Agenda packet — Costa Mesa City Council, October 6, 2026 (part 6 of 6)

COST PROPOSAL 1

1. Calculate average hourly rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) Direct Labor
Subtotal
per Cost
Proposal
Total Hours
per Cost
Proposal
Avg Hourly
Rate
$ 200,292.60 / 3151 = $63.56 Year 1 Avg Hourly Rate

2. Calculate hourly rate for all periods (Increase the Average hourly rate for a period by proposed escalation %) Avg Hourly
Rate
Proposed
Escalation
Year 1 $63.56 + 5% = $66.74
Year 2 $66.74 + 5% = $70.08
Year 3 $70.08 + 5% = $73.58 Year 4 Avg Hourly Rate
Year 4 $73.58 + 5% = $77.26 Year 5 Avg Hourly Rate
Estimated %
Completed
Each Period
Total Hours
per Cost
Proposal
Total Hours
per Period
Year 1 100.00% * 3151 = 3151 Estimated Hours Year 1
Year 2 0.00% * 3151 = 0 Estimated Hours Year 2
Year 3 0.00% * 3151 = 0 Estimated Hours Year 3
Year 4 0.00% * 3151 = 0 Estimated Hours Year 4
Year 5 0.00% * 3151 = 0 Estimated Hours Year 5
Total 100% Total = 3151

4. Calculate Total Costs including Escalation (Multiply average hourly rate by the number of hours) Avg Hourly
Rate
Estimated
Hours
(calculated above) (calculated
above)
Year 1 $63.56 * 3151 = $200,292.60 Estimated Hours Year 1 Year 2 $66.74 * 0 = $0.00 Estimated Hours Year 2
Year 3 $70.08 * 0 = $0.00 Estimated Hours Year 3
Year 4 $73.58 * 0 = $0.00 Estimated Hours Year 4
Year 5 $77.26 * 0 = $0.00 Estimated Hours Year 5
= $200,292.60
= $200,292.60
= $0.00 Transfer to Page 1
Total Direct Labor Cost with Escalation
Direct Labor Subtotal before escalation
Estimated total of Direct Labor Salary Increase

3. Calculate estimated hours per year (Multiply estimate % each period by total hou Cost
Per Period
5 Year
Contract Duration
Year 2 Avg Hourly Rate
Year 3 Avg Hourly Rate
COST PROPOSAL 1

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (CALCULATIONS FOR ANTICIPATED SALARY INCREASES)

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COST PROPOSAL 1
Name: Title*:

Signature: Date of Certification (mm/dd/yyyy): 8/20/2026 Email: Phone Number:

Address:

List services the consultant is providing under the proposed contract:
[email protected] 916-571-1017
555 Capital Mall, Suite 300, Sacramento, CA, 95814
*An individual executive or financial officer of the consultant’s or subconsultant’s organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

Engineering Services

5. 23 Code of Federal Regulations Part 172 - Procurement, Management, and Administration of

6. 48 Code of Federal Regulations Part 9904 - Cost Accounting Standards Board (when applicable) All costs must be applied consistently and fairly to all contracts. All documentation of compliance must be retained in the project files and be in compliance with applicable federal and state requirements. Costs that are noncompliant with the federal and state requirements are not eligible for reimbursement.

Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Prime Consultant or Subconsultant Certifying:

Fareed Pittalwala Vice President
Certification of Direct Costs:

I, the undersigned, certify to the best of my knowledge and belief that all direct costs identified on the cost proposal(s) in

1. Generally Accepted Accounting Principles (GAAP)

2. Terms and conditions of the contract

3. Title 23 United States Code Section 112 - Letting of Contracts

4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Procedures COST PROPOSAL 1

Page 3 of 3 ends

Inspector General
California Department of Transportation
Certification of Indirect Costs and Financial Management System (Note: If a Safe Harbor Indirect Cost Rate is approved, this form is not required) Consultant’s Full Legal Name:

Important: Consultant means the individual or consultant providing engineering and design related services as a party of a contract with a recipient or sub-recipient of Federal assistance. Therefore, the Indirect Cost Rate(s) shall not be combined with its parent company or subsidiaries.

Indirect Cost Rate (ICR):

Combined Rate: Or
Facilities Capital Cost of Money (if applicable):

Fiscal Period:*
* Fiscal period is annual one year applicable accounting period that the ICR was developed (not the contract period). The ICR is based on the to the best of my knowledge and belief that:
• All costs included in the cost proposal to establish the ICR(s) are allowable in accordance with the cost principles of the Federal Acquisition Regulation (FAR) 48, Code of Federal Regulations (CFR), Chapter 1, Part 31 (48 CFR Part 31)
• The cost proposal does not include any costs which are expressly unallowable under the cost principles of 48 CFR Part 31
• The accounting treatment and billing of prevailing wage delta costs are consistent with our prevailing wage policy as either direct labor, indirect costs, or other direct costs on all federally-funded A&E Consultant Contracts. •
I am providing the required and applicable documents as instructed on the Financial Document Review Request form.

Financial Management System:
records, and internal control adequate to demonstrate that costs claimed have been incurred, appropriately accounted for, are allocable to the contract, and comply with the federal requirements as set forth in Title 23 United States Code (U.S.C.) Section 112(b)(2); 48 CFR Part 31.201-2(d); 23 CFR, Chapter 1, Part 172.11(a)(2); and all applicable state and federal rules and regulations. • Account numbers identifying allowable direct, indirect, and unallowable cost accounts; • Ability to accumulate and segregate allowable direct, indirect, and unallowable costs into separate cost accounts;
1 Kimley-Horn and Associates, Inc.
195.87 175.19

0.88 01/01/2025 - 12/31/2025
1084
• Ability to accumulate and segregate allowable direct costs by project, contract and type of cost; • • Ability to account and record costs consistently and to ensure costs billed are in compliance with FAR; • Ability to ensure and demonstrate costs billed reconcile to general ledgers and job costing system; and • Ability to ensure costs are in compliance with contract terms and federal and state requirement Cost Reimbursements on Contracts:

I also understand that failure to comply with 48 CFR Part 16.301-3 or knowingly charge unallowable costs to Federal-Aid Highway Program (FAHP) contracts may result in possible penalties and sanctions as provided by the following:
• Sanctions and Penalties - 23 CFR Part 172.11(c)(4)
• False Claims Act - Title 31 U.S.C. Sections 3729-3733 • Statements or entries generally - Title 18 U.S.C. Section 1001 • Major Fraud Act - Title 18 U.S.C. Section 1031
All A&E Contract Information:
• Total participation amount ___________________ on all State and FAHP contracts for Architectural & • The number of states in which the consultant does business is • Years of consultant’s experience with 48 CFR Part 31 is • Cognizant ICR Audit Local Govt ICR Audit
Caltrans ICR Audit
CPA ICR Audit Federal Govt ICR Audit
I, the undersigned, certify all of the above to the best of my knowledge and belief and that I have reviewed the ICR Schedule to determine that any costs which are expressly unallowable under the Federal cost principles have been removed and comply with Title 23 U.S.C. Section 112(b)(2), 48 CFR Part 31, 23 CFR Part 172, and all applicable state and federal rules and regulations. I also certify that I understand that all documentation of compliance must be retained by the consultant. I hereby acknowledge that costs that are noncompliant with the federal and state requirements are not eligible for reimbursement and must be returned to Caltrans.

Name ** Title**:

Signature: Date:

Phone**: Email**:
establish the indirect cost rate.

Note: Both prime and subconsultants as parties of a contract must complete their own forms. Caltrans will not Audits and Investigations.
2 406,420,412.00
50 25+
Tammy Flanagan Chief Financial Officer
(919) 677-2016 [email protected]
05/27/2026
1085
COST PROPOSAL 1
Note: Mark-ups are Not Allowed
Consultant
Project No. Contract No. Date 9/10/2026

DIRECT LABOR
Hours
41 182
25 291

LABOR COSTS
a) Subtotal Direct Labor Costs
b) Anticipated Salary Increases (see Anticipated Salary Increases page for calculations) c) Total Direct Labor Costs [(a) + (b)] $ 23,913.00

INDIRECT COSTS
d) Fringe Benefits ( Rate: 0.00% ) e) Total Fringe Benefits [(c) x (d)] $ - f) Overhead ( Rate: 139.94% ) $ 33,463.85
h) General and Administrative ( Rate: ) i) Gen & Admin [(c) x (h)] $ - j) Total Indirect Costs [(e) + (g) + (i)] $ 33,463.85

FIXED FEE
k) TOTAL FIXED FEE [(c) + (j)]* fixed fee 10% ] $ 5,737.69 Quantity Unit
1052.63 1
1 1
21 l) TOTAL OTHER DIRECT COSTS $ 9,625.69
Subconsultant 1: $
$ -
$ 9,625.69
$ 72,740.23
Classification/Title Name Actual Hourly Rate Total
COST PROPOSAL 1

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)
Arellano Associates, Inc
Creative Lead Kyle Santiago $59.00 $ 1,475.00
Project Coordinator Noah Kim $33.00 $ 9,603.00
Sr. Project Manager Jessica Harleaux $80.00 $ 3,280.00
Sr. Project Coordinator Jennifer Velazquez $52.50 $ 9,555.00 $ -
$ -
Mileage/Parking (up to 2 AA staff at up to 5 inperson events) $0.76 $ 800.00 Digital Engagement Tools/Paid Advertising $400.00 $ 400.00 $ 23,913.00
$ -
g) Overhead [(c) x (f)
l) CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary) Description of Item Unit Cost Total
(n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l) + (m)] TOTAL COST [(c) + (j) + (k) + (n)]
m) SUBCONSULTANTS' COSTS (Add additional pages if necessary) (m) TOTAL SUBCONSULTANS' COSTS
Direct Mailers (up to 4,000 properties; one round of
distributions) $ 4,125.69
Printing (up to 12, 36x48" boards; up to 30
evergreen lawn signs; up to 6 evergreen banners; up
to 200 fact sheets; up to 250 flyers total) $ 3,700.00
Outreach Supplies/Refreshments/Incentives (up to 2
rounds) $300.00 $ 600.00
Prime Consultant Subconsultant 2nd Tier Subconsultant

Page 1 of 3 ends

January 2020
CML-5312(112)
1086
COST PROPOSAL 1
Direct Labor
Subtotal per
Cost
Proposal
Total Hours
per Cost
Proposal
Avg Hourly
Rate
$ 23,913.00 / 539 = $44.37 Year 1 Avg Hourly Rate
Avg Hourly
Rate
Proposed
Escalation
Year 1 $44.37 + 5% = $46.58
Year 2 $46.58 + 5% = $48.91
Year 3 $48.91 + 5% = $51.36 Year 4 Avg Hourly Rate
Year 4 $51.36 + 5% = $53.93 Year 5 Avg Hourly Rate

3. Calculate estimated hours per year (Multiply estimate % each period by total hours) Estimated %
Completed
Each Period
Total Hours
per Cost
Proposal
Total Hours
per Period
Year 1 100.00% * 539 = 539 Estimated Hours Year 1
Year 2 0.00% * 539 = 0 Estimated Hours Year 2
Year 3 0.00% * 539 = 0 Estimated Hours Year 3
Year 4 0.00% * 539 = 0 Estimated Hours Year 4
Year 5 0.00% * 539 = 0 Estimated Hours Year 5
Total 100% Total = 539
Avg Hourly
Rate
Estimated
Hours
(calculated
above)
(calculated
above)
Year 1 $44.37 * 539 = $23,913.00 Estimated Hours Year 1 Year 2 $46.58 * 0 = $0.00 Estimated Hours Year 2
Year 3 $48.91 * 0 = $0.00 Estimated Hours Year 3
Year 4 $51.36 * 0 = $0.00 Estimated Hours Year 4
Year 5 $53.93 * 0 = $0.00 Estimated Hours Year 5
= $23,913.00
= $23,913.00
= $0.00 Transfer to Page 1
COST PROPOSAL 1
Cost
Per Period
Total Direct Labor Cost with Escalation
Year 2 Avg Hourly
Year 3 Avg Hourly
Direct Labor Subtotal before escalation
Estimated total of Direct Labor Salary Increase

1. Calculate average hourly rate for 1st year of the contract (Direct Labor Subtotal divided by total hours)

2. Calculate hourly rate for all periods (Increase the Average hourly rate for a period by proposed escalation %)

4. Calculate Total Costs including Escalation (Multiply average hourly rate by the number of hours)

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (CALCULATIONS FOR ANTICIPATED SALARY INCREASES)
5 Year
Contract Duration

Page 2 of 3 ends

January 2020
1087
COST PROPOSAL 1
Name:

Signature:

Email:

Address:

List services the consultant is providing under the proposed contract:
5851 Pine Avenue, Suite A, Chino Hills, CA 91709
*An individual executive or financial officer of the consultant’s or subconsultant’s organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

Public outreach, communications, stakeholder engagement Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Rate(s).

Prime Consultant or Subconsultant Certifying:

Genoveva L. Arellano Title*: President & CEO
Date of Certification (mm/dd/yyyy): 9/10/2026
[email protected] Phone Number: (909) 627-2974

2. Terms and conditions of the contract

3. Title 23 United States Code Section 112 - Letting of Contracts

4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Procedures

5. 23 Code of Federal Regulations Part 172 - Procurement, Management, and Administration of

COST PROPOSAL 1
Certification of Direct Costs:

I, the undersigned, certify to the best of my knowledge and belief that all direct costs identified on the cost proposal(s) in this contract are actual, reasonable, and allocable to the contract in accordance with the contract terms and the following requirements:

1. Generally Accepted Accounting Principles (GAAP)

Page 3 of 3 ends

January 2020
1088
&HUWL¿FDWLRQRI,QGLUHFW&RVWVDQG)LQDQFLDO0DQDJHPHQW6\VWHP,QGHSHQGHQW2I¿FHRI$XGLWVDQG,QYHVWLJDWLRQV5HYLVHG
Inspector General
California Department of Transportation
Certification of Indirect Costs and Financial Management System (Note: If a Safe Harbor Indirect Cost Rate is approved, this form is not required) Consultant’s Full Legal Name:

Indirect Cost Rate (ICR):

Combined Rate: Or
+RPH2ႈFH5DWH
DQG)LHOG2ႈFH5DWH
LIDSSOLFDEOH

Facilities Capital Cost of Money (if applicable):

Fiscal Period:*
* Fiscal period is annual one year applicable accounting period that the ICR was developed (not the contract period). The ICR is based on the FRQVXOWDQW¶VRQH\HDUDSSOLFDEOHDFFRXQWLQJSHULRGIRUZKLFKILQDQFLDOVWDWHPHQWVDUHUHJXODUO\SUHSDUHGE\WKHFRQVXOWDQW ,KDYHUHYLHZHGWKHSURSRVDOWRHVWDEOLVKDQ,&5
V
IRUWKHILVFDOSHULRGDVVSHFLILHGDERYHDQGKDYHGHWHUPLQHG to the best of my knowledge and belief that:
• All costs included in the cost proposal to establish the ICR(s) are allowable in accordance with the cost principles of the Federal Acquisition Regulation (FAR) 48, Code of Federal Regulations (CFR), Chapter 1, Part 31 (48 CFR Part 31)
• The cost proposal does not include any costs which are expressly unallowable under the cost principles of 48 CFR Part 31
• The accounting treatment and billing of prevailing wage delta costs are consistent with our prevailing wage policy as either direct labor, indirect costs, or other direct costs on all federally-funded A&E Consultant Contracts.
• $OONQRZQPDWHULDOWUDQVDFWLRQVRUHYHQWVWKDWKDYHRFFXUUHGVXEVHTXHQWWR\HDUHQGDIIHFWLQJWKHFRQVXOWDQW¶V RZQHUVKLSRUJDQL]DWLRQDQGLQGLUHFWFRVWUDWHVKDYHEHHQGLVFORVHGDVRIWKHGDWHRIWKLVFHUWLILFDWLRQ I am providing the required and applicable documents as instructed on the Financial Document Review Request form.

Financial Management System:
2XUODERUFKDUJLQJMREFRVWLQJDQGDFFRXQWLQJV\VWHPVPHHWWKHVWDQGDUGVIRU¿QDQFLDOUHSRUWLQJDFFRXQWLQJ records, and internal control adequate to demonstrate that costs claimed have been incurred, appropriately accounted for, are allocable to the contract, and comply with the federal requirements as set forth in Title 23 United States Code (U.S.C.) Section 112(b)(2); 48 CFR Part 31.201-2(d); 23 CFR, Chapter 1, Part 172.11(a)(2); and all applicable state and federal rules and regulations. 2XU¿QDQFLDOPDQDJHPHQWV\VWHPKDVWKHIROORZLQJDWWULEXWHV

• Account numbers identifying allowable direct, indirect, and unallowable cost accounts; • Ability to accumulate and segregate allowable direct, indirect, and unallowable costs into separate cost accounts;
1 Arellano Associates, Inc.
139.94
1/1/2024 - 12/31/2024
1089
&HUWL¿FDWLRQRI,QGLUHFW&RVWVDQG)LQDQFLDO0DQDJHPHQW6\VWHP,QGHSHQGHQW2I¿FHRI$XGLWVDQG,QYHVWLJDWLRQV5HYLVHG
• Ability to accumulate and segregate allowable direct costs by project, contract and type of cost; • ,QWHUQDOFRQWUROVWRPDLQWDLQLQWHJULW\RIILQDQFLDOPDQDJHPHQWV\VWHP

• Ability to account and record costs consistently and to ensure costs billed are in compliance with FAR; • Ability to ensure and demonstrate costs billed reconcile to general ledgers and job costing system; and • Ability to ensure costs are in compliance with contract terms and federal and state requirementV Cost Reimbursements on Contracts:

Cognizant ICR Audit Local Govt ICR Audit
Caltrans ICR Audit
CPA ICR Audit Federal Govt ICR Audit
I, the undersigned, certify all of the above to the best of my knowledge and belief and that I have reviewed the ICR Schedule to determine that any costs which are expressly unallowable under the Federal cost principles have been removed and comply with Title 23 U.S.C. Section 112(b)(2), 48 CFR Part 31, 23 CFR Part 172, and all applicable state and federal rules and regulations. I also certify that I understand that all documentation of compliance must be retained by the consultant. I hereby acknowledge that costs that are noncompliant with the federal and state requirements are not eligible for reimbursement and must be returned to Caltrans.

Name
** Title**:

Signature: Date:

Phone**: Email**:

$QLQGLYLGXDOH[HFXWLYHRU¿QDQFLDORႈFHURIWKHFRQVXOWDQW¶VRUVXEFRQVXOWDQW¶VRUJDQL]DWLRQDWDOHYHOQRORZHUWKDQD 9LFH3UHVLGHQWD&KLHI)LQDQFLDO2ႈFHURUHTXLYDOHQWZKRKDVDXWKRULW\WRUHSUHVHQWWKH¿QDQFLDOLQIRUPDWLRQXVHGWR establish the indirect cost rate.

Note: Both prime and subconsultants as parties of a contract must complete their own forms. Caltrans will not SURFHVVORFDODJHQF\¶VLQYRLFHVXQWLODFRPSOHWHIRUPLVDFFHSWHGDQGDSSURYHGE\WKH,QGHSHQGHQW2ႈFHRI Audits and Investigations.
2 7,000,000.00
1 15
Genoveva L. Arellano
✔
President & CEO
✔
(909) 627-2974 [email protected]
08/24/2026
1090
COST PROPOSAL 1
Note: Mark-ups are Not Allowed
Consultant
Project No. Contract No. Date 8/20/2026

DIRECT LABOR
Hours
2 24
42 30

LABOR COSTS
a) Subtotal Direct Labor Costs
b) Anticipated Salary Increases (see Anticipated Salary Increases page for calculations) c) Total Direct Labor Costs [(a) + (b)] $ 5,176.10

INDIRECT COSTS
d) Fringe Benefits ( Rate: 79.00% ) e) Total Fringe Benefits [(c) x (d)] $ 4,089.12 f) Overhead ( Rate: 91.00% ) $ 4,710.25
h) General and Administrative ( Rate: ) i) Gen & Admin [(c) x (h)] $ - j) Total Indirect Costs [(e) + (g) + (i)] $ 8,799.37

FIXED FEE
k) TOTAL FIXED FEE [(c) + (j)]* fixed fee 10% ] $ 1,397.55 Quantity Unit
l) TOTAL OTHER DIRECT COSTS $ -
Subconsultant 1: $
Subconsultant 2: $
Subconsultant 3: $
Subconsultant 4: $
$ -
$ -
$ 15,373.02
(n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l) + (m)] TOTAL COST [(c) + (j) + (k) + (n)]
m) SUBCONSULTANTS' COSTS (Add additional pages if necessary) (m) TOTAL SUBCONSULTANS' COSTS
$0.00 $ -
$0.00 $ -
$0.00 $ -
$0.00 $ -
$ 5,176.10
$ -
g) Overhead [(c) x (f)
l) CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary) Description of Item Unit Cost Total
$ -
$ -
$ -
$ -
Program Manager Keith LeNoue $49.63 $ 2,084.46
Program Coordinator Alyssa Maldonado $33.00 $ 990.00
Program Director Lissette Montoya $150.82 $ 301.64
Program Manager Nadine El Sankari $75.00 $ 1,800.00
CML-5312(112)
Classification/Title Name Actual Hourly Rate Total
COST PROPOSAL 1

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)
Advanced Avant Garde Inc.

Prime Consultant Subconsultant 2nd Tier Subconsultant

Page 1 of 3 ends

January 2020
1091
COST PROPOSAL 1

1. Calculate average hourly rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) Direct Labor
Subtotal per
Cost
Proposal
Total Hours
per Cost
Proposal
Avg Hourly
Rate
$ 5,176.10 / 98 = $52.82 Year 1 Avg Hourly Rate

2. Calculate hourly rate for all periods (Increase the Average hourly rate for a period by proposed escalation %) Avg Hourly
Rate
Proposed
Escalation
Year 1 $52.82 + 5% = $55.46
Year 2 $55.46 + 5% = $58.23
Year 3 $58.23 + 5% = $61.14 Year 4 Avg Hourly Rate
Year 4 $61.14 + 5% = $64.20 Year 5 Avg Hourly Rate

4. Calculate Total Costs including Escalation (Multiply average hourly rate by the number of hours) Avg Hourly
Rate
Estimated
Hours
(calculated
above)
(calculated
above)
Year 1 $52.82 * 98 = $5,176.10 Estimated Hours Year 1
Year 2 $55.46 * 0 = $0.00 Estimated Hours Year 2
Year 3 $58.23 * 0 = $0.00 Estimated Hours Year 3
Year 4 $61.14 * 0 = $0.00 Estimated Hours Year 4
Year 5 $64.20 * 0 = $0.00 Estimated Hours Year 5
= $5,176.10
= $5,176.10
= $0.00 Transfer to Page 1
Direct Labor Subtotal before escalation
Estimated total of Direct Labor Salary Increase
Cost
Per Period
Total Direct Labor Cost with Escalation
Year 2 Avg Hourly
Year 3 Avg Hourly

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (CALCULATIONS FOR ANTICIPATED SALARY INCREASES)
5 Year
Contract Duration
COST PROPOSAL 1

Page 2 of 3 ends

January 2020
1092
COST PROPOSAL 1
Name: Title*:

Signature: Date of Certification (mm/dd/yyyy): 8/20/2026 Email: Phone Number:

Address:

List services the consultant is providing under the proposed contract:
807 S Lemon Ave., Diamond Bar, CA 91789
*An individual executive or financial officer of the consultant’s or subconsultant’s organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

Funding Adminsitration Services
Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Prime Consultant or Subconsultant Certifying:

Ana Marie LeNoue President/CEO
ana Marie LeNoue
[email protected] (909) 895-7146

2. Terms and conditions of the contract

3. Title 23 United States Code Section 112 - Letting of Contracts

4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Procedures

5. 23 Code of Federal Regulations Part 172 - Procurement, Management, and Administration of

COST PROPOSAL 1
Certification of Direct Costs:

1. Generally Accepted Accounting Principles (GAAP)

Page 3 of 3 ends

January 2020
1093
Inspector General
California Department of Transportation
Certification of Indirect Costs and Financial Management System (Note: If a Safe Harbor Indirect Cost Rate is approved, this form is not required) Consultant's Full Legal Name: _______________________ _ Important: Consultant means the individual or consultant providing engineering and design related services as a party of a contract with a recipient or sub-recipient of Federal assistance. Therefore, the Indirect Cost Rate(s} shall not be combined with its parent company or subsidiaries.

Indirect Cost Rate (ICR):

C b• dR t 170.00
om me ae: ________ _ Or
Home Office Rate: ________ _ and Field Office Rate (if applicable}: _______ _ Facilities Capital Cost of Money (if applicable): _________________ _ F
. Ip . d * 01/01/2025-12/31/2025
Isca er10 :
• Fiscal period is annual one year applicable accounting period that the ICR was developed (not the contract period). The ICR is based on the consultant's one-year applicable accounting period for which financial statements are regularly prepared by the consultant.

I have reviewed the proposal to establish an ICR(s) for the fiscal period as specified above and have determined to the best of my knowledge and belief that:
• All costs included in the cost proposal to establish the ICR(s} are allowable in accordance with the cost principles of the Federal Acquisition Regulation (FAR) 48, Code of Federal Regulations (CFR), Chapter 1, Part 31 (48 CFR Part 31 ).
• The cost proposal does not include any costs which are expressly unallowable under the cost principles of 48 CFR Part 31.
• The accounting treatment and billing of prevailing wage delta costs are consistent with our prevailing wage policy as either direct labor, indirect costs, or other direct costs on all federally-funded A&E Consultant Contracts.
• All known material transactions or events that have occurred subsequent to year-end affecting the consultant's ownership, organization, and indirect cost rates have been disclosed as of the date of this certification.

I am providing the required and applicable documents as instructed on the Financial Document Review Request form.

Financial Management System:

Our labor charging, job costing, and accounting systems meet the standards for financial reporting, accounting records, and internal control adequate to demonstrate that costs claimed have been incurred, appropriately accounted for, are allocable to the contract, and comply with the federal requirements as set forth in Title 23 United States Code (U.S.C.} Section 112(b}(2): 48 CFR Part 31.201-2(d): 23 CFR Chapter 1, Part 172.11(a)(2):
and all applicable state and federal rules and regulations.

Our financial management system has the following attributes:
• Account numbers identifying allowable direct, indirect, and unallowable cost accounts; • Ability to accumulate and segregate allowable direct, indirect, and unallowable costs into separate cost accounts:

Certific.ation of Indirect Costs and Financial Management System - Independent Office of Audits and Investigations - Revised 9/2022 Advanced Avant Garde, Inc.
1094
• Ability to accumulate and segregate allowable direct costs by project, contract and type of cost; • Internal controls to maintain integrity of financial management system; • Ability to account and record costs consistently and to ensure costs billed are in compliance with FAR; • Ability to ensure and demonstrate costs billed reconcile to general ledgers and job costing system; and • Ability to ensure costs are in compliance with contract terms and federal and state requirements.

Cost Reimbursements on Contracts:

Cognizant ICRAudit D
CPA ICR Audit IZI
Local Govt ICR Audit □
Federal Govt ICR Audit □
Caltrans ICR Audit □
1, the undersigned, certify all of the above to the best of my knowledge and belief and that I have reviewed the ICR Schedule to determine that any costs which are expressly unallowable under the Federal cost principles have been removed and comply with Title 23 U.S.C. Section 112(b)(2), 48 CFR Part 31, 23 CFR Part 172, and all applicable state and federal rules and regulations. I also certify that I understand that all documentation of compliance must be retained by the consultant. I hereby acknowledge that costs that are noncompliant with the federal and state requirements are not eligible for reimbursement and must be returned to Caltrans.

Phone**: (909) 895-7146
Title**: PresidenUCEO
07/06/2026 Date:

Email**: [email protected]
,..An individual executive or financial officer of the consultant's or subconsultant's organization at a level no lower than a Vice President, a Chief Financial Officer, or equivalent, who has authority to represent the financial infom,ation used to establish the indirect cost rate.

Note: Both prime and subconsultants as parties of a contract must complete their own forms. Caltrans will not process local agency's invoices until a complete form is accepted and approved by the Independent Office of Audits and Investigations.

Certification of Indirect Costs and Financial Management System - Independent Office of Audits and Investigations - Revised 9/2022 1095 2 COST PROPOSAL 1
Note: Mark-ups are Not Allowed
Consultant
Project No. Contract No. Date 9/10/2026

DIRECT LABOR
Hours
60 LABOR COSTS
a) Subtotal Direct Labor Costs
b) Anticipated Salary Increases (see Anticipated Salary Increases page for calculations) c) Total Direct Labor Costs [(a) + (b)] $ 7,200.00

INDIRECT COSTS
d) Fringe Benefits ( Rate: ) e) Total Fringe Benefits [(c) x (d)] $ - f) Overhead ( Rate: 120.00% ) $ 8,640.00
h) General and Administrative ( Rate: ) i) Gen & Admin [(c) x (h)] $ - j) Total Indirect Costs [(e) + (g) + (i)] $ 8,640.00

FIXED FEE
k) TOTAL FIXED FEE [(c) + (j)]* fixed fee 10% ] $ 1,584.00 Quantity Unit
l) TOTAL OTHER DIRECT COSTS $ -
Subconsultant 1: $
Subconsultant 2: $
Subconsultant 3: $
Subconsultant 4: $
$ -
$ -
$ 17,424.00
(n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l) + (m)] TOTAL COST [(c) + (j) + (k) + (n)]
m) SUBCONSULTANTS' COSTS (Add additional pages if necessary) (m) TOTAL SUBCONSULTANS' COSTS
$0.00 $ -
$0.00 $ -
$0.00 $ -
$0.00 $ -
$ 7,200.00
$ -
g) Overhead [(c) x (f)
l) CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary) Description of Item Unit Cost Total
$ -
$ -
$ -
$ -
$ -
$ -
Firm Principal Rock Miller $120.00 $ 7,200.00
$ -
CML-5312(112)
Classification/Title Name Actual Hourly Rate Total
COST PROPOSAL 1

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)
Rock E. Miller & Associates
Prime Consultant Subconsultant 2nd Tier Subconsultant

Page 1 of 3 ends

January 2020
1096
COST PROPOSAL 1

1. Calculate average hourly rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) Direct Labor
Subtotal per
Cost Proposal
Total Hours
per Cost
Proposal
Avg Hourly
Rate
$ 7,200.00 / 60 = $120.00 Year 1 Avg Hourly Rate

2. Calculate hourly rate for all periods (Increase the Average hourly rate for a period by proposed escalation %) Avg Hourly
Rate
Proposed
Escalation
Year 1 $120.00 + 5% = $126.00
Year 2 $126.00 + 5% = $132.30
Year 3 $132.30 + 5% = $138.92 Year 4 Avg Hourly Rate
Year 4 $138.92 + 5% = $145.86 Year 5 Avg Hourly Rate

4. Calculate Total Costs including Escalation (Multiply average hourly rate by the number of hours) Avg Hourly
Rate
Estimated
Hours
(calculated
above)
(calculated
above)
Year 1 $120.00 * 60 = $7,200.00 Estimated Hours Year 1
Year 2 $126.00 * 0 = $0.00 Estimated Hours Year 2
Year 3 $132.30 * 0 = $0.00 Estimated Hours Year 3
Year 4 $138.92 * 0 = $0.00 Estimated Hours Year 4
Year 5 $145.86 * 0 = $0.00 Estimated Hours Year 5
= $7,200.00
= $7,200.00
= $0.00 Transfer to Page 1
Direct Labor Subtotal before escalation
Estimated total of Direct Labor Salary Increase
Cost
Per Period
Total Direct Labor Cost with Escalation
Year 2 Avg Hourly
Year 3 Avg Hourly

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (CALCULATIONS FOR ANTICIPATED SALARY INCREASES)
5 Year
Contract Duration
COST PROPOSAL 1

Page 2 of 3 ends

January 2020
1097
COST PROPOSAL 1
Name:

Signature:

Email: Phone Number:

Address:

List services the consultant is providing under the proposed contract:

2. Terms and conditions of the contract

3. Title 23 United States Code Section 112 - Letting of Contracts

4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Procedures

5. 23 Code of Federal Regulations Part 172 - Procurement, Management, and Administration of

COST PROPOSAL 1
Certification of Direct Costs:

1. Generally Accepted Accounting Principles (GAAP)
5731 E. West View Dr, Orange CA 92869
*An individual executive or financial officer of the consultant’s or subconsultant’s organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

Phase I: Participate in kick off meeting with the City and provide insight. Phase II: Participate in preliminary Engineering, development of concept Plans, assistance in intersection treatments at Fairview Rd. and at Harbor Bl.

Assistance in preliminary engineering for roundabout at Fordham per RFP. Phase III: Participate in qualitative assessment of intersection treatments, including potential use of bicycle signals and connections to the existing Class I facilities at Harbor Boulevard and Fairview Road and traffic signals along the Fairgrounds frontage. Phase IV: Attend City Council Meeting and two ATC meetings, and available to meet for up to 4 additional meetings in person. Phase V: Advise on preparation of 30% drawings by reviewing progress drawings with design team. Assist in review and response to submittal of 30% drawings.

Phase VI: Provide hours to review preliminary traffic analysis and response to traffic and bikeway engineering comments.

Phase VII: Advise on preparation of 60%, 90%, 100%, and final drawings by reviewing progress drawings with design team Assist in review and response to comments on prior phase drawings Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Prime Consultant or Subconsultant Certifying:

Rock Miller Title*: Firm Principal
Date of Certification (mm/dd/yyyy)
[email protected] 714-743-1415

Page 3 of 3 ends

January 2020
09/10/2026
1098
California Safe Harbor Indirect Cost Rate Program
SHR Form Revised 9/25/2020 1
Consultant Firm Certification of Eligibility and Certification of Financial Management System
Consultant Firm Name _____________________________________________________________ Local Agency (if applicable) _______________________________________________________ Contract Number / Federal Project Number _____ _________________________

1. Am not a Prime Consultant Firm on a Caltrans contract > $3.5M, or Local Government contract > $1M, regardless of the participation amount.

2. Have not used SHR for more than three (3) years since entering the program on a state or federally funded contract.

AND

1. Do not have relevant contract cost history to use as a base for developing a Federal Acquisition Regulations (FAR) of Title 48, Code of Federal Regulations (CFR), Part 31 compliant ICR.

2. Do not have a previously accepted ICR by a cognizant agency, or with an audited/accepted actual ICR, and do not have an existing contract with a provisional rate.

Certification of Financial Management System
I, the undersigned, certify that our financial management system in place for this contract and moving forward meets the standards for the Safe Harbor indirect cost rate requirements and financial reporting, accounting records, internal and budget control as set forth in 2 CFR 200, Subpart D. These standards require consulting firms have an accounting system

Contract Total $ __________________________________________________________________ For Subconsultant Firms – estimated % of work to be performed ____________________ %
Safe Harbor Indirect Cost Rate (SHR): Home: 120% and/or Field: 90% Field SHR will be utilized for contracts where the work deliverables are not completed from the consultant offices (i.e. Construction Inspection, Material Testing, Sources Inspection, others).

Consultant Firm Certification of Eligibility
I, the undersigned, certify that I am eligible to use the Safe Harbor indirect cost rate as I:

City of Costa Mesa
CML-5312(112
17,424
1099
California Safe Harbor Indirect Cost Rate Program
SHR Form Revised 9/25/2020 2
adequate to accumulate, and track allowable, allocable, and reasonable direct labor and other direct costs by contract; segregate indirect costs and remove unallowable costs.

Print Name ________________________________________________ Signature ________________________________________________ (Electronic Signature Allowed)
Title ________________________________________________
Date Completed _______________________
Note: The certification of this Safe Harbor Rate was made by, and are the responsibility of, the Company’s management.

Definition of Terms
Direct Cost is any cost that is identified specifically with a particular cost objective. Direct costs are not limited to items that are incorporated in the end products as material or labor.

Costs identified specifically with a contract are direct costs of that contract. All costs identified with other final cost objectives of the contractor are direct costs of those objectives, 48 CFR 31.202.

Indirect or overhead cost is any cost that is not directly identified with a single final cost objective but is identified with two or more final cost objectives or with at least one intermediate cost objective, 48 CFR 31. 203.

References
Title 48 Code of Federal Regulations (CFR) Part 31 -Federal cost principles.

Title 48 CFR Chapter 99, Subchapter B - Procurement Practices and Cost Accounting Standards.

Title is 2 CFR 200 Subpart D, Standards for Financial and Program Management.

Title 23 United States Code (U.S.C.), Chapter 1, Section 112 - Letting of Contracts.

Title 23 CFR, Chapter 1, Part 172 - Procurement, Management, and Administration of Engineering and Design Related Services.

American Association of State Highway and Transportation Officials (AASHTO) Uniform Audit & Accounting Guide (2016 Edition).

1100
California Safe Harbor Indirect Cost Rate Program
SHR Form Revised 9/25/2020 3
Caltrans Contract
If participating on a Caltrans Contract, also attach a completed copy of the following Safe Harbor Indirect Cost Rate Questionnaire for Evaluating Consultant Firm’s Financial Management System.
1101
California Safe Harbor Indirect Cost Rate Program
SHR Form Revised 9/25/2020 4
Questionnaire for Evaluating Consultant Firm’s Financial Management System
Consultant Firm Name _____________________________________________________________ Firm Headquarters Address _________________________________________________________ _________________________________________________________ Accounting Records
x Location where Accounting records are held ________________________ x Name and Title _____________________________________________________ x Email and Phone ____________________________________________________ x Mailing Address _____________________________________________________ ____________________________________________________
To be eligible for Safe Harbor indirect cost rate (SHR), the Consultant Firm’s financial management system must be adequate to accumulate and track direct labor and other direct costs by contract, segregate indirect costs, and remove unallowable costs in accordance with 48 CFR 31 for the different business segments.

Instructions

1. Answer all questions and provide an explanation and additional supporting documentation where requested.

2. If additional space is required, please attach a separate sheet and refer to items being answered by number.

Has the Firm developed an indirect cost rate in the past? Yes ____ No ___ If “Yes”, you are NOT ELIGIBLE to use the SHR.

DO NOT CONTINUE with this Questionnaire and please complete the AASHTO Appendix B ICQ and provide an ICR Schedule.

Is the Firm a Prime Consultant Firm on a Caltrans contract > $3.5M Yes ____ No ___ Or Local Government contract > $1M, regardless of the participation Amount?
If “Yes”, you are NOT ELIGIBLE to use the SHR.

DO NOT CONTINUE with this Questionnaire and please complete the AASHTO Appendix B ICQ and provide an AUDITED ICR Report.

1102
California Safe Harbor Indirect Cost Rate Program
SHR Form Revised 9/25/2020 5

1. What form of business entity is the Firm?
Sole Proprietorship ___ Partnership ____ C Corporation __ S Corporation __ Other __________________________________________________

2. What types of services will the Firm provide for this contract? (Select all that apply.) Architectural and Engineering Services ____ Program Management ____ Preliminary Engineering ____ Design Engineering ____
Surveying ____ Feasibility Studies ____
Mapping or Architectural Related Services ____ Other _____________________

3. Does the Firm have prior government contracting experience? Yes ____ No ____

4. Does the general ledger contain separate direct and indirect accounts for the following? Labor Yes ___ No _____ Non-Labor Yes ____ No ____

5. Does the company have a system in place to identify and remove form the indirect cost pools all unallowable cost? Yes_____ No ____

6. Does the firm assign a unique identification/project number in your accounting system for each contract/project?
Yes _____ No _____

7. Is indirect and direct labor separated by contract/project/cost objectives on employee timesheets with unique reporting codes?
Yes _____ No _____

1103
California Safe Harbor Indirect Cost Rate Program
SHR Form Revised 9/25/2020 6

8. Do you have written policies on the following cost categories? Accounting Yes ___ No ____ Overtime Yes _____ No ____
Billing Yes ___ No ____ Direct/Indirect Expenses Yes _____ No ____ Timesheet Preparation Yes ___ No ____ Prevailing Wage Yes _____ No ____ Bonus Yes ___ No ____

9. What types of employee status will the Firm provide for this contract? Non-exempt ____ Exempt-salaried ___ Exempt-hourly ___ Contract Employee ___ Other __________________________________________________

10.Does the Firm pay overtime for exempt employees?
Yes _____ No ___

11.Besides labor, does the Firm normally bill/invoice the following as direct contract/project costs? (Select all that apply)
Vehicle _____ Shipping ______
Computer/CADD _____ Lab ______
Printing _____ Travel ______
Specialty Equipment ____
(List below)
Other (List below) ______
_________________________________ ______________________________

12. Are mileage logs maintained for all vehicles? If no, please explain below.

Explanation _____________________________________________________________________ Where is the vehicle stored after work? ___________________________________________ Does employee use vehicle for personal use? Yes ______________________ No_______ What is the recovery/billing rate used for Firm or personal vehicle mileage reimbursement?
$ ________ per mile

1104
California Safe Harbor Indirect Cost Rate Program
SHR Form Revised 9/25/2020 7
I certify that to the best of my knowledge and belief the responses to this questionnaire are accurate.

1105
COST PROPOSAL 1
Note: Mark-ups are Not Allowed
Consultant
Project No. Contract No. Date 9/10/2026

DIRECT LABOR
Hours
32 16
8 LABOR COSTS
a) Subtotal Direct Labor Costs
b) Anticipated Salary Increases (see Anticipated Salary Increases page for calculations) c) Total Direct Labor Costs [(a) + (b)] $ 5,320.32

INDIRECT COSTS
d) Fringe Benefits ( Rate: 74.17% ) e) Total Fringe Benefits [(c) x (d)] $ 3,946.08 f) Overhead ( Rate: 57.94% ) $ 3,082.59
h) General and Administrative ( Rate: 0.00% ) i) Gen & Admin [(c) x (h)] $ - j) Total Indirect Costs [(e) + (g) + (i)] $ 7,028.67

FIXED FEE
k) TOTAL FIXED FEE [(c) + (j)]* fixed fee 10% ] $ 1,234.90 Quantity Unit
1 1
l) TOTAL OTHER DIRECT COSTS $ 29,200.00
Subconsultant 1: $ 3,000.00
Subconsultant 2:

Subconsultant 3: $
Subconsultant 4: $
$ 3,000.00
$ 32,200.00
$ 45,783.89
CML-5312(112)
Classification/Title Name Actual Hourly Rate Total
COST PROPOSAL 1

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)
Twining Inc.

Group 3 (Non exempt) Group 3 Inspector $67.96 $ 543.68
$ -
Project Engineer Amir Ghavibazoo * $93.49 $ 2,991.68
Registered Geotechnical Engineer Paul Soltis * $111.56 $ 1,784.96 $ -
$ -
$ -
$ -
Laboratory Testing $2,600.00 $ 2,600.00
$ 5,320.32
$ -
g) Overhead [(c) x (f)
l) CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary) Description of Item Unit Cost Total
m) SUBCONSULTANTS' COSTS (Add additional pages if necessary) Traffic Management (for pavement Coring)
(m) TOTAL SUBCONSULTANS' COSTS
ADL Soil Sampling Support $ 26,600.00
(n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l) + (m)] TOTAL COST [(c) + (j) + (k) + (n)]
Prime Consultant Subconsultant 2nd Tier Subconsultant

Page 1 of 3 ends

January 2020
1106
COST PROPOSAL 1

1. Calculate average hourly rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) Direct Labor Subtotal
per Cost Proposal
Total Hours
per Cost
Proposal
Avg Hourly
Rate
$ 5,320.32 / 56 = $95.01 Year 1 Avg Hourly Rate

2. Calculate hourly rate for all periods (Increase the Average hourly rate for a period by proposed escalation %) Avg Hourly Rate Proposed
Escalation
Year 1 $95.01 + 5% = $99.76
Year 2 $99.76 + 5% = $104.74
Year 3 $104.74 + 5% = $109.98 Year 4 Avg Hourly Rate
Year 4 $109.98 + 5% = $115.48 Year 5 Avg Hourly Rate

4. Calculate Total Costs including Escalation (Multiply average hourly rate by the number of hours) Avg Hourly Rate
Estimated
Hours
(calculated above) (calculated
above)
Year 1 $95.01 * 56 = $5,320.32 Estimated Hours Year 1
Year 2 $99.76 * 0 = $0.00 Estimated Hours Year 2
Year 3 $104.74 * 0 = $0.00 Estimated Hours Year 3
Year 4 $109.98 * 0 = $0.00 Estimated Hours Year 4
Year 5 $115.48 * 0 = $0.00 Estimated Hours Year 5
= $5,320.32
= $5,320.32
= $0.00 Transfer to Page 1

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (CALCULATIONS FOR ANTICIPATED SALARY INCREASES)
5 Year
Contract Duration
COST PROPOSAL 1
Cost
Per Period
Total Direct Labor Cost with Escalation
Year 2 Avg Hourly
Year 3 Avg Hourly
Direct Labor Subtotal before escalation
Estimated total of Direct Labor Salary Increase

Page 2 of 3 ends

January 2020
1107
COST PROPOSAL 1
Name: Title*:

Signature: Date of Certification (mm/dd/yyyy):

Email: Phone Number:

Address:

List services the consultant is providing under the proposed contract:

2. Terms and conditions of the contract

3. Title 23 United States Code Section 112 - Letting of Contracts

4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Procedures

5. 23 Code of Federal Regulations Part 172 - Procurement, Management, and Administration of

COST PROPOSAL 1
Certification of Direct Costs:

1. Generally Accepted Accounting Principles (GAAP)
*An individual executive or financial officer of the consultant’s or subconsultant’s organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Rate(s).

Prime Consultant or Subconsultant Certifying:

Page 3 of 3 ends

January 2020
Tommy Y Lee CFO
9/10/26
[email protected] 562-513-1705
4811 Airport plaza dr. Suite 220 Long Beach, CA 90815
1108
&HUWL¿FDWLRQRI,QGLUHFW&RVWVDQG)LQDQFLDO0DQDJHPHQW6\VWHP,QGHSHQGHQW2I¿FHRI$XGLWVDQG,QYHVWLJDWLRQV5HYLVHG
Inspector General
California Department of Transportation
Certification of Indirect Costs and Financial Management System (Note: If a Safe Harbor Indirect Cost Rate is approved, this form is not required) Consultant’s Full Legal Name:

Indirect Cost Rate (ICR):

Combined Rate: Or
+RPH2ႈFH5DWH
DQG)LHOG2ႈFH5DWH
LIDSSOLFDEOH

Facilities Capital Cost of Money (if applicable):

0.51 01/01/2024-12/31/2024
1109
&HUWL¿FDWLRQRI,QGLUHFW&RVWVDQG)LQDQFLDO0DQDJHPHQW6\VWHP,QGHSHQGHQW2I¿FHRI$XGLWVDQG,QYHVWLJDWLRQV5HYLVHG
• Ability to accumulate and segregate allowable direct costs by project, contract and type of cost; • ,QWHUQDOFRQWUROVWRPDLQWDLQLQWHJULW\RIILQDQFLDOPDQDJHPHQWV\VWHP

Name
** Title**:

Signature: Date:

Phone**: Email**:

Tommy Young Lee
✔
CFO
Digitally signed by T Young Lee
Date: 2025.11.20 11:41:01 -08'00'
(562) 426-3355 [email protected]
11/20/2025
1110

EXHIBIT D
CITY COUNCIL POLICY 100-5
1111

EXHIBIT E

ARTICLE XXXI TITLE VI ASSURANCES
APPENDICES A – E OF THE TITLE VI ASSURANCES
1112

EXHIBIT F

ARTICLE III STATEMENT OF WORK
1113

EXHIBIT G

ARTICLE IV PERFORMANCE PERIOD
1114

EXHIBIT H

ARTICLE V ALLOWABLE COSTS AND PAYMENTS
1115

EXHIBIT I

ARTICLE VII COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS 1116

EXHIBIT J

ARTICLE X SUBCONTRACTING
1117

EXHIBIT K

ARTICLE XI EQUIPMENT PURCHASE AND OTHER CAPITAL EXPENDITURES 1118

EXHIBIT L

ARTICLE XII STATE PREVAILING WAGE RATES
1119

EXHIBIT M

ARTICLE XIII CONFLICT OF INTEREST
1120

EXHIBIT N

ARTICLE XIV REBATES, KICKBACKS OR OTHER UNLAWFUL CONSIDERATION 1121

EXHIBIT O

ARTICLE XV PROHIBITION OF EXPENDING

LOCAL AGENCY, STATE, OR FEDERAL FUNDS FOR LOBBYING
1122

EXHIBIT P

ARTICLE XVI NON-DISCRIMINATION CLAUSE AND STATEMENT OF COMPLIANCE 1123

EXHIBIT Q

ARTICLE XVII DEBARMENT AND SUSPENSION CERTIFICATION
1124

EXHIBIT R

ARTICLE XX FUNDING REQUIREMENTS
1125

EXHIBIT S

ARTICLE XXI CHANGE IN TERMS
1126

EXHIBIT T

ARTICLE XXIII DISPUTES
1127

EXHIBIT U

ARTICLE XXIV INSPECTION OF WORK
1128

EXHIBIT V

ARTICLE XXV SAFETY
1129

EXHIBIT W

ARTICLE XXXIII CONTRACT
1130

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-422 Meeting Date: 10/6/2026
TITLE:

APPROVAL FOR THE PURCHASE OF THREE DOCKING STATIONS AND DRONE WITH AXON ENTERPRISE INC. (SKYDIO INC.)
DEPARTMENT: POLICE DEPARTMENT
PRESENTED BY: CARLOS DIAZ, CAPTAIN
CONTACT INFORMATION: CARLOS DIAZ, CAPTAIN, 714-754-5672 RECOMMENDATION:

Staff recommends the City Council:

1. Approve the purchase of three (3) drone docking stations and one (1) Skydio X-10 drone, including service and software through a cooperative agreement with Omnia Contract No. 3544-21-4615 in the amount of $292,144.59 for a term of two years.

2. Authorize a contingency in the amount of $7,855.41 for unforeseen costs.

3. Authorize the City Manager and City Clerk to execute an agreement with Axon Enterprise, Inc. (Skydio Inc.), and any future amendments, in a form approved by the City Attorney.

BACKGROUND:

Since its inception in 2019, the Unmanned Aerial System (UAS) program began as a Patrol-Led drone program that has successfully supported a broad range of missions, including search and rescue, missing persons, perimeter containment, high-risk warrant service, and critical incident overwatch, providing officers with real-time aerial intelligence that enhances safety for both personnel and the community. The program has consistently demonstrated its value through improved situational awareness and response efficiency, positioning the department to advance into modern policing and expand into advanced capabilities such as Drone as First Responder (DFR) operations and autonomous launch technologies. During the 2025-2026 fiscal year, drones were deployed approximately 459 times across several operations, including major accident collision investigations, calls for service, and crime scene photography.

Officers and professional staff members assigned to operate drones as a collateral duty have obtained and maintained a Federal Aviation Administration (FAA) Remote Pilot Certificate under 14 CFR Part 107. Certified pilots are responsible for conducting drone operations safely and in accordance with FAA regulations and Costa Mesa Police Department Policy 606.

Currently, through the Patrol-Led drone program, there are 24 active pilots who are licensed by the

Page 1 of 4 ends

1131
File #: 26-422 Meeting Date: 10/6/2026
Currently, through the Patrol-Led drone program, there are 24 active pilots who are licensed by the FAA. Pilots are selected from both the sworn personnel and professional staff, providing the department with a diverse group of trained pilots who can support patrol and other operational needs.

The Costa Mesa Police Department currently maintains a fleet of seven (7) drones consisting of both outdoor and indoor capable platforms. The fleet provides flexibility to support a variety of public safety operations.

In May and June of 2025, the Costa Mesa Police Department partnered with Skydio Inc. to conduct a three-week DFR structured pilot program to assess the program's operational effectiveness, reliability, and suitability for deployment. Throughout the trial, Skydio’s autonomous drones were launched to real-world calls for service, providing rapid aerial response, live video to dispatch and field supervisors, and enhanced situational awareness prior to officer arrival. The evaluation demonstrated consistent autonomous launch performance, accurate routing to incident locations, and appropriate call clearances, thereby eliminating the need for officers to respond to calls for service.

During the trial, drones were launched in response to 63 calls for service. Based on the responses, drones cleared 24 calls for service without any officer needing to physically respond, keeping officers available for emergency calls for service. The drones assisted with 39 calls for service, maintaining observation, and provided valuable information to responding units. It was also discovered that drone -supported de-escalation, by providing situational awareness, allows personnel to better assess incidents and develop an informed response before making contact or without making direct contact.

As a result of the successful trial program, the Department obtained enhanced FAA approvals and waivers supporting Beyond Visual Line of Sight (BVLOS) operations, allowing designated drones to operate autonomously within approved parameters. This capability expands the Department’s ability to rapidly deploy aerial resources and provide real-time situational awareness without requiring a pilot to be physically co-located with the drone.

ANALYSIS:

The Costa Mesa Police Department’s continued development of its UAS capabilities positions the City to deploy a fully autonomous, citywide model. Building on the success of patrol-led drone operations currently conducted at South Coast Plaza under the Organized Retail Theft (ORT) grant, the next phase of the program includes the installation of three Skydio drone docking stations strategically located throughout the city. Locations will be based on operational needs, geographic coverage, response times, and existing infrastructure.

Since May of 2026, under the ORT grant DFR program at South Coast Plaza, the department conducted approximately 112 drone flights, resulting in 40 calls for service being resolved without requiring an on-scene patrol unit. In 56 deployments, the drone arrived before responding ground units, providing officers with immediate aerial situational awareness. The program achieved an average drone response time of approximately two minutes.

Through an established DFR program, docking stations will allow drones to launch from multiple locations throughout the City, enabling rapid response to priority calls and providing real-time situational awareness to first responders. As the City continues to develop its Real-Time Information Center (RTIC), the drone program will ultimately be managed from this centralized hub.

The Costa Mesa Police Department has been allocated significant federal funding through the office of Congressman Dave Min to support the development of a Real-Time Information Center (RTIC).

Page 2 of 4 ends

1132
File #: 26-422 Meeting Date: 10/6/2026
of Congressman Dave Min to support the development of a Real-Time Information Center (RTIC).

The RTIC will serve as a force multiplier for officers in the field by providing timely, actionable information before and during calls for service. By integrating authorized public safety technologies and information into a centralized environment, RTIC personnel will provide officers with enhanced situational awareness regarding locations, vehicles, suspects, emerging threats, and critical incidents. This capability will support faster and more informed decision-making, improve officer and community safety, enhance opportunities for de-escalation, and enable officers to respond more effectively while spending less time navigating multiple information systems. The RTIC will enhance the Department’s ability to integrate, analyze, and utilize real-time public safety information to support field operations, improve situational awareness, and strengthen responses to critical incidents.

Implementation of the RTIC is currently in the planning phase and is anticipated to be implemented in late 2027.

The RTIC will coordinate drone deployments, monitor live video feeds, and support multi-disciplinary response efforts with other departments, including Fire, Emergency Management, and Public Works.

In addition, the Skydio drone platform and associated hardware are fully compliant with the National Defense Authorization Act (NDAA). NDAA- compliant systems ensure that all critical parts, software, and data pathways meet US Security standards, reducing cybersecurity risks. The expansion of autonomous drone operations remains compliant with California Assembly Bill (AB) 481, which governs the acquisition and use of certain law-enforcement technologies in the state.

The program is not intended for routine patrol, random or discretionary surveillance, or immigration enforcement. Autonomous deployments under DFR will be associated with a specific call for service or authorized public safety incident, with no discretionary flying. The program will include accountability and transparency measures, including a public-facing web portal providing information, such as drone flight times and general flight areas.

All drone footage will be securely stored within the department’s Axon Evidence digital evidence management system, which is designed to meet CJIS Security Policy requirements. The system uses encryption, multi-factor authentication, role-based access control, and detailed audit trails to protect evidence and track access. These safeguards help ensure that drone footage remains secure, accessible only to authorized personnel, and maintains its integrity and chain of custody.

Axon Enterprise, Inc. (Skydio Inc.) currently has a cooperative agreement through Omnia Partners contract #3544-21-4615, that meets all requirements established by the City of Costa Mesa’s Purchasing Policy and the State of California regarding regional, state, and national cooperative purchasing agreements. This process ensures the City receives the lowest available pricing and satisfies the competitive bid process requirements.

Collectively, these advancements demonstrate that the Costa Mesa Police Department is prepared to transition from a limited patrol-based model to a comprehensive, citywide autonomous drone launch program that enhances officer and community safety, improves response efficiency, decreases response times, and strengthens inter-departmental coordination.

ALTERNATIVES:

The City Council could elect not to authorize the purchase of the Skydio docking stations and drones; however, the Police Department may be unable to use available grant funding for this program.

Beyond the immediate fiscal impact, non-authorization would limit the Police Department’s ability to

Page 3 of 4 ends

1133
File #: 26-422 Meeting Date: 10/6/2026
Beyond the immediate fiscal impact, non-authorization would limit the Police Department’s ability to deploy advanced aerial capabilities and could affect response times and situational awareness during critical incidents, search-and-rescue operations, and other calls for service where drone technology has proven essential to officer and community safety.

FISCAL REVIEW:

The cost of the hardware, software, and services, inclusive of the contingency, is in the amount of $300,000, for a term of two (2) years. Funding is available through the awarded Organized Retail Theft Prevention Grant (ORT) in the State Grants Fund (Fund 231).

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

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

CONCLUSION:

Staff recommends the City Council:

2. Authorize a contingency in the amount of $7,855.41 for unforeseen costs.

3. Authorize the City Manager and City Clerk to execute an agreement with Axon Enterprise, Inc. (Skydio Inc.), and any future amendments, in a form approved by the City Attorney.

Page 4 of 4 ends

1134
Axon Enterprise, Inc.
17800 N 85th St, Scottsdale, Arizona 85255, United States VAT: 86-0741227
Domestic: (800) 978-2737 | International: +1 800.978.2737 Q-834688-004 Acct: 129892
Issued Sep 16, 2026
Expires Nov 15, 2026
Payment Terms N30
Mode of Delivery AUTO-GND
Costa Mesa Police Dept.- CA Currency: USD

CUSTOMER DETAILS

SHIP TO
Costa Mesa Police Dept.- CA
99 Fair Dr
Costa Mesa, CA
92626-6520
USA

BILL TO
Costa Mesa Police Dept.- CA
PO Box 1200
Costa Mesa, CA
92628-1200
USA

SALES REPRESENTATIVE
Allen Sliper
Phone: (858) 353-3228
Email: [email protected]

PRIMARY CONTACT
Carlos Diaz
Phone: (714) 754-5266
Email: [email protected]

QUOTE SUMMARY
Program Length 24 Months
Contract Start Oct 1, 2026
Contract End Sep 30, 2028

TOTAL CONTRACT
Net Total $280,659.23
Est. Tax $11,485.36
Total Contract Value $292,144.59

DISCOUNT SUMMARY
List Price $365,746.40
Total Savings $85,087.17
Discount 23.26%
Avg. Savings / Year $42,543.59

PAYMENT SUMMARY
DATE SUBTOTAL EST. TAX TOTAL
Aug 1, 2026 $140,329.61 $5,742.68 $146,072.29
Aug 1, 2027 $140,329.62 $5,742.68 $146,072.30
Total $280,659.23 $11,485.36 $292,144.59
Axon Enterprise, Inc. Doc ID: 981a276c67dc Tax estimates are approximate and subject to change at time of invoicing.

Q-834688-004 • Page 1 of 4
ATTACHMENT 1
1135
Costa Mesa Police Dept.- CA Q-834688-004 Generated Sep 16, 2026

SUMMARY PRICING FOR TERM

ITEM DESCRIPTION QTY TERM
(START)
UNBUNDLED LIST PRICE NET PRICE SUBTOTAL EST. TAX TOTAL

AXON AIR - DRONE
101229 Axon Air - Skydio Spotlight for X10 1 — — $265.00 $243.80 $243.80 $18.90 $262.70 101211 Axon Air - Skydio Speaker for X10 1 — — $320.00 $294.40 $294.40 $22.81 $317.21 101499 Axon Air - Skydio X10 Dock Commissioning 2 — — $12,995.00 $0.00 $0.00 $0.00 $0.00 101502 Axon Air - Skydio X10 Dock Commissioning &
Training
1 — — $23,995.00 $0.00 $0.00 $0.00 $0.00
102666 Axon Air - Skydio X10 Dock DFR Services -
Premium Solution
1 24
(10/2026)
— $1,581.85 $1,386.46 $33,275.02 $0.00 $33,275.02
101579 Axon Air - Skydio X10 Ground Station (2.4/5
GHz) NA
2 — — $47,600.00 $43,792.00 $87,584.00 $6,787.76 $94,371.76 102766 Axon Air - Skydio X10 Dock DFR Subcription
Plan w/ Data
1 24
(10/2026)
— $2,273.33 $1,851.35 $44,432.32 $0.00 $44,432.32
102768 Axon Air - Skydio X10 Dock DFR HW Kit 1 — — $62,500.00 $57,500.00 $57,500.00 $4,456.25 $61,956.25 101261 Axon Air - Skydio Nightsense IR Filter for X10 1 — — $2,800.00 $2,576.00 $2,576.00 $199.64 $2,775.64 102294 Axon Air - Skydio Dock for X10 - Maint. and
Repair - Premium
2 24
(10/2026)
— $1,224.00 $1,072.82 $51,495.28 $0.00 $51,495.28
100579 Axon Air - Dronesense UAS (Class 1) 1 24
(10/2026)
— $141.67 $135.77 $3,258.41 $0.00 $3,258.41
SUBTOTAL EST. TAX TOTAL
Total $280,659.23 $11,485.36 $292,144.59
Axon Enterprise, Inc. Doc ID: 981a276c67dc Tax estimates are approximate and subject to change at time of invoicing.

Q-834688-004 • Page 2 of 4
1136
Costa Mesa Police Dept.- CA Q-834688-004 Generated Sep 16, 2026

DELIVERY SCHEDULE
ESTIMATED SHIPPING DATE: Sep 1, 2026
Shipping Location: 99 Fair Dr, Costa Mesa, CA, 92626-6520, USA

HARDWARE QTY
Axon Air - Skydio Nightsense IR Filter for X10 1
Axon Air - Skydio Speaker for X10 1
Axon Air - Skydio Spotlight for X10 1
Axon Air - Skydio X10 Dock DFR HW Kit 1
Axon Air - Skydio X10 Ground Station (2.4/5 GHz) NA 2

SOFTWARE QTY
Axon Air - Dronesense UAS (Class 1) 1
Axon Air - Skydio X10 Dock DFR Subcription Plan w/ Data 1

SERVICES QTY
Axon Air - Skydio Dock for X10 - Maint. and Repair - Premium 2 Axon Air - Skydio X10 Dock Commissioning 2
Axon Air - Skydio X10 Dock Commissioning & Training 1
Axon Air - Skydio X10 Dock DFR Services - Premium Solution 1 Axon Enterprise, Inc. Doc ID: 981a276c67dc Tax estimates are approximate and subject to change at time of invoicing.

Q-834688-004 • Page 3 of 4
1137
Costa Mesa Police Dept.- CA Q-834688-004 Generated Sep 16, 2026

TERMS & CONDITIONS
Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.

Contract Omnia Contract 3544-21-4615 is incorporated by reference into the terms and conditions of this Agreement. In the event of conflict the terms of Axon’s Master Services and Purchasing Agreement shall govern.

STANDARD TERMS AND CONDITIONS
Axon Master Services and Purchasing Agreement:

This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at https:// www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below.

ACEIP:

The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.

Acceptance of Terms:

Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote.

EXCEPTIONS TO STANDARD TERMS AND CONDITIONS
Rewrite Estimates
Estimated Amounts and Contract Terminations. Any amounts stated as due under existing or terminated contracts — including contract transfer balances carried forward to new or pending contracts — are estimates based on payments received as of the calculation date. These estimates may be adjusted if new contracts are not executed on the anticipated dates or if expected payments are not made.

Refresh Shipment Timing
Technology Assurance Plan (TAP) Refresh Prior to Renewal. For Customers with expiring agreements that include TAP refresh rights, Axon may, in its discretion, ship refresh hardware under the existing contract while renewal or replacement agreements are in progress. Any such shipments will be deemed made under the terms of the existing contract until the new contract is fully executed, after which any applicable updates, fees, or adjustments will apply.

Shipment Timing
Shipment Variance . Estimated shipment dates are provided for planning purposes only and are not guarantees. Axon may ship hardware before or after the estimated shipment date, and failure to meet an estimated shipment date will not, by itself, constitute a breach, provided Axon uses commercially reasonable efforts to meet estimated shipment dates.

Signature Date Signed
9/16/2026
Axon Enterprise, Inc. Doc ID: 981a276c67dc Tax estimates are approximate and subject to change at time of invoicing.

Q-834688-004 • Page 4 of 4
1138
Attachment 2

INTENT TO PIGGYBACK OFF COOPERATIVE PROCUREMENT
Omnia - The University of Nebraska Contract Number: 3544-21-4615 This agreement (“the Agreement”) is hereby made this ___ day of _________, 2026, by the Costa Mesa Police Department (“Agency”) and Axon Enterprise, Inc. (“Axon”). Collectively, Agency and Axon are the “Parties.” WHEREAS, the Agency is desirous of having Axon provide products and services, as herein described; and WHEREAS, Axon and Omnia Partners agreed to utilize The University of Nebraska Contract Number: 3544-21-4615 as for the Omnia Cooperative Contract (“Omnia Contract”) which is incorporated herein by reference; and WHEREAS, Axon has agreed to provide goods and services within the scope of the Omnia Contract to the Agency at the same prices in Omnia Contract; and
WHEREAS, the goods and/or services required by the Agency and that the Agency seeks to obtain from Axon are within the scope of the Omnia Contract; and
WHEREAS, it is the purpose of this Agreement to describe the formal rights and obligations of the parties; NOW, THEREFORE, WITNESSETH that, for the consideration herein indicated, and in consideration of the mutual promises and covenants set forth in this Agreement, the Parties Agree as follows:

1. The Parties intend to utilize the Omnia Contract for the goods and services detailed in Quote Q-834688-004 (the “Quote”) attached hereto as Exhibit A.

2. The term of this Agreement shall begin upon the date of last signature and shall continue until all subscriptions hereunder have expired or have been terminated. In the event the term of the subscriptions extends past the termination or expiration of the Omnia Contract, the terms and conditions of the Omnia Contract shall remain in full force and effect as it applies to the Quote and will continue in effect for such order until the term of that Quote expires or the order is cancelled or terminated in accordance with the terms of this Agreement.

This Agreement, together with the Omnia Contract, constitutes the entire agreement between the parties relating to the subject matter of this Agreement. All prior understandings, agreements, correspondence and discussions of the parties are merged into and made a part of this agreement.

This Agreement may be executed by the Parties by facsimile and in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

Each representative identified below declares they have been expressly authorized to execute this Agreement as of the date of signature.

Axon Enterprise, Inc. Agency
Signature: Signature:

Name: Name:

Title: Title:

Date: Date:
1139

Costa Mesa City CouncilOctober 6, 2026

Costa Mesa City Council
October 6, 2026