Agenda packet — Newport Beach City Council, January 13, 2026 (part 2 of 3)

host of professional consultants, in addition to in -house engineering , construction management, and inspection staff.

The City traditionally contracts out a large portion of necessary engineering services, and for larger projects, separate requests for proposals (RFPs) are issued to the engineering community. However, for smaller projects , a formal RFP is not cost -effective or time - efficient for the City nor the consulting community. To address these types of projects, the City uses on-call professional services contracts. Over the past three years, five engineering firms with existing on -call agreements with the City have provided design services for a total of $1.5 million.

In March 2025 , staff requested statements of qualifications (SOQs) to provide civil engineering planning, design and construction support services to replace the existing group of on-call consultants, whose agreements are set to expire or have reached their not-to-exceed fee limits . Forty-four firms submitted SOQs to the City. Based on the submittals, staff requested on-call proposals from 12 of those firms, of which 12 submitted responses and were reviewed in detail. The following is a ranking of the firms that submitted responses:

Firm Name Total Score Rank
Stantec Consulting Services, Inc. 282 1
Dudek 274 2
Michael K. Nunley & Associates, Inc. (MKN) 273 3
DMc Engineering 269 4
Tait & Associates, Inc. 268 5
Q3 Consulting, Inc. 265 6
Tetra Tech 256 7
Dokken 251 8
X Engineering 250 9
NV5 248 10
Rick Engineering 247 11
Ardurra Group 246 12

The City’s proposal review team consisted of three staff members from the Public Works Department. Using a qualification-based selection process, the proposals were evaluated by the review team independently. Proposal evaluations were based on the consultant’s understanding of the scope of work, experience, qualifications and availability of staff.

While many firms met the minimum qualifications outlined in the request for proposal, the top six consultants were selected by the review team as the most qualified and responsive firms. All six of these firms have successfully completed similar services for other local agencies, and their billing rates are consistent with industry standards and their peers.

Three of the top six firms already have existing on-call civil engineering contracts with the City and are performing design work, however their contracts will expire in June 2026. In an effort to have continued service until the on-call contracts are due for renewal, staff is requesting approval of three new separate on-call professional services agreements with Stantec Consulting Services, Inc., DMc Engineering and Q3 Consulting, Inc., for professional civil engineering planning, design and const ruction support services . If 146
Approval of On-Call Professional Services Agreements for Civil Engineering Services January 13, 2026

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approved, each of these agreements will have a total not-to-exceed amount of $500,000 and term of five years, expiring on June 30, 2030. Projects will be assigned on a rotating basis to the on-call civil engineering firms based on their expertise or depending on the City’s requirements and the project type.

FISCAL IMPACT:

There is no direct fiscal impact related to this item as the award of the on -call contract does not create an obligation to expend funds. Funding for the work done under these on-call contracts will be expensed to individual projects within the City’s approved Operating and CIP budgets.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advanc e of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – PSA with Stantec Consulting Services, Inc.

Attachment B – PSA with DMc Engineering
Attachment C – PSA with Q3 Consulting, Inc

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ON-CALL PROFESSIONAL SERVICES AGREEMENT
WITH STANTEC CONSULTING SERVICES INC. FOR

ON-CALL CIVIL ENGINEERING CONSULTING SERVICES
THIS ON-CALL PROFESSIONAL SERVICES AGREEMENT (“Agreement") is made and entered intoas of this 13th day of January, 2026 (“EffectiveDate”), by and between the CITY OF NEWPORT BEACH, a Californiamunicipalcorporation and charter city(“City”),and STANTEC CONSULTING SERVICES INC., a New York corporation (“Consultant”),whose address is410 17th Street,Suite 1400, Denver, CO 80202, and is made with reference to the following:

RECITALS
City isa municipal corporationduly organized and validlyexistingunder the laws of the State of Californiawith the power to carryon itsbusiness as itisnow being conducted under the statutes of the State of California and the Charter of City.

City desires to engage Consultant to provide on-callcivilengineering consulting services (“Project”).

Consultant possesses the skill,experience, ability,background, certificationand knowledge to provide the professional services described in thisAgreement.

City has solicitedand received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retainConsultant to render professional services under the terms and conditions set forthinthisAgreement.

NOW, THEREFORE, itismutually agreed by and between the undersigned parties as follows:

1. TERM
The term of this Agreement shall commence on the EffectiveDate, and shall terminate on January 12, 2031, unless terminated earlieras set forth herein.

2. SERVICES TO BE PERFORMED
Consultant shall perform the on-call services described in the Scope of Services attached hereto as ExhibitA and incorporated herein by reference (“Services” or “Work”). Upon written request from the Project Administrator as defined herein, Consultant shallprovide a letterproposal forServices requested by the City (hereinafter referredto as the “LetterProposal”). The LetterProposal shallinclude the following:

2.1 2.1.1 A detailed description of the Services to be provided;

2.1.2 The positionof each person to be assigned to perform the Services and the name and contact number of the individuals to be assigned, ifavailable; Attachment A
148

2.1.3 The estimated number of hours and any anticipatedconsumable, material,or ancillarycosts to complete the Services;and

2.1.4 The time needed tofinishthe specificproject.

2.2 No Services shallbe provided untilthe ProjectAdministrator has provided writtenacceptance of the LetterProposal. Once authorized to proceed. Consultant shall diligentlyperform the dutiesinthe approved LetterProposal.

3. TIME OF PERFORMANCE
Time isof the essence inthe performance of Services under thisAgreement and Consultant shallperform the Services in accordance with the schedule included in ExhibitA and the LetterProposal. In the absence of a specificschedule, the Services shall be performed to completion in a diligentand timely manner. The failureby Consultant to strictlyadhere to the schedule setforthin ExhibitA and the LetterProposal, ifany, or perform the Servicesina diligentand timelymanner may resultin termination of thisAgreement by City.

3.1 Notwithstanding the foregoing. Consultant shall not be responsible for delays due to causes beyond Consultant’s reasonable control. However, in the case of any such delay in the Services to be provided forthe Project,each party hereby agrees to provide noticewithintwo (2)calendar days of the occurrence causing the delay to the other partyso thatalldelays can be addressed.

Consultant shallsubmit allrequests forextensions of time for performance in writingto the ProjectAdministrator as defined herein not laterthan ten (10) calendar days after the startof the condition that purportedly causes a delay. The Project Administratorshallreview allsuch requests and may grant reasonable time extensions forunforeseeable delays thatare beyond Consultant'scontrol.

For all time periods not specificallyset forth herein. Consultant shall respond in the most expedient and appropriate manner under the circumstances, by hand-delivery or mail.

3.2 3.3

3.4 4. COMPENSATION TO CONSULTANT
City shall pay Consultant for the Services on a time and expense not-to- exceed basis in accordance with the provisions of thisSection and the Letter Proposal and the Schedule of BillingRates attached hereto as Exhibit B and incorporated herein by reference. Consultant’s compensation forallWork performed in accordance with this Agreement, including allreimbursable items and subconsultant fees, shall not exceed Five Hundred Thousand Dollars and 00/100 ($500,000.00), without prior written authorizationfrom City. No billingrate changes shallbe made during the term of this Agreement without the priorwrittenapproval of City.

4.1 Upon firstanniversary of the EffectiveDate and upon each anniversary of the EffectiveDate thereafter,the billingrates set for in ExhibitB (“BillingRates") shallbe

4.2 STANTEC CONSULTING SERVICES INC. Page 2
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adjusted by a fixed amount of three percent (3.0%) of the BillingRates in effect immediately preceding such adjustment.

