Laguna Hills City Council
February 24, 2026

City of Laguna Hills

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50 B. Consultant shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner.

C. No City benefits shall be available to Consultant, its officers, employees, or agents, in connection with the performance of any Work or Services under this Agreement. Except for professional fees paid to Consultant as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for the performance of any Work or Services under this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, or agents, for injury or sickness arising out of performing any Work or Services hereunder. If for any reason any court or governmental agency determines that the City has financial obligations, other than pursuant to Section 2 and Subsection 1.8 herein, of any nature relating to salary, taxes, or benefits of Consultant’s officers, employees, representatives, agents, or subconsultants or subcontractors, Consultant shall defend, indemnify, and hold harmless City from and against all such financial obligations.

4.5 PERS Eligibility & Indemnification.

A. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing any Work or Services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employee Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

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

4.6 Cost Principles and Administrative Requirements.

A. Consultant agrees that 48 CFR Part 31, Contract Cost Principles and Procedures, shall be used to determine the allowability of individual terms of cost.

B. Consultant also agrees to comply with federal procedures in accordance with 2 CFR Part 200, Cost Principles, and Audit Requirements for Federal Awards.

C. Any costs for which payment has been made to Consultant that are determined by subsequent audit to be unallowable under 2 CFR Part 200 or 48 CFR Part 31 are subject to repayment by Consultant to City.

D. When Consultant or Subconsultant is a Non-Profit Organization or an Institution of Higher Education, the Cost Principles for Title 2 CFR Part 200 shall apply.

4.7 Equipment Purchase.

A. Prior authorization in writing by City’s Contract Officer shall be required before Consultant enters into any unbudgeted purchase order, or subcontract exceeding five thousand dollars ($5,000) for supplies,

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51 equipment, or Consultant Services. Consultant shall provide an evaluation of the necessity or desirability of incurring such costs.

B. For purchase of any item, service or consulting work not covered in Consultant’s Schedule of Compensation/Fees and exceeding five thousand dollars ($5,000), with prior authorization by City’s Contract Officer, three competitive quotations must be submitted with the request, or the absence of proposals must be adequately justified.

C. Any equipment purchased with funds provided under the terms of this Agreement is subject to the following:

1. Consultant shall maintain an inventory of all nonexpendable property. Nonexpendable property is defined as having a useful life of at least two (2) years and an acquisition cost of five thousand dollars ($5,000) or more. If the purchased equipment needs replacement and is sold or traded in, City shall receive a proper refund or credit at the conclusion of the Agreement, or if the Agreement is terminated, Consultant may either keep the equipment and credit City in an amount equal to its fair market value, or sell such equipment at the best price obtainable at a public or private sale, in accordance with established City procedures, and credit City in an amount equal to the sales price. If Consultant elects to keep the equipment, fair market value shall be determined at Consultant’s expense, on the basis of a competent independent appraisal of such equipment. Appraisals shall be obtained from an appraiser mutually agreeable to by City and Consultant, if it is determined to sell the equipment, the terms and conditions of such sale must be approved in advance by City.

2. Regulation 2 CFR Part 200 requires a credit to federal funds when participating equipment with a fair market value greater than five thousand dollars ($5,000) is credited to the Project.

4.8 Inspection of Work. Consultant, subconsultant(s), and subcontractor(s) shall permit City, the State, and the FHWA, if federal participating funds are used in this Agreement, to review and inspect the Project activities and files at all reasonable times during the performance period of this Agreement.

4.9 Safety.

A. Consultant shall comply with OSHA regulations applicable to Consultant regarding necessary safety equipment or procedures. Consultant shall comply with safety instructions issued by City’s Public Works Director/City Engineer and other City representatives. Consultant’s personnel shall wear hard hats and safety vests at all times while working on the construction Project site.

B. Pursuant to the authority contained in Section 591 of the Vehicle Code, City has determined that such areas are within the limits of the Project and are open to public traffic. Consultant shall comply with all of the requirements set forth in Divisions 11, 12, 13, 14, and 15 of the Vehicle Code. Consultant shall take all reasonably necessary precautions for safe operation of its vehicles and the protection of the traveling public from injury and damage from such vehicles.

C. Any subcontract entered into as a result of this Agreement shall contain all of the provisions of this Section.

City of Laguna Hills

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52 5. INSURANCE

5.1 Compliance with Insurance Requirements. Consultant shall obtain, maintain, and keep in full force and effect during the term of this Agreement, at its sole cost and expense, and in a form and content satisfactory to City, all insurance required under this section. Consultant shall not commence any Work or Services under this Agreement unless and until it has provided evidence satisfactory to City that it has secured all insurance required under this section. If Consultant’s existing insurance policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.

5.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement, and without limiting the indemnity provisions set forth in this Agreement, Consultant shall obtain and maintain in full force and effect during the term of this Agreement, including any extension thereof, the following policies of insurance:

A. Commercial General Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Commercial General Liability Insurance written on an occurrence basis with limits of at least one million dollars ($1,000,000.00) per occurrence, two million dollars ($2,000,000.00) in the general aggregate, and one million dollars ($1,000,000.00) for products and completed operations. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement.

B. Automobile Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Automobile Liability Insurance written on a per occurrence basis with limits of at least one million dollars ($1,000,000.00) combined limit for each occurrence covering bodily injury and property damage. The policy shall specifically include coverage for owned, non-owned, leased, and hired automobiles.

C. Workers’ Compensation Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Workers’ Compensation Insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California.

Consultant agrees to waive and obtain endorsements from its workers’ compensation insurer waiving all subrogation rights under its workers’ compensation insurance policy against the City, its officials, officers, employees, agents and volunteers, and to require each of its subconsultants and subcontractors, if any, to do likewise under their workers’ compensation insurance policies. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Employer’s Liability Insurance written on a per occurrence basis with limits of at least one million dollars ($1,000,000.00) per accident for bodily injury or disease.

D. Professional Liability (Errors & Omissions) Insurance. Consultant shall obtain and maintain in full force and effect throughout the term of this Agreement, a policy of Professional Liability or Errors and Omissions Insurance appropriate to Consultant’s profession with limits of at least two million dollars ($2,000,000.00). Covered professional services shall specifically include all Work or Services to be performed under the Agreement and delete any exclusions that may potentially affect the Work or Services to be performed under this Agreement.

1. Intentionally omitted.

2. If the policy of insurance is written on a “claims-made” basis, the City may require that the policy be continued in full force and effect at all times during the term of this Agreement, and for a period of three

City of Laguna Hills

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53 (3) years from the date of the completion of the Work or Services provided hereunder. In the event of termination of the policy during this period, Consultant shall obtain continuing insurance coverage for the prior acts or omissions of Consultant during the course of performing the Work or Services under the terms of this Agreement. The coverage shall be evidenced by either a new policy evidencing no gap in coverage, or by obtaining separate extended “tail” coverage with the present or new carrier or other insurance arrangements providing for complete coverage, either of which shall be subject to the written approval by the City.

3. In the event the policy of insurance is written on an “occurrence” basis, the policy shall be continued in full force and effect during the term of this Agreement, or until completion of the Work or Services provided for in this Agreement, whichever is later. In the event of termination of the policy during this period, new coverage shall immediately be obtained to ensure coverage during the entire course of performing the Work or Services under the terms of this Agreement.

5.3 Acceptability of Insurers. Insurance required by this section shall be issued by a licensed company authorized to transact business in the state by the Department of Insurance for the State of California with a current rating of A-:VII or better (if an admitted carrier), or a current rating of A:X or better (if offered by a non-admitted insurer listed on the State of California List of Approved Surplus Lines Insurers (LASLI), by the latest edition of A.M. Best’s Key Rating Guide, except that the City will accept workers’ compensation insurance from the State Compensation Fund. In the event the City determines that the Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City. Consultant shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified herein.

5.4 Insurance Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for written approval. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:

A. The policy or policies of insurance required by this section for Commercial General Liability and Automobile Liability Insurance shall be endorsed to provide the following:

1. Additional Insured: The City, its officials, officers, employees, agents and volunteers, shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement; and

2. Additional Insured Endorsements: Additional insured endorsements shall not (1) be restricted to “ongoing operations”, (2) exclude “contractual liability”, (3) restrict coverage to “sole” liability of Consultant, or (4) contain any other exclusions contrary to the Agreement; and, the coverage shall contain no special limitations on the scope of protection afforded to additional insureds.

3. Notice: The policy or policies of insurance required by this section for Commercial General Liability and Automobile Liability Insurance shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or modified, or reduced in coverage or in limits, except after thirty (30) days prior written notice by First Class U.S. Mail, postage-prepaid, has been provided to the City. Notwithstanding the foregoing, if coverage is to be suspended, voided, or cancelled because of Consultant’s failure to pay the insurance premium, the notice provided to City shall be by ten (10) days prior written notice.

City of Laguna Hills

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54 B. For all policies of Commercial General Liability Insurance, Consultant shall provide endorsements for ongoing operations and completed operations to effectuate this requirement.

5.5 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City in advance and shall protect the City, its officials, officers, employees, agents and volunteers, in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

5.6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability Insurance and Automobile Liability Insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents or volunteers, shall not contribute with this primary insurance.

Policies shall contain or be endorsed to contain such provisions.

5.7 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability Insurance shall contain or be endorsed to waive subrogation against the City, its officials, officers, employees, agents and volunteers, or shall specifically allow Consultant or others providing insurance evidence in compliance with the requirements set forth in this section to waive their right to recovery prior to a loss. Consultant hereby agrees to waive its own right of recovery against the City, its officials, officers, employees, agents and volunteers, and Consultant hereby agrees to require similar written express waivers and insurance clauses from each of its subconsultants or subcontractors.

5.8 Evidence of Coverage. Concurrently with the execution of the Agreement, Consultant shall deliver certificates of insurance together with original endorsements affecting each of the insurance policies required by this section. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for written approval. The certificates of insurance and original endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. Consultant shall promptly furnish, at City’s request, copies of actual policies including all declaration pages, endorsements, exclusions and any other policy documents City requires to verify coverage.

5.9 Requirements Not Limiting. Requirement of specific coverage or minimum 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. Nothing in this section shall be construed as limiting in any way the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property.

5.10 Enforcement of Agreement (Non-Estoppel). Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of any non-compliance with any of the insurance requirements set forth in this section imposes no additional obligation on the City nor does it waive any rights hereunder.

5.11 Insurance for Subconsultants. Consultant shall either: (1) include all subconsultants or subcontractors engaged in any Work or Services for Consultant relating to this Agreement as additional named

City of Laguna Hills

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55 insureds under the Consultant’s insurance policies, or (2) Consultant shall be responsible for causing its subconsultants or subcontractors to procure and maintain the appropriate insurance in compliance with the terms of the insurance requirements set forth in this section, including adding the City, its officials, officers, employees, agents and volunteers, as additional insureds to their respective policies. All policies of Commercial General Liability Insurance provided by Consultant’s subconsultants or subcontractors performing any Work or Services related to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers, as additional insureds. Consultant shall not allow any subconsultant or subcontractor to commence any Work or Services relating to this Agreement unless and until it has provided evidence satisfactory to City that the subconsultant or subcontractor has secured all insurance required under this section.

5.12 Other Insurance Requirements. The following terms and conditions shall apply to the insurance policies required of Consultant pursuant to this Agreement:

A. Consultant shall provide immediate written notice to City if (1) any of the insurance policies required herein are terminated, cancelled or suspended, (2) the limits of any of the insurance coverages required herein are reduced, or (3) the deductible or self-insured retention is increased.

B. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage.

C. None of the insurance coverages required herein will be in compliance with the requirements of this section if they include any limiting endorsement which substantially impairs the coverages set forth herein (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City and approved in writing.

D. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Consultant’s obligation to ensure timely compliance with all insurance submittal requirements as provided herein.

E. Consultant agrees to ensure that subconsultants and subcontractors, if any, and any other parties involved with the Project who are brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the Project will be submitted to the City for review.

F. Consultant agrees to provide immediate written notice to City of any claim, demand or loss against Consultant arising out of the Work or Services performed under this Agreement and for any other claim, demand or loss which may reduce the insurance available to pay claims, demands or losses arising out of this Agreement.

6. INDEMNIFICATION
To the fullest extent permitted by law, Consultant shall defend (at Consultant’s sole cost and expense with legal counsel reasonably acceptable to City), indemnify and hold the City, its elected and appointed officials, officers,

City of Laguna Hills

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56 employees, agents and volunteers, free and harmless from any and all claims, demands, orders, causes of action, costs, expenses, liabilities, losses, penalties, judgments, arbitration awards, settlements, damages or injuries of any kind, in law or in equity, including but not limited to property or persons, including wrongful death, (collectively “Claims”) in any manner arising out of, pertaining to, related to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officers, directors, employees, subcontractors, consultants or agents, in connection with Consultant’s performance under this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent that the Work or Services performed by Consultant are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Consultant’s indemnification obligation or other liability hereunder. Notwithstanding the foregoing, such obligation to defend, hold harmless, and indemnify the City, its elected and appointed officials, officers, employees, agents, and volunteers, shall not apply to such claims or liabilities arising from the sole or active negligence or willful misconduct of City.

7. REPORTS AND RECORDS

7.1 Accounting Records. Consultant shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement. Consultant shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and to enable the Contract Officer to evaluate the performance of such Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

7.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require.

Consultant hereby acknowledges that the City is greatly concerned about the cost of the Work and Services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Work or Services contemplated herein or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of such fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed.

7.3 Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. Consultant shall ensure that all of its subconsultants and subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom.

7.4 Release of Documents. All drawings, specifications, reports, records, documents, and other materials

City of Laguna Hills

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57 prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. All information gained by Consultant in the performance of this Agreement shall be considered confidential and shall not be released by Consultant without City’s prior written authorization.

7.5 Audit and Inspection of Records.

A. After receipt of reasonable notice and during the regular business hours of City, Consultant shall provide City, or other agents of City, such access to Consultant’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, documents, and activities directly related to Consultant’s performance under this Agreement.

B. For the purpose of determining compliance with Government Code Section 8546.7, Consultant, subconsultants, subcontractors, and City shall maintain all books, documents, papers, accounting records, Independent certified public accountants (CPA) Audited Indirect Cost Rate workpapers, and other evidence pertaining to the performance of the Agreement, including, but not limited to, the costs of administering the Agreement. All parties, including the Consultant’s Independent CPA, shall make such workpapers and materials available at their respective offices at all reasonable times during the Agreement period and for three (3) years from the date of final payment under the Agreement, and records for real property and equipment acquired with federal funds must be retained for three (3) years after final disposition. City, State of California, California State Auditor, Caltrans Auditor, FHWA, or any duly authorized representative of the Federal Government having jurisdiction under federal laws or regulations (including the basis of federal funding in whole or in part) shall have access to any books, records, and documents of Consultant, subconsultants, and the Consultant’s Independent CPA, that are pertinent to the Agreement for audits, examinations, workpaper review, excerpts, and transactions, and copies thereof shall be furnished if requested without limitation.

7.6 Audit Review Procedures.

A. Any dispute concerning a question of fact arising under an interim or post audit of this Agreement that is not disposed of by agreement, shall be reviewed by the City Public Works Director/City Engineer and the City Finance Director.

B. Not later than thirty (30) calendar days after issuance of the final audit report, Consultant may request a review by the City Manager or City Finance Director of unresolved audit issues. The request for review will be submitted in writing.

C. Neither the pendency of a dispute nor its consideration by City will excuse Consultant from full and timely performance, in accordance with the terms of this Agreement.

D. Consultant, subcontractor, and subconsultant agreements, including cost proposals and Indirect Cost Rates (ICR), may be subject to audits or reviews such as, but not limited to, an Agreement audit, an incurred cost audit, an ICR Audit, or a CPA ICR audit work paper review. If selected for audit or review, the Agreement, Schedule of Compensation/Fees, and ICR and related work papers, if applicable, will be reviewed to verify compliance with 48 CFR Part 31 and other related laws and regulations. In the instances of a CPA ICR audit work paper review, it is Consultant’s responsibility to ensure federal, City, or local government officials are allowed full access to the CPA’s work papers including making copies as necessary. The Agreement, cost proposal, and ICR shall be adjusted by Consultant and approved by City’s Contract Officer to conform to the audit or review

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58 recommendations. Consultant agrees that individual terms of costs identified in the audit report shall be incorporated into the agreement by this reference if directed by City at its sole discretion. Refusal by Consultant to incorporate audit or review recommendations, or to ensure that the federal, City, or local governments have access to CPA work papers, will be considered a breach of this Agreement terms and cause for termination of the Agreement and disallowance of prior reimbursed costs.

E. Consultant’s Schedule of Compensation/Fees may be subject to a CPA ICR Audit Work Paper Review and/or audit by the Independent Office of Audits and Investigations (IOAI). IOAI, at its sole discretion, may review and/or audit and approve the CPA ICR documentation. The Schedule of Compensation/Fees shall be adjusted by the Consultant and approved by City’s Contract Officer to conform to the Work Paper Review recommendations included in the management letter or audit recommendations included in the audit report. Refusal by the Consultant to incorporate the Work Paper Review recommendations included in the management letter or audit recommendations included in the audit report will be considered a breach of the Agreement terms and cause for termination of the Agreement and disallowance of prior reimbursed costs.

1. During IOAI’s review of the ICR audit work papers created by the Consultant’s independent CPA, IOAI will work with the CPA and/or Consultant toward a resolution of issues that arise during the review. Each Party agrees to use its best efforts to resolve any audit disputes in a timely manner. If IOAI identifies significant issues during the review and is unable to issue a cognizant approval letter, City will reimburse the Consultant at an accepted ICR until a FAR (Federal Acquisition Regulation) compliant ICR (e.g. 48 CFR Part 31; GAGAS (Generally Accepted Auditing Standards)); CAS (Cost Accounting Standards), if applicable; in accordance with procedures and guidelines of the American Association of State Highways and Transportation Officials (AASHTO) Audit Guide; and other applicable procedures and guidelines}is received and approved by IOAI. Accepted Rates will be as follows:
a. If the proposed rate is less than one hundred fifty percent (150%), the accepted rate reimbursed will be ninety percent (90%) of the proposed rate. b. If the proposed rate is between one hundred fifty percent (150%) and two hundred percent (200%), the accepted rate will be eighty-five percent (85%) of the proposed rate. c. If the proposed rate is greater than two hundred percent (200%), the accepted rate will be seventy-five percent (75%) of the proposed rate.

2. If IOAI is unable to issue a cognizant letter per subsection E.1. above, IOAI may require Consultant to submit a revised independent CPA-audited ICR and audit report within three (3) months of the effective date of the management letter. IOAI will then have up to six (6) months to review the Consultant’s and/or the independent CPA’s revisions.

3. If Consultant fails to comply with the provisions of this subsection E, or if IOAI is still unable to issue a cognizant approval letter after the revised independent CPA audited ICR is submitted, overhead cost reimbursement will be limited to the accepted ICR that was established upon initial rejection of the ICR and set forth in subsection E.1. above for all rendered services. In this event, this accepted ICR will become the actual and final ICR for reimbursement purposes under this Agreement.

4. Consultant may submit to City final invoice only when all of the following items have occurred: (1) IOAI accepts or adjusts the original or revised independent CPA audited ICR; (2) all work under this

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59 Agreement has been completed to the satisfaction of City; and (3) IOAI has issued its final ICR review letter. The Consultant must submit its final invoice to City no later than sixty (60) calendar days after occurrence of the last of these items. The accepted ICR will apply to this Agreement and all other agreements executed between City and the Consultant, either as a prime or subconsultant, with the same fiscal period ICR.

8. ENFORCEMENT OF AGREEMENT

8.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such County, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

8.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

8.3 Termination. City may terminate this Agreement for any reason, with or without cause, upon giving Consultant thirty (30) days written notice. Upon such notice, City shall pay Consultant for Services performed through the date of termination. Upon receipt of such notice, Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. Thereafter, Consultant shall have no further claims against the City under this Agreement. Upon termination of the Agreement pursuant to this section, Consultant shall submit to the City an invoice for work and services performed prior to the date of termination. In addition, Consultant reserves the right to terminate this Agreement at any time upon sixty (60) days written notice to the City, except that where termination is due to material default by the City, the period of notice may be such shorter time as the Consultant may determine.

8.4 Default of Consultant.

A. Consultant’s failure to comply with any provision of this Agreement shall constitute a default.

B. If the City Manager, or City Manager’s designee, determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Consultant in writing of such default. Consultant shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Consultant fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Consultant shall be liable for any and all reasonable costs incurred by City as a result of such default.

Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to Section 8.3.

C. If termination is due to the failure of the Consultant to fulfill its obligations under this

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60 Agreement, City may, after compliance with the provisions of Section 8.4(B), take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the Maximum Contract Amount (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure to withhold payments to Consultant shall not limit Consultant’s liability for completion of the Services as provided herein.

8.5 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions hereof.

8.6 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

8.7 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

8.8 Attorneys’ Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses, including but not limited to reasonable attorneys’ fees, expert witness fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding.

9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

9.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by the City or for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Conflict of Interest.

A. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his or her financial interest or the financial interest of any corporation, partnership, or association in which they are, directly or indirectly, interested in violation of any state statute or regulation. Consultant represents and warrants that

City of Laguna Hills

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61 it has not paid or given and will not pay or give any third party any money or other consideration in exchange for obtaining this Agreement.

