21/2026
managed the units as affordable rental housing. Currently, four (4) of the units are vacant and need renovations before they can be leased. The proposed scope of work is estimated at $34,000 to $37,000 per unit and includes the following improvements: kitchen countertops and sinks, all-new doors throughout, new stove and hood, fresh paint throughout, new bathtubs, and electrical upgrades. The $200,000 will be utilized to complete the rehabilitation of the remaining four (4) units, which will then be leased to low-income households.

In 2025, the City received approximately $177,000 in rental revenue from the James/18th Street apartments. Historically, these funds have been used to make minor repairs to the existing units, as well as to develop new affordable housing units. Vacancies reduce revenue, hindering the City’s ability to maintain existing units and develop additional affordable units.

ALTERNATIVES:

The City Council can choose to deny staff’srecommendation, which will delay the much needed improvements in order to lease the units, resulting in affordable rental units remaining vacant.

FISCAL REVIEW:

Funding for the budget reallocation to rehabilitate the CMHA James/18th St property in the amount of $200,000 is available in the Housing Trust Fund (Fund 226), which has a current available fund balance of approximately $250,000.

LEGAL REVIEW:

The City Attorney has reviewed this report and approves it as to form.

CITY COUNCIL GOALS AND PRIORITIES:

Diversify, stabilize and increase housing to reflect community needs.

CONCLUSION:

Appropriate and transfer $200,000 from the Housing Trust Fund (Fund 226) to the Costa Mesa Housing Authority James/18th Street Property Fund (Fund 223) to rehabilitate the James/18th Street apartments.

Page 2 of 2 ends

114

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-218 Meeting Date: 4/21/2026
TITLE:

TWO YEAR EXTENSION OF THE PROFESSIONAL SERVICES AGREEMENT WITH WITTMAN ENTERPRISES, LLC FOR AMBULANCE BILLING AND COST RECOVERY SERVICES RFP 18-03 DEPARTMENT: COSTA MESA FIRE & RESCUE DEPARTMENT
PRESENTED BY: JASON PYLE, INTERIM FIRE CHIEF
CONTACT INFORMATION: JASON PYLE, INTERIM FIRE CHIEF (714) 754-5155 RECOMMENDATION:

Staff recommends the City Council:

1. Approve Amendment Number Three to extend the term of the Professional Services Agreement for Ambulance Billing and Cost Recovery Services between Wittman Enterprises, LLC and the City of Costa Mesa for two (2) additional years to July 31, 2028, and to increase the per call cost by $1.00 from $23.00 to $24.00. (Attachment 1).

BACKGROUND:

On August 7, 2018, City Council approved the Professional Services Agreement for Ambulance Billing and Cost Recovery Services between Wittman Enterprises, LLC and the City of Costa Mesa. (Attachment 2). This proposed third amendment would be the last extension authorized under the Agreement.

From the commencement of the Agreement until the present time, Wittman has met and fulfilled all contractual obligations and requirements. Based on its performance over the past six years, Wittman has maintained a well-managed organization staffed by professional personnel who are extremely knowledgeable and competent in the field of cost recovery.

ANALYSIS:

The City extended the Agreement in July of 2023 for one year (Amendment 1 - Attachment 3) to July 31, 2024, to allow for emergency ambulance billing services to continue. Section 4.2 of the Agreement allows the City to terminate the Agreement at any time with written notice to Wittman if it is later determined that services will not be needed for the entire time period of the extension. The City extended the Agreement in July of 2024 for a period of two years through July 31, 2026 (Attachment 5) to allow for emergency ambulance billing services to continue. Section 4.2 of the Agreement allows the City to terminate the Agreement at any time with written notice to Wittman if it

Page 1 of 3 ends

115
File #: 26-218 Meeting Date: 4/21/2026
Agreement allows the City to terminate the Agreement at any time with written notice to Wittman if it is later determined that services will not be needed for the entire time period of the extension.

The proposed Amendment Number Three utilizes the fourth and fifth of the five one-year extensions of the Agreement and extends the term of the Agreement to July 31, 2028, per Section 4.0.

1. Cost - Wittman’sbest price option. Wittman continues to provide the cost option for either “Price Per Call” or “Percent of Net.” Based on our current and future call volume and collection rates, the better of the two formulas is “PricePer Call”and it is advantageous for the City.
a. Amendment No. Three increases the price per call option from $23.00 to $24.00.

The original Terms and Conditions of the Agreement, “Sections 2.0 Compensation and Billing,” remain unchanged except for the $1.00 increase to the “Price per Call” cost.

2. Interagency Operations - Wittman is the current Ambulance Billing Service Provider for the City of Newport Beach Fire Department and the City of Huntington Beach Fire Department.

The majority of our mutual aid requests are from the cities of Newport Beach and Huntington Beach. As all three Fire Departments operate their own Ambulance Service, there is greater efficiency in having the same billing agent process all mutual aid ambulance billing requests.

ALTERNATIVES:

Since Wittman’s services have satisfied and exceeded the obligations, requirements, and expectations of the original Agreement, no other alternatives were considered.

FISCAL REVIEW:

The increase of $1.00 in the “Price Per Call” option from $23.00 to $24.00 is estimated to have an $8,000 annual impact. Due to increased efficiencies in data acquisition and field personnel experience in program input, the total annual estimated cost of $192,000 will be lower than the not-to -exceed amount of $240,000.00.”The increased cost is fully offset by revenues from paramedic fees collected in the General Fund (Fund 101).

LEGAL REVIEW:

The City Attorney’soffice has reviewed this report and Amendment Number Three and approves them both as to form.

CITY COUNCIL GOALS AND PRIORITIES:

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

Page 2 of 3 ends

116
File #: 26-218 Meeting Date: 4/21/2026
CONCLUSION:

Staff recommends the City Council approve Amendment Number Three to the Professional Services Agreement for Ambulance Billing and Cost Recovery Services between Wittman Enterprises, LLC and the City of Costa Mesa and to authorize the City Manager to execute the Amendment. The annual cost of services shall not exceed $240,000.00.

Page 3 of 3 ends

117
ATTACHMENT 1
Wittman Enterprises PSA Amendment No. Three
1 AMENDMENT NUMBER THREE

TO PROFESSIONAL SERVICES AGREEMENT
WITH

WITTMAN ENTERPRISES LLC

This Amendment Number Three (“Amendment”) is made and entered into this 21 st day of April 2026, (“Effective Date”) by and between the CITY OF COSTA MESA, a municipal corporation (“City”) and WITTMAN ENTERPRISES, LLC, a California limited liability company (“Consultant”)

RECITALS

WHEREAS, City and Consultant entered into an agreement on August 1, 2018, for Consultant to provide Ambulance Billing Services (the “Agreement”); and WHEREAS, Section 4.1 of the Agreement provides for a term of ﬁve (5) years, with the option to extend the Agreement for ﬁve (5) additional one (1) year periods; and WHEREAS, City and Consultant entered into Amendment Number One to the Agreement on July 18, 2023, to extend the term for one (1) year, through July 31, 2024; and WHEREAS, City and Consultant entered into Amendment Number Two to the Agreement on July 18, 2024, to extend the term for two (2) years, through July 31, 2026; and WHEREAS, City and Consultant desire to extend the term of the Agreement for two (2) additional one (1) year extensions; and
WHEREAS, City and Consultant also desire to amend the fee schedule for the term of this two-year extension
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

AMENDMENT

1. The term of the Agreement shall be extended through July 31, 2028.

2. The price “Price Per Call” option will increase from $23.00 to $24.00 per call (ePCR Ticket).

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

4. All other terms, conditions and provisions of the Agreement shall remain in full force and effect.
118
ATTACHMENT 1
Wittman Enterprises PSA Amendment No. Three
2 5. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

6. Except as amended by this Amendment to the Agreement, each and every term, covenant and condition thereof shall remain in full force and effect.

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

CONSULTANT

________________________________ Date: __________________________ Signature

________________________________
Corinne Wittman-Wong, CEO

CITY OF COSTA MESA

________________________________ Date: __________________________ Cecilia Gallardo-Daly
City Manager

ATTEST:

________________________________
Brenda Green
City Clerk

APPROVED AS TO FORM:

________________________________ Date: __________________________ Kimberly Hall Barlow
City Attorney
119
ATTACHMENT 1
Wittman Enterprises PSA Amendment No. Three
3 APPROVED AS TO INSURANCE:

________________________________ Date: __________________________ Ruth Wang
Risk Management

APPROVED AS TO CONTENT:

________________________________ Date: __________________________ Tim Vasin, Acting Assistant Chief
Project Manager

DEPARTMENTAL APPROVAL:

________________________________ Date: __________________________ Jason Pyle
Interim Fire Chief

APPROVED AS TO PURCHASING:

________________________________ Date: _________________________

120
AMENDMENT NO THREE (3) TO AGREEMENT BETWEEN

THE CITY OF COSTA MESA AND WITTMAN ENTERPRISES LLC
THIS A
MENDMENT TO THE CONSULTING SERVICES AGREEMENT is made at Costa Mesa California as of February 1, 2026, between CITY OF COSTA MESA (“City”) and WITTMAN ENTERPRISES LLC (“Contractor”). The City and the Contractor are collectively referred to herein as the “Parties” .

RECITA
LS
A. The Pa
rties entered into that certain Agreement for Consulting Services between the City of Costa Mesa and Wittman Enterprises LLC with an effective date of August 1, 2018 (“Agreement”) by which City retained Contractor to provide billing and collection services for the City’s ambulance services.

B. The Parties desire to extend the term of the Agreement for two (2) additional years.

C. The Parties desire to amend the Contractor fee schedule for this period.

AMENDM
ENT

1. The Pa
rties hereby amend the Agreement to extend the term for two years, commencing February 1, 2026, and ending January 31, 2028.

2. The Parties hereby amend the Agreement to change the Contractor fee schedule for the period to:

Contra
ct Years 1-2 $24 per imported incident (ePCR ticket)

3. Exce
pt as Amended by this Amendment to the Agreement, each and every term, covenant and condition thereof shall remain in full force and effect.

IN WIT
NESS WHEREOF , the City has caused this Amendment to be signed and executed on its behalf by its Fire Chief, and the Contractor has signed and executed this Amendment by its Chief Executive Officer (CEO)

CITY OF

COSTA MESA WITTMAN ENTERPRISES LLC
By _______________________________
By _____________________________
Jason Pyle, Fire Chief Corinne Wittman-Wong, CEO
Attachment 2
121

AMENDMENT NUMBER ONE

TO PROFESSIONAL SERVICES AGREEMENT WITH

WITTMAN ENTERPRISES, LLC
This Amendment Number One ("Amendment") is made and entered into this 18th day of July 2023 ("Effective Date") by and between the CITY OF COSTA MESA, a municipal corporation ("City") and WITTMAN ENTERPRISES, LLC, a California limited liability company ("Consultant").

WHEREAS, City and Consultant entered into an agreement on August 1, 2018 for Consultant to provide Ambulance Billing Services (the "Agreement"); and WHEREAS, Section 4.1· of the Agreement provides for a term of five (5) years, with the option to extend the Agreement for five (5) additional one (1) year periods; and WHEREAS, City and Consultant desire to extend the term for one (1) year, through July 31, 2024.