Consultant shall submit monthly invoices to City describing the Work performed the preceding month. Consultant’s billsshallinclude the name of the person who performed the Work, a briefdescriptionofthe Services performed and/or the specific task in the Scope of Services to which itrelates,the date the Services were performed, the number of hours spent on allWork billedon an hourly basis, and a descriptionof any reimbursable expenditures. City shall pay Consultant no laterthan thirty(30) calendar days afterapproval of the monthly invoiceby Citystaff.

4.3 Cityshallreimburse Consultant only forthose costs or expenses specifically identifiedin ExhibitB to thisAgreement and the LetterProposal or specificallyapproved inwritinginadvance by City.

Consultant shallnot receive any compensation for Extra Work performed without the priorwrittenauthorizationof City. As used herein,“Extra Work” means any Work thatisdetermined by Cityto be necessary forthe proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of BillingRates as set forthin ExhibitB and the LetterProposal.

4.4 4.5

5. PROJECT MANAGER
Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shallbe availableto City at allreasonable times during the Agreement term. Consultant has designated Jeff Wilkerson to be its ProjectManager. Consultant shallnot remove or reassign the Project Manager or any personnel listedin ExhibitA or assign any new or replacement personnel to the Project without the priorwrittenconsent of City.City’sapproval shall not be unreasonably withheld with respect to the removal or assignment of non-key personnel.

Consultant, at the sole discretionof City,shallremove from the Projectany of itspersonnel assigned to the performance of Services upon writtenrequest of City.

Consultant warrants that itwillcontinuously furnishthe necessary personnel to complete the Projecton a timelybasis as contemplated by thisAgreement.

IfConsultant isperforming inspectionservicesforCity,the ProjectManager and any otherassigned staffshallbe equipped witha cellularphone to communicate with Citystaff.The ProjectManager’s cellularphone number shallbe provided to City.

5.1 5.2

5.3 6. ADMINISTRATION
This Agreement willbe administered by the PublicWorks Department. City’s Directorof PublicWorks or designee shallbe the ProjectAdministrator and shall have the authorityto act forCityunder thisAgreement. The ProjectAdministratorshallrepresent Cityinallmatterspertainingtothe Servicesto be rendered pursuant to thisAgreement.

STANTEC CONSULTING SERVICES INC Page 3 150

7. CITY'S RESPONSIBILITIES
To assistConsultant inthe execution of itsresponsibilitiesunder thisAgreement, Cityagrees to provideaccess to and upon requestofConsultant,one copy of allexisting relevantinformationon fileat City.Citywillprovideallsuch materialsina timely manner so as not to cause delays in Consultant’sWork schedule.

8. STANDARD OF CARE

8.1 Allofthe Services shallbe performed by Consultantor under Consultant’s supervision. Consultant represents that it possesses the professional and technical personnel requiredto perform the Services requiredby thisAgreement, and that itwill perform allServices in a manner commensurate with community professional standards and with the ordinary degree of skilland care that would be used by other reasonably competent practitionersof the same disciplineunder similar circumstances. All Services shallbe performed by qualifiedand experienced personnelwho are not employed by City.

By delivery of completed Work, Consultant certifiesthat the Work conforms to the requirements of thisAgreement, allapplicablefederal,state and locallaws, and legally recognized professional standards.

8.2 Consultant representsand warrants to Citythatithas, shall obtain, and shall keep in fullforce and effectduring the term hereof, at itssole cost and expense, all licenses,permits,qualifications,insurance and approvals of whatsoever nature that is legallyrequiredof Consultantto practiceitsprofession.Consultant shallmaintain a City of Newport Beach business licenseduring the term of thisAgreement.

8.3 Consultant shall not be responsible for delay, nor shall Consultant be responsiblefordamages or be indefaultor deemed to be in defaultby reason of strikes, lockouts, accidents, acts of God, or the failureof City to furnishtimelyinformationor to approve or disapprove Consultant’s Work promptly, or delay or faultyperformance by City,contractors,or governmental agencies.

9. HOLD HARMLESS
To the fullestextent permitted by law. Consultant shallindemnify, defend and hold harmless City, itsCity Council, boards and commissions, officers,agents, volunteers and employees (collectively,the “Indemnified Parties”),from and against any and allclaims (including,without limitation,claims for bodily injury,death or damage to property), demands, obligations,damages, actions, causes of action, suits, losses, judgments, fines,penalties,liabilities,costs and expenses (including,without limitation, attorneys’fees, disbursements and court costs) of every kind and nature whatsoever (individually,a Claim; collectively,“Claims"),and which relate(directlyor indirectly)to the negligence, recklessness,or willfulmisconduct ofthe Consultant or itsprincipals,officers, agents, employees, vendors, suppliers, subconsultants, subcontractors, anyone employed directlyor indirectlyby any of them or forwhose acts they may be liable,or any or all of them.

9.1

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9.2 Notwithstanding the foregoing, nothing herein shallbe construed to require Consultant to indemnify the Indemnified Partiesfrom any Claim arisingfrom the sole negligence,activenegligence or willfulmisconduct of the Indemnified Parties. Nothing in thisindemnity shallbe construed as authorizingany award of attorneys’fees inany action on or to enforce the terms of thisAgreement. This indemnity shallapply to allclaims and liabilityregardlessof whether any insurance policiesare applicable,but only to the extent permitted by law, and not to exceed the policylimitsof Consultant’s insurance policy where applicable.

10. INDEPENDENT CONTRACTOR
Itis understood that City retainsConsultant on an independent contractor basis and Consultant isnot an agent or employee of City.The manner and means of conducting the Work are under the control of Consultant, except to the extent they are limitedby statute,ruleor regulationand the expressed terms of thisAgreement. No civilservice statusor otherrightofemployment shallaccrue to Consultant or itsemployees. Nothing in thisAgreement shallbe deemed to constituteapproval for Consultant or any of Consultant’s employees or agents, to be the agents or employees of City. Consultant shall have the responsibilityfor and control over the means of performing the Work, provided thatConsultant isincompliance withthe terms of thisAgreement. Anything in thisAgreement thatmay appear to giveCitythe rightto direct Consultant as to the details of the performance of the Work or to exercise a measure of control over Consultant shall mean onlythatConsultantshallfollowthe desiresof Citywith respect to the resultsof the Services.

11. COOPERATION
Consultant agrees to work closelyand cooperate fullywith City’s designated ProjectAdministratorand any otheragencies thatmay have jurisdictionor interestinthe Work to be performed. Cityagrees to cooperate withthe Consultant on the Project.

12. CITY POLICY
Consultant shall discuss and review allmatters relatingto policy and Project directionwithCity’sProjectAdministratorinadvance of allcriticaldecision points inorder to ensure the Projectproceeds ina manner consistentwith City goals and policies.

13. PROGRESS
Consultant is responsiblefor keeping the ProjectAdministratorinformed on a regularbasisregardingthe statusand progressofthe Project,activitiesperformed and planned,and any meetingsthathave been scheduledor are desired.

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of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as ExhibitC, and incorporated herein by reference.

15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specificallyauthorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the priorwrittenapproval of City. Any of the followingshallbe construed as an assignment; The sale, assignment, transferor other disposition of any of the issued and outstanding capitalstock of Consultant, or of the interestof any general partner or jointventurer or syndicate member or cotenant ifConsultant isa partnershipor joint-ventureor syndicate or co-tenancy, which shall resultin changing the control of Consultant. Control means fiftypercent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation,partnership or joint-venture.