B. During the term of this Agreement, Consultant shall disclose any financial, business, or other relationship with City that may have an impact upon the outcome of this Agreement, or any ensuing City construction project. Consultant shall also list current clients who may have a financial interest in the outcome of this Agreement, or any ensuing City construction project, which will follow.

C. Consultant certifies that it has disclosed to City any actual, apparent, or potential conflicts of interest that may exist relative to the services to be provided pursuant to this Agreement. Consultant agrees to advise City of any actual, apparent or potential conflicts of interest that may develop subsequent to the date of execution of this Agreement. Consultant further agrees to complete any statements of economic interest if required by either City ordinance or State law.

D. Consultant hereby certifies that it does not now have, nor shall it acquire any financial or business interest that would conflict with the performance of Work or Services under this Agreement.

E. Consultant hereby certifies that Consultant or any subconsultant and any firm affiliated with Consultant or subconsultant that bids on any construction contract or on any agreement to provide construction inspection for any construction project resulting from this Agreement, has established necessary controls to ensure a conflict of interest does not exist. An affiliated firm is one, which is subject to the control of the same persons, through joint ownership or otherwise.

9.3 Covenant Against Discrimination.

A. In connection with its performance under this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, disability, medical condition, religion, color, sex, sexual orientation, age, marital status, ancestry, or national origin. Consultant shall ensure that applicants are employed, and that employees are treated during their employment, without regard to their race, disability, medical condition, religion, color, sex, sexual orientation, age, marital status, ancestry, or national origin. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

B. During the performance of this Agreement, Consultant and its subconsultants and subcontractors shall not deny the Agreement’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of race, color, ancestry, religious creed, national origin, physical disability, mental disability, medical condition, age, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Consultant, subconsultants, and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.

C. Consultant, subconsultants, and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 et seq.), applicable regulations promulgated thereunder (2 CCR Section 7285 et seq.), the provisions of Government Code Sections 11135–11139.5, and any

City of Laguna Hills

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62 regulations or standards adopted by City to implement such articles. The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a)–(f) are set forth in 2 CCR Sections 8100–8504 and are incorporated into this Agreement by reference and made a part hereof as if set forth in full.

D. Consultant shall permit access by representatives of the Department of Fair Employment and Housing and City upon reasonable notice at any time during the normal business hours, but in no case less than twenty-four (24) hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or City shall require to ascertain compliance with this clause.

E. Consultant and its subconsultants and subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.

F. Consultant shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.

G. Consultant, with regard to the work performed under this Agreement, shall act in accordance with Title VI of the Civil Rights Act of 1964 (42 U.S.C. Section 2000d et seq.). Title VI provides that the recipients of federal assistance will implement and maintain a policy of nondiscrimination in which no person in the United States shall, on the basis of race, color, national origin, religion, sex, age, disability, be excluded from participation in, denied the benefits of or subject to discrimination under any program or activity by the recipients of federal assistance or their assignees and successors in interest.

H. Consultant shall comply with regulations relative to nondiscrimination in federally-assisted programs of the U.S. Department of Transportation (DOT) (49 CFR Part 21 – Effectuation of Title VI of the Civil Rights Act of 1964). Specifically, Consultant shall not participate either directly or indirectly in the discrimination prohibited by 49 CFR Section 21.5, including employment practices and the selection and retention of subconsultants and subcontractors.

I. Consultant, subrecipient, or subconsultant will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR Part 26 on the basis of race, color, sex, or national origin. In administering the City components of the DBE Program Plan, Consultant, subrecipient, or subconsultant will not, directly, or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE Program Plan with respect to individuals of a particular race, color, sex, or national origin.

J. Consultant agrees to comply with the Title VI Assurances, attached hereto as Exhibit “C”, which is hereby incorporated by reference and is made a part of this Agreement, and to include these assurances in all subcontracts at any tier.

9.4 Rebates, Kickbacks or Other Unlawful Consideration. Consultant warrants that this Agreement was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any City employee. For breach or violation of this warranty, City shall have the right, in its discretion, to terminate the Agreement without liability, to pay only for the value of the work actually performed, or to deduct from the Agreement price, or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.

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63 9.5 Contingent Fee. Consultant warrants, by execution of this Agreement, that no person or selling agency has been employed, or retained, to solicit or secure this Agreement upon an agreement or understanding, for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees, or bona fide established commercial or selling agencies maintained by Consultant for the purpose of securing business. For breach or violation of this warranty, City has the right to annul this Agreement without liability, pay only for the value of the Work actually performed, or in its discretion to deduct from the Maximum Contract Amount or consideration, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee.

10. MISCELLANEOUS PROVISIONS

10.1 Patent and Copyright Infringement.

A. To the fullest extent permitted by law, and in lieu of any other warranty by City or Consultant against patent or copyright infringement, statutory or otherwise, it is agreed that Consultant shall defend at its expense any claim or suit against City on account of any allegation that any item furnished under this Agreement, or the normal use or sale thereof arising out of the performance of this Agreement, infringes upon any presently existing U.S. letters patent or copyright and Consultant shall pay all costs and damages finally awarded in any such suit or claim, provided that Consultant is promptly notified in writing of the suit or claim and given authority, information and assistance at Consultant’s expense for the defense of same, and provided such suit or claim arises out of, pertains to, or is related to the alleged negligence, recklessness or willful misconduct of Consultant. However, Consultant will not indemnify City if the suit or claim results from: (1) City's alteration of a deliverable, such that City’s alteration of such deliverable created the infringement upon any presently existing U.S. letters patent or copyright; or (2) the use of a deliverable in combination with other material not provided by Consultant when it is such use in combination which infringes upon an existing U.S. letters patent or copyright.

B. Consultant shall have sole control of the defense of any such claim or suit and all negotiations for settlement thereof, Consultant shall not be obligated to indemnify City under any settlement made without Consultant’s consent or in the event City fails to cooperate in the defense of any suit or claim, provided, however, that such defense shall be at Consultant’s expense. If the use or sale of such item is enjoined as a result of the suit or claim, Consultant, at no expense to City, shall obtain for City the right to use and sell the item, or shall substitute an equivalent item acceptable to City and extend this patent and copyright indemnity thereto.

10.2 Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered, sent by registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission, and shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Notices or other communications shall be addressed as follows:

To City: City of Laguna Hills
Attention: City Manager
24035 El Toro Road
Laguna Hills, California 92653
Telephone: (949) 707-2600
To Consultant: _________________________

City of Laguna Hills

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64 _________________________
_________________________
_________________________
_________________________

10.3 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter hereof. No amendments or other modifications of this Agreement shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees.

10.4 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

10.5 Successors in Interest. This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.

10.6 Third Party Beneficiary. Nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party hereto.

10.7 Recitals. The above-referenced Recitals are hereby incorporated into the Agreement as though fully set forth herein and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.

10.8. Corporate Authority. Each of the undersigned represents and warrants that (i) the Party for which he/she is executing this Agreement is duly authorized and existing, (ii) he/she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he/she is signing, (iii) by so executing this Agreement, the Party for which he/she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which he/she is signing is bound.

10.9 Prevailing Wages. The City has determined that the Work and Services under this Agreement requires work of labor categories which are subject to Prevailing Wage Laws identified in the State of California Labor Code. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. Consultant agrees to fully comply with all applicable federal and state labor laws (including, without limitation, the Prevailing Wage Laws). It is agreed by the Parties that, in connection with the Work or Services provided pursuant to this Agreement, Consultant shall bear all risks of payment or non-payment of prevailing wages under California law, and Consultant hereby agrees to defend, indemnify, and hold the City, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. The foregoing indemnity shall survive termination of this

City of Laguna Hills

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65 Agreement. Consultant understands and agrees to comply with the following California Labor Code compliance conditions [Labor Code Sections 1720 et seq., 1813, 1860, 1861, 3700]:

A. Neither Consultant nor any subconsultant may be awarded an agreement containing public work elements unless registered with the Department of Industrial Relations (DIR) pursuant to Labor Code Section 1725.5. Registration with DIR must be maintained throughout the entire term of this Agreement, including any subsequent amendments.

B. The Consultant shall comply with all of the applicable provisions of the California Labor Code requiring the payment of prevailing wages. The General Prevailing Wage Rate Determinations applicable to work under this Agreement are available and on file with the Department of Transportation's Regional/District Labor Compliance Officer (https://dot.ca.gov/programs/construction/labor-compliance). These wage rates are made a specific part of this Agreement by reference pursuant to Labor Code Section 1773.2 and will be applicable to Work performed at a construction project site. Prevailing wages will be applicable to all inspection work performed at City’s construction sites, at City facilities, and at off-site locations that are set up by the construction contractor or one of its subcontractors solely and specifically to serve City projects. Prevailing wage requirements do not apply to inspection work performed at the facilities of vendors and commercial materials suppliers that provide goods and services to the general public.

C. General Prevailing Wage Rate Determinations applicable to this project may also be obtained from the Department of Industrial Relations website at http://www.dir.ca.gov.

D. Payroll Records

1. Consultant and all subconsultants shall keep accurate certified payroll records and supporting documents as mandated by Labor Code Section 1776 and as defined in 8 CCR Section 16000 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 the Consultant or subconsultant in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
a. The information contained in the payroll record is true and correct. b. The employer has complied with the requirements of Labor Code Sections 1771, 1811, and 1815 for any work performed by his or her employees on the public works project.

2. The payroll records enumerated under paragraph (1) above shall be certified as correct by the Consultant under penalty of perjury. The payroll records and all supporting documents shall be made available for inspection and copying by City representatives at all reasonable hours at the principal office of the Consultant. The Consultant shall provide copies of certified payrolls or permit inspection of its records as follows:
a. A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or the employee's authorized representative on request. b. A certified copy of all payroll records enumerated in paragraph (1) above, shall be made available for inspection or furnished upon request to a representative of City, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards of the Department of Industrial Relations.

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66 Certified payrolls submitted to City, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards shall not be altered or obliterated by the Consultant. c. The public shall not be given access to certified payroll records by the Consultant, except as permitted by law. The Consultant is required to forward any requests for certified payrolls to the City’s Contract Officer by both email and regular mail on the business day following receipt of the request.

3. Each Consultant shall submit a certified copy of the records enumerated in paragraph (1) above, to the entity that requested the records within ten (10) calendar days after receipt of a written request.

4. Any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by City shall be marked or obliterated in such a manner as to prevent disclosure of each individual's name, address, and social security number, unless fewer redactions are permitted by law. The name and address of the Consultant or Subconsultant performing the Work shall not be marked or obliterated.

5. The Consultant shall inform the City of the location of the records enumerated under paragraph (1) above, including the street address, city and county, and shall, within five (5) working days, provide a notice of a change of location and address.

6. The Consultant or Subconsultant shall have ten (10) calendar days in which to comply subsequent to receipt of written notice requesting the records enumerated in paragraph (1) above. In the event the Consultant or subconsultant fails to comply within the ten (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. Such penalties shall be withheld by City from payments then due. Consultant is not subject to a penalty assessment pursuant to this section due to the failure of a subconsultant to comply with this section.

E. When prevailing wage rates apply, the Consultant is responsible for verifying compliance with certified payroll requirements. Invoice payment will not be made until the invoice is approved by the City’s Contract Officer.

F. Penalty.

1. The Consultant and any of its subconsultants shall comply with Labor Code Sections 1774 and 1775. Pursuant to Labor Code Section 1775, the Consultant and any subconsultant shall forfeit to the City a penalty of not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of DIR for the work or craft in which the worker is employed for any public work done under the Agreement by the Consultant or by its Subconsultant in violation of the requirements of the Labor Code and in particular, Labor Code Sections 1770 to 1780, inclusive.

2. The amount of this forfeiture shall be determined by the Labor Commissioner and shall be based on consideration of mistake, inadvertence, or neglect of the Consultant or subconsultant in failing to pay the correct rate of prevailing wages, or the previous record of the Consultant or subconsultant in meeting their respective prevailing wage obligations, or the willful failure by the Consultant or subconsultant to pay the correct rates of prevailing wages. A mistake, inadvertence, or neglect in failing to pay the correct rates of prevailing wages is not excusable if the Consultant or subconsultant had knowledge of the obligations under the Labor Code. The

City of Laguna Hills

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67 Consultant is responsible for paying the appropriate rate, including any escalations that take place during the term of the Agreement.

3. In addition to the penalty and pursuant to Labor Code Section 1775, 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 be paid to each worker by the Consultant or subconsultant.

4. If a worker employed by a subconsultant on a public works project is not paid the general prevailing per diem wages by the subconsultant, the Consultant of the project is not liable for the penalties described above unless the Consultant had knowledge of that failure of the subconsultant to pay the specified prevailing rate of wages to those workers or unless the Consultant fails to comply with all of the following requirements:
a. The agreement executed between the Consultant and the subconsultant for the performance of work on public works projects shall include a copy of the requirements in Labor Code Sections 1771, 1775, 1776, 1777.5, 1813, and 1815.
b. The Consultant shall monitor the payment of the specified general prevailing rate of per diem wages by the subconsultant to the employees by periodic review of the certified payroll records of the subconsultant.
c. Upon becoming aware of the subconsultant’s failure to pay the specified prevailing rate of wages to the subconsultant’s workers, the Consultant shall diligently take corrective action to halt or rectify the failure, including but not limited to, retaining sufficient funds due the subconsultant for work performed on the public works project.
d. Prior to making final payment to the subconsultant for work performed on the public works project, the Consultant shall obtain an affidavit signed under penalty of perjury from the subconsultant that the subconsultant had paid the specified general prevailing rate of per diem wages to the subconsultant’s employees on the public works project and any amounts due pursuant to Labor Code Section 1813.

5. Pursuant to Labor Code Section 1775, the City shall notify the Consultant on a public works project within fifteen (15) calendar days of receipt of a complaint that a subconsultant has failed to pay workers the general prevailing rate of per diem wages.

6. If the City determines that employees of a subconsultant were not paid the general prevailing rate of per diem wages and if the City did not retain sufficient money under the Agreement to pay those employees the balance of wages owed under the general prevailing rate of per diem wages, the Consultant shall withhold an amount of moneys due the subconsultant sufficient to pay those employees the general prevailing rate of per diem wages if requested by City.

G. Hours of Labor. Eight (8) hours labor constitutes a legal day's work. The Consultant shall forfeit, as a penalty to the City, twenty-five dollars ($25) for each worker employed in the execution of the Agreement by the Consultant or any of its subconsultants for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular Sections 1810 to 1815 thereof, inclusive, except

City of Laguna Hills

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68 that work performed by employees in excess of eight (8) hours per day, and forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day and forty (40) hours in any week, at not less than one and one-half (1.5) times the basic rate of pay, as provided in Section 1815.

H. Employment of Apprentices.

1. Where either this Agreement or any subagreement exceeds thirty thousand dollars ($30,000), the Consultant and any subconsultants under him or her shall comply with all applicable requirements of Labor Code Sections 1777.5, 1777.6 and 1777.7 in the employment of apprentices.

2. Consultant and all subconsultants are required to comply with all Labor Code requirements regarding the employment of apprentices, including mandatory ratios of journey level to apprentice workers. Prior to commencement of work, Consultant and subconsultants are advised to contact the DIR Division of Apprenticeship Standards website at https://www.dir.ca.gov/das/, for additional information regarding the employment of apprentices and for the specific journey-to-apprentice ratios for the Agreement work. The Consultant is responsible for all subconsultants’ compliance with these requirements. Penalties are specified in Labor Code Section 1777.7.

I. Pursuant to California Labor Code Sections 1860 and 3700, Consultant will be required to secure the payment of compensation to its employees. By signing this Agreement, Consultant hereby certifies as follows:
“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.” J. Pursuant to California Labor Code Section 1771.1, Consultant and any subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the California Public Contract Code, or engage in the performance of any contract for public work on a public works project unless registered with the DIR and qualified to perform public work pursuant to California Labor Code Section 1725.2. It is not a violation of California Labor Code Section 1771.1 for an unregistered contractor to submit a bid that is authorized by California Business and Professions Code Section 7029.1 or by California Public Contract Code Section 10164 or 20103.5, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded. Consultant shall not perform any work under this Agreement with any subcontractor who is ineligible to perform work on the public works project pursuant to Section 1777.1 or 1777.7 of the California Labor Code.

10.10 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

10.11 Lobbying. Consultant shall comply with the lobbying requirements of 31 U.S.C. Section 1352. If the Maximum Contract Amount exceeds $150,000, Consultant certifies the following:

A. The Consultant certifies, to the best of his or her knowledge and belief, that:

1. No State, Federal, or City appropriated funds have been paid or will be paid, by or on behalf of the Consultant, to any person for influencing or attempting to influence an officer or employee of any local,

City of Laguna Hills

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69 State, or Federal agency, a Member of the State Legislature or United States Congress, an officer or employee of the Legislature or Congress, or any employee of a Member of the Legislature or Congress in connection with the awarding or making of this Agreement, or with the extension, continuation, renewal, amendment, or modification of this Agreement.

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this Agreement, the Consultant shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

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

C. The Consultant also agrees by signing this document that he or she shall require that the language of this certification be included in all lower tier subagreements, which exceed one hundred thousand dollars ($100,000), and that all such subrecipients shall certify and disclose accordingly.

10.12 Disadvantaged Business Enterprises (DBE) Participation.

A. Consultant, City, and any subconsultant(s) shall take necessary and reasonable steps to ensure that DBEs have opportunities to participate in the contract (49 CFR Part 26). To ensure equal participation of DBEs provided in 49 CFR Section 26.5, the City shows a contract goal for DBEs. Consultant shall make work available to DBEs and select work parts consistent with available DBE subconsultants and suppliers.

1. Consultant shall meet the DBE goal shown elsewhere in these special provisions or demonstrate that it has made adequate good faith efforts to meet this goal. It is Consultant’s responsibility to verify at date of proposal opening that the DBE firm is certified as a DBE by using the California Unified Certification Program (CUCP) database and possesses the most specific available North American Industry Classification System (NAICS) codes or work code applicable to the type of work the firm will perform on the contract. Additionally, Consultant is responsible to document the verification record by printing out the CUCP data for each DBE firm. A list of DBEs certified by the CUCP can be found at https://dot.ca.gov/programs/civil-rights/dbe-search.

2. All DBE participation will count toward the Caltrans’ federally mandated statewide overall DBE goal. Credit for materials or supplies Consultant purchases from DBEs counts towards the goal in the following manner:
a. One hundred percent (100%) counts if the materials or supplies are obtained from a DBE manufacturer.
b. Sixty percent (60%) counts if the materials or supplies are purchased from a DBE regular dealer.

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70 c. Only fees, commissions, and charges for assistance in the procurement and delivery of materials or supplies count if obtained from a DBE that is neither a manufacturer norregular dealer. 49 CFR Section 26.55 defines "manufacturer" and "regular dealer."

3. This Agreement is subject to 49 CFR Part 26, “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs.” Consultants who enter into a federally-funded Agreement will assist City in a good faith effort to achieve California’s statewide overall DBE goal.

B. There is no DBE goal for this Agreement. If a DBE subconsultant or subcontractor is unable to perform, Consultant must make a good faith effort to replace him/her with another DBE subconsultant or subcontractor, if the goal is not otherwise met.

C. Reserved.

D. Contract Assurance. Under 49 CFR Section 26.13(b), City, Consultant, subconsultants, or subcontractors shall not discriminate on the basis of race, color, national origin, or sex in the performance of this Agreement. Consultant shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of federal-aid agreements. Failure by Consultant to carry out these requirements is a material breach of this Agreement, which may result in the termination of this Agreement or such other remedy as City deems appropriate, which may include, but is not limited to: (1) withholding monthly progress payments; (2) assessing sanctions; (3) liquidated damages; and/or (4) disqualifying Consultant from future bidding as non-responsible.

E. Termination and Replacement of DBE Subconsultants. Consultant shall utilize the specific DBEs listed to perform the work and supply the materials for which each is listed unless Consultant or DBE subconsultant obtains the City’s written consent. Consultant shall not terminate or replace a listed DBE for convenience and perform the work with their own forces or obtain materials from other sources without authorization from the City.

1. Termination of DBE Subconsultants. After execution of the Agreement, termination of a DBE may be allowed for the following, but not limited to, justifiable reasons with prior written authorization from the City:
a. Listed DBE fails or refuses to execute a written contract based on plans and specifications for the Project.
b. The City stipulated that a bond is a condition of executing the subcontract and the listed DBE fails to meet the City’s bond requirements. c. Work requires a contractor’s license and listed DBE does not have a valid license under Contractors License Law.
d. Listed DBE fails or refuses to perform the work or furnish the listed materials (failing or refusing to perform is not an allowable reason to remove a DBE if the failure or refusal is a result of bad faith or discrimination).

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71 e. Listed DBE's work is unsatisfactory and not in compliance with the contract. f. Listed DBE is ineligible to work on the project because of suspension or debarment.
g. Listed DBE becomes bankrupt or insolvent or exhibits credit unworthiness. h. Listed DBE voluntarily withdraws with written notice from the contract. i. Listed DBE is ineligible to receive credit for the type of work required. j. Listed DBE owner dies or becomes disabled resulting in the inability to perform the work on the contract.
k. The City determines other documented good cause.

2. Consultant must use the following procedures to request the termination of a DBE or portion of a DBE’s work:
a. Send a written notice to the DBE of the Consultant’s intent to use other forces or material sources and include one or more justifiable reasons listed above.

Simultaneously send a copy of this written notice to the City. The written notice to the DBE must request they provide any response within five (5) business days to both the Consultant and the City by either acknowledging their agreement or documenting their reasoning as to why the use of other forces or sources of materials should not occur.
b. If the DBE does not respond within five (5) business days, Consultant may move forward with the request as if the DBE had agreed to Consultant’s written notice. c. Submit Consultant’s DBE termination request by written letter to the City and include:
i. One or more above listed justifiable reasons along with supporting documentation.
ii. Consultant’s written notice to the DBE regarding the request, including proof of transmission and tracking documentation of Consultant’s written notice. iii. The DBE's response to Consultant’s written notice, if received. If a written response was not provided, provide a statement to that effect.

3. The City shall respond in writing to Consultant’s DBE termination request within five (5) business days.

4. Replacement of DBE Subconsultants. After receiving the City’s written authorization of DBE termination request, Consultant must obtain the City’s written agreement for DBE replacement. Consultant

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72 must find or demonstrate Good Faith Efforts (GFEs) to find qualified DBE replacement firms to perform the work to the extent needed to meet the DBE commitment. The following procedures shall be followed to request authorization to replace a DBE firm:
a. Submit a request to replace a DBE with other forces or material sources in writing to the City which must include:
i. Description of remaining uncommitted work item made available for replacement DBE solicitation and participation.
ii. The proposed DBE replacement firm's business information, the work they have agreed to perform, and the following:

1. Description of scope of work and cost proposal

2. Proposed subcontract agreement and written confirmation of agreement to perform on the Contract

3. Reserved.
b. If Consultant has not identified a DBE replacement firm, submit documentation of Consultant’s GFEs to use DBE replacement firms within seven (7) days of City's authorization to terminate the DBE. Consultant may request the City's approval to extend this submittal period to a total of fourteen (14) days. Submit documentation of actions taken to find a DBE replacement firm, such as:
i. Search results of certified DBEs available to perform the original DBE work identified and or other work Consultant had intended to self-perform, to the extent needed to meet DBE commitment. ii. Solicitations of DBEs for performance of work identified. iii. Correspondence with interested DBEs that may have included contract details and requirements.
iv. Negotiation efforts with DBEs that reflect why an agreement was not reached.
v. If a DBE's quote was rejected, provide reasoning for the rejection, such as why the DBE was unqualified for the work, or why the price quote was unreasonable or excessive.
vi. Copies of each DBE's and non-DBE's price quotes for work identified, as the City may contact the firms to verify solicitation efforts and determine if the DBE quotes are substantially higher. vii. Additional documentation that supports Consultant’s GFE. c. The City shall respond in writing to Consultant’s DBE replacement request within five (5) business days.

City of Laguna Hills

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73 F. Commitment and Utilization.

1. The City’s DBE program must include a monitoring and enforcement mechanism to ensure that DBE commitments reconcile to DBE utilization.

2. The City shall request Consultant to:
a. Notify the City’s Contract Officer, or designee, of any changes to its anticipated DBE participation;
b. Provide this notification before starting affected work; and c. Maintain records including: (1) name and business address of each first-tier subconsultant; (2) name and business address of each DBE subconsultant, DBE vendor, andDBE trucking company, regardless of tier; and (3) date of payment and total amount paid to each business (see Caltrans Exhibit 9-P: Prompt Payment Certification, which is attached hereto as Exhibit “D” and incorporated herein by this reference).

3. If Consultant is a DBE consultant, then Consultant shall include the date of work performed by Consultant’s own forces and the corresponding value of the work.

4. If a DBE is decertified before completing its work, the DBE must notify Consultant in writing of the decertification date. If a business becomes a certified DBE before completing its work, the business must notify Consultant in writing of the certification date. Consultant shall submit the notifications to the City.

5. Reserved.

6. In the City’s reports of DBE participation to Caltrans, the City must display both commitments and attainments.

H. Commercially Useful Function.

1. DBEs must perform a Commercially Useful Function (CUF) under 49 CFR Section

26.55 when performing work or supplying materials listed on the DBE Commitment Form. The DBE value of work will only count toward the DBE commitment if the DBE performs a CUF. A DBE performs a CUF when it is responsible for execution of the work of the contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved. To perform a CUF, the DBE must also be responsible with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where applicable), and paying for the material itself.

2. Consultant must perform CUF evaluation for each DBE working on a federal-aid contract, with or without a DBE goal. Perform a CUF evaluation at the beginning of the DBE’s work and continue to monitor the performance of CUF for the duration of the project.

3. Consultant must provide written notification to the City at least fifteen (15) days in advance of each DBE's initial performance of work or supplying materials for the Contract. The notification must

City of Laguna Hills

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74 include the DBE's name, work the DBE will perform on the contract, and the location, date, and time of where their work will take place.

4. Within ten (10) days of a DBE initially performing work or supplying materials on the Contract, Consultant shall contact the LPA. Include the following information with the submittal:
a. Subcontract agreement with the DBE
b. Purchase orders
c. Bills of lading
d. Invoices
e. Proof of payment

5. Consultant must monitor all DBE’s performance of CUF by conducting quarterly evaluations and validations throughout their duration of work on the Contract. Consultant must submit to the City these quarterly evaluations and validations by the fifth (5th) of the month for the previous three months of work.

6. Consultant must notify the City immediately if they believe the DBE may not be performing a CUF.

7. The City will verify DBEs performance of CUF by reviewing Consultant’s submissions, submitted supporting information, field observations, and through any additional City evaluations. The City must evaluate DBEs and their CUF performance throughout the duration of a contract. The City will provide written notice to the Consultant and the DBE at least two (2) business days prior to any evaluation. The Consultant and the DBE must participate in the evaluation. Upon completing the evaluation, the City must share the evaluation results with the Consultant and the DBE. An evaluation could include items that must be remedied upon receipt. If the City determines the DBE is not performing a CUF, the Consultant must suspend performance of the noncompliant work.

8. Consultant and DBEs must submit any additional CUF related records and documents within five (5) business days of City’s request such as:
a. Proof of ownership or lease and rental agreements for equipment b. Tax records
c. Employee rosters
d. Certified payroll records
e. Inventory rosters

9. Failure to submit required DBE Commercially Useful Function Evaluation forms or requested records and documents can result in withholding of payment for the value of work completed by the DBE.

City of Laguna Hills

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75 10. If Consultant and/or the City determine that a listed DBE is not performing a CUF in performance of their DBE committed work, Consultant must immediately suspend performance of the noncompliant portion of the work. City may deny payment for the noncompliant portion of the work. City will ask the Consultant to submit a corrective action plan (CAP) to the City within five (5) days of the noncompliant CUF determination. The CAP must identify how the Consultant will correct the noncompliance findings for the remaining portion of the DBE's work. City has five (5) days to review the CAP in conjunction with the Consultant’s review. The Consultant must implement the CAP within five (5) days of the City's approval. The City will then authorize the prior noncompliant portion of work for the DBE's committed work.

11. If corrective actions cannot be accomplished to ensure the DBE performs a commercially useful function on the Contract, Consultant may have good cause to request termination of the DBE.

H. A DBE does not perform a CUF if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DBE participation. In determining whether a DBE is such an extra participant, examine similar transactions, particularly those in which DBEs do not participate.

I. If a DBE does not perform or exercise responsibility for at least thirty percent (30%) of the total cost of its contract with its own work force, or the DBE subcontracts a greater portion of the work of the contract than would be expected on the basis of normal industry practice for the type of work involved, it will be presumed that it is not performing a CUF.

J. Consultant shall maintain records of materials purchased or supplied from all subcontracts entered into with certified DBEs. The records shall show the name and business address of each DBE or vendor and the total dollar amount actually paid each DBE or vendor, regardless of tier. The records shall show the date of payment and the total dollar figure paid to all firms. DBE prime consultants shall also show the date of work performed by their own forces along with the corresponding dollar value of the work.

K. If a DBE subconsultant or subcontractor is decertified during the life of the Agreement, the decertified subconsultant/subcontractor shall notify Consultant in writing with the date of decertification. If a subconsultant or subcontractor becomes a certified DBE during the life of the Agreement, the subconsultant/subcontractor shall notify Consultant in writing with the date of certification. Any changes should be reported to City’s Contract Officer within thirty (30) days.

L. After submitting an invoice for reimbursement that includes a payment to a DBE, but no later than the then (10th) day of the following month, Consultant shall complete and email Caltrans Exhibit 9-P: Prompt Payment Certification (Exhibit “D”) to [email protected] with a copy to the City.

M. Any subcontract entered into as a result of this Agreement shall contain all of the provisions of this section.

N. Consultant acknowledges and agrees that at the time of contract award, the U.S. Department of Transportation issued an Interim Final Rule making significant changes to the DBE Regulations set forth in 49 CFR Part 26, and, as such, City and Consultant may be required to further revise this Agreement to comply with the DBE Regulations.

City of Laguna Hills

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76 10.13 Claims Filed by City’s Construction Contractor A. If claims are filed by City’s construction contractor relating to work performed by Consultant’s personnel, and additional information or assistance from Consultant’s personnel is required in order to evaluate or defend against such claims; City’s construction contract administration and legal staff and for testimony, if necessary, at depositions and at trial or arbitration proceedings.

B. Consultant’s personnel that City considers essential to assist in defending against construction contractor claims will be made available on reasonable notice from City. Consultation or testimony will be reimbursed at the same rates, including travel costs that are being paid for Consultant’s personnel services under this Agreement.

C. Services of Consultant’s personnel in connection with City’s construction contractor claims will be performed pursuant to a written contract amendment, if necessary, extending the termination date of this Agreement in order to resolve the construction claims.

10.14 National Labor Relations Board Certification. In accordance with Public Contract Code Section 10296, Consultant hereby states under penalty of perjury that no more than one (1) final unappealable finding of contempt of court by a federal court has been issued against Consultant within the immediately preceding two (2)- year period, because of Consultant’s failure to comply with an order of a federal court that orders Consultant to comply with an order of the National Labor Relations Board.

10.15 Prompt Payment.

A. Prompt Payment from City to Consultant. City shall make all project progress payment within thirty (30) days after receipt of an undisputed and properly submitted payment request from Consultant. If the City fails to pay promptly, the City shall pay interest to the Consultant, which accrues at the rate of ten percent (10%) per annum on the principal amount of a money judgment remaining unsatisfied and pro-rated as necessary. Upon receipt of the payment request, the City shall act in accordance with both of the following:

1. The City shall review each payment request as soon as feasible after receipt to verify it is a proper payment request.

2. The City must return any payment request deemed improper by the City to the Consultant as soon as feasible, but not later than seven (7) days, after receipt. A request returned pursuant to this section shall include documentation setting forth in writing the reasons why it is an improper payment request.

B. Prompt Payment Certification. Consultant shall submit Caltrans Exhibit 9-P: Prompt Payment Certification (Exhibit “D”) to the City by the fifteenth (15th) of the month following the month of any payment(s). If Consultant does not make any payments to subconsultants, supplier(s), and/or manufacturers, Consultant must report “no payments were made to subs this month” and write this visibly and legibly on Exhibit “D”.

C. City must verify all Caltrans Exhibit 9-P: Prompt Payment Certification (Exhibit “D”) information, monitor compliance with prompt payment requirements for DBE and non-DBE firms, and address any shortfalls to the DBE commitment and prompt payment issues until the end of the Project. City must email a copy of Caltrans Exhibit 9-P: Prompt Payment Certification (Exhibit “D”) to [email protected] before the end of the month after receiving the Exhibit 9-P from the Consultant.

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77 10.16 Clean Air Act and Clean Water Act. If the Maximum Contract Amount exceeds $150,000, Consultant shall comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, Title 42 of the United States Code (U.S.C.) Section 7401 et seq., and the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq. Consultant shall report any violations of use of prohibited facilities to the United States Environmental Protection Agency. Consultant agrees to include this requirement in each subcontract exceeding $150,000.

10.17 Recycled Products. If the Maximum Contract Amount exceeds $150,000, Consultant shall comply with all requirements of Section 6002 of the Resource Conservation and Recovery Act (RCRA), as amended, 42 U.S.C.

Section 6962, including, but not limited to, the regulatory provisions of 40 CFR Part 247, and Executive Order 12873, as they apply to the procurement of the items designated in subpart B of 40 CFR Part 247. Consultant agrees to include this requirement in all of its subcontracts.

10.18 Contract Work Hours and Safety Standards Act. If the Maximum Contract Amount exceeds $100,000, Consultant agrees to comply with the Federal Contract Work Hours and Safety Standards Act, 40 U.S.C.

Section 3701 et seq., as supplemented by Department of Labor regulations, 29 CFR Part 5. Under 40 U.S.C. Section 3702, Consultant shall compute the wages of every mechanic and laborer, including watchmen and guards, on the basis of a standard work week of forty (40) hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times (1.5x) the basic rate of pay for all hours worked in excess of forty (40) hours in the work week. The requirements of 40 U.S.C. Section 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.

10.19 Prohibition on contracting for certain telecommunications and video surveillance services or equipment.

A. Pursuant to Subsections 889(a)(l)(A)-(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232), Federal funds may not be used to procure or obtain, or to enter into a contract or extend or renew a contract with an entity that uses, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system, as defined. Consultant is prohibited from providing to City or the Federal Government any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system, unless an exception applies or the covered telecommunication equipment or services are covered by a waiver described in FAR §4.2104.

As described in Section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

1. For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).

2. Telecommunications or video surveillance services provided by such entities or using such equipment.

City of Laguna Hills

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78 3. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.

10.20 Disputes; Questions of Fact.

A. Prior to either Party commencing any legal action under this Agreement, the Parties agree to try in good faith, to settle any dispute amicably between them. If a dispute has not been settled after forty-five (45) days of good-faith negotiations and as may be otherwise provided herein, then either Party may commence legal action against the other.

B. Any dispute, other than audit, concerning only a question of fact arising under this Agreement that is not disposed of by agreement shall be decided by a committee consisting of City’s Contract Officer and City Manager, who may consider written or verbal information submitted by Consultant.

C. Not later than thirty (30) days after completion of all deliverables necessary to complete the plans, specifications and estimate, Consultant may request review by the City Council of unresolved claims or disputes, other than audit. The request for review will be submitted in writing.

D. Neither the pendency of a dispute nor its consideration by the committee will excuse Consultant from full and timely performance in accordance with the terms of this Agreement.

10.21 Caltrans Master Agreement and Program Supplement. Consultant acknowledges and agrees that the City and Consultant must comply with the Caltrans Master Agreement and Program Supplement applicable to the Project. Both the Master Agreement and Program Supplement contain requirements for all subcontractors and subconsultants performing services on this Project. As such, Consultant agrees to comply with all provisions applicable to subcontractors and subconsultants in the Master Agreement and Program Supplement, which are attached hereto as Exhibit “E” and hereby incorporated by reference and made part of this Agreement. This includes, but is not limited to, Master Agreement Article VI, Fiscal Provisions, and Article V, Audits, Third Party Contracting, Records Retention and Reports. Consultant shall also assist the City in complying with all Master Agreement and Program Supplement provisions applicable to the Services performed under this Agreement. [SIGNATURES ON NEXT PAGE]

4936-0319-1675 v.1
79 IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the date first written above.
“CITY”
City of Laguna Hills,
a California municipal corporation
,
City Manager
ATTEST:
(SEAL)
, City Clerk
APPROVED AS TO FORM:
,
City Attorney
“CONSULTANT”
By:
,
President

By:
,
Secretary

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION

ENHANCEMENTS PROJECT
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59 EXHIBIT “A”
CONSULTANT’S PROPOSAL/ SCOPE OF WORK
FOR

PROJECT NAME
DATED: ___________, 2025

SCOPE OF SERVICES FOR PROJECT

INCLUDING,

SCHEDULE OF PERFORMANCE
AND

SCHEDULE OF COMPENSATION/ FEES

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION

ENHANCEMENTS PROJECT
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60 EXHIBIT “B”
CITY’S REQUEST FOR PROPOSALS (RFP)

PROJECT NAME
DATED: ___________, 2025

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
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61 EXHIBIT “C”

TITLE VI ASSURANCES

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
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62 The U.S. Department of Transportation Order No.1050.2A requires all federal-aid Department of Transportation contracts between an agency and a consultant to contain the Appendices A and E of the Title VI Assurances, which are set forth herein. In addition, the Consultant must include the Title VI Assurances Appendices A and E, and, if applicable, Appendices B, C, and D in all subcontracts to perform work under the Agreement.

The clauses of Appendix B of this Assurance shall be included as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to City.

The clauses set forth in Appendix C and Appendix D of this Assurance shall be included as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the City with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
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63 APPENDIX A
During the performance of this Agreement, the Consultant, for itself, its assignees, and successors in interest (hereinafter collectively referred to as “CONSULTANT”) agrees as follows:
a. Compliance with Regulations: CONSULTANT shall comply with the regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter referred to as the REGULATIONS), which are herein incorporated by reference and made a part of this Agreement.
b. Nondiscrimination: CONSULTANT, with regard to the Work performed by it during the Agreement, shall not discriminate on the grounds of race, color, sex, national origin, religion, age, or disability in the selection and retention of sub-applicants, including procurements of materials and leases of equipment. CONSULTANT shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the agreement covers a program set forth in Appendix B of the Regulations.
c. Solicitations for Sub-agreements, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by CONSULTANT for work to be performed under a Sub-agreement, including procurements of materials or leases of equipment, each potential sub-applicant or supplier shall be notified by CONSULTANT of the CONSULTANT’S obligations under this Agreement and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin. d. Information and Reports: CONSULTANT shall provide all information and reports required by the Regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the recipient or FHWA to be pertinent to ascertain compliance with such Regulations or directives.

Where any information required of CONSULTANT is in the exclusive possession of anotherwho fails or refuses to furnish this information, CONSULTANT shall so certify to the recipient or FHWA as appropriate, and shall set forth what efforts CONSULTANT has made to obtain the information.
e. Sanctions for Noncompliance: In the event of CONSULTANT’s noncompliance with the nondiscrimination provisions of this Agreement, the City shall impose such Agreement sanctions as it or the FHWA may determine to be appropriate, including, but not limited to:
i. withholding of payments to CONSULTANT under the Agreement within a reasonable period of time, not to exceed 90 days; and/or
ii. cancellation, termination or suspension of the Agreement, in whole or in part.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
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64 f. Incorporation of Provisions: CONSULTANT shall include the provisions of paragraphs (1) through (6) in every sub-agreement, including procurements of materials and leases of equipment, unless exempt by the Regulations, or directives issued pursuant thereto.

CONSULTANT shall take such action with respect to any sub-agreement or procurement as the recipient or FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance, provided, however, that, in the event CONSULTANT becomes involved in, or is threatened with, litigation with a sub-applicant or supplier as a result of such direction, CONSULTANT may request the recipient enter into such litigation to protect the interests of the State, and, in addition, CONSULTANT may request the United States to enter into such litigation to protect the interests of the United States.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
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65 APPENDIX B

CLAUSES FOR DEEDS TRANSFERRING UNITED STATES PROPERTY
The following clauses will be included in deeds effecting or recording the transfer of real property, structures, or improvements thereon, or granting interest therein from the United States pursuant to the provisions of Assurance 4:

NOW THEREFORE, the U.S. Department of Transportation as authorized by law and upon the condition that the recipient will accept title to the lands and maintain the project constructed thereon in accordance with Title 23 U.S.C., the regulations for the administration of the preceding statute, and the policies and procedures prescribed by the FHWA of the U.S. Department of Transportation in accordance and in compliance with all requirements imposed by Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. § 2000d to 2000d-4), does hereby remise, release, quitclaim and convey unto the recipient all the right, title and interest of the U.S. Department of Transportation in and to said lands described in Exhibit A attached hereto and made a part hereof.

1. (HABENDUM CLAUSE)
TO HAVE AND TO HOLD said lands and interests therein unto the recipient and its successors forever, subject, however, to the covenants, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits and will be binding on the recipient, its successors and assigns. The recipient, in consideration of the conveyance of said lands and interest in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, that (1) no person will on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed [,] [and]* (2) that the recipient will use the lands and interests in lands and interest in lands so conveyed, in compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation, Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations and Acts may be amended[, and (3) that in the event of breach of any of the above-mentioned non-discrimination conditions, the Department will have a right to enter or re-enter said lands and facilities on said lands, and that above described land and facilities will thereon revert to and vest in and become the absolute property of the U.S. Department of Transportation and its assigns as such interest existed prior to this instruction].* (*Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to make clear the purpose of TitleVI.)

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
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66 APPENDIX C

CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE

ACTIVITY, FACILITY, OR PROGRAM
The following clauses will be included in deeds, licenses, leases, permits, or similar instruments entered into by the recipient pursuant to the provisions of Assurance 7(a):

A. The (grantee, lessee, permittee, etc. as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree [in the case of deeds and leases add “as a covenant running with the land”] that:

1. In the event facilities are constructed, maintained, or otherwise operated on the property described in this (deed, license, lease, permit, etc.) for a purpose for which a U.S.

Department of Transportation activity, facility, or program is extended or for another purpose involving the provision of similar services or benefits, the (grantee, licensee, lessee, permittee, etc.) will maintain and operate such facilities and services in compliance with all requirements imposed by the Acts and Regulations (as may be amended) such that no person on the grounds of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities.

B. With respect to licenses, leases, permits, etc., in the event of breach of any of the above Nondiscrimination covenants, the recipient will have the right to terminate the (lease, license, permit, etc.) and to enter, re-enter, and repossess said lands and facilities thereon, and hold the same as if the (lease, license, permit, etc.) had never been made or issued.* C. With respect to a deed, in the event of breach of any of the above Non-discrimination covenants, the recipient will have the right to enter or re-enter the lands and facilities thereon, and the above described lands and facilities will there upon revert to and vest in and become the absolute property of the recipient and its assigns.*
(*Reverter clause and related language to be used only when it is determined that such a clause is necessary to make clear the purpose of Title VI.)

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
4936-0319-1675 v.1
67 APPENDIX D

CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY ACQUIRED UNDER THE

ACTIVITY, FACILITY OR PROGRAM
The following clauses will be included in deeds, licenses, permits, or similar instruments/agreements entered into by the recipient pursuant to the provisions of Assurance 7(b):

A. The (grantee, licensee, permittee, etc., as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest ,and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add, “as a covenant running with the land”) that (1) no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land, and the furnishings of services thereon, no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits or, or otherwise be subjected to discrimination, (3) that the (grantee, licensee, lessee, permittee, etc.) will use the premises in compliance with all other requirements imposed by or pursuant to the Acts and Regulations, as amended, set forth in this Assurance.

B. With respect to (licenses, leases, permits, etc.) in the event of breach of any of the above of the above Non-discrimination covenants, the recipient will have the right to terminate the (license, permits, etc., as appropriate) and to enter or re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, permit, etc., as appropriate) had never been made or issued.*
C. With respect to deeds, in the event of breach of any of the above Non-discrimination covenants, the recipient will there upon revert to and vest in and become the absolute property of the recipient and its assigns.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
4936-0319-1675 v.1
68 APPENDIX E
During the performance of this Agreement, the CONSULTANT, for itself, its assignees, and successors in interest (hereinafter referred to as the “CONSULTANT”) agrees to comply with the following nondiscrimination statutes and authorities, including, but not limited to:

Pertinent Non-Discrimination Authorities:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), prohibits discrimination on the basis of sex;
• Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CR Part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), prohibits discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982, (49 U.S.C. § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not);
• Titles II and III of the Americans with Disabilities Act, which prohibit discrimination of the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation regulations 49 C.F.R. parts 37 and 38; • The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately highand adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
4936-0319-1675 v.1
69 • Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 etseq).

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS PROJECT 4936-0319-1675 v.1
70 EXHIBIT “D”
CALTRANS EXHIBIT 9-P: PROMPT PAYMENT CERTIFICATION

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS PROJECT 4936-0319-1675 v.1
71 Local Assistance Procedure Manual Exhibit 9-P
Prompt Payment Certification
EXHIBIT 9-P: PROMPT PAYMENT CERTIFICATION
Section 7108.5 of the California Business and Professions Code (CBPC) requires a prime contractor or subcontractor (i.e. builders) to pay any subcontractor not later than seven (7) days after receipt of each progress payment received or final retention payment. Section 3321 of the California Civil Code (CCC) requires prime design professionals (prime consultants directly in contract with a public agency) to pay any subconsultant not later than fifteen (15) days after receipt of each progress payment or final retention payment. The payment cannot be delayed because of disagreements on other contracts. Any delay or postponement of payment among the parties may take place only for good cause with the agency’s prior written approval. This requirement applies to both DBE and non-DBE subcontractors.

1. CONTRACT INFORMATION
(1)
Prime Contractor/Consultant
(2)
Local Agency
(3)
Federal Project
Number
(4)
Local Contract
Number
(5)
Total Contract Award
Amt ($)
(6)
Total DBE
Commitment Amt($)
(7)
DBE
Commitment
(%)
(8)
DBE Contract
Goal (%)
(9)
Reporting Period (MM/YYYY)

2. PAYMENT INFORMATION
(10)
Subcontractor/Subconsultant Name
(11)
DBE Cert.

Number
(12)
Subcontract Type
(13)
Date Payment
Received by
Prime
(14)
Date of Prime
Payment to Sub
(15)
Amount of Payment
($)
(16)
Amount Paid To Sub
to Date
($)
(17)
Total Committed to
This Subcontractor ($)
(18)
Promptly Paid?
(Y/N)
(19)
Incremental
Retainage
Paid?
(Y/N)
(20)
Comments or Reason for NonPayment/Non-Prompt Payment,
including Payment of incremental
Retainage *
Totals $0.00 $0.00 $0.00
List all first-tier subcontractors/subconsultants, whether or not the firms were originally listed in Exhibit 10-O2 or 15-G as a DBE commitment. If the actual DBE utilization was different than that approved at the time of award, provide comments in box (20). All payments reported, including payments to contractor/consultant, are for the date listed. * Only reasons based on dispute on subcontractor or supplier noncompliance may be accepted.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS PROJECT 4936-0319-1675 v.1
72 3. CERTIFICATION

May 2023
The prime contractor or consultant hereby certifies that the foregoing Prompt Payment
(21) Prime Contractor Manager's Signature (22) Date
(25) Prime Contractor Manager's Name (26) Phone
Local Agency certifies that all information in this form is complete and (23) Local Agency Representative's Signature (24) Date
(27) Local Agency Representative 's Name (28) Phone

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
4936-0319-1675 v.1
73 Exhibit 9-P Instructions
I. Purpose
Section 7108.5 of the California Business and Professions Code (CBPC) requires a prime contractor or subcontractor (i.e. builders) to pay any subcontractor not later than seven (7) days after receipt of each progress payment received or final retention payment. Section 3321 of the California Civil Code (CCC) requires prime design professionals (prime consultants directly in contract with a public agency) to pay any subconsultant not later than fifteen (15) days after receipt of each progress payment or final retention payment. The payment cannot be delayed because of disagreements on other contracts. Any delay or postponement of payment among the parties may take place only for good cause with the agency’s prior written approval. This requirement applies to both DBE and non-DBE subcontractors.

II. Instruction
For projects that are awarded on or after September 1, 2023:

The prime contractor or consultant must submit Exhibit 9-P to the LPA administering the contract by the 15th of the month following the month of any payment(s). If the prime contractor or consultant does not make any payments to subcontractors, suppliers, and/or manufactures they must report "no payments were made to subs this month" and write this visibly and legibly on Exhibit 9-P.

A failure to complete the Prompt Pay reporting requirement may result in the withholding of the prime contractor or consultant's next progress payment and/or final payment. Additionally, Caltrans may require the LPA to issue a corrective action plan and /or it may require the LPA to suspend the contract in whole or in part if the prime or consultant does not make up the shortfall.

LPA must verify all Exhibit 9-P information, monitor compliance with prompt payment requirements for DBE and nonDBE firms, and address any shortfalls to the DBE commitment and prompt payment issues until the end of the project.

The LPA must email a copy of Exhibit 9-P to [email protected] before the end of the month after receiving the Exhibit 9-P from prime contractor or consultant.

1. CONTRACT INFORMATION
(1) Prime Contractor/Consultant: Enter the business name for the prime contractor/consultant. (2) Local Agency: Enter the local agency name.
(3) Federal Aid Project Number: Enter the 7-digit federal-aid project number of the lead project on the contract.

E.g. 5002(123) is a valid Federal-Aid Project Number.
(4) Local Contract Number: Enter the Local Agency contract number or identifier. (5) Total Contract Award Amount ($): Enter the total contract award amount of the project. (6) Total Contract DBE Commitment Amount ($): Enter the total DBE commitment award amount of the project as it appears on Exhibit 10-O2 or Exhibit 15-G.
(7) DBE Commitment (%): Enter percentage of the Prime contract committed to DBE firms as it appears on Exhibit 10-O2 or Exhibit 15-G.
(8) DBE Contract Goal (%): Enter the contract DBE goal percentage as it appears on the project advertisement. (9) Reporting Period (Month-Year): Indicate the month and year of payments being reported.

2. PAYMENT INFORMATION
(10) Subcontractor/Subconsultant name: Enter subcontractor/consultant firm's name.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
4936-0319-1675 v.1
74 (11) DBE Cert. Number: List the DBE's certification number as listed in the California Unified Certification Program (CUCP) database.
(12) Subcontract Type: Enterthe most appropriate Subcontractor's contract type.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION

ENHANCEMENTS PROJECT
4936-0319-1675 v.1
75 (13) Date of Payment Received by Prime: Enter date when a check is issued by LPA to the prime contractor/consultant for work performed by the contractor/consultant. (14) Date of Prime Payment to Sub: Enter date when a check is issued by prime to the subcontractor/subconsultant for work performed by the subcontractor/subconsultant.
(15) Amount of Payment ($): Enter the total amount paid to the subcontractor this period. (16) Amount Paid to Sub to Date ($): Enter the total amount paid to this subcontractor to date. This should be a total of past payments plus payment for the current work just invoiced to the Local Agency. (17) Total amount committed to this subcontractor ($): Enter the total amount committed to this subcontractor, copy the information from the agency signed Exhibit 10-O2 or 15-G. (18) Promptly Paid? (Y/N): Enter "Y" if payment was made in accordance with the contract. Enter "N" if it's in dispute.

Must provide comments regarding any dispute of payment. (19) Incremental Retainage Paid? (Y/N): Enter "Y" if this payment was a retainage payment. Enter "N" if this was a progress or final payment.
(20) Comments or Reason for Non-Payment/Non-Prompt Payment, including Payment of Incremental Retainage *: Only reasons based on dispute with subcontractor or supplier noncompliance may be accepted.

Add appropriate notes if a DBE subcontract was terminated, a DBE subcontract was added, if change orders impacted the DBE's payments (include good faith efforts the prime contractor/consultant implemented), if task orders weren't issued, etc.

3. CERTIFICATION
(21) Prime Contractor Manager's Signature: Self explanatory (22) Date: Provide the date Prime Contractor Managersigned this form. (23) Local Agency Presentative's Signature: Self explanatory. (24) Date: Provide the date Local Agency Presentative signed this form. (25) Prime Contractor Manager's Name: Self explanatory. (26) Phone: Self explanatory
(27) Local Agency Presentative's Name: Self explanatory. (28) Phone: Self explanatory

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
EXHIBIT “E”

CALTRANS MASTER AGREEMENT AND PROGRAM SUPPLEMENT

MASTER AGREEMENT ADMINISTERING AGENCY-STATE AGREEMENT

STATE-FUNDED PROJECTS
12 City of Laguna Hills District Administering Agency
Agreement No. 12-5468521
This AGREEMENT, is entered into effective this 18 th day of June , 20 24, by and between the City of Laguna Hills, hereinafter referred to as "ADMINISTERING AGENCY," and the State of California, acting by and through its Department of Transportation (Caltrans), hereinafter referred to as "STATE", and together referred to as "PARTIES" or individually as a "PARTY." RECITALS:

1. WHEREAS, the Legislature of the State of California has enacted legislation by which certain State funds are made available for use on local transportation related projects of public entities qualified to act as recipients of these state funds; and

2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for funding from a State-funded program (herein referred to as STATE FUNDS), as defined in the Local Assistance Program Guidelines (LAPG) and/or in the respective CTC Guidelines, for use on local authorized transportation related projects as a local administered project(s), hereinafter referred to as "PROJECT"; and

3. WHEREAS, said PROJECT will not receive any federal funds; and

4. WHEREAS, before STATE FUNDS will be made available for PROJECT, ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish terms and conditions applicable to the ADMINISTERING AGENCY when receiving STATE FUNDS for a designated PROJECT facility and to the subsequent operation and maintenance of that completed facility.

NOW, THEREFORE, the PARTIES agree as follows:

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT

ARTICLE I - PROJECT ADMINISTRATION

1. This AGREEMENT shall have no force or effect with respect to any program project unless and until a project- specific Program Supplement to this AGREEMENT for state funded projects, hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STATE and ADMINISTERING AGENCY.

2. The State approved project-specific allocation notification letter and approved CTC allocation documentation designate the party responsible for implementing PROJECT, type of work, and location of PROJECT for projects requiring CTC allocation by PROJECT component of work.

3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have been initially encumbered for PROJECT along with the matching funds to be provided by ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the PARTIES shall cause ADMINISTERING AGENCY to adopt all the terms of this AGREEMENT as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the governing body of ADMINISTERING AGENCY.

4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM SUPPLEMENT. The PARTIES agree that STATE may suspend future allocations, encumbrances and invoice payments for any on- going or future STATE FUNDED PROJECT performed by ADMINISTERING AGENCY if any project-specific PROGRAM SUPPLEMENT is not returned, unless otherwise agreed by STATE in writing.

5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the specific PROJECT.

6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of the effective date of allocation by CTC, or by STATE for allocations delegated to STATE by CTC, for said PROJECT.

7. Projects allocated with STATE FUNDS will be administered in accordance with the current CTC STIP Guidelines, applicable chapter(s) of the LAPG, LAPM and/or any other instructions published by STATE.

8. ADMINISTERING AGENCY agrees to ensure compliance with all relevant State laws and requirements for work related to PROJECT, including the California Environmental Quality Act (CEQA).

9. ADMINISTERING AGENCY'S eligible costs for preliminary engineering work includes all preliminary work directly related to PROJECT up to contract award for construction, including, but not limited to, environmental studies and permits (E&P), preliminary surveys and reports, laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS&E), advertising for bids, awarding of a contract and project development contract administration.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT

10. ADMINISTERING AGENCY's eligible costs for construction engineering include actual inspection and supervision of PROJECT construction work; construction staking; laboratory and field testing; and the preparation and processing of field reports, records, estimates, final reports, and allowable expenses of employees/consultants engaged in such activities.

11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY'S employees or its contracted engineering consultant shall be responsible for all PROJECT engineering work.

12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final environmental approval of PROJECT. Final design entails the design work necessary to complete the PS&E and other work necessary for a construction contract but not required earlier for environmental clearance of that PROJECT.

13. If PROJECT is not on STATE-owned right-of-way, PROJECT shall be constructed in accordance with Chapter 11 of the LAPM that describes minimum statewide design standards for local agency streets and rqads. The design standards for projects off the National Highway System (NHS) allow STATE to accept either the current Caltrans Highway Design Manual standards, the current FHWA-adopted American Association of State Highway and Transportation Officials (AASHTO) A Policy on Geometric Design of Highways and Streets standards, or the approved geometric design standards of ADMINISTERING AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-approved standard specifications, standard plans, materials sampling and testing quality assurance programs that meet the conditions described in the then current Local Assistance Procedures Manual.

14. If PROJECT involves work within or partially within STATE-owned right-of-way, that PROJECT shall also be subject to compliance with the policies, procedures and standards of the STATE Project Development Procedures Manual and Highway Design Manual and where appropriate, an executed cooperative agreement between STATE and ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES.

ADMINISTERING AGENCY and its contractors shall each obtain an encroachment permit through STATE prior to commencing any work within STATE rights-of-way or work which affects STATE facilities.

15. When PROJECT is not on the State Highway System (SHS) but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract.

16. ADMINISTERING AGENCY shall comply with the provisions of sections 4450 and 4454 of the California Government Code, as well as other Department of General Services guidance, if applicable, for the contract PS&E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.

17. ADMINISTERING AGENCY shall provide a full-time public employee to be in responsible charge of each PROJECT. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. ADMINISTERING AGENCY may utilize consultants to perform supervision and inspection work for PROJECT with a

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
fully qualified and licensed engineer. Utilization of consultants does not relieve ADMINISTERING AGENCY of its obligation to provide a full-time public employee to be in responsible charge of each PROJECT.

18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall advertise, award, and administer the PROJECT construction contract or contracts.

19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or contractor forces during any temporary suspension of PROJECT or at any other time may not be charged to the PROJECT.

20. ADMINISTERING AGENCY shall submit PROJECT-specific award information to STATE's District Local Assistance Engineer, within sixty (60) days after contract award.

21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a "Final Project Expenditure Report", LAPM Exhibit 17-M, within one hundred eighty (180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a "Final Project Expenditure Report", within 180 days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the Local Assistance Procedures Manual.

22. ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of 1990 that prohibits discrimination on the basis of disability and all applicable regulations and guidelines issued pursuant to the ADA.

23. The Governor and the Legislature of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto as Exhibit A and further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for performance of work connected with PROJECT shall incorporate Exhibit A (with third party's name replacing ADMINISTERING AGENCY) as parts of such agreement.

24. ADMINISTERING AGENCY shall include in all contracts and subcontracts awarded when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective at the date of contract award by the ADMINISTERING AGENCY.

ARTICLE II - RIGHTS-OF-WAY

1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all necessary rights of way have been secured. Prior to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights-of-way are available for construction purposes or will be available by the time of award of the construction contract.

2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein includes, and is limited to, the following, unless the PROGRAM SUPPLEMENT provides otherwise. (a) Expenditures of capital and support to purchase all real property required for

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
PROJECT free and clear of liens, conflicting easements, obstructions and encumbrances, after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY.
(b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of damages to owners of remainder real property not actually taken but injuriously affected by PROJECT. (c) The cost of relocation payments and services provided to owners and occupants pursuant to Government Code sections 7260-7277 when PROJECT displaces an individual, family, business, farm operation or nonprofit organization.
(d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is recorded for sale proceeds used to offset PROJECT costs. (e) The cost of all unavoidable utility relocation, protection or removal. (f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation or removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and where the actual generator cannot be identified, and recovery made.

3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right-of-way for a PROJECT is not clear as certified by ADMINISTERING AGENCY, including, but not limited to, if said right-of-way is found to contain hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING AGENCY shall pay, from its own non- matching funds, any costs which arise out of delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights-of-way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work.

ARTICLE 111 - MAINTENANCE AND MANAGEMENT

1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity.

2. Upon ADMINISTERING AGENCY'S acceptance of the completed construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreement(s) between itself and the other jurisdictional Agency or Agencies providing for the operation, maintenance, ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after receipt of notice from STATE that a PROJECT, or any portion thereof, is not

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
being properly operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the approval of future STATE FUNDED PROJECTS of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE's concurrence.

3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as PROJECT reasonably requires. Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements.

4. ADMINISTERING AGENCY shall comply with all applicable law, including but not limited to, all applicable legal authority regarding construction standards.

ARTICLE IV - FISCAL PROVISIONS

1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the CTC.

2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this AGREEMENT, the execution of each project-specific PROGRAM SUPPLEMENT and/or STATE's approved finance letter.

3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices in arrears for reimbursement of allowable PROJECT costs at least once every six months commencing after the STATE FUNDS are encumbered on either the project-specific PROGRAM SUPPLEMENT or through a project-specific finance letter approved by STATE·. STATE reserves the right to suspend future allocations and invoice payments for any on-going or future STATE FUNDED project performed by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six­ month period

4. Invoices shall be submitted on a standardized billing summary template, in accordance with Chapter 5 of the LAPM to claim reimbursement by ADMINISTERING AGENCY. For construction invoices, pay estimates must be included.

5. ADMINISTERING AGENCY must retain at least one copy of supporting backup documentation for allowable costs incurred and claimed for reimbursement by ADMINISTERING AGENCY.

ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.

6. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursements of actual allowable PROJECT costs already incurred and paid for by the ADMINISTERING AGENCY.

7. Indirect Cost Allocation Plans/Indirect Cost Rate Proposals (ICAP/IC RP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to the Inspector General - Independent Office of Audits and Investigations for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
indirect cost incurred within each fiscal year being claimed for reimbursement. ICAPs/lCRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the LAPM, and the ICAP/ICRP approval procedures established by STATE.

8. STATE will withhold the greater of either two (2) percent of the total of all STATE FUNDS encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.

9. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES with a finance letter, and an allocation notification letter when applicable. STATE FUNDING may be increased to cover PROJECT cost increases only if such additional funds are available and the CTC and/or STATE concurs with that increase in the form of an allocation and 'finance letter.

10. When such additional STATE FUNDS are not available, ADMINISTERING AGENCY agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY'S own funds.

11. ADMINISTERING AGENCY shall use its own non-STATE FUNDS to finance the local share of eligible costs and all PROJECT expenditures or contract items ruled ineligible for financing with STATE FUNDS. STATE shall make the final determination of ADMINISTERING AGENCY'S cost eligibility for STATE FUNDED financing with respect to claimed PROJECT costs.

12. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall include overhead assessments in accordance with section 8755.1 of the State Administrative Manual.

13. STATE FUNDS allocated by the CTC and/or STATE are subject to the timely use of funds provisions approved in CTC Guidelines and State procedures approved by the CTC and STATE.

14. STATE FUNDS encumbered for PROJECT are available for liquidation only for a limited period from the beginning of the State fiscal year when those funds were appropriated in the State Budget. STATE FUNDS not liquidated within these periods will be reverted unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Section 16304 of the Government Code. The exact date of fund reversion will be reflected in the STATE signed PROJECT finance letter.

15. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid to rank and file STATE employees under current California Department of Human Resources (CalHR) rules unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Government Code section 16304. If the rates invoiced by ADMINISTERING AGENCY are in excess of CalHR rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT

16. ADMINISTERING AGENCY agrees to comply with California Government Code 4525- 4529.14. Administering Agency shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall also comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326.

17. ADMINISTERING AGENCY agrees and will assure that its contractors and subcontractors will be obligated to agree that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326Governments.

ADMINISTERING AGENCY agrees to comply with the provisions set forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies.

18. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR 200 excluding 2 CFR Part 200.318-200.326, 48 CFR Chapter 1, Part 31, LAPM, Public Contract Code (PCC) 10300- 10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations.

19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be questioned, disallowed, or unallowable under 2 CFR, Part 200, 48 CFR, Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646, LAPM, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations are subject to repayment by ADMINISTERING AGENCY to STATE and may result in STATE imposing sanctions on ADMINISTERING AGENCY as described in Chapter 20 of the Local Assistance Procedures Manual.

20. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by STATE as provided herein or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty (30) days of demand, or within such other period as may be agreed to in writing between the PARTIES hereto, STATE, acting through the State Controller, the State Treasurer, the CTC or any other public entity or agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid by or owed to STATE for each PROJECT, from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and/or may also withhold approval of future STATE FUNDED projects proposed by ADMINISTERING AGENCY.

21. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

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22. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT.

ARTICLE V

AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS

1. STATE reserves the right to conduct technical and financial audits of PROJECT work and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by paragraph three (3) of Article V.

2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices sent to or paid by STATE.

3. ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States, all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts, and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above-referenced parties shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years, or 35 years for Prop 1B funds, from the date of final payment to ADMINISTERING AGENCY.

4. ADMINISTERING AGENCY shall not award a construction contract over $25,000 on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or used as local match credit must meet the requirements set forth in this AGREEMENT regarding local match funds.

5. ADMINISTERING AGENCY shall comply with Chapter 10 (commencing with Section 4525) Division 5 of Title 1 of the Government Code and shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall comply with Chapter 10 of the LAPM for AE Consultant Contracts.

6. ADMINISTERING AGENCY shall comply with Government Code Division 5 Title 1 sections 4525-4529.5 and shall undertake the procedures described in California Government Code 4527(a) and 4528(a) for procurement of professional service contracts. Administering Agency shall follow Public Contract Code Section 10335- 10381 for other professional service contracts.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

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7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V,

AUDITS, THIRD-PARTY CONTRACTING, RECORDS RETENTION AND
REPORTS and shall mandate that travel and per diem reimbursements and third- party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors.

8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner that is required of all other PROJECT expenditures.

9. Except as provided in this Article, this AGREEMENT is solely between and for the benefit of the PARTIES and there are no third-party beneficiaries.

ARTICLE VI - MISCELLANEOUS PROVISIONS

1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and other California laws.

2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and regulations, and the Local Assistance Program Guidelines and Local Assistance Procedures Manual as published by STATE and incorporated herein, including all subsequent approved revisions thereto applicable to PROJECT unless otherwise designated in the project-specific executed PROJECT SUPPLEMENT.

3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner.

4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE.

5. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT.

6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT, and ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT.

7. ADMINISTERING AGENCY certifies, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the PROJECT work actually performed, or in STATE'S discretion, to deduct from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT

8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two (2) year period because of ADMINISTERING AGENCY'S failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board.

9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE that may have an impact upon the outcome of this AGREEMENT or any individual PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of a PROJECT undertaken pursuant to this AGREEMENT. These disclosures shall be delivered to STATE in a form deemed acceptable by the STATE prior to execution of this AGREEMENT.

10.ADMINISTERING AGENCY hereby certifies that it does not have, nor shall it acquire, any financial or business interest that would conflict with the performance of any PROJECT initiated under this AGREEMENT.

11.ADMINISTERING AGENCY certifies that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its sole discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.

12.Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by the STATE's Contract Manager, who shall be identified to ADMINISTERING AGENCY at the time of execution of this AGREEMENT and, as applicable , any time that Contract Manager changes during the duration of this AGREEMENT who may consider any written or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract Manager, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered and determined by the Contract Manager.

13.Neither the pendency of a dispute nor its consideration by the Contract Manager will excuse the ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT and each PROGRAM SUPPLEMENT.

14.Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority or jurisdiction of ADMINISTERING AGENCY arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims and suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under this AGREEMENT.

15.Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, under or in connection with any work, authority or

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT.

16.In the event of (a} ADMINISTERING AGENCY failing to timely proceed with effective PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT; (b} failing to maintain any applicable bonding requirements; and (c} otherwise materially violating the terms and conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING AGENCY.

17.No termination notice shall become effective if, within thirty (30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to STATE.

18.Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT and the applicable PROGRAM SUPPLEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of ARTICLE VI, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the PROGRAM SUPPLEMENT and/or STATE-approved finance letter prior to termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and conditions of this AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the cost of any PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY.

19.In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a projectspecific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this AGREEMENT.

20.Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part.

21.No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES, and no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officer.

STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION
By Ferdinand Batatan
t:e-riJiluuuJ B�
Ferdinand Batatan (Jun 18, 202414:59 PDT)
For: Chief, Office of Project Management
Oversight
Division of Local Assistance
Date 06/18/2024
Jarad Hildenbrand
Meyer ubf (Y\gc)¥
City of Laguna Hills
Representative Name & Title (Authorized
Governing Body Representative)
Date to{l�ZLf

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT

EXHIBIT A - FAIR EMPLOYMENT PRACTICES ADDENDUM

1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against any employee for employment on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status.

ADMINISTERING AGENCY will take affirmative action to ensure that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status.

Such action shall include, but not be limited to, the following: employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section.

2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, 12900 et seq.), and the applicable regulations promulgated thereunder (Cal. Code Regs., Title 2, 11000, et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12900(a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of the ADMINISTERING AGENCY'S contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate.

3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT.

4. ADMINISTERING AGENCY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement.

5. Remedies for Willful Violation:
(a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employment Practices Act.
(b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named in the Agreement

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
and the actual cost thereof to STATE to cure ADMINISTERING AGENCY'S breach of this Agreement.

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
RESOLUTION NO. 2024-05-28-7

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO EXECUTE ALL CALIFORNIA DEPARTMENT OF

TRANSPORTATION AGREEMENTS AND AMENDMENTS
The City Council of the City of Laguna Hills, California, ("City") hereby finds, determines, declares, and resolves as follows:

WHEREAS, the City is eligible to receive Federal and/or State funding for certain Transportation Projects through the California Department of Transportation; and WHEREAS, Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements need to be executed with the California Department of Transportation before such funds can be claimed; and
WHEREAS, the City desires to delegate authorization to execute these Agreements, and any amendments thereto, to the City Manager and he is to be authorized to execute Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, Fund Transfer Agreements and/or any amendments thereto with the California Department of Transportation.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by reference herein.

SECTION 2. The City Manager is authorized to approve and execute Master Agreement No. 12-5468S21 and Program Supplement Agreement No. 00000A549.

SECTION 3. The City Manager is authorized to approve and execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, Fund Transfer Agreements and/or any amendments thereto with the California Department of Transportation until such time this authorization is rescinded by adoption of a superseding Resolution.
j
1837276. l

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION

ENHANCEMENTS PROJECT
Resolution No. 2024-05-28-7

PASSED, APPROVED, AND ADOPTED this 28th day of May 2024.

DAVE WHEELER, MAYOR
STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF LAGUNA HILLS ) I, JENNIFER LEE, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2024-05-28-7 adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 28th day of May 2024 by the following vote:

AYES: Council Members Caskey, Heft, Pezold, Mayor Pro Tempore Sweeney, and Mayor Wheeler
NOES: None
ABSENT: None ABSTAIN: None
(SEAL)
ATTEST:

Jl

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION

ENHANCEMENTS PROJECT
1837276.1

City of Laguna Hills
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ENHANCEMENTS PROJECT
12-5468S21_City of Laguna Hills
Final Audit Report 2024-06-18
"12-5468S21_City of Laguna Hills" History
Document created by Gerald Mcdaniel ([email protected]) 2024-06-18 - 9:53:36 PM GMT- IP address: 149.136.17.251 Document emailed to Ferdinand Batatan ([email protected]) for signature 2024-06-18 - 9:55:24 PM GMT
Email viewed by Ferdinand Batatan ([email protected]) 2024-06-18 - 9:59:06 PM GMT- IP address: 149.136.17.250 Document e-signed by Ferdinand Batatan ([email protected]) Signature Date: 2024-06-18 - 9:59:50 PM GMT - Time Source: server- IP address:
149.136.17.250
Agreement completed.
2024-06-18 - 9:59:50 PM GMT
Created: 2024-06-18
By:

Status:

Transaction ID:

Gerald Mcdaniel ([email protected]) Signed
CBJCHBCAABAAnSRfwVmccqP637UORJW0IA9qL5Gus80d

City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION

ENHANCEMENTS PROJECT

Program Supplement 12-5468F15-F011- ISTEA Page 1 of 7
City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

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PROGRAM SUPPLEMENT NO. F011
to

ADMINISTERING AGENCY-STATE AGREEMENT FOR
FEDERAL-AID PROJECTS NO 12-5468F15
Adv. Project ID
1225000079
Date: August 18, 2025
Location: 12-ORA-0-LGNH
Project Number: STPCML-5468(017)
E.A. Number:

Locode: 5468
This Program Supplement hereby adopts and incorporates the Administering Agency-State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 09/23/2016 and is subject to all the terms and conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No.2024-05-28-7 approved by the Administering Agency on 05/28/2024 (See copy attached).

The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from sources noted below obligated to this PROJECT, the Administering Agency accepts and will comply with the special covenants or remarks set forth on the following pages.

PROJECT LOCATION: At Paseo de Valencia Laguna Hills Drive to Cabot Road (Approximately 2.2 miles) TYPE OF WORK: Bike Lane LENGTH: 0.0(MILES)
Estimated Cost Federal Funds Matching Funds
M400 $140,000.00 LOCAL OTHER
Y230 $580,000.00
$820,000.00 $100,000.00 $0.00

CITY OF LAGUNA HILLS STATE OF CALIFORNIA
Department of Transportation
Ferdinand A Batatan
By Ferdinand A. Batatan (Aug 27, 2025 13:40:33 PDT)
Date
For: Chief, Office of Project Management Oversight
Division of Local Assistance
Attest
Jennifer Lea, CMC
Date 08/27/
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Program Supplement 12-5468F15-F011- ISTEA Page 1 of 7
City of Laguna Hills
PASEO DE VALENCIA AND CABOT ROAD – ACTIVE TRANSPORTATION ENHANCEMENTS

PROJECT
Accounting Officer Date 8/18/2025 $720,000.00

12-ORA-0-LGNH
STPCML-5468(017)
Program Supplement 12-5468F15-F011- ISTEA

SPECIAL COVENANTS OR REMARKS

1. A. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual.

B. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s).

C. STATE and ADMINISTERING AGENCY agree that any additional funds which might be made available by future Federal obligations will be encumbered on this PROJECT by use of a STATE-approved "Authorization to Proceed" and Finance Letter. ADMINISTERING AGENCY agrees that Federal funds available for reimbursement will be limited to the amounts obligated by the Federal Highway Administration.

D. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract.

Failure to do so will cause a delay in the State processing invoices for the construction phase. Attention is directed to Section 15.6 "Award Package" of the Local Assistance Procedures Manual.

E. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumbrances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period.

If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount.

ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual.

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SPECIAL COVENANTS OR REMARKS

F. Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal-assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of Federal-assisted contracts. The Administering Agency's DBE Implementation Agreement is incorporated by reference in this Agreement. Implementation of the DBE Implementation Agreement, including but not limited to timely reporting of DBE commitments and utilization, is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

G. Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter. Per Government Code Section 16304, all project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested by the ADMINISTERING AGENCY and approved by the California Department of Finance.

ADMINISTERING AGENCY should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's Office and the Department of Finance; in order for payment to be made, the last date the District Local Assistance Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable work for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year.

Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement involving applicable funds that is not received by the Department's Local Programs Accounting Office at least 45 days prior to the applicable fixed fund Reversion Date will not be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date.

H. As a condition for receiving federal-aid highway funds for the PROJECT, the Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Exclusion List. Exclusions can be found at www.sam.gov.

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SPECIAL COVENANTS OR REMARKS

2. A. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedures (including those set forth in the Local Assistance Procedures Manual and the Local Assistance Program Guidelines, hereafter collectively referred to as "LOCAL ASSISTANCE PROCEDURES") relating to the federal-aid program, all Title 23 Code of Federal Regulation (CFR) and 2 CFR Part 200 federal requirements, and all applicable federal laws, regulations, and policy and procedural or instructional memoranda, unless otherwise specifically waived as designated in the executed project-specific PROGRAM SUPPLEMENT.

B. Invoices shall be formatted in accordance with LOCAL ASSISTANCE PROCEDURES.

C. ADMINISTERING AGENCY must have at least one copy of supporting backup documentation for costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.

D. Indirect Cost Allocation Plan/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to STATE (Caltrans Audits & Investigations) for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect costs incurred within each fiscal year being claimed for State and federal reimbursement. ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the Local Assistance Procedural Manual, and the ICAP/ICRP approval procedures established by STATE.

E. STATE will withhold the greater of either two (2) percent of the total of all federal funds encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.

F. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid rank and file STATE employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand within thirty (30) days of such invoice.

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SPECIAL COVENANTS OR REMARKS

G. ADMINISTERING AGENCY agrees to comply with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards.

H. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items.

I. Every sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR, Part 200, 23 CFR, 48 CFR Chapter 1, Part 31, Local Assistance Procedures, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), and other applicable STATE and FEDERAL regulations.

J. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, 23 CFR, 48 CFR, Chapter 1, Part 31, and other applicable STATE and FEDERAL regulations, are subject to repayment by ADMINISTERING AGENCY to STATE.

K. STATE reserves the right to conduct technical and financial audits of PROJECT WORK and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by the following paragraph:

ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above referenced parties shall make such AGREEMENT, PROGRAM SUPPLEMENT, and contract materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years from the date of submission of the final expenditure report by the STATE to the FHWA.

L. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system

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SPECIAL COVENANTS OR REMARKS

of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices set to or paid by STATE.

M. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act of 2 CFR 200 if it expends $750,000 or more in Federal Funds in a single fiscal year of the Catalogue of Federal Domestic Assistance.

N. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTERING AGENCY's annual audit and in the schedule of projects to be examined under its single audit prepared in accordance with 2 CFR, Part 200.

O. ADMINISTERING AGENCY shall not award a non-A&E contract over $5,000, construction contracts over $10,000, or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Government Code sections 4525 (d), (e) and (f)] on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. Contracts awarded by ADMINISTERING AGENCY, if intended as local match credit, must meet the requirements set forth in this AGREEMENT regarding local match funds.

P. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain provisions B, C, F, H, I, K, and L under Section 2 of this agreement.

3. In the event that construction of this project of the initial federal authorization for right of way is not started by the close of the twentieth fiscal year following the fiscal year in which the right of way is authorized, the ADMINISTERING AGENCY shall repay the Federal Highway Administration through Caltrans the sum of Federal funds paid under the terms of this agreement.

Authorizing the ROW phase of a project as Advance Construction does not exempt the project from the provisions of 23 U.S.C. 108(a)(2), and 23 CFR 630.112(c)(1).

4. Appendix E of the Title VI Assurances (US DOT Order 1050.2A) During the performance of this agreement, the ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractor, (hereinafter referred to as the "contractor") agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:

Pertinent Nondiscrimination Authorities:

A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR

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Part 21.

B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); C. Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), (prohibits discrimination on the basis of sex);
D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
F. Airport and Airway Improvement Act of 1982, (49 U.S.C. 4 71, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or
activities" to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not); H. Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38; I. The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); J. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
K. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).

.

CITY OF LAGUNA HILLS

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA HILLS )
I, JENNIFER LEE, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the attached is a true and correct copy of Resolution No. 2024-05-28-7, adopted by the City Council of the City of Laguna Hills, California, at a regular meeting thereof held on the 28th day of May 2024. (SEAL)
JEN I ER LEE, City Clerk
Hills, California
DATED: This 29th day of May 2024.

RESOLUTION NO. 2024-05-28-7

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE ALL

CALIFORNIA DEPARTMENT OF TRANSPORTATION AGREEMENTS AND

AMENDMENTS
The City Council of the City of Laguna Hills, California, ("City") hereby finds, determines, declares, and resolves as follows:

WHEREAS, the City is eligible to receive Federal and/or State funding for certain Transportation Projects through the California Department of Transportation; and WHEREAS, Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements need to be executed with the California Department of Transportation before such funds can be claimed; and
WHEREAS, the City desires to delegate authorization to execute these Agreements, and any amendments thereto, to the City Manager and he is to be authorized to execute Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, Fund Transfer Agreements and/or any amendments thereto with the California Department of Transportation.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by reference herein.

SECTION 2. The City Manager is authorized to approve and execute Master Agreement No. 12-5468S21 and Program Supplement Agreement No. 00000A549.

SECTION 3. The City Manager is authorized to approve and execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, Fund Transfer Agreements and/or any amendments thereto with the California Department of Transportation until such time this authorization is rescinded by adoption of a superseding Resolution. j
1837276. l

Resolution No. 2024-05-28-7

PASSED, APPROVED, AND ADOPTED this 28th day of May 2024.

DAVE WHEELER, MAYOR

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF LAGUNA HILLS )
I, JENNIFER LEE, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2024-05-28-7 adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 28th day of May 2024 by the following vote:

AYES: Council Members Caskey, Heft, Pezold, Mayor Pro Tempore Sweeney, and Mayor Wheeler
NOES: None
ABSENT: None
ABSTAIN: None
(SEAL)
1837276.1
ATTEST:

Jl

5468017 PSA
Final Audit Report 2025-08-27
"5468017 PSA" History
Document created by Gregory Nannini ([email protected]) 2025-08-27 - 8:33:20 PM GMT- IP address: 149.136.17.251 Document emailed to Ferdinand Batatan ([email protected]) for signature 2025-08-27 - 8:33:51 PM GMT
Email viewed by Ferdinand Batatan ([email protected]) 2025-08-27 - 8:39:45 PM GMT- IP address: 149.136.17.253 Signer Ferdinand Batatan ([email protected]) entered name at signing as Ferdinand A.

Batatan
2025-08-27 - 8:40:31 PM GMT- IP address: 149.136.17.253 Document e-signed by Ferdinand A. Batatan ([email protected]) Signature Date: 2025-08-27 - 8:40:33 PM GMT - Time Source: server- IP address: 149.136.17.253 Agreement completed.
2025-08-27 - 8:40:33 PM GMT
Created: 2025-08-27
By:

Status:

Transaction ID:

Gregory Nannini ([email protected]) Signed
CBJCHBCAABAA-E8fsUfNYzwp9JTzQc8ZdwYWVd0QpeD6

ATTACHMENT 5

CERTIFICATION REGARDING LOBBYING AND

DISCLOSURE OF LOBBYING ACTIVITIES
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions, which is attached hereto in this Appendix 9. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,0001 for each such failure.

Executed this ______ day of ______, 2025, at ________________, California.

Name of Proposer:

By:
(Signature & Title)
Date:
1The amounts specified in Appendix A to Part 93 are updated annually, as adjusted in accordance with the Federal Civil Monetary Penalty Inflation Adjustment Act of 1990 (Pub. L. 101-140), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (section 701 of Pub. L. 114-74). Annually adjusted amounts are published at 45 CFR part 102.

DISCLOSURE OF LOBBYING ACTIVITIES
COMPLETE THIS FORM TO DISCLOSE LOBBYING ACTIVITIES PURSUANT TO 31 U.S.C. 1352

1. Type of Federal Action: 2. Status of Federal Action: 3. Report Type:
a. contract a. bid/offer/application a. initial
b. grant b. initial award b. material change
c. cooperative agreement c. post-award
d. loan For Material Change Only:
e. loan guarantee year ____ quarter _________
f. loan insurance date of last report___________

4. Name and Address of Reporting Entity 5. If Reporting Entity in No. 4 is Subawardee, Enter Name and Address of Prime:

Prime Subawardee
Tier _______, if known
Congressional District, if known Congressional District, if known

6. Federal Department/Agency: 7. Federal Program Name/Description:

CFDA Number, if applicable ____________________

8. Federal Action Number, if known: 9. Award Amount, if known:

10. Name and Address of Lobby Entity 11. Individuals Performing Services (If individual, last name, first name, MI) (including address if different from No. 10) (last name, first name, MI)
(attach Continuation Sheet(s) if necessary)

12. Amount of Payment (check all that apply) 14. Type of Payment (check all that apply) $ _____________ actual planned a. retainer
b. one-time fee

13. Form of Payment (check all that apply): c. commission a. cash d. contingent fee
b. in-kind; specify: nature _______________ e deferred
Value _____________ f. other, specify__________________________

15. Brief Description of Services Performed or to be performed and Date(s) of Service, including officer(s), employee(s), or member(s) contacted, for Payment Indicated in Item 12:
(attach Continuation Sheet(s) if necessary)

16. Continuation Sheet(s) attached: Yes No

17. Information requested through this form is authorized by Title 31 U.S.C. Section 1352. This disclosure of lobbying reliance was placed by the tier above when his transaction was made or entered into. This disclosure is required pursuant to 31 U.S.C. 1352. This information will be reported to Congress
semiannually and will be available for public inspection. Any person who fails to file the required disclosure shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

Signature: ________________________________________
Print Name: _______________________________________
Title: ____________________________________________
Telephone No.: ____________________ Date:___________
Authorized for Local Reproduction
Federal Use Only: Standard Form - LLL
Standard Form LLL Rev. 04-28-06

INSTRUCTIONS FOR COMPLETING DISCLOSURE OF LOBBYING ACTIVITIES

This disclosure form shall be completed by the reporting entity, whether subawardee or prime federal recipient at the initiation or receipt of covered federal action or a material change to previous filing pursuant to title 31 U.S.C. Section 1352. The filing of a form is required for such payment or agreement to make payment to lobbying entity for influencing or attempting to influence an officer or employee of any agency, a Member of Congress an officer or employee of Congress or an employee of a Member of Congress in connection with a covered federal action. Attach a continuation sheet for additional information if the space on the form is inadequate. Complete all items that apply for both the initial filing and material change report. Refer to the implementing guidance published by the Office of Management and Budget for additional information.

1. Identify the type of covered federal action for which lobbying activity is or has been secured to influence, the outcome of a covered federal action.

2. Identify the status of the covered federal action.

3. Identify the appropriate classification of this report. If this is a follow-up report caused by a material change to the information previously reported, enter the year and quarter in which the change occurred. Enter the date of the last, previously submitted report by this reporting entity for this covered federal action.

4. Enter the full name, address, city, state, and zip code of the reporting entity. Include Congressional District if known.

Check the appropriate classification of the reporting entity that designates if it is or expects to be a prime or subaward recipient. Identify the tier of the subawardee, e.g., the first subawardee of the prime is the first tier. Subawards include but are not limited to: subcontracts, subgrants, and contract awards under grants.

5. If the organization filing the report in Item 4 checks "Subawardee" then enter the full name, address, city, state, and zip code of the prime federal recipient. Include Congressional District, if known.

6. Enter the name of the federal agency making the award or loan commitment. Include at least one organization level below agency name, if known. For example, Department of Transportation, United States Coast Guard.

7. Enter the federal program name or description for the covered federal action (item 1). If known, enter the full Catalog of Federal Domestic Assistance (CFDA) number for grants, cooperative agreements, loans and loan commitments.

8. Enter the most appropriate federal identifying number available for the federal action identification in item 1 (e.g., Request for Proposal (RFP) number, Invitation for Bid (IFB) number, grant announcement number, the contract grant. or loan award number, the application/proposal control number assigned by the federal agency). Include prefixes, e.g., "RFP-DE-90-001."

9. For a covered federal action where there has been an award or loan commitment by the Federal agency, enter the federal amount of the award/loan commitments for the prime entity identified in item 4 or 5.

10. Enter the full name, address, city, state, and zip code of the lobbying entity engaged by the reporting entity identified in Item 4 to influence the covered federal action.

11. Enter the full names of the individual(s) performing services and include full address if different from 10 (a). Enter Last Name, First Name and Middle Initial (Ml).

12. Enter the amount of compensation paid or reasonably expected to be paid by the reporting entity (Item 4) to the lobbying entity (Item 10). Indicate whether the payment has been made (actual) or will be made (planned). Check all boxes that apply. If this is a material change report, enter the cumulative amount of payment made or planned to be made.

13. Check all boxes that apply. If payment is made through an in-kind contribution, specify the nature and value of the inkind payment.

14. Check all boxes that apply. If other, specify nature.

15. Provide a specific and detailed description of the services that the lobbyist has performed or will be expected to perform and the date(s) of any services rendered. Include all preparatory and related activity not just time spent in actual contact with federal officials. Identify the federal officer(s) or employee(s) contacted or the officer(s) employee(s) or Member(s) of Congress that were contacted.

16. Check whether or not a continuation sheet(s) is attached.

17. The certifying official shall sign and date the form, and print his/her name title and telephone number.

Public reporting burden for this collection of information is estimated to average 30-minutes per response, including time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0046), Washington, D.C. 20503. SF-LLL-Instructions Rev. 06-04

ATTACHMENT 6

1. City of Laguna Hills Vehicle Miles Traveled Analysis Guidelines under CEQA and General Plan Development
Review Traffic Study Guidelines

2. Revised Conceptual Project Renderings from August 2025 Workshop

3. September 9, 2025 City Council staff report for the Mobility Element Amendment to General Plan

CITY OF LAGUNA HILLS
Vehicle Miles Traveled Analysis Guidelines under the
California Environmental Quality Act and
General Plan Development Review Traffic Study Guidelines August 2021
Updated: August 2025 Page 308 of 1484
City of Laguna Hills
VMT Guidelines
i
Executive Summary
The City of Laguna Hills has consolidated the Vehicle Miles Traveled (VMT) Analysis Guidelines under the California Environmental Quality Act (CEQA) and the General Plan Traffic Study Guidelines required for Development Review into this single document. The City of Laguna Hills requires that both VMT and Level of Service (LOS) effects be reviewed for all projects subject to discretionary review. A screening process is utilized to determine the appropriate level of review needed for assessing CEQA and non-CEQA related transportation/traffic impacts.

The Transportation Review Flow Chart, shown in Exhibit A, provides an overview of the typical development review process for assessing transportation and traffic impacts in the City of Laguna Hills.

The City of Laguna Hills Vehicle Miles Traveled Analysis Guidelines under the California Environmental Quality Act (VMT Guidelines) establish the methodology and thresholds of significance for analyzing transportation impacts pursuant to the latest requirements of the California Environmental Quality Act (CEQA) regarding Vehicle Miles Traveled (VMT). The Transportation Review Flow Chart shown in Exhibit A provides an overview of the typical development review process for assessing transportation impacts.

The City of Laguna Hills VMT Screening Form for Land Use Projects (VMT Screening Form) has been developed to provide an easy-to-use tool that can help streamline the VMT evaluation process.

Laguna Hills recognizes the Orange County Transportation Analysis Model (OCTAM) as the preferred traffic analysis model for analyzing VMT in the City and has adopted the OCTAM Base Year 2016 citywide average home-based VMT per capita and home-based work VMT per employee efficiency metrics as the thresholds of significance for CEQA. Projects that exceed the citywide average VMT rate would be considered to have a potentially significant impact and require mitigation to reduce VMT to be equal to or below the applicable threshold.

Through the reduction of VMT, the city will reduce greenhouse gas (GHG) emissions, promote development of multi-modal transportation, and encourage a diversity of land uses. The following key strategies will be utilized for reducing VMT in the City:
• Diversifying land use
• Improving pedestrian networks
• Implementing traffic calming infrastructure
• Improving the bicycle network
• Encouraging telecommuting and alternative work schedules • Providing ride-share programs
• Expanding transit services
2019 Page 309 of 1484
City of Laguna Hills
VMT Guidelines
ii
The City of Laguna Hills will continue to maintain its LOS standards contained in the General Plan when approving development projects subject to a discretionary review process, and to ensure adequate traffic operations along its roadways, outside of the scope of CEQA. This consolidated Guideline includes the requirements for performing both the VMT analysis for purposes of CEQA and a traffic impact study (TIS) based upon a LOS analysis.

The City of Laguna Hills Planning and Engineering Divisions reserve the right to modify the requirements of these guidelines on a case-by-case basis and will update the guidelines as needed to address new CEQA precedent, future modeling forecasts, and overall refinement of the process moving forward.

Approved:

Kenneth H. Rosenfield, P.E.

Director of Public Services/City Engineer
Date
September 15, 2021
Periodically, these VMT Analysis Guidelines will be updated to incorporate the latest VMT data set values from the latest version of OCTAM, which is OCTAM 5.1. The updates to the VMT Analysis Guidelines are shown in a "Blue Font" and identified by a "track change" blue vertical line in the margin.

Update Approved:

Joe Ames, P.E., T.E. Date
Director of Public Works/City Engineer
August 26, 2025

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Table of Contents
Executive Summary ............................................................................................................... i

PART I- VMT GUIDELINES

1.0 Introduction ....................................................................................................................... 1

2.0 VMT Screening for Land Use Projects .................................................................................. 2

2.1 VMT Screening Form for Land Use Projects ......................................................................... 2

2.2 VMT Screening Criteria ....................................................................................................... 2

3.0 VMT Impact Analysis .......................................................................................................... 7

3.1 VMT Thresholds of Significance .......................................................................................... 7

3.2 Mitigating Impacts Using the VMT Screening Form ............................................................. 8

3.3 Project-Specific VMT Modeling ........................................................................................... 8

3.4 RTP/SCS Consistency Requirements ..................................................................................... 9

3.5 Impacts to Transit and Active Transportation ...................................................................... 9

4.0 Mitigation Measures ......................................................................................................... 10

5.0 Transportation Projects ..................................................................................................... 11

PART II - TRAFFIC STUDY GUIDELINES

6.0 Objectives ......................................................................................................................... 13

7.0 Study Requirements .......................................................................................................... 13

8.0 Study Area ........................................................................................................................ 14

9.0 Existing Conditions ........................................................................................................... 15

10.0 Project Trip Generation ..................................................................................................... 15

11.0 Background Traffic ........................................................................................................... 16

12.0 Capacity Analysis .............................................................................................................. 16

13.0 Traffic Signal Warrants Analysis ........................................................................................ 19

14.0 Roadway Segment (Link) Analysis ..................................................................................... 20

15.0 Level of Service Standards ................................................................................................. 21

16.0 Level of Service Impacts .................................................................................................... 21

17.0 Site Access and Circulation Review .................................................................................... 22

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18.0 Parking Requirements ....................................................................................................... 22

19.0 Queuing Analysis .............................................................................................................. 22

20.0 Special Issues (if any) ........................................................................................................ 23

21.0 Recommendations ............................................................................................................ 23

22.0 Conclusion ....................................................................................................................... 23

23.0 Exhibits ............................................................................................................................. 23

24.0 Tables ............................................................................................................................... 24

25.0 Appendices ....................................................................................................................... 24 Exhibits
Exhibit A: Laguna Hills Transportation Impact Analysis Flow Chart for Land Use Projects Exhibit B: OCTAM TAZ Map for City of Laguna Hills
Appendices
Appendix A: City of Laguna Hills VMT Screening Form for Land Use Project Appendix B: City of Laguna Hills VMT Screening Form for Transportation Projects Appendix C: Evaluation of Daily Trip Screening Criteria Appendix D: CAPCOA Fact Sheets for the Quantification of VMT Reduction Appendix E: OPR Technical Advisory Excerpt for Evaluating Transportation Projects Appendix F: Traffic Study Scoping Agreement
Appendix G: RK Engineering Group, Inc. Resumes of Key Personnel

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PART I - VMT GUIDELINES

1.0 Introduction
On July 14, 2020 the City of Laguna Hills adopted Resolution No. 2020-07-14-4, approving Vehicle Miles Traveled Analysis Guidelines under the California Environmental Quality Act (hereinafter referred to as VMT Guidelines) to help ensure that land use and transportation projects comply with the latest requirements of the California Environmental Quality Act (CEQA) (Pub. Resources Code, § 21000 et seq.) regarding VMT. The VMT Guidelines provide standardized criteria and established thresholds of significance to be used for analyzing transportation impacts within the City of Laguna Hills.

On September 27, 2013, Governor Brown signed Senate Bill (SB) 743 into law. SB 743 seeks to further promote the State’s goals of reducing greenhouse gas (GHG) emissions and traffic-related air pollution and increase the development of multimodal transportation systems through the reduction of VMT. While SB 743 primarily focuses on projects in transit priority areas, it also authorized the California Governor’s Office of Planning and Research (OPR) to change how transportation impacts are analyzed outside of transit priority areas. The new CEQA Guidelines (§ 15000 et seq.) were certified and adopted by the Natural Resource Agency in December 2018 and VMT is now identified as the most appropriate metric to evaluate a project’s transportation impacts. Effective July 1, 2020, the previous CEQA metric of level of service (LOS), typically measured in terms of automobile delay or roadway capacity, generally will no longer constitute a significant environmental impact under CEQA.

The Laguna Hills VMT Guidelines are based on the recommendations provided in the OPR Technical Advisory on Evaluating Transportation Impacts in CEQA, December 2018 and incorporate the VMT modeling estimates from the Orange County Transportation Analysis Model (OCTAM). The VMT Guidelines have been tailored to take into account the local land use conditions, transportation network, and the General Plan goals and polices in the City of Laguna Hills.

The City of Laguna Hills Planning and Engineering Divisions reserve the right to modify the requirements of the VMT Guidelines on a case-by-case basis and will update the guidelines as needed to address new CEQA precedent, future modeling forecasts, and overall refinement of the process moving forward.

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The City of Laguna Hills will continue to maintain LOS standards in the General Plan for the discretionary review process and to ensure adequate traffic operations along its roadways, outside of the scope of CEQA. See Exhibit A for the flow chart showing the transportation review process in the City of Laguna Hills and refer to the Traffic Impact Study Guidelines for Level of Service analysis requirements.

2.0 VMT Screening for Land Use Projects
All discretionary land use projects subject to CEQA must evaluate transportation impacts related to VMT as part of the environmental review process. The Transportation Review Flow Chart shown in Exhibit A provides an overview of the typical development review process for assessing transportation impacts in the City of Laguna Hills.

2.1 VMT Screening Form for Land Use Projects
The first step in evaluating a land use project’s potential VMT impact is to perform an initial screening assessment utilizing the City of Laguna Hills VMT Screening Form for Land Use Projects (VMT Screening Form). The VMT Screening Form provides an easy-to-use tool for streamlining the VMT analysis process. An automated spreadsheet is available from the Planning Department and a PDF copy is provided in Appendix A.

2.2 VMT Screening Criteria
Screening criteria are a simplified way to determine whether a project would be expected to cause a less than significant impact to VMT without having to conduct a detailed study. The screening criteria adopted by the City of Laguna Hills are based on the recommendations from OPR for setting screening thresholds for land use projects.

1. Is the project 100% affordable housing?
If a project consists of 100% affordable housing, then the presumption can be made that it will have a less than significant impact on VMT. According to sources provided by OPR, affordable housing projects typically generate lower VMT than market-rate housing and a project consisting of a high percentage of affordable housing may be a basis for the lead agency to find a less than significant impact on VMT. Furthermore, a project which includes any affordable residential units may factor in the effect of the affordability on VMT into the assessment of VMT generated by those units.

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2. Is the project within one half (½) mile of qualifying transit? CEQA Guideline Section 15064.3, subdivision (b)(1), states that lead agencies generally should presume that certain projects (including residential, retail, and office projects, as well as projects that are a mix of these uses) proposed within one half (½) mile of an existing major transit stop or an existing stop along a high-quality transit corridor will have a less than significant impact on VMT.

For purposes of the Laguna Hills VMT Guidelines, qualifying transit means a major transit stop or high-quality transit corridor, defined as follows:
• Major transit stop means a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods. (Pub. Resources Code, § 21064.3)
• Bus rapid transit means a public mass transit service provided by a public agency or by a public-private partnership that includes all of the following features: (1) fulltime dedicated bus lanes or operation in a separate right-of-way dedicated for public transportation with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods; (2) transit signal priority; (3) all-door boarding; (4) fare collection system that promotes efficiency; and (5) defined stations. (Pub. Resources Code, § 21060.2(a)).
• Bus rapid transit station means a clearly defined bus station served by a bus rapid transit. (Pub. Resources Code, § 21060.2(b)).
• High-quality transit corridor means a corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. (Pub.

Resources Code, § 21155). At the time of publishing these guidelines, no highquality transit corridors exist in the City of Laguna Hills.

The Laguna Hills Transportation Center serves as the hub for bus service in the City of Laguna Hills with daily fixed-route bus service provided by the Orange County Transportation Authority (OCTA). OCTA also provides a Dial-A-Taxi transit service for seniors, however, this on-call program does not qualify for VMT screening purposes, as it does not provide fixed-route service with regularly scheduled service times to the general public. The nearest Metrolink stations are the Laguna Niguel/Mission Viejo Station (approx. 0.6 miles from City boundary) and Irvine Station (approx. 1.85 miles from City boundary).

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A project shall be considered to be within one-half mile of a major transit stop or highquality transit corridor if all parcels within the project have no more than 25 percent of their area farther than one-half mile from the stop or corridor and if not more than 10 percent of the residential units or 100 units, whichever is less, in the project are farther than one-half mile from the stop or corridor. The analysis should also consider any substantial physical barriers that may impede pedestrian access.

Not all projects located near qualifying transit are presumed to have a less than significant impact. The presumption of less than significant does not apply if the project:
• Includes more parking for use by residents, customers, or employees of the project than required by the city (if the city requires the project to supply parking); • Is inconsistent with the applicable Sustainable Communities Strategy (as determined by the city, with input from SCAG); or
• Replaces affordable residential units with a smaller number of moderate or highincome residential units.

The latest bus schedules published by OCTA should be reviewed during the VMT screening process to determine whether a bus stop or corridor meets the criteria for qualifying transit.

As of date of these Guidelines (July 9, 2020) the Laguna Hills Transit Center is not served by two or more major bus routes with a frequency of service interval of 15 minutes or less during peak commute periods.

Neither is the Transit Center identified in SCAG's proposed 2020 RTP/ SCS as a major transit stop.

3. Is the project a local serving land use?
Local serving land uses provide goods and services to the local community. Local serving land uses offer more opportunities for residents and employees to shop, dine and obtain services closer to home and work. Local serving uses can also include community resources that may otherwise be located outside of the local area. By improving destination proximity, local serving uses lead to shortened trip lengths and reduced VMT. Therefore, local serving uses may be presumed to have a less than significant impact on VMT. Projects that serve a wider regional area and population, such as regional shopping and entertainment centers would not qualify as a local serving use.

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Table 1 contains a list of the eligible local serving uses in the City of Laguna Hills:

Table 1
List of Local Serving Uses1
Local Serving Retail
(Less Than 50 TSF) Education/Institutional2 Municipal/Public Services2 • General retail/commercial less
than
50,000 square feet, including:
• Supermarket
• Restaurant/cafe/bar
• Coffee/donut shop
• Dry cleaners
• Barber shop
• Hair/nails salon
• Banks
• Walk-in medical clinic
• Urgent Care
• Gas service station
• Auto repair/tire shop
• Gyms/health club
• Dance/yoga/fitness/martial
arts studio
• Public elementary school
• Public middle school
• Public high school
• Private school less than 100
students3
• Community college less than
400 students3
• Day care/pre-school less than
100 students.3
• Vocational school less than
100 students.3
• Assembly uses less than 20
TSF.3
• Library
• Civic center
• Police/Fire station
• Community center
• Public works support facility
• Local Park
• Other local serving civic uses
Notes:
1 The Community Development Director and Director of Public Services reserve the right to require additional VMT analysis of any use listed above if there is indication that it may otherwise increase VMT. Other local serving uses may also be eligible for screening at the discretion of the Community Development Director or Director of Public Services 2 Educational/institutional and municipal/public service uses qualify as local serving uses provided the use would serve the local community and provide additional services to the area that would otherwise have been located further away. These uses would typically be provided to support the local population of the city.
3 Use would also typically generate less than 500 ADT.

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4. Is the Project in a low VMT area?
Projects located in areas with low VMT, and that incorporate similar features (i.e., density, mix of uses, transit accessibility), will tend to exhibit similarly low VMT. If a project is located in a Traffic Analysis Zone (TAZ) with VMT per capita or VMT per employee that is less than or equal to the citywide average, than the project is considered to be located in a low VMT area and can be presumed to have a less than significant impact on VMT. OCTAM is the preferred traffic model for screening and analyzing VMT in the City of Laguna Hills.

Residential projects shall utilize and compare the TAZ VMT/capita rate to the citywide average VMT/capita rate. Non-residential projects shall utilize and compare the VMT/employee rate to the citywide average VMT/employee rate. For mixed-use projects in which the residential component is considered the primary use, and the non-residential component is less than 50,000 square feet of local serving retail, the analysis shall be run as a residential project and the VMT/capita rate should be used. If a mixed-use project consists of non-local serving uses, a separate screening assessment should be prepared for both the residential and non-residential components of the project.

Exhibit B provides a map of the OCTAM TAZ’s in the City of Laguna Hills. Users may also contact the Planning Department to obtain a Google Earth (.kmz) file that shows the OCTAM TAZ boundaries.

5. Are the project’s net daily trips less than 500 ADT? Projects that generate less than 500 net average daily trips (ADT) would not cause a substantial increase in the total citywide or regional VMT and are therefore presumed to have a less than significant impact on VMT. Appendix C provides additional discussion, evidence and analysis regarding the application of the 500 ADT screening criteria and how it has been established within the context of CEQA.

The latest edition of the Institute of Transportation Engineers (ITE) Trip Generation Manual is the preferred source for calculating trip generation in the City of Laguna Hills. The use of other sources of trip generation must be approved by the Community Development or Public Services Department. The screening criteria trip limit is based on net trip generation after considering pass-by, internal capture, affordable housing, and/or existing land use trips.
• Pass-by trips include the portion of the project traffic that is already on the adjacent roadway and passes by the site as an intermediate stop. Typically applied to

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retail/commercial uses only. Pass-by calculations should be consistent with ITE or other verified sources.
• Internal capture trips are trips that both begin and end on the project site.

Commonly found in mixed-use developments, internal capture trips help can significantly reduce VMT. Internal capture credits should be consistent with the NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed-Use Developments or other verified sources.
• Affordable housing trip credits can be taken for any dwelling unit within a project that is deemed affordable, as defined by the Community Development Director. • Existing land use trip credits can be taken for land uses on a project site that are currently operational or that have been previously operational, provided such credits are consistent with the baseline principles in CEQA which permit an existing condition baseline based on historical use.

3.0 VMT Impact Analysis
Projects that do not meet at least one (1) of the screening criteria described in Section 2.0, must provide additional analysis and mitigation of potential VMT impacts.

3.1 VMT Thresholds of Significance
Section 21099 of the Public Resources Code states that the criteria for determining the significance of transportation impacts must promote: (1) reduction of greenhouse gas emissions; (2) development of multimodal transportation networks; and (3) a diversity of land uses.

The Laguna Hills VMT Guidelines have relied upon the recommendations provided by OPR and modeling data provided by OCTA to establish the following quantified thresholds of significance for VMT for land development projects:
• Residential Projects: A significant transportation impact occurs if the project’s home-based VMT per capita exceeds the base year citywide average VMT per capita. • Non-residential Projects: A significant transportation impact occurs if the project’s employment VMT per employee exceeds the base year citywide average VMT per employee.

The citywide average VMT per capita and VMT per employee values are determined using the base year OCTAM modeling statistics. Ensuring land use development projects reduce VMT rates to be at

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or below the current base year citywide average will result in an overall decrease in citywide VMT and GHG emissions.

3.2 Mitigating Impacts Using the VMT Screening Form
To help streamline the VMT evaluation process, the City of Laguna Hills allows certain projects to utilize the OCTAM base year VMT statistics from the TAZ in which the project is located to mitigate potentially significant impacts.

To be eligible for mitigating impacts using the VMT Screening Form, projects should generate less than 2,400 ADT and be located in a TAZ with sufficient base year demographic data to provide a reasonable estimate of VMT patterns for the area. For example, residential projects must be located in a TAZ with existing housing to provide a reasonable sample size of VMT/capita and nonresidential projects must be located in a TAZ with existing employment to provide a reasonable sample size of VMT/employee for evaluation and mitigation purposes.

Utilizing the VMT statistics from the OCTAM base model as a means for assessing project-specific VMT is effective because, generally, land uses of a similar type that are in the same geographic area will tend to exhibit similar VMT. Such land uses will have similar access to the same transportation network and produce and attract trips in a similar manner. The presumption that similar land uses located in the same geographic area would exhibit similar transportation patterns is consistent with the OPR Technical Advisory methodology regarding map-based screening.

A project is required to reduce the base year VMT rate for the TAZ in which the project is located to be less than or equal to the citywide VMT average. The percent reduction required to achieve the citywide average VMT is calculated as follows:

3.3 Project-Specific VMT Modeling
Projects that do not satisfy at least one (1) of the VMT screening criteria and generate 2,400 or more net daily trips, or are not able to effectively mitigate impacts on the VMT Screening Form, shall analyze VMT impacts by using OCTAM to model project-specific VMT.

The Orange County Congestion Management Program uses 2,400 ADT as a screening criterion for assessing whether projects may require a CMP-level Traffic Impact Analysis, and projects that generate over 2,400 ADT have a greater potential to affect travel demand patterns in the OCTAM.

Therefore, to help ensure larger projects do not exceed the assumptions of the OCTAM, projects that generate more than 2,400 ADT would require project-specific VMT modeling.

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Project-specific VMT modeling shall determine if the project would have a significant impact based on the following scenarios:
• OCTAM base year plus project conditions
• OCTAM future year with project conditions
VMT modeling should include project generated VMT per capita and/or VMT per employee for the project and compare the results to the applicable threshold of significance.

The geography analyzed by the OCTAM VMT tool must nest into zones. To obtain project-specific VMT data, a new OCTAM zone may need to be created and/or adjustments may need to be made to the Orange County Projections (OCP) data and zone boundaries to reflect the project specifics.

The latest version of OCTAM shall be used when performing VMT modeling.

Prior to initiating the modeling work, the traffic engineer consultant shall meet with city staff to outline the scope of work of this further analysis. This meet and confer effort is intended to focus the modeling work to meet the intent of these guidelines.

3.4 RTP/SCS Consistency Requirements
Section 15125, subdivision (d), of the CEQA Guidelines provides that lead agencies should analyze impacts resulting from inconsistencies with regional plans, including regional transportation plans.

For this reason, OPR recommends that if a project is inconsistent with the Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS), the lead agency should evaluate whether that inconsistency indicates a significant impact on transportation. For example, a development may be inconsistent with an RTP/SCS if the development is outside the footprint of development or within an area specified as open space, as shown in the SCS. Projects should review the data currently available through SCAG concerning RTP/SCS compatibility.

A project may also be inconsistent with the RTP if it exceeds (either directly or cumulatively) the number of housing units specified in SCAG’s Regional Housing Needs Assessment (RHNA) Final Allocation Plan for the City of Laguna Hills (particularly above moderate-income housing). If the addition of the project would cause the citywide housing supply to exceed the RHNA Allocation, then additional modeling may need to be provided to analyze the effect on future year citywide and project TAZ VMT rates.

3.5 Impacts to Transit and Active Transportation
Consistent with the OPR Technical Advisory, the City of Laguna Hills recommends that when determining the effects of a project on transportation, the analysis should consider project impacts

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to transit systems and bicycle and pedestrian networks. For example, a project that blocks access to a transit stop or blocks a transit route itself may interfere with transit functions.

The analysis should examine if the project is consistent with adopted policies, plans, or programs regarding active transportation or public transit facilities, or otherwise decreases the performance or safety of such facilities and make a determination as to whether it has the potential to conflict with existing or proposed facilities supporting these travel modes.

4.0 Mitigation Measures
The source document for quantifying VMT mitigation measures shall be the California Air Pollution Control Officers Association (CAPCOA) Quantifying Greenhouse Gas Mitigation Measures, August 2010. Other sources of VMT reduction measures may be approved by the Public Services Director, provided substantial evidence is included to justify the VMT reduction estimates. All VMT reduction measures to be applied to the project shall be clearly listed and quantified with supplemental calculations and attachments.

The location setting of a project matters when it comes to the effectiveness that mitigation measures have on reducing VMT. Projects in suburban settings (such as those commonly found in the City of Laguna Hills) typically have limited access to transit, multimodal infrastructure and diverse land use destinations that support effective transportation demand management (TDM) strategies. Thus, the potential VMT reduction in suburban settings is limited.

Users should identify the appropriate project location setting, as defined by CAPCOA (Page 59-60), when estimating potential VMT reduction and follow the recommendations from CAPCOA when considering the maximum percent reduction achievable.

The California Emissions Estimator Model (CalEEMod) developed by CAPCOA may be used to help quantify VMT reduction measures. It is recommended that any VMT reduction measures used for mitigating VMT be consistent with the requirements for reducing greenhouse gas emissions within the CEQA document.

Appendix D includes the fact sheets from CAPCOA listing the transportation measures for VMT reduction.

After all feasible mitigation measures are applied, the mitigated Project VMT Rate should be compared to the applicable thresholds of significance to determine whether the project has effectively reduced the impact to less than significant levels. The mitigated Project VMT Rate is calculated as follows:

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If the mitigated Project VMT rate is below the citywide average rate, then the Project is presumed to have a less than significant impact with mitigation. If the mitigated Project VMT rate remains above the citywide average rate after all feasible mitigation has been applied, then a potentially significant and unavoidable impact may occur.

5.0 Transportation Projects
The City of Laguna Hills requires that transportation projects subject to CEQA review should generally follow the OPR Technical Advisory recommendations for considering the effects of transportation projects on VMT, as provided in Appendix E. In general, OPR indicates that if a project would likely lead to a measurable and substantial increase in vehicle travel, the lead agency should conduct an analysis assessing the amount of vehicle travel the project will induce.

The City of Laguna Hills VMT Scoping Form for Transportation Projects is provided in Appendix B.

Projects listed by OPR that would likely lead to a measurable and substantial increase in vehicle travel generally include:
• Addition of through lanes on existing or new highways, including general purpose lanes, HOV lanes, peak period lanes, auxiliary lanes, or lanes through grade-separated interchanges
Projects listed by OPR that would not likely lead to a substantial or measurable increase in vehicle travel, and therefore generally should not require an induced travel analysis, include:
• Rehabilitation, maintenance, replacement, safety, and repair projects designed to improve the condition of existing transportation assets (e.g., highways; roadways; bridges; culverts; Transportation Management System field elements such as cameras, message signs, detection, or signals; tunnels; transit systems; and assets that serve bicycle and pedestrian facilities) and that do not add additional motor vehicle capacity • Roadside safety devices or hardware installation such as median barriers and guardrails • Addition of an auxiliary lane of less than one mile in length designed to improve roadway safety

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• Installation, removal, or reconfiguration of traffic lanes that are not for through traffic, such as left, right, and U-turn pockets, two-way left turn lanes, or emergency breakdown lanes that are not utilized as through lanes
• Addition of roadway capacity on local or collector streets provided the project also substantially improves conditions for pedestrians, cyclists, and if applicable, transit • Timing of signals to optimize vehicle, bicycle, or pedestrian flow • Installation of roundabouts or traffic circles
• Installation or reconfiguration of traffic calming devices For a complete list of the projects listed by OPR that would not likely lead to a substantial or measurable increase in vehicle travel, please refer to the OPR Technical Advisory excerpt provided in Appendix E.

The City of Laguna Hills also recognizes that the build-out of the City’s planned circulation network is integral in achieving the local and regional transportation and land use goals and objectives, such as those identified in City’s General Plan and the SCAG RTP/SCS.

Therefore, transportation projects that consist of adding new through lane capacity to arterial highways would be presumed to have a less than significant impact, provided the improvement is less than one (1) mile in length, consistent with the established General Plan Circulation Element Roadway Classifications and the improvements can accommodate multi-modal transportation, such as pedestrian, bicycle, and transit facilities. Typically, through lane capacity projects less than one mile in length are considered minor modifications to a roadway that would not generally result in substantial changes to the travel demand patterns in the OCTAM.

Construction of other transportation facilities not expressly listed herein or in the OPR guidance document, that in the opinion of the Public Works Manager would not directly increase the VMT in the City, may be presumed to have a less than significant impact for CEQA.

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PART II - TRAFFIC IMPACT STUDY GUIDELINES

6.0 Objectives
The City of Laguna Hills has prepared these Traffic Impact Study Guidelines (TIS Guidelines) to ensure that future developments are adequately assessed with respect to General Plan Consistency from a traffic operation, level of service (LOS), site access/circulation, and parking standpoint. TIS Guidelines are needed to provide consistency throughout the City of Laguna Hills in the preparation of traffic and parking impact studies, while still allowing flexibility for a variety of potential projects.

The TIS Guidelines establish procedures that a traffic engineer preparing a study should use to adequately assess and minimize the impacts of a project during the development review and approval process.

The City’s Scoping Agreement for Traffic and Parking Studies is included in Appendix F. This scoping agreement needs to be completed by the consulting traffic engineer and approved by the city prior to commencing the actual traffic or parking impact study. The scoping agreement follows the requirements of the TIS Guidelines and ensures that the traffic engineering consultant follows the appropriate City-approved procedures when completing the study. Traffic and parking studies need to be prepared under the direction of a registered traffic engineer or civil engineer experienced in the preparation of traffic/parking studies. The study is to be signed and stamped by the responsible engineer.

7.0 Study Requirements
A variety of projects may require traffic or parking impact studies. Three levels of studies are included in these guidelines. Each level of traffic or parking impact study will require different criteria with respect to the study requirements. The following are the requirements of various types of projects:

A. A project that generates less than 50 peak hour trips and less than 500 trip-ends per day and is consistent with the zoning/general plan designation for the property would require an access circulation/parking review letter only. This type of study would analyze specific impacts at the site itself and ensure that appropriate design measures be implemented with the project.

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B. A project that adds 50 or more peak hour trips or 500 or more trip-ends per day and is consistent with the zoning/general plan designation for the property would require a traffic impact study. This study would follow the “build-up method” of traffic analysis. The analysis scenarios would include the following:
• Existing Conditions
• Existing Plus Project Conditions
• Project Opening Year with Cumulative Projects Without Project Conditions • Project Opening Year with Cumulative Projects with Project Conditions C. If a project (either public or privately initiated) requires a Zone Change or a General Plan Amendment, a General Plan Buildout Analysis without and with the Project may be required, in addition to the requirements in item B above. However, if the proposed project can prove that it generates less than or equal number of trips as the approved zoning and general plan designation for the property, then it is exempt from providing a General Plan Buildout Analysis. If the project generates more trips than the approved zoning and general plan designation for the property, then the following two additional scenarios may be required, as determined by the Planning and Engineering Divisions in addition to item B above:
• General Plan Buildout without the Project
• General Plan Buildout with Project
D. All traffic impact studies that require a General Plan Buildout analysis shall be consistent with the current OCTA version of OCTAM and the City of Laguna Hills traffic model.

8.0 Study Area
The study area for the traffic impact study should be determined in the traffic study scoping agreement, including which intersections and roadway links should be studied. Generally speaking, intersections where the project would generate 50 or more peak hour trips would be assessed as part of the study. In some cases the City may determine other intersections may be required as a result of the projects location with respect to critical nearby intersections. For smaller projects, analysis of the adjacent intersections and project driveways would be required and would be identified during the preparation of the scoping agreement.

The scoping agreement should also determine if a project has the potential to impact Congestion Management Plan (CMP) facilities in accordance with the latest CMP Traffic Impact Analysis Requirements or Caltrans controlled facilities in accordance with the latest Caltrans requirements.

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The scoping agreement should also identify intersections and roadways segments within the study area that are part of the Master Plan of Arterial Highways (MPAH).

9.0 Existing Conditions
The existing roadway conditions in the study area would be identified in this section of the study.

This would include the existing roadway classification, traffic control, roadway geometrics (lane configurations), traffic signal phasing, and existing AM/PM traffic counts and roadway segment average daily traffic volumes. Depending upon the type of project and its location, mid-day traffic counts may also be required.

All traffic counts should be obtained within one year of completion of the traffic impact study, or as approved by the Planning and Engineering Divisions. The traffic engineering consultant can consult with the City’s traffic engineer to identify potential sources of existing traffic volumes. New average daily traffic volumes should be obtained for roadway segments adjacent the project unless they are available from other sources. Other roadway segment Average Daily Traffic (ADT) volumes can be estimated from the peak hour volumes.

10.0 Project Trip Generation

10.1.1 The project trip generation should be based upon the latest edition of the Institute of Transportation Engineers (ITE) Trip Generation Manual. When data listed in the ITE Trip Generation Manual is not available or is not appropriate to use for a particular project, other sources such as San Diego Association of Government (SANDAG) Traffic Generator’s Manual or special trip generation studies can be obtained by the consultant and presented to the City staff prior to the approval of the traffic study scoping agreement. Truck intensive projects will require the trip generation to be converted to Passenger Car Equivalents (PCE’s). Any trip credit for existing operating uses should be identified.

10.1.2 Pass-by Trips – The use of pass-by trip adjustments may be allowed for appropriate land uses (i.e., gas station, fast-food restaurants, etc.) and would be approved in conjunction with the traffic study scoping agreement. The ITE Trip Generation Handbook can be consulted for pass-by trip adjustments. Project access points and intersections directly adjacent to the project shall include the full project trip generation without taking a reduction for pass-by trips.

10.1.3 Internal capture – In the case of some mixed-use projects, internal capture adjustments can be made to eliminate double counting of project trips. Again, the ITE Trip Generation Handbook or other recognized sources can be utilized to determine potential trip reductions as a result of

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internal capture. Any internal capture is to be identified and approved in the traffic study scoping agreement.

10.1.4 Transit Adjustment – In most cases, there would be no adjustment to account for potential public transit uses. However, some types of projects located in specific locations within the city may be subject to having higher transit usage. Full documentation of the transit reduction should be included and approved in the traffic impact study.

11.0 Background Traffic
Typically, for project opening year conditions without and with the project, the “build-up” method would be utilized to determine future traffic volumes. An ambient growth rate would be applied to existing traffic counts to determine the background traffic volumes in the traffic impact study.

Additionally, any cumulative (related) projects would need to be identified and accounted for in the analysis, if they occur within two miles of the project site.

A cumulative project is defined as a project application that has been deemed complete, a project that has been approved, or is under construction but not yet operating. The "cumulative projects" list can be generated by the Planning Department when approval of a scope of work is requested.

The project opening year would be based upon the time frame when the project would be fully built out and occupied. Identification of the project opening year should be included and approved in the traffic study scoping agreement.

12.0 Capacity Analysis
The capacity analysis for all project conditions should include an assessment of level of service (LOS) at signalized intersections, unsignalized intersections, project driveways, and in some cases, roadway segments. The level of service analysis would be based upon the following:

12.1.1 Intersection Capacity Utilization (ICU) methodology should be used to analyze signalized study area intersections;

12.1.2 Saturation flow value of 1,700 vehicles per lane per hour for all lanes; no adjustments are used for protected movements with dedicated lanes (including both right and left turns). An adjustment of 0.85 should be used for right turn movements where there is a right turn or “defacto” right turn lane adjacent to the curb lane (lane width equal or greater than 19-feet).

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12.1.3 A clearance interval factor of 5% (0.05) should be applied to the ICU calculations. The cycle time is 100 seconds for ICU analysis purposes.

12.1.4 The ICU Level of Service ranges are as follows:

Table 2
ICU Level of Service Description
Level of
Service
Volume to
Capacity
Ratio Description
A 0.00 - 0.60
Excellent operation. All approaches to the intersection appear quite open, turning movements are easily made, and nearly all divers find freedom of operation.

B 0.61 - 0.70
Very good operation. An occasional approach phase is fully utilized. Many drivers feel somewhat restricted within platoons of vehicles.

C 0.71 - 0.80
Good operation. Major approach phases fully utilized. Most drivers feel somewhat restricted.

D 0.81 - 0.90
Fair operation. Drivers may have to wait through more than one red signal indication. Queues may develop but dissipate rapidly, without excessive delays.

E 0.91 - 1.00
Poor operation. Volumes at or near capacity. Vehicle may wait through several signal cycles. Long queues form upstream from intersections.

F ≥1.00
Forced flow. Represents jammed conditions. Intersection operates below capacity with low volumes. Queues may block upstream intersections.

12.1.5 Weekday peak-hour analysis periods are defined as follows (unless otherwise defined in the traffic study scoping agreement):
7:00 to 9:00 AM
4:00 to 6:00 PM

12.1.6 The highest one-hour period in both the AM and PM peak periods, as determined by four consecutive 15-minute count periods should be used in the ICU calculations.

12.1.7 Variations in peak-hour volumes can affect LOS calculations, because they vary from day-to-day. To minimize these variations, no counts should be taken on Mondays, Fridays, holidays or weekends. Counts should be taken when school is in session.

12.1.8 If the distance from the edge of the outside through lane is 19 feet or greater than and parking is prohibited during the peak period, right turning vehicles may be assumed to utilize this "unofficial" right turn lane. Otherwise, all right turn traffic is assigned to the

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through lane. If a right turn lane exists, right turn activity is checked for conflicts with other critical movements. It should be assumed that right turn movements are accommodated during non-conflicting left turn phases (e.g., northbound right turns during westbound left turn phase), as well as non-conflicting through flows (e.g., northbound right turn movements and north/south through flows). Right turn movements become critical when conflicting movements (e.g., northbound right turns, southbound left turns, and eastbound through flows) represent a sum of V/C ratios that are greater than the normal through/left turn critical movements.

12.1.9 HCM Methodology: Study area intersections that are stop sign controlled with stop control on the minor street or project driveway only should be analyzed using the unsignalized intersection methodology of the latest Highway Capacity Manual. For these intersections, the calculation of level of service is dependent on the occurrence of gaps occurring in the traffic flow of the main street. The level of service should be calculated using data collected describing the intersection configuration and traffic volumes at these locations. The level of service should be determined based on the worst individual movement or movements sharing a single lane. The relationship between the level of service and delay is different than for signalized intersections.

The HCM level of service is defined for the various analysis methodologies as follows:

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Table 3
HCM Level of Service Description
LOS
Average Control Delay Per Vehicle
(Seconds)
Description Signalized Unsignalized
A 0.00 - 10.00 0.00 - 10.00
Excellent operation. All approaches to the intersection appear quite open, turning movements are easily made, and nearly all divers find freedom of operation.

B 10.01 - 20.00 10.01 - 15.00
Very good operation. An occasional approach phase is fully utilized.

Many drivers feel somewhat restricted within platoons of vehicles.

C 20.01 - 35.00 15.01 - 25.00
Good operation. Major approach phases fully utilized. Most drivers feel somewhat restricted.

D 35.01 - 55.00 25.01 - 35.00
Fair operation. Drivers may have to wait through more than one red signal indication. Queues may develop but dissipate rapidly, without excessive delays.

E 55.01 - 80.00 35.01 - 50.00
Poor operation. Volumes at or near capacity. Vehicle may wait through several signal cycles. Long queues form upstream from intersections.

F >80.00 >50.00
Forced flow. Represents jammed conditions. Intersection operates below capacity with low volumes. Queues may block upstream intersections.

For all-way stop conditions the average intersection delay/LOS should be utilized, whereas for crossstreet stop conditions the worse- case movement delay/LOS should be utilized. For Caltrans controlled intersections both the ICU and HCM level of service should be determine and presented in the traffic analysis.

13.0 Traffic Signal Warrants Analysis
A traffic signal warrant analysis should be performed for any unsignalized study area intersection that may require signalization. For existing intersections, the Caltrans Peak Hour Warrant analysis should be used for this review. For future intersections the Caltrans Average Daily Traffic warrant should be utilized. Just because the intersection may meet the Traffic Signal Warrant Criteria a traffic signal may not be the most appropriate traffic control device as a result of several other factors such as the location of adjacent signalized intersections and other conditions.

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14.0 Roadway Segment Analysis
A roadway segment analysis would only be required for a Zone Change or General Plan Amendment Traffic Analysis where the project would generate more traffic than the designated General Plan or Zoning Land uses would permit. The analysis should identify all roadways within the study area that are listed on the County’s Master Plan of Arterial Highways (MPAH).

The assessment of roadway segment level of service would be based upon the following standard ADT relationship. The City of Laguna Hills requires level of service D or better for all roadway segments.

Table 4
Roadway Segment Level of Service
Type of
Roadway
Lane
Configuration
Levels of Service

A B C D E F
Principal 8 lanes divided 45,200 52,500 60,000 67,500 75,100 - Major 6 lanes divided 33,900 39,400 45,000 50,600 56,300 - Primary 4 lanes divided 22,500 26,300 30,000 33,800 37,500 - Secondary 4 lanes undivided 15,000 17,500 20,000 22,500 25,000 - Commuter 2 lanes divided 11,300 13,200 15,000 17,000 18,800 - Commuter 2 lanes undivided 7,500 8,800 10,000 11,300 12,500 - If the above ADT analysis shows that the projected ADT values exceed Level of Service D, then a peak hour directional analysis should be completed based upon a peak hour directional capacity of 1,700 vehicles per hour per lane. To ensure adequacy of the roadway segments, directional volume/capacity (V/C) ratio would be calculated to determine if peak hour directional segment volumes would exceed a V/C ratio of 0.90.

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15.0 Level of Service Standards
The City of Laguna Hills General Plan Mobility Element level of service standard for intersections and roadway segments is LOS D. This would be appropriate for both signalized and unsignalized intersections and roadway segments listed in the MPAH. This level of service indicates an ICU or V/C ratio of 0.90 or less for signalized study intersections. It should be noted that the City’s General Plan Circulation Mobility Element recognizes that not all traffic roads are attributed to land use decisions made by the City, and that specific intersections may have physical or other constraints that create difficulties making sufficient improvements to achieve the acceptable LOS policy. Critical intersections will be identified by the city prior to completing the traffic study scoping agreement and should be identified within the traffic impact study. Additionally, any CMP designated intersections shall not exceed a LOS of E, per OCTA standards.

16.0 Level of Service Impacts
A project’s LOS impact is determined based upon the existing and projected future LOS at an intersection or roadway segment. A LOS impact is identified when an intersection or roadway segment is operating at an ICU or V/C ratio at or below 0.90 and the project causes the level to exceed 0.90 by an impact equal to or greater than 0.01. Furthermore, if an intersection or roadway segment is already operating at a LOS E or F, any ICU or V/C ratio impact equal to or greater than

0.01 would be considered a significant impact by the project. For unsignalized intersections, if the LOS with the project exceeds LOS D then a level of service impact would occur if the following conditions are met; the project increases the delay by 2-seconds or more, the project contributes 50 or more peak hour trips to the intersection, and traffic signal warrants are satisfied.

The traffic impact study should include a table identifying whether the project has a level of service impact at any of the study area intersections or roadway segments. Improvements would be required to restore traffic operations at the affected facility to pre-project conditions. For cumulative level of service impacts, a project may be eligible for paying a fair-share of the total improvement cost. A project fair share percentage table should be calculated for all facilities with cumulative impacts. The fair-share percentage should be calculated by taking the project’s traffic contribution to an affected intersection or roadway segment and dividing it by the overall growth in traffic during the future conditions.

Projects may also be eligible to participate in road fee programs (if any) and pay in-lieu fees to satisfy roadway improvement requirements.

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17.0 Site Access and Circulation Review
As part of the traffic impact study, project access and internal circulation should be reviewed based upon the proposed land uses and site plan proposed for the project. Any recommended changes to the circulation system, access or traffic control should be identified in the traffic impact study.

Where truck traffic is anticipated, truck turning templates should be reviewed for both the project driveways and internal circulation. Drive aisles and parking spaces should be designed based upon the City’s Parking Code requirements.

18.0 Parking Requirements
The parking provided by the project must be adequate to meet the anticipated use of the site.

Typically, the City’s parking code should be utilized to determine the adequacy of the parking. In some cases where there are mixed use projects a shared parking plan can be provided, per the requirements of the Laguna Hills Municipal Code (LHMC), Section 9-44.070. Except within the City’s Urban Village Specific Plan (UVSP) area, a shared parking study, based on the latest edition of the Urban Land Institute (ULI) Shared Parking document, should be provided. This study analyzes peak parking demand for each individual use and the times of the day that those uses are in greatest demand. The ULI shared parking analysis must use parking demand rates based upon the City’s parking code.

In some cases, specialized uses may require parking rates not identified in the City’s parking code.

As identified in LHMC Section 9.44.020, the Community Development Director shall have the authority to determine the appropriate parking requirements, and special parking demand studies should be provided to assess the adequacy of parking. The need for these types of studies would be identified in the scoping agreement. Data from at least three (3) similar sites should be included in any specialized studies.

19.0 Queuing Analysis
A queuing analysis may be required for certain projects (i.e., private gated communities, restaurants or pharmacies with drive-thru lanes, etc.) to ensure that adequate vehicle stacking is available in the proposed site plan. Various methodologies are available to assess project queuing including the “Crommelin Methodology” and other queuing methodologies included in the ITE Land Development Traffic Manual. As an alternative, on-site queuing studies of similar uses may be utilized to assess the queuing for a project. Observed queuing studies should be conducted at existing locations where the ADT of the adjoining roadway is similar to the site being evaluated in

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Laguna Hills. In all cases the queuing analysis should determine the 95th percentile queue length for the storage lane(s). An average vehicle length of 20-feet per vehicle should be utilized to determine the appropriate storage length.

20.0 Special Issues (if any)
In some cases, there may be special issues that may be addressed as part of the traffic or parking assessment. Special issues may depend on the specific type of land use being proposed and these will be identified in the traffic study scoping agreement.

21.0 Recommendations
The traffic study should include a list of recommendations to be incorporated as part of the project conditions. These recommendations should be included in both written and graphical form within the traffic study. If the project creates a Direct LOS Impact based upon a comparison of the Existing vs. Existing Plus Project conditions, then the project may be responsible for the full improvements that are required to meet the City’s LOS standards. If the project contributes an indirect (cumulative) LOS impact, based upon a comparison of the Opening or Future year conditions to the Opening or Future year with the Project conditions then a Fair Share contribution for the improvements would be required. The project’s fair share contribution should be identified in the recommendations section of the report.

22.0 Conclusions
A summary and conclusion section should be included to summarize the findings of the traffic study. The conclusion section would identify the impact of the proposed project and the recommended roadway improvements included in the traffic study report.

23.0 Exhibits
Exhibits should be provided to adequately describe the proposed project in graphic format. This would include a location map, site plan, existing roadway conditions and lane configuration, existing traffic volumes, project trip distribution maps, project buildout without and with the project traffic volumes, cumulative projects location map, cumulative projects trip distribution maps, cumulative projects traffic volumes, general plan buildout traffic volumes without and with

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the project (when applicable), and an exhibit showing the graphic representation of proposed project recommendations and improvements.

24.0 Tables
The traffic impact study should contain sufficient tables to identify project impacts. This would include table summaries of existing levels of service, project trip generation rates, project trip generation, existing plus project level of service, project buildout without and with the project levels of service, general plan buildout without and with the project levels of service, a summary table of all traffic levels of service considered in the traffic study, a parking requirement table, a queuing analysis table (when applicable) and a table summarizing study recommendations.

25.0 Appendices
Appendices should include traffic counts, level of service worksheets, traffic signal warrants for all study scenario conditions, queuing data, any parking related material utilized in the analysis and any relevant references utilized to complete the study.

______________________________________________________________________________ ______________________________________________________________________________ Exhibits

Does project
require CEQA
review?
Prepare VMT
Scoping Form
Does project
meet at least
one VMT
screening
criteria?
No further VMT
analysis required
Does project
generate less
than 2,400
ADT
YES
PrepareOCTAM
VMT Analysis
NO
YESYES
Implement VMT
Reduction
Mitigation
Is mitigated
VMT rate
less than
Threshold of
Significance?
Impact less than
significant with
mitigation, no
further VMT
analysis required
NO
Potentially
Significant Impact.

EIR Required
Does project
generate
500 ADT or
50 Peak Hour
Trips?
NO
Submit application
and prepare
preliminary
scoping review
Full TIA not
required.

Review access,
on-site circulation
and parking
Prepare Scoping
Agreement for
Traffic
Impact Study and
LOS Analysis
YES
Prepare Traffic
Impact Study and
LOS Analysis
Identify roadway
and intersection
improvements,
as needed
Obtain
Conditions of
Approval &
adoption of
CEQA findings
for VMT.

NO
NO
engineering group, inc. CITY OF LAGUNA HILLS TRANSPORTATION IMPACT ANALYSIS GUIDELINES Exhibit A

LOS VMT
City of Laguna Hills Transportation Impact Analysis
Flow Chart for Land Use Projects
YES

Updated: August 2025 Page 339 of 1484
______________________________________________________________________________ ______________________________________________________________________________ Appendices

Appendix A
City of Laguna Hills VMT Screening Form for Land Use Projects

PAGE 1 of 2
YES NO
YES NO
YES NO
YES NO
YES NO

21.6 VMT/Capita

25.1 VMT/Employee
VMT/Capita
VMT/Employee 1
Base year (2016) projections from OCTAM.

Trip Generation Evaluation:

YES NO
YES NO
YES NO
YES NO
Does project trip generation warrant an LOS evaluation outside of CEQA? YES - - NO - - % Trip Credit:

B. Is the Project within 1/2 mile of qualifying transit? C. Is the Project a local serving land use?
Project Name:

Project Location:

Project Description:
(Please attach a copy of the project Site Plan)
If a project requires a General Plan Amendment or Zone change, then additional information and analysis should be provided to ensure the project is consistent with RTP/SCS Strategies and RHNA Allocation Plan.

Attachments:

Citywide VMT Averages1
Citywide Home-Based VMT =
Citywide Employment VMT =
Low VMT Area Evaluation:

Attachments:

Project TAZ VMT Rate for Project TAZ1 Type of Project
Residential:

Non-Residential:

Internal Trip Credit:

Pass-By Trip Credit: % Trip Credit:

Trip Credit:

Affordable Housing Credit: % Trip Credit:

CITY OF LAGUNA HILLS

VMT SCREENING FORM FOR LAND USE PROJECTS
Source of Trip Generation:

Project Trip Generation:

Net Project Trip Generation:

E. Are the Project's Net Daily Trips less than 500 ADT? D. Is the Project in a low VMT area?
This Screening Form acknowledges the City of Laguna Hills requirements for the evaluation of vehicle miles traveled (VMT) under CEQA. The analysis provided in this form should follow the City of Laguna Hills approved TIA Guidelines, dated _______.

I. Project Description
Case Number:

Attachments:

Attachments:

Attachments:

Current GP Land Use: Proposed GP Land Use:

Existing Land Use Trip Credit:

A. Is the Project 100% affordable housing?
Average Daily Trips (ADT)
Average Daily Trips (ADT)
Attachments:

Current Zoning: Proposed Zoning:

II. VMT Screening Criteria
August 2025. 5.1. 21.0 18.6 (2019) Page 342 of 1484
CITY OF LAGUNA HILLS VMT SCOPING FORM Page 2 of 2

YES - - NO - -

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.
(Attach additional pages, if necessary, and a copy of all mitigation calculations.)

0.00%

0.00%

0.00%

0.00%
A Project is presumed to have a less than significant impact on VMT if the Project satisfies at least one (1) of the VMT screening criteria. - -
Source of VMT Reduction Estimates:

C. Percentage Reduction Required to Achieve the Citywide Average VMT:

A. Citywide Average VMT Rate (Threshold of Significance) for Mitigation Purposes:

D. VMT Reduction Mitigation Measures:

B. Is mitigation required?
- -
- - - -
B. Unmitigated Project TAZ VMT Rate: - - - -
Contact:

Address:

Prepared By
Company:

0.00%

0.00%
Contact:

Address:

Phone: Phone:

Company:

Developer/Applicant
F. Is the project presumed to have a less than significant impact with mitigation? - - If the mitigated Project VMT rate is below the Citywide Average Rate, then the Project is presumed to have a less than significant impact with mitigation. If the answer is no, then additional VMT modeling may be required and a potentially significant and unavoidable impact may occur. All mitigation measures identified in Section IV.D. are subject to become Conditions of Approval of the project. Development review and processing fees should be submitted with, or prior to the submittal of this Form. The Planning Department staff will not process the Form prior to fees being paid to the City.

Date Laguna Hills Public Services Dept. Date
Approved by:

Laguna Hills Community Development Dept.

Email:

Date:

Email:

Date:

IV. MITIGATION
If the Project does not satisfy at least one (1) of the VMT screening criteria, then mitigation is required to reduce the Project's impact on VMT.

A. Is the Project presumed to have a less than significant impact on VMT? - -
If the Project does not satisfy at least one (1) of the VMT screening criteria AND generates 2,400 or more net daily trips, then additional VMT modeling using OCTAM is required. If the project generates less than 2,400 net daily trips, the Project TAZ VMT Rate can be used for mitigation purposes.

C. Is additional VMT modeling required to evaluate Project impacts? III. VMT Screening Summary
Project Location Setting
- -
VMT Reduction Mitigation Measure: Estimated VMT
Reduction (%)

0.00%

0.00%

0.00%

0.00%
E. Mitigated Project TAZ VMT Rate: - -

0.00%
Total VMT Reduction (%)

Appendix B
City of Laguna Hills VMT Screening Form for Transportation Projects

PAGE 1 of 1
Project No.:

Related Projects:

Project Name:

Project Limits::

Project Description:

Anticipated Date of Construction:
(Please attach a copy of the Project Improvement Plans with the appropriate project information) Company Name:

Contact Person:

Address:

Telephone:

Primary Contact Email
YES NO
YES NO
per the City's TIA Guidelines? YES NO
(See Section D for Exemptions)
D. Exemption Criteria:

1. Rehabilitation, maintenance, replacement, safety and repair projects.

2. Roadway safety or hardware installation projects.

3. Roadway shoulder or parking lane enhancements.

4. Reconfiguration of traffic lanes to accommodate turn lanes, to a left turn lanes or may other modifications to accommodate existing traffic.

5. Addition of new through lanes that are consistent with the city's general plan and circulation element that has had previous CEQ a review.

6. Installation of traffic signals, traffic control devices and TSM (transportation system management) system

7. Installation of traffic calming devices or roundabouts.

9. Conversion of streets from one way to two way operation or removal or installation of on street parking spaces.

10. Installation of traffic or other signage to facilitate traffic operations for vehicles including bicycles public transit and pedestrians.

11. Addition of new or enhanced bicycle or pedestrian facilities.

12. Installation of publicy available alternative fuel claim charging infrastructure.

YES NO

8. Installation of transit facilities including transit service, bus stops bus turnouts and any other transit related facilities.

Check all that apply:

13. Construction of other transportation facilities exempt per OPR recommendation or that in the opinion of the public service says director would not directly increase the VMT in the city.

A. Is this a City Project ?
B. Is this a Private Development Project ?
C. Does this project qualify for an Exemption
Agency doing the Construction

CITY OF LAGUNA HILLS VMT SCREENING FORM FOR TRANSPORTATION PROJECTS This Review Form acknowledges the City of Laguna Hills requirements for the CEQA Transportation evaluation of the following Transportation project with respect to Vehicle Miles Traveled. The analysis provided in this form must follow the City of Laguna Hills Approved TIA Guidelines, dated ______.) Revised on:

Approved on:

Laguna Hills Public Services Dept.

Date:

Consultant
E. Does the project require OCTAM VMT modeling to determine the impact on induced travel? Recommended by: Approved by:

Consultant's Representative:

Date:

Laguna Hills Planning Department:

Date:

Note: The Transporation Project Scoping Form and appropriate fee must be submitted with, or prior to submittal of this form. The Engineering Department staff will not process the Form prior to the fee being paid to the City.

Appendix C
Evaluation of Daily Trip Screening Criteria

City of Laguna Hills
TIA Guidelines for CEQA
Appendix C-1
Appendix C: Evaluation of Daily Trip Screening Criteria The City of Laguna Hills recognizes projects that generate less than 500 Average Daily Traffic (ADT) would generally be assumed to cause less than significant transportation impact under CEQA. This is consistent with the general concept recommended by OPR for small project screening. However, OPR recommends that absent substantial evidence indicating that a project would generate a potentially significant level of VMT, or inconsistency with a Sustainable Communities Strategy (SCS) or general plan, projects that generate or attract fewer than 110 ADT generally may be assumed to cause a less than significant transportation impact. This section provides further analysis and evidence for justifying the City of Laguna Hills Daily Trip Screening Criteria.

1. Impact to Total Citywide VMT
The following analysis was prepared to look at how an individual project’s ADT would contribute to changes in the total citywide VMT. OCTAM base year 2016 statistics were used to show potential changes from developments of varying size. Table C-1 shows the change in citywide VMT from six (6) different land use projects that generate 110 ADT, 250 ADT, 500 ADT and 2,400 ADT.

As shown in Table C-1, the incremental change in the citywide VMT from a project that generates 500 ADT would range from approximately 0.1% to 0.33% increase. While the increase is approximately 4.5 times higher than a project that generates 110 ADT, the relative change is still considered insignificant in comparison to the total citywide VMT and it would not be expected to significantly change the City’s VMT efficiency rates. Thus, a project that generates 500 ADT would have the potential to meet the criteria for a small project in the City of Laguna Hills.

Table C-1
Evaluation of Screening Criteria
Land Use 110 ADT1
250 ADT1 500 ADT1 2,400 ADT1
Residential
Single Family (DU) 11 26 53 254.4
Percent Increase in Citywide VMT 0.04% 0.10% 0.20% 0.96% Multifamily (DU) 15 34 68 326.4
Percent Increase in Citywide VMT 0.06% 0.13% 0.26% 1.23% Senior Housing (DU) 29 67 135 648
Percent Increase in Citywide VMT 0.07% 0.16% 0.33% 1.56% Employment
General Office (TSF) 11.3 25.65 51.3 246.2
Percent Increase in Citywide VMT 0.06% 0.13% 0.26% 1.23% General Retail (TSF) 2.9 6.6 13.2 63.4
Percent Increase in Citywide VMT 0.02% 0.05% 0.10% 0.47% General Light Industrial (TSF) 22.2 50.4 100.8 531.8
Percent Increase in Citywide VMT 0.06% 0.14% 0.28% 1.33% 1 ADT calculated based on ITE Trip Generation Manual, 10th Edition, 2017. 2019 Page 347 of 1484
City of Laguna Hills
TIA Guidelines for CEQA
Appendix C-2
The statistical data from OCTAM base year 2016 that was used for evaluating the screening criteria in Table C-1 is provided in Table C-2 for reference.

Table C-2
OCTAM Base Year 2012 Stats
Home-based VMT per Capita 21.6
Home-based work VMT per Employee 25.1
Total Population 33,776
Total Employment 18,482
Total Occupied Households 11,517
Population per Occupied Household 2.93
Population per Senior Household* 1.87
Office Employees per TSF* 3.33
Retail Employees per TSF* 5.00
Industrial Employees per TSF* 1.67
Total Citywide VMT 1,675,477
*Estimated from other sources

2. Impact to GHG Emissions
GHG emissions from mobile sources (i.e. cars and trucks) are typically the largest source of operational emissions generated by a land use project. The quantity of GHG emissions generated by mobile sources is positively correlated to VMT; the more VMT a project generates, the more GHG emissions it will generate. Since SB 743 seeks to reduce GHG emissions through the reduction of VMT, the VMT screening criteria should ensure that all potential projects that are presumed to be less than significant for transportation would also be less than significant for greenhouse gas.

This section provides a brief analysis, evidence and quantification of GHG emissions based on the recommended daily trip screening criteria of 500 ADT and compares the results to the SCAQMD Interim CEQA GHG Significance Thresholds. The California Emissions Estimator Model Version 2016.3.2 (CalEEMod) was used to calculate GHG emissions for six (6) common land uses in the City of Laguna Hills. CalEEMod is a statewide land use emissions computer model developed for the California Air Pollution Control Officers Association (CAPCOA) in collaboration with the California air districts.

Estimates of mobile source emissions require information on three parameters: VMT (trip generation x trip length), vehicle fleet mix, and emission factors (quantity of emission for each mile traveled or time spent idling by each vehicle).