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

1. The term of the Agreement shall be extended through July 31, 2024.

2. All terms not defined herein shall have the same meaning and use as set forth in the Agreement.

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

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

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

CONSULTANT
~~~cf/ Signature
Date: _ '7--_,,_/oZ--=-S-::-'-/4--=-;3 ___ _
{;or/r7 /'/(, Ju/l[iMau -l~j , ~c)
Name and Title
1 Wittman Enterprises PSA Amendment No. One
1 Attachment 3 122

CITY OF COSTA MESA
Lori Ann Farrell Harrison
City Manager
ATTEST:
':br.J2K1&cL ~ 'a I';};). l ~3
Brenda Gree
City Clerk
APPROVED AS TO FORM:

Ki~?::w ~
City Attorney
APPROVED AS TO INSURANCE:

Risk Management
APPROVED AS TO CONTENT:

I
Project Manag
DEPARTMENTAL APPROVAL:

Date: a// 6 / ~ o;t.3
Date: 8 /JoJCP; , ,
Date: flrl ~ '?
Date: ____,8"-'-1.,__./ S.-:;__' /-+--,~ i'--:,,,L-J- ~ Y::.......,;..f _ Wittman Enterprises PSA Amendment No. One
2 Attachment 3 123
APPROVED AS TO PURCHASING:

Ca~
Carol Molina
Finance Director
Wittman Enterprises PSA Amendment No. One
3 Attachment 3 124
Attachment 4
125
Attachment 4
126
Attachment 4
127
Attachment 4
128
Attachment 4
129
Attachment 4
130
Attachment 4
131
Attachment 4
132
Attachment 4
133
Attachment 4
134
Attachment 4
135
Attachment 4
136
Attachment 4
137
Attachment 4
138
Attachment 4
139
Attachment 4
140
Attachment 4
141
Attachment 4
142
Attachment 4
143
Attachment 4
144
Attachment 4
145

AMENDMENT NUMBER TWO

TO PROFESSIONAL SERVICES AGREEMENT WITH

WITTMAN ENTERPRISES, LLC
This Amendment Number Two ("Amendment ") is made and entered into this 4th day of June 2024 ("Effective Date") by and between the CITY OF COSTA MESA, a municipal corporation ("City") and WITTMAN ENTERPRISES, LLC, a California limited liability company ("Consultant").

WHEREAS, City and Consultant entered into an agreement on August 1, 2018 for Consultant to provide Ambulance Billing Services (the "Agreement"); and WHEREAS, Section 4.1 of the Agreement provides for a term of five (5) years , with the option to extend the Agreement for five ( 5) additional one ( 1) year periods; and WHEREAS , City and Consultant entered into Amendment Number One to the Agreement on July 18, 2024 to extend the term for one (1) year, through July 31, 2024; and
WHEREAS , City and Consultant desire to extend the term of the Agreement for two (2) additional one (1) year extensions .

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

1. The term of the Agreement shall be extended through July 31 , 2026.

2. Effective June 4 2024, the fee set forth in Exhibit B, Section 7, Cost Proposal, Option #2, will increase from $22.00 to $23.00 per imported incident (ePCR ticket).

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

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

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

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

CONSULTANT
Date:
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
Wittman Enterprises PSA Amendment No. Two
1 Attachment 5
146

CITY OF COSTA MESA
Lori Ann Farrell Harrison
City Manager
ATTEST:
½!~.~ 1/aj-znvt
City Clerk
APPROVED AS TO FORM:
1±:'i~~[:,,w
City Attorney
Ja Fire Chief
OJeC
Finance Director
~
Date: 7 I IA' / ).e:. ) ':i
Date: _ ]-'-+/-+-/ l,.-+-'/ ;i'---lf ___ _
Date: _1_/_f O_/i__,_f ____ _
Date: 7 /J 6 /Y-j ~ 1
Date: _ 7]___._- -+-/ '---'-1 0+-/0Qo_____:__:.,'-+7' __ _ Wittman Enterprises PSA Amendment No. Two
2 Attachment 5
147

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-229 Meeting Date: 4/21/2026
TITLE:

CONTINUATION REQUEST OF AN APPEAL OF THE PLANNING COMMISSION’SDECISION TO UPHOLD THE ECONOMIC AND DEVELOPMENT SERVICES DIRECTOR’SDECISION TO DENY

A REASONABLE ACCOMMODATION REQUEST TO DEVIATE FROM CERTAIN

REQUIREMENTS OF THE ZONING CODE TO OPERATE A SOBER LIVING HOME OPERATED BY THE OHIO HOUSE AT 115 EAST WILSON STREET, UNITS A THROUGH E DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES

DEPARTMENT/PLANNING DIVISION
PRESENTED BY: VICTOR MENDEZ, SENIOR PLANNER
CONTACT INFORMATION: VICTOR MENDEZ, SENIOR PLANNER (714) 754-5276 RECOMMENDATION:

Staff recommends the City Council continue the open public hearing item to the June 16, 2026, meeting, pursuant to applicant’s request.

BACKGROUND:

The appeal was agendized for the December 2, 2025, City Council meeting. Prior to the meeting, but after the public hearing was noticed, the applicant submitted a request to continue the item to the February 3, 2026, City Council Meeting. The City Council opened the public hearing and voted (7-0) to continue the item.

The item was then agenized on the February 3, 2026 City Council Meeting. Prior to the meeting, but before the agenda was published, staff requested to continue the item to the April 21, 2026, City Council Meeting. The City Council voted (6-0-1) to continue the open public hearing item to April 21, 2026 (Council Member Buley absent).

Before the agenda was published, the applicant requested to continue the item to the June 16, 2026, City Council Meeting to gather additional information.

ANALYSIS:

Staff requests that the public hearing be continued to a date certain to the June 16, 2026, City Council Meeting. Staff will present the item at the June 16, 2026, Meeting.

Page 1 of 2 ends

148
File #: 26-229 Meeting Date: 4/21/2026
ALTERNATIVES:

There are no recommended alternatives.

FISCAL REVIEW:

The fiscal review will be included as part of the June 16, 2026, report.

LEGAL REVIEW:

The legal review will be included as part of the June 16, 2026, report.

CITY COUNCIL GOALS AND PRIORITIES:

The priorities will be included as part of the June 16, 2026, report.

CONCLUSION:

The item will be presented at the June 16, 2026, City Council meeting.

Page 2 of 2 ends

149
4/1/26, 11:46AM Fwd: Ohio House - Coordinating the CRD mediation and CC appeal hearing dates - MENDEZ, VICTOR - Outlook @ Outlook
Fwd: Ohio House - Coordinating the CRD mediation and CC appeal hearing dates From Kimberly Hall Barlow <[email protected]>
Date Tue 3/31/2026 10:49 AM
To TAI, CARRIE <[email protected]>; MENDEZ, VICTOR <[email protected]>; MCGILL, ANNA <[email protected]>; Tarquin Preziosi <[email protected]> Cc GREEN, BRENDA <[email protected]>
Here is a new hearing date for Ohio House RA appeal.

Sent from my iPhone
Begin forwarded message:

From: Christopher Brancart <[email protected]>
Date: March 31, 2026 at 9:57:01 AM PDT
To: Kimberly Hall Barlow <[email protected]>
Cc: Christopher Lee <[email protected]>, Tarquin Preziosi <[email protected]> Subject: Re: Ohio House - Coordinatmg the CRD mediation and CC appeal hearing dates
Caution: This is an external email and may be malicious. Please take care when clicking links or opening attachments.

Ms. Barlow,,
Thank you for the reminder. Having checked on availability of all involved, the first, best date is Tuesday, June 16.

On Mon, Mar 30, 2026 at 12:18PM Kimberly Hall Barlow <[email protected]> wrote:

Hi Chris. We need to get our agenda report finalized for the April 21 s' meeting, so we need a date certain to include for the continuation request. about:blank?windowld=SecondaryReadingPane44
ATTACHMENT 1
150

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-162 Meeting Date: 4/21/2026
TITLE:

INTRODUCTION AND FIRST READING OF THE CITY OF COSTA MESA, CALIFORNIA ADDING CHAPTER IV, TRAP-NEUTER-RETURN, TO TITLE 3 OF THE COSTA MESA MUNICIPAL CODE

TO ESTABLISH A TRAP-NEUTER-RETURN PROGRAM FOR COMMUNITY CATS DEPARTMENT: POLICE DEPARTMENT
PRESENTED BY: STEPHANIE A. SELINSKE, LIEUTENANT
CONTACT INFORMATION: STEPHANIE A. SELINSKE, LIEUTENANT
714-754- 5293
RECOMMENDATION:

Staff recommends the City Council introduce for first reading Ordinance No. 2026-XX adding Title 3 Animal Regulations of the Costa Mesa Municipal Code 3-171 to establish and regulate a Trap-Neuter -Return (TNR) program for community cats within the City of Costa Mesa.

BACKGROUND:

The City of Costa Mesa Municipal Code does not allow for any person or organization to Trap-Neuter -Return any community cats within the City of Costa Mesa.

The City of Costa Mesa currently addresses issues involving free-roaming and community cats through existing animal-control regulations and case-by-case responses. Community cats, which are defined as unowned, free-roaming cats that live outdoors and are not readily adoptable, present unique challenges related to animal welfare, shelter intake, and community concerns. Trap-Neuter- Return (TNR) is a nationally recognized animal management model in which community cats are humanely trapped, surgically sterilized, vaccinated (including rabies), ear-tipped for identification, and either returned to their original location or diverted for adoption if and when appropriate. Numerous jurisdictions throughout California and Orange County have adopted forms of TNR ordinances as a humane and effective method to control and gradually reduce the community cat populations in their respective communities. Additionally, TNR also assists with decreasing impacts on local animal shelters and euthanasia rates.

The proposed ordinance (Attachment 1) would establish guidelines for a regulated TNR program within Costa Mesa to ensure that all TNR activities are conducted in a manner consistent with animal welfare and best practices, with City oversight via the Animal Services Unit.

Legalizing TNR and establishing an ordinance in Costa Mesa has been a long-time goal of the City’s Animal Services Committee (ASC) and local animal welfare advocates. The proposed ordinance was created in consultation with the ASC and public comments at multiple ASC meetings over the past six months. At the January 28, 2026, ASC meeting, the committee voted unanimously to support

Page 1 of 3 ends

151
File #: 26-162 Meeting Date: 4/21/2026
the draft ordinance and recommended that the City Council consider its adoption.

ANALYSIS:

The proposed ordinance authorizes and regulates Trap-Neuter-Return activities within the City by establishing a clear framework. It would require registration and pre-approval through the City’s Animal Services Unit. TNR would require sterilization, vaccination (including rabies), and ear-tipping for all returned community cats. The proposed ordinance would establish clear recordkeeping and reporting requirements and provide enforcement mechanisms and corrective measures for public nuisances caused by community cats.

Participation in the TNR program will be authorized to individuals, nonprofit organizations, veterinary clinics, or sponsor agencies that complete a city-issued TNR Registration Form (Attachment 2) and receive pre-approval from the Animal Services Unit. Approval will be valid for one calendar year from date of approval.

Authorized participants will be required to maintain detailed logs for each community cat processed through the program, including trapping location, veterinary services provided, sterilization and vaccination status, ear-tipping confirmation, and release locations. TNR providers will submit a log for each cat colony serviced. These records will be retained by the Animal Services Unit for a minimum of three years. Collected data will allow the City of Costa Mesa to evaluate program effectiveness, track community cat populations, and identify any necessary program modifications.

This proposed ordinance requires humane trapping, rabies vaccinations, and adherence to current veterinary public-health guidelines for all cats returned. Trapped cats will be assessed to determine if they are socialized and adoptable. Cats will also be scanned for microchips, and if a registered owner is identified, they will be contacted as necessary. Any cat that is seriously ill, injured or deemed suitable for adoption will not be returned to the community and will instead be managed in accordance with City Animal Services’protocols. Those cats that qualify for TNR will be surgically sterilized, ear-tipped for identification, and returned to their original location.

The ordinance preserves the City’sauthority to intervene in situations involving public safety threats, suspected rabies, or other dangerous conditions. Public feeding activities that create sanitation issues, property damage, or attract vermin or wildlife remain prohibited.

If a registered TNR provider is found to be in violation of the ordinance the City may take corrective actions including warnings, suspension or revocation of permit and/or citation. Denial or revocation of a TNR permit would be appealable to the City Manager and a final appeal to the City Council if necessary.

This ordinance does not establish a City funded TNR program and should not adversely affect our contracted animal shelter. All TNR activities and veterinary services would be provided by community volunteers, animal advocates, non-profits and sponsor organizations.

ENVIRONMENTAL ANALYSIS:

This ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines, because there is no possibility that the ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs. § 15061(b)(3).) A Notice of Exemption should be filed as authorized by CEQA and the State CEQA

Page 2 of 3 ends

152
File #: 26-162 Meeting Date: 4/21/2026
15061(b)(3).) A Notice of Exemption should be filed as authorized by CEQA and the State CEQA Guidelines.

ALTERNATIVES:

The City Council may introduce the ordinance as proposed; or modify the ordinance and direct staff to return with revisions.

The City Council may also decline to introduce the ordinance and maintain the City’s existing approach to community cat management and continue to prohibit free-roaming cats.

FISCAL REVIEW:

There is no anticipated direct fiscal impact to the City’sGeneral Fund (Fund 101) associated with adoption of this ordinance. The TNR program relies on registered individuals and sponsor organizations to conduct trapping, veterinary services, and recordkeeping. Staff time associated with registration, oversight, and data review is expected to be absorbed within existing Animal Services Unit resources.

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

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

CONCLUSION:

Staff recommends the City Council to introduce for first reading Ordinance No. 2026-XX adding Title 3 Animal Regulations of the Costa Mesa Municipal Code 3-171 to establish and regulate a Trap- Neuter-Return (TNR) program for community cats within the City of Costa Mesa.

Page 3 of 3 ends

153
Ordinance No. 2026-XX Page 1 of 5
ORDINANCE NO. 2026-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA ADDING CHAPTER IV, TRAP-NEUTER-RETURN, TO TITLE 3 OF

THE COSTA MESA MUNICIPAL CODE TO ESTABLISH A TRAP-NEUTER-RETURN

PROGRAM FOR COMMUNITY CATS

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

WHEREAS, the City of Costa Mesa, pursuant to its police power, may enact ordinances to protect the public health, safety, and welfare; and
WHEREAS, the City of Costa Mesa has determined that a process of trapping, surgically sterilizing, vaccinating, ear -tipping, and returning cats to the location where they were initially trapped is an effective and humane method to manage the population of feral and community cats within the City of Costa Mesa; and
WHEREAS, Trap-Neuter-Return programs are a rec ognized animal management practice that reduces shelter intake, decreases euthanasia, and supports public health objectives; and WHEREAS, maintaining records of all Trap-Neuter-Return program activities in the City will assist the City in determining extent of the community cat population, the Trap -Neuter-Return program effectiveness and potential need for any modification to the program; and WHEREAS, the City Council desires to establish a Trap -Neuter-Return program for community cats within the City of Costa Mesa.

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

SECTION 1: Chapter IX . Trap-Neuter-Return, Sections 3-171 through 3-175 of the Costa Mesa Municipal Code is hereby added to read as follows:
3-171 Purpose and Intent
The city council finds that the humane management of free -roaming, unowned, or feral cats through Trap-Neuter-Return programs reduces animal shelter intake, decreases euthanasia, improves public health, and results in more effective and compassionate animal -control outcomes. The purpose of this ordinance is to authorize and regulate Trap-Neuter-Return programs for community cats within the City of Costa Mesa.
3-172 Definitions
Chief of police means the chief of the Costa Mesa Police Department or designee, including, but not limited to the Animal Services Unit.

Attachment 1
154
Ordinance No. 2026-XX Page 2 of 5

Community cat colony or colony means two or more community cats living in one general outdoor location.

Community cat means a free-roaming cat that lives outdoors, is unowned, unsocialized, and not readily adoptable.

Ear-tipping means the removal of the distal tip of a cat’s left ear while under anesthesia to indicate sterilization.

Feral cat means an unsocialized outdoor cat who has either never had any physical contact with humans, or human contact has diminished enough over time that the cat is no longer accustomed thereto.

Sponsor organization means a nonprofit rescue, veterinary clinic, or other organization that facilitates TNR services.

Stray cat shall mean any cat that has been lost or abandoned, and the pet guardian is no longer providing or attempting to provide care and lives outdoors and exhibits the characteristics of being able to be successfully domesticated.

Trap-neuter-return provider or provider means a person or sponsor organization authorized under this Chapter to engage in TNR activities.

Trap-neuter-return or TNR, is the practice whereby community cats are humanely trapped, taken to a licensed veterinary hospital or spay -neuter facility where they are sterilized, vaccinated, ear tipped, and adopted or returned to their colony to be cared for until the end of their natural life.

Trap-neuter-return activities means and includes trapping, sterilizing, vaccinating and/or ear tipping in in connection with returning a cat to their colony or location of capture.

Trap-neuter-return program or program means the TNR activities within the city authorized by and conducted in conformance with the requirements of this chapter.

3-173 Authorization Required for Trap-Neuter-Return Activities (a) No person shall engage in any trap-neuter-return activities within the city except as authorized by this chapter.
(b) It shall be lawful for a person and/or sponsor organization , upon registration and authorization from the chief of police , to humanely trap, transport, sterilize, vaccinate, ear- tip, and return a healthy community cat or feral cat to the location where it was originally trapped, provided any sterilization, vaccination and/or ear -tipping is done pursuant to all applicable laws.
(c) A cat returned as authorized by this chapter shall not be deemed to be “running at large” in a public place pursuant to subsection (a) of section 3-15, provided all requirements of this chapter are met.

3-174 Program Requirements
(a) Prior to engaging in any TNR activities and/or participating in any TNR program within the city, a person or sponsor organization must first register with and receive a letter of authorization from the chief of police.
(b) The chief of police is authorized to create and make available registration forms, logs, and other materials and to require information from applicants consistent with the requirements of this chapter, and to issue, deny, suspend and or place reasonable conditions on letters of authorization subject to the notification procedures of section 3-148. 155
Ordinance No. 2026-XX Page 3 of 5

(c) A letter of authorization shall be valid for one calendar year from date of approval. A request for renewal of authorization must be submitted at least 30-days prior to expiration thereof. (d) Mandatory Sterilization, Vaccination and Ear-tipping. All cats returned under this Program must first:
(1) Be scanned for a microchip ID and contact made with the registered owner prior to any treatment.
(2) Be surgically sterilized.
(3) Receive all core feline vaccinations as designated under current veterinary vaccination guidelines.
(4) Receive permanent identification through ear-tipping. (5) Exceptions. Cats that are seriously ill, injured, or determined by a veterinarian to be suitable for adoption shall not be returned and must instead be provided treatment and/or placement as appropriate.
(e) Recordkeeping.
(1) TNR providers are required to submit TNR logs documenting each TNR cat originating from the city, including but not limited to location trapped, date trapped, clinic or veterinarian used, sterilization and vaccination information, ear-tipping confirmation, and release location. Logs should be submitted upon completion of work on individual colonies and minimally at the end of the calendar year, or prior to the annual expiration of a letter of authorization, whichever is sooner.
(2) The city shall maintain TNR records for a minimum of three (3) years, or as otherwise required by law.
3-175 Enforcement and Corrective Measures
(a) A violation of this chapter is punishable pursuant to section 1-33. (b) TNR authorization may be modified, suspended and/or revoked based on a violation of this chapter, other applicable provision of this code or other law, and/or if reasonably necessary to protect against an immediate threat to the public health and safety , pursuant to the procedures of section 3-149.
(c) Nothing in this chapter shall prevent the city from acting regarding cats that present a threat to public health or safety, display aggression, or are suspected of rabies or other disease. (d) It shall be unlawful for any person to feed any cat in or on any public area or property, unless specifically authorized to do so under this chapter. No person may feed a feral or community cat on private property in such a manner as to create a public nuisance pursuant to section 20-12 or other law.
(d) Denial, suspension for more than 30 days, and/or revocation of TNR authorization by the chief of police may be appealed by the TNR provider pursuant to Chapter IX of Title 2.

Section 2: Inconsistencies. Any provision of this Ordinance which is inconsistent with state law shall be interpreted in a manner consistent with state law. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to the extent necessary to affect the provisions of this Ordinance.

156
Ordinance No. 2026-XX Page 4 of 5

Section 3: Penalties. A violation of this Ordinance is a misdemeanor that may alternatively be enforced as an infraction and shall constitute a public nuisance. A violation of this Ordinance may be enforced pursuant to the provisions of Section 1 -33, Chapter II of Title 1, and/or Chapter III of Title 20 of the Costa Mesa Municipal Code.

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

Section 5: Effective Date. This Ordinance shall take effect on the 31st day after adoption.

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

157
Ordinance No. 2026-XX Page 5 of 5

PASSED AND ADOPTED this ___ day of ______, 2026.

______________________________
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 Ordinance No. 2026 -XX was duly introduced for first reading at a regular meeting of the City Council held on the XX day of XX 2026, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the XX day of XX 2026, 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 on this XX day of XX 2026.

______________________________
Brenda Green, City Clerk
158
Community Cat Colony Tracking System
- Care giving information -
This form will enable you to identify and track the individual community cats (also known as feral cats) in your colony and chart the progress of your Trap-Neuter-Return effort. Use the Trap-Neuter-Return procedures as recommended on the City website. For each separate trapper location, a second tracking system will be required.
___________ ____________
____ _
____
____
_____
PAGE 1
Attachment 2
159

2 3
4 5
6 7
8 9
10 REGISTRATION FORM TRAPPER NAME:___________________
PAGE 2 160

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-228 Meeting Date: 4/21/2026
TITLE:

ADOPTION OF ORDINANCE AMENDING CHAPTER III OF TITLE 15 OF THE COSTA MESA

MUNICIPAL CODE RELATING TO PUBLIC WORKS - DRAINAGE
DEPARTMENT: PUBLIC WORKS DEPARTMENT / ENGINEERING DIVISION PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: SEUNG YANG, P.E., CITY ENGINEER, (714) 754-5335 RECOMMENDATION:

BACKGROUND:

On October 15, 2024, the City Council reviewed and accepted Phase 1 of the Storm Drain System Master Plan Update, which included an “Existing Conditions Assessment Report” (ECAR) and the “Proposed Drainage and Water Quality Improvements” report.

On March 17, 2026, the City Council opened a public hearing and continued an introduction and first reading, by title only, of an ordinance amending Chapter III of Title 15 of the Costa Mesa Municipal Code relating to drainage to the April 7, 2026, City Council meeting.

During its regularly scheduled City Council meeting on April 7, 2026, the Council, while approving the proposed staff recommendation, requested minor revisions to the proposed ordinance to clarify the appeal process for drainage fee adjustments. Specifically, the requested revisions establish that appeals based on increased site permeability, including permeable surfaces, bioswales, or other stormwater infiltration features, shall be subject to final review and approval by the Public Works Director.

The requested revisions are incorporated into the ordinance presented for adoption and explained in the ANALYSIS section below.

All information regarding the Storm Drain System Master Plan Update study can be found on the City’s webpage at<https://www.costamesaca.gov/storm>.

Page 1 of 3 ends

161
File #: 26-228 Meeting Date: 4/21/2026
ANALYSIS:

During its regularly scheduled City Council meeting on April 7, 2026, the City Council approved staff’s recommendation to adopt the 2026 Storm Drainage Impact Fee Nexus Study as the final component of the 2024 Storm Drain System Master Plan Update with the following changes:
§15-75 Appeals - Add option (c) under Paragraph A:
(c) A fee adjustment based upon a substantial showing of evidence of increased site permeability, including but not limited to permeable surfaces, bioswales, or other stormwater infiltration features, that will reduce stormwater runoff and impacts to the City’s existing drainage system. Any fee adjustment proposed pursuant to subsection (c) shall be subject to final review and approval by the Public Works Director. §15-75 Appeals - Replace Paragraph B. with the following:

B. The City Council shall consider appeals submitted pursuant to subsections (A)(a) and (A)(b) at a public meeting to be held within 60 calendar days after the appeal application has been filed.

Appeals submitted pursuant to subsection (A)(c) shall be reviewed by the Public Works Director, and such review shall be completed within 60 calendar days after the appeal application has been filed. The decision of the City Council or Public Works Director, as applicable, shall be final. The decision shall be in writing and shall be mailed to the applicant.

In addition, staff is recommending the following change in order to remain consistent with Councilmember Marr’s motion:
§15-75 Appeals - Replace Paragraph C. with the following:

C. If an adjustment is granted pursuant to this section, any subsequent change or intensification of the use or uses of the property or any expansion of the structures on the property, or removal or modification of the site permeability or stormwater infiltration features relied upon for the adjustment, shall invalidate the adjustment, and the applicant shall be subject to the development impact fee requirement applicable to the entire development based on the fee in effect at the time of the change, expansion, removal, or modification, less any amount previously paid.

In addition, the City Council approved a motion to include a review of the Drainage Fees after three years.

The City Council approved the above actions unanimously by a vote of 7 - 0.

Ordinance No. 2026-05 is included as Attachment 1 to this report. The ordinance is presented for approval and adoption. If adopted, the ordinance would become effective thirty (30) days after adoption and the Storm Drain Impact Fees go into effect sixty (60) days after their April 7, 2026, approval.

Page 2 of 3 ends

162
File #: 26-228 Meeting Date: 4/21/2026
ALTERNATIVES:

The City Council may choose to adopt, modify, or reject the ordinance as proposed. If the City Council chooses to make substantive modifications to the ordinance after introduction, the modified ordinance must be adopted by City Council in a future meeting.

FISCAL REVIEW:

The fiscal impact of updating the City’sdrainage fees will depend on the pace of future development throughout the City. All funds collected in the Drainage Fees Fund (Fund 209) will be utilized to fund eligible capital improvements identified in the nexus study and the 2024 Storm Drain System Master Plan Update.

LEGAL REVIEW:

The proposed ordinance and report have been prepared in conjunction with and reviewed by the City Attorney’s Office.

PUBLIC NOTICE:

Pursuant to Government Code, section 66016.5(a)(7) and Assembly Bill (AB) 602, a notice was published in the City’slocal newspaper (i.e., Daily Pilot) on February 13, 2026 and on February 20, 2026. These publications provided more than the required (30) days’notice prior to the initial public hearing scheduled for March 17, 2026.

At the March 17, 2026 City Council meeting, the public hearing was opened and continued to April 7, 2026, allowing additional time for noticing, public review, and consideration. On April 7, 2026, the City Council completed the public hearing, adopted the Storm Drainage Impact Fee Nexus Study, and introduced for first reading Ordinance No. 2026-05 related to drainage and the updated storm drainage impact fees. The second reading is scheduled for the City Council meeting on April 21, 2026.

CITY COUNCIL GOALS AND PRIORITIES:

The Storm Drain System Master Plan Update and the corresponding ordinance to revise the City’s Municipal Code work towards achieving the following City Council goals:
· Maintain and Enhance the City’s Facilities, Equipment and Technology · Strengthen the Public’s Safety and Improve the Quality of Life · Advance Environmental Sustainability and Climate Resiliency CONCLUSION:

Page 3 of 3 ends

163
ATTACHMENT 1
Ordinance No. 2026-05 Page 1 of 10

ORDINANCE NO. 2026-05

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING CHAPTER III OF TITLE 15 OF THE COSTA MESA MUNICIPAL CODE RELATING TO DRAINAGE.

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

WHEREAS, the City of Costa Mesa prepared and adopted a comprehensive 2006 Master Plan of Drainage Update that included a 20-year Capital Improvement Plan (CIP) Priority List for storm drain improvements to identify needed drainage facility improvements throughout the City and estimate the costs thereof; and WHEREAS, the City of Costa Mesa’s current Drainage Impact Fees are based on the 2006 20-year Capital Improvement Plan (CIP) Priority List for storm drain improvements; and
WHEREAS, the City Council determined that an update of the Master Plan of Drainage was necessary and the existing drainage fee and drainage fee provisions of the Municipal Code should be revised and updated to create a more appropriate fee structure for new development, redevelopment, and construction; and WHEREAS, the City Council accepted Phase 1 of the Storm Drain System Master Plan Update on October 15, 2024, which included the Existing Conditions Assessment Report and the Proposed Drainage & Water Quality Improvements, dated October 2024; and
WHEREAS, on April 7, 2026, the City Council held a duly noticed open and public meeting regarding the adoption of the proposed updated Storm Drainage Impact Fee Nexus Study, to complete the Storm Drain System Master Plan Update, as required by Government Code Sections 66016, 66017, and 66018; and
WHEREAS, the amount of each fee has been determined and calculated in a manner consistent with the California’s Mitigation Fee Act and any applicable finance plan; and
WHEREAS, the effective date of a resolution that establishes the initial amount or increase of a fee is to be determined in accordance with California Government Code Section 66017; and
164
ATTACHMENT 1
Ordinance No. 2026-05 Page 2 of 10

WHEREAS, all other prerequisites to the adoption of this Ordinance, the approval of the Storm Drainage Impact Fee Nexus Study dated February 2026, and the proposed updated Storm Drainage Impact Fees as specified by the Mitigation Fee Act (Cal. Gov.

Code § 66000, et seq.) and other applicable laws, have been satisfied.

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

Section 1. Chapter III of Title 15 of the Costa Mesa Municipal Code is hereby amended to read as follows:
§ 15-64 Storm Drain System Master Plan identified.

The City has adopted and now has in effect a Storm Drain System Master Plan, which has been, after notice and public hearing, revised from time to time and which was adopted pursuant to Title 7, Chapter 3, Article 8, Section 65450, et seq. , California Government Code. The official copy of the current Storm Drain System Master Plan is on file in the Office of the City Engineer at 77 Fair Drive, Costa Mesa, California, and any reference in this chapter to the Storm Drai n System Master Plan shall be to the reports, maps, plats, plans, specifications and other materials constituting said Storm Drain System Master Plan as on file at the above address. The terms of this chapter shall apply to all of the drainage facilities now in place within the City , as well as drainage facilities described and set forth in the Storm Drain System Master Plan and as may be required periodically by the City Engineer.
§ 15-65 Drainage fees established.

Development of, or construction on, property within the City will require construction of additional drainage facilities, as set forth in the Storm Drain System Master Plan and its Storm Drainage Impact Fee Nexus Study report and/or as may be identified periodically by resolution of the City Council or as may be imposed as a condition of development approval by the City Engineer. Drainage fees are hereby established for the Newport Bay Watershed and the Santa Ana Watershed. Drainage fees for the Newport Bay Watershed and the Santa Ana Watershed are to be set periodically by resolution of the City Council, 165
ATTACHMENT 1
Ordinance No. 2026-05 Page 3 of 10

which fees shall be tiered to take into account the intensity of development proposed for the property. The fee tiers shall be as follows: low -density residential; medium -density residential; high- density residential; and commercial/industrial. The drainage fees for each drainage shed shall be imposed on a pro rata, per acre basis upon any parcel or other piece of property for which an owner, developer or other applicant has requested approval to develop or redevelop, or to construct or reconstruct any structure upon such property pursuant to Chapter 15-70, prior to, and as a condition of approval being granted for such development or construction.
§ 15-66 Storm Drainage Watershed Funds
The funds collected hereunder shall be deposited in two separate funds which shall be known as the "Santa Ana Watershed Drainage Fund" and the “Newport Bay Watershed Drainage Fund”. In the case of land development subject to the Subdivision Map Act, the drainage fee for the appropriate watershed, as defined in the adopted Sto rm Drain System Master Plan and its Storm Drainage Impact Fee Nexus Study, shall be collected, deposited and expended in accordance with Section 66483 through 66483.2 of the California Government Code, in addition to the provisions set forth below, and all other applicable laws of the state. In the case of any development, redevelopment, construction, or reconstruction not subject to the Subdivision Map Act, the drainage fee for the appropriate watershed shall be collected, deposited and expended in accordance with Sections 66000 through 66008 of the California
Government Code, in addition to
the provisions set forth below, and all other applicable laws of the state. § 15-67 Required Construction.
(a) Whenever a development is planned in a location where the Storm Drain System Master Plan or condition of approval calls for a storm drain and the applicant or developer is required to construct the storm drain upon a public right -of-way or on private property to be dedicated as a public right -of-way, the applicant or developer shall be required to post appropriate bonds to cover the estimated construction cost of the storm drain and submit copies of bid prices to the City Engineer prior to construction. Any and all such bonds shall be exonerated upon acceptance of construction by the City Engineer. 166
ATTACHMENT 1
Ordinance No. 2026-05 Page 4 of 10

(b) If the City Engineer determines that additional drainage facilities are required in order to adequately provide for drainage, the C ity Engineer may require, as a condition of approval, the construction of those facilities for the detention of stormwater or such other means as may be necessary to provide adequate drainage of a particular property without adversely affecting adjacent properties or the City's drainage system. (c) Notwithstanding anything provided in this Section 15-67 or elsewhere in this Chapter III, any construction of drainage facilities required to be constructed prior to issuance of development approval shall be in addition to, and not in lieu of, imposition of the drainage fee applicable to that property. Facilities included in the Storm Drain System Master Plan may be eligible for credit and/or reimbursement pursuant to this chapter. § 15-68 Fee refund.

If a building permit expires without commencement of construction or a subdivision or parcel map is abandoned prior to final approval, then the applicant or developer shall be entitled to a refund, without interest, of the impact fee paid as a condition for its issuance, except that the City may retain the actual administrative costs incurred on behalf of said applicant or developer, in accordance with Section 66014 of the California Government Code. The fee payer must submit a written request for a refund to the C ity Engineer within 30 calendar days of the expiration of the permit. Failure to submit the required application for refund in a timely manner shall constitute a waiver of any right to the refund. § 15-69 Use of funds.

The money obtained through payment of drainage fees as provided for in this chapter may be used by the City to defray the cost of constructing storm drains and related facilities as identified in the Storm Drain System Master Plan . The City may incur indebtedness for the construction of any drainage facility and utilize either of the drainage fee funds for repayment.
§ 15-70 Fees to connect to existing facilities.

Subject to the provisions of Section 66013 of the California Government Code , applicants requesting connection with existing drainage facilities shall be required to pay the drainage fee as provided for in this chapter.
167
ATTACHMENT 1
Ordinance No. 2026-05 Page 5 of 10

§ 15-71 Applicability of fees.

Drainage fees shall be imposed in the following cases:
(a) For low density residential uses, any improvement, addition or major alteration to an existing structure or construction of an accessory structure, in any form, where the aggregate gross impervious percentage of the parcel as a result of such improvement exceeds 50% of the gross acreage of the parcel is subject to a drainage fee for the exceeding impervious acreage. The applicable drainage fee shall be calculated pursuant to the following formula:

Fee = (Impervious area exceeding 50% of the gross parcel acr eage) X (Fee per Impervious Acre)
(b) For medium density residential uses, any improvement, addition or major alteration to an existing structure or construction of an accessory structure, in any form, where the aggregate gross impervious percentage of th e parcel as a result of such improvement exceeds 70% of the gross acreage of the parcel is subject to a drainage fee for the exceeding impervious acreage. The applicable drainage fee shall be calculated pursuant to the following formula.

Fee = (Impervious area exceeding 70% of the gross parcel acreage) X (Fee per Impervious Acre)
(c) For high density residential uses, any improvement, addition or major alteration to an existing structure or construction of an accessory structure, in any form, where the aggregate gross impervious percentage of the parcel as a result of such improvement exceeds 80% of the gross acreage of the parcel is subject to a drainage fee for the exceeding impervious acreage. The applicable drainage fee shall be calculated pursuant to the following formula.

Fee = (Impervious area exceeding 80% of the gross parcel acreage) X (Fee per Impervious Acre)
(d) For commercial and industrial uses, any improvement, addition or major alteration to an existing structure or construction of an acces sory structure, in any form, where the aggregate gross impervious percentage of the parcel as a result of such improvement exceeds 90% of the gross acreage of the parcel is subject to a drainage fee for the 168
ATTACHMENT 1
Ordinance No. 2026-05 Page 6 of 10

exceeding impervious acreage. The applicable drainage fee shall be calculated pursuant to the following formula.

Fee = (Impervious area exceeding 90% of the gross parcel acreage) X ( Fee per Impervious Acre)
(e) For development of vacant land, any improvement or construction is subject to a drainage fee. The applicable drainage fee shall be calculated pursuant to the following formula.

Fee = (Gross Parcel Acreage) X (Land Use Impervious Factor) X (Fee per Impervious Acre)
(f) For land use changes, where the impervious factor for the future land uses as identified in the Storm Drain System Master Plan is greater than the impervious factor of the existing land use as identified in the Storm Drain System Master Plan.

Fee = (Drainage Fee per Acre of Future Land Use – Drainage Fee per Acre of Existing Land Use) X (Gross Property Acreage)
Drainage fees shall not be imposed in the following cases:
(a) For accessory dwelling units (ADU) less than 750 square feet. (b) For reconstruction of existing structures in the event of a disaster where the reconstruction does not increase the impervious area of the parcel. (c) For land use changes where the impervious coefficient for the future land use as identified in the Storm Drain System Master Plan is less than the impervious coefficient of the existing land use.
§ 15-72 Deposit of fees.

Subject to the provisions of the Subdivision Map Act or Sections 66000 through 66007 of the California Government Code, as applicable, a drainage fee paid in accordance with this chapter shall be deposited in the appropriate watershed drainage fund prior to the approval of the final tract or parcel map in the case of recorded map developments and at the issuance of a building permit in all other instances.

169
ATTACHMENT 1
Ordinance No. 2026-05 Page 7 of 10

§ 15-73 Private facilities.

Fees provided for, and the expenditures to be made from, the Drainage Fee Fund are to be applicable to those facilities as provided for in the Storm Drain System Master Plan.

Drainage facilities necessary within any development by reason of requirements of the City or the Uniform Building Code shall be at the sole expense of the developer, and funds obtained as provided for in this chapter shall not be expended therefor.

§ 15-74 Credits, Reimbursement & Reductions.

A. Whenever the conditions of approval of a development project require direct construction of a public storm drainage facility (see Section 15-67) described or listed in the Storm Drain System Master Plan, a credit or reimbursement, as applicable, shall be given against the development impact fee, which would have been charged to the development project under the program, for actual construction costs incurred by the developer, up to the cost included in the Storm Drain System Master Plan. The reimbursement and/or credit amount shall not include any improvements the City can require from the development project under the Subdivision Map Act, or the portion of the improvement deemed to be an on- site improvement that is not included in the Storm Drain System Master Plan.

B. A developer may be allowed a reduction in fees from the drainage fee requirements of this chapter if the developer enters into a development agreement with the City pursuant to which drainage fees are assessed to the developer, or equivalent or comparable improvements are constructed and implemented by the developer.

C. No refund or payment shall be due to an applicant in the event that the impervious coefficient for the future land use as identified in the Storm Drain System Master Plan is less than the impervious coefficient of the existing land use.

D. State law. The City will comply with any fee reduction or fee adjustment requirements imposed by state law.

170
ATTACHMENT 1
Ordinance No. 2026-05 Page 8 of 10

§ 15-75 Appeals
A. A developer subject to the drainage fees required by this chapter for a particular project may apply to the City Council for: (a) a fee adjustment based upon a showing of substantial evidence of a lesser impact upon the level of service; or (b) a land use category adjustment based upon a showing of substantial evidence that another land use category is more appropriate for a particular development.; or (c) a fee adjustment based upon a substantial showing of evidence of increased site permeability, including but not limited to permeable surfaces, bioswales, or other stormwater infiltration features, that will reduce stormwater runoff and impacts to the City’s existing drainage system. Any fee adjustment proposed pursuant to subsection (c) shall be subject to final review and approval by the Public Works Director. The written appeal and the applicable appeal fee must be filed with the City Clerk’s Office prior to the issuance of building permit. The City Council shall establish the appeal fee by r esolution. The appeal shall state in detail the factual basis for the request for adjustment.

B. The City Council shall consider appeals submitted pursuant to subsections (A)(a) and (A)(b) at a public meeting to be held within 60 calendar days after the appeal application has been filed. Appeals submitted pursuant to subsection (A)(c) shall be reviewed by the Public Works Director, and such review shall be completed within 60 calendar days after the appeal application has been filed. The decision of the City Council or Public Works Director, as applicable, shall be final. The decision shall be in writing and shall be mailed to the applicant.

D. If an adjustment is not granted pursuant to this section, then upon the payment of the required fees, the City shall provide the applicant a written notice of the amount 171
ATTACHMENT 1
Ordinance No. 2026-05 Page 9 of 10

of the fees or a description of the dedications, reservations, or other exactions, and shall also provide notification that the 90- day protest period has begun, pursuant to Government Code Section 66020.

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

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

Section 5. The Mayor shall sign and the City Clerk shall certify the passage and adoption of this Ordinance and shall cause this Ordinance to be published within 15 days after its passage, in accordance with Section 36933 of the Government Code.

PASSED AND ADOPTED this 21st day of April 2026.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney 172
ATTACHMENT 1
Ordinance No. 2026-05 Page 10 of 10

THIS PAGE IS RESERVED FOR THE CITY CLERK’S OFFICE.

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2026-05 was duly introduced for first reading at a regular meeting of the City Council held on the 7th day of April 2026, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the 21st day of April, 2026, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 21st day of April 2026.

__________________________
Brenda Green, City Clerk

173

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-223 Meeting Date: 4/21/2026
TITLE:

AMENDMENT NUMBER THREE TO EXTEND THE TERM OF THE PROFESSIONAL SERVICES

AGREEMENT WITH FALCK MOBILE HEALTH CORPORATION FOR AMBULANCE SERVICES DEPARTMENT: COSTA MESA FIRE & RESCUE DEPARTMENT
PRESENTED BY: JASON PYLE, INTERIM FIRE CHIEF
CONTACT INFORMATION: JASON PYLE, INTERIM FIRE CHIEF 714-754-5155 RECOMMENDATION:

Staff recommends the City Council:

2. Authorize a ten percent (10%) contingency in the amount of $502,000 for unforeseen costs.

BACKGROUND:

Pursuant to California Health & Safety Code section 1797.201, because the City of Costa Mesa has provided and/or contracted for emergency ambulance services continuously at least since June 1, 1980, the City has retained all rights, remedies, and privileges regarding the provision, administration, and operational control of all prehospital Emergency Medical Services (EMS) within its jurisdiction, including, but not limited to, emergency ambulance response and patient transport services.

In accordance with its section 1797.201 powers, on December 20, 2017, the City initiated a competitive process by issuing a “Request for Proposals,” coordinated by the Fire & Rescue Department, in which qualified ambulance companies were reviewed, analyzed, and compared. The Fire & Rescue Department chose to use the competitive process format outlined in California Emergency Medical Services Authority Publication #141 due to its efficiency, rather than developing a new format.

On July 17, 2018, the City Council accepted the proposal submitted by Care Ambulance Service, Inc.

Page 1 of 3 ends

174
File #: 26-223 Meeting Date: 4/21/2026
On July 17, 2018, the City Council accepted the proposal submitted by Care Ambulance Service, Inc. (now Falck Mobile Health Corp) and authorized the Fire & Rescue Department to negotiate an agreement for the provision of emergency ambulance operator and support services. The City and Care Ambulance Services entered into a Professional Services Agreement (the “Agreement”)to allow for the provision of such services effective on August 1, 2018, for a period of five (5) years. The Agreement allows for five (5) one (1) year extensions of the term of the Agreement.

On July 18, 2023, the City and Falck Mobile Health Corp (“Falk”)entered into Amendment Number One to extend the Agreement for a period of one (1) year to July 31, 2024.

Amendment Number Two utilized the second and third of the five one-year extensions of the Agreement and extended the Agreement to July 31, 2026.

The proposed Amendment Number Three utilizes the fourth and fifth of the five one-year extensions of the Agreement and extends the term of the Agreement to July 31, 2028. In addition, proposed Amendment Number Three, like Amendment Number Two, authorizes the City Manager to increase the Purchase Order (PO) by 10% if needed for additional services.

ANALYSIS:

The term of the Agreement set forth in Section 4.1 shall be extended for two years through July 31, 2028. The term for each fiscal year includes $2,418,439 for ambulance operator services, with a remaining amount of $91,561 for surge ambulances, for a total annual PO amount of $2,510,000. An additional ten percent (10%) contingency in the amount of $251,000 is available annually, if needed.

The terms set forth in Section 2.1 Compensation, Additional Expenses Surge Unit/ Ambulance EMT Crew (on as needed basis), will reflect the updated terms, as reflected in Attachment 4; $300 per hour measured in 15-minute intervals at $75 per 15 min. Billing to City for Surge Unit will begin when the requested Falck unit goes “enroute”and should the assigned Falck unit be canceled within the first five (5) minutes of going “en route” then there will be no billing to the City. All other terms, conditions, and provisions of the Agreement not in conflict with this Amendment shall remain in full force and effect
From the commencement of the current Agreement until the present time, Falck has met and fulfilled all contractual obligations and requirements. In fact, the Fire & Rescue Department has determined that Falck has exceeded all expectations and helped foster a partnership that has been instrumental in maintaining Costa Mesa’shigh-quality EMS system. Based on its performance over the past six years, Falck has maintained a well-managed organization, staffed by dedicated personnel who care about its mission and the patients they serve.

Extending the agreement to July 31, 2028, will allow for emergency ambulance staffing to continue.

Section 4.2 of the agreement allows the City to terminate the Agreement at any time with written notice to Falck if it is later determined that services will not be needed for the entire time period of the extension.

Page 2 of 3 ends

175
File #: 26-223 Meeting Date: 4/21/2026
ALTERNATIVES:

Since Falck has met and satisfied the requirements and expectations of the Agreement, no other alternatives were considered.

FISCAL REVIEW:

The total cost for the two-year agreement extension, inclusive of a 10% contingency, is $5,522,000.

The City’sambulance services expenditure is included in the Fire & Rescue Department’sGeneral Fund budget (Fund 101). The Ambulance Program is net neutral to the General Fund with sufficient revenues from the program to offset the expenses.

LEGAL REVIEW:

The City Attorney’sOffice has reviewed this report and Amendment Number Three and approves them both as to form.

CITY COUNCIL GOALS AND PRIORITIES:

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

CONCLUSION:

Based on the aforementioned reasons, the Fire & Rescue Department respectfully recommends that the City Council approve Amendment Number Three with Falck Mobile Health Corporation, for the continuation of emergency ambulance operator and support services until July 31, 2028, for an amount not to exceed (NTE) $5,020,000, with all other terms and conditions to remain the same as outlined in Amendment Number Two; authorize a ten percent (10%) contingency in the amount of $502,000 for unforeseen costs; and authorize the City Manager to execute this amendment and to approve any changes and future amendments to the Ambulance Services Agreement.

Page 3 of 3 ends

176
Falck PSA Amendment No. Three
1 ATTACHMENT 1

AMENDMENT NUMBER THREE

TO PROFESSIONAL SERVICES AGREEMENT WITH

FALCK MOBILE HEALTH CORP (CARE AMBULANCE SERVICE)

This Amendment Number THREE (“Amendment”) is made and entered into this 21st day of April 2026 (“Effective Date”) by and between the CITY OF COSTA MESA, a municipal corporation (“City”) and FALCK MOBILE HEALTH CORP., a California corporation, previously known as CARE AMBULANCE SERVICE, INC. (“Consultant”).

WHEREAS, City and Consultant entered into an agreement on August 1, 2018 for Consultant to provide Ambulance Operator Services (the “Agreement”); and

WHEREAS, Section 4.1 of the Agreement provides for a term of five (5) years, with the option to extend the Agreement for five (5) additional one (1) year periods; and

WHEREAS, City and Consultant entered into Amendment Number One to the Agreement on July 18, 2024 to extend the term for one (1) year, through July 31, 2024; and

WHEREAS, City and Consultant entered into Amendment Number Two on June 6, 2024 to extend the term of the Agreement for two (2) additional one (1) year extensions, through July 31, 2026; and

WHEREAS, City and Consultant desire to extend the term of the Agreement for two (2) additional one (1) year extensions.

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

1. The Term of the Agreement set forth in Section 4.1 shall be extended for two years through July 31, 2028.

2. Authorize the City Manager to increase the PO by 10% if needed for additional services.

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

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

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date first written above.
177
Falck PSA Amendment No. Three
2 CONSULTANT

________________________________ Date: __________________________ Signature

________________________________
Name and Title

CITY OF COSTA MESA

__________________________________ Date:

Cecilia Gallardo-Daly
City Manager

ATTEST:

__________________________________
Brenda Green
City Clerk

APPROVED AS TO FORM:

__________________________________ Date:

Kimberly Hall Barlow
City Attorney

[SIGNATURES CONTINUE ON FOLLOWING PAGE]
178
Falck PSA Amendment No. Three
3 APPROVED AS TO INSURANCE:

__________________________________ Date:

Ruth Wang
Risk Management

APPROVED AS TO CONTENT:

________________________________ Date: __________________________ Jason Pyle, Interim Fire Chief
Project Manager

DEPARTMENTAL APPROVAL:

________________________________ Date: __________________________ Jason Pyle
Interim Fire Chief

APPROVED AS TO PURCHASING:

________________________________ Date: __________________________ Finance Department
179
1 Care Ambulance Service Inc.

CITY OF COSTA MESA

PROFESSIONAL SERVICES AGREEMENT
WITH
CARE AMBULANCE SERVICE, INC.

THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 1st day of August, 2018 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and CARE AMBULANCE SERVICE, INC., a California corporation (“Contractor”).

W I T N E S S E T H :

A. WHEREAS, City proposes to utilize the services of Contractor as an independent contractor to provide ambulance operator services, as more fully described herein; and B. WHEREAS, Contractor represents that it has that degree of specialized expertise contemplated within California Government Code section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and C. WHEREAS, City and Contractor desire to contract for the specific services described in Exhibit “A” and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and
D. WHEREAS, no official or employee of City has a financial interest, within the provisions of sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.

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

1.0. SERVICES PROVIDED BY CONTRACTOR

1.1. Scope of Services. Contractor shall provide the professional services described in the Scope of Work, attached hereto as Exhibit “A,” and Contractor’s Proposal, attached hereto as Exhibit “B,” both incorporated herein by this reference. Contractor shall provide the services set forth herein in accordance with this Agreement, the requirements set forth in Exhibit A and all exhibits attached hereto, and all applicable local, state, and federal laws, rules, regulations, policies and procedures, including but not limited to the Costa Mesa Fire Department’s Standard Operating Procedures.
(a) Contractor’s Personnel.
(i) Selection. All personnel providin g services to the City pursuant to this Agreement shall be certified ambulance drivers. In selecting personnel to provide services to the City pursuant to this Agreement, Contractor shall first establish a list of qualified candidates. Once Contractor establishes a list of qualified candidates, City and Contractor shall work together to make the final selection of personnel that will provide services to the City, which may include, but is not limited to, resume review, interviews, $77$&+0(17
180
2 Care Ambulance Service Inc.

and meetings with station captains.

(ii) Personnel Issues. The Battalion Chief and Contractor’s representative shall work together to resolve any issues involving Contractor’s personnel.

(iii) Automobile Accidents . If Contractor’s personnel are involved in an automobile accident while providing services hereunder, Contractor and City shall conduct separate investigations in accordance with their respective internal po licies and proced ures. City and Contractor shall combine the results of their investigations into a final report regarding such accident.

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

1.3. Performance to Satisfaction of City. Contractor agrees to perform all the work to the complete satisfaction of the City and within the hereinafter specified. Evaluations of the work will be done by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to:

(a) Meet with Contractor to review the quality of the work and resolve the matters of concern;

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

1.4. Warranty. Contractor warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to mini mum hours and wages; occupational health and safety; fair employment and employment practices; workers’ compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Contractor shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys’ fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Contractor’s performance under this Agreement.

1.5. Non-Discrimination. In performing this Agreement, Contractor shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, se x, gender, gender identity, gender expression, age, sexual orientation, or military or veteran status, except as permitted pursuant to section 12940 of the Government Code.
181
3 Care Ambulance Service Inc.

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

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

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

2.0. COMPENSATION AND BILLING

2.1. Compensation. Contractor shall be pa id in accordance with the fee schedule set forth in Exhibit “C,” attached hereto and incorpor ated herein by this reference . Contractor ’s annual compensation shall not exceed One M illion Eight Hundred Fifty Thousand Dollars ($1,850,000.00).

2.2. Additional Services. Contractor sha ll not receive compensation for any services provided outside the scope of services specified in the Scope of Work or Contractor ’s Proposal unless the City or the Project Manager for this Agreement, prior to Contractor performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable.

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

2.4. Records and Audits. Records of Contractor ’s services relating to this Agreement shall be maintained in accordance with generall y recognized accounting principles and shall be made available to City or its Project Manager for inspection an d/or audit at mutually convenient times from the Effective Date until three (3) years after termination of this Agreement. 182
4 Care Ambulance Service Inc.

3.0. TIME OF PERFORMANCE

3.1. Commencement and Completion of Work. Unless otherwise agreed to in writing by the parties, the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Failure to commence work in a timely manner and/or diligently pu rsue work to completion may be grounds for termination of this Agreement.

3.2. Excusable Delays. Neither party sh all be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party.

4.0. TERM AND TERMINATION

4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of five (5) years, ending on July 31, 2023, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. This Agreement may be extended by five (5) additional one (1) year periods upon mutual written agreement of both parties.

4.2. Notice of Termination. Either party may terminate this Agreement at any time, with or without cause, at any time, by providing thirty (30) days’ written notice to the other party. The termination of this Agreement shall be deemed effective thirty (30) days from receipt of the notice of termination.

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

4.4. Documents. In the event of termination of this Agreement, all documents prepared by Contractor in its performance of this Agreem ent including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of delivery of termination notice to Contractor, at no cost to City. Any use of uncompleted documents without specific written authorization from Contractor shall be at City’s sole risk and without liabi lity or legal expense to Contractor.

5.0. INSURANCE

5.1. Minimum Scope and Limits of Insuranc e. 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 compan y 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:
183
5 Care Ambulance Service Inc.

(a) Commercial general liability insurance, with a policy limit of not less than Ten Million Dollars ($10,000,000.00) per occurrence and aggregate. The general liability policy shall protect against losses, including bodily injury, death and property damage, arising in connection with the performance of this Agreement.

(b) Comprehensive business automobile liability insurance covering owned, non-owned, and hired vehicles, with a po licy limit of not less than Five Million Dollars ($5,000,000.00), combined single limits, per occurrence, for bodily injury and property damage. Such insurance shall include coverage for City-owned and Contractor-owned vehicles operated by Contractor’s personnel in connection with this Agreement.

Contractor agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers, agents, employees, and volunteers arising from work performed by Contractor for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies.

(d) Professional liability insurance, which shall include ambulance medical malpractice coverage, with a policy limit of not less than Ten Million Dollars ($10,000,000.00) per occurrence. For any policy written on a “claims made” basis, Contractor shall maintain said policy in full force and effect during the term of this Agreement and for a period of at least three (3) years from the termination of this Agreement. In the event of termination, cancellation, or material change of the policy during this period, Contractor shall obtain continuing insurance coverage for the prior acts or omissions of Contractor during the course of pe rforming services pursuant to this Agreement. Such coverage shall be evidenced by either a new policy evidencing no gap in coverage, or by obtaining a separate extended “tail” coverage with the present or new insurance carrier. Contractor shall provide evidence of such coverage to the City.

5.2. Endorsements. The commercial gene ral liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions:

(a) Additional insureds: “The City of Costa Mesa and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the 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.”

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

184
6 Care Ambulance Service Inc.

(c) Other insurance: “The 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.”

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

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

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

5.4. Certificates of Insurance. Contractor shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The certificates of insurance shall be attached hereto as Exhibit “D” and incorporated herein by this reference.

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

6.0. GENERAL PROVISIONS

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

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

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

6.3. Project Managers. City shall designat e a Project Manager to work directly with Contractor in the performance of this Agreement.

185
7 Care Ambulance Service Inc.

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

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

IF TO CONTRACTOR: IF TO CITY:

Care Ambulance Service, Inc.
1517 W. Braden Court
Orange, CA 92868
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Tel: (714) 288-3800 Tel: (714) 754-5603
Attn: Troy Hagen Attn: Jason Pyle

Courtesy copy to:

City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Attn: Finance Dept. | Purchasing

6.5. Drug-Free Workplace Policy. Contractor shall provide a drug-free workplace by complying with all provisions set forth in City’s Council Policy 100-5, attached hereto as Exhibit “E” and incorporated herein by reference. Contractor’s failure to conform to the requirements set forth in Council Policy 100-5 shall constitute a material breach of this Agreement and shall be cause for immediate termination of this Agreement by City.

6.6. Attorneys’ Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies here under or the enforcement of any of the terms, conditions, or provisions hereof.

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

6.8. Assignment. Contractor shall not volunt arily or by operation of law assign, transfer, sublet or encumber all or any part of Contractor ’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreemen t and cause for terminati on of this Agreement.

Regardless of City’s consent, no subletting or assignment shall release Contractor of Contractor’s obligation to perform all other obligations to be performed by Contractor hereunder for the term of this Agreement.
186
8 Care Ambulance Service Inc.

6.9. Indemnification and Hold Harmless. Contractor agrees to defend, indemnify, hold free and harmless the City, its elected of ficials, officers, agents and employees, at Contractor’s sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents and employees arising out of the performance of the Contractor, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligen ce 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 subcontractors 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.

6.10. Independent Contractor. Contractor is and shall be acting at all times as an independent contractor and not as an employee of City. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.

Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees, except as set forth in this Agreement. Contractor shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Contractor shall secure, at it s sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Contractor and its officers, agents, and employees, and all business licenses , if any are required, in connection with the services to be performed hereunder. Contractor shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and inte rest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor further agrees to indemnify and hold City harmless from any failure of Contractor to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reim bursement or indemnification arising under this paragraph.

6.11. 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 compet ent jurisdiction or the Californ ia Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for th e payment of any employee and/or employer contributions for PERS be nefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of an y 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 187
9 Care Ambulance Service Inc.

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 an d/or employee contributions for PERS benefits.

6.12. Cooperation. In the event any claim or action is brought against City relating to Contractor’s performance or services rendered under this Agreement, Contractor shall render any reasonable assistance and cooperation which City might require.

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

6.14. Public Records Act Disclosure. Contractor has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Contractor, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code section 6250 et seq .).

Exceptions to public disclosure may be those do cuments or information that qualify as trade secrets, as that term is defined in the California Government Code section 6254.7, and of which Contractor informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the discl osure of any trade secret includ ing, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.

6.15. Conflict of Interest. Contractor an d its officers, employees, associates and subcontractors, if any, will comply with all conflict of interest statutes of the State of California applicable to Contractor's services under this agreement, including, but not limited to, the Political Reform Act (Government Code sections 81000, et seq.) and Government Code section 1090.

During the term of this Agreement, Contractor and its officers, employees, associates and subcontractors shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Contractor is not currently performing work that would require Contractor or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute.

6.16. Responsibility for Errors. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to 188
10 Care Ambulance Service Inc.

Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor professional services necessary to rectify and correct the matter to the sole satisfaction of City and to particip ate in any meeting required with regard to the correction.

6.17. Prohibited Employment. Contractor wi ll not employ any regular employee of City while this Agreement is in effect.

6.18. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any su ch provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced.

6.19. Costs. Each party shall bear its ow n costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

6.20. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Contractor and no other part ies are intended to be direct or incidental beneficiaries of this Agreement and no third pa rty shall have any right in, under or to this Agreement.

6.21. Headings. Paragraphs and subparagra ph headings contained in this Agreement are included solely for convenience and are not in tended to modify, explain or to be a full or accurate description of the content thereof an d shall not in any way affect the meaning or interpretation of this Agreement.

6.22. Construction. The partie s have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

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

6.24. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

6.25. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, 189
11 Care Ambulance Service Inc.

which determination made by the pr esiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

6.26. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

6.27. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement.

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

CONTRACTOR

__________________________________ Date: __________________________ Signature

__________________________________ __________________________________ [Name and Title] Social Se curity or Taxpayer ID Number

C I T Y O F C O S T A M E S A

__________________________________ Date: __________________________ Thomas Hatch
City Manager

ATTEST:

__________________________________
Brenda Green
City Clerk

APPROVED AS TO FORM:

__________________________________ Date: ________________________ Thomas Duarte
City Attorney

190
12 Care Ambulance Service Inc.

APPROVED AS TO INSURANCE:

__________________________________ Date: ________________________ Ruth Wang
Risk Management

APPROVED AS TO CONTENT:

__________________________________ Date: ________________________ Jason Pyle
Project Manager

DEPARTMENTAL APPROVAL:

__________________________________ Date: ________________________ Daniel Stefano
Fire Chief

APPROVED AS TO PURCHASING:

__________________________________ Date: ________________________ Colleen O’Donoghue
Assistant Finance Director

191

EXHIBIT A

SCOPE OF WORK

192
Exhibit A - 1

SCOPE OF WORK FOR

AMBULANCE OPERATOR SERVICES

A. Introduction to Scope of Work

1. Authority

The core function of local government is to provide for the essential needs of the community it serves, which includes firefighting/rescue and ambulance/Emergency Medical Services (EMS) that are critical to the protection and preservation of life, health, and property (California Government Code, Title 5, Division 2, Part 1, Section 54980). This Request for Proposals (RFP) was authorized by the Fire Chief of the City of Costa Mesa Fire & Rescue Department (CMF&R) pursuant to the City of Costa Mesa ’s Section 54980 powers, and also according to the City ’s sovereign and absolute authority over the provision, administration, and operational control of all prehospital EMS within its jurisdiction including, but not limited to, emergency ambulance response and patient transport services at both the Basic Life Support and Advanced Life Support levels, pursuant to Section 1797.201 of the California Health & Safety Code (Division 2.5, Chapter 4, Article 1).

2. History

CMF&R has a rich history of protecting the citizens of Costa Mesa that formally began in 1956 when it became an official Fire Department staffed by professional firefighters. Along with all the other myriad critical functions performed by CMF&R, in 1975 the Paramedic Program was implemented along with the deployment of the City ’s first Rescue Ambulance staffed by Firefighter- Paramedics. Since that time, CMF&R has continuously adapted to changing community and operational needs by utilizing public- private partnerships with various ambulance companies, while at all times maintaining complete administrative and operational control over those companies regarding the ambulances operating within the City’s jurisdiction and/or as part of the City’s EMS System according to its authority and duty under sections 54980 and 1797.201.

3. Mission

One of the many critical functions of CMF&R is the provision of prehospital EMS.

The primary mission of CMF&R EMS is to optimize patient outcome by providing superior quality prehospital care in a proficient and compassionate manner. In furtherance of this goal, it is imperative that all aspects of the Costa Mesa EMS system and the patient “continuum of care” function as effectively and as efficiently as possible. The transportation of patients with medical emergencies from the incident scene to the appropriate emergency receiving center is one of the most important aspects of the EMS system and continuum of care. Therefore, all requirements and conditions listed in this document are written with the specific intent to ensure the most optimal emergency ambulance transportation system possible based on the following parameters:

193

Exhibit A - 2
a. Patient Care - Superior patient care provided proficiently and compassionately by Paramedics and EMTs who conduct themselves with integrity and humility.

b. Resource Utilization - Deployment of resources in a manner that is operationally efficient and maximally effective in achieving the best patient outcomes practical.

c. System Adaptability - Maximum flexibility for ongoing adaptation to the rapid changes in EMS/prehospital care specifically, and community health and safety generally.

d. Fiscal Prudence - Fair and reasonable cost recovery plan with a compassionate billing and collection policy that achieves an enhanced level of service and more efficient deployment model without increasing costs to the local taxpayer.

4. Philosophy

This RFP is an official and legal document written by CMF&R in our solemn role as advocates for, and protectors of, the citizens of Costa Mesa. It is important to know that, notwithstanding the strict standards and requirements enumerated, it is our sincere desire and intent to work with the prevailing organization in the spirit of friendship, cooperation, and mutual respect, and with sensitivity to its needs, interests, and concerns, as we strive together to provide the highest quality prehospital care possible.

5. Consultant

The City has contracted with A.P. Triton, LLC, as the primary and sole consultant to facilitate the administration of this RFP process due to their experience and expertise in the EMS industry with ambu lance transportation and billing issues, RFP processes, and prehospital care generally as a vital component of our nation’s healthcare system.

6. Scope of Work Overview

The City is soliciting proposals from qualified organizations to contract for the provision of ambulance operator staffing services, and ambulance transportation related services, for the Costa Mesa Fire & Rescue Department in furtherance of its EMS mission. All ambulance serv ices described in this RFP document and Scope of Work refer only to ground ambulance services. CMF&R desires to staff three (3) 24-hour units with dedicated EM Ts provided by Contractor. The City intends to bill and collect for all services provided by Contractor. The City shall provide city-owned ambulances for Contractor’s EMTs to operate. The Scope of Work to be provided by Contractor may be categorized into four (4) service tiers:

a. First Tier Service: Ambulance Operators

b. Second Tier Service: Reserve Ambulances
194

Exhibit A - 3

c. Third Tier Service: Surge Plan

d. Fourth Tier Service: Mutual Aid

B. Terminology – The terminology and definitions listed below are for use in this Scope of Work section exclusively and, therefore, may have different meanings than used or defined elsewhere.

ALS – Advanced Life Support. Paramedics are authorized to provide this higher level of care.

BLS – Basic Life Support. Both EMTs and Paramedics can provide this level of care.

CITY – The municipal government agency that humbly serves the citizens of Costa Mesa.

CMCC – Costa Mesa Communications Center. Dispatches Fire & Police for the City.

CMF&R – Costa Mesa Fire & Rescue Department.

CONTRACTOR – The organization that is selected and awarded a contract to provide the services (Scope of Work) described in this RFP document. Used interchangeably and synonymously with “Proposer” depending on the context.

EMS – Emergency Medical Services. Usually refers to the prehospital environment.

EMT – Emergency Medical Technician. State-certified to provide BLS level care.

AO – Ambulance Operator. An EMT employed by Contractor who is assigned to a CMF&R Rescue Ambulance.

MICP – Mobile Intensive Care Paramedic. State licensed to provide BLS and ALS level care.

OCEMS – Orange County Emergency Medical Services Agency.

PROPOSER – An organization that submits a proposal and competes in the RFP process. Used interchangeably and synonymously with “Contractor” depending on the context.

RESCUE AMBULANCE – An apparatus owned by the City and controlled by CMF&R that is capable of transporting patients with medical emergencies. Some Rescue Ambulances may be staffed by CMF&R Firefighter Paramedics, and some may be staffed by Contractor ’s EMTs (known as AOs: Ambulance Operators), based on the Department’s operational needs.

195

Exhibit A - 4
RFP – The “City of Costa Mesa Request for Proposal for Ambulance Operator Services” (i.e., this document).

PROPOSAL – The official response to this RFP by an organization that is competing in the RFP process that usually refers to a Proposer ’s formal written responses, but may also refer more broadly to all statements, materials, and actions by a Proposer as part of the official RFP process (e.g., Oral Presentation statements, compliance with RFP process procedural requirements, etc.)

C. General Requirements

1. Performance Expectations – Contractor shall perform all contractual services in accordance with both the letter and spirit of all requirements, conditions, specifications, expectations, and other parameters delineated in the contract, to the complete satisfaction of CMF&R. Al l statements made and actions taken by Contractor in the execution of contractual obligations shall be done in a prudent, professional, and courteous manner that supports and/or advances CMF& R’s EMS mission of optimizing patient outcome by providing superior quality patient care with proficiency and compassion. Most important, Contractor decision making and conduct shall always be guided by and reflect only the highest ethical standards, comport with the principles of fairness and equal justice, and demonstrate respect and dignity for all human beings.

2. Contract Performance Costs – Unless otherwise indicated, all expenses necessary to meet RFP/contract requirements and/or perform contractual services and obligations will be paid solely by Contractor.

3. Contract Performance Standards – During the contract period, Contractor will be responsible for ensuring that all facilities, properties, vehicles, materiel, and documents/records used or available for use in the performance of contractual services and/or in the execution of contractual obligations are in good condition, fully functional, and maintained in a clean, orderly, and organized manner.

4. Inter-Agency Communications – Contractor shall designate one person as its official liaison to CMF&R who will serve as the primary contact and interface, and whose office shall be in Orange County, as close to Costa Mesa as practical. In order to foster teamwork and efficiency, it is imperative that there be an outstanding working relationship an d excellent communications between agencies and agency liaisons.

5. Field Supervisor – Contractor shall ensure that, during each 24-hour shift, there is a designated Field Supervisor, stationed within Costa Mesa or at another location within Orange County as close to Costa Mesa as practical, who is immediately available by mobile phone and/or 800 MHz radio to the on-duty Battalion Chief or designee at all times during the shift. The Field Supervisor shall be able to respond to any incident within 20 minutes of being requested by CMF&R. All Field Supervisors must be qualified and capable of implementing and operating within the Incident Command System including the county MCI plan as well as all other OCEMS protocols.

196

Exhibit A - 5

6. Legal Compliance – Contractor shall ensure that ambulance personnel have sufficient understanding of, and are at all times in compliance with, all applicable EMS-related laws (federal, state, local), including, but not limited to:
1) California Health & Safety Code, Division 2.5; 2) California Code of Regulations, Title 22, Division 9, Chapte r 2; and 3) California Vehicle Code.

7. Protocols Compliance – Contractor shall ensure that ambulance personnel comply with all OCEMS and CMF&R protocols (i.e., official rules, policies, procedures, standing orders, guidelines, etc.), as well as Contractor ’s internal protocols. Contractor, including any individual ambulance operator, shall immediately bring to the attention of CMF&R any protocol that appears to conflict with other protocols in order to reconcile the inconsistency, contradiction, and/or ambiguity.

8. Time Standards – The Agreement issued as a result of this RFP will include a one hundred percent (100%) complian ce to the response time standards specified to all areas of the City and its operational areas.

9. Equality of Care – Contractor shall provide all services in the Scope of Work without regard to the patient's national or igin, ethnicity, color, religion, sexual orientation, gender, age, insurance status, or ability/inability to pay. Any violation of this policy will be deemed a major breach and grounds for immediate contract termination.

10. CQI Plan – Contractor shall develop and maintain a comprehensive and relevant Continuous Quality Improvement plan and system that compliments and interfaces with CMF&R’s CQI plan / quality management system

11. Continuing Education – Contractor shall ensure that relevant and frequent education and training courses are offered to assist field personnel in maintaining certification/licensure as defined in California Code of Regulations Title 22, Chapters 2, 4 and 11 and, to the extent possible, shall be built upon observation and findings derived from the Quality Assurance / Continuous Quality Improvement.

12. Pilot Programs / Research Projects – Contractor shall participate in all OCEMS- approved pilot programs or research projects as requested by CMF&R. Contractor agrees that their participation shall entail no additional cost to the City. Contractor further agrees that services provided under pilot programs or research projects shall be in addition to the other services described herein.

13. Comprehensive & Responsive Proposal – Proposals should fully demonstrate and explain how the Proposer would meet all the requirements and expectations specified in the RFP document, includ ing the Scope of Work and all other attachments and addendums. Although many items in this RFP document will have express language such as “proposals shall include…,” Proposers should not infer that just because such similar language is absent regarding other items that they can omit explanations of how they would satisfy the letter or intent of those items.

14. Incorporation by Reference – The Proposal submitted in response to this RFP will be retained and will be incorporated and referenced, and made a part of the 197

Exhibit A - 6
final Agreement, except that in the case of any conflicting provisions, the provisions contained in the final Agreement shall prevail.

15. Consultant Fees – Reimbursement for the Consultant utilized by CMF&R for the development and implementation for this RFP process shall not exceed $100,000.

D. First Tier Services: AMBULANCE OPERATORS

1. General – Contractor shall provide staffing for three (3) CMF&R Rescue Ambulance units for each 24-hour shift, 365 days per year, for a total of 26,280 yearly unit hours. Contractor shall ensure that all three Rescue Ambulances are at all times staffed by two (2) Emergency Medical Technicians (EMTs).

a. The Proposal shall describe the sta ffing model(s) that will be used to meet the minimum number of unit ho urs required. The Proposal shall include staffing models of 24-, 12-, and 8-hour shifts, and any additional innovative approaches that would meet the minimum number of unit hours required. Proposer shall provide a br eakdown of salaries and benefits for each model to ensure compliance with state and federal labor laws.

2. AO Eligibility & Selection Criteria – The Proposal shall describe the specific criteria that will be used to determine which EMTs are qualified to become a AO, and also the specific process by which qualified EMTs would be selected for assignment to a CMF&R Rescue Ambulance.

a. Staffing Principles – Contractor shall take all necessary steps, and make all reasonable efforts, to ensure that the EMTs on its AO eligibility list are well qualified, sufficiently experienced, proven reliable and responsible, and who possess the inte rpersonal characteristics and skills necessary for them to function effectively as part of the CMF&R team.

3. Credentials Tracking & Renewal – The Proposal shall describe the system that will be used to monitor expiration dates of required credentials for all AOs to prevent lapses in certification, and to facilitate the renewal process. Contractor shall be responsible for ensuring that all AO credentials — including, but not limited to, state EMT certification and OCEMS accreditation — are renewed in a timely manner. AOs with expired/lapsed credentials will be deemed a major breach and grounds for immediate contract termination.

4. Cognitive & Psychomotor Proficiency – The Proposal shall describe the education and training system that will be used to ensure that all EMTs employed by Contractor— AOs and otherwise— maintain proficiency in all relevant BLS- level clinical skills and knowledge, including all applicable OCEMS protocols.

5. General Employment Policies

a. Employee Wellness & Personnel Assistance Resources – The Proposal shall describe in detail the Proposer ’s Employee Wellness & Personnel Assistance programs and/or resources.

198

Exhibit A - 7
b. Criminal Background Check – Contractor shall comply with state EMS Authority and OCEMS criminal history check requirements for all of its employees who work in Orange County as EMTs. Contractor shall contact all references given on applications, including but not limited to, any former EMS employers.

c. Physical Fitness Testing & Training – The Proposal shall describe any physical fitness testing or training used as part of the initial hiring process and/or ongoing health maintenance.

d. Medical Examination / Health Screening – The Proposal shall describe the specific process used for pre-employment and/or ongoing screening.

e. OCEMS Protocols – The Proposal shall describe the process used to ensure that all ambulance personnel— AOs and otherwise— are sufficiently knowledgeable and proficient in all relevant OCEMS protocols.

f. Driver History – Contractor shall require all ambulance driver candidates in its employ to submit a current California Department of Motor Vehicles Driving Record Report as requested by CMF&R. Contractor shall utilize the California Department of Motor Vehicles Pull Notice Program for all ambulance personnel in its employ.

g. Driver Training Program – Contractor shall require all ambulance personnel in its employ to successfully complete an approved emergency ambulance driver- training program to ensure that ambulances are operated in a legal and safe manner. The driver-training program should be designed to verify driving proficiency upon hire and at reasonably spaced periodic intervals. The driver program shall meet or exceed industry standards. Contractor shall ensure that its vehicles are at all times operated in a safe manner.

h. Vehicle & Equipment Familiarity – Contractor shall ensure that all EMTs who staff any ambulance are thoroughly familiar with all aspects of vehicle operation, and the location and use of all on-board equipment and supplies.

This includes all aspects regarding the use of the MED-10 radio.

i. Recruitment & Retention – It is very important that Contractor attracts the highest quality EMTs in the industry as possible. The Proposal must describe Proposer’s compensation and benefits plans and provide at least a general indication as to how the plans compare to the other similar organizations in the county in terms of attracting and retaining EMTs. The Proposal must also describe Proposer’s recruitment strategy.

6. Uniforms & Personal Protective Equipment

a. Uniforms – AOs shall wear uniforms that are selected by CMF&R for the exclusive use by AOs when functioning as an on-duty AO on a CMF&R Rescue Ambulance. AO uniform requirements may be changed 199

Exhibit A - 8
at any time during the duration of the contract at the sole discretion of the Fire Chief.

b. Personal Protective Equipment (PPE) – Contractor shall ensure that AOs have the appropriate PPE that meets national safety standards for EMS personnel, to include helmet, reflective vest, brush jacket, leather gloves, eye protection, and ear/hearing protection.

c. Portable 800 MHz Radios – Contractor shall be responsible for, and bear all costs regarding, the provision of portable OCEMS-system compatible 800 MHz radios for each on-duty AO to enable AOs to communicate with CMF&R personnel for safety and operational reasons. Due to the importance of safety and good team communications, portable 800 MHz radios will be deemed part of the uniform for on–duty AOs.

d. Costs – Contractor or their employees shall bear all uniform and PPE related costs except where specified otherwise, including cleaning, maintenance, repair, and replacement. Before commencement of the contract period, CMF&R and Contractor will mutually agree on the specific brand/model/type of PPE to be used.

7. AO Appearance & Behavior

a. CMF&R Policies/Procedures – Contractor shall ensure that AOs adhere to all relevant CMF&R policies/procedures regarding appearance and behavior. CMF&R will provide Contractor copies of all relevant CMF&R policies/procedures before commencement of the contract period to give Contractor adequate time for the selection, assignment, and preparation of AOs.

b. General Appearance – Contractor shall ensure that AOs at all times look and act in a professional manner to instill confidence in the citizens we serve, and to preserve the reputation of CMF&R, the City of Costa Mesa, and the Fire Service/EMS profession generally.

c. Grooming & Hygiene – AOs shall be clean and well groomed at all times while on-duty or otherwise representing CMF&R, and exercise good personal hygiene habits in accordance with CMF&R policies, procedures, and standards.

d. Mental Alertness – AOs shall report for duty well rested, alert, and not under the influence of any substance, legal or illegal, that may impair their judgment and/or performance.

e. Physical Fitness – AOs shall keep themselves at a level of physical fitness sufficient to ensure they are capable of performing all the physical functions expected of an EMT and Ambulance Operator.

f. Conduct – AOs shall always act in a safe, professional, and courteous manner.

200
Exhibit A - 9
g. Advocacy – AOs are deemed part of the Costa Mesa EMS system, and are therefore expected to always act in the best interests of the Costa Mesa EMS system and the patients who depend on us.

8. Facilities
a. Ambulance Station / Crew Quarters – The Proposal shall describe in detail the facilities that will be use to comply with the terms of the contract and the delivery of the services.
b. Security – The Proposal shall describe the security plan/measures that will be used to adequately protect the personnel, equipment, supplies, and Rescue Ambulances while in quarters.
c. Inspections – The on-duty Battalion Chief or designee will have the authority, but not the obligation, to inspect all facilities, properties, vehicles, and documents/records used or available for use in the performance of contractual services and/or in the execution of contractual obligations. Contractor refusal to permit such an inspection will be deemed a major breach and grounds for immediate contract termination.

9. Operations
a. Dispatch – Contractor shall be solely responsible for obtaining, installing, and maintaining a ring-down telephone system as needed that directly links CMCC to all AO crews, and will be solely responsible for all installation, maintenance, repair, and other related costs necessary to ensure that the line remains operational at all times.
b. Incident Command & Patient Authority – Responsibility for patient care and authority to make assessment, treatment, and/or transport decisions vests with CMF&R personnel (Paramedics particularly, if on scene). AOs will work under the direction of the CMF&R Captain/Incident Commander and/or the Paramedics in charge of the patient and/or incident. AO actions should be in support of, and consistent with, CMF&R efforts, and AOs should respond to the directions of CMF&R personnel in a positive and affirmative manner.

10. Time Standards – The following ground ambulance time standards must be met at a compliance rate of at least 90% (fractile) by AO crews. Monetary penalties will be applied for non-compliance with time standards.

ALARM to ENROUTE INTERVAL, 07:00 - 20:00 ≤ 1 minute
ALARM to ENROUTE INTERVAL, 20:00 - 07:00 ≤ 2 minutes
ENROUTE to ON SCENE INTERVAL, CODE-3 ≤ 10 minutes
ENROUTE to ON SCENE INTERVAL, CODE-2 ≤ 15 minutes
201

Exhibit A - 10
E. Second Tier Services: RESERVE AMBULANCES

1. Reserve Ambulances – There will be times when CMF&R Rescue Ambulances staffed by AOs must be taken out of service for mechanical problems, routine maintenance, operational needs, or other various reasons. During these situations, Contractor must be able to immediately provide a fully operational emergency ambulance for any single or all AO crews until their City-owned Rescue Ambulance is put back into service.

a. The Proposal shall describe the capacity and plan for providing reserve ambulances in these situations.

2. Vehicle Specifications – The Proposal shall describe the specific vehicles that will be used as reserve ambulances for CMF&R

3. Minimum Required Equipment / Supplies / Inventory

a. On-Board 800 MHz Radio - Each reserve ambulance shall be equipped with an on-board 800 MHz radio.

b. Automatic Vehicle Locator (AVL) System – Each reserve ambulance shall be equipped with AVL hardware and software / GPS system that interfaces with CMCC / CMF&R.
c. Headset Communication System – Each reserve ambulance shall have a headset communication system that provides hearing protection during Code-3 transports and allows for communication between the ambulance driver (1 headset), and at least two CMF&R EMTs or Paramedics in the patient compartment (2 headsets).

d. Medical Equipment & Supplies Inventory – Contractor shall ensure that the medical equipment and supplies inventory of all reserve ambulances complies with OCEMS protocols.

e. Standardized Inventory – The Proposal shall describe the plan/system to ensure standardization of EMS equipment and supplies of rescue ambulances with the EMS equipment and supplies used by CMF&R.

f. Ambulance Supplies Restock System – Contractor shall be responsible for, and pay all costs in furtherance of, ensuring that all reserve ambulances are at all times equipped and supplied with the minimum required inventory. The Proposal shall describe the supply/restock system generally and explain how reserve ambulances will be restocked specifically.

4. Maintenance & Repair– Contractor shall be responsible and bear all costs for all routine preventive maintenance and repairs of reserve ambulances. Contractor shall adhere to its maintenance and maintenance records plan during the contract period. Disruption in service due to Contractor ’s non-compliance with the maintenance plan will be considered a major breach and grounds for immediate contract termination.

202

Exhibit A - 11
a. The Proposal shall describe the main tenance plan, vehicle service records system, and mechanism for allowing CMF&R to inspect vehicle service records.

5. Vehicle Replacement

a. General Replacement Policy - Whenever a reserve ambulance must be taken out of service for any reason (including mechanical failure and scheduled preventive maintenance) and for any length of time (temporarily or permanently), Contractor shall ensure that a replacement ambulance is immediately provided that meets the same requirements/specifications.

b. The Proposal shall describe the replacement ambulance plan, including the designations (unit number) and specifications and mileage of the planned replacement ambulances.

F. Third Tier Services: SURGE PLAN

1. Surge Capacity Defined – For purposes of this RFP and subsequent Agreement with the prevailing Proposer, Surge Capacity is defined as the maximum delivery of emergency ambulance response and transportation services that the City of Costa Mesa EMS System is capable of providing when all of its available and potential resources are mobilized. Both CMF&R and Contractor must have plans in place to handle routine forese eable surge situations (e.g., during periods of heavy call volume, including is olated Multiple Casualty Incidents), as well as larger scale sudden disaster situations or major Multiple Casualty Incidents affecting multiple EMS jurisdictions at the county or state levels.

2. Surge Plan – The Proposal shall describe the Surge Plan in all details, including additional costs, if any, and how those costs would be calculated.

3. Vehicle Specifications – Contractor may use any ambulance in its fleet for surge purposes so long as it meets or exceeds the requirements of the California Highway Patrol, the California Department of Motor Vehicles, the United States Department of Transportation, and the Orange County EMS Agency.

Ambulances used for surge purposes do not necessarily have to be Type III Dual Rear Wheel vehicles (i.e., they may be Type I, II, or III).

4. Minimum Required Equipment / Supplies / Inventory

a. On-Board 800 MHz Radio – Surge ambulances shall be equipped with an on- board 800 MHz radio
.
b. Medical Equipment & Supplies Inventory – Contractor shall ensure that the medical equipment and supplies inventory of all surge ambulances complies with OCEMS protocols.

c. Ambulance Supplies Restock System – Contractor shall be responsible for, and pay all costs in furtherance of, ensuring that all surge ambulances are at all times equipped and supplied with the minimum required inventory. 203

Exhibit A - 12
i. The proposal shall describe Proposer ’s supply/restock system and explain its plan for restocking surge ambulances.

ii. Since CMF&R desires to have as standardized an inventory as possible between agencies, Proposer has the option of describing in the proposal any recommendation it may have to utilize CMF&R’s main supplier (Bound Tree), and/or create a mechanism to restock from CMF& R’s EMS C entral Supply and reimburse CMF&R accordingly, and/or any other reasonable and creative idea. Such recommendations will be considered by CMF&R, but not necessarily implemented.

5. Special Events – CMF&R will sometimes utilize its AO-staffed Rescue Ambulances for non-emergency purposes that will normally be scheduled in advance on the CMF&R Master Calendar (e.g., sports, community education, training, etc.). During these special events, Contractor shall provide a backup ambulance and crew for the duration of the event, to cover for the Rescue Ambulance involved and allow them to participate without interruption, provided CMF&R gives Contractor sufficient advance notice. Rescue Ambulance crews participating in these events will be considered “in colo r,” which is a state of conditional availability that means they should not be dispatched to respond to an incident unless requested by the on-duty Battalion Chief.

6. Exclusivity Exception – Contractor will be the exclusive provider of all surge/backupemergency ambulance services for CMF&R except in exigent and extenuating circumstances when, in the sole discretion of CMF&R personnel, it is in the patie nt’s best interest to be transported by alternative means, which may include another ambulance company.

7. Data Collection & Reporting – Contractor shall track all relevant data from all surge/backup ambulance responses initiated by CMCC/CMF&R.

Contractor shall prepare and submit a report (electronic/e-mail preferred) to CMF&R on a quarterly basis. Before commencement of the contract period, CMF&R and Contractor will meet to discuss and agree on the reporting format and the specific information to be included. Each quarterly report shall include, but not necessarily be limited to, the following:

a. Individual Incident Data (for each incident in a given 3-month period) – Date, CMF&R Incident Number, Ambu lance Unit Number (indicate if another ambulance company was used), 911 Call Time, Alarm Time, Enroute Time, On Scene Time, At Patient Time, Scene Departure Time, At Hospital Time, Transfer of Care Time, Available Time, Alarm to Enroute Interval Time, Enroute to On Scene Interval Time.

b. Quarterly Incident Totals Data (includes all incidents during a given 3- month period) – Dispatches, Responses Upgraded to Code 3, Responses Cancelled Enroute, Ambulance Crew First At Patient (prior to CMF&R arrival), Dry Runs (arrived on scene but no transport), Resident BLS Transports, Resident ALS Transports, Non-Resident BLS Transports, Non- Resident ALS Transports, Responses Meeting Alarm to Enroute Interval Time Standard, Responses Exceeding Alarm to Enroute Interval Time 204

Exhibit A - 13
Standard, Responses Meeting Enroute to On Scene Interval Time Standard, Responses Exceeding Enroute to On Scene Interval Time Standard.

G. Fourth Tier Services: MUTUAL AID

1. Mutual Aid Plan – Contractor shall enter into an Agreement with a separate organization that is licensed, qualified, and capable of providing emergency ambulance response and transportation services for situations when there are no CMF&R or Co ntractor ambulances available. The Agreement between Contractor and the separate organization must be approved by the City before it may commence.

a. The Proposal shall describe the Mutual Aid plan/system in detail.

205

EXHIBIT B

CONTRACTOR’S PROPOSAL

206

EXHIBIT C

FEE SCHEDULE
207

FEE SCHEDULE

Compensation Package

After 2 Years After 5 Years
New Employee Employment Employment

Hourly Wage Lowest $13.25 h/r Lowest $13.72 h/r Lowest $14.16 (Straight Time) Highest $13.50 h/r Highest $13.97 h/r Highest $14.38 Median $13.25 h/r Median $13.72 h/r Median $14.16

Average number of hours per week for full time employee: 56

Average gross earning per year for full time employee: $47,125

Paid Vacation

Paid Holiday

Sick Leave
Paid

$1,166 days/year $1,756 days/year $2,379 days/year

11 days/year 11 days/year 11 days/year

N/A days/year N/A days/year N/A days/year
Continuing Ed. N/A hours/year N/A _hours/year N/A _hours/year Uniform
Allowance $ 1,000 /year $ 1,000 /year $ 1,000 /year

Tuition
Reimbursement $ 0 /year $ 0 /year $ 0 /year

Health Care

Medical 80 % covered 80 % covered 80 % covered

$ 1,400 deductible $ 1,400 deductible $ 1,400 deductible

Optical

Dental
0 %covered 0 %covered 0 %covered

0 %covered 0 %covered 0 %covered

Stock Options N/A
Profit Sharing N/A
Day Care Services N/A
Career Development N/A
Pension Plan ER Match 6% of annual gross wages
208

Proposed Operating Budget
Expenses

Personnel

EMT’s
Wages $ 918,000 (2018 wage rates)
Benefits $ 275,000

Other Personnel

Wages $ N/A
Benefits $ N/A

Subtotal $ 1,193,000

Vehicles

Gasoline $ N/A
Repair and Maintenance $ N/A
Equipment lease/depreciation $ N/A

Subtotal $ N/A

Medical Equipment/Supplies

Supplies $ N/A
Equipment lease/depreciation $ N/A
Maintenance and Repair $ N/A

Subtotal $ N/A

Other

Rents and leases $ N/A
Insurance $ 92,000
Utilities and telephone $ N/A
Office supplies and postage $ N/A
Professional services $ N/A
Taxes $ N/A
Uniforms $ 15,000
Admin $ 285,000
Overhead $ 182,000

Subtotal $ 574,000

Total Operating Expenses $ 1,767,000.00
209

Additional Expenses

(1) Reserve Ambulances (on as-needed basis)

Hourly cost of a Reserve Unit/Ambulance, 4 hour minimum $25.00 per hour

If City requires the use of a Reserve Unit/Ambulance, City shall pay Contractor for such use as follows:

x 0-60 days aggregate= $0 hourly rate
x 60- 90 days aggregate= 50% of Contractor’s hourly rate x 90+ aggregate days=100% of Contractor’s hourly rate

(2) Surge Unit/Ambulance EMT Crew (on as-needed basis)

Hourly cost of a Surge Unit/Ambulance EMT Crew, 1 hour minimum $115.00 per hour

Billing to City for a Surge Unit/Ambulance EMT Crew shall begin when City places a call to Contractor requesting Surge Unit/Ambulance EMT Crew assistance, as determined by City’s time stamp of such request. Total billing to City for such assistance shall be calculated from the time City makes the request for assistance until completion of the call for which City requested assistance, as determined by City’s time stamps for such call.

(3) Long-Term Front-Line Ambulance Usage

In the future, if City desires to utilize an ambulance from Contractor’s fleet as a front -line ambulance on a long-term basis in lieu of replacing a City ambulance, City shall pay to Contractor a monthly rate for such use, which shall be calculated based upon a five-year straight-line depreciation for such ambulance plus eight percent (8%).

(4) Temporary Housing of Station 1 Personnel

If construction of Station 1 is not completed prior to the Effective Date of this Agreement, Contractor shall house Contractor’s personnel assigned to Station 1 until Station 1 is completed and operational. Contractor shall provide such housing for up to sixty (60) days from the Effective Date of this Agreement at no cost to the City. If Station 1 is not operational within sixty (60) days from the Effective Date of this Agreement, City shall pay to Contractor housing costs for the Station 1 personnel as follows:

x $3,833 per month

The monthly rate set forth herein is inclusive of all costs associated with housing Contractor’s personnel assigned to Station 1, including but not limited to rent and utilities. The monthly rate charged to City shall be pro-rated based upon the number of days housing is required for the Station 1 personnel.

210

EXHIBIT D

CERTIFICATES OF INSURANCE

211

EXHIBIT E

CITY COUNCIL POLICY 100-5

212
Expenses
Personnel
EMT's
Wages $1,351,047 $1,391,578
Benefits $499,768 $518,223
Other Personnel
Wages N/A N/A
Benefits N/A N/A
Subtotal $1,850,815 $1,909,801
Vehicles
Gasoline N/A N/A
Repair and Maintenance N/A N/A
Equipment lease/depreciation N/A N/A
Subtotal N/A N/A
Medical Equipment/Supplies
Supplies N/A N/A
Equipment lease/depreciation N/A N/A
Maintenance and repair N/A N/A
Subtotal N/A N/A
Other
Rent and lease N/A N/A
Insurance $115,000 $115,000
Utilities and telephone N/A N/A
Office supplies and postage N/A N/A
Professional services N/A N/A
Taxes N/A N/A
Uniforms $19,200 $19,200
Admin $199,169 $199,169
Overhead $175,269 $175,269
Subtotal $508,638 $508,638
Total Operating expenses $2,359,453 $2,418,439
Falck Mobile Health (Care Ambulance Service)
Operating Budget for City of Costa Mesa
Three 24-hr units staff only
7/1/2024 - 6/30/2025 7/1/2025 - 6/30/2026
ATTACHMENT 3
213
Attachment 4
Additional Expenses
(1) Reserve Ambulances (on as-needed basis)
Hourly cost of a Reserve Unit/Ambulance, 4 hour minimum $25.00 per hour If City requires the use of a Reserve Unit/Ambulance, City shall pay Contractor for such use as follows:
• 0-60 days aggregate= $0 hourly rate
• 60-90 days aggregate= 50% of Contractor's hourly rate • 90+ aggregate days=100% of Contractor's hourly rate
(2) Surge Unit/Ambulance EMT Crew (on as-needed basis)
Hourly cost of a Surge Unit/Ambulance EMT Crew, 1 hour minimum $ 300.00 per hour** Billing to City for a Surge Unit/Ambulance EMT Crew shall begin when City places a call to Contractor requesting Surge Unit/Ambulance EMT Crew assistance, as determined by City's time stamp of such request, in accordance with 1.2 below. Total billing to City for such assistance shall be calculated from the time City makes the request for assistance as outlined in 1.2 and 1.3 below and determined by City's time stamps for such call.

1.1 **$300.00 per hour measured in 15-minute intervals at $75.00 per 15min.

1.2 Billing to City for Surge Unit will begin when the requested Falck unit goes “enroute”.

1.3 Should the assigned Falck unit be canceled within the first Five (5) minutes of going “enroute” then there will be no billing to the City. (3) Long-Term Front-Line Ambulance Usage
In the future, if City desires to utilize an ambulance from Contractor's fleet as a front -line ambulance on a long-term basis in lieu of replacing a City ambulance, City shall pay to Contractor a monthly rate for such use, which shall be calculated based upon a five- year straight -line depreciation for such ambulance plus eight percent (8%). (4) Temporary Housing of Station 1 Personnel
If construction of Station 1 is not completed prior to the Effective Date of this Agreement, Contractor shall house Contractor's personnel assigned to Station 1 until Station 1 is completed and operational. Contractor shall provide such housing for up to sixty (60) days from the Effective Date of this Agreement at no cost to the City. If Station 1 is not operational within sixty (60) days from the Effective Date of this Agreement, City shall pay to Contractor housing costs for the Station 1 personnel as follows:
• $3,833 per month
The monthly rate set forth herein is inclusive of all costs associated with housing Contractor's personnel assigned to Station 1, including but not limited to rent and utilities. The monthly rate charged to City shall be pro- rated based upon the number of days housing is required for the Station 1 personnel.
214
Attachment 5
215
216
217
ATTACHMENT 1

AMENDMENT NUMBER TWO

TO PROFESSIONAL SERVICES AGREEMENT WITH

FALCK MOBILE HEAL TH CORP (CARE AMBULANCE SERVICE)
This Amendment Number Two ("Amendment") is made and entered into this 4th day of June 2024 ("Effective Date") by and between the CITY OF COSTA MESA, a municipal corporation ("City") and FALCK MOBILE HEAL TH CORP., a California corporation, previously known as CARE AMBULANCE SERVICE, INC. ("Consultant").

WHEREAS, City and Consultant entered into an agreement on August 1, 2018 for Consultant to provide Ambulance Operator Services (the "Agreement"); and WHEREAS, Section 4.1 of the Agreement provides for a term of five (5) years, with the option to extend the Agreement for five (5) additional one (1) year periods; and WHEREAS, City and Consultant entered into Amendment Number One to the Agreement on July 18, 2024 to extend the term for one (1) year, through July 31, 2024; and
WHEREAS, City and Consultant desire to extend the term of the Agreement for two (2) additional one (1) year extensions and to increase the maximum annual compensation by 2.5% per year as set forth herein below.

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

1. The Term .of the Agreement set forth in Section 4.1 shall be extended for ·. two years through July 31, 2026.

2. The terms set forth in Section 2.1 Compensation, will reflect the first (1) year annual compensation of not to exceed $2,454,00.00. Annual Compensation Package for ambulance operator services of $2,359,453.00, as set forth in Attachment 3, attached hereto and incorporated herein by this reference.

3. The terms set forth in Section 2.1 Compensation will reflect the second (1) year annual compensation of not to exceed $2,510,00.00. Annual Compensation Package for ambulance operator services of $2,418,439.00 as set forth in Attachment 3, attached hereto and incorporated herein by this reference.

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

Falck PSA Amendment No. Two
1 ATTACHMENT 6
218

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

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date first written above.
~ L--
Signature
Date: D 1. t 1- z._<--/
f:3co+-+ c__ . wt:.,{L i2t:.&> ()A~/J0Dl~
Name and Title
[SIGNATURES CONTINUE ON FOLLOWING PAGE]

CITY OF COSTA MESA
Lori Ann Farrell Harrison
City Manager
ATTEST :

Date: , /.2<-1 /JoJ.~
Date: _ , __,_/_z _-s_._l 20_ 7.-_ L\ __
Date:

Falck PSA Amendment No. Two
2 ATTACHMENT 6
219
APPROVED AS TO INSURANCE:
/jJt4y
Risk Management
APPROVED AS TO CONTENT:
on Pyle, Assista
roject Manager
DEPARTMENTAL APPROVAL:
,el A. Stefano
Fire Chief
A:.,½£ TO PURCHASING:

Carol Molina \
Finance Director
Date: 7/tJ/Zf
Date: -----------
Date: ---1---;f/-=-----<?:dY;:..::c:..__/;~~ --=:..9__;__Lj_ Falck PSA Amendment No. Two
3 ATTACHMENT 6
220

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-224 Meeting Date: 4/21/2026
TITLE:

AWARD OF THE 2025-26 CITYWIDE ALLEY REHABILITATION PROJECT, CITY PROJECT NO. 25-17
DEPARTMENT: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: SEUNG YANG, P.E., CITY ENGINEER (714) 754-5335 RECOMMENDATION:

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 2025-26 Citywide Alley Rehabilitation Project, City Project No. 25-17.

3. Reject the apparent low bid submitted by Diamond Construction & Design, 638 Camino De Los Mares, #H130-513, San Clemente, California 92673, as non-responsive.

4. Award a Public Works Agreement (PWA) for construction to the second lowest bidder to Kalban, Inc., 26450 Ruether Avenue #201, Santa Clarita, California 91350 in the amount of $1,131,951 and authorize an additional ten percent (10%) contingency in the amount of $113,195 as needed for any unforeseen costs related to this project.

5. Authorize the City Manager and City Clerk to execute the PWA and future amendments to the agreement within Council authorized limits.

ENVIRONMENTAL DETERMINATION:

The proposed action is exempt from the California Environmental Quality Act (CEQA). The action involves an organizational or administrative activity of government that will not result in direct or indirect physical change in the environment. In addition, the proposed action is exempt under section 15301 relating to the operation, repair, maintenance, permitting, and/or minor alteration of existing public facilities.

BACKGROUND:

The City oversees and maintains nearly 130 public alleys. On November 20, 2007, a Citywide Alley Improvement Report was presented to the City Council. At that meeting, the Council approved a

Page 1 of 5 ends

221
File #: 26-224 Meeting Date: 4/21/2026
Improvement Report was presented to the City Council. At that meeting, the Council approved a Citywide Alley Improvement Priority List to address the City’salley system, beginning with those alleys in most need of improvements. Over the course of several years, 105 alleys have been reconstructed.

This next phase of this project involves the reconstruction of eleven (11) alleys at the following locations, noted with their identifiers:

1. Alley No. 19B - Joann Street Alley, located north of Joann Street between Alley No. 20 and Alley No. 21.

2. Alley No. 20 - Pomona Avenue Alley, located west of Pomona Avenue and north of Joann Street between Joann Street and Alley No. 19B.

3. Alley No. 21 - Meyer Place Alley, located west of Meyer Place and north of Joann Street between Joann Street and Alley No. 19B.

4. Alley No. 26 - Clubhouse Circle Alley, located north of Clubhouse Circle from approximately Kauai Place to Lanai Drive.

5. Alley No. 27 - Clubhouse Circle Alley, located north of Alley No. 26, starting from the northerly end of Clubhouse Road and ending near Mesa Verde Drive West.

6. Alley No. 45 - Fairview Road Alley, located west of McClintock Way between Baker Street and Logan Avenue.

7. Alley No. 53 - Ogle Street Alley, located between 17th Street and Ogle Street from Alley No. 52 to Westminster Avenue.

8. Alley No. 57 - Ogle Street Alley, located between Ogle Street and 16th Place from Westminster Avenue to Santa Ana Avenue.

9. Alley No. 84 - Broadway Alley, located west of Orange Avenue between Broadway and Magnolia Street.

10. Alley No. 98 - Cabrillo Alley, located west of Westminster Avenue between Cabrillo Street and 17th Street.

11. Alley No. 115 - Newport Boulevard Alley, located south of Santa Isabel Avenue between Newport Boulevard and Elden Avenue.

A location map has been included as Attachment 1. Following the completion of these alleys, there will remain fourteen (14) alleys to be reconstructed.

The alley rehabilitation process consists of removal of deteriorated asphalt concrete alley sections and construction of new Portland Cement Concrete (PCC) pavement sections, adjustment of water and sewer utilities to grade, removal of conflicting vegetation, and other incidental work needed to

Page 2 of 5 ends

222
File #: 26-224 Meeting Date: 4/21/2026
transition between new and existing improvements.

The contractor is 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.

In addition, staff will be utilizing the services of Z&K Consultants, Inc. (Z&K) to provide construction inspection and materials testing services for the project in the amount of $121,832 (Attachment 2).

The City Council previously awarded a Professional Services Agreement (PSA) to Z&K during its regularly scheduled meeting on June 20, 2023, to provide “on-call”staff support services for various project management and inspection services for Capital Improvement Program (CIP) projects.

ANALYSIS:

The City Clerk received and opened fifteen (15) bids for this project on January 27, 2026. Diamond Construction & Design, Inc. (Diamond), was the apparent low bidder with a base bid proposal of $983,609. Kalban, Inc. (Kalban) was the apparent second low bidder with a base bid proposal of $1,131,951. Nobest, Inc. was the apparent third low bidder with a bid proposal of $1,244,272.

Rejection of the Non-Responsive Bidder
Diamond submitted the apparent low bid, with a base bid proposal of $983,609. However, upon review of Diamond’sbid, staff determined that the bid contained multiple material deficiencies, which render it non-responsive. Staff notified Diamond of its determination on March 10, 2026 (Attachment 3). The bid did not conform to the terms of the bid package for the following reasons: (1) materially unbalanced pricing; (2) missing unit cost in bid proposal forms; (3) missing required initials on bid forms; (4) omission of signed addenda in the bid package; and (5) insufficient qualifications and experience.

Based on these material deficiencies, staff has determined that Diamond’sbid does not conform to the terms of the bid package and is, therefore, disqualified as non-responsive. As a result, staff recommends that the City Council rejects Diamond’s bid as non-responsive.

Selection of Lowest Responsible Bidder
Kalban submitted the apparent second low bid with a base bid proposal of $1,131,951. The Engineer’sestimate for the base bid is $1,755,842, and the average of the remaining fourteen (14) base bids received (without Diamond’s)amounted to $1,578,942.54. The bid summary is included as Attachment 4.

The proposal submitted by Kalban includes all the required documents necessary with the bid package and had no irregularities. Therefore, staff recommends that City Council award the PWA (Attachment 5) to Kalban as the lowest responsible bidder.

The license and references of Kalban have been checked and staff have found them to be in good standing. Kalban has successfully completed previous alley projects in the City of Costa Mesa, including the Harbor Boulevard Alley, Bernard Street Alley, Valencia Street Alley, and Walnut Street

Page 3 of 5 ends

223
File #: 26-224 Meeting Date: 4/21/2026
Alley.

Upon City Council award of the PWA, Kalban will furnish the necessary bonds and insurance, which will be approved as to form by the City. After the award and subsequent execution of the agreement, a “Notice to Proceed” will be issued.

Staff requests that City Council award the project to Kalban as the lowest responsible bidder.

ALTERNATIVES:

The alternative would be to reject all bids, re-advertise, and rebid the project. Staff believes that re- advertising and re-bidding the project will not result in lower bids and will delay the project.

FISCAL REVIEW:

The construction cost of this project, inclusive of the ten percent (10%) contingency, is $1,245,146.

An additional $121,832 will provide construction inspection and materials testing services, resulting in a total project cost of $1,366,978. Funding for this project is available in the Gas Tax Fund (201), which has a project balance of approximately $1.0 million, and the Measure M2 Fund (416), which has a project balance of approximately $0.74 million.

LEGAL REVIEW:

The City Attorney’sOffice has reviewed the agenda report, prepared the Public Works Agreement, and approves them both as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This project works toward achieving the following City Council goals:
· Maintain and Enhance the City’s Facilities, Equipment and Technology · Strengthen the Public’s Safety and Improve the Quality of Life 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 2025-26 Citywide Alley Rehabilitation Project, City Project No. 25-17.

3. Reject the apparent low bid submitted by Diamond Construction & Design, 638 Camino De Los Mares, #H130-513, San Clemente, California 92673 as non-responsive.

4. Award a Public Works Agreement (PWA) for construction to the second lowest bidder to Kalban, Inc., 26450 Ruether Avenue #201, Santa Clarita, California 91350 in the amount of $1,131,951 and authorize an additional ten percent (10%) contingency in the amount of $113,195 as needed

Page 4 of 5 ends

224
File #: 26-224 Meeting Date: 4/21/2026
for any unforeseen costs related to this project.

5. Authorize the City Manager and City Clerk to execute the PWA and future amendments to the agreement within Council authorized limits.

Page 5 of 5 ends

225
ATTACHMENT 1
226
ATTACHMENT 1
227
ATTACHMENT 1
228
ATTACHMENT 1
229
ATTACHMENT 1
230
Cost Proposal R1
March 17, 2026
Cristina Oquendo, Associate Engineer
City of Costa Mesa, Engineering Division
77 Fair Dr, Costa Mesa, CA 92626
Subject: Revised Cost Proposal for Construction Inspection and Materials Testing Services 2025 Alley Rehabilitation Project (Project No. 25-17)
Dear Ms. Oquendo,
Z&K Consultants, Inc. (Z&K) is pleased to submit this revised proposal to provide construction inspection and materials testing services for the City’s 2025 Alley Rehabilitation Project. We appreciate the opportunity to support the City.

The project generally includes removal and reconstruction of alley pavement, utility adjustments, traffic control, striping, stormwater BMP implementation, and associated improvements in accordance with the plans and specifications.

Z&K proposes to provide experienced construction inspection staff for the anticipated 90 working -day construction duration, with construction anticipated to begin in late March 2026. Our inspection services will be tailored to support the City throughout all phases of construction and will include, but not be limited to:
• Construction inspection services during active work
operations
• Verification of compliance with approved plans,
specifications, and City standards
• Oversight of demolition, grading, PCC placement, and
utility adjustments
• Traffic control, pedestrian access, and public safety monitoring
• Stormwater and water quality BMP compliance
oversight
• Coordination with City staff, contractors, utility
companies, and affected stakeholders
• Daily inspection reports with photo documentation and detailed field records
• Public coordination and responsiveness to residents
and businesses impacted by construction
Z&K will also provide materials testing and laboratory services through Converse Consultants. Converse will perform as- needed field and laboratory testing services, including in-place density and moisture testing, asphalt and concrete testing, and laboratory analysis to support construction quality assurance. Their services will be coordinated with the Contractor’s schedule to ensure timely testing, reporting, and compliance with project specifications. Materials testing services will be provided at competitive rates, offering a cost-effective solution for the City.

Z&K Consultants, Inc. brings extensive experience providing construction inspection and materials testing coordination services for alley, street, and pavement rehabilitation projects throughout Southern California. Our team is well-versed in managing construction activities in constrained urban environments while maintaining public access, safety, and clear communication with the community. A detailed fee estimate for the proposed services is provided below for the City’s review. Z&K understands that the project is in the early stages of contractor award and would be pleased to adjust staffing assumptions or scope as the project advances. Hourly rates are per the City’s approved on -call agreement and include an annual rate adjustment of three percent (3%).

Detailed Cost Proposal for Construction Inspection Services 2025 Alley Rehabilitation Project (Project No. 25-17), 90WD Scope of Services
Senior Construction
Inspector
$147.50/Hour
Material Testing
Services Total
Pre-Construction Services 16 - $2,360.00
Construction Services 720 $10,912.00 $117,112.00
Project Close Out 16 - $2,360.00
Total $110,920.00 $10,912.00 $121,832.00
If you have any questions or require additional information, please do not hesitate to contact us. We appreciate the opportunity to submit this proposal and look forward to working with the City on this project.

Sincerely,
Crystal Fraire, PE, President/Principal-in-Charge
17130 Van Buren Blvd. #122, Riverside, CA 92504
Phone (951) 310-7470 | [email protected]
ATTACHMENT 2
231
ATTACHMENT 3
232
ATTACHMENT 3
233
ATTACHMENT 3
234
Address

SANTA CLARITA

GARDEN GROVE

FULLERTON

ESCONDIDO

SANTA ANA
BREA

WILDOMAR

LONG BEACH

WOODLAND HILLS

SANTA ANA

LAKE FOREST
CORONA

SAN DIMAS

JURUPA VALLEY
** Bid Submitted by Diamond Construction & Design rejected as non-responsive $1,954,570.00
$2,107,653.00
$1,752,414.00
$1,780,000.00
$1,954,459.10
$1,390,995.00
$1,542,050.00
$1,598,773.00
$1,649,847.40

13. GRIGOLLA & SONS

14. LCR EARTHWORK &
ENGINEERING, CORP.

10. VIDO SAMARZICH, INC.

11. HARDY AND HARPER, INC.

12. ALL AMERICAN ASPHALT

6. BLACK ROCK CONSTRUCTION

7. VAN ENGINEERING INC.

8. PALP DBA EXCEL PAVING

9. DASH CONSTRUCTION COMPANY,
INC.

Bidder
$1,578,942.54

1.KALBAN

2. NOBEST INC.

AVERAGE
Total Base Bid
$1,131,951.00
$1,244,272.00

5. NIEVES GENERAL ENGINEERING,
INC. $1,348,390.00

3.TOWO ENTERPRISE INC. $1,324,015.00

4. LC PAVING & SEALING, INC. $1,325,806.00
ATTACHMENT 4

CITY OF COSTA MESA

PUBLIC WORKS DEPARTMENT
2025-26 ALLEY REHABILITATION PROJECT
(ALLEY NOS. 19B, 20, 21, 26, 27, 45, 53, 57, 84, 98 &115) CITY PROJECT NO. 25-17
BID OPENING RESULTS:
235
1 CITY OF COSTA MESA
PUBL

IC WORKS AGREEMENT FOR
CITY PROJECT NO. 25-17
T
HIS PUBLIC WORKS AGREEMENT (“Agreement”), dated April 21, 202 6 (“Effective Date”), is made by the CITY OF COSTA MESA, a political subdivision of the State of California (“CITY”), and KALBAN, INC. , a California corporation (“CONTRACTOR”).

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

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

1. SCO
PE OF WORK.

The s
cope of work generally consists of mobilization, reconstruction of alley pavements with new PCC pavement section; sawcut, removal and disposal of existing improvements, reconstruction of damaged miscellaneous PCC curb, gutter, driveway and alley intersection improvements, notification to businesses and residents; replacement of existing traffic striping, water quality BMP’s, and implementing traffic control as required to complete the rehabilitation and construction of Alley Nos. 19B, 20, 21, 26, 27, 45, 53, 57, 84, 98 and 115, within project limits.

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

The P
roject is known as the 2025 Alley Rehabilitation Project (Alley Nos. 19B, 20, 21, 26, 27, 45, 53, 57, 84, 98, & 115), City Project No. 25-17 (the “Project”), located within the City of Costa Mesa, CA.

2. CO
NTRACT DOCUMENTS.

The c
omplete Agreement consists of the following documents relating to the Project:

ATTACHMENT 5
236
Project and Specification No. 25-17
2 (a) This Agreement;

(b) CONTRACTOR’s bid, attached hereto as Exhibit A and incorporated herein;

(c) Bid package, including, but not limited to, notice inviting bids, Addendum No. One, complete plans, profiles, detailed drawings and specifications, general provisions and special provisions. The bid package is attached hereto as Exhibit B and 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 Representatives are Cristina Oquendo and Seung Yang, referred to collectively 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.

ATTACHMENT 5
237
Project and Specification No. 25-17
3 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 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 One Million One Hundred Thirty-One Thousand Nine Hundred Fifty-One Dollars and Zero C ents ($1,131,951.00) plus a ten percent (10%) contingency.

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 paid and providing for a five percent (5%) retention. Upon approval of the progress payment order ATTACHMENT 5
238
Project and Specification No. 25-17
4 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 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 the 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.

ATTACHMENT 5
239
Project and Specification No. 25-17
5 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 Ninety (90) working days from the date set in the Notice to Proceed or the first day of commencement of the Work, whichever occurs first.

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 shall 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 W ork 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 Four Thousand Two Hundred Dollars ($4,200.00) as liquidated damages for each calendar day beyond the date provided for the completion of such work.

ATTACHMENT 5
240
Project and Specification No. 25-17
6 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.

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 it, 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 ATTACHMENT 5
241
Project and Specification No. 25-17
7 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 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 shal l 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 the 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 sufficient 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 surety 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 Insurance 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, ATTACHMENT 5
242
Project and Specification No. 25-17
8 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 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 and its respective 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 subcontractors are specifically named or otherwise asserted to be liable. Notwithst anding 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.

ATTACHMENT 5
243
Project and Specification No. 25-17
9 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 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 and their 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 property 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 Million 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 ATTACHMENT 5
244
Project and Specification No. 25-17
10 ($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 workers’ compensation insurance policy against the CITY, its officers, agents, employees, and volunteers arising from work performed by CONTRAC TOR 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 employer’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 ATTACHMENT 5
245
Project and Specification No. 25-17
11 given to CITY.”

(iii) Other Insurance: “CONTRACTOR’s insurance coverage shall be primary insurance as respects the City of Costa Mesa, and 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 and its officers, officials, agents, employees, and volunteers.

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

(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 additional 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 ATTACHMENT 5
246
Project and Specification No. 25-17
12 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. CONTRACTOR 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 workday 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 worked 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 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 actual 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.

ATTACHMENT 5
247
Project and Specification No. 25-17
13 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. ADDITIONAL CONTRACT PROVISIONS – State. Contractor shall comply with all of the terms and conditions of the documents included in Exhibit “A”, specifically, State of California – Natural Resources Agency Department of Parks and Recreation Grant Contract, attached hereto and incorporated herein by this reference as though set forth in full.

25. 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.

CONTRACTOR shall conform to all the requirements of CITY’s Policy No. 100- 5, attached hereto. Failure to establish a program, notify employees, 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.

26. NON–DISCRIMINATION.

In performing this Agreement, CONTRACTOR will not engage in, nor permit its agents to engage in, discrimination in employment 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.

27. 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.

28. NOTICES.

It shall be the duty and responsibility of CONTRACTOR 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, ATTACHMENT 5
248
Project and Specification No. 25-17
14 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: Cristina Oquendo/Seung Yang

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

Kalban, Inc.
26450 Ruether Avenue, Suite 201
Santa Clarita, CA 91350
Attn: Matthew Lawrence, Vice President/Manager

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

_____________________________
_______________________________
_______________________________
Attn: _________________________

29. 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.

30. P ERS 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 ATTACHMENT 5
249
Project and Specification No. 25-17
15 or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of CITY.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, 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.

31. 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.

32. GOVERNING LAW.

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.

33. 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.

34. 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.

35. 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.

ATTACHMENT 5
250
Project and Specification No. 25-17
16 36. 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.

37. 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.

38. COUNTERPARTS.

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.

39. 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.

40. EXECUTIVE ORDER N-6-22 RUSSIA SANCTIONS.

On March 4, 2022, Governor Gavin Newsom issued Executive Order N -6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. "Economic Sanctions" refers to sanctions imposed by the U.S. government in response to Russia's actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. This Executive O rder extends to recipients of any State Grants (Grantee).

Grantees include those who have contracted or will contract to receive State grants funds.

Accordingly, should the State determine that a Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide the Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar days to provide a written response. Termination of any contract found to be in violation of this Executive Order shall be at the sole discretion of the State.

[Signature page follows.]
ATTACHMENT 5
251
Project and Specification No. 25-17
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: _____________________ Cecilia Gallardo-Daly
City Manager

CONTRACTOR

__________________________________ Date: _____________________ Signature

__________________________________
Name and Title

ATTEST:

__________________________________ Date: _____________________ Brenda Green
City Clerk

APPROVED AS TO FORM:

__________________________________ Date: _____________________ Kimberly Hall Barlow
City Attorney

ATTACHMENT 5
252
Project and Specification No. 25-17
18 APPROVED AS TO INSURANCE:

__________________________________ Date: _____________________ Ruth Wang
Risk Management

APPROVED AS TO PURCHASING:

__________________________________ Date: _____________________ Finance Director

DEPARTMENTAL APPROVAL:

__________________________________ Date: _____________________ Raja Sethuraman
Public Works Director

__________________________________ Date: _____________________ Cristina Oquendo
Project Manager

__________________________________ Date: _____________________ Seung Yang
City Engineer

ATTACHMENT 5
253

Costa Mesa City CouncilApril 21, 2026

Costa Mesa City Council
April 21, 2026