16. SUBCONTRACTING
The subcontractors authorized by City,ifany, to perform Work on thisProject are identifiedin ExhibitA and the Letter Proposal. Consultant shall be fullyresponsible to City for allacts and omissions of any subcontractor. Nothing in this Agreement shall create any contractualrelationshipbetween Cityand any subcontractor nor shallitcreate any obligationon the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiaryof any Work performed by the subcontractor for purposes of establishinga duty of care between the subcontractor and City.Except as specificallyauthorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the priorwrittenapproval of City.

17. OWNERSHIP OF DOCUMENTS

17.1 Each and every report,draft,map, record, plan,document and other writing produced, including but not limited to, websites, blogs, social media accounts and applications(hereinafter“Documents”), prepared or caused to be prepared by Consultant, itsofficers,employees, agents and subcontractors,in the course of implementing this Agreement, shallbecome the exclusiveproperty of City,and City shallhave the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Additionally,allmaterial posted in cyberspace by Consultant, itsofficers, employees, agents and subcontractors, in the course of implementing this Agreement, shallbecome the exclusive property of City,and Cityshallhave the sole rightto use such materials in itsdiscretionwithout furthercompensation to Consultant or any other party.

Consultant shall,at Consultant’s expense, provide such Documents, including alllogins and password informationto City upon priorwrittenrequest.

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Consultant willbe at City’ssole riskand without liabilityto Consultant. Further,any and allliabilityarisingout of changes made to Consultant’sdeliverablesunder thisAgreement by City or persons other than Consultant iswaived against Consultant,and Cityassumes fullresponsibilityforsuch changes unless Cityhas given Consultant priornoticeand has received from Consultant writtenconsent forsuch changes.

17.3 Computer Aided Design and Drafting(“CADD”) data deliveredto City shall includethe professionalstamp of the engineer or architectincharge of or responsible for the Work. City agrees that Consultant shallnot be liable for claims, liabilitiesor losses arising out of, or connected with (a) the modification or misuse by City, or anyone authorized by City,of CADD data; or (b)any use by City,or anyone authorized by City, of CADD data foradditionsto thisProject,forthe completion of thisProject by others, or forany other Project,excepting only such use as isauthorized, inwriting,by Consultant.

By acceptance of CADD data. City agrees to indemnify Consultant for damages and liabilityresultingfrom the modificationor misuse of such CADD data. Alloriginaldrawings shallbe submitted to City inthe version of AutoCAD used by the City in .dwg fileformat, and should comply with the City’sdigitalsubmission requirements forimprovement plans availablefrom the City’sPublic Works Department.

17.4 All improvement and/or construction plans shall be plotted on standard twenty-four inch (24”)by thirty-sixinch (36”)paper size.Consultant shallprovide to City digital‘As-Built’drawings in both AutoCAD and Adobe PDF fileformat within thirty(30) days afterfinalizationof the Project.

18. OPINION OF COST
Any opinion of the construction cost prepared by Consultant represents the Consultant’sjudgment as a design professionaland issupplied forthe general guidance of City. Since Consultant has no controlover the cost of labor and material, or over competitive bidding or market conditions.Consultant does not guarantee the accuracy of such opinions as compared to Consultant or contractor bids or actualcost to City.

19. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shallbe kept confidential unless City expressly authorizes inwritingthe release of information.

20. INTELLECTUAL PROPERTY INDEMNITY
Consultant shall defend and indemnify City, itsagents, officers,representatives and employees against any and allliability,including costs, for infringement or alleged infringementof any United States’letterspatent,trademark, or copyright,includingcosts, contained in Consultant’s Documents provided under thisAgreement.

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21. RECORDS
Consultant shallkeep records and invoices in connection with the Services to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City,fora minimum period of three (3)years, or for any longer period required by law, from the date of finalpayment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable.

Consultant shallallow a representative of City to examine, audit and make transcriptsor copies of such records and invoicesduring regularbusiness hours. Consultant shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of finalpayment to Consultant under thisAgreement.

22. WITHHOLDINGS
Citymay withholdpayment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitutea failureto pay according to the terms of thisAgreement. Consultant shallnot discontinue Work as a resultof such withholding. Consultant shall have an immediate rightto appeal to the City Manager or designee with respect to such disputed sums.

Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on itsinvestments during the time period,from the date of withholdingof any amounts found to have been improperly withheld.

23. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which resultin expense to City greater than what would have resulted ifthere were not errors or omissions in the Work accomplished by Consultant, the additional design, construction and/or restoration expense shall be borne by Consultant. Nothing in thisSection is intended to limitCity’srightsunder the law or any other sections of thisAgreement.

24. curs RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the rightto employ other Consultants in connection with the Project.

25. CONFLICTS OF INTEREST

25.1 Consultant or its employees may be subject to the provisions of the CaliforniaPoliticalReform Act of 1974 (the “Act”)and/or Government Code §§ 1090 ^ seq.. which (1) require such persons to disclose any financial interest that may foreseeablybe materiallyaffectedby the Work performed under thisAgreement, and (2) prohibitsuch persons from making, or participatingin making, decisions that will foreseeably financiallyaffectsuch interest.

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25.2 Ifsubjectto the Act and/or Government Code §§ 1090 et seq.. Consultant shallconform to allrequirements therein. Failureto do so constitutes a material breach and is grounds for immediate termination of thisAgreement by City. Consultant shall indemnify and hold harmless City for any and allclaims for damages resultingfrom Consultant’s violation of this Section.

26. NOTICES

26.1 All notices, demands, requests or approvals, including any change in mailingaddress, to be given under the terms of thisAgreement shallbe given inwriting, and conclusively shall be deemed served when delivered personally, or on the third business day afterthe deposit thereof in the United States mail, postage prepaid, first- class mail,addressed as hereinafterprovided.

26.2 All notices,demands, requests or approvals from Consultant to City shall be addressed to City at:

Attn: Director of Public Works
Public Works Department
Cityof Newport Beach
100 Civic Center Drive
Newport Beach, CA 92658

26.3 All notices, demands, requests or approvals from City to Consultant shall be addressed to Consultant at:

Attn: Jeff Wilkerson
Stantec Consulting Services Inc.
38 Technology Drive,Suite 200
Irvine,CA 92618

27. CLAIMS
Unless a shortertime isspecifiedelsewhere inthisAgreement, before making its finalrequestforpayment under thisAgreement, Consultantshallsubmit to City,inwriting, all claims for compensation under or arising out of this Agreement. Consultant’s acceptance of the finalpayment shallconstitutea waiver of allclaims for compensation under or arisingout of thisAgreement except those previously made in writingand identifiedby Consultantinwritingas unsettledatthe time of itsfinalrequest forpayment.

Consultantand Cityexpresslyagree thatinadditionto any claims filingrequirements set forthintheAgreement, Consultantshallbe requiredto fileany claim Consultant may have againstCityinstrictconformance withthe Government Claims Act (Government Code sections 900 et seq.).

28. TERMINATION

28.1 Intheevent thateitherpartyfailsor refuses to perform any of the provisions ofthisAgreement atthe time and inthe manner required,that party shallbe deemed in STANTEC CONSULTING SERVICES INC. Page 9 156
defaultinthe performance of thisAgreement. Ifsuch defaultisnot cured withina period of two (2) calendar days, or ifmore than two (2)calendar days are reasonably required to cure the default and the defaultingparty failsto give adequate assurance of due performance within two (2) calendar days afterreceiptof written notice of default, specifyingthe nature of such defaultand the steps necessary to cure such default,and thereafterdiligentlytake steps to cure the default,the non-defaultingparty may terminate the Agreement forthwithby givingtothe defaultingparty writtennotice thereof.

28.2 Notwithstanding the above provisions,City shallhave the right,at itssole and absolute discretionand without cause, of terminatingthisAgreement at any time by giving no less than seven (7) calendar days’ priorwritten notice to Consultant. In the event of termination under this Section, City shall pay Consultant for Services satisfactorilyperformed and costs incurredup tothe effective date of termination for which Consultant has not been previouslypaid. On the effectivedate of termination. Consultant shall deliver to City all reports, Documents and other information developed or accumulated inthe performance of thisAgreement, whether in draft or final form.

29. STANDARD PROVISIONS

29.1 Recitals.Cityand Consultant acknowledge thatthe above Recitals are true and correctand are hereby incorporated by reference intothisAgreement.

29.2 Compliance with allLaws. Consultant shall,at itsown cost and expense, comply with allstatutes,ordinances, regulationsand requirements of allgovernmental entities,includingfederal,state,county or municipal,whether now in force or hereinafter enacted. In addition,allWork prepared by Consultant shall conform to applicable City, county, stateand federallaws, rules,regulationsand permit requirements and be subject to approval of the ProjectAdministratorand City.

29.3 Waiver. A waiver by eitherparty of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or conditioncontained herein, whether of the same or a different character.

29.4 Integrated Contract. This Agreement represents the fulland complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminarynegotiationsand agreements of whatsoever kind or nature are merged herein.

No verbal agreement or implied covenant shallbe held to vary the provisions herein.

29.5 Conflicts or Inconsistencies. In the event there are any conflictsor inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto,the terms of thisAgreement shallgovern.

29.6 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against eitherparty by reason of the authorship of the Agreement or any other rule of constructionwhich might otherwise apply.

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29.7 Amendments. This Agreement may be modified or amended only by a writtendocument executed by both Consultant and City and approved as to form by the City Attorney.

29.8 Severability.Ifany term or portionof thisAgreement is held to be invalid, illegal,or otherwise unenforceable by a court of competent jurisdiction,the remaining provisionsof thisAgreement shallcontinue infullforce and effect.

29.9 Controlling Law and Venue. The laws of the State of Californiashallgovern this Agreement and all matters relatingto itand any action brought relatingto this Agreement shall be adjudicated in a court of competent jurisdictionin the County of Orange, State of California.

29.10 Equal Opportunity Employment. Consultant represents that itis an equal opportunity employer and itshallnot discriminateagainst any subcontractor,employee or applicant for employment because race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, sexual orientation, age or any other impermissible basis under law.

29.11 No Attorneys’ Fees. Inthe event of any dispute or legalactionarisingunder thisAgreement, the prevailingparty shallnot be entitledto attorneys’fees.

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IN WITNESS WHEREOF, the partieshave caused thisAgreement to be executed on the dates written below.

APPROVED AS TO FORM;
CITY ATTORNEY’S OFFICE
Date:

CITY OF NEWPORT BEACH,
a Californiamunicipal corporation
Date:

By: fir By:

Aaron C. Harp |t-\1-Z6A0
City Attorney
Lauren Kleinman
Mayor
ATTEST;
Date:

CONSULTANT: STANTEC
CONSULTING SERVICES INC., a New
York corporation
Date;
By: By:

Lena Shumway
City Clerk
Jeff Wilkerson
Senior Associate
Date:

By:

David Elwell
Vice President
[END OF SIGNATURES]
Attachments: ExhibitA - Scope of Services
ExhibitB - Schedule of BillingRates
Exhibit C - Insurance Requirements

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EXHIBIT A

SCOPE OF SERVICES
STANTEC CONSULTING SERVICES INC. Page A-1 160

SCOPE OF SERVICES

ON-CALL CIVIL - SCOPE OF SERVICES
Consultant shallprovide CivilEngineering servicesforthe conceptual and finaldesign of a wide varietyof City capitalimprovement and maintenance projects. Consultant shall provide in- house services,or capacity to subconsultant, for the following areas:

Provide fullplans, specifications,and estimates for a broad range of civilengineering disciplines;
Provide cost estimating and value engineering services; Provide bid support and preparation of record drawings; Provide constructionsupport, administration,and management services; Provide constructiontrafficcontrolconcepts and plans;
Provide project-specificprofessionalsurveying services; Review public/privatedevelopment plans and maps;
Provide regulatory permitting support;
Prepare various studies and supporting documentation for,but not limited to, hydrology and hydraulicanalysis,water and sewer studiesand network analysis; Prepare/review NPDES reports.Water Quality Management Plan (WQMP), and Storm Water PollutionPrevention Plans (SWPPP);
Prepare maps and legaldescriptionsfor right-of-wayacquisitionsand easements; and Other engineering-related tasks as necessary.
161

EXHIBIT B

SCHEDULE OF BILLING RATES
STANTEC CONSULTING SERVICES INC. Page B-1 162
Dear Ben Davis,
Per your RFP, we are providing our Fee Schedule
showing our proposed billingrates inthisseparate
document. The rates outlined herein shall remain in
effectforthe fulldurationof the five-yearAgreement.

We also assume thatthey shallescalate annually on
January 1st by 3%, or as otherwise agreed upon in
writingby both parties,to reflectincreases in labor and overhead costs.

At Stantec, we stronglybelieve that the measurement
of value ispartiallyreferencedfrom pricing,but also
from credentialsand capabilities.Our rateswere
created with an understanding of thisbalance.

Should you have any questions or requireadditional
informationabout our fee proposal,please contactJeff
Wilkerson or Sherry Weinmeier at the contact
Information below.
(5 stantec
October 23^",2025
StantecConsultingServices
Inc.
38 TechnologyDrive,Suite200
Irvine,CA 92618
Attention:

CityofNewportBeach
Ben Davis,SeniorCivilEngineer
949-644-3317
[email protected]
Sincerely,
STANTEC CONSULTING SERVICES INC.

Reference:

RFP #26-13
On-Call Professional Civil
EngineeringServices
SherryWeinmeier,PE
Principal-in-Charge
949-584-7231
[email protected]
(JJeff Wilkerson
ProjectManager
949-929-1449
[email protected]
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StantecSCHEDULE OF BILLING RATES - 2026 City of Newport Beach Civil On>Call Billing
Level
Hourly
Rate Description
Junior Level position
□ Independently carriesout assignments of limitedscope using standard procedures, methods, and techniques
□ Assistssehior staffin carrying out more advanced procedures □ Completed work isreviewed for feasibilityand soundness of judgment □ Graduate from an appropriate post-secondary program or equivalent □ Generally, one to three years’ experience
FullyQualified ProfessionalPosition
□ Carries out assignments requiringgeheral familiaritywithin a broad fieldof the respective profession □ Makes decisions by using a combination of standard methods and techniques □ Actively participatesin planning to ensure the achievement of objectives □ Works independently to interpretinformation and resolve difficulties □ Graduate from an appropriate post-secondary program, with credentials or equivalent □ Generally, three to sixyears' experience
$1273
$1384
$1585
$1626
$1747
$1848
FirstLevel Supervisoror firstcomplete Level of Specialization □ Provides applied professionalknowledge and initiativein planning and coordinating work programs □ Adapts established guidelinesas necessary to address unusual issues □ Decisions accepted as technicallyaccurate, however may on occasion be reviewed forsoundness of judgment
□ Graduate from an appropriate post-secondary program, with credentials or equivalent □ Generally, fiveto nine years’ experience
$1909
$19810
11 $214
HighlySpecializedTechnicalProfessionalor Supervisorof groups of professionals □ Provides multi-disciplineknowledge to deliverinnovativesolutions in related fieldof expertise □ Participatesinshort-and long-range planning to ensure the achievement of objectives □ Makes responsibledecisionson allmatters,includingpolicy recommendations, work methods, and financialcontrolsassociated with large expenditures
□ Reviews and evaluates technical work
□ Graduate from an appropriate post-secondary program, with credentials or equivalent □ Generally, ten to fifteenyears' experience with extensive, broad experience Senior Level Consultant or Management
□ Recognized as an authorityina specificfieldwithqualificationsof significantvalue □ Provides multi-disciplineknowledge to deliverinnovativesolutionsin related fieldof expertise □ Independently conceives programs and problems forinvestigation □ Participatesindiscussionsto ensure the achievement of program and/or project objectives □ Makes responsibledecisionson expenditures,includinglarge sums or implementation of major programs and/or projects
□ Graduate from an appropriate post-secondary program, with credentials or equivalent □ Generally,more than twelve years’experience withextensive experience $22612
$23713
14 $250
$26415
$29116
$30217
SeniorLevelManagement under review by Vice Presidentor higher □ Recognized as an authorityina specificfieldwithqualificationsof significantvalue □ Responsibleforlong range planning withina specificarea of practice or region □ Makes decisions which are farreaching and limitedonly by objectivesand policiesof the organization □ Plans/approves projectsrequiringsignificanthuman resources or capital investment □ Graduate from an appropriate post-secondary program, with credentials or equivalent □ Generally,fifteenyears'experience with extensiveprofessionaland management experience $30818
$32019
$33220
$35221
Regular Rate
$255
Crew Size
1-Person
2-Person
3-Person
Survey Crews
$385
$515
Note; The rates outlined herein shaH remain in effect for the fullduration of the five-year Agreement. We also assume thatthey shallescalateannuallyon January 1stby 3%, or as otherwise agreed upon in writingby both parties, to reflect increases in labor and overhead costs.

ExpertWitnessServicescarrya 50% premium on labor.Overtime may be charged at 1.5times the standard billingrate.

Allexpertfeesand overtimefeesshallbe approved inwritingby the Citypriorto being incurred.

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EXHIBIT C

INSURANCE REQUIREMENTS - PROFESSIONAL CONSULTING SERVICES Provisionof Insurance. Without limitingConsultant’sindemnificationof City, and priorto commencement of Work, Consultant shall obtain, provide and maintain at itsown expense during the term of this Contract, policies of insurance of the type and amounts described below and ina form satisfactory to City. Consultant agrees to provide insurance in accordance with requirements setforthhere.IfConsultant uses existingcoverage to comply and thatcoverage does not meet these requirements.Consultant agrees to amend, supplement or endorse the existingcoverage.

1. 2. Acceptable Insurers. All insurance policiesshall be issued by an insurance company currentlyauthorized by the Insurance Commissioner to transact business of insurance inthe State of California,with an assigned policyholders’ Rating of A- (or higher)and FinancialSize Category Class VII (or larger)in accordance withthe latesteditionof Best’sKey Rating Guide, unless otherwise approved by the City’sRisk Manager.

3. Coverage Requirements.

A. Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance providingstatutorybenefitsand Employer’s LiabilityInsurance with limitsof at leastone milliondollars($1,000,000) each employee for bodily injuryby accident and each employee for bodily injuryby disease in accordance with the laws of the State of California.

Consultant shallsubmit to City,along with the certificateof insurance, a Waiver of Subrogation endorsement in favor of City,itsCity Council, boards and commissions, officers,agents, volunteers and employees.

B. General Liability Insurance. Consultant shall maintain commercial general liabilityinsurance, and ifnecessary excess/umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than two million dollars($2,000,000)per occurrence, four milliondollars($4,000,000) general aggregate. The policy shall cover liabilityarisingfrom bodily injury,property damage, personal and advertising injury,and liability assumed under an insured contract (includingthe tortliabilityof another assumed in a business contract).

C. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodilyinjuryand propertydamage forallactivities of Consultant STANTEC CONSULTING SERVICES INC. Page C-1 165
arisingout of or in connection with Work to be performed under this Contract,includingcoverage forany owned, hired,non-owned or rented vehicles,in an amount not lessthan one milliondollars($1,000,000) combined singlelimitforeach accident.

D. Professional (Errors & Omissions) Insurance. Consultant shall maintain professionalliabilityinsurance thatcovers the Services to be performed inconnection with thisAgreement, inthe minimum amount of two million dollars($2,000,000)per claim and four milliondollars($4,000,000) in the aggregate. Any policyinceptiondate, continuitydate, or retroactive date must be before the EffectiveDate ofthisAgreement and Consultant agrees to maintain continuous coverage through a period no less than three years aftercompletion of the Services requiredby thisAgreement.

Excess/Umbrella LiabilityInsurance. Ifany Excess or Umbrella Liability policiesare used to meet the limitsof liabilityrequiredby this contract, then said policiesshall be “followingform” of the underlying policy coverage, terms, conditions, and provisions and shall meet all of the insurance requirements stated inthiscontract,including,but not limited to, the additionalinsured and primary & non-contributoryinsurance requirements stated herein. No insurance policiesmaintained by the City,whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess/umbrella liabilitypolicies are exhausted.

Other Insurance Requirements. The policiesare to contain,or be endorsed to contain,the followingprovisions:

4. A. Waiver of Subrogation. Allinsurance coverage maintained or procured pursuant to thisContract shallbe endorsed to waive subrogation against City, its City Council, boards and commissions, officers,agents, volunteers and employees, or shall specificallyallow Consultant or others providing insurance evidence in compliance with these requirements to waive theirrightof recovery priorto a loss. Consultant hereby waives itsown rightof recovery against City,and shall require similarwrittenexpress waivers and insurance clauses from each of its subcontractors.

B. AdditionalInsured Status. Allliabilitypoliciesincludinggeneral liability, excess/umbrella liability,and automobile liability,if required, but not includingprofessional liability,shall provide or be endorsed to provide that City, itsCity Council, boards and commissions, officers,agents, volunteers and employees shall be included as additional insureds under such policies.

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c. Primary and Non-Contributory. Consultant’s insurance coyerage shall be primary insurance and/or the primary source of recoyery with respect to the City,itsCity Council, boards and commissions, officers,agents, yolunteersand employees. Allliabilitycoyerage shallapply on a primary basis and shall not require contributionfrom any insurance or self- insurance maintained by City.

D. Notice of Cancellation. All policiesshall proyide City with thirty(30) calendar days’ notice of cancellation or nonrenewal of coyerage (except for nonpayment forwhich ten (10) calendar days’ notice is required)for each required coyerage.

Additional Agreements Between the Parties. The parties hereby agree to the following;

5. A. Eyidence of Insurance. Consultant shallproyide certificatesof insurance to City as eyidence of the insurance coyerage required herein, along with a waiyer of subrogation endorsement for workers’ compensation and other endorsements as specified herein for each coyerage. Allof the executed documents referenced in this Contract must be returned to City withinten
(10) regularCity business days afterthe date on the "Notification of Award”. Insurance certificates and endorsements must be approyed by City’sRisk Manager priorto commencement of performance. Current certificationof insurance shallbe kept on filewith City at alltimes during the term of this Contract. The certificates and endorsements for each insurance policyshallbe signed by a person authorized by that insurer to bind coyerage on itsbehalf. At least fifteen(15) days priorto the expirationof any such policy,eyidence of insurance showing that such insurance coyerage has been renewed or extended shallbe filed with the City. Ifsuch coyerage is cancelled or reduced. Consultant shall, withinten (10) days afterreceiptof writtennoticeof such cancellation or reduction of coyerage, filewith the City eyidence of insurance showing that the required insurance has been reinstated or has been proyided through another insurance company or companies. City reseryes the right to require complete, certifiedcopies of all required insurance policies,at any time.

B. City’sRight to Reyise Requirements. The City reseryes the rightat any time during the term of the Contract to change the amounts and types of insurance required by giying Consultant ninety (90) calendar days’ adyance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant’s compensation.

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c. Rightto Review Subcontracts.Consultantagrees thatupon request, all agreements with subcontractors or others with whom Consultant enters intocontractswithon behalfof Citywillbe submittedto City for review.

FailureofCityto requestcopiesofsuch agreements willnot impose any liabilityon City,or itsemployees. Consultantshallrequire and verifythat allsubcontractorsmaintain insurance meeting allthe requirements statedherein,and Consultantshallensure thatCityis an additional insured on insurance requiredfrom subcontractors.ForCGL coverage, subcontractorsshallprovidecoverage with a format at least as broad as CG 20 38 04 13.

D. Enforcement ofAgreement Provisions.Consultantacknowledges and agrees that any actualor allegedfailureon the partof City to inform Consultant of non-compliance with any requirement imposes no additionalobligationson Citynor does itwaive any rightshereunder.

E. Reguirements not Limiting.Requirements of specificcoverage features or limits contained in this Section are not intended as a limitation on coverage, limitsor other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage featureisforpurposes of clarificationonly as itpertains to a given issueand isnot intendedby any partyor insuredto be allinclusive, or to the exclusionof other coverage, or a waiver of any type. Ifthe Consultant maintainshigherlimitsthan the minimums shown above, the City requires and shall be entitledto coverage for higher limits maintained by the Consultant. Any availableproceeds in excess of specifiedminimum limitsof insuranceand coverage shall be available to the City.

F. Self-InsuredRetentions. Any self-insuredretentionsmust be declared to and approved by City.City reserves the rightto require that self- insured retentionsbe eliminated,lowered, or replaced by a deductible.

Self-insurancewillnot be consideredto comply withthese requirements unless approved by City.

G. City Remedies for Non-Compliance. IfConsultant or any subconsultant failsto provide and maintain insurance as required herein, then City shallhave the rightbut notthe obligation,to purchase such insurance, to terminate thisAgreement, or to suspend Consultant’s rightto proceed untilproper evidence of insurance is provided. Any amounts paid by City shall,at City’ssole option,be deducted from amounts payable to Consultant or reimbursed by Consultant upon demand.

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H. Timely Notice of Claims. Consultant shallgive City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under thisContract, and that involve or may involve coverage under any of the required liabilitypolicies.City assumes no obligationor liabilityby such notice,but has the right(but not the duty) to monitor the handling of any such claim or claims ifthey are likelyto involveCity.

Consultant's Insurance. Consultant shallalso procure and maintain, at itsown cost and expense, any additionalkinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

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ON-CAL

L PROFESSIONAL SERVICES AGREEMENT
WITH DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING FOR

ON-CALL CIVIL ENGINEERING CONSULTING SERVICES
THIS ON-CALL PROFESSIONAL SERVICES AGREEMENT (“ Agreement”) is made and entered into as of this 13th day of January, 2026 (“Effective Date”), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city (“City”), and DEREK J. MCGREGOR, INC., doing business as (“DBA”) DMc ENGINEERING, a California corporation (“Consultant”), whose address is 18 Technology Drive, Suite 100, Irvine, CA 92618, and is made with reference to the following:

RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City.

B. City desires to engage Consultant to provide on-call civil engineering consulting services (“Project”).

C. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the professional services described in this Agreement.

D. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement.

NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:

1. TERM
The term of this Agreement shall commence on the Effective Date , and shall terminate on January 12, 2031, unless terminated earlier as set forth herein.

2. SERVICES TO BE PERFORMED

2.1 Consultant shall perform the on- call consulting services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference (“Services” or “Work”). Upon written request from the Project Administrator as defined herein, Consultant shall provide a letter proposal for Services requested by the City (hereinafter referred to as the “Letter Proposal”). The Letter Proposal shall include the following:

2.1.1 A detailed description of the Services to be provided; Attachment B
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2.1.2 The positionof each person to be assigned to perform the Services, and the name and contact number of the individuals to be assigned, ifavailable;

2.1.3 The estimated number of hours and any anticipatedconsumable, material,or ancillarycosts to complete the Services; and

2.1.4 The time needed tofinishthe specificproject.

No Services shallbe provided untilthe ProjectAdministrator has provided writtenacceptance of the LetterProposal. Once authorized to proceed, Consultant shall diligentlyperform the dutiesinthe approved LetterProposal.

2.2 3. TIME OF PERFORMANCE

3.1 Time isofthe essence inthe performance of Services under thisAgreement and Consultant shallperform the Services in accordance with the schedule included in ExhibitA and the LetterProposal. In the absence of a specificschedule, the Services shall be performed to completion in a diligentand timely manner. The failureby Consultant to strictlyadhere to the schedule set forthin ExhibitA and the LetterProposal, ifany, or perform the Services ina diligentand timelymanner may resultin termination of thisAgreement by City.

3.2 Notwithstanding the foregoing. Consultant shall not be responsible for delays due to causes beyond Consultant’s reasonable control. However, in the case of any such delay in the Services to be provided forthe Project,each party hereby agrees to providenoticewithintwo (2)calendar days of the occurrence causing the delay to the other partyso thatalldelays can be addressed.

3.3 Consultant shallsubmit allrequests forextensions of time for performance in writingto the Project Administrator as defined herein not laterthan ten (10) calendar days afterthe startof the conditionthat purportedlycauses a delay. The Project Administratorshallreview allsuch requests and may grant reasonable time extensions forunforeseeable delays thatare beyond Consultant’scontrol.

3.4 For alltime periods not specificallyset forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by hand-delivery or mail.

4. COMPENSATION TO CONSULTANT
City shall pay Consultant for the Services on a time and expense not-to- exceed basis in accordance with the provisionsof thisSection and the Letter Proposal and the Schedule of BillingRates attached hereto as ExhibitB and incorporated herein by reference. Consultant’scompensation forallWork performed in accordance with this Agreement, includingallreimbursable items and subconsultant fees, shall not exceed Five Hundred Thousand Dollars and 00/100 ($500,000.00),without prior written authorizationfrom City. No billingrate changes shallbe made during the term of this Agreement without the priorwrittenapproval of City.

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Consultant shall submit monthly invoices to City describing the Work performed the preceding month. Consultant’sbillsshallinclude the name of the person who performed the Work, a briefdescriptionofthe Services performed and/or the specific task in the Scope of Services to which itrelates,the date the Services were performed, the number of hours spent on allWork billedon an hourly basis, and a descriptionof any reimbursable expenditures. City shallpay Consultant no laterthan thirty(30) calendar days afterapproval of the monthly invoiceby Citystaff.

City shallreimburse Consultant only forthose costs or expenses specifically identifiedin ExhibitB to thisAgreement and the LetterProposal or specificallyapproved inwritingin advance by City.

4.2 4.3
Consultant shallnot receive any compensation for Extra Work performed without the priorwrittenauthorizationof City. As used herein, “Extra Work” means any Work that isdetermined by Cityto be necessary forthe proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of BillingRates as set forthin ExhibitB and the Letter Proposal.

4.4 5. PROJECT MANAGER
Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shallbe available to City at allreasonable times during the Agreement term. Consultant has designated Derek J. McGregor to be itsProject Manager. Consultant shallnot remove or reassign the Project Manager or any personnel listedin ExhibitA or assign any new or replacement personnel to the Project without the priorwritten consent of City. City’sapproval shall not be unreasonably withheld with respect to the removal or assignment of non-key personnel.

Consultant, at the sole discretionof City,shallremove from the Project any of itspersonnel assigned to the performance of Services upon written request of City.

Consultant warrants that itwillcontinuously furnishthe necessary personnel to complete the Projecton a timely basis as contemplated by thisAgreement.

5.1 5.2
IfConsultant isperforming inspectionservicesforCity,the ProjectManager and any other assigned staffshallbe equipped with a cellularphone to communicate with City staff.The Project Manager’s cellularphone number shallbe provided to City.

5.3 6. ADMINISTRATION
This Agreement willbe administered by the Public Works Department. City’s Directorof PublicWorks or designee shallbe the ProjectAdministrator and shall have the authorityto act for City under thisAgreement. The ProjectAdministratorshallrepresent City in allmatters pertainingto the Services to be rendered pursuant to thisAgreement.

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7. CITY'S RESPONSIBILITIES
To assistConsultant inthe execution of itsresponsibilitiesunder thisAgreement, Cityagrees to provide access to and upon request of Consultant,one copy of allexisting relevantinformationon fileat City. Citywillprovide allsuch materialsin a timelymanner so as not to cause delays in Consultant’s Work schedule.

8. STANDARD OF CARE
Allof the Services shallbe performed by Consultant or under Consultant’s supervision. Consuitant represents that itpossesses the professional and technical personnel required to perform the Services required by thisAgreement, and that itwill perform allServices in a manner commensurate with community professional standards and with the ordinary degree of skilland care that would be used by other reasonably competent practitionersof the same disciplineunder similar circumstances. All Services shallbe performed by qualifiedand experienced personnel who are not employed by City.

Consultant representsand warrants to Citythatithas, shall obtain, and shall keep in fullforce and effectduring the term hereof, at itssole cost and expense, all licenses,permits,qualifications,insurance and approvals of whatsoever nature that is legallyrequiredof Consultant to practiceitsprofession.Consultant shallmaintain a City of Newport Beach business licenseduringthe term ofthisAgreement.

Consultant shall not be responsible for delay, nor shall Consultant be responsible fordamages or be in defaultor deemed to be in defaultby reason of strikes, lockouts, accidents, acts of God, or the failureof City to furnishtimely informationor to approve or disapprove Consultant’s Work promptly, or delay or faultyperformance by City,contractors,or governmental agencies.

8.1 8.2

8.3 9. HOLD HARMLESS
To the fullestextent permitted by law. Consultant shall indemnify, defend and hold harmless City, itsCity Council, boards and commissions, officers,agents, volunteers and employees (collectively,the “Indemnified Parties”),from and against any and allclaims (including,without limitation,claims for bodily injury,death or damage to property),demands, obligations,damages, actions, causes of action, suits, losses, judgments, fines,penalties,liabilities,costs and expenses (including,without limitation, attorneys’fees, disbursements and court costs) of every kind and nature whatsoever (individually,a Claim; collectively,“Claims”),and which relate(directlyor indirectly)to the negligence, recklessness, or willfulmisconduct ofthe Consultant or itsprincipals,officers, agents, employees, vendors, suppliers, subconsultants, subcontractors, anyone employed directlyor indirectlyby any of them or forwhose acts they may be liable,or any or all of them.

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Notwithstanding the foregoing,nothing herein shallbe construed to require Consultant to indemnify the Indemnified Parties from any Claim arisingfrom the sole negligence, activenegligence or willfulmisconduct of the Indemnified Parties. Nothing in thisindemnity shallbe construed as authorizingany award of attorneys’fees inany action on or to enforce the terms of thisAgreement. This indemnity shallapply to allclaims and liabilityregardless of whether any insurance policiesare applicable. The policylimitsdo not act as a limitationupon the amount of indemnification to be provided by the Consultant.

9.2 10. INDEPENDENT CONTRACTOR
Itis understood that City retainsConsultant on an independent contractor basis and Consultant isnot an agent or employee of City.The manner and means of conducting the Work are under the control of Consultant, except to the extent they are limitedby statute,rule or regulationand the expressed terms of thisAgreement. No civilservice status or other rightof employment shallaccrue to Consultant or itsemployees. Nothing in this Agreement shall be deemed to constituteapproval for Consultant or any of Consultant’s employees or agents, to be the agents or employees of City.Consultant shall have the responsibilityfor and control over the means of performing the Work, provided that Consultant isin compliance with the terms of thisAgreement. Anything in thisAgreement thatmay appear to give Citythe rightto direct Consultant as to the details of the performance of the Work or to exercise a measure of control over Consultant shall mean only thatConsultant shallfollowthe desires of City with respect to the resultsof the Services.

11. COOPERATION
Consultant agrees to work closely and cooperate fullywith City’s designated ProjectAdministratorand any other agencies that may have jurisdictionor interestin the Work to be performed. City agrees to cooperate with the Consultant on the Project.

12. CITY POLICY
Consultant shall discuss and review all matters relatingto policy and Project directionwith City’sProjectAdministratorinadvance of allcriticaldecision points inorder to ensure the Projectproceeds ina manner consistentwith City goals and policies.

13. PROGRESS
Consultant is responsible for keeping the Project Administratorinformed on a regularbasis regardingthe statusand progress of the Project,activitiesperformed and planned, and any meetings thathave been scheduled or are desired.

14. INSURANCE
Without limitingConsultant’sindemnificationof City,and priorto commencement of Work, Consultant shallobtain,provide and maintain at itsown expense during the term ofthisAgreement orforotherperiodsas specifiedinthisAgreement, policiesof insurance DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page 5
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of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as ExhibitC, and incorporated herein by reference.

15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specificallyauthorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the priorwrittenapproval of City. Any of the followingshallbe construed as an assignment: The sale, assignment, transferor other disposition of any of the issued and outstanding capitalstock of Consultant, or of the interestof any general partner or jointventurer or syndicate member or cotenant ifConsultant isa partnership or joint-ventureor syndicate or co-tenancy, which shall result in changing the control of Consultant. Control means fiftypercent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation,partnership or joint-venture.

16. SUBCONTRACTING
The subcontractors authorized by City,ifany, to perform Work on thisProject are identifiedin ExhibitA and the Letter Proposal. Consultant shall be fullyresponsible to City for allacts and omissions of any subcontractor. Nothing in this Agreement shall create any contractualrelationshipbetween Cityand any subcontractor nor shallitcreate any obligationon the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City.Except as specificallyauthorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the priorwrittenapproval of City.

17. OWNERSHIP OF DOCUMENTS

17.1 Each and every report,draft,map, record,plan,document and other writing produced, including but not limited to, websites, blogs, social media accounts and applications(hereinafter“Documents"), prepared or caused to be prepared by Consultant, itsofficers,employees, agents and subcontractors, in the course of implementing this Agreement, shallbecome the exclusivepropertyof City,and Cityshallhave the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Additionally,allmaterial posted in cyberspace by Consultant, itsofficers, employees, agents and subcontractors, in the course of implementing this Agreement, shallbecome the exclusive property of City,and Cityshallhave the sole rightto use such materials in itsdiscretionwithout furthercompensation to Consultant or any other party.

Consultant shall,at Consultant’s expense, provide such Documents, including alllogins and password informationto City upon priorwrittenrequest.

17.2 Documents, includingdrawings and specifications,prepared by Consultant pursuant to thisAgreement are not intended or represented to be suitablefor reuse by Cityor others on any other project.Any use of completed Documents for other projects and any use of incomplete Documents without specificwritten authorization from DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page 6
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Consultant willbe at City’ssole riskand without liabilityto Consultant. Further,any and allliabilityarisingout of changes made to Consultant’sdeliverablesunder thisAgreement by Cityor persons other than Consultant Iswaived against Consultant,and Cityassumes fullresponsibilityforsuch changes unless Cityhas given Consultant priornotice and has received from Consultant writtenconsent forsuch changes.

17.3 Computer Aided Design and Drafting(“CADD”) data delivered to City shall include the professionalstamp of the engineer or architectin charge of or responsible for the Work. City agrees that Consultant shallnot be liable for claims, liabilitiesor losses arising out of, or connected with (a) the modificationor misuse by City, or anyone authorized by City,of CADD data; or (b)any use by City,or anyone authorized by City, of CADD data foradditionsto thisProject,forthe completion of thisProjectby others,or forany other Project,excepting only such use as isauthorized,inwriting,by Consultant.

By acceptance of CADD data, Cityagrees to indemnifyConsultant for damages and liabilityresultingfrom the modificationor misuse of such CADD data. Alloriginaldrawings shallbe submitted to City inthe version of AutoCAD used by the City in .dwg fileformat, and should comply withthe City'sdigitalsubmission requirements forimprovement plans availablefrom the City’sPublicWorks Department.

17.4 All improvement and/or constructionplans shallbe plotted on standard twenty four inch (24”)by thirty-sixinch (36”)paper size.Consultant shallprovide to City digital‘As-Built’drawings in both AutoCAD and Adobe PDF fileformat withinthirty(30) days afterfinalizationof the Project.

18. OPINION OF COST
Any opinion of the construction cost prepared by Consultant represents the Consultant’sjudgment as a design professionaland issuppliedforthe general guidance of City. Since Consultant has no controlover the cost of labor and material, or over competitive bidding or market conditions.Consultant does not guarantee the accuracy of such opinions as compared to Consultant or contractorbids or actual cost to City.

19. CONFIDENTIALITY
All Documents, Including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shallbe kept confidential unless City expressly authorizes inwritingthe release of information.

20. INTELLECTUAL PROPERTY INDEMNITY
Consultant shalldefend and indemnify City,itsagents, officers,representatives and employees against any and allliability,includingcosts, for infringement or alleged Infringementof any United States’letterspatent,trademark, or copyright,includingcosts, contained in Consultant’s Documents provided under thisAgreement.

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Consultant shallallow a representativeof Cityto examine, audit and make transcriptsor copies of such records and invoicesduring regularbusiness hours. Consultant shall allow inspection of all Work, data. Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of finalpayment to Consultant under thisAgreement.

22. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitutea failureto pay according to the terms of thisAgreement. Consultant shallnot discontinue Work as a resultof such withholding. Consultant shall have an immediate rightto appeal to the City Manager or designee with respect to such disputed sums.

24. CITY’S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the rightto employ other Consultants in connection with the Project.

25. CONFLICTS OF INTEREST

25.1 Consultant or its employees may be subject to the provisions of the CaliforniaPoliticalReform Act of 1974 (the “Act”)and/or Government Code §§ 1090 et seq., which (1) require such persons to disclose any financial interest that may foreseeably be materiallyaffectedby the Work performed under thisAgreement, and (2) prohibit such persons from making, or participatingin making, decisions that will foreseeably financiallyaffectsuch interest.

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25.2 Ifsubjecttothe Act and/orGovernment Code §§ 1090 et seq., Consultant shallconform to allrequirements therein. Failureto do so constitutes a material breach and isgrounds forimmediate terminationof thisAgreement by City. Consultant shall indemnify and hold harmless Cityfor any and allclaims for damages resultingfrom Consultant’s violation of this Section.

26. NOTICES
All notices, demands, requests or approvals, includingany change in mailing address, to be given under the terms of thisAgreement shallbe given inwriting, and conclusivelyshallbe deemed served when deliveredpersonally, or on the third business day afterthe deposit thereof in the United States mail, postage prepaid, first- class mail,addressed as hereinafterprovided.

26.2 Allnotices,demands, requests or approvals from Consultant to City shall be addressed to City at:

26.1 Attn: Director of Public Works
Public Works Department
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92658

26.3 Allnotices,demands, requests or approvals from City to Consultant shall be addressed to Consultant at:

Attn:Derek J. McGregor
Derek J. McGregor, Inc.dba DMc Engineering
18 Technology Drive, Suite 100
Irvine,CA 92618

27. CLAIMS
Unless a shortertime isspecifiedelsewhere inthisAgreement, before making its finalrequestforpayment under thisAgreement, Consultant shallsubmit to City,inwriting, all claims for compensation under or arising out of this Agreement. Consultant’s acceptance of the finalpayment shallconstitutea waiver of allclaims for compensation under or arisingout of this Agreement except those previously made in writingand identifiedby Consultant inwritingas unsettledatthe time of itsfinalrequest forpayment.

Consultant and Cityexpressly agree thatin additionto any claims filingrequirements set forthinthe Agreement, Consultant shallbe requiredto fileany claim Consultant may have against City in strictconformance with the Government Claims Act (Government Code sections 900 et seq.).

28. TERMINATION

28.1 Inthe event thateitherpartyfailsor refuses to perform any of the provisions of thisAgreement at the time and inthe manner required,that party shallbe deemed in DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page 9
178
defaultinthe performance of thisAgreement. Ifsuch defaultisnot cured withina period of two (2)calendar days, or ifmore than two (2)calendar days are reasonably required to cure the defaultand the defaultingparty failsto give adequate assurance of due performance within two (2) calendar days after receiptof written notice of default, specifyingthe nature of such defaultand the steps necessary to cure such default,and thereafterdiligentlytake steps to cure the default,the non-defaulting party may terminate the Agreement forthwithby givingto the defaultingparty written notice thereof.

28.2 Notwithstanding the above provisions,City shallhave the right,at itssole and absolute discretionand withoutcause, of terminatingthisAgreement at any time by giving no less than seven (7) calendar days’ priorwritten notice to Consultant. In the event of termination under this Section, City shall pay Consultant for Services satisfactorilyperformed and costs incurredup tothe effective date of termination for which Consultant has not been previouslypaid. On the effectivedate of termination, Consultant shall deliver to City all reports, documents and other information developed or accumulated inthe performance of thisAgreement, whether in draft or final form.

29. STANDARD PROVISIONS

29.1 Recitals.Cityand Consultant acknowledge thatthe above Recitals are true and correctand are hereby incorporated by reference intothisAgreement.

29.2 Compliance with allLