Fountain Valley City Council
May 2, 2023

City Council Regular Meeting Agenda Page 1 March 21, 2023

AGENDA

CITY COUNCIL/ SUCCESSOR

AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/

FOUNTAIN VALLEY HOUSING AUTHORITY

Closed Session 4:45 p.m.

Regular Meeting 6:00 p.m.

Tuesday, May 2, 2023
Council Chambers
10200 Slater Avenue
Fountain Valley, CA 92708
http://www.fountainvalley.org
MEETING ASSISTANCE: In compliance with the Americans with Disabilities Act, anyone needing special assistance to participate in a meeting of the government bodies listed herein should contact the City Clerk’s Office at (714) 593-4445. Notification 72 hours prior to the meeting allows the City to make reasonable arrangements to ensure accessibility to the meeting.

AGENDA COMMUNICATIONS: All revised or additional documents and writings related to an item on this agenda provided to all or a majority of the government body members after distribution of the agenda packet, are available for public inspection (1) in the City Clerk’s Office at 10200 Slater Avenue, Fountain Valley, CA 92708 during normal business hours; and (2) in the Council Chambers at the time of the meeting. Unless directed otherwise by a government body listed herein all actions shall be based on/memorialized by the latest document submitted as a late communication.

PUBLIC COMMENTS/PUBLIC HEARINGS: Persons wishing to address the Cit y Co unci l or oth er government body listed complete a speaker card and give it to the City Clerk prior to the public comment period. Requests to speak will not be accepted after the public comment session begins without permission of the Mayor/Chair. Speakers must limit remarks to a total of (3) three minutes and address the City Council through the Mayor.

Comments to individuals or staff are not permitted. Scheduled Matters, including Public Hearings: Indicate on the card what item you want to address. Unscheduled Matters: Indicate on the card what subject matter you
want to address. Comments must be related to issues that are within the jurisdiction of the governing body listed on the agenda. Pursuant to the Brown Act, the governing body may not enter into discussion regarding items not on the agenda.

CONSENT CALENDAR: All matters listed under the Consent Calendar are considered by the governing bodies listed herein to be routine and will be enacted on simultaneously with one motion without discussion unless separate action and/or discussion is requested by a governing body member, staff, or a member of the public.

PUBLIC HEARINGS: Persons wishing to speak in favor of or in opposition to a proposal are given an opportunity to do so during the public hearing. Those wishing to address a governing body during the hearing are requested to complete the speaker card and submit it to the City Clerk prior to the hearing. If a proposed action is challenged in court, there may be a limitation to
raising only those issues raised during the hearing or in written correspondence received by the governing body at or before the hearing.

Note: The Fountain Valley City Council serves as the Successor Agency to the Fountain Valley Agency for Community Development (Successor Agency), the Fountain Valley Housing Authority, and the Fountain Valley Finance Authority. The Actions of the Successor Agency are separate and apart from the actions of the City Council.

ZOOM LINK INFORMATION
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 All public comments are allowed up to 3 minutes to speak.

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Time: May 2, 2023 06:00 PM Pacific Time (US and Canada) Join Zoom Meeting
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CLOSED SESSION
CALL TO ORDER 4:45 p.m.

PUBLIC COMMENTS (Closed Session matters only)
Persons wishing to speak on a Closed Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Section 54956.9
Name of case: WISP v. City of Fountain Valley (Federal Communications Commission)

2. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case:  In re Admin Cite C5000108 - Linh Do

3. CONFERENCE WITH LEGAL COUNSEL
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9:  1potential case

OPEN SESSION
CALL TO ORDER 6:00 p.m.

INVOCATION Pastor Glen Haworth from The Fount Church
SALUTE TO THE FLAG Council Member Patrick Harper

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Cunneen, Harper, Mayor Pro Tem/Vice Chair Grandis, Mayor/Chair Constantine

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS

CITY MANAGER / MAYOR UPDATE

PRESENTATIONS
 Recognition of Fire Chief Bill McQuaid – Presented by Mayor Kim Constantine

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
The Unscheduled Matters Public Comments portion will last 15 Minutes at the beginning of the meeting. Any requests to speak on unscheduled matters after the initial 15 minutes, will be heard at the end of the meeting, unless the Mayor approves an extension of this time. If an individual speaks during the First unscheduled matters time period, they do not get to speak at the end of the meeting as well. Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

PUBLIC COMMENTS (Scheduled Matters Only)
Persons wishing to speak on Agenda item(s) are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. Each person will be given up to 3 minutes to speak on the entire Consent Calendar, 3 minutes to speak on each item pulled from the consent calendar, and 3 minutes to speak on any agendized item(s) not appearing on the Consent Calendar.

CONSENT CALENDAR
Consent Calendar Items 1 – 8 will be approved simultaneously with one motion, unless separate action/or discussion is requested.

1. Waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only.

2. Receive and File the Draft Minutes of the April 18, 2023 Regular City Council Meeting

3. Approve the Water Loss Control Shared Services Election Form for FY 23-24 with the Municipal Water District of Orange County Page 14
Recommended Action: Staff recommends that the City Council approve Alternative No. 1, which is to approve the Water Loss Control Shared Services Election Form for FY 23-24 with the Municipal Water District of Orange County.

4. Approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for Water Loss Control Technical Assistance in the amount of $10,120 Page 25
Recommended Action: Staff recommends that the City Council approve Alternative No. 1, which is to approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance in the amount of $10,120.

5. Approve Budget Transfer from Traffic Improvement Fund-Streets to Traffic Improvement Fund-Signals & Lights for $20,000. Authorize Staff to execute change order to Traffic Signal Timing Monitoring PO with AGA Engineers, Inc. to increase PO by $20,000 Page 36 Recommended Action: Staff recommends the City Council approve the following: 1. Approve a Budget Transfer from Traffic Improvement Fund - Streets (TI Streets 242.50.95001.55521) to Traffic Improvement Fund – Signals & Lights (TI Signals & Lights GL# 242.50.95001.55527) with Project String#: E-2422325101.20.200 for $20,000. 2.

Authorize Staff to execute a change order to the Traffic Signal Timing Monitoring Purchase Order with AGA Engineers, Inc. to increase the Purchase Order by $20,000.

6. Adopt a Resolution to Establish a Retiree Health Savings (“RHS”) Plan Agreement No. 800414 with Retirement Health Savings (RHS) Account for the City Manager Page 41 Recommended Action: Staff is recommending City Council approval of Alternative No. 1 to Adopt a Resolution

7. Hoy Civil Engineering As Needed Professional Engineering Services.

1. Approve a Budget Transfer of $20,000 from the FY22/23 General Fund Engineering Budget to the General Fund Traffic Budget.

2. Approve Amendment No. 1 to the Hoy Civil Engineering CON-126 Page 109 Recommended Action: Staff recommends that the City Council approve Alternative No. 1, which is to:

1. Approve a Budget Transfer of $20,000 from the FY22/23 General Fund Engineering Budget to General Fund Traffic Budget.

2. Approve Amendment No. 1 to the Hoy Civil Engineering CON-1267 for As Needed Professional Engineering Services for $50,000 and a time extension for six months.

3. Authorize Staff to execute a Change Order to the Hoy Civil Engineering Purchase Order to increase the Purchase Order by $50,000.

8. Lease Amendments to Contracts 11-50 and 06-02 with the Boys and Girls Clubs of Huntington Valley

1. Approval of Amendment #5 to Contract 11-50 between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the Child Page 146 Approve Amendment to Contracts 11-50 and 06-02

PUBLIC HEARING

9. Public Hearing - Approval of the FY 23-24 Community Development Block Grant (CDBG) Annual Action Plan – Presentation by Ashlyn Newman, Housing Coordinator Page 180 Recommended Action: Conduct a Public Hearing for the FY 23-24 Action Plan, approve the FY 23-24 Action Plan, and authorize the City Manager to execute all documents necessary to submit the final FY 23-24 Action Plan to HUD prior to the May 16, 2023 deadline.

ADMINISTRATIVE ITEMS

10. The City of Fountain Valley Police Department Locker Room Improvement Project

1. Accept the bids and award a construction contract for $3,539,999.99 to Archico Design Build Inc. for the City of Fountain Valley Police Department Locker Room Improvement Project – Presentation by HyeJin Lee, Public Works Director and Matt Sheppard, Chief of Police Page 250
Recommended Action: Staff recommends that the City Council:

1. Accept the bids and award a construction contract amount of $3,539,999.99 to Archico Design Build Inc. for the City of Fountain Valley Police Department Locker Room Improvement Project (the Project);

2. Approve Amendment No. 4 for $315,600 to the Interwest Consulting Group, Inc. CON 21- 72 (Munis CON 1142) for As-Needed On-Call Construction Management and Inspection Services; and,

3. Approve a project budget increase of $1,464,925, for total project budget of $4,464,925 to be split between FY 2022-23 and FY 2023-24.

11. Report from the Measure HH Essential City Services Advisory Oversight Committee on FY2021-22 Audited Measure HH Revenues and Expenditures – Presentation by Ryan Smith, Finance Director Page 344
Recommended Action: Receive and File the Report from the Measure HH Essential City Services Advisory Oversight Committee on FY2021/22 Audited Measure HH Revenues and Expenditures.

12. Approve a Memorandum of Understanding between the City of Fountain Valley and the Fountain Valley Community Foundation to Support the Annual Summerfest Event – Presentation by Rob Frizzelle, Community Services Director Page 358 Recommended Action: Approve the MOU between the City and the FVCF to support the annual Summerfest event.

13. A Resolution of the City Council of the City of Fountain Valley ending the Level 2 Water Supply Shortage declaration and returning to Level 0 Normal Water Supply Conditions requiring public compliance with permanent water conservation practices and the State’s ban on using potable water to irrigate non-functional turf at commercial, industrial and institutional sites – Presentation by Christine Smith, Management Analyst Page 368 Recommended Action: Staff recommends that the City Council approve Alternative No. 1, which is to adopt a resolution of the City Council of the City of Fountain Valley ending the declared Level 2 Water Supply Shortage and returning to Level 0 Normal Water Supply Conditions requiring public compliance with permanent water conservation practices and the State’s ban on using potable water to irrigate non-functional turf at commercial, industrial and institutional sites.

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL

COMMENTS

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR

AGENCY/HOUSING AUTHORITY
The next Regular Meeting of the Fountain Valley City Council is May 16, 2023 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.

MINUTES OF THE

CITY COUNCIL/ SUCCESSOR AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/ FOUNTAIN VALLEY

HOUSING AUTHORITY
Closed Session 5:000 p.m.

Regular Meeting 6:00 p.m.

Tuesday, April 18, 2023
Council Chambers

CLOSED SESSION
CALL TO ORDER 5:00 p.m.

PUBLIC COMMENTS (Closed Session matters only)
There were no public comments

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Auster v. City of Fountain Valley OCSC Case No. 30-2020-01158809 There was no reportable action

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 17101 Bushard (APN: 167-301-04)
Agency Negotiators: Maggie Le, City Manager; Omar Dadabhoy, Community Development Director/Deputy City Manager; Ryan Smith, Finance Director; Colin Burns, Attorney for the City; Bill McQuaid, Fire Chief, Celeste Brady, Special Counsel Negotiating Parties: Kim Raeburn Henry, as Trustee, of The BSK Family Trust, Dated December 18, 2020
Direction re Price and terms of payment.

There was no reportable action

OPEN SESSION
CALL TO ORDER 6:04 p.m.

INVOCATION Council Member Jim Cunneen
SALUTE TO THE FLAG Council Member Ted Bui

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members Present: Bui, Cunneen, Harper, Mayor Pro Tem/Vice Chair Grandis, Mayor/Chair Constantine

Council Members Absent: None

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
None

CITY MANAGER / MAYOR UPDATES
City Manager Maggie Le spoke about community service day on April 22nd, Advisory for the Persons with Disabilities Dance on Friday April 28th, Rotary honoring the School Teachers of the Year on May 2 nd and City Hall will be closed on April 21st
.

Mayor Constantine spoke about the new signals with protected left hand signals now. The bridges at Brookhurst and Ward are scheduled to re-open in late May / early June, The Warner Bridge will re-open in late June and the Newland Bridge will re-open in late July.

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Evan Jorgensen

CONSENT CALENDAR
Consent Calendar Items 1 – 5 were approved simultaneously.

1. Waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only
ACTION: Move to Waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only.

MOTION: Grandis SECOND: Bui
AYES: Bui, Cunneen, Harper, Grandis, Constantine
NOES: None
ABSENT: None
ABSTAIN: None

2. Receive and File the Draft Minutes of the April 4, 2023 Regular City Council Meeting
ACTION: Move to Receive and File the Draft Minutes of the April 4, 2023 Regular City Council Meeting
MOTION: Grandis SECOND: Bui
AYES: Bui, Cunneen, Harper, Grandis, Constantine
NOES: None
ABSENT: None
ABSTAIN: None

3. City of Fountain Valley Six Month Strategic Objectives Update for November 17, 2022 through May 11, 2023
ACTION: Move to Receive and File the Fountain Valley Six Month Strategic Objectives Update for November 17, 2022 through May 11, 2023
MOTION: Grandis SECOND: Bui
AYES: Bui, Cunneen, Harper, Grandis, Constantine
NOES: None
ABSENT: None
ABSTAIN: None

4. Award of Contract for Environmental Services to Phil Martin for the Our Lady of Guadalupe Project
ACTION: Move to Approve and Award a Contract for Environmental Services to Phil Martin for the Our Lady of Guadalupe Project
MOTION: Grandis SECOND: Bui
AYES: Bui, Cunneen, Harper, Grandis, Constantine
NOES: None
ABSENT: None
ABSTAIN: None

5. Adopt a Resolution of Intent of the City Council to Withdraw from Prism Insurance Pool
ACTION: Move to Adopt a Resolution of Intent of the City Council to Withdraw from Prism Insurance Pool
MOTION: Grandis SECOND: Cunneen
AYES: Bui, Cunneen, Harper, Grandis, Constantine
NOES: None
ABSENT: None
ABSTAIN: None

PUBLIC HEARING

6. Adopt a Resolution of Intention and Approve a First Reading of an Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley
Public Hearing Opened: 6:15 p.m.

No Public Comments
Public Hearing Closed: 6:15 p.m.

ACTION: Move to Adopt a Resolution of Intention and Approve a First Reading of an Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley MOTION: Grandis SECOND: Cunneen
AYES: Bui, Cunneen, Harper, Grandis, Constantine
NOES: None
ABSENT: None
ABSTAIN: None

ADMINISTRATIVE ITEMS

7. Approve the purchase of Nutanix HCI, and authorize the City Manager to execute an agreement with IMPEX Technologies
Mayor Pro Tem Grandis Recused himself from this item and left the dais at 6:18 p.m.

ACTION: Move to Adopt a Resolution of Intention and Approve a First Reading of an Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley
MOTION: Grandis SECOND: Cunneen
AYES: Bui, Cunneen, Harper, Constantine
NOES: None
ABSENT: None
RECUSED: Grandis
Mayor Pro Tem Grandis returned to the Dais at 6:22 p.m.

8. Authorize the Finance Director to create a Measure HH Reserve and assign $23,261,479 of General Fund Capital Project reserves to the newly created Measure HH reserve

Public Comments: Evan Jorgensen, Stephen Schwarz
ACTION: Move to Authorize the Finance Director to create a Measure HH Reserve and assign $23,261,479 of General Fund Capital Project reserves to the newly created Measure HH reserve
MOTION: Cunneen SECOND: Constantine
AYES: Bui, Cunneen, Harper, Grandis, Constantine
NOES: None
ABSENT: None
ABSTAIN: None

9. Adopt the City Council Resolution that: (a) makes certain findings under CEQA, (b) approves the Purchase and Sale Agreement to acquire the Property located at 17101 Bushard Street, Fountain Valley, CA 92708 for a purchase price of $8,125,000, (c) authorizes and directs the City Manager to take all necessary steps to close escrow and complete the purchase of the Property; and (d) appropriates General Fund reserve assigned to Measure HH in the amount of $8,185,000 to purchase the property and pay all closing costs and installation of security measures
Public Comments: Evan Jorgensen, Stephen Schwarz and Charles Hoyt ACTION: Move to Adopt the City Council Resolution that: (a) makes certain findings under CEQA, (b) approves the Purchase and Sale Agreement to acquire the Property located at 17101 Bushard Street, Fountain Valley, CA 92708 for a purchase price of $8,125,000, (c) authorizes and directs the City Manager to take all necessary steps to close escrow and complete the purchase of the Property; and (d) appropriates General Fund reserve assigned to Measure HH in the amount of $8,185,000 to purchase the property and pay all closing costs and installation of security measures and $6 Million coming from the Measure HH Fund and the remainder of the funds coming from the General Fund.

MOTION: Grandis SECOND: Bui
AYES: Bui, Cunneen, Grandis, Constantine
NOES: Harper
ABSENT: None
ABSTAIN: None

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
None

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
None

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL COMMENTS Council Member Bui
April 6 Attended the Municipal Water District Annual Elected official forum April 8 Attended the FV Easter Egg Hunt
April 15 Attended the Elite CCW Training Grand Opening and Poker Tournament April 18 Attended the FV School District Annual Art Fair Council Member Cunneen
April 8 Attended the FV Easter Egg Hunt
April 18 Attended the quarterly OCTA Citizens Advisory Committee Mayor Pro Tem Grandis
April 6 Attended the Municipal Water District Annual Elected official forum April 8 Attended the FV Easter Egg Hunt
April 11 Attended the OC San Tour of Huntington Beach and Admin Meeting April 13 Attended the FV Kiwanis Board Meeting
April 14 Attended the Ground Water Replenishment System Dedication Ceremony April 15 Attended the Elite CCW Training Grand Opening and the Poker tournament Mayor Constantine
April 6 Viewed the MWDOC (Municipal Water District of Orange County) Annual Elected Forum on Zoom, then watched the Fountain Valley School Board Meeting on YouTube.

April 8 Attended the Annual Easter Egg Hunt at the FV Sports Park, then attended the Green Valley Easter Eggcitement event on the Green Valley South Greenbelt.

April 10 Attended the FV Friends of the Library Volunteer Luncheon at Stonefire Grill.

April 11 Watched the OC Board of Supervisors Meeting on the County’s website.

April 12 Watched the FV Planning Commission Meeting on the City’s website.

April 13 Attended the FV Chamber of Commerce GAC Meeting (Government Affairs Committee Meeting) at Sonesta Suites, then attended the FV Friends of the Library Board Meeting at the FV Library, and later attended the grand opening / ribbon cutting for Sassy Salon at 18946 Brookhurst and presented them with a certificate on behalf of the City.

April 14 Attended the GWRS (Groundwater Replenishment System) Final Completion Dedication at the OC Water District at 18700 Ward Street and presented them with a certificate on behalf of the City, then stopped by the Movie for Senior Citizens at the FV Community and Senior Center. The movie was “Elvis”.

April 15 Stopped by the Free Compost Giveaway Event at the FV Sports Park — at Frontage Road, then attended the grand opening / ribbon butting for Elite CCW and Firearm Training at 18183 Euclid and presented them with a certificate on behalf of the City. Later, I assisted with t-shirt preparation and distribution at the Fountain Valley Community Foundation Charity Poker Tournament Fountain Valley Community and Senior Center.

April 16 Attended the Measure HH Oversight Advisory Committee Meeting at FV City Hall.

April 18 Attended the “Most Improved Student” Rotary Meeting at the FV Community and Senior Center and presented 3 students certificates on behalf of the City.

Council Member Harper
April 8 Attended the FV Easter Egg Hunt
April 10 Attended the OCTA Board meeting
April 12 Attended the OCTA Finance Committee
April 14 Attended the Ground Water Replenishment System Dedication Ceremony

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY/HOUSING

AUTHORITY

Mayor Constantine adjourned the meeting at 7:28 pm to the next Meeting of the Fountain Valley City Council on May 2, 2023 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.
________________________________________________________________________________________________________________________________ Kim Constantine, Mayor
Attest:
___________________________
Rick Miller, City Clerk

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 2, 2023
Members of the City Council
SUBJECT: Approve the Water Loss Control Shared Services Election Form for FY 23-24 with the Municipal Water District of Orange County
Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

The Municipal Water District of Orange County (MWDOC) and its member agencies, including the City of Fountain Valley, are preparing for the next phase of water conservation legislation.

In addition to requiring annual validated water loss reporting, Senate Bill (SB) 555 will require water agencies to comply with system-specific water loss standards established by the State Water Resources Control Board. SB 606 and Assembly Bill (AB) 1668 will also require agencies to operate within an annual water supply allocation budget that includes the distribution system water loss. In order to comply with these new requirements, water agencies will need to identify and take steps to reduce sources of water loss within their systems.

Based on the common needs of member agencies, the MWDOC Board approved a business plan to provide Water Loss Control Shared Services to assist member agencies in complying with current and future legislation. This service from MWDOC minimizes time-consuming administration and provides economy-of-scale cost-benefit to all member agencies.

In September 2019, the City of Fountain Valley entered into the Water Loss Control Shared Services Agreement (Agreement) with MWDOC, in which the City may opt-in and out of shared services annually on an as-needed basis. Heading into year five of the Agreement, staff has identified Water Audit Validation, Meter Accuracy Testing and Distribution System Leak Detection as needed services in FY 23-24.

Staff recommends that the City Council approve the Water Loss Control Shared Services Election Form for FY 23-24 with the Municipal Water District of Orange County.

FY 23-24 – Water Loss Control Shared Services
May 2, 2023

DISCUSSION:

During the California Drought of 2012-2016, the Governor issued Executive Order B-37-16 mandating water conservation throughout California. In response to implementing the Executive Order, the California Department of Water Resources and State Water Resources Control Board drafted the framework for “Making Water Conservation a Way of Life.” This is more than a marketing slogan; it establishes a new foundation for California’s long-term commitment to water conservation, water use efficiency, and drought planning in order to sustain the state’s water supply. This commitment is backed by legislation designed to improve and measure water conservation and drought planning throughout the state to ensure that we have enough water now and in the future.

All water agencies are required to prepare the Urban Water Management Plan (UWMP) every 5 years per the Urban Water Management Planning Act of 1983. Over the years, additional requirements have been incorporated into the UWMP. On September 19, 2014, Senate Bill (SB) 1420 was adopted thus requiring water agencies to audit their distribution system water loss annually and to report the information in their Urban Water Management Plans. The bill also requires water agencies to report the information to the Department of Water Resources (DWR) annually. SB 555, which was adopted on October 9, 2015, established the additional requirement that the annual water loss audit submitted to DWR be validated by a third party, beginning October 2017.

In addition to requiring annual validated water loss reporting, SB 555 will require water agencies to comply with supplier-specific water loss standards established by the State Water Resources Control Board. SB 606 and Assembly Bill (AB) 1668, which were adopted on May 31, 2018, will also require agencies to operate within an annual water supply allocation budget that includes distribution system water loss. In order to comply with these new requirements, water agencies will need to identify and take steps to reduce sources of water loss to ensure that they are making every drop count.

Based on the common needs of member agencies, the MWDOC Board approved a business plan to provide Water Loss Control Shared Services to assist member agencies in complying with current and future legislation. MWDOC’s shared services program provides retail agencies flexible and cost-effective access to water loss control technologies and expertise to improve water loss within their systems. The Water Loss Control Shared Services Agreement has an initial term of five years, and automatically renews for another five years unless either of the parties terminates the agreement. Participating agencies opt in and out of shared services annually on an as-needed basis. Benefits of participating in the Shared Services program include:
 Competitive or lower cost services than can be provided by the private sector  Quality services on par with or better than those provided by the private sector  Economies of scale that can be realized by providing services at a regional level  Continued collaboration and shared learning among all agencies  Phased implementation of new shared services over time based on need

FY 23-24 – Water Loss Control Shared Services
May 2, 2023

In September 2019, the City of Fountain Valley entered into the Water Loss Control Shared Services Agreement (Agreement) with MWDOC and elected which services the City wanted to participate in during Year 1. Since then, the City has elected which services the City wants to participate in on an annual basis.

The MWDOC Water Loss Control Shared Services program is now entering its fifth year and is offering the following services to participating agencies in FY 23-24:
 Task 1 – Water Audit Validation
 Task 2 – Meter Accuracy Testing
 Task 3a – Distribution System Leak Detection
 Task 3b – Suspected Leak Survey
 Task 4 – Distribution System Pressure Survey
Staff recommends that the City participate in MWDOC’s Water Loss Control Shared Services program Task 1 – Water Audit Validation, Task 2 – Meter Accuracy Testing and Task 3a – Distribution System Leak Detection for FY 23-24.

Water audit validation is required by all agencies and will be provided by MWDOC as a core service at no cost to member agencies.

Water meter accuracy testing is an important tool in water loss control. It determines and monitors meter accuracy over time, identifies inaccuracies that may result in volumetric and financial loss, and provides insights into the City’s apparent water loss. With this in mind, staff worked with Water Systems Optimization, Inc. (which is now E Source), through MWDOCs Water Loss Control Technical Assistance program, to design both a small meter testing program and a large meter testing program. Since the City’s AMI water meters are relatively new, the City will be testing 30 random small meters a year to characterize the typical performance of small meters throughout the City. In contrast, the large meter testing program will focus on the individual performance of high volume meters ranging in size from 2 inches to 10 inches. The City will test over 90 large meters a year based on a 6-year schedule that will test approximately 550 meters at least once. High volume/high revenue meters will be tested more frequently based on their calculated optimum test and repair frequency. The meter testing results will be utilized to perform a component analysis of apparent losses to identify areas of apparent water loss that the City may want to address in order to comply with the new regulatory standards by 2028.

Distribution system leak detection is also an important tool in water loss control. In fact, it is so important, that the Metropolitan Water District of Southern California is providing a $170 per mile of main incentive for leak detection in FY 23-24. This incentive brings the City’s cost of distribution system leak detection down from $300 per mile to $130 per mile. Using a comprehensive acoustic survey, such as the one provided by MWDOC, to identify unreported leaks in the system allows for the repair of leaks and a better understanding of the distribution system. Identifying and repairing unreported leaks will assist the City in reducing real water loss and complying with the new regulatory standards. Reducing the amount of water loss due to leakage also reduces production costs, including energy costs, by reducing the amount of water that needs to be produced. Staff is recommending that the City utilize available water

FY 23-24 – Water Loss Control Shared Services
May 2, 2023

conservation funding to conduct an acoustic leak detection survey of the entire 217-mile distribution system. The results of the survey will allow the City to repair the identified leaks and plan for future water loss control actions based on the condition of the distribution system.

It should be noted that although compliance with the new water loss standards is not required until 2028, data from 2025, 2026 or 2027 will be used to assess compliance.

FISCAL REVIEW:

The cost of the selected water loss control shared services for FY 23-24 will be expensed to Public Works accounts within the Water Utility Fund. The water audit validation is a core service provided by MWDOC to member agencies at no cost. The water meter testing services will be expensed to the Service Contracts account for Meter M&R (500.50.50574.53010), and the distribution system leak detection services will be expensed to the Water Conservation account for Water Distribution (500.50.50571.53550).

Cost for FY 23-24 – Water Loss Control Shared Services
Account Task Cost
n/a Task 1 – Water Audit Validation $0
500.50.50574.53010 Task 2 – Meter Accuracy Testing $15,096 500.50.50571.53550 Task 3a – Distribution System Leak Detection $28,210 Total $43,306*
*All remaining funds provided to MWDOC for meter accuracy testing for FY 22-23 will be applied to the cost of meter accuracy testing in FY 23-24, thus reducing the total cost.

The proposed FY 23-24 budget allocates $30,000 for meter testing and repair and $100,000 for water conservation efforts. Therefore, there are sufficient funds for the water loss control shared services selected by the City for FY 23-24.

PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the Water Loss Control Shared Services Election Form for FY 23-24.

ALTERNATIVES:

Alternative No. 1: Approve the Water Loss Control Shared Services Election Form for FY 23-24 with the Municipal Water District of Orange County. This is the recommended action, as it will allow the City to submit a

FY 23-24 – Water Loss Control Shared Services
May 2, 2023

validated water loss audit in compliance with SB 555, as well as gain important data regarding meter accuracy and unreported leaks within the distribution system to help the City better understand its water loss profile and comply with future water conservation legislation and standards.

Alternative No. 2: Do not approve the Water Loss Control Shared Services Election Form for FY 23-24 with the Municipal Water District of Orange County. This is not the recommended action, as it will make it necessary for the City to procure the needed services
independently, without the benefits provided by MWDOC’s shared services program and their expertise in overseeing these efforts on behalf of their member agencies.

RECOMMENDATION:

Staff recommends that the City Council approve Alternative No. 1, which is to approve the Water Loss Control Shared Services Election Form for FY 23-24 with the Municipal Water District of Orange County.

Prepared by: Christine Smith, Senior Management Analyst Reviewed by: Mark Sprague, Field Services Manager
Approved by: Hye Jin Lee, Director of Public Works
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments:

1. WLC Shared Services FY 23-24

EXHIBIT A
Water Loss Control Shared Services
Election Form
Fiscal Year 2023-2024
Year 5
Water Loss Control Shared Services
Agency:

Contact Person:

Contact E-mail:

Contact Phone:

Task 1: Water Audit Validation
Water audit validation will be conducted at Level 1, according to the methodology established in Water Research Foundation project 4369: Level 1 Water Audit Validation Guidance Manual.

Water audit validation aims to identify and appropriately correct for inaccuracies in water audit data and application of methodology. Furthermore, validation also evaluates and communicates the uncertainty inherent in water audit data. To accomplish these goals, MWDOC’s validation Shared Service will follow the steps published in the Water Research Foundation Level 1 Water Audit Validation Guidance Manual. The process will include:
 Review the water audit and supporting documentation.
 Review performance indicators for evidence of inaccuracy.  Review audit inputs and data validity grades and confirm correct application of methodology in a Level 1 validation interview. Adjust inputs and data validity grades, if necessary.
 Review performance indicators again for evidence of persisting inaccuracy.  Document results.

MWDOC’s validation Shared Service will also employ the California-specific additional guidance developed by the California Water Loss Technical Assistance Program and subsequently taught in the Water Audit Validator (WAV) certificate course.

Validation results will be documented in a format acceptable to the Department of Water Resources. Templates for this format have been published by the California-Nevada section of the American Water Works Association on their WAV Certification webpage.

Deliverables include:
 Level 1 Validation Summary Notes
 Certified Validation Report (signed by validator)
___ Yes
___ No
$
Water Balance Validation is a Core service provided by MWDOC to its member agencies at no cost. MWDOC member agencies are requested to check the box to the left indicating their choice to have MWDOC validate their annual water balance.

The Cities of Anaheim, Fullerton, and Santa Ana may access MWDOC’s Water Audit Validation service for a fee of $990 per validation.

City of Fountain Valley
Christine Smith
[email protected]
714-593-4603
X

Task 2: Meter Accuracy Testing
Customer meter accuracy testing enables an agency to measure a retail meter’s performance and, consequently, the throughput that the meter fails to register. By measuring a meter’s inaccuracy, an agency can understand financial loss due to meter inaccuracy and can develop a plan to manage the meter performance within their system.

Customer meter tests will be conducted in accordance with the methodology set forth in American Water Works Association manual M6, Water Meters – Selection, Installation, Testing, and Maintenance. The stipulations in manual M6 include:
 Specific low, medium, and high flow rates for each meter type and size  Minimum test volume by flow rate and meter size
 Generally acceptable accuracy limits for new and repaired meters M6 also enumerates test procedures for laboratory tests and field tests that MWDOC staff and/or contractors will be required to follow.

Agencies can choose between two customer meter accuracy testing service providers: McCall’s Meters, Inc. or Westerly Meter Service Company. The Meter Accuracy Testing (MAT) Worksheet, Attachment 2 to this document, summarizes the fees for each meter accuracy testing service provider. Note that the fees are slightly different between providers. As a result, each service provider has its own MAT Worksheet. Agencies will need to:
 Select the meter accuracy testing company of their choice,  Identify the number and sizes of meters to be tested (green data entry cells), and
 Estimate the number of meetings (McCall’s) or hours and mileage (Westerly) for meetings with the selected company.

This worksheet should be used to calculate the total cost for meter accuracy testing services for your agency. The cost estimate calculated in the MAT Worksheet should be entered into the shaded cell immediately below. Water Systems Optimization, Inc. (WSO) is available to assist agencies in quantifying the number and sizes of meters to be tested as part of Task 3: Component Analysis of Apparent Losses.

Small meter (5/8 – 2 inch) testing will require agencies to pull the meters from the field and deliver them to the selected meter testing company. Meter testing company locations are provided below. Large meters (3 inch and larger) will be tested in-situ.

McCall’s Meters, Inc. Westerly Meter Company
1498 Mesa View Street 403 East Carlin Street
Hemet, CA. 92543 Compton, CA. 90222
(951) 654-3799 (310) 637-9000
Deliverables include:
 Meter accuracy testing results
 Warehousing of test results data
$
$________
$
MWDOC Administrative Fee = $346
Input the total dollar amount calculated in the MAT Worksheet.

Task 2 Total
346
14,750
15,096

Task 3a: Distribution System Leak Detection
Leak detection will be conducted using a comprehensive acoustic survey, meaning that leak detection technicians will sound all accessible appurtenances regardless of spacing distances. The following protocols will be adopted for leak detection:
 Sounding points: Physical contact and sonic leak sound amplification will occur for each hydrant, and customer service connection. Valves may be used as contact points, if necessary.
 Sonic ground listening (hard cover): When normal contact points are not available or cannot be created within a reasonable distance, sonic ground listening devices will be used by making ground contact directly over the pipe at intervals no greater than six (6) feet when ground cover is pavement, concrete, or a similar hard surface. If excessive ambient noise precludes the effectiveness of the ground listening device in an area during daytime hours, then survey will be considered during nighttime hours. Such situations will be pre-approved with retail agency staff before any night surveying is undertaken.  Sonic ground listening (soft cover): When normal ground contact points are not available and ground cover is not a hard surface, probe rods will be used at 10-foot intervals. A sound amplifier will be used on probe rods  Verification: All indications of leaks found during initial survey will be verified a second time, after which the leak will be pinpointed with a computer-based leak sound correlator whenever possible. Pinpointing leak locations through interpretation of sound intensity, whether by ear, decibel metering, or comparable methods, will be used when contact points are available for access with a computer-based leak sound correlator.

MWDOC staff will perform distribution system leak detection at a cost of $300 per mile of distribution main surveyed. Metropolitan will contribute $170 per mile thereby reducing the cost to $130 per mile to member agencies. Deliverables include:
 Distribution System Leak Detection Plan
 Weekly progress reporting and leak verification
 Final Reporting
 Training for measuring leak rates in gallons per minute Please note that in order to be eligible to receive Metropolitan funding, participating agencies must provide leak repair results. All leaks must be investigated, repaired or slated for repair and their status reported to MWDOC within 60 days of the completion of the leak survey. If a participating agency does not report this information to MWDOC within 60 days, the participating agency will have to pay the full cost of the survey at $300 per mile.

Participating agencies must elect a minimum of 30 miles or the full system, whichever is less.
$ 28,210 Task 3a total = 217 miles x $130

Task 3b: Suspected Leak Survey
MWDOC staff will perform a suspected leak survey at a cost of $419 per leak investigation. The methodology to detect suspected leaks will employ the same process described in Task 3a. Deliverables include:
 Suspected leak consultation
 Field leak investigation
 Written report and pinpointed leak location
Please note that pricing may vary if the suspected leak survey area extends beyond one city block. For assistance in determining suspected leak survey costs for your needs, please contact Rachel Davis at the number or e-mail address below.

Municipal Water District of Orange County
Rachel Davis
Water Loss Control Programs Supervisor
(714) 593-5308
[email protected]
Please see Attachment 1 for more details.
$ Task 3b Total = ____ number of suspected leaks X $419 Task 4: Distribution System Pressure Survey
The methodology used for pressure surveying depends on the survey goal of: 1) Average zonal and system pressure survey, or 2) Pressure transient survey using high frequency logger. Methodology must be agreed upon with each agency before surveying begins. The methodology to be determined includes:
 Logger settings (e.g. sampling and recording frequencies)  Logger deployment locations
 Logger deployment durations
 Analysis of data after logger retrieval
1) Average Zonal and System Pressure Survey
Pressure loggers can be deployed to evaluate the range of pressures in a system or zone, which can then be used to estimate average system or zonal pressure.

Loggers should be placed strategically, capturing the highs and lows of each pressure zone in the system. The specific survey methodology must be customized to the specific infrastructure being studied.
2) Pressure Transient Survey
A pressure transient survey identifies instantaneous, damaging swings in pressure introduced by infrastructure malfunction, sudden and significant changes in demand, or rapid hydrant operation. Pressure transients move quickly and can only be identified with a high sampling frequency. At minimum, loggers should be deployed immediately upstream and downstream of pressure regulating infrastructure suspected of transient production.

The resulting data analysis will include:
 Transient identification using a relative or absolute amplitude threshold o Absolute: transient amplitude
o Relative: ratio of transient amplitude to average location pressure  Temporal transient alignment to study the direction and speed of transient propagation
MWDOC staff will perform a distribution system pressure survey at a cost of $3,959 per 8-logger survey.
$ Task 4 Total = ____ number of 8 logger surveys X $3,959.

Fiscal Year 23-24
Year 5
Summary of Shared Services Elections:
(transfer total for each Shared Service above to this summary table) Task 1: Water Audit Validation ___Yes
___ No
$_____ (3-Cities only)
Task 2: Meter Accuracy Testing
Total Elected Amount
Less Rollover Funds to be Applied
*Indicate task #(s) to move $ from
$__________
$__________
Task 3a: Distribution System Leak Detection
Total Elected Amount
Less Rollover Funds to be Applied
*Indicate task #(s) to move $ from
Task 3b: Suspected Leak Survey
Total Elected Amount
Less Rollover Funds to be Applied
*Indicate task #(s) to move $ from
$__________
$__________
Task 4: Distribution System Pressure Survey
Total Elected Amount
Less Rollover Funds to be Applied
*Indicate task #(s) to move $ from
$__________
$__________
Total Elected Amount: $
Less Total Rollover Funds to be Applied: $
Total Amount to be Invoiced: $
Check One;
 Invoice Upon Receipt
 Invoice July 1, 2023
By: By:

Date: Date:

Harvey De La Torre,
Interim General Manager
Name:

Title:

Municipal Water District of Orange County Agency:

X
X
Kim Constantine
Mayor
City of Fountain Valley
$_28,210___
$__________
15,096
Task 2 - Meter Accuracy Testing
all remaining FY 22-23 funds
TBD at year end
43,306
43,306 (less rollover funds)

Meter Accuracy Testing (MAT) Worksheet
Westerly Meter Service Company
Rate Quantity Total
Small Meter Testing
5/8 ‐ 1 in.  $30.00   $
1 1/2 in. and up  $70.00   $
3 in. Turbine N/A   $
Large Meter Testing
3 in and up. $200   $
Rates for Pickup or Delivery of
Meters No Charge (1)
Rates for attending meetings   $150/hr. + mileage $
Total: $
(1) No charge for orders transport of over 50 meters.  Transport of less than 50 is based on time and mileage 30 55
900
3,850
50 10,000
14,750
Participating Agency: City of Fountain Valley
Contact Person: Joseph Macias
Phone: 714-593-4625
Email: [email protected]

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 2, 2023
Members of the City Council
SUBJECT: Approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for Water Loss Control Technical Assistance in the amount of $10,120
Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

Senate Bill (SB) 1420 and SB 555 require water agencies to prepare and submit a validated water loss audit annually to the California Department of Water Resources (DWR). Beginning in 2028, SB 555 will also require water agencies to comply with supplier-specific water loss standards.

The City of Fountain Valley does not have the technical expertise needed to comply with these requirements. Therefore, the City entered into a cost-sharing agreement (CON-16-08) with the Municipal Water District of Orange County (MWDOC) for water loss control technical assistance in February 2016. The cost-sharing agreement allows the City to opt into or out of water loss control technical assistance services annually based on the City’s needs.

During FY 2023-24, the City will focus on meeting the reporting requirements of SB 1420 and SB 555 by compiling, documenting, validating, and submitting a CY 2022 Water Audit to DWR by January 1, 2024. City staff has identified the tasks needed to achieve this goal at a total cost of $10,120, which will be fully funded by water conservation funds.

Staff recommends that the City Council approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance in the amount of $10,120.

FY 23-24 – Water Loss Control Technical Assistance
May 2, 2023

DISCUSSION:

During the development of the 2015 Urban Water Management Plan (UWMP), there was an addition to the Urban Water Management Planning Act. Senate Bill (SB) 1420, adopted September 19, 2014, requires water agencies to audit their distribution system water loss annually and to report the information in their Urban Water Management Plans, which are updated every 5 years. The bill also requires water agencies to report the information to the California Department of Water Resources (DWR) annually on a worksheet approved by the department and based on the water system balance methodology developed by the American Water Works Association (AWWA). SB 555, which was adopted on October 9, 2015, established the additional requirement that the annual water loss audit submitted to DWR be validated by a third party, beginning October 2017.

The AWWA water audit methodology provides tested, consistent definitions for the major forms of water consumption and water loss encountered in drinking water utilities. It also features a set of rational performance indicators that evaluate utilities on system-specific attributes, such as the average pressure in the distribution system and total length of water mains that are used to calculate unavoidable system loss (i.e. pipe/joint leakage or low flow meter losses).

The performance indicators allow water utilities to make a meaningful assessment of water loss, benchmark themselves with other water utilities, and set performance targets.

In addition to requiring annual validated water loss reporting, SB 555 will require water agencies to comply with supplier-specific water loss standards beginning in 2028.

To assist Municipal Water District of Orange County (MWDOC) member agencies comply with these requirements, a cost-sharing agreement (Agreement) was offered to streamline the process and lower the individual compliance cost for each participating agency. The Agreement offered access to low-cost training, technical assistance in the field of water loss control, an introduction to the AWWA water audit methodology, water balance software, and assistance in the process of data collection, analyses, verification, and validation for water loss audits. The Agreement allowed participating agencies to select or decline tasks offered by the Agreement annually at their discretion based on their needs.

On September 4, 2015, MWDOC released a Request for Proposal (RFP) to thirteen (13) consultants with expertise in water loss control. After carefully reviewing the four (4) proposals submitted, MWDOC entered into a professional services agreement with Water Systems Optimization, Inc. (WSO) to provide water loss control technical assistance to member agencies.

In February 2016, the City of Fountain Valley, and several other participating agencies, entered into a cost-sharing agreement (CON-16-08) with MWDOC. Each year, the City selects the water loss control technical assistance tasks that meet the City’s needs for the coming fiscal year.

When MWDOC’s original professional services agreement with WSO reached the end of its 5- year term, MWDOC issued a new RFP on October 5, 2020, that defined the scope of water

FY 23-24 – Water Loss Control Technical Assistance
May 2, 2023

loss control technical assistance services desired over the next five years. The RFP was released to 12 consultants with known expertise in distribution system water loss control. Three proposals were received on October 23, 2020, and found to be responsive. A Proposal Evaluation Committee comprised of two MWDOC staff members and four retail agency staff members, reviewed the proposals and concluded that Water Systems Optimization, Inc. (WSO) met the selection criteria most comprehensively. WSO had the most relevant experience, a very capable consultant team, competitive pricing, and was the only consultant to propose value-added tasks beyond those defined in the RFP. The MWDOC Board approved the professional services agreement with WSO, which has a term of up to 5 years, on December 14, 2020.

Since then, WSO was acquired by E Source, a utility research, data science, and consulting firm. The team members and technical assistance provided remain the same.

The MWDOC Water Loss Control Technical Assistance program is now entering its eighth year. Each year MWDOC works with agencies to determine what technical assistance is needed to comply with current and future State requirements. Based on the needs identified, the following services are being offered this year:

CY 2023 - Water Loss Control Technical Assistance Tasks  Task 1: Project Administration & Progress Reporting (REQUIRED)  Task 2: Water Audit Compilation
 Task 3: Source or Production Meter Volumetric Accuracy Testing  Task 4: Billing Data Chain Assessment
 Task 5: Component Analysis
o Task 5a – Component Analysis of Real Losses – Gap Analysis o Task 5b – Component Analysis of Real Losses
o Task 5c – Component Analysis of Apparent Losses
 Task 6: SWRCB Water Loss Standard Assistance
o Task 6a – Information Order Response Assistance
o Task 6b – Off-Ramp Assistance
o Task 6c – Economic Model Custom Input Evaluation
o Task 6d – Questionnaire Response Assistance
 Task 7: Water Loss Team Development
o Task 7a – Team Development Process Maps
o Task 7b – Educational Workshops
 Task 8: Leak Simulation Model
 Task 9: Water Loss Pilot Plan & Evaluation
 Task 10: Water Loss Compliance Plan Development
o Task 10a – Water Loss Compliance Plan Development
o Task 10b – Water Loss Compliance Plan Updated

FY 23-24 – Water Loss Control Technical Assistance
May 2, 2023

Some of the tasks previously offered through the Water Loss Control Technical Assistance agreement, such as water audit validation, leak detection, and meter accuracy testing, are now available through MWDOC’s Water Loss Control Shared Services agreement.

This year the City will focus on meeting the requirements of SB 1420 and SB 555 by compiling, documenting, validating, and submitting a CY 2022 Water Audit to DWR by January 1, 2024.

City staff has identified the tasks needed to achieve this goal and is recommending that the City Council approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance in the amount of $10,120.

FISCAL REVIEW:

The table below shows the task by task cost for the technical assistance to be provided by E Source to the City of Fountain Valley through the Cost Sharing Agreement with MWDOC. The cost of these services will be fully funded by the Water Utility Fund and charged to the Water Conservation account (500.50.50571.53550) of the Public Works Department’s Water Distribution division.

Cost for FY 23-24 – Water Loss Control Technical Assistance Account Task Cost
500.50.50571.53550 Task 1 – Project Administration & Progress Reporting $1,700 500.50.50571.53550 Task 2 – Water Audit Compilation $8,420 Total $10,120
The proposed FY 23-24 budget allocates $100,000 for water conservation efforts. Therefore, there are sufficient funds for the water loss control technical assistance tasks selected by the City for FY 23-24.

PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for Water Loss Control Technical Assistance.

ALTERNATIVES:

Alternative No. 1: Approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County

FY 23-24 – Water Loss Control Technical Assistance
May 2, 2023

for water loss control technical assistance in the amount of $10,120. This is the recommended action as it ensures the City’s compliance with the annual validated water loss control audit requirements of SB 1420 and SB 555.

Alternative No. 2: Do not approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance. This is not the recommended action as City staff lacks the technical expertise required to comply with the reporting requirements of SB 1420 and SB 555.

Alternative No. 3: Do not approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County and direct staff to procure services from another consultant. This is not recommended as MWDOC has conducted a competitive RFP process with a selection committee and selected a qualified consultant for these services. This process not only meets City purchasing policies and procedures but was done by MWDOC to assist its member agencies with this cooperative process that resulted in a highly qualified consultant with a cost that benefits all agencies due to economy of scale.

RECOMMENDATION:

Staff recommends that the City Council approve Alternative No. 1, which is to approve Exhibit A – CY 2023 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance in the amount of $10,120.

Prepared by: Christine Smith, Senior Management Analyst Reviewed by: Mark Sprague, Field Services Manager
Approved by: Hye Jin Lee, Director of Public Works
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments:

1. Exhibit A – CY 2023 of CON-16-08

4 Exhibit A
CY 2023 – Water Loss Control Technical Assistance Tasks (Updated) TASKS 1 PROJECT ADMINISTRATION
Project administration:

Partner with E Source and the larger MWDOC group (Required) ● Communication
● Systems of data collection and management
● Travel expenses
● Invoicing
$1,700 Project administration
TASK 2 WATER AUDIT COMPILATION
Task 2: Water audit compilation:

Estimate apparent and real water loss
Assess data availability and quality
● Water audit data collection and review
● Raw billing data validation (study of completeness and consistency, pro‐rating to reduce lag‐time effects) ● Water audit compilation
● Water audit documentation in preparation for level 1 validation $8,420 Task 2: Water audit compilation
TASK 3 SOURCE OR PRODUCTION METER VOLUMETRIC ACCURACY TESTING Task 3: Source/Production meter volumetric accuracy testing:

Design and conduct a volumetric source meter accuracy test Establish a field‐validated water‐supplied baseline for the water audit Document test procedures for future meter accuracy investigation ● Site visit and test design
● Volumetric accuracy test with comparative meter or reservoir reference volume ● Data chain assessment (“loop audit” or SCADA calibration), if relevant ● Test results analysis and documentation
● Test procedure documentation
$7,060 Task 3: Volumetric production meter accuracy test, per meter.

TASK 4 BILLING DATA CHAIN ASSESSMENT
Task 4: Billing data chain assessment:

Assess billing data for potential errors and/or inconsistencies ● Mapping of meter read collection and billing process
● Comparison of raw data across billing data management platforms (read collection system, billing data system, and reporting system)
● Identification of data transmission errors ‐ misreads, zero reads, dropped reads, duplicated reads, etc. $12,240 Task 4: Billing data chain assessment.

5 TASK 5 COMPONENT ANALYSIS
Task 5a: Component analysis of real losses – Gap Analysis:

Assess repair data in preparation for a real loss component analysis. ● Collection of leakage repair documentation
● Evaluation and summarization of repair data
● Identification of gaps in repair documentation
● Memo documenting recommendations for repair data improvements and documentation Task 5b: Component analysis of real losses:

Establish the distribution system’s unique leakage profile Determine cost‐effective leakage management strategies for the short‐, medium‐, and long‐term ● Collection of leakage repair documentation
● Evaluation of repair process documentation
● Determination of unique leakage profile (background, unreported, and reported leakage) ● Analysis of cost‐effective intervention against leakage ● Leak management program design
Task 5c: Component analysis of apparent losses:

Assess customer meter inaccuracy
Value apparent losses
Design an apparent loss management strategy
● Random and representative small customer meter sample design, if relevant ● Prioritization of large customer meters for testing
● Small and large customer meter testing, as appropriate ● Test results analysis
● Calculation and valuation of apparent losses due to customer meter inaccuracy ● Recommendations for further study and customer meter management $4,140 Task 5a: Component analysis of real losses – Gap Analysis $12,120 Task 5b: Component analysis of real losses
$10,440 Task 5c: Component analysis of apparent losses (meter testing budget through Shared Service Contract is also required if testing cannot be conducted in‐house)

6 TASK 6 SWRCB WATER LOSS STANDARD ASSISTANCE
Task 6a: Information Order Response Assistance:

Document response to Information Ordersfrom the SWRCB related to compliance with the Water Loss Standard. ● Compilation of results and findings from related activities to date ● Memo documenting response to Information Order
Task 6b: Off‐Ramp Assistance:

Document compliance with Off‐Ramp criteria
● Collection of relevant data and supporting documents
● Document activities and/or data proving compliance with each Off‐Ramp criterion ● Compilation of Off‐Ramp request
Task 6c: Economic Model Custom Input Evaluation:

Calculate custom inputs and compile supporting documents for the SWRCB’s economic model. ● Request and compilation of relevant data (e.g. leak repair documentation, leak detection results, financial data, infrastructure data, etc.)
● Review of data collected to identify what custom inputs may be calculated ● Calculation of customized value for inputs where the minimum data threshold is met ● Compilation of supporting documents for input adjustment application ● Assistance with creating memo to the SWRCB, requesting custom input adjustment Task 6d: Questionnaire Response Assistance
Document responses to SWRCB required reporting (Data Quality, Pressure Management, Asset Management, and/or Leak Registry)
● Request and compilation of relevant data
● Review of data collected
● Calculation and/or narration of response to each question ● Review of responses with agency staff
● Assistance with submitting response to questionnaire
$ Varies,
Discuss with
E Source
Task 6a: Information Order Response Assistance
$4,560 Task 6b: Off‐Ramp Assistance
$ Varies,
Discuss with
E Source
Task 6c: Economic Model Custom Input Evaluation
$ Varies,
Discuss with
E Source
Task 6d: Questionnaire Response

7 TASK 7 WATER LOSS TEAM DEVELOPMENT
Task 7a: Team Development Process Maps:

Establish a water loss team roster
Document processes related to water audit data collection ● Interviews with staff
● Identification of key water loss team members
● Document and map water loss data collection processes Task 7b: Educational Workshops:

In‐person educational workshop with agency staff to provide water loss background and connect day‐to‐day tasks with water loss calculation.

Workshops will offer an opportunity to elicit feedback from staff and prepare them for upcoming projects and data requests.
● Development of slides and materials for meeting
● Travel to agency
● Facilitation of educational workshop
$5,660 Task 7a: Team Development Process Maps
$4,340 Task 7b: Educational Workshops
TASK 8 LEAK SIMULATION MODEL
Task 8: Leak Simulation Model:

Quantify the impacts of leak detection technique accuracy on achievable overall system loss rates and projected workload
Evaluate the cost‐benefit of leakage control strategies under varying assumptions of fundamental leakage characteristics.
● Collection of leakage repair documentation
● Assessment of unique leakage profile
● Consider sub‐system level infrastructure characteristics and their impact on loss rates, including pipe‐segment level data for likelihood and consequence of failure, if available. ● Provide an intuitive visualization of the water distribution system that shows how leakage control strategies are implemented and their resulting impact on individual leaks and system‐level leakage rates. ● Estimate future system‐wide loss rates under varying assumptions for leakage characteristics and loss recovery efforts that can be compared with state regulatory targets or other performance goals. ● Project the workload required to implement and maintain various leakage management strategies, including manual acoustic leak detection, automated acoustic noise loggers, satellite leak detection. $ Varies,
Discuss with
E Source
Task 8: Leak Simulation Model

8 TASK 9 WATER LOSS PILOT PROGRAM MANAGEMENT AND EVALUATION Task 9: Water Loss Pilot Program Management and Evaluation:

Develop a pilot plan to assess the effectiveness of leakage management technologies/strategies ● Collection of previous water audits and repair data
● Development of pilot plan detailing the leakage management techniques to be piloted, scale of implementation, and level of effort required from participating agency staff ● Work with participating agency to vet and manage technology providers ● Tracking and collection of data during pilot implementation ● Recommend metrics to evaluate the success of the pilot program and identify data collection necessary to calculate metrics
● Report on the performance of each pilot technology and recommend next steps necessary for full system implementation
$ Varies,
Discuss with
E Source
Task 9: Water Loss Pilot Program Management and Evaluation TASK 10 WATER LOSS STANDARD COMPLIANCE PLAN
Task 10: Water Loss Standard Compliance Plan:

Develop a Water Loss Compliance Plan to assist with meeting the Water Loss Standard ● Review the participating agency’s Water Loss Standard modeled by the SWRCB ● Evaluate data uncertainty and recommendations for data improvement ● If available, consider results of leak simulation model, real loss component analysis, and/or pilot results ● Develop a timeline, cost estimate, and key milestones associated with the Water Loss Compliance Plan, based on existing data sources
$ Varies,
Discuss with
E Source
Task 10: Water Loss Standard Compliance Plan

9 Exhibit A
CY 2023 – Water Loss Control Technical Assistance Tasks CY 2023
Participating Agency:

Cost Sheet for Selected Water Loss Control Services
E Source
Tasks: (Tasks 1 – 10 are performed by E Source) Task
Cost
Selected Water
Loss Control
Services
Task 1 – Project Administration and Progress Reporting (Required) $1,700 $1,700 Task 2 – Water Audit Compilation $8,420 $
Task 3 – Source or Production Meter Volumetric Accuracy Testing $7,060 $ Task 4 – Billing Data Chain Assessment $12,240 $
Task 5 – Component Analysis
Task 5a: Component Analysis of Real Losses – Gap Analysis Task 5b: Component Analysis of Real Losses
Task 5c: Component Analysis of Apparent Losses
$4,140
$12,120
$10,440
$
$
$
Task 6 – SWRCB Water Loss Standard Assistance
Task 6a: Information Order Response Assistance
Task 6b: Off-Ramp Assistance
Task 6c: Economic Model Custom Input Evaluation
Task 6d: Questionnaire Response Assistance
Varies
$4,560
Varies
Varies
$
$
$
$
Task 7 – Water Loss Team Development
Task 7a: Team Development Process Maps
Task 7b: Educational Workshops
$5,660
$4,340
$
$
Task 8 – Leak Simulation Model Varies $
Task 9 – Water Loss Pilot Plan and Evaluation Varies $
Task 10 – Water Loss Compliance Plan Development
Task 10a: Water Loss Compliance Plan Development
Task 10b: Water Loss Compliance Plan Updated
Varies
$
$
Rollover Funds to be Applied: $
New Amount to be Invoiced
(Task Totals Less Rollover Funds) Total: $
This Cost Sheet may be updated upon mutual consent of the parties as indicated in writing.

By: By:

Date: Date:

Harvey De La Torre, Acting General Manager Title:

Municipal Water District of Orange County Agency:

City of Fountain Valley
8,420
10,120
Kim Constantine, Mayor
City of Fountain Valley

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 2, 2023
Members of the City Council
SUBJECT: 1. Approve a Budget Transfer from Traffic Improvement Fund - Streets (TI-Streets 242.50.95001.55521) to Traffic Improvement Fund – Signals & Lights (TI-Signals & Lights GL# 242.50.95001.55527) (Project String#: E-2422325101.20.200) for $20,000.

2. Authorize Staff to execute a change order to the Traffic Signal Timing Monitoring Purchase Order with AGA Engineers, Inc. to increase the Purchase Order by $20,000.

Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☒ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

The City of Fountain Valley (City) has a robust Traffic Management Center and monitors the traffic conditions throughout the City for effective vehicular mobility. At the request of the City, AGA Engineers Inc. submitted a fee proposal for citywide traffic signal timing maintenance.

The scope of work includes remote monitoring of the Fountain Valley traffic signal system and minor signal timing adjustments on an as-needed basis. This work is an integral part of the City’s continuing effort to ease congestion, reduce delays and improve traffic flow. It also allows the City to meet OCTA Measure “M2” requirements.

On June 21, 2022, City Council approved the acceptance of a fee proposal from AGA Engineers Inc. not to exceed $50,000 for Citywide Traffic Signal Timing Monitoring for Fiscal Year 2022-2023 and authorized Staff to issue a Purchase Order to encumber the on-call contract.

Due to a large amount of traffic signal-related CIP projects in Fiscal Year 2022-2023, the Traffic Signal Timing Monitoring Purchase Order (P.O.) 00230146 with AGA Engineers Inc. has been utilized more frequently than in years past. As a result, Purchase Order 00230146 is approximately 75% utilized with CIP projects still ongoing. In order to continue using AGA

AGA Traffic Signal Timing Monitoring Change Order
May 2, 2023

Engineers, Inc. for traffic signal timing maintenance services, an increase of $20,000 in the Purchase Order will be required.

This P.O. for Signal Timing Services and Maintenance is 100% funded by Measure M Funds and there are adequate funds in the Measure M Fund Balance.

Staff recommends City Council:

1. Approve a Budget Transfer from Traffic Improvement Fund - Streets (TI 242.50.95001.55521) to Traffic Improvement Fund – Signals & Lights (TI GL# 242.50.95001.55527) (Project String#: E-2422325101.20.200) for $20,000.

2. Authorize Staff to execute a change order to the Traffic Signal Timing Monitoring Purchase Order with AGA Engineers, Inc. to increase the Purchase Order by $20,000.

DISCUSSION:

On March 24, 2021, Staff solicited qualifications for As-needed Engineering Services on the PlanetBids portal. On April 22, 2021, the City received proposals from 38 vendors for various services including traffic signal timing, maintenance, and repair. After careful consideration and evaluation of proposals, Staff selected ten (10) highest ranked consultants for the on-call list of qualified consultants for as-needed engineering services. This list also allows Staff to solicit competitive bids limited to those pre-qualified consultants.

AGA submitted a fee proposal for citywide traffic signal timing maintenance for Fiscal Year 2022-2023. The City operates and maintains 55 traffic signals at intersections. The City shares three (3) intersections controlled by the City of Santa Ana. The scope of services detailed in the fee proposal includes the preparation of signals and coordination of timing adjustments for all the City’s traffic signals. This citywide traffic signal timing maintenance fee proposal is an integral part of the City’s continuing effort to ease congestion, reduce delays, improve traffic flow, and maintain traffic safety.

AGA successfully implemented traffic signal coordination timing, timing optimization, and occasional timing changes due to traffic volume and pattern changes for the City of Fountain Valley. AGA also provides services to several Orange County agencies, including OCTA. Due to its success, AGA is recognized as one of the best traffic signal timing consultants in the industry, and as such, was the selected consultant for the City’s Traffic Signal Timing Monitoring for Fiscal Year 2022-2023.

Due to a large amount of traffic signal-related CIP projects in Fiscal Year 2022-2023, the Traffic Signal Timing Monitoring Purchase Order 00230146 with AGA Engineers Inc. has been utilized more frequently this year. Specifically, AGA has provided a signal timing review for all ongoing Traffic Signal Synchronization Projects. Additionally, AGA has provided timing services for local events such as the Tet Festival, Shrimp Festival, BBQ Fest, and Summer Fest. AGA has also been integrally involved in the traffic signal turn-on integration support for the Traffic Signal Modification Improvements for the Eight (8) Intersections Project.

AGA Traffic Signal Timing Monitoring Change Order
May 2, 2023

As of February 2023, 75% of the Traffic Signal Timing Monitoring Purchase Order 00230146 with AGA Engineers Inc. has been expended. It is highly anticipated that the need for AGA’s services will increase for the remainder of the fiscal year.

In order to continue using AGA Engineers, Inc. for traffic signal timing maintenance services, an increase of $20,000 in the Purchase Order will be required.

Staff recommends that the City Council:

1. Approve a Budget Transfer from Traffic Improvement Fund - Streets (TI Streets 242.50.95001.55521) to Traffic Improvement Fund - Signals & Lights (TI Signals & Lights GL# 242.50.95001.55527) with Project String#: E-2422325101.20.200 for $20,000.

2. Authorize Staff to execute a change order to the Traffic Signal Timing Monitoring Purchase Order with AGA Engineers, Inc. to increase the Purchase Order by $20,000.

FISCAL REVIEW:

AGA Engineers, Inc. CON 21-57 (Munis CON 1006)
Total Contract for AGA Engineers, Inc. * $400,000.00
Annual Traffic Signal Timing Maintenance (01/01/22-6/30/22) ** Purchase Order 00220229 $35,000.00
Annual Traffic Signal Monitoring (7/01/22-6/30/23) ***
Purchase Order 00230146 $50,000.00
Preparation of Specs for Traffic Signal Plans at Euclid/Condor and Talbert/Bushard****
Purchase Order 00230217 $3,640.00
Proposal for Fountain Valley School Signage Assessment***** Purchase Order 00230259 $3,055.00
Change Order to FY22/23 Annual Traffic Signal Monitoring Purchase Order (7/1/22-6/30/23) $20,000.00
Total Contract Encumbrance $111,695.00
Remaining Contract Balance $288,305.00
*Approved by City Council on October 5, 2021
** No City Council Approval since Amount was Less than $50,000 ***Approved by City Council on June 21, 2022
****Approved by City Council on December 6, 2022
*****Approved by City Council on February 7, 2023

AGA Traffic Signal Timing Monitoring Change Order
May 2, 2023

Budget Transfer Matrix
(Project String#: E-2422325101.20.200)
AGA Traffic Signal Monitoring Change Order
TI - Streets Fund
242.50.95001.55521
TI –Signals & Lights
Fund
242.50.95001.55527
Traffic Improvement – Streets
(TI – Streets)
242.50.95001.55521
$249,874.15
Transfer from TI Streets Account
242.50.95001.55521
-$20,000.00
Available Fund in AGA Engineers, Inc.

GL Account 242.50.95001.55527
(Traffic Improvement – Signals & Lights)
$12,580.00
Transfer to TI Signals & Lights Account
242.50.95001.55527
+$20,000.00
Final Fund Balance $229,874.15 $32,580.00
Note: All fund balances as of April 18, 2023
This P.O. for Signal Timing Services and Maintenance is 100% funded by Measure M Funds and there are adequate funds in the Measure M Fund Balance.

PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the AGA Engineers, Inc. As-Needed On-Call Design Services CON 21-57 (Munis CON 1006).

ALTERNATIVES:

Alternative No. 1:

1. Approve a Budget Transfer from Traffic Improvement Fund - Streets (TI Streets 242.50.95001.55521) to Traffic Improvement Fund – Signals & Lights (TI Signals & Lights GL# 242.50.95001.55527) with Project String#: E-2422325101.20.200 for $20,000.

2. Authorize Staff to execute a change order to the Traffic Signal Timing Monitoring Purchase Order with AGA Engineers, Inc. to increase the Purchase Order by $20,000.

Alternative No. 2:

Do not approve a Budget Transfer from 242.50.95001.55521 to GL# 242.50.95001.55527 (Project String#: E-2422325101.20.200) and do not authorize Staff to execute a change order to the Traffic Signal Timing Monitoring Purchase

AGA Traffic Signal Timing Monitoring Change Order
May 2, 2023

Order with AGA Engineers, Inc. to increase the Purchase Order by $20,000. This is not recommended as there are many ongoing CIP projects and the need for AGA Engineers Inc.’s services will increase for the remainder of the fiscal year.

RECOMMENDATION:

Staff recommends the City Council approve the following:

1. Approve a Budget Transfer from Traffic Improvement Fund - Streets (TI Streets 242.50.95001.55521) to Traffic Improvement Fund – Signals & Lights (TI Signals & Lights GL# 242.50.95001.55527) with Project String#: E-2422325101.20.200 for $20,000.

2. Authorize Staff to execute a change order to the Traffic Signal Timing Monitoring Purchase Order with AGA Engineers, Inc. to increase the Purchase Order by $20,000.

Co-Prepared by: Terri Phan, Management Aide/Kyle Knoke, Assistant Engineer Recommended by: Kyle Hilton, Associate Engineer
Reviewed by: Temo Galvez, Deputy Public Works Director/City Engineer Approved by: Hye Jin Lee, Director of Public Works
Fiscal review by: Ryan Smith, Finance Director/City Treasurer Approved by: Maggie Le, City Manager

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 2, 2023
Members of the City Council
SUBJECT: Adopt a Resolution to Establish a Retiree Health Savings (“RHS”) Plan Agreement No. 800414 with Retirement Health Savings (RHS) Account for the City Manager
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☒ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

The City of Fountain Valley currently has a trust with MissionSquare Retirement (formally ICMA-RC) for a 401(A) plan established to allow the City Manager to make voluntary pre-tax salary contributions of two percent (2%) into their RHS account approved by Council in the March 7, 2023 City Manager’s employment contract amendment. The agreement shall be in effect for an initial term beginning May 1, 2023 for three (3) years with an automatic annual renewal each succeeding year unless written notice of termination is provided by either party to the other, no less than 60 days before the end of such Agreement year.

DISCUSSION:

The employer (“City”) acts as a public plan sponsor for a retiree health plan with responsibility to obtain investment alternatives and services for employees participating in the plan. The City desires to make the RHS plan provided by MissionSquare available to its employees through the Employer’s integral part trust and the employer’s welfare benefits plan. MissionSquare is the exclusive record keeper for the RHS plan to perform all non-discretionary functions necessary for the administration of the RHS plan with respect to assets in the RHS plan transferred to its administration.

Adopt a Resolution
May 2, 2023

The City currently has three RHS plans established. The Fountain Valley Police Officers’ Association and the Fire Fighters’ Association members hired after August 10, 2010 and Administrative Officers deferring voluntary pre-tax payroll contributions each pay period. The third account was established for grandfathered eligible retirees receiving monthly retiree health reimbursements.

FISCAL REVIEW:

There is no fiscal impact associated with this item.

Participant fees and expenses shall be payable from RHS employee account assets. A $25 annual account administration fee will be charged quarterly to each Accountholder’s account not to the City.

PUBLIC NOTIFICATION:

N/A
ATTORNEY REVIEW:

The Attorney for the City has reviewed all Exhibit(s) and Attachment(s).

ALTERNATIVES:

1. Adopt a Resolution to establish a Retiree Health Savings (“RHS”) Plan Agreement No. 800414 with MissionSquare Retirement for the City Manager.

2. Do Not Adopt a Resolution to establish a RHS Plan.

RECOMMENDATION:

Staff is recommending City Council approval of Alternative No. 1 to Adopt a Resolution Prepared and Approved by: Colin Burns, City Attorney
Fiscal Review: Ryan Smith, Finance Director

Adopt a Resolution
May 2, 2023

Exhibit(s): 1. Resolution RHS Program
Attachment(s): 1. Plan Adoption Agreement

2. Administrative Services Agreement

EXHIBIT 1
RESOLUTION NO. ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY FOR ADOPTION OF THE

MISSIONSQUARE RETIREMENT HEALTH SAVINGS
(RHS) PROGRAM
WHEREAS, the City of Fountain Valley (“Employer”) has employees rendering valuable services; and
WHEREAS, the establishment of a retiree health savings program for such employees serves the interest of the Employer by enabling it to provide reasonable security regarding such employees’ health needs during retirement, by providing increased flexibility in its personal management system, and by assisting in the attraction and retention of competent personnel; and
WHEREAS, Employer has determined that the establishment of the retiree health savings program (the “Program”) serves the above objectives; NOW THEREFORE BE IT RESOLVED, that Employer hereby adopts the MissionSquare Retirement Health Savings Program (“Program”) through the Employer’s integral part trust (“Trust”) and the Employer’s welfare benefits plan (“Plan”).

BE IT FURTHER RESOLVED that the assets of the Plan shall be held in trust, with the Finance Director serving as trustee for the exclusive benefit of Plan participants and their survivors, and the assets of the Plan shall not be diverted to any other purpose prior to the satisfaction of all liabilities of the Plan. Employer has executed the Declaration of Trust of the City of Fountain Valley Integral Part Trust in the form of the sample trust made available by MissionSquare Retirement.

BE IT FURTHER RESOLVED, that the Human Resources Director shall be the coordinator and contact for the Program and shall receive necessary reports, notices, etc.

PASSED, APPROVED, ADOPTED and RESOLVED.

I, Rick Miller, Clerk of the Council of City of Fountain Valley, do hereby certify that the foregoing resolution was duly passed and adopted by the City Council of the City of Fountain Valley at a regular meeting thereof assembled this 2nd day of May, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:
____________________________ _______________________________ Rick Miller Kim Constantine
City Clerk/Administrator Mayor
APPROVED AS TO FORM:

Colin Burns
Attorney for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 2, 2023
Members of the City Council
SUBJECT: Hoy Civil Engineering As Needed Professional Engineering Services.

1. Approve a Budget Transfer of $20,000 from the FY22/23 General Fund Engineering Budget to the General Fund Traffic Budget.

2. Approve Amendment No. 1 to the Hoy Civil Engineering CON-1267 for As Needed Professional Engineering Services for $50,000 and a time extension for six months.

3. Authorize Staff to execute a Change Order to the Hoy Civil Engineering Purchase Order to increase the Purchase Order by $50,000.

Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☒ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

Hoy Civil Engineering (HCE) Professional Engineering Service was acquired to support the heavy workload and staffing shortage in the Public Works Department.

On November 28, 2022, the City of Fountain Valley and HCE executed an agreement for as-needed professional engineering services for $45,000 under the City’s Administrative Policy that authorizes the City Manager to execute contracts up to $50,000 The Public Works Department is currently in need of continued support services from HCE and requests that City Council consider:

1. Approve a Budget Transfer of $20,000 from the FY22/23 General Fund Engineering Budget to General Fund Traffic Budget.

2. Approve Amendment No. 1 to the Hoy Civil Engineering CON-1267 for As Needed Professional Engineering Services for $50,000 and a time extension for six months.

Amendment No. 1 to CON-1267 Hoy Civil Engineering
May 2, 2023

3. Authorize Staff to execute a Change Order to the Hoy Civil Engineering Purchase Order to increase the Purchase Order by $50,000.

Current engineering staff vacancies will fund this contract.

DISCUSSION:

The extensive workload and shortage of personnel in the Public Works Department require temporary staffing from an experienced Professional Engineer with institutional knowledge with the City of Fountain Valley. There are currently two (2) vacancies with increased demands for project support, creating requests for proposals, investigating contractor qualifications, and management of improvement projects.

On November 28, 2022, the City of Fountain Valley and HCE executed an agreement CON-1267 for as-needed professional engineering services for $45,000, which was awarded under City Manager’s administrative authority.

HCE provides civil engineering services including engineering, program management, construction management, grant writing, and municipal consulting services. HCE has experience navigating projects through each phase of project delivery, from design to right-of-way acquisition, and through construction.

HCE provided a seasoned licensed professional engineer with over 25-years of municipal engineering including managing all phases of capital improvement program projects.

Additionally, the consultant has had previous assignments managing numerous Fountain Valley projects and serving multiple roles.

The HCE consultant has assisted the Public Works Department with the following projects and tasks:
 City Street Light RFP and contract
 Traffic Signal Maintenance RFP and contract
 Project management of the Heil Avenue (Euclid – Harbor) & Ward (Edinger to NCL) paving improvement project.
 Project management of the Residential Paving (D2) Improvement Project  Development Plan Check Review
 Traffic Software Research
 Associate Engineer Recruitment
 Community area Street Calming Traffic Evaluations
 Address and assess various resident complaints
 Various encroachment permits review
 Project Management Services
 Plan Check for Sports Park Road Network Rehabilitation design plans and specifications
 Traffic Control Review
 Project Estimating for the Newland Road Failure

Amendment No. 1 to CON-1267 Hoy Civil Engineering
May 2, 2023

The Public Works Department has two vacancies and currently requires continued services.

Staff requests that the City Council approve a Budget Transfer of $20,000 from the FY22/23 General Fund Engineering Budget to General Fund Traffic Budget and Amendment No. 1 to CON-1267 for $50,000 with HCE for as needed professional engineering services. The current engineering staff vacancies will fund this contract.

Staff recommends utilizing the same consultant to provide historical knowledge and continuum of excellent service and tasks that are near completion.

The as needed engineering duties include but are not limited to the following:
 Request for Proposals (RFP’s) for many service needs.  Municipal traffic engineering projects.
 V Development plan check review and comment preparation.  Project management of public works construction projects including:
o Residential Paving Improvements in the area of D1.
o Ellis Paving (Brookhurst to Bushard) & Warner Paving (Brookhurst to Bushard) o Arterial Paving Improvements.
o Traffic Signal Improvements.
 Review and assessment of daily Traffic Engineering Improvement Request from Residents.
 Review and assessment of daily engineering permits.
 Assisting with other engineering functions based on department needs and demands.  Assist with Engineering Standard Plans update.

The consultant engineer will assist with assigned projects and tasks three to four days a week or as needed, for approximately six months, from June 30, 2023 to December 31, 2023, or until Public Works achieves the successful recruitment and training of the vacant Engineering Technician III and the Associate Engineering position.

The HCE consultant is highly qualified and has shown engineering expertise by providing excellent technical support and completing the above tasks with excellence. The consultant’s experience in managing projects and initiatives within the City of Fountain Valley will ensure the successful completion of programs while satisfying compliance with all Federal, State, and Municipal standards and regulations.

Amendment No. 1 to CON-1267 Hoy Civil Engineering
May 2, 2023

FISCAL REVIEW:

Hoy Civil Engineering CON-1267
Total Contract for Hoy Civil Engineering * $45,000.00
As Needed Professional Engineering Services **
Purchase Order 00230194
$45,000.00
Amendment No. 1 to CON 1267 $50,000.00
Total Proposed Contract Encumbrance $95,000.00
*CON-1267 was executed November 28, 2022 under City Manager authority Note: The Engineering Technician III position will fund this contract. **Purchase Order issued on January 24, 2023
General Fund Engineering
100.50.50500.53003
General Fund Traffic
100.50.50501.53003
Hoy Engineering
Amendment #1 Budget
General Fund
Engineering *
100.50.50500.53003
$298,832.88
Reduce from General
Fund Engineering
100.50.50500.53003
-$30,000.00 +$30,000.00
Transfer from
General Fund
Engineering
100.50.50500.53003
-$20,000.00 +$20,000 $20,000.00
Transfer to General
Fund Traffic
100.50.50501.53003
Final Fund Balance $248,832.88 $20,000.00 $50,000.00
*Sufficient funds available in this account ($298,832.88 as of 4/19/23) Notes: Hoy Civil Engineering Proposed Amount: $50,000.00 Original Budget distributed 60% in GL #100.50.50500.53003 and 40% in GL #:100.50.50501.53003
FY 2022/23 Purchase Order Expenses To-Date for Hoy Civil Engineering As Needed Professional Engineering Services
Hoy Civil Engineering PO 00230194* $45,000.00
Hoy Civil Engineering PO 00230194*
GL #: 100.50.50500.53003 ($19,836.00)
Hoy Civil Engineering PO 00230194*
GL #: 100.50.50501.53003 ($13,224.00)
Total Amount Remaining in PO after (March 2023 Services) $11,940.00 *Purchase Order issued on January 24, 2022

Amendment No. 1 to CON-1267 Hoy Civil Engineering
May 2, 2023

FY 2022/23 Purchase Order Financials for Hoy Civil Engineering As Needed Professional Engineering Services
Hoy Civil Engineering PO 00230194* $45,000.00
Hoy Civil Engineering PO Change Order**
$50,000.00
Total PO 00230194 Amount $95,000.00
*Purchase Order issued on January 24, 2022
**Staff requesting City Council Approval on May 2, 2023 PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the As-Needed Professional Engineering Services CON-1267 for Hoy Civil Engineering on November 28, 2022. The Attorney for the City has also reviewed and approved the Amendment No. 1 to the Hoy Civil Engineering As-Needed Professional Engineering Services contract for $50,000.

ALTERNATIVES:

Alternative No. 1:

1. Approve a Budget Transfer of $20,000 from the FY22/23 General Fund Engineering Budget to the General Fund Traffic Budget.

2. Approve Amendment No. 1 to the Hoy Civil Engineering CON-1267 for As Needed Professional Engineering Services for $50,000 and a time extension for six months.

3. Authorize Staff to execute a Change Order to the Hoy Civil Engineering Purchase Order to increase the Purchase Order by $50,000.

Alternative No. 2:

1. Do not approve a Budget Transfer of $20,000 from the FY22/23 General Fund Engineering Budget to General Fund Traffic Budget.

2. Do not approve Amendment No. 1 to the Hoy Civil Engineering CON-1267 for As Needed Professional Engineering Services for $50,000 and a time extension for six months.

3. Do not authorize Staff to execute a Change Order to the Hoy Civil Engineering Purchase Order to increase the Purchase Order by $50,000.

This is not recommended as it will not allow for continuity of coverage for Public Works Department projects due to the short staffing and intense workload.

Amendment No. 1 to CON-1267 Hoy Civil Engineering
May 2, 2023

RECOMMENDATION:

Staff recommends that the City Council approve Alternative No. 1, which is to:

1. Approve a Budget Transfer of $20,000 from the FY22/23 General Fund Engineering Budget to General Fund Traffic Budget.

2. Approve Amendment No. 1 to the Hoy Civil Engineering CON-1267 for As Needed Professional Engineering Services for $50,000 and a time extension for six months.

3. Authorize Staff to execute a Change Order to the Hoy Civil Engineering Purchase Order to increase the Purchase Order by $50,000.

Co-Prepared by: Terri Phan, Management Aide/ Tony Nuñez, Assistant Engineer Recommended by: Kyle Hilton, Associate Engineer
Reviewed by: Temo Galvez, P.E., Deputy Public Works Director / City Engineer Approved by: Hye Jin Lee, P.E., Public Works Director
Fiscal review by: Ryan Smith, Finance Director/City Treasurer Approved by: Maggie Le, City Manager
Attachment 1: Hoy Civil Engineering CON-1267
Attachment 2: Amendment No. 1 to CON-1267

AMENDMENT NO. 1 TO CON 1267 FOR AS NEEDED PROFESSIONAL ENGINEERING

SERVICES
THIS FIRST AMENDMENT to CON 1267 is made and entered into this 2nd day of May, 2023, by and between the City of Fountain Valley (hereinafter “CITY”) a municipal corporation (hereinafter “CITY”), and Jonathan Hoy, sole proprietor, dba Hoy Civil Engineering (hereinafter “CONSULTANT”).

Recitals
WHEREAS, CITY and CONSULTANT previously entered into an Agreement for As Needed Professional Engineering Service CON 1267 dated November 28, 2022, (“AGREEMENT”); and
WHEREAS, the AGREEMENT was for an amount not-to-exceed $45,000.00 and expires June 30, 2023; and
WHEREAS, the parties do now desire to expand the scope of services called for under the AGREEMENT to provide for additional As Needed Professional Engineering Services in accordance with Exhibit A, attached hereto and incorporated by this reference, and to provide CONSULTANT with additional compensation of an amount not to exceed $50,000.00; and WHEREAS, while CITY has not expended the TOTAL CONTRACT SUM provided for in the AGREEMENT, the funds remaining are insufficient for the proposed Professional Engineering Services; and
WHEREAS, the parties desire to amend the AGREEMENT to increase the TOTAL CONTRACT SUM by $50,000.00 through December 31, 2023 and include the scope of word described in Exhibit A.

Now therefore, the parties do hereby agree that:

1. The compensation provided to CONSULTANT shall be increased by an amount not to exceed $50,000.00.

2. The scope of work in the AGREEMENT shall include that described in Exhibit A.

3. The scope of services and compensation provided to CONSULTANT shall not exceed a TOTAL CONTRACT SUM of $95,000.00.

4. That the AGREEMENT, as amended, shall remain in effect until December 31, 2023.

5. Except as specifically stated herein, all other terms and conditions of the AGREEMENT, as amended, shall remain in full force and effect. //
//
//
//
//
//
//

ATTEST: CITY OF FOUNTAIN VALLEY
______________________ ___________________________
Rick Miller, City Clerk Kim Constantine, Mayor
APPROVED AS TO FORM: CONSULTANT
__________________________ __________________________
Attorneys for the City Owner
APPROVED AS TO CONTENT:
__________________________
Hye Jin Lee, Public Works Director

EXHIBIT A

Hoy Civil Engineering, 78‐365 Highway 111, #435 La Quinta, CA 92253 Phone(760)238‐1540, [email protected]
April 19, 2023
Temo Galvez, P.E.

Deputy Director of Public Works/City Engineer

CITY OF FOUNTAIN VALLEY
10200 Slater Avenue
Fountain Valley, CA 92708-4736
Re: Proposal to Provide Professional Engineering Services Dear Mr. Galvez,
Hoy Civil Engineering (HCE) is pleased to present our proposal for providing professional engineering services to the City of Fountain Valley. It is our understanding that you are seeking the services of a professional engineer who can assist with a variety of public works projects, including construction management for street rehabilitation and traffic signal improvement projects.

HCE is a civil engineering company that provides engineering, program management, construction management, grant writing and municipal consulting services. HCE is experienced in navigating projects through each phase of project delivery, from design to right-of-way acquisition to construction. HCE brings extensive experience to the City of Fountain Valley, including long-established partnerships with federal, state, and regional jurisdictions.

For this proposal, HCE is assigning Amir Modarressi, P.E. Amir has over 25 years of professional experience managing all phases of capital improvement program (CIP) projects.

Additionally, Amir has local experience, including a previous assignment in which Amir assited with the management of numerous Fountain Valley CIP projects. Amir’s local expereince, comprehensive skill set and familiarity with Fountain Valley processes and procedures will help expedite project delivery.

Please find our scope and fee attached for your consideration. This opportunity to be of service to you is greatly appreciated.

If you have any questions, please contact me at 760-238-1540.

Jonathan Hoy, P.E.

Principal-HCE
Exhibit A - 1

Exhibit A
Scope of Work
As requested by the City of Fountain Valley. Hoy Civil Engineering (HCE) will be providing professional services for the Public Works/Engineering Department, which include an as-needed Project Management and Construction Management for various regional projects, including but not limited to street rehabilitation and traffic signal improvement projects. The following are some specific tasks, which HCE may be requested to provide for these projects:

Public Works Department
Project/Program/Construction Management
 Provide Program and Project Development Implementation  Provide Cost Control and Schedule Management
 Assist with Funding Administration (invoicing & Reimbursements)  Participation in Project Management Team (PMT) meetings  Provide Coordination with Government and Regulatory Agencies  Review RFPs/Assist with Contract Procurements
 Attend meetings with CT Local Assistance and Right of Way Divisions  Coordinate with CT Local Assistance to process required authorizations, such as, E-76, Finance Letter, Supplemental Agreement, etc.
 Provide Construction Management Oversight
 Provide Construction Contract Administration
 Assist with Public Financing Administration and Reimbursements  Assist with Documentation Preparation and Auditing
 Provide Construction Scheduling Oversight
Exhibit A - 2

Exhibit B
Hourly Rates
HCE’s fee to perform the work described in the Scope of Work above is represented by the hourly rate schedule shown below. HCE will adhere to the needs of the City of Fountain Valley to complete the requested tasks.

Personnel Classification Hourly Rate
Senior Project Engineer-Amir Modarressi $145.00
Proposed Weekly Schedule Total Contract Not to Exceed:
3-Days Per Week, As Needed $50,000.00
Exhibit A - 3

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 2, 2023
Members of the City Council
SUBJECT: Lease Amendments to Contracts 11-50 and 06-02 with the Boys and Girls Clubs of Huntington Valley

1. Approval of Amendment #5 to Contract 11-50 between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the Child Care Building (17565 Los Alamos)

2. Approval of Amendment #11 to Contract 06-02 between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the former Community Services Building (10200 Slater Avenue)

THREE-YEAR STRATEGIC GOAL
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable
EXECUTIVE SUMMARY:

The current lease agreement between the City of Fountain Valley and the Boys and Girls Clubs of Huntington Valley (Clubs) for the former Community Services buildings located at 10200 Slater Avenue and the Child Care Building at located 17565 Los Alamos expired on December 31, 2021. Due to the pandemic and subsequent requests for lease/fee waivers, both facilities have been operating under month to month lease agreements pursuant to the provisions of the applicable lease amendments.

Staff is recommending that the City Council approve Amendment #5 (Contract 11-50) and Amendment #11 (Contract 06-02) to the Lease Agreements, extending each lease for a period of 1 year commencing on July 1, 2023 and expiring on June 30, 2024. The lease amendments reflect the current monthly lease payments, and applicable increases, in accordance with the January 1st Consumer Price Index (CPI) with a 3% increase cap.

The amended lease provides the City and Clubs the right to terminate the lease without cause by giving the other party six months’ written notice of intention to terminate.

DISCUSSION:

The Boys and Girls Clubs have been current on their lease payments and have been responsible for maintenance, utilities, and insurance for each of their leased facilities directly adjacent to City Hall. The City has been responsible for the exterior landscaping and roof maintenance. Additionally, the Boys and Girls Club have shown to be tremendous partners with the community as they maintained and amended their services to support families throughout the pandemic.

The amendment includes extending the lease for a period of 1 year until June 30, 2024 and provides the City and Clubs the right to terminate the lease without cause by giving the other party six months’ written notice of intention to terminate.

FINANCIAL ANALYSIS
The lease amendment reflects the monthly payments, and applicable increases, in accordance with the January 1st Consumer Price Index (CPI) with a 3% increase cap.

The lease amount for both buildings for calendar year 2023 are reflected below and will be adjusted for CPI on January 1, 2024 for calendar year 2024.  In accordance with Amendment No. 5 to Contract 11-50 Lease with the Boys & Girls Club of Huntington Valley the monthly lease payment is $7091.17/month (Los Alamos / Child Care Building).
 In accordance with Amendment No. 11 to Contract 06-02, the monthly lease payment is $6,512.44/month (Community Services Building).

ATTORNEY REVIEW:

The City Attorney has reviewed and approved Amendment #5 to contract 11-50 and Amendment #11 to contract 06-02 to the Lease Agreements and approved it to form.

ALTERNATIVES:

Alternative No.1: Approve Amendment #5 to Contract 11-50 between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the Child Care Building located at 18565 Los Alamos St.

Approve Amendment #11 to Contract 06-02Agreement between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the former Community Services Building (100200 Slater Avenue)

Alternative No. 2: Do not approve Amendment #5 to Contract 11-50 between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the Child Care Building located at 18565 Los Alamos St.

Do not approve Amendment #11 to Contract 06-02Agreement between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the former Community Services Building (100200 Slater Avenue)
RECOMMENDATION:

Staff recommends approval of Amendment #5 to Contract 11-50 between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the Child Care Building located at 18565 Los Alamos St. and approval of Amendment #11 to Contract 06-02 between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the use of the former Community Services Building (10200 Slater Avenue).

Prepared By: Rob Frizzelle, Community Services Manager
Fiscal Review by: Ryan Smith, Finance Director
Approved By: Maggie Le, City Manager
Attachments:

1. Amendment No.5 to Lease Agreement 11-50

2. CON 11-50 Lease Agreement between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the Child Care Building

3. Amendment No. 11 to Lease Agreement 06-02

4. CON 06-02 Lease Agreement between the Boys and Girls Clubs of Huntington Valley and the City of Fountain Valley for the former Community Services Building

CONTRACT NO. 11-50
AMENDMENT NO. 5 TO

LEASE AGREEMENT

BETWEEN THE CITY OF FOUNTAIN VALLEY AND

THE BOYS AND GIRLS CLUBS OF HUNTINGTON VALLEY

FOR THE USE OF THE CHILD CARE FACILITY
LOCATED AT 17565 LOS ALAMOS STREET, FOUNTAIN VALLEY, CALIFORNIA THIS AMENDMENT NO. 5 is made and entered into this 2th day of May 2022 by and between the City of Fountain Valley (hereinafter “CITY”), a municipal corporation, and the Boys and Girls Clubs of Huntington Valley, (hereinafter “CLUBS”).

RECITALS
WHEREAS, CITY and CLUBS originally entered into a Lease Agreement for the former child care facility located at 17565 Los Alamos Street, Fountain Valley, California on September 1, 2011 attached hereto as Attachment “A” (“AGREEMENT”); and WHEREAS, CITY and CLUBS entered Amendment No. 1 on August 20, 2013, to extend the provisions of the AGREEMENT until December 31, 2014; and WHEREAS, CITY and CLUBS entered Amendment No. 2 on February 23, 2015, to extend the provisions the AGREEMENT until December 31, 2019; and WHEREAS, CITY and CLUBS entered Amendment No. 3 on December 19, 2019, to extend the provisions of the AGREEMENT until December 31, 2019; and WHEREAS, CITY and CLUBS entered Amendment No. 4 on April 6, 2021, to extend the provisions of the AGREEMENT until December 31, 2021; and WHEREAS, CITY and CLUBS are currently operating under a month to month lease agreement pursuant to the provisions of Amendment No. 4, and WHEREAS, CLUBS has requested a year extension to the AGREEMENT; and WHEREAS, CLUBS has proven itself as a responsible tenant; and WHEREAS, the parties do now desire to amend the AGREEMENT accordingly; NOW, THEREFORE, the parties hereto AGREE as follows:

1. The term provided in Section 1 of the AGREEMENT and modified by Amendments No. 1, 2, 3, and 4 is extended one (1) year, beginning on July 1, 2023 and terminating on June 30, 2024.

CONTRACT NO. 11-50

2. That the lease payment amount as provided in Section 2 of the AGREEMENT, shall increase annually by the CPI as of January 1 of each calendar year at an amount no greater than 3%. The web site currently used to determine CPI increases will be www.bls.gov/cpi/. In accordance with Contract 11-50 with the Boys & Girls Club of Huntington Valley, the monthly lease payment for the 2023 calendar year of this Amendment No. 5 shall be $7091.17/month (Los Alamos / Child Care Building).

3. In addition to the termination provisions set forth in Section 17, the parties agree to add a right to terminate without cause to be added as subsection (d):

“(c) CITY and CLUBS shall each have the right to terminate the lease without cause by giving the other party six months’ written notice of intention to terminate.”

4. The following CITY contact is changed in Section 18:

Rob Frizzelle, Community Services Director
City of Fountain Valley
10200 Slater Avenue
Fountain valley, CA 92708

5. Except as expressly modified herein, the terms and conditions of the AGREEMENT, as the same have been modified by amendments thereto, shall remain in effect.

In witness whereof, the parties hereto have entered into this Third Amendment the year first above written.

ATTEST: CITY OF FOUNTAIN VALLEY

____________________________ ______________________________ Deputy City Clerk Mayor
APPROVED AS TO FORM: BOYS AND GIRLS CLUBS OF
HARPER & BURNS LLP HUNTINGTON VALLEY:
______________________________ _______________________________ Attorneys for the City Chief Executive Officer

CONTRACT NO. 06-02
AMENDMENT NO. 11 TO

LEASE AGREEMENT

BETWEEN THE CITY OF FOUNTAIN VALLEY AND

THE BOYS AND GIRLS CLUBS OF HUNTINGTON VALLEY

FOR THE USE OF THE FORMER COMMUNITY SERVICES BUILDING
LOCATED AT 10200 SLATER, FOUNTAIN VALLEY, CALIFORNIA
THIS AMENDMENT NO. 11 is made and entered into this 2th day of May 2022 by and between the City of Fountain Valley (hereinafter “CITY”), a municipal corporation, and the Boys and Girls Clubs of Huntington Valley, (hereinafter “CLUBS”).

RECITALS
WHEREAS, CITY and CLUBS originally entered into a Lease Agreement for the former community services building located at 10200 Slater Avenue, Fountain Valley, California on January 1, 2006 attached hereto as Attachment “A” (“AGREEMENT”); and WHEREAS, CITY and CLUBS entered Amendment No. 1 on July 17, 2007, to extend the provisions of the AGREEMENT until December 31, 2008; and WHEREAS, CITY and CLUBS entered Amendment No. 2 on December 2, 2008, to extend the provisions of the AGREEMENT until December 31, 2009; and WHEREAS, CITY and CLUBS entered Amendment No. 3 on December 17, 2009, to extend the provisions of the AGREEMENT until December 31, 2010; and WHEREAS, CITY and CLUBS entered Amendment No. 4 on December 21, 2010, to extend the provisions the AGREEMENT until December 31, 2011; and WHEREAS, CITY and CLUBS entered Amendment No. 5 on December 20, 2011, 2011, extend the provisions of the AGREEMENT until December 31, 2012; and WHEREAS, CITY and CLUBS entered Amendment No. 6 on February 5, 2013, to extend the provisions of the AGREEMENT until December 31, 2013; and WHEREAS, CITY and CLUBS entered Amendment No. 7 on February 4, 2014, to extend the provisions of the AGREEMENT until December 31, 2014; and WHEREAS, CITY and CLUBS entered Amendment No. 8 on February 23, 2015, to extend the provisions of the AGREEMENT until December 31, 2019; and WHEREAS, CITY and CLUBS entered Amendment No. 9 on December 17, 2019, 2019, extend the provisions of the AGREEMENT until December 31, 2020; and WHEREAS, CITY and CLUBS entered Amendment No. 10 on April 6, 2021 2021, extend the provisions of the AGREEMENT until December 31, 2021; and WHEREAS, CITY and CLUBS are currently operating under a month to month lease agreement pursuant to the provisions of Amendment No. 10, and

CONTRACT NO. 06-02
WHEREAS, CLUBS has requested a year extension to the AGREEMENT; and WHEREAS, CLUBS has proven itself as a responsible tenant; and WHEREAS, the parties do now desire to amend the AGREEMENT accordingly; NOW, THEREFORE, the parties hereto AGREE as follows:

1. The term provided in Section 1 of the AGREEMENT and modified by Amendment No. 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 is extended one (1) year, beginning on July 1, 2023, and terminating on June 30, 2024.

2. That the lease payment amount as provided in Section 2 of the AGREEMENT, shall increase annually by the CPI as of January 1 of each calendar year at an amount no greater than 3%. The web site currently used to determine CPI increases will be www.bls.gov/cpi/. In accordance with Amendment No. 10 to Contract 06-02, the monthly lease payment for Amendment No. 11 for the calendar year of 2023 shall be $6,512.44/month (Slater Building).

3. In addition to the termination provisions set forth in Section 16, the parties agree to add a right to terminate without cause to be added as subsection (c):

“(c) CITY and CLUBS shall each have the right to terminate the lease without cause by giving the other party six months’ written notice of intention to terminate.”

4. The following CITY contact is changed in Section 17:

Rob Frizzelle, Community Services Director
City of Fountain Valley
10200 Slater Avenue
Fountain valley, CA 92708

5. Except as expressly modified herein, the terms and conditions of the AGREEMENT, as the same have been modified by amendments thereto, shall remain in effect.
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CONTRACT NO. 06-02
In witness whereof, the parties hereto have entered into this Ninth Amendment the year first above written.

ATTEST: CITY OF FOUNTAIN VALLEY

____________________________ ______________________________ Deputy City Clerk Mayor
APPROVED AS TO FORM: BOYS AND GIRLS CLUBS OF
HARPER & BURNS LLP HUNTINGTON VALLEY:
______________________________ _______________________________ Attorneys for the City Chief Executive Officer

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 2, 2023
Members of the City Council
SUBJECT: Public Hearing - Approval of the FY 23-24 Community Development Block Grant (CDBG) Annual Action Plan
Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

The U.S. Department of Housing and Urban Development Department (HUD) Community Development Block Grant (CDBG) Consolidated Plan process requires that entitlement communities, such as the City of Fountain Valley (City), prepare a document that describes the projects and activities proposed for each year of their five-year Consolidated Plan. This document is known as the Annual Action Plan (Action Plan). The period covered by this Action Plan is July 1, 2023 through June 30, 2024 (FY 23-24).

On February 27, 2023, HUD released the annual CDBG funding allocation for FY 23-24. The City will receive an allocation of $347,498 to fund CDBG approved activities that benefit low- and moderate-income households in the community. The FY 23-24 allocation is approximately eight and a half percent (8.5%) higher than FY 22-23 which provides an additional $27,612 to fund activities for lower income households in the next fiscal year.

The FY 23-34 allocation will be combined with $152,502 in carryover funds from previous years and approximately $32,258 in remaining CARES Act CDBG funds for a total budget of $532,258.

In order to comply with HUD regulations governing the CDBG program, the City must conduct a public hearing to allow the public to provide comments on the Action Plan prior to submittal.

Public Hearing – Approval of the FY 23-24 Community Development Block Grant Annual Action Plan
May 2, 2023

DISCUSSION:

The FY 23-24 Action Plan describes programs, projects and activities that are proposed to be accomplished during the program year. The activities reflect the objectives and priorities outlined in the City’s Five-Year (FY 2020-24) Consolidated Plan. The Action Plan contains the FY 23-24 CDBG program budget that will be incorporated within the City of Fountain Valley FY 23-24 Budget.

The primary focus of the CDBG program is to provide public services to low and moderate-income residents, and to preserve and improve existing neighborhoods. CDBG funds are allocated to community development and neighborhood improvement activities that are designed to principally benefit low-income persons and households. HUD requires that 70% of all CDBG funding be utilized to assist low-income persons or households; however, the City of Fountain Valley strives for 100% of program funding to go towards programs that assist low-income persons and/or households.

In response to the COVID pandemic, the City received $616,554 in CARES Act funding (CDBG-CV) to support activities that prevent, prepare for and respond to COVID-19. There is approximately $32,258 remaining in the CDBG-CV allocation to fund COVID-19 related programs and services.

The CDBG Program Budget for FY 23-24 will be comprised of the following sources of funds:

FY 23-24 CDBG Allocation: $347,498
Program Income & Unobligated Carryover: $152,502
CDBG-CV (CARES Act) funds $ 32,285
TOTAL FUNDING PROPOSED: $532,285
In establishing the FY 23-24 CDBG program budget, Housing and Community Development (HCD) staff reviewed the Housing and Community Development Advisory Board’s (HCDAB) recommendations regarding Public Service Agency’s (PSA) funding, and additionally utilized the following guidelines:

1. Fund programs that address goals and objectives set forth in the City of Fountain Valley’s Five-Year Consolidated Plan.

2. Allocate funding first to programs such as Administration and Public Services that have maximum funding limits, and fund federally mandated programs such as the provision of Fair Housing Services.

CDBG regulations dictate limits on certain expenditures such as administration (capped at 20% of allocation) and public services (capped at 15% of allocation) and the proposed FY 23-24 CDBG budget complies with these regulations.

Below is a brief description of the programs and budgets that are proposed for FY 23-24 utilizing the $532,285 in available entitlement grant allocation, carryover funds, and CDBG-CV funds.

Public Hearing – Approval of the FY 23-24 Community Development Block Grant Annual Action Plan
May 2, 2023

 Administration – Budget $64,499
Funds pay for salaries and other costs related to administering the CDBG program including preparing the Action Plan, CAPER, IDIS management and other HUD required documents. Administration is capped at 20% of the total allocation and includes the cost of providing fair housing services.
 Fair Housing – Budget $5,000
HUD requires cities to provide fair housing services to low and moderate-income residents. Services include landlord/tenant dispute resolution and housing discrimination education. Funding is part of the 20% committed to Administration.  Public Service Agency Program – Total Budget $84,409
The public service agencies help provide the continuum of care that is a required goal of the CDBG program. Assistance for underserved populations are the main goals of this program. Funding for Public Service Agency Programs is capped at 15% of allocation ($52,124). The total budget includes a portion of the remaining CARES Act funding ($32,285) which may be used for Public Services above the 15% allocation cap.  Code Enforcement Program – Budget $84,000
Code Enforcement provides inspection and abatement procedures for municipal code and building code violations on deteriorated properties within the HUD designated low/mod census tracts within the City.
 Neighborhood Revitalization Program – Budget $286,877 Provides grants, rebates and loans to low-income single family and mobile home homeowners for needed home repairs. Includes administration of the program as well as administration of the existing loan portfolio.
 Lead Based Paint Grant Program - Budget $7,500
Provides grants for HUD required lead based hazard testing for homeowners participating in the Neighborhood Revitalization program and abatement as needed.

The Public Service Agency Grant Program is an important part of the services that assist low-income households in the city. Fair Housing Service providers also play an integral role in assisting low-income households, and HUD mandates the city provide this service to receive grant funding.

Four Public Service Agencies (PSA) and one Fair Housing Service Provider applied to receive funding to provide services and programs to assist low and moderate-income households in the community for FY 23-24. The applicants were invited to provide a presentation of their services at the December 7, 2022 HCDAB meeting. All applicants were in attendance, and the HCDAB heard presentations from each applicant regarding the services they provide in the community.

All of the applicants have been successful and effective participants in the City’s Public Services Agency Grant program and Fair Housing program for several years.

Public Hearing – Approval of the FY 23-24 Community Development Block Grant Annual Action Plan
May 2, 2023

Lighthouse Outreach applied to continue providing services for the fourth year of the Senior Social Services Program in Response to COVID, which is based at the Senior Center. This program is solely funded with CDBG-CV funds designated for COVID response and does not fall under the 15% maximum cap for public service activities. Once FY 22-23 ends and the program submits its final invoice, the total remaining CDBG-CV funds will be allocated to the fourth year of this valuable program. The remainder is projected to be between $30,285 and $32,285.

The HCDAB reviewed each agencies funding request prior to making recommendations at their December meeting. Their initial funding recommendations were made using the prior year’s allocation as an estimate, pending the announcement of the FY 23-24 allocation. The HCDAB directed staff to adjust the final amount for each agency by the percentage difference, either higher or lower, with no agency receiving more than they requested, after the FY 23-24 allocation was announced.

The following table shows the funding recommendation process from request to final funding.

Non-Profit Organization
 FY 23-24 Number anticipated assisting
Requested
Funding
Initial
recommendation
based on FY 22-
23 allocation
FINAL
FY 23-24
recommendation
Boys and Girls Club of Huntington Valley
 50 Child Care Scholarships $10,000 $8,296 $9,676
Meals on Wheels OC Home Delivered
(Formerly CSS)
 30 Home Delivered Meals for Frail Elderly
$10,000 $6,117 $7,498
Meals on Wheels OC Congregate
(Formerly CSS)
 125 Congregate Meals at the Senior
Center
$14,000 $10,570 $11,950
Interval House Crisis Shelter
 55 Shelter Domestic Violence Victims $15,000 $14,998 $15,000 Waymakers
 45 Juvenile Diversion Assistance $8,000 $7,998 $8,000 SUB-TOTAL (CDBG- 15% CAP) $57,000 $47,979 $52,124
Lighthouse Ministry- CDBG-CV
 50 Senior Social Services in response to
COVID funded by CDBG-CV
$44,000 $32,285 $32,285
TOTAL $101,000 $80,264 $84,409
On April 5, 2023, the HCDAB held a Public Hearing to review the draft FY 23-24 Action Plan.

The HCDAB unanimously approved the FY 23-24 Action Plan, and forwarded a recommendation of approval to City Council.

Public Hearing – Approval of the FY 23-24 Community Development Block Grant Annual Action Plan
May 2, 2023

FISCAL REVIEW:

There is no fiscal impact to the General Fund related to this item. The City’s CDBG program is wholly funded by the allocation received from HUD. By approving the budget as defined in the Action Plan, the City Council authorizes the use of funds provided under the CDBG program in the amount of $532,285.

PUBLIC NOTIFICATION:

HUD regulations require that local jurisdictions conduct a public hearing and allow for a 30-day public comment period prior to the submission of the Action Plan to provide an opportunity for public review and comment.

On February 17, 2022, a public notice was published in the Fountain Valley View announcing that the FY 23-24 Action Plan was available for public comment on the City website and available via email by request from March 1, 2023 until March 31, 2023. The notice advised of a public hearing before the Housing and Community Development Advisory Board on March 1, 2023, and a second public hearing before the City Council on May 2, 2023, to receive public comments. Due to a lack of quorum for the March HCDAB meeting, the Public Hearing was continued to April 5, 2023. To date, no public comments have been received.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

This does not require the Attorney for the City review or approval.

ALTERNATIVES:

Alternative No. 1: Conduct a public hearing for the FY 23-24 Action Plan, approve the FY 23- 24 Action Plan, and authorize the City Manager to execute all documents necessary to submit the final FY 23-24 Action Plan to HUD prior to the May 16, 2023 deadline.

Alternative No. 2: Conduct public hearing for the FY 23-24 Action Plan, amend the FY 23-24 Action Plan, and authorize the City Manager to execute all documents necessary to submit the final FY 23-24 Action Plan to HUD prior to the May 16, 2023 deadline.

Public Hearing – Approval of the FY 23-24 Community Development Block Grant Annual Action Plan
May 2, 2023

RECOMMENDATION:

Staff is requesting City Council approval of Alternative No. 1: Conduct a public hearing for the FY 23-24 Action Plan, approve the FY 23-24 Action Plan, and authorize the City Manager to execute all documents necessary to submit the final FY 23-24 Action Plan to HUD prior to the May 16, 2023 deadline.

Prepared by: Ashlyn Newman, Housing Coordinator
Reviewed by: Omar Dadabhoy, Deputy City Manager/Community Development Director
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments: 1. FY 23-24 Community Development Block Grant Annual Action Plan

City of Fountain Valley
Fiscal Year 2023-2024
Annual Action Plan
Housing and Community Development Division
10200 Slater Avenue
Fountain Valley, CA 92708

FY 23-24 ACTION PLAN 2

CITY COUNCIL
Kim Constantine, Mayor
Glenn Grandis, Mayor Pro Tempore Ted Bui, Council Member Patrick Harper, Council Member Michael Vo, Council Member Maggie Le, City Manager

HOUSING AND COMMUNITY DEVELOPMENT ADVISORY BOARD
Mike White, Chair
Cindy Cao, Vice Chair Prem Balani, Board Member
Ramon Pasos, Board Member Bryan Noble, Board Member

HOUSING & COMMUNITY DEVELOPMENT DIVISION
Omar Dadabhoy, Community Development Director
Ashlyn Newman, Housing Coordinator
Nikesha Hazel, Housing Technician

FY 23-24 ACTION PLAN 3
Table of Contents
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ........................................................................ 4 CR-05 Lead & Responsible Agencies – 91.200(b)....................................................................................11 AP-10 Consultation – 91.100, 91.200(b), 91.215(l).................................................................................12 AP-12 Participation – 91.105, 91.200(c) ................................................................................................. 23 AP-15 Expected Resources – 91.220(c)(1,2) ...........................................................................................29 Projects ...................................................................................................................................................37 AP-35 Projects – 91.220(d) .....................................................................................................................37 AP-38 Project Summary ..........................................................................................................................38 AP-50 Geographic Distribution – 91.22AP-50 Geographic Distribution – 91.22 ....................................44 Affordable Housing .............................................................................................. 47 AP-55 Affordable Housing – 91.220(g) ...................................................................................................47 AP-60 Public Housing – 91.220(h)...........................................................................................................49 AP-65 Homeless and Other Special Needs Activities – 91.220(i)............................................................50 AP-75 Barriers to affordable housing – 91.220(j) ...................................................................................53 AP-85 Other Actions – 91.220(k) ............................................................................................................55 Program Specific Requirements........................................................................... 58 Attachments…… 58
Citizen Participation Summary ………………………………………………………………………………………………………… 59 Map of CDBG Code Enforcement Eligible Low Income Areas……………………………………………………………. 61 Proof of Public Notice ……………………………………………………………………………………………………………………... 62

FY 23-24 ACTION PLAN 4
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Fountain Valley is a recipient of federal Community Development Block Grant funding and is a designated Entitlement City. As required under U.S. Department of Housing and Urban Development (HUD) regulations, the City of Fountain Valley has prepared its FY 2023-24 Annual Action Plan for Community Planning and Development Programs (FY 2023-24 Action Plan). This is the fourth year of the 2020-24 Consolidated Plan. An approved FY 2023-24 Action Plan is a prerequisite for funding under HUD's Community Development Block Grant (CDBG). The period covered by this action plan is July 1, 2023, through June 30, 2024.

The FY 2023-24 Action Plan describes the projects and activities that the City of Fountain Valley is proposing to undertake utilizing funds made available by HUD under the CDBG program. The plan also describes community development projects and activities that will be implemented utilizing non-federal sources. The City of Fountain Valley will utilize a variety of funding sources to accomplish the projects and activities outlined in the Consolidated Plan. These funds include Federal, State, and private sources.

The annual FY 2023-24 Action Plan has been prepared utilizing HUD’s eConPlan suite, a module of the Integrated Disbursement and Information System (IDIS). This ensures that the FY 2023-24 Action Plan includes all HUD required components and report formatting.

On February 27, 2023, HUD announced the CDBG allocations for the upcoming fiscal year. The City of Fountain Valley will receive $347,498 in CDBG grant funding for FY 2023-24. This is an increase of $27,612 from last year. The FY 2023-24 allocation will be combined with $152,502 in unobligated Carry Forward from prior year grants, and $32,285 in CDBG-CV funds, for a total budget of $532,285 for CDBG funded programs and activities.

HUD caps the amount of funding that may be expended on administration costs to twenty percent (20%) of the total entitlement which must include the cost to provide HUD required fair housing services. For FY 2023-24, $64,499 is budgeted for program administration and $5,000 is budgeted for fair housing services. CDBG regulations allow a maximum of fifteen percent (15%) of the entitlement for Public Service Agency (PSA) grants. The City will allocate the maximum allowed, $52,124, to the PSA grant program. The balance of the entitlement is budgeted for the provision of low-moderate income housing related programs for home preservation, which

FY 23-24 ACTION PLAN 5
include $286,877 for home rehabilitation, $7,500 for lead based paint testing, and $84,000 for code enforcement activities.

Other Federal funding sources, although not directly funded by the City, includes Housing Choice Vouchers (formerly Section 8) that is administered by the Orange County Housing Authority.

National COVID-19 Emergency Response and Funding
In response to the national COVID-19 Pandemic, the City received $616,554 in CARES Act funding to be used for CDBG activities that prevent, prepare for, or respond to coronavirus.

Approximately $32,285 of the CARES Act funding remains and all of it will be used to fund the fourth year of the Senior Services program in Response to COVID.

2. Summarize the objectives and outcomes identified in the Plan HUD’s CDBG grant program has pre-determined objectives and outcomes and each CDBG funded activity must be designed to meet these requirements. To that end, the City's Housing and Community Development (HCD) Division has proposed the following programs, projects and activities for implementation during FY 2023-2024, each of which has been designed to meet HUD requirements.

Objectives:
• #1 – Decent Housing - Improve and preserve existing residential neighborhoods by implementing home improvement, code enforcement, and public facility and infrastructure improvement programs.
• #2 – Suitable Living Environment-Address the needs of persons with special needs through the provision of financial assistance to public service agencies, and the removal of architectural barriers to the physically challenged. Administration of grant and the provision of fair housing services to the community.
• #3 – Economic Opportunity- Provide affordable housing opportunities for renter households through an on-going partnership with the Orange County Housing Authority.

The listed goals and objectives below will be implemented during the five-year period:

High Priority Need
 Administration of Grant: 5 - year program

FY 23-24 ACTION PLAN 6
 Owner Occupied Home Improvement: Rehab 75 units
 Housing and Supportive Services: Assist 2,285 persons  Code Enforcement in eligible areas: 1250 households
 Fair Housing Services: 300 persons
 Lead Based Paint Hazard Grant: 75 homes
 Fair Housing 5 –Year Report: 1 report covering city population of approximately 57,000 Low Priority Need
 Affordable Housing: 1 unit
 Residential Rehab for Rentals: 1 unit
 Affordable Rental Development: 1unit
 Capital Improvement Projects: 1 unit
 Natural Disaster Funds: 1 other

Outcomes are discussed in the next section, Evaluation of Past Performance.

3. Evaluation of past performance
Year-end totals are not available for FY 22-23 therefore FY 21-22 will be the primary source used to evaluate past performance.

Priority #1: Improve and preserve existing residential neighborhoods by implementing home improvement, code enforcement, and public facility and infrastructure improvement programs.

During FY 21-22, the City’s Home Improvement Program funded 23 applications for grants, rebates or loans to assist low- income homeowners rehabilitate their properties and eight grants for lead based paint testing and abatement, 8 more than the projected goal. CDBG funding was also used for code enforcement services in CDBG eligible areas to identify and abate 227 residential properties with code violations. Funding was not allocated for public facility or infrastructure programs during this program period as they were not identified as a high priority need.

For FY 22-23, the City is on target to meet or exceed the projected annual goals.

FY 23-24 ACTION PLAN 7
Priority #2: Address the needs of persons with special needs through the provision of financial assistance to public service agencies, and the removal of architectural barriers to the physically challenged. Administration of grant and the provision of fair housing services to the community.

Fountain Valley addressed this priority by providing grant funding to five (5) non-profit public service agencies providing six (6) programs under the City’s Public Service Agency (PSA) Grant Program. In allocating funding under this program, the City followed HUD’s Continuum of Care philosophy by ensuring that resources were made available to assist as many special needs populations as possible. In FY 21-22, 610 persons/households were assisted through six (6) PSA programs funded under the City’s PSA Grant Program. This total was higher for the senior based services whom have continued to have a significant increase in clients as a result of COVID-19.

Elwyn California received PSA grant funding for a program that provided case management to developmentally disabled adults in the community for FY 22-23. After many successful years as a program participant, they were forced to terminate their program at the end of December 2022, because it was no longer financially feasible to provide services in the area. The grant funds that became available due to their withdrawal were redistributed to the Meals on Wheels Congregate Program who had doubled their projected numbers at mid fiscal year.

CARES Act funding was used to fund the third year of the Senior Social Services Program in Response to COVID to assist Fountain Valley seniors prevent, prepare for and respond to the pandemic. Due to significant interest in the program, it is on track to easily surpass their anticipated goals of number of clients assisted for the year.

The administration of the City’s housing and community development programs that benefited low and moderate-income persons included the following task/accomplishments:
• Preparation and submission of all funding applications including the Annual Action Plans, Consolidated Annual Performance and Evaluation Report (CAPER); and all reports required by HUD and other governmental agencies;
• Administration of CDBG funded projects including on site monitoring of home rehabilitation projects and annual audits of the public service agencies receiving CDBG funds;
• Preparation of all environmental review records (ERR’s) and other administrative reports required by federal, state and local funding agencies;

FY 23-24 ACTION PLAN 8
• Implementation and oversight of the City’s Home Improvement Program, Public Service Agency (PSA) Grant Programs, and Code Enforcement Program; • Contracted for fair housing services with Orange County Fair Housing Council.

For FY 22-23 the PSA’s are on target to meet or exceed the projected annual goals.

Priority #3 Provide affordable housing opportunities for renter households through an on-going partnership with the Orange County Housing Authority.

During FY 21-22, the City of Fountain Valley continued to provide renter households with access to affordable housing opportunities through its ongoing partnership with the Orange County Housing Authority (OCHA). Under this partnership, extremely low- and very low-income households can receive Section 8 Rental Assistance Vouchers provided by the U.S. Department of Housing and Urban Development (HUD). 433 households in Fountain Valley received Housing Choice Vouchers (Section 8) during FY 21-22.

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

In order to encourage citizen participation in the development of the City's FY 2023-24 Action Plan, a number of actions were taken to receive the greatest amount of participation:
• On September 7, 2022, a public meeting of the Housing and Community Development Advisory Board (HCDAB) was held to review the Annual Action Plan process and timeline. • On September 29, 2022, Housing and Community Development (HCD) staff published a Public Notice in the Fountain Valley View announcing the availability of funding under the City of Fountain Valley’s FY 2023-24 Public Service Agency (PSA) Grant program. Correspondence further detailing the availability of funding was sent to all prior-year program applicants and posted on the City’s website. • On November 2, 2022, the application period to submit applications for PSA Grant funding closed. Five (5) program applications were received from four (4) nonprofit organizations that provide services for low-income Fountain Valley residents. • On December 7, 2022, a public meeting of the HCDAB was held to receive presentations by the four (4) agencies applying for PSA grants and one (1) fair housing services provider applying for funding to provide fair housing services to city residents. The PSA’s provided input regarding the services they felt were needed in the community.

FY 23-24 ACTION PLAN 9
• At the February 1, 2023 HCDAB meeting, the board considered applications and made funding recommendations for the PSA grant and fair housing services provider.

Recommendations will be forwarded within the Action Plan to the City Council for review and approval.
• On February 9, 2023, a Public Notice was published in the Fountain Valley View announcing the commencement of the minimum 30-day review comment period beginning March 1, 2022 and concluding March 31, 2022. It advised the Action Plan was available on the website and can also be requested via email, or phone. The Public Notice advised of a public hearing at the March 1, 2023 HCDAB meeting to receive public comments on the FY 2023-24 Draft Action Plan, and a second Public Hearing at the Fountain Valley City Council on May 2, 2023, to receive comments, review and approve the FY 2023-24 Action Plan.
• The March 1, 2023, HCDAB meeting was canceled due to lack of quorum and the items scheduled for the meeting were continued until the April 5, 2023 meeting. • On April 5, 2023, HCDAB held a public hearing to review the draft FY 2023-24 Action Plan and forwarded a recommendation of approval to the City Council. No public comments were received.
• On May 2, 2023, the City Council held a public hearing to review the FY 2023-2024 Action Plan that includes the CDBG budget. The Fountain Valley City Council unanimously approved the Action Plan and requested the City Manager to execute all necessary documents to forward the plan to HUD. No public comments were received. (TBD)

5. Summary of public comments
No comments received. (TBD)

6. Summary of comments or views not accepted and the reasons for not accepting them The City of Fountain Valley did not exclude any comments or views. (TBD)

7. Summary
The Action Plan covers the period from July 1, 2023 to June 30, 2024 and identifies how the city will allocate its Fiscal Year 2023-24 CDBG grant funding. As stated above, the City of Fountain Valley continues to foster and maintain affordable housing and services to the underserved by successfully implementing housing and community development programs including its home improvement, code enforcement, fair housing, and public

FY 23-24 ACTION PLAN 10
facility and infrastructure improvement programs. The grantee chose its goals or projects for the coming year based on the success of each program’s past performance and needs of the community.

The City will continue to use CARES Act funding for the Senior Social Services Program in Response to COVID to assist in the response to COVID and COVID-related issues.

FY 23-24 ACTION PLAN 11
CR-05 Lead & Responsible Agencies – 91.200(b)

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

Agency Role Name Department/Agency
CDBG Administrator FOUNTAIN VALLEY Community Development Department Table 1 – Responsible Agencies
Narrative (optional)
The City of Fountain Valley is an Entitlement City. The City of Fountain Valley Community Development Department is the lead agency for developing and implementing the strategic plan for the CDBG Program. The Housing and Community Development Division within the Planning and Building Department administers the CDBG Program.

Consolidated Plan Public Contact Information
Ashlyn Newman
Housing Coordinator
[email protected]
(714) 593-4428
Fountain Valley City Hall
10200 Slater Avenue
Fountain Valley, CA 92708

FY 23-24 ACTION PLAN 12
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The City contacts and consults with public agencies, private agencies and city residents to get a better understanding of community needs for the plan year during the development of the FY 2023-24 Action Plan. For the Action Plan, the city consulted with the entities that are identified in the following sections.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City of Fountain Valley does not have any public housing within its jurisdiction. The city partners with the OCHA who administers the rental assistance program in the city and issues Rental Assistance Vouchers, Housing Choice Vouchers (Section 8) and other forms of housing assistance to city residents. The city is a member of the OCHA Cities Advisory Committee, which provides OCHA staff with input regarding program policies. The city continues to work closely with other Orange County HUD-grantee communities to develop regional plans and to share program management data.

Additionally, many of our PSA grantees provide physical and mental health evaluation within their scope of services and provide assistance for residents when needed, either from their organization or by referring them to an appropriate agency for support.

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

The City of Fountain Valley is a member of CA-602 Santa Ana, Anaheim, Orange County Continuum of Care (CoC). The County of Orange is the lead agency in Orange County’s CoC and the Orange County Office of Care Coordination administers and organizes the implementation of the program. Together with cities, non-profits, community organizations and businesses, Orange County’s CoC has built a system of care to connect those experiencing homelessness to available resources and assistance. The County’s regional planning process has been devised to ensure a single well-coordinated system of care to end homelessness. This is accomplished by balancing

FY 23-24 ACTION PLAN 13
emergency, transitional, and permanent housing plus supportive services to address the needs of homeless persons so they can transition from streets and shelters to independent living.

Orange County is divided into three Service Planning Areas (SPAs) that efficiently direct resources as individuals experiencing homelessness enter the Coordinated Entry System (CES). The City of Fountain Valley is in the Central SPA and staff attends quarterly meetings with all members to share information and give input into the development of plans across the region.

The goal of the Coordinated Entry System is to effectively connect individuals and families experiencing homelessness or at-risk of homelessness to appropriate services and housing interventions to end homelessness in Orange County through:
• dynamic prioritization
• collaborative coordination
• intentional resource utilization
• equitable resource distribution
• regional service planning area prioritization
The CES has a road map in place to ensure that individuals or families seeking housing and/or supportive services can easily access all available opportunities. The path includes:
• Access - Includes multiple service providers, a virtual front door and a “no wrong door” approach
• Assessment – Includes a standardized assessment process including initial screening, diversion and CES assessment
• Prioritization – A consistent and transparent process for matching individuals and families to the most appropriate services and housing resources available • Referral – Includes a warm hand-off between access point providers and housing or supportive service providers
While the County’s CoC and other supportive services are designed to move the homeless out of crisis and into self-sufficiency, the needs drastically exceed the funding available. To assist with this endeavor, the City of Fountain Valley grants 100% of the CDBG funds that are permitted to be allocated to public service agencies, to local PSA programs that assist the underserved. Many of these grantees offer supportive services that fill the gaps in the CoC system for the homeless and persons at- risk of becoming homeless.

FY 23-24 ACTION PLAN 14
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Fountain Valley is not a recipient of ESG funds nor do we administer HMIS. The Orange County CoC makes the determination of ESG fund allocations and the development, operation and/or administration of the fund and HMIS entries. The City attends and contributes to the COC’s Central Service Planning Area meetings regarding these items.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
See Table 2 and Table 3 on the following pages.

FY 23-24 ACTION PLAN 15
Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization INTERVAL HOUSE
Agency/Group/Organization Type Services - Housing
Services-Children
Services-Victims of Domestic Violence
Services-homeless
Services-Health
Services-Education
Services-Employment
Services - Victims
Child Welfare Agency
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Families with children
Homelessness Strategy
Non-Homeless Special Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Interval House is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. They provide input into the needs and numbers of women and children that are victims of domestic violence in the City. Interval House provides quarterly updates of the number of people served.

FY 23-24 ACTION PLAN 16
2 Agency/Group/Organization Waymakers (Formerly Community Services Program) Agency/Group/Organization Type Services-Children
Services-Education
Services - Victims
Child Welfare Agency
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Special Needs Facility and Service
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Community Services Program, now known as Waymakers, Inc. is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. The agency provides statistics on youth diversion needs and programs available to residents as well as potential programs that can be implemented in the future to address local needs.
3 Agency/Group/Organization Boys and Girls Club of Huntington Valley Agency/Group/Organization Type Services-Children
Services-Education
Child Welfare Agency
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Special Needs Facility and Services

FY 23-24 ACTION PLAN 17
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Boys and Girls Club of Huntington Valley is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. The agency provides quarterly updates on the financial needs of low- income children in the city and the amount of assistance they provide to city residents.
4 Agency/Group/Organization Community SeniorServ/ Meals on Wheels Agency/Group/Organization Type Services-Elderly Persons Services-Health
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
Anti-poverty Strategy
Special Needs Facility and Service
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Community SeniorServ aka Meals on Wheels is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. Agency helps identify and support the needs of the City's special needs-elderly population specifically elderly and the frail. Agency submits quarterly statistics for city review. 5 Agency/Group/Organization Fair Housing Council of Orange County Agency/Group/Organization Type Services - Housing
Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Impediments to Fair Housing

FY 23-24 ACTION PLAN 18
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Fair Housing Council of Orange County is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. They provide quarterly input on housing issues in the City as well as providing annual workshops for landlords and tenants and sharing anecdotal as well as statistical data with the city. 6 Agency/Group/Organization Orange County Housing Authority Agency/Group/Organization Type PHA
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Provides data regarding HUD rental assistance and vouchers.

Disseminates information regarding waiting lists for assistance countywide.
7 Agency/Group/Organization 211 ORANGE COUNTY
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Anti-poverty Strategy

FY 23-24 ACTION PLAN 19
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Provides data regarding regional homelessness, housing and service gaps for homelessness and the availability of countywide programs.

Provides Point in Time information regarding homelessness specific to the City of Fountain Valley.
9 Agency/Group/Organization SPECTRUM INTERNET PROVIDER
Agency/Group/Organization Type Services-Broadband Internet Services Provider Services- Narrowing the Digital Divide
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Other- Broadband Specific
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Spectrum provides broadband internet services throughout Fountain Valley which are easily accessible to all residents. They also provide high speed internet at a special, discounted rate to low income households to "Narrow the Digital Divide" in their service areas. They participate in the FCC Emergency Broadband Program thru the federal government to provide additional discounts to qualified households.

Spectrum will continue to provide internet services to the community and special rates to qualified households.
10 Agency/Group/Organization FRONTIER COMMUNICAIONS
Agency/Group/Organization Type Services-Broadband Internet Services Provider Services- Narrowing the Digital Divide
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Other- Broadband Specific

FY 23-24 ACTION PLAN 20
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Spectrum provides broadband internet services throughout Fountain Valley which are easily accessible to all residents. They also provide high speed internet at a special, discounted rate to low income households to "Narrow the Digital Divide" in their service areas. They participate in the FCC Emergency Broadband Program thru the federal government to provide additional discounts to qualified households.

Spectrum will continue to provide internet services to the community and special rates to qualified households.
11 Agency/Group/Organization COUNTY OF ORANGE
Agency/Group/Organization Type Agency – Managing Flood Prone Areas Agency- Management of Public Land or Water Resources
Agency - Emergency Management
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Other- Resilience Specific
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
The County of Orange manages 350 miles of flood control facilities throughout the county designed to handle water flow from storm drains and other runoff. They inspect and maintain all facilities, including confined space underground facilities, dams, basins, and pump stations. They operate the County's urban runoff diversion program and are first responders to flood emergencies. They will continue to provide these services to the entire county.

FY 23-24 ACTION PLAN 21
11 Agency/Group/Organization FEMA
Agency/Group/Organization Type Agency – Managing Flood Prone Areas Agency - Emergency Management
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Other- Resilience Specific
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation
or areas for improved coordination?
Consulted with FEMA regarding the FEMA-identified flood risks in the City that appear on the Flood Insurance Rate Map(FIRM). Currently approximately 10% of the city is in the 100-year flood plain. FEMA will continue to provide this service, as well as Disaster Support Services and Emergency Management, during major crisis.

Identify any Agency Types not consulted and provide rationale for not consulting No agency or service was intentionally excluded from the open consultation process.

Other local/regional/state/federal planning efforts considered when preparing the Plan Other local/regional/state/federal
planning efforts considered when
preparing the Plan
Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care County of Orange
Orange County has developed its CoC system in a comprehensive and coordinated effort to provide a service delivery system for the at-risk and homeless population.

FY 23-24 ACTION PLAN 22
Other local/regional/state/federal
planning efforts considered when
preparing the Plan
Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Multi-Jurisdictional Analysis of
Impediments to Fair Housing
OC HUD Grantee
Cities
Identified multi-jurisdictional fair housing impediments that were applicable to the City and which were incorporated into Consolidated Plan/Annual Plan goals.
5-Yr and 1-Yr. Public Housing Authority
(PHA) Plan
Orange County
Housing Authority
(OCHA)
OCHA provides information regarding the needs and availability of low-income renter households throughout the county. City confirms consistency with the OCHA annual PHLA.

City of Fountain Valley Housing Element City of Fountain Valley
Fountain Valley Housing Element identifies the needs, goals, projects and availability of housing for all income levels throughout the city.

City of Fountain Valley Housing and
Community Development Advisory Board
City of Fountain
Valley
Provides input on City programs and activities for low-income households funded with the CDBG allocation.

Table 3 – Other local / regional / federal planning efforts

FY 23-24 ACTION PLAN 23
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting In order to encourage citizen participation in the development of the Action Plan, a number of actions were taken to receive the greatest amount of participation as indicated in the table below. The City did not receive any public input other than from members of the Housing and Community Advisory Board.

Citizen Participation
Mode of
Outreach
Target of Outreach Summary of
response/
attendance
Summary of
comments received
Summary of comments
not accepted and reasons
URL (If
applicable)
1 Newspaper Ad
Non-targeted/broad
community
September 29,
2022 Public Notice
in the Fountain
Valley View
announcing the
availability of
funding under the
City of Fountain
Valley's FY 2023-
24 Public Service
Agency (PSA)
Grant program.

No comments
were received N/A N/A

FY 23-24 ACTION PLAN 24
Mode of
Outreach
Target of Outreach Summary of
response/
attendance
Summary of
comments received
Summary of comments
not accepted and reasons
URL (If
applicable)
2 Direct Mail
Non-profits and
local government
September 29,
2023, grant
applications
mailed or emailed
to all prior-year
program
participants.

No comments
were received

N/A N/A
3 Internet
Outreach
Non-targeted/broad
community
Notice posted
September 29,
2023 on city
website of the
availability of
public service
agency grants.

No comments
were received N/A N/A

FY 23-24 ACTION PLAN 25
Mode of
Outreach
Target of Outreach Summary of
response/
attendance
Summary of
comments received
Summary of comments
not accepted and reasons
URL (If
applicable)
4 Public Meeting
Non-targeted/broad
community
On December 7,
2022, the HCDAB
held a public
meeting to hear
presentations
from public service
agencies applying
for grants and one
agency applying to
provide fair
housing services.

Recommendations
forwarded to City
Council within
Action Plan.

No comments
were received. N/A N/A

FY 23-24 ACTION PLAN 26
5 Newspaper Ad
Non-targeted/broad
community
On February 9,
2023, public notice
published in the
Fountain Valley
View summarizing
the FY 2023-24
Action Plan
budget. The public
notice advised of a
30-day public
review of the Draft
Action Plan and
comment period,
from March 1 to
March 31, 2023.

The public notice
advised of a public
hearing on March
1, 2023 at the
HCDB meeting and
a public hearing on
May 2, 2023, at
the City Council
meeting to receive
public comments.

No comments
were received. N/A N/A

FY 23-24 ACTION PLAN 27
Mode of
Outreach
Target of Outreach Summary of
response/
attendance
Summary of
comments received
Summary of comments
not accepted and reasons
URL (If
applicable)
6 Internet
Outreach
Non-targeted/broad
community
Draft Action Plan
posted on City
website for public
comments and
review on March
1, 2023.

No comments
were received. N/A N/A
7 Public Hearing
Non-targeted/broad
community
The March 1,
2023, HCDAB
meeting was
canceled due to
lack of quorum
and all items were
continued to the
April meeting.

N/A N/A

FY 23-24 ACTION PLAN 28
Mode of
Outreach
Target of Outreach Summary of
response/
attendance
Summary of
comments received
Summary of comments
not accepted and reasons
URL (If
applicable)
8 Public Hearing
Non-targeted/broad
community
On April 5, 2023,
the HCDAB held a
public hearing for
public comment
on the FY 2023-24
Action Plan and
forwarded a
recommendation
of approval to City
Council. (TBD)
No comments
were received N/A
9 Public Hearing
Non-targeted/broad
community
On May 2, 2023, a
Public Hearing of
the City Council
was scheduled to
approve the FY
2023-24 Action
Plan and authorize
submission to HUD
No comments
were received
(TBD)
N/A
Table 4 – Citizen Participation Outreach

FY 23-24 ACTION PLAN 29
AP-15 Expected Resorces – 91.220(c)(1,2)
Introduction
The City of Fountain Valley will receive $347,498 in CDBG grant funding for FY 2023-24. The FY 2023-24 allocation will be combined with $152,502 in unobligated Carry Forward from prior year grants, and $32,285 in CDBG-CV funds, for a total budget of $532,285 for CDBG funded programs and activities.

Other Federal funding sources, although not direct funding to the City, include Housing Choice Voucher Rental Assistance that is administered by the Orange County Housing Authority.

Anticipated Resources
Program Source of
Funds
Uses of Funds Expected Amount Available Year 4 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services $347,498 0 $152,502 $500,000 $1,000,000 Annual allocation plus
unused CDBG funds from
previous years

FY 23-24 ACTION PLAN 30
Program Source of
Funds
Uses of Funds Expected Amount Available Year 4 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG-CV public -
federal
Housing
Public Services 0 0 $32,285 $0
Funds must be used to
prevent, prepare for and
respond to COVID-19.

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
Currently, the Federal funding the City receives from HUD is the sole source of funding for the City’s CDBG program.

The PSA grants provided to non-profit service providers allows them to leverage the City’s grant against funding received from other local, state, federal, and private resources to provide the much needed services to the community.

The City of Fountain Valley also benefits from the housing vouchers for low- income households provided by the Orange County Housing Authority (OCHA). OCHA continues to administer the Housing Choice Voucher Rental Assistance program for a majority of cities in Orange County including Fountain Valley. The vouchers are funded by the Federal government.

The City does not participate in the federally funded HOME program so there are not any matching requirements.

FY 23-24 ACTION PLAN 31
If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
The City does not currently have any publicly owned land or property that can be used to address the needs of the Consolidated Plan. Fountain Valley is a nearly built out community with very little vacant land available for new developments. The Harbor Blvd South Island Specific Plan includes zoning that encourages the production of affordable housing units that, if built by affordable housing developers, would address some of the needs identified in the plan. The city continues to look for opportunities to partner with developers for affordable housing projects in the city.

Discussion
Funding sources to implement the City’s Consolidated Plan are limited. Assuming the continued level of annual CDBG allocation, the City expects approximately $1.6 million of CDBG funds available for the five-year Consolidated Plan period of July 1, 2020, to June 30, 2025, to be used to achieve the goals within the Strategic Plan.

All CDBG-CV funding received from the CARES Act will be used to fund activities and projects that prevent, prepare for and respond to the coronavirus in the community.

FY 23-24 ACTION PLAN 32
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Administration 2020 2024 Affordable
Housing
Public Housing
Homeless
Non-Homeless
Special Needs
Non-Housing
Community
Development
Administration
City-Wide Administration
of Grant
Program
CDBG:
$64,499
Other: 1 Other
2 Neighborhood
Revitalization
2020 2024 Affordable
Housing
City-Wide Owner
Occupied Home
Improvement
CDBG:
$286,877
Homeowner Housing
Rehabilitated: 15 Household
Housing Unit
3 Code
Enforcement
2020 2024 Affordable
Housing
Code
Enforcement
CDBG/Code
Enforcement
Eligible
Exception
Criteria
Code
Enforcement
CDBG:
$84,000
Housing Code
Enforcement/Foreclosed
Property Care: 150 Household
Housing Unit

FY 23-24 ACTION PLAN 33
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
4 Services for
Frail/Elderly
2020 2024 Homeless
Non-Homeless
Special Needs
Non-Housing
Community
Development
Services for
Elderly/Frail
Elderly
City-Wide Services for
Elderly/Frail
Elderly
CDBG:
$19,448
Public service activities other
than Low/Moderate Income
Housing Benefit: 155 Persons
Assisted
5 Youth Services 2020 2024 Non-Homeless
Special Needs
Non-Housing
Community
Development
Youth services
City-Wide Youth Services CDBG:
$17,676
Public service activities other
than Low/Moderate Income
Housing Benefit: 95 Persons
Assisted

FY 23-24 ACTION PLAN 34
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
6 Homeless
Services and
Housing
2020 2024 Affordable
Housing
Homeless
Non-Homeless
Special Needs
Non-Housing
Community
Development
Domestic
violence shelter
and services
City-Wide Homeless
Services and
Housing
$15,000 Public service activities other
than Low/Moderate Income
Housing Benefit: 50 Persons
Assisted
Homeless Person Overnight
Shelter: 50 Persons Assisted
7 Fair Housing
Services
2020 2024 Affordable
Housing
Fair Housing
Services
City-Wide Fair Housing
Services
$5,000 Other: 60 Other
8 Lead Based
Paint Hazard
Grant
2020 2024 Affordable
Housing
Lead Based Paint
Hazards Testing
City-Wide Lead Based
Paint Hazard
Grant
Abatement
CDBG:
$7,500
Other: 15 Other

FY 23-24 ACTION PLAN 35
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
9 COVID-19
Response
2020 2024 COVID-19
Response
City-wide CDBG-CV
$32,285
CDBG-CV-Public service
activities other than
Low/Moderate Income
Housing Benefit: 300 Persons
Assisted
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Administration
Goal
Description
CDBG program administration costs.
2 Goal Name Neighborhood Revitalization
Goal
Description
CDBG funds for owner occupied rehabilitation grants, loans and rebates. 3 Goal Name Code Enforcement
Goal
Description
Housing and Building code enforcement to preserve housing stock in eligible residential areas, on deteriorated or deteriorating properties, and to refer qualified homeowners to Housing Division to apply for grants, loans and rebates.

FY 23-24 ACTION PLAN 36
4 Goal Name Services for Frail/Elderly
Goal
Description
Provide funding to Meals on Wheels congregate and home delivery programs. 5 Goal Name Youth Services
Goal
Description
Provide childcare scholarships and juvenile diversion services. 6 Goal Name Homeless Services and Housing
Goal
Description
Provide funding to domestic violence shelter for emergency shelter and supportive services. 7 Goal Name Fair Housing Services
Goal
Description
Contract with Fair Housing Council Orange County to provide fair housing services to residents per HUD requirement.
8 Goal Name Lead Based Paint Hazard Grant
Goal
Description
Lead-based paint hazard grant to test and abate any hazards found in the course of a City of Fountain Valley Rehabilitation Program project.
9 Goal Name COVID-19 Response
Goal
Description
Programs and activities to prevent, prepare for and/or respond to COVID-19.

FY 23-24 ACTION PLAN 37
Projects
AP-35 Projects – 91.220(d)
Introduction
The projects summarized below address the high priority needs of the Strategic Plan. The City of Fountain Valley will allocate CDBG funding to the projects below to address the needs of low-income residents in Fountain Valley.

Projects
# Project Name
1 Neighborhood Revitalization
2 Administration of CDBG Program
3 Code Enforcement
4 Meals on Wheels Congregate Meals
5 Meals on Wheels Home Delivered
6 Boys and Girls Club of Huntington Valley
7 Waymakers
8 Interval House
9 Fair Housing
10 Lead Based Paint Hazard Grant
11 COVID-19 Response
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
Due to limited amount of available funding, the City prioritizes the public service agency grant program and the home revitalization program, because more households benefit from these programs. The biggest obstacle to meeting the needs of the underserved is the considerable lack of public and private resources to fully address the priorities identified in this Consolidated Plan. Funding for the development and preservation of affordable housing is greater than the revenues available even though the needs are growing. Housing costs are high in Orange County and very large subsidies are needed for affordable housing development, or homeownership assistance. Because of the lack of available resources, the City is not able to fund all community needs as identified during the citizen participation process.

FY 23-24 ACTION PLAN 38
AP-38 Project Summary
Project Summary Information
1 Project Name Neighborhood Revitalization
Target Area City-wide
Goals Supported Neighborhood Revitalization
Needs Addressed Owner Occupied Home Improvement
Funding CDBG: $286,877
Description Provide loans, grants and rebates to low income homeowners for rehabilitation. Must be owner occupied.

Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
15 qualifying low income homeowners a year
Location Description City-wide as qualified
Planned Activities Provide loans, grants and rebates to qualifying low-income households for minor rehabilitation of their single family or mobile home. Owner occupied only.
2 Project Name Administration of CDBG Program
Target Area City-Wide
Goals Supported Administration
Needs Addressed Administration of Grant Program

FY 23-24 ACTION PLAN 39
Funding CDBG: $64,499
Description CDBG program oversight and coordination
Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
Program admin
Location Description City-wide
Planned Activities CDBG program management
3 Project Name Code Enforcement
Target Area CDBG/Code Enforcement Eligible Exception Criteria Goals Supported Code Enforcement
Needs Addressed Code Enforcement
Funding CDBG: $84,000
Description Enforcement of zoning, housing and building codes in CDBG eligible areas Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
Approximately 150 code enforcement violations abated in CDBG eligible areas per year
Location Description CDBG eligible areas
Planned Activities Conduct code enforcement in CDBG eligible areas on deteriorating and deteriorated properties. Educate residents on City's Home Improvement Program.

FY 23-24 ACTION PLAN 40
4 Project Name Meals on Wheels Congregate Meals
Target Area City-wide
Goals Supported Services for Frail/Elderly
Needs Addressed Services for Elderly/Frail Elderly
Funding CDBG: $11,950
Description Provide meals to low income residents at Fountain Valley Senior Center at low or no cost
Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
125 low-income seniors per year.

Location Description Fountain Valley Senior Center, 17967 Bushard St., Fountain Valley, CA 92708 Planned Activities Provide lunch 2 times a week to low income seniors in a congregate setting at low or no-cost
5 Project Name Meals on Wheels Delivered
Target Area City-wide
Goals Supported Services for Frail/Elderly
Needs Addressed Services for Elderly/Frail Elderly
Funding CDBG: $7,498
Description Home delivered meals to frail elderly
Target Date 6/30/2024

FY 23-24 ACTION PLAN 41
Estimate the number and type of families that
will benefit from the proposed activities
30 frail and elderly low income seniors a year
Location Description City-wide
Planned Activities Deliver meals to homebound frail and elderly persons and provide case management
6 Project Name Boys and Girls Club of Huntington Valley Target Area City-wide
Goals Supported Youth Services
Needs Addressed Youth Services
Funding CDBG: $9,676
Description Provide childcare scholarships to low income families Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
50 low income families a year
Location Description Boys and Girls Club of Huntington Valley, 16582 Brookhurst St., Fountain Valley, CA 92708
Planned Activities Provide childcare scholarships to low income families 7 Project Name Waymakers
Target Area City-wide
Goals Supported Youth Services

FY 23-24 ACTION PLAN 42
Needs Addressed Youth Services
Funding CDBG: $8,000
Description Provide juvenile diversion services to city residents Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
45 juveniles and their families will benefit from services Location Description Fountain Valley Police Department and other locations across the city Planned Activities Provide diversion services to juvenile residents in an effort to keep them out of the juvenile justice system.
8 Project Name Interval House
Target Area City-wide
Goals Supported Homeless Services and Housing
Needs Addressed Homeless Services and Housing
Funding CDBG: $15,000
Description Emergency shelter and support services for victims of domestic violence.

Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
50 victims of domestic violence
Location Description Confidential
Planned Activities Emergency shelter and supportive services to victims of domestic violence.

FY 23-24 ACTION PLAN 43
9 Project Name Fair Housing
Target Area City-wide
Goals Supported Fair Housing Services
Needs Addressed Fair Housing Services
Funding CDBG: $5,000
Description Provide fair housing services to low income residents Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
70 low income households assisted per year
Location Description City-wide
Planned Activities Provide fair housing services to low income households in the community 10 Project Name Lead Based Paint Hazard Grant
Target Area City-wide
Goals Supported Lead Based Paint Hazard Grant
Needs Addressed Lead Based Paint Hazard Grant
Funding CDBG: $7,500
Description Provide lead based paint hazard testing to participants of Home Improvement Program
Target Date 6/30/2024

FY 23-24 ACTION PLAN 44
Estimate the number and type of families that
will benefit from the proposed activities
15 low income households that are participating in the home improvement program per year
Location Description City-wide
Planned Activities Tests for lead based paint and abate if necessary 11 Project Name COVID-19 Response
Target Area City-wide
Goals Supported COVID Response
Needs Addressed COVID-19 Impact
Funding CDBG-CV $32,285
Description Programs and Activities to assist community with COVID-19 response.

Target Date 6/30/2024
Estimate the number and type of families that
will benefit from the proposed activities
150 senior and/or low-income clients
Location Description Citywide and Fountain Valley Senior Center, 17967 Bushard St., Fountain Valley, CA 92708. Many services provided via phone and internet.

Planned activities Year 4 of new Senior Social Services program providing information, referral services, food pantry and case management to seniors in response to COVID.

FY 23-24 ACTION PLAN 45
AP-50 Geographic Distribution – 91.22AP-50 Geographic Distribution – 91.22 Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The majority of CDBG funded activities will be available citywide because the programs are available to low-income households regardless of where they live in the city. The exception to this is CDBG funded code enforcement activities that are restricted to the CDBG eligible areas of the city.

Resources are utilized to benefit areas with racial/ethnic minority concentrations as these areas do have some overlap with CDBG eligible areas. According to the latest Census data for 2021, Fountain Valley is approximately 46.7% White, 37.3% Asian, 9% Two or more races, and the remaining 7% consisting of less than 1% Black, 1% American Indian, or 1% Native Hawaiians along with those who didn’t identify race. Different races are scattered throughout the City with concentration of non-white households getting progressively greater in the farther northeast areas. Residents in Fountain Valley who identify as Hispanic comprise approximately

16.9% of the City’s population. The Hispanic population is also slightly more concentrated in the northeastern area of the city.

Geographic Distribution
Target Area Percentage of Funds
City-Wide 75
CDBG/Code Enforcement Eligible Exception Criteria 25
CDBG ELIGIBLE EXCEPTION CRITERIA 0
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically The City has limited resources and all program funding comes from the annual CDBG allocation.

The City strives to allocate funds to help persons and households for which the greatest need exists, and where services relate most closely to other activities affecting neighborhood revitalization and quality of life. To that end, the City has determined that allocating funding to public service agencies and the neighborhood improvement program, which provide services specifically to low income households throughout the city, and funding code enforcement in CDBG eligible areas to maintain the quality of neighborhoods, are the most effective use of

FY 23-24 ACTION PLAN 46
CDBG funding for the residents of Fountain Valley.

Discussion
As discussed above, the City's CDBG program allocates funds to provide activities that promote a better quality of life, that provide safe and secure living environments, and preserve neighborhoods in order to instill pride of ownership throughout the community.

FY 23-24 ACTION PLAN 47
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The proposed activities for FY 2023-24 will allocate CDBG funds to meet the housing needs of the following households.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 0
Special-Needs 0
Total 0
Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported
Through
Rental Assistance 440
The Production of New Units 0
Rehab of Existing Units 15
Acquisition of Existing Units 0
Total 455
Table 10 - One Year Goals for Affordable Housing by Support Type Discussion
Due to the limited resources, the City of Fountain Valley focuses on the Owner-Occupied Home Improvement Program that offers loans, grants, and rebates to qualifying households for minor rehabilitation that will allow low- income households to stay in their homes for a longer period of time. Oftentimes, older homeowners, with reduced income, are better off aging in place and the program can assist them in making the necessary improvements that allows them to do so.

Rental assistance for city residents is provided by the Housing Voucher program administered by the Orange County Housing Authority.

The City also funds Interval House Domestic Violence Shelter that assists homeless victims of domestic violence with emergency shelter and supportive services. This assistance does not meet the HUD definition of Homeless in Table 7 however the funding of the program assists

FY 23-24 ACTION PLAN 48
approximately 55 homeless domestic violence victims annually.

The city continues to look for opportunities to partner with developers to build affordable housing projects in the city. These projects would be funded outside of the CDBG program but would benefit low income households in the area.

FY 23-24 ACTION PLAN 49
AP-60 Public Housing – 91.220(h)
Introduction
There are no Public Housing developments within the City of Fountain Valley.

Actions planned during the next year to address the needs to public housing There are no actions planned during the next year to address the needs to public housing.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
There is no Public Housing within the City of Fountain Valley.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
There is no Public Housing within the City of Fountain Valley.

Discussion
The City supports the County’s efforts to increase the supply and quality of affordable housing countywide.

FY 23-24 ACTION PLAN 50
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City’s homeless strategy using CDBG funds is to provide services that prevent future homelessness. The programs, such as the Home Improvement Program and Public Service Agency Grant Program, benefit low-income households in an effort to ensure they are able to stay in their current housing and/or obtain social services that they may not otherwise be able to afford.

In addition to the programs and activities that are funded with CDBG allocation, the City provides further services to those experiencing homelessness. The City contracts with City Net, a homeless services provider whose mission is to break the cycle of homelessness by connecting people experiencing homelessness to transformative care and innovative housing solutions. They contact unhoused people in the city and offer a variety of outreach and engagement services to reduce homelessness and provide much needed services with the purpose of getting them into permanent housing. To that end, the City of Fountain Valley has entered into a partnership with the neighboring cities of Garden Grove and Westminster to develop a regional navigation center that will provide temporary shelter and supportive services to unsheltered persons experiencing homeless in the tri-city area. The Central Cities Navigation Center (CCNC) is anticipated to open by the end of 2023. City Net services and the CCNC are both funded outside of CDBG.

The City also participates and supports the Santa Ana/Anaheim/Orange County Continuum of Care (COC CA 602) that coordinates a vast network of homeless shelters and support services throughout the county.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The unsheltered homeless population in the City is limited and largely transient; the City does not have a specific gathering spot or permanent encampment for homeless individuals. The common spots for transient homeless in the City are along the Santa Ana River and Mile Square Park that are primarily under County jurisdiction.

Goal: Continue to fund City Net from the General Fund to provide persons experiencing

FY 23-24 ACTION PLAN 51
homelessness information and referrals to nearby assistance and services provided by the various agencies including the Orange County 2-1-1 program.

Goal: Continue to fund a Homeless Liaison Police Officer from the General Fund that is dedicated to homeless issues in the city and educates homeless individuals regarding available programs.

Addressing the emergency shelter and transitional housing needs of homeless persons There remains a shortage of year-round emergency beds across the County. In an effort to provide additional emergency beds the City of Fountain Valley has partnered with the cities of Garden Grove and Westminster to construct and operate an 80- person navigation center to assist with emergency housing and services to unhoused persons.

Goal: Continue Development of the Central Cities Navigation Center funded with Fountain Valley Housing Authority Funds and the General Fund.

Goal: Continue to fund City Net from the General Fund to provide persons experiencing homelessness information and referrals to nearby assistance and services provided by the various agencies including the Orange County 2-1-1 program.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
Fountain Valley provides CDBG funds to a local shelter that provides emergency shelters and transitional housing for domestic violence victims. The shelter also provides educational classes such as preparing resumes, job interviews, career enhancement, and money management.

Medical and legal services are also provided for their clients. These services are designed to provide a foundation for their clients to learn to be more self-sufficient and financially stable.

The contract with CityNet and the development of the Central Cities Navigation Center will address these issues and provide positive outcomes to those experiencing homelessness.

Helping low-income individuals and families avoid becoming homeless, especially extremely

FY 23-24 ACTION PLAN 52
low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The cost of housing is high in Fountain Valley therefore it very difficult for low- income persons to maintain housing without some type of assistance. Programs such as Housing Choice Vouchers (Section 8) and VASH vouchers for veterans are a great help but are in such limited supply that persons just being released from public institutions, or systems of care, would have great difficulty in obtaining a vouchers in order to get immediate housing.

The Orange County 2-1-1 program allows individuals access to a large variety of assistance with a one stop approach and staff make referrals to the program as needed. 2-1-1 Orange County has a fully developed Community Corrections Program to assist people recently exiting from a corrections facility. The program includes a Proposition 47 Re-Entry Center, Stepping-Up Initiative program and Collaborative Courts that assist people recently discharged from the corrections system.

The County uses SHP, ESG, CDBG, EHAP, and OCHA/HSS funds to support the Continuum of Care system by providing emergency shelters and supportive services. In collaboration with the entire CoC, the County of Orange Health Care Agency has also implemented Proposition 63 Full Service Partnership Programs. These programs have created outreach options for homeless persons to access services starting at the street outreach level and continuing until the individual and/or family is well established in permanent supportive housing.

Discussion
The City is dedicated to assisting persons experiencing homelessness. To that end, the Central Cities Navigation Center is projected to open by year end to provide shelter and services to this population. City Net is currently providing outreach services to the City’s unhoused and they will collaborate with the navigation center when it opens. Both of these projects are funded outside of CDBG. The City continues to use CDBG funds to support Neighborhood Improvement programs and social service providers in an effort to prevent future homelessness.

FY 23-24 ACTION PLAN 53
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

The main barrier to affordable housing in Fountain Valley is the lack of developers interested in constructing affordable housing projects. This is primarily due to the high cost of land in the city and the lack of vacant or underutilized land to develop.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City believes its land use controls, fees and permitting processes do not present a constraint to residential development due to the fact that the Fountain Valley General Plan and Municipal Code provide for a range of housing types and densities. The City’s fees are low when compared to surrounding jurisdictions.

The City’s 2021-2029 Housing Element was approved in fall 2022 and has a goal of conserving and supporting affordable housing opportunities in the city. The following strategies to further this goal are outlined in the Housing Element:
• Promote and encourage the development of a variety of housing opportunities to accommodate current and projected households.
• Assist in the provision of housing affordable to lower income households. • Address and, where possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels, as well as housing for people with disabilities.
• Encourage the maintenance and rehabilitation of the City’s existing housing stock. • Conserve and support affordable housing opportunities in the City. • Promote housing opportunities for all persons regardless of race, age, religion, sex, marital status, disability status, ancestry, national origin, or color.

Discussion:

A variety of factors add to the cost of housing in Fountain Valley and constrains the development of affordable housing units. The most significant is the high cost of land as well as the lack of vacant or underutilized land in the city. In an attempt to make affordable housing development more attractive to developers, the city provides zoning incentives for affordable

FY 23-24 ACTION PLAN 54
housing projects in specific areas of the city. The city continues to actively look for additional funding to promote affordable housing and welcomes proposals from affordable housing developers.

Another source for affordable housing units are Accessory Dwelling Units (ADUs). There have been a significant amount of new ADU’s built in the city over the last few years. ADUs represent a viable option for additional affordable housing as they avoid the burden of land costs and are often provided at zero rent or a reduced rent. The city has amended the Development Code to permit ADU’s by right in any zone that permits housing by right, consistent with state law, in order to encourage the production of ADUs.

FY 23-24 ACTION PLAN 55
AP-85 Other Actions – 91.220(k)
Introduction:

The City will implement programs that address the issues listed below.

Actions planned to address obstacles to meeting underserved needs One of the main obstacles to meeting underserved needs is inadequate funding. Many public service agencies struggle to obtain federal and state government funding as well as funding from private foundations to provide much needed services. The City will continue to allocate public service agency funding for activities that serve the needs of the underserved such as services for the elderly, youth and services that assist low income households. The home improvement program also serves low income homeowners of all ages who qualify for program assistance.

City staff refers any residents requesting information regarding rental assistance to OCHA who manages the Housing Voucher program for the majority of the county or 2-1-1 Orange County for additional services. Residents are also directed to Fair Housing Council of Orange County, whom the City contracts for fair housing services, to address questions or concerns of landlords and tenants in the community.

Actions planned to foster and maintain affordable housing The City of Fountain Valley utilizes its Neighborhood Revitalization Program to offer low interest loans, grants and rebates to income eligible homeowners to allow them to make necessary repairs to their homes to provide a safe a decent living environment at an affordable cost. The majority of the applicants are seniors; programs such as these allow seniors to stay in their home as they age, which is usually the most affordable housing option to them. The City is very committed to protecting housing that is affordable to the current resident, and in fact, 54% of the current year’s CDBG budget is dedicated to making funds available for income eligible homeowners.

The City also supports the affordable efforts of the County of Orange as a member of the Cities Advisory Committee. The committee reviews and gives input to the administration of the housing voucher programs such as Section 8 and VASH programs. During times of enrollment in the voucher program, the City assists in distributing applications and providing guidance. The OCHA had anticipated opening the waiting list at the end of 2020 however, the coronavirus postponed that. They are now looking towards mid - 2023 for the possible re-opening of the

FY 23-24 ACTION PLAN 56
waiting list. As of December, 2022, there were still 6,000 people on the current OCHA waiting list.

The City also provides access to a list of countywide affordable housing options to prospective low-income tenants inquiring at City Hall.

Actions planned to reduce lead-based paint hazards
The City of Fountain Valley has established a Lead Based Paint Hazard Grant Program to test, evaluate and mitigate any lead based paint hazards found in the course of a home rehabilitation project. Each home that receives HUD funds for rehabilitation is tested for the presence of lead based paint hazards. Any necessary remediation work is covered by a Lead Based Paint Hazard Grant funded by CDBG funds.

The City promotes lead based paint training updates for local contractors by distributing flyers via the City Building Department as they become available from various government entities.

Actions planned to reduce the number of poverty-level families According to the 2021 American Community Survey 5-Year Estimates, 8.3% of the City’s households are living at or below the poverty level. The City has identified several activities and services using CDBG funding that can be implemented to combat poverty and to prevent possible homelessness. Specific examples include the following activities:
• Provide home improvement programs that allow low-income households to do necessary repairs on their owner occupied properties to allow them to stay in their homes longer.
• Support rental assistance programs provided by the Orange County Housing Authority for very low-income renters.
• Fund emergency shelter supportive services for domestic violence victims to prevent homelessness. Supportive services, counseling and rental assistance are also provided. • Support public services programs to improve the quality of life seniors, youth, the disabled, and other populations that may be severely impacted by the cost of living in the region.

Actions planned to develop institutional structure
The City has made an effort to develop an institutional structure that will help identify and

FY 23-24 ACTION PLAN 57
access resources to improve the community and assist those most in need. The lead agency to administer the CDBG program is the Housing Division of the Planning and Building Department.

The Division will prepare the Consolidated Plan, Citizen Participation Plan, and Analysis of Impediments to Fair Housing Choice every five years, prepare the Annual Action Plan and CAPER, and complete all additional reports required by HUD. The City will ensure the public is notified of all opportunities to provide input and are given ample opportunity to engage in the process as established by the City’s Citizen Participation Plan.

The City will continue to work with non-profit agencies in the delivery of services and programs for the benefit of low and moderate-income residents, and manage and promote the Home Improvement Program that provides funding to low income homeowners for repair and rehabilitation of their homes.

Actions planned to enhance coordination between public and private housing and social service agencies
The City of Fountain Valley does not have any public housing; however, the city supports OCHA who provides rental assistance for low-income households in the community. The City is a member of the Orange County Cities Advisory Committee that reviews the OCHA’s 5-year and 1-year PHA to ensure that it is compatible with the City of Fountain Valley Consolidated Plan.

Additionally, the City reviews PSA grant applications each year to ensure the goals of the PSA’s are compatible with goals of the Consolidated Plan. The City continues to attend meetings with other Orange County grantees to discuss regional efforts and goals that benefit low-income households across the county.

Discussion:

The City allocates funding in the most cost-effective manner to best assist low-income households in the community.

FY 23-24 ACTION PLAN 58
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

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

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

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

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

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

1. The amount of urgent need activities $0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. (2023,2024,2025) 70.00%
It is estimated that more than 70% of CDBG funds will be used to benefit persons of low and moderate income. The time frame to determine the minimum overall benefit to determine that 70% of CDBG funds are used to benefit low and moderate income are program years 2023, 2024, and 2025.

FY 23-24 ACTION PLAN 59

ATTACHMENTS
Citizen Participation Summary
Map of CDBG Code Enforcement Eligible Low Income Areas
Proof of Public Notice

FY 23-24 ACTION PLAN 60
FY 2023-24 CITIZEN PARTICIPATION SUMMARY
In order to encourage citizen participation in the development of the City's FY 2023-24 Action Plan, a number of actions were taken to receive the greatest amount of participation:

On September 7, 2022, a public meeting of the Housing and Community Development Advisory Board (HCDAB) was held to review the Annual Action Plan process and timeline.

On September 29, 2022, Housing and Community Development (HCD) staff published a Public Notice in the Fountain Valley View announcing the availability of funding under the City of Fountain Valley’s FY 2023-24 Public Service Agency (PSA) Grant program. Correspondence further detailing the availability of funding were sent to all prior-year program applicants, participants from the past five years, and posted on the City’s website.

On November 2, 2022, the application period to submit applications for PSA Grant funding closed.

Five (5) program applications were received from four (4) nonprofit organizations that provide services for low-income Fountain Valley residents.

On December 7, 2022, a public meeting of the HCDAB was held to receive presentations by all PSA grant applicants and one (1) fair housing services provider applying for funding to provide fair housing services to city residents.

On February 1, 2023 the HCDAB considered the PSA and fair housing provider applications and made funding recommendations. The recommendations will be forwarded within the Action Plan to the City Council for review and approval.

On February 9, 2023, a Public Notice was published in the Fountain Valley View announcing the commencement of the minimum 30-day review comment period for the Action Plan beginning March 1, 2023 and concluding March 31, 2023. The draft was available for review on the City website, or could be emailed by request. The notice advised of the following public hearings on the Action Plan where public comments will be requested: 1) March 1, 2023 HCDAB meeting, and 2) April 18, 2023 City Council meeting.

The March 1, 2023, HCDAB meeting was canceled due to lack of quorum and the public hearing to review the draft FY 2023-24 Action Plan was continued to the April meeting.

On April 5, 2023, a public meeting of the HCDAB was held to hold a public hearing to gain input on the draft FY 2023-24 Action Plan to make recommendations to City Council. The HCDAB voted

FY 23-24 ACTION PLAN 61
unanimously to forward the FY 2023-24 Action Plan to City Council for review and approval. No public comments were received.

On May 2, 2023, the City Council held a public hearing in the City Council Chambers to review the FY 2023-24 Action Plan that includes the FY 2023-24 CDBG budget. The Fountain Valley City Council unanimously approved the Action Plan and requested the City Manager to execute all necessary documents and forward the plan to HUD. No public comments were received. (TBD)

FY 23-24 ACTION PLAN 62

FY 23-24 ACTION PLAN 63
Public Notices

PUBLIC NOTICE

CITY OF FOUONTAIN VALLEY
FY-2023-24 PUBLIC SERVICE AGENCY GRANT PROGRAM
NOTICE IS HEREBY GIVEN that effective October 3, 2022, the City of Fountain Valley Housing and Community Development Division will begin accepting applications for grant funding under its FY 2023-24 Public Service Agency (PSA) Grant Program funded by Community Development Block Grant (CDBG) funds. It is estimated that $48,000 in funding will be available.

WHO SHOULD APPLY?
Agencies providing services to residents of the City of Fountain Valley relating to housing, basic needs, education, crime prevention, childcare, health issues, employment/job training, and/or general welfare.

PLEASE NOTE - At least 51% of the persons/households assisted under the proposed program/project must qualify as low-income persons/households as defined by the U.S. Department of Housing and Urban Development (HUD). The Income Eligibility Table below outlines the maximum household income levels by household size used to define a low-income household.

Applications will be available beginning Monday, October 3, 2022 on the City website at w w w . f o u n t a i n v a l l e y . o r g or you may email [email protected] to obtain an application.

Applications are submitted as proposals only and the City cannot guarantee the funding of any application submitted. The City of Fountain Valley reserves the right to hold, deny, or postpone funding of any, and all, applications for any reason.

THE DEADLINE FOR APPLICATION SUBMITTAL IS
WEDNESDAY, NOVEMBER 2, 2022, AT 5:00 P.M. POSTMARKS
WILL NOT BE ACCEPTED. FOR ADDITIONAL INFORMATION,
PLEASE CONTACT THE EMAIL ABOVE OR (714) 593-4428.

Publish Thursday, September 29, 2022 Fountain Valley View

FY 23-24 ACTION PLAN 64

PUBLIC NOTICE
30-DAY PUBLIC COMMENT PERIOD AND PUBLIC HEARINGS
FOR THE CITY OF FOUNTAIN VALLEY FY 2023-24 ANNUAL

ACTION PLAN
The City of Fountain Valley (City) Housing and Community Development (HCD) Department, in accordance with U.S. Department of Housing and Urban Development (HUD) regulations, has prepared its draft FY 2023-2024 Action Plan for Community Planning and Development Programs (Action Plan). The Action Plan describes the projects/activities proposed by the City utilizing available Community Development Block Grant (CDBG) funds.

As of the writing of this notice, HUD has not released the actual CDBG funding allocation for FY 2023-24 therefore the entitlement has been estimated utilizing the current year's grant allocation. For FY 2023-24, we are estimating the City will receive $319,886 in federal CDBG program funds. This will be combined with $180,114 in carryover funds from previous years, for a total CDBG program budget of $500,000. Once the actual funding from HUD is available, the allocations for each activity will be adjusted to reflect the actual Grant amount.

The following is a summary of the activities that the City is proposing to implement utilizing available FY 2023-24 CDBG program funding:

Proposed Proiects/Activities
Neighborhood Revitalization Programs $277,786 Public Service Agency Grants $47,979 Public Service Agency-COVI D Response (CV) $30,258
Code Enforcement $80,000
Administrative and Fair Housing Activities $63,977 $500,000 30-Day Public Comment Period
The draft Action Plan will be available March l, 2023 for review and comment on the City website at www.FountainValley.org, You may request a copy at (714) 593-4428 or Ashlyn,[email protected]_Citizen input is greatly encouraged. All comments regarding the Draft Action Plan must be received on or before March 31, 2023. Submit written comments to the email above or mail to Fountain Valley City Hall-HCD, 10200 Slater Avenue, Fountain Valley, CA 92708.

Public Hearings
A public hearing to discuss project design of the Draft FY 2023-24 Action Plan will be held on Wednesday, March l, 2023, at 6:00 p.m. before the Housing and Community Development Advisory Board. A second public hearing approving the application submittal of the FY 2023- 34 Action Plan will take place before the City Council on Tuesday, May 2, 2023 at 6 pm. Both hearings will be in the City Council Chambers located at 10200 Slater Avenue, Fountain Valley, CA 92708. The public is encouraged to attend in-person watch on Channel 3 or stream live at http://fountainvalley.granicus.com/MediaPlayer.php?publish id=2 .

The final version of the FY 2023-24 Action Plan will be submitted to HUD on or about Tuesday, May 16, 2023.

Publish: Thursday, February 9, 2023 Fountain Valley View

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 2, 2023
Members of the City Council
SUBJECT: Fountain Valley Police Department Locker Room Improvement Project

1. Accept the bids and award a construction contract for $3,539,999.99 to Archico Design Build Inc. for the City of Fountain Valley Police Department Locker Room Improvement Project (the Project);

2. Approve Amendment No. 4 for $315,600 to the Interwest Consulting Group, Inc.

CON 21-72 (Munis CON 1142) for As-Needed On-Call Construction Management and Inspection Services; and,

3. Approve a project budget increase of $1,464,925, for total project budget of $4,464,925 to be split between FY 2022-23 and FY 2023-24.

Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☒ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

On February 22, 2023, the City received ten (10) bids for Construction Services for the Improvements to the Fountain Valley Police Department Project. The apparent lowest apparent bidder, Klassic Engineering and Construction Inc., withdrew their bid from consideration. The next apparent low bidder, Archico Design Build Inc., submitted a bid for $3,539,999.99.

This project provides interior improvements to the City’s Police Department’s locker rooms, restrooms, gym and CSI laboratory and also includes exterior improvements to the building's entrance ADA (Americans with Disabilities Act) ramp, stairway and landing. The project will provide additional women’s lockers and restrooms to accommodate the current needs of the police department. The police force has diversified over the years. This project will provide equity among staff by creating equitable men’s, women’s, and gender-neutral locker rooms and restroom upgrades consistent with ADA compliance, create gender-diverse locker rooms and restroom spaces, providing all new lockers sufficiently sized for current personal protective

Improvements to the Police Department Project Award
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gear and equipment, new plumbing fixtures and improvements to the HVAC system, relocate and expand the gym, repurpose and relocate underutilized forensic lab with modern equipment and HVAC system, and include temporary facilities for police department staff to accommodate police operation during construction.

Staff recommends that the City Council:

1. Accept the bids and award a construction contract for $3,539,999.99 to Archico Design Build Inc. for the City of Fountain Valley Police Department Locker Room Improvement Project (the Project);

2. Approve Amendment No. 4 for $315,600 to the Interwest Consulting Group, Inc. CON 21-72 (Munis CON 1142) for As-Needed On-Call Construction Management and Inspection Services; and,

3. Approve a project budget increase of $1,464,925, for total project budget of $4,464,925 to be split between FY 2022-23 and FY 2023-24.

DISCUSSION:

The City owns and operates the Police Department building located at 10200 Slater Avenue.

The Police Department building was constructed in 1984, nearly 40 years ago. The building has been well-maintained; however, the locker and restrooms are heavily utilized and are showing signs of age and deterioration. The current lockers are also undersized for current needs. The original plumbing, electrical, and fixtures do not meet current codes and need replacement.

The project will update materials and finishes, replace toilets, sinks, urinals, and ensure compliance with current standards in the locker rooms and restrooms and provide gender-diverse locker rooms and restrooms.

Project History
In 2018, the project was scoped as a maintenance project to include paint, plumbing fixture upgrade, panel replacement, toilet replacements where needed.

In 2019, after a discussion with the police chief and officers, it was apparent that the maintenance project would not suffice the needs of the department due to a lack of spaces to accommodate women and a gender-diverse police force. The project direction pivoted to include addressing the current personnel capacity, future personnel capacity, and gender diversity.

To accommodate this new direction, on April 9, 2019, the City publicly issued a Request for Proposals (RFP) for the Architectural Design Services for the Fountain Valley Police Department Locker and Restrooms Modernization. On May 16, 2019, the City received ten (10) proposals.

On June 25, 2019, City Council awarded a contract to the highest-ranked firm, TR Design, Inc., for $94,950 for the development of three design concepts, cost options, and biddable plans & specifications for the Project. The project design began in July 2019 and initial design concepts were developed based on the original project scope. The original scope of work was limited to

Improvements to the Police Department Project Award
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the existing footprint of the restrooms/showers. After a discussion with Police Officers, staff and architects determined that existing lockers were too small to accommodate police officers' modern equipment and required gear.

On September 17, 2019, Council approved Amendment No. 1 to the TR Design contract for $45,000 for additional conceptual architectural services for new concept plans to include larger lockers and modernize restrooms/showers. As part of the design process, the new proposal would impact the gym and expanding out to the veranda would yield very minimal additional space but with a high cost.

In 2020, all General Fund projects including this Project were put on hold due to the unprecedented world-wide COVID-19 pandemic and pending General Fund revenue analysis.

On January 27, 2021, Amendment No. 2 to the TR Design contract was approved for an administrative time extension to the original contract.

On March 16, 2021 Council meeting, staff presented the following General Fund CIP program projects for Council consideration.
 PD Locker Room Improvement Project (the Project)
 Fire Station 1
 Recreation Center Interior Improvement
After March 16, 2021 presentation, per Council concurrence, the Project direction pivoted to utilize the existing and underutilized CSI room to accommodate a plan that improves the restrooms, provides gender diversity, installs new locker rooms, addresses ADA compliance, provides temporary facilities, improves the CSI room and the exercise room without costly structural modifications to the outer building walls.
 All police labor groups participated in selecting design concepts via in-person meetings and electronic surveys.
 Final survey was via Survey Monkey on August 3, 2021. They chose the option that best suited the needs of the department.

On May 18, 2021, Council approved Amendment No. 3 to the TR Design contract in the amount of $139,832 for architectural design plans and specifications that include the new concept plan that incorporates the new concept presented on March 16, 2021 council meeting. This space will be repurposed and reorganized and will provide enough space to accommodate the necessary improvements by relocating the gym. These additional improvements include the following elements:
 Increase the women’s locker and restrooms to accommodate current needs for equity  Men and women’s locker rooms and restrooms upgrades for ADA compliance  Create gender-diverse locker rooms and restroom spaces  Provide all new lockers sufficiently sized for current personal protective gear and equipment
 Provide new plumbing fixtures and HVAC system
 Relocate and expand the gym

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 Repurpose and relocate underutilized forensic lab with modern equipment and HVAC system
This will eliminate the need to construct a new outer wall along the veranda and all other appurtenances extensions.

On December 19, 2022, the City publicly advertised the project and on February 22, 2023, the City received ten (10) bids for the City of Fountain Valley Police Deparment Locker Room Improvements. The lowest apparent bidder, Klassic Engineering and Construction Inc., withdrew their bid from consideration. The next apparent low bidder, Archico Design Build Inc., (Archico) submitted a bid for $3,539,999.99.

The bid difference between apparent lowest bidder Klassic and second lowest bidder Archico is $4,621.40. Staff believe this is a very good competitive bid considering the bidding climate with construction and labor cost escalation.

Archico has completed similar projects for other municipalities in Southern California. Archico also completed Recreation Center Exterior Improvement work for the City of Fountain Valley.

Staff received positive feedback from Archico’s references for similar projects performed in Southern California and staff had a great experience previously working with Archico in Fountain Valley.

The following is a summary of the bids received:

1. Klassic Engineering and Construction Inc. $3,535,378.59 (Withdrew bid)

2. Archico Design Build Inc. $3,539,999.99

3. JR Universal Construction Inc. $3,546,539.59

4. JT Construction Group Inc $3,840,552.59

5. Kazoni Construction $3,913,316.59

6. Builders United, LLC $4,214,844.19

7. R J Daum Construction $4,243,111.59

8. D.F. Perez Construction, Inc. $4,518,701.59

9. DALKE & SONS CONSTRUCTION, INC. $4,555,345.59

10. PCN3, INC. $5,285,219.76
Staff recommends that the City Council accept the bids and award a construction contract for $3,539,999.99 to Archico for Construction Services for the Project.

Project and Construction Management
The Engineering Division has over $2.45M CIP program in addition to private development plan checking activities with one (1) Associate Engineer and two (2) Assistant Engineers. The department needs staff augmentation to ensure a successful project delivery for this important project for the City of Fountain Valley Police Department.

Interwest Consulting Group, Inc. has submitted a proposal for project management/construction management and inspection services for $315,600. Interwest is a well-known civil engineering and construction management firm with a good reputation and has provided construction management services for various Southern California agencies,

Improvements to the Police Department Project Award
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including in Fountain Valley. They have valuable construction management experience including similar types of the government building improvement projects throughout the county.

Interwest has provided consulting services to Fountain Valley in the past including providing inspection services for projects such as the City’s Fire Butler Building, Universally Accessible Playground, and City Hall Maintenance Project. Their expertise in managing capital facilities projects similar to these will ensure successful completion of these projects meanwhile ensuring compliance with all State building and ADA requirements.

Staff recommends that the City Council accept Interwest’s proposal for project management / construction management services and award a contract for $315,600 to Interwest Consulting Group for Improvements to the Fountain Valley Police Department Project.

FISCAL REVIEW:

The current FY 2022-23 General Fund Capital Improvement budget includes $3,000,000 for the Police Department Locker Room project. Staff estimates the City will expend a total of $75,000 in the current fiscal year, with the remaining expenditures occurring in FY 2023-24.

Staff will include $4,389,925 for the Police Department Locker Room project in the upcoming FY 2023-24 capital improvement budget to be presented to City Council on May 16, 2023.

PROJECT BUDGET
General Fund (FY 22/23) $3,000,000.00

PROJECT COSTS (FY22/23)
Architectural Design Services (TR Design)* *$124,906.26 Project Management Services (Interwest)** **$80,418.18
Construction Contract (Archico Design Build Inc.) $3,539,999.99 10% Contingency(1) $354,000.00
Project/Construction Management & Inspection Services
(Interwest) $315,600.00
Material Testing $45,000.00
Project Plans and Bid Document Printing Costs $5,000
Total Project Costs $4,464,924.43
FY 2022-2023 Estimated Expenditures $75,000
FY 2023-2024 Project Budget $4,389,925
Total Project Budget $4,464,925
*Approved by City Council on June 1, 2021
**Approved by City Council on February 1, 2022
(1) Note that, as in all of the City's public works contracts, the contract itself provides the Director of Public Works authority to issue change orders of up to 10% of the original contract amount.

When the Council approves the contract, it approves this authority. Ten percent is generally considered within the normal range of changed conditions on a public works construction project and, by providing change order authority upfront, Council helps to reduce the possibility of delay

Improvements to the Police Department Project Award
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damages that could be incurred when a contractor must stop work and wait for authorization to proceed.

Interwest Consulting Group, Inc. CON 21-72 (Munis CON 1142) CON 21-72 (Munis CON 1142) * $400,000.00
Amendment No. 1 to CON 21-72 (Munis CON 1142) ** - UAP Project $12,275.00 Amendment No. 2 to CON 21-72 (Munis CON 1142) *** – City Hall Finance Offices Project and Plan Checking Review Services $88,090.00
Amendment No. 3 to CON 21-72 (Munis CON 1142) **** - City Hall Safety Improvements Project
$11,930.00
Amendment No. 4 to CON 21-72 (Munis CON 1142) –
Project/Construction Management & Inspection Services for Improvements to the PD
$315,600.00
Total CON 21-72 (Munis CON 1142) Amount $827,895.00
*Approved by City Council on November 16, 2021
**Amendment No. 1 to CON 21-72 (Munis CON 1142) approved by City Council on January 17, 2023 *** Amendment No. 2 to CON 21-72 (Munis CON 1142) approved by City Council on February 21, 2023 **** Amendment No. 3 to CON 21-72 (Munis CON 1142) approved by City Council on March 7, 2023 Total Costs for Interwest Consulting Group, Inc.

Fire Station Remodel* $33,418.18
PD Locker / Restroom / CSI Room Improvements* $80,418.18 Universally Accessible Playground Project * $23,418.64
Plan Check & Encroachment Review ** $158,730.00
Construction Management and Inspection for Universally Accessible Playground Project ***
$116,290.00
Construction Management and Inspection for the City Hall Finance Offices Project ****
$11,930.00
Plan Check Review Services **** $76,160.00
Construction Management and Inspection Services for the City Hall Entry Area Maintenance Project*****
$11,930.00
Project/Construction Management & Inspection Services for Improvements to the PD
$315,600.00
Total Cost $827,895.00
*Approved by City Council on February 1, 2022
**Approved by City Council on March 1, 2022 and May 17, 2022 ***Approved by City Council on January 17, 2023
****Approved by City Council on February 21, 2023
*****Approved by City Council on March 7, 2023
PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

Improvements to the Police Department Project Award
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ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the contract with Archico Design Build Inc. for Improvements to the Fountain Valley Police Department Project.

The Attorney for the City has also reviewed and approved the As-Needed On-Call Construction Management and Inspection CON 21-72 (Munis CON 1142) for Interwest Consulting Group, Inc. on November 16, 2021. The contract is active for three years from the award date.

ALTERNATIVES:

Alternative No. 1:

1. Accept the bids and award a construction contract amount of $3,539,999.99 to Archico Design Build Inc. for the City of Fountain Valley Police Department Locker Room Improvement Project (the Project);

2. Approve Amendment No. 4 for $315,600 to the Interwest Consulting Group, Inc.

CON 21-72 (Munis CON 1142) for As-Needed On-Call Construction Management and Inspection Services; and,

3. Approve a project budget increase of $1,464,925, for total project budget of $4,464,925 to be split between FY 2022-23 and FY 2023-24.

Alternative No. 2:

1. Do not accept the bids and do not award a contract in the amount of $3,539,999.99 to Archico Design Build Inc. for Construction Services for Improvements to the Fountain Valley Police Department Project;

2. Do not approve Amendment No. 4 to the Interwest Consulting Group, Inc.

CON 21-72 (Munis CON 1142) in the amount of $315,600; and,

3. Do not approve a project budget increase of $1,464,925, for total project budget of $4,464,925 to be split between FY 2022-23 and FY 2023-24.

Alternative No. 2 is not recommended as this project is needed to meet current functionality, building code, ADA requirements, provide gender diversity, modernize various materials and finishes and prevent further deterioration in the facility. Not taking action now will lead to increased maintenance and repair costs in the future.

RECOMMENDATION:

Staff recommends that the City Council:

1. Accept the bids and award a construction contract amount of $3,539,999.99 to Archico Design Build Inc. for the City of Fountain Valley Police Department Locker Room Improvement Project (the Project);

2. Approve Amendment No. 4 for $315,600 to the Interwest Consulting Group, Inc. CON 21-72 (Munis CON 1142) for As-Needed On-Call Construction Management and Inspection Services; and,

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May 2, 2023

3. Approve a project budget increase of $1,464,925, for total project budget of $4,464,925 to be split between FY 2022-23 and FY 2023-24.

Prepared by: Kyle Hilton, Associate Engineer
Reviewed by: Temo Galvez, P.E., Deputy Public Works Director / City Engineer Approved by: Hye Jin Lee, P.E., Director of Public Works Fiscal review by: Ryan Smith, Finance Director / City Treasurer Approved by: Maggie Le, City Manager
Attachment 1: Archico Design Build Inc. Contract
Attachment 2: Interwest Consulting Group, Inc. CON 21-72 (Munis CON 1142) Attachment 3: Amendment No. 4 to CON 21-72 (Munis CON 1142)

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Dear Contractor:

In entering into an agreement with the City of Fountain Valley, you must designate your form of business entity. There are three basic types of business entities. They are:

1. A Sole Proprietorship
(with or without a “dba”)

2. A Partnership

3. A Corporation
In entering into contracts with the City of Fountain Valley, please indicate the complete name of your business in one of the following acceptable formats:

1. John Smith, Sole Proprietor;
or
John Smith, Sole Proprietor,
doing business as “Acme Roofing”

2. Smith and Dokes, a California Partnership;

3. Smith Corporation, Inc.,
a California Corporation
In signing the agreement with the City of Fountain Valley, you or your agent must sign in one of the following manners so the capacity in which you or your agent is signing is clear:

1. John Smith, Sole Proprietor

2. Smith and Dokes
By:

John Smith, Partner

3. Smith Corporation, Inc.

By:

Vice President
Your Public Notary must indicate your capacity when acknowledging your signature.

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CONTRACT
CON- -
This AGREEMENT is made and entered into this 2nd day of May, 2023, by and between the CITY OF FOUNTAIN VALLEY, hereinafter referred to as “CITY,” and Archico Design Build Inc., hereinafter referred to as “CONTRACTOR.”

WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and exchanged, CITY and CONTRACTOR mutually agree as follows:

SCOPE OF THE WORK AND CONTRACT SUM

1. Scope of the Work. CONTRACTOR shall perform all the work and shall provide and furnish all labor, materials, tools, expendable equipment, utility and transportation services required to construct Project No. 1001917002, Improvements to the Fountain Valley Police Department Project (hereafter referred to as “PROJECT”).

2. Labor and Materials. All of said work to be performed and materials to be furnished shall be in strict accordance with the plans and specifications entitled Project No. 1001917002, Improvements to the Fountain Valley Police Department Project and CONTRACTOR agrees to do everything required by this AGREEMENT, the Special Provisions, the plans and specifications, and the CONTRACT DOCUMENTS.

All labor, materials, tools, equipment, and services shall be performed under the direction, administration, and subject to the approval of CITY or its authorized representatives.

3. Contract Sum. CITY agrees to pay, and CONTRACTOR agrees to accept in full payment for the work above agreed to be done, the sum of three million five hundred thirty-nine thousand nine hundred ninety-nine dollars and ninety-nine cents ($3,539,999.99).

NOTICE TO PROCEED AND TIMING

4. Notice to Proceed. No work, services, material, or equipment shall be performed or furnished under this AGREEMENT unless and until a “Notice to Proceed” has been given to CONTRACTOR by CITY and all bonds and certificates of insurance required pursuant hereto have been furnished to and approved by CITY.

5. Time of Completion. CONTRACTOR agrees to commence the work to be performed under this AGREEMENT on the start of construction date specified in the “Notice To Proceed” and to diligently prosecute the work to completion by the completion date specified in the Notice to Proceed, which the parties agree is THREE HUNDRED AND FORTY (340) WORKING DAYS.

6. Time of the Essence. Time is of the essence of this AGREEMENT.

7. Liquidated Damages/Additional Actual Damages. It is agreed by the parties hereto that in case the total work called for hereunder in all parts and requirements is not finished or completed within the number of working days as set forth herein, damage will be sustained by the CITY, and that it is and will be impractical and extremely difficult to ascertain and determine the actual damage which the CITY will sustain in the event of and by reason of such delay. It is therefore

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agreed the CONTRACTOR will pay to the CITY the sum of ONE THOUSAND TWO HUNDRED AND THIRTY FIVE and 00/100 Dollars ($1,235) per calendar day for each and every day of delay in finishing the work in excess of the number of days prescribed in Section 5, and the CONTRACTOR agrees to pay said liquidated damages herein provided for and further agrees that the CITY may deduct the amount thereof from any monies due or that may become due the CONTRACTOR hereunder. Liquidated damages shall be a measurement of the sum to compensate the public for inconvenience from not having the work completed on time and the cost of CITY staff to monitor the job beyond the completion date. CITY shall further be entitled to recover its additional actual damages incurred which shall be supplemental to the liquidated damages.

Provided strict compliance with Section 22 below is effected, the CONTRACTOR will be granted an extension of time and will not be assessed with liquidated damages for any portion of the delay in completion of the work beyond the time named herein due to unforeseeable causes beyond the control and without the fault or negligence of the CONTRACTOR, including, but not restricted to, acts of God or of the public enemy, fire, floods, epidemics, quarantine restrictions, strike, and unsuitable weather, or delays of subcontractors due to such causes.

JOB PROGRESS AND COOPERATION

8. Job Progress. CONTRACTOR agrees to maintain a realistic critical path analysis throughout the project. CONTRACTOR agrees to meet with CITY’s PROJECT MANAGER or designee on a weekly or other periodic basis, or as requested by CITY to review job progress.

PROJECT MANAGER for purposes of this AGREEMENT shall be the Director of Public Works or such designee as has been given the authority for this project in a written designation.

CONTRACTOR agrees to provide CITY with critical path analysis documentation whenever job progress is impacted so that the completion date may be affected or whenever delays or other impacts may give rise to CONTRACTOR’s claim for additional days or additional damages. Delay and other claims of damages based on CONTRACTOR’s planned early completion are prohibited.

9. Cooperation. CONTRACTOR agrees to cooperate with CITY’s PROJECT MANAGER or designee and to provide submittals and participate in meetings in a good faith effort to complete the project. If disagreements arise, CONTRACTOR agrees to document the disagreement in accordance with these AGREEMENT provisions and provide CITY with early notice of the same for later resolution but shall continue to cooperate and prosecute the work to completion in a diligent manner. Nothing herein shall excuse CONTRACTOR’s strict compliance with Section 22 if additional time or money is sought.

10. CONTRACTOR’S Independent Investigation.
(a) No plea of ignorance of conditions that exist or that may hereafter exist, or of conditions or difficulties that may be encountered in the execution of the work under this AGREEMENT, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by CITY for purposes of letting this AGREEMENT out to bid, will be accepted as an excuse for any failure or omission on the part of the CONTRACTOR to fulfill in every detail all requirements of said AGREEMENT, specifications, and plans, nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time except as provided in Section 22 of this AGREEMENT.
(b) Except as specifically provided in the CONTRACT DOCUMENTS, information provided for purposes of bidding do not represent “conditions indicated” as being in existence and

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are provided for the convenience of the parties in making their own investigation. PREVAILING

WAGES & LABOR, WAGE, AND HOURS LAWS

11. Compliance with the Davis-Bacon Act. This provision does not apply to this AGREEMENT.

12. Public Work/DIR Registration. Notice is provided pursuant to Labor Code Section 1781 that this is a “public work” as defined in Chapter 1, Part 7, Division 2 of the Labor Code, to which Section 1771 applies. CONTACTOR shall pay prevailing wages, unless exempt. All contractors and subcontractors working on this job shall be registered with the Department of Industrial Relations using online form 100.

13. Prevailing Wage Rates. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages can be found at http://www.dir.ca.gov/OPRL/PWD/index.htm and are on file at City Hall, which shall be made available to any interested party upon request.

CONTRACTOR shall post a copy of the determination of the director of the prevailing rate of per diem wages at each job site. Said per diem wages are deemed to include employer payments for health and welfare, pension, vacation and travel time, and subsistence pay, all in accordance with Section 1773.1 of the Labor Code.

14. Payroll Records. The provisions of Section 1776 of the Labor Code regarding the preparation, maintenance, and filing of payroll records are applicable to this AGREEMENT. Each contractor and subcontractor 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 him or her in connection with the public work. Electronic certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or contain the same information. THE CONTRACTOR’S AND SUBCONTRACTOR’S PAYROLL RECORDS SHALL BE SUBMITTED TO CITY ON A WEEKLY BASIS. THE CONTRACTOR SHALL BE RESPONSIBLE FOR SUBMITTAL OF SUB-CONTRACTOR’S PAYROLL RECORDS. Additionally, CONTRACTOR or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in Section 1776 subdivision (a) of the Labor Code. In the event that CONTRACTOR or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to CITY, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. CITY may deduct this penalty from any monies due or that may become due CONTRACTOR under this AGREEMENT.

15. Penalty. CONTRACTOR and any subcontractor under CONTRACTOR shall, as a penalty to CITY, forfeit not more than Two Hundred Dollars ($200.00) for each calendar day or portion thereof for each worker paid (either by CONTRACTOR or any subcontractor under CONTRACTOR) less than the prevailing rate set forth herein on the work provided for in this AGREEMENT. CITY may deduct the penalty from any monies due or that may become due CONTRACTOR under this AGREEMENT. The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall also be paid to each worker by CONTRACTOR or subcontractor, in accordance with Section 1775 of the Labor Code of the State of California.

16. Apprentices. If applicable, the provisions of Labor Code Section 1777.5 requiring the use of apprentices in certain ratios to journeymen on the project are hereby imposed upon CONTRACTOR.

17. Legal Day’s Work. In the performance of this AGREEMENT, not more than eight (8) hours shall constitute a day’s work, and the CONTRACTOR shall not require more than eight

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(8) hours of labor in a day from any person employed by him hereunder except as provided in Labor Code Section 1815. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California, and it is agreed that the CONTRACTOR shall forfeit to the CITY as a penalty the sum of Twenty-Five Dollars ($25.00) for each worker employed in the execution of this AGREEMENT by the CONTRACTOR or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said article. CITY may deduct this penalty from any sums owed pursuant to this AGREEMENT.

PROGRESS PAYMENTS AND RETENTION

18. Progress Payments. Pursuant to Public Contract Code Section 7201, prior to the fifteenth (15th) day of the month next following the commencement of the work, there shall be paid to CONTRACTOR a sum equal to ninety-five percent (95%) of the value of the work completed since the commencement of the work as determined by CITY and thereafter prior to the fifteenth (15th) day of each successive month as the work progresses. CONTRACTOR shall be paid such sum as will bring the payments up each month to ninety-five percent (95%) of the value of the work completed since the commencement of the work as determined by CITY, less all previous payments and authorized deductions, provided that CONTRACTOR submits his request for payment prior to the last Wednesday of each preceding month. Pursuant to Public Contract Code 7107, CITY shall make the final payment, if unencumbered, or any part thereof unencumbered, within sixty (60) days after the date of completion. Notwithstanding the foregoing, CONTRACTOR shall provide CITY with all documentation required by this AGREEMENT, including the Final Closeout Agreement and Release of All Claims, as well as any other documents required by the CONTRACT DOCUMENTS, such as as-builts, red-line plans, manufacturers and specific guarantees, and owner’s manuals prior to receiving final payment. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the Director of Public Works, stating that the work for which payment is demanded has been performed in accordance with the terms of the AGREEMENT, and that the amount stated in the certificate is due under the terms of the AGREEMENT. Partial payments on the AGREEMENT price shall not be considered as an acceptance of any part of the work. Nothing herein shall limit CITY’s right to withhold one hundred fifty percent (150%) of disputed amounts in the event of a good faith dispute.

19. Prompt Payments. CITY agrees to promptly make progress payments on undisputed and properly submitted payment requests within thirty (30) days and to comply with the provisions of Public Contract Code Section 20104.50.

20. Retention Securities. Pursuant to California Public Contract Code Section 22300, CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution in order to have the CITY release funds retained by the CITY to ensure performance of the AGREEMENT.

21. Federal Participation. This provision does not apply to this AGREEMENT. If this project had involved federal funds, other provisions would be incorporated into this AGREEMENT.

If those provisions had applied, the Davis-Bacon Act would govern the payment of prevailing wages.

CHANGE ORDERS / EXTRA TIME / EXTRA WORK

22. Request for Extra Time or Additional Compensation. The following provisions must be strictly complied with to obtain additional time to complete the job or to obtain additional compensation:
(a) Request for Change Order – Additional Time. The CONTRACTOR shall promptly

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notify the CITY of any delay and shall within ten (10) days from the beginning of any such delay notify the CITY in writing of the cause of the delay, and the CITY shall extend the time for completing the work if in its judgment the cause so merits. The CITY’s determination on this matter shall be final and conclusive on the parties hereto. CONTRACTOR shall be required to submit a Request for Change Order, as set forth in this AGREEMENT, to the CITY’s PROJECT MANAGER within ten (10) days of the beginning of such delay. No adjustment shall be allowed for such delay unless there is strict compliance with this contractual provision. CONTRACTOR’s remedy shall be limited to the extra days granted and to any damages that it may be entitled to using the formula agreed to by the parties for all damages as provided in Section 22. (b) Request for Change Order – Additional Compensation Sought. (i) Should CONTRACTOR claim that the CITY is demanding extra work from it or consider any work demanded of it to be outside the requirements of this AGREEMENT or if it considers any instruction, ruling, or decision of the PROJECT MANAGER to be unfair, he shall within ten (10) days after any such demand is made, or instruction, ruling, or decision is given, file a written protest with the PROJECT MANAGER, stating clearly and in detail his objections and the reasons therefor. Except for such protests and objections as are made of record, in the manner and within the time above stated, the CONTRACTOR shall be deemed to have waived and does hereby waive all claims for extra work, damages, and extensions of time on account of demands, instructions, rulings, and decision of the PROJECT MANAGER.
(ii) Should CONTRACTOR claim that additional compensation is due it because of an unforeseen condition, CONTRACTOR shall bring that to CITY’s attention promptly and, within ten (10) days, shall submit a written request for change order to CITY. Except for such claims as are made of record, in the manner and within the time above stated, the CONTRACTOR shall be deemed to have waived and does hereby waive all claims for additional compensation on account of unforeseen conditions. (c) Request for Change Order – City Form to Be Used. CITY’s Request for Change Order form, which is attached hereto as part of this AGREEMENT, shall be the form that must be submitted in a timely fashion for a request for either additional time or additional compensation. By initialing, the CONTRACTOR specifically agrees to use said form for those purposes and understands that, if he does not submit that form in a timely manner, he waives the right to request additional time or compensation. No oral modifications or other forms of communication shall be accepted as compliance with this provision.

Contractor’s Initials
(d) Change Order. Should CITY agree that a change order is warranted for either additional time or compensation, a written change order shall be executed. If CITY does not agree to the change order, and CONTRACTOR has provided timely notices and submitted its written request for change order in a timely manner, CONTRACTOR will have preserved the issue for later resolution in compliance with other procedures set forth in this AGREEMENT or as the law (including, but not limited to, Public Contract Code 9204) may otherwise require or allow. (e) Change Order Authority. The following authority is hereby given to make change orders:
(i) Change Orders for Extra Time. The City Manager, Director of Public Works, or PROJECT MANAGER shall have the authority to grant extra days without limit. (ii) Change Orders for Extra Compensation. The Director of Public Works shall

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have the authority to make change orders up to an aggregate amount of Ten Percent (10%) of the original contract amount.

23. Damages / Extra Work Compensation. The parties have agreed to modify the formula for damages set forth in the Standard Specifications for Public Works Construction. The parties agree that the following damage formula shall be used to measure all of CONTRACTOR’s damages or extra work required by this job. CONTRACTOR shall be limited to the following:

Direct costs Mark-up
Labor 20%
Materials 15%
Equipment Rental 15%
Subcontracted work 10% (first $5,000)
Subcontracted work 5% (work in excess of first $5,000)
Specialty Subcontracting
(required by extra work) 5% (Provided at least three (3) competitive bids are obtained
and CONTRACTOR selected
the lowest bidder)
Excluded from recovery shall be “Eichleay damages,” home office overhead, insurance and bonding costs, lost bonding capacity, lost profits, and lost interest.

CONTRACTOR acknowledges that his recovery for damages or extra work is limited as provided in this Section.

Contractor’s Initials

SUBCONTRACTING

24. Subcontracting. CONTRACTOR acknowledges that he or she is aware of the provisions of the “Subletting and Subcontracting Fair Practices Act” (Public Contract Code Sections 4100 et seq.) and agrees to comply with all applicable provisions thereof. If any part of the work to be done under this AGREEMENT is subcontracted, the subcontract shall be in writing and shall provide that all work to be performed thereunder shall be performed in accordance with this AGREEMENT. Upon request, certified copies of any or all subcontracts shall be furnished to CITY.

The subcontracting of any or all of the work to be done will in no way relieve CONTRACTOR of any part of his responsibility under the AGREEMENT. Pursuant to Public Contract Code Section 4110, CONTRACTOR’s violation of any of the provisions of the Subletting and Subcontracting Fair Practices Act violates this AGREEMENT and CITY may cancel this AGREEMENT or assess CONTRACTOR a penalty of not more than 10 percent (10%) of the subcontract involved. CITY may deduct this penalty from any monies due or that may become due to CONTRACTOR for work performed under this AGREEMENT.

All persons engaged in the work, including subcontractors, will be considered as employees of CONTRACTOR. CONTRACTOR will be held responsible for their work. CITY will deal directly with and make all payments to CONTRACTOR.

When a subcontractor fails to prosecute a portion of the work required under this AGREEMENT in a manner satisfactory to the CITY, CONTRACTOR shall remove such subcontractor immediate upon written request of the CITY, and shall request approval of a replacement subcontractor to perform the work in accordance with the Subletting and

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Subcontracting Fair Practices Act at no added cost to the City.

STOP NOTICES

25. Additional Costs. Pursuant to Civil Code Section 9358, upon receipt of a stop notice, CITY shall withhold from payment to CONTRACTOR sufficient funds due or to become due to pay the claim stated in the stop notice and provide for reasonable costs of litigation. One hundred twenty five percent (125%) of the amount of the claim stated in the stop notice shall be a reasonable amount to withhold. In addition to the remedies authorized by law, CONTRACTOR shall reimburse CITY for administrative expenses incurred in processing Notices to Withhold, Stop Notices, or similar legal documents arising out of a failure of CONTRACTOR to pay for labor or materials. Said obligation shall be provided for in CONTRACTOR’s payment bond. CITY shall have the right to deduct any such expenses from amounts due or to become to CONTRACTOR under this AGREEMENT.

COMPLETION

26. CONTRACTOR’S Waiver. CONTRACTOR agrees to execute a Final Close Out Agreement and Release of All Claims on CITY’s form. The execution by CONTRACTOR of the Final Close Out Agreement and Release of All Claims shall constitute a waiver of all claims against CITY under or arising out of this AGREEMENT unless otherwise stated in said document.

27. Guarantees. CONTRACTOR shall and hereby does guarantee all work for a period of one (1) year after the date of acceptance of the work by the CITY and shall repair and replace any and all such work, together with any other work which may be displaced in so doing, that may prove defective in workmanship and/or materials within the one (1) year period from the date of acceptance, without expense whatsoever to the CITY, ordinary wear and tear and usual abuse or neglect excepted. In the event of failure to comply with the aforementioned conditions within five (5) days after being notified in writing, the CITY is hereby authorized to proceed to have the defects repaired and made good at the expense of the CONTRACTOR, who shall pay the cost and charges therefor immediately on demand. This guarantee shall be in addition to any manufacturer or specific guarantees that may be required. CONTRACTOR shall provide those manufacturer and specific guarantees before CONTRACTOR may claim entitlement to final payment.

INDEMNIFICATION

28. Indemnity. CONTRACTOR shall indemnify, defend with legal counsel approved by CITY, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this AGREEMENT, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both CITY and CONTRACTOR, or should CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsels’ fees, expert fees and all other costs and fees of litigation. The CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

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CONTRACTOR obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless CITY for liability attributable to the sole or active negligence or willful misconduct of CITY, provided such sole or active negligence or willful misconduct is determined by agreement between the parties or by the findings of a court of competent jurisdiction.

In instances where CITY is shown to have been solely or actively negligent or committed willful misconduct, and where CITY’s sole or active negligence or willful misconduct accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the sole or active negligence or willful misconduct of CITY.

Notwithstanding any limits provided for indemnification, CONTRACTOR’s duty to defend is broader. To the fullest extent permitted by law, CONTRACTOR agrees to provide CITY with a defense, with counsel reasonably acceptable to CITY, or pay CITY’s costs of defense, upon service of any complaint, petition, or other pleading that requires CITY to defend itself in any proceeding arising out of the work described in this AGREEMENT. Said obligation shall not extend to disputes between CONTRACTOR and CITY.

INSURANCE

29. Insurance. Without limiting CONTRACTOR’s indemnification of CITY, and prior to commencement of Work, CONTRACTOR shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.

General liability insurance. CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability, and a $2,000,000 completed operations aggregate.

Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with Work to be performed under this AGREEMENT, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

Umbrella or excess liability insurance. CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than $4,000,000 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 and employer’s liability. Such policy or policies shall include the following terms and conditions:
 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;
 Pay on behalf of wording as opposed to reimbursement;  Concurrency of effective dates with primary policies; and  Policies shall “follow form” to the underlying primary policies.  Insureds under primary policies shall also be insureds under the umbrella or excess policies.

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Workers’ compensation insurance. CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR ’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code In addition, CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.

CONTRACTOR shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.

Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this AGREEMENT shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the PROJECT site to the final disposal location, including non-owned disposal sites.

Products/completed operations coverage shall extend a minimum of three years after PROJECT completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The CITY, its officials, officers, agents, and employees, shall be included as insureds under the policy.

Builder’s risk insurance. Upon commencement of construction and with approval of CITY, CONTRACTOR shall obtain and maintain builder’s risk insurance as specified below.

The named insureds shall be CONTRACTOR, all Subcontractors (excluding those solely responsible for design Work) of any tier, suppliers, and CITY and its officers, officials, employees, and agents. CONTRACTOR shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to CITY.

Policy shall be provided for replacement value on an "all risk" basis. There shall be no coinsurance penalty provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the PROJECT; (4) transit coverage, including ocean marine coverage (unless insured by the supplier), with sub-limits sufficient to insure the full replacement value of any key equipment item; and (5) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site. Such insurance shall be on a form acceptable to CITY to ensure adequacy of terms and sublimits.

Proof of insurance. CONTRACTOR shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsement must be approved by CITY’s risk manager prior to commencement of performance. Current certification of

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insurance shall be kept on file with CITY at all times during the term of this AGREEMENT. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. CONTRACTOR shall procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONTRACTOR, his agents, representatives, employees or subcontractors. CONTRACTOR must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. CITY and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

CITY’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from CONTRACTOR payments. In the alternative, CITY may cancel this AGREEMENT.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’s risk manager.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONTRACTOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

Enforcement of contract provisions (non estoppel). CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.

Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess liability policies.

CITY’s right to revise requirements. The CITY reserves the right at any time during the term of the AGREEMENT to change the amounts and types of insurance required by giving the CONTRACTOR a ninety (90)-day advance written notice of such change. If such change results in substantial additional cost to the CONTRACTOR, the CITY and CONTRACTOR may renegotiate

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CONTRACTOR’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.

Timely notice of claims. CONTRACTOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONTRACTOR’s performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.

Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

30. Workers’ Compensation.
i. CONTRACTOR shall carry Workers’ Compensation Insurance and require all subcontractors to carry Workers’ Compensation Insurance as required by the Labor Code of the State of California. CONTRACTOR, by executing this AGREEMENT, hereby certifies:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this AGREEMENT.” ii. CONTRACTOR acknowledges that it is unlawful and a crime to intentionally make false statements about employees that misclassify their job duties to obtain lesser premium costs or for other improper purposes. CONTRACTOR agrees that if it makes false statements about its employees for the purpose of obtaining lower workers’ compensation premiums or for other unlawful purposes, it shall be considered a material breach of this AGREEMENT.

31. Bonds. Within the time period set forth in the CONTRACT DOCUMENTS and prior to commencing the Work on the Project, the CONTRACTOR shall file with the CITY good and sufficient labor and material payment bond (Payment Bond) and performance bond (Performance Bond) in the amount of one hundred percent (100%) of the Contract Sum covering performance of the Work other than the professional design services portion of the Work. The Performance Bond and Payment Bond shall be in the form required by the CONTRACT DOCUMENTS. The amounts of the Payment Bond and Performance Bond shall be increased as, when and in the amount of any Change Orders that are executed increasing the Contract Sum, the CONTRACTOR shall, upon request by the CITY, provide evidence of such increases. Should the Payment Bond or Performance Bond or any Surety on such bond become or be determined by the CITY to be insufficient, it shall be replaced within ten days by a bond that fully complies with the requirements of this Section. No further payments to the AGREEMENT for the Work performed shall be made or due until the CONTRACTOR has fully complied with the requirements of this Section.

Duration. The Payment Bond shall remain in effect until acceptance of the Work and payment of all stop notices and claims by the CONTRACTOR or the Subcontractors, of any Tier, have been satisfied. The Performance Bond shall remain in effect and assure faithful performance

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of all the CONTRACTOR’s obligations under the CONTRACT DOCUMENTS, including, without limitation, all obligations that survive final completion or termination, such as, but not limited to, CONTRACTOR’s warranty, commissioning and indemnity obligations.

Surety. At the time the AGREEMENT is signed and at all times thereafter until Final Payment has been made by the CITY, the Surety on the Payment Bond shall be an Admitted Surety and the Surety on the Performance Bond shall be a licensed Surety in good standing with the California Department of Insurance, and having an A.M. Best's Insurance Rating of not less than A-: VI.

Premiums. The premiums for all bonds are included in the Contract Sum and shall be paid by the CONTRACTOR.

Obligee. The Payment Bond and Performance Bond shall each name the CITY as obligee.

All bonds purchased by the Subcontractors shall name the CONTRACTOR and the CITY as dual obligees.

No exoneration. Changes, Change Orders, Unilateral Change Orders, Field Orders, Modifications and adjustments to the Contract Sum or Contract Time shall in no way release or exonerate the CONTRACTOR or its Surety from their obligations, and notice thereof shall be waived by the Surety. The foregoing provision shall be included in the terms of the Payment Bond, Performance Bond and any bonds obtained by the Subcontractors.

Communications. The CITY shall have the right to communicate with the CONTRACTOR’s sureties with respect to matters that are related to the CONTRACTOR’s performance of its obligations under the CONTRACT DOCUMENTS. Such communications shall not create, or be interpreted as creating, any contractual relationship between the CITY and the Surety.

No limitation. The requirements of this Section pertaining to the Performance Bond and the Payment Bond shall be without limitation to any other obligations the CONTRACTOR may have under Applicable Law to provide bonding for the benefit of and to assure payment to the Subcontractors or Subconsultants performing the Work for the Project.

TERMINATION

32. Termination.

A. If CONTRACTOR should fail to comply with any of the provisions hereof, or in the event CONTRACTOR should become the subject of a proceeding under state or federal law for relief of debtors, or if CONTRACTOR makes an assignment for the benefit of creditors, CITY shall have the right to hold CONTRACTOR in default and cancel this AGREEMENT in whole or in part.

B. Should CONTRACTOR, at any time during the progress of the work, refuse or neglect to supply sufficient material or labor, or fail in compliance with any provision of this AGREEMENT, CITY shall have the right, without prejudice to any other right or remedy it may have, to provide such materials and labor, or make good such deficiencies as CITY may deem expedient after three (3) days notice in writing, delivered or mailed to CONTRACTOR at his last address on file with CITY, and CONTRACTOR shall be liable for the cost and expense thereof which may be deducted by CITY from any money due or that may become due CONTRACTOR.

C. Without limiting any rights which CITY may have by reason of any default by CONTRACTOR hereunder, CITY reserves the right to terminate this AGREEMENT in whole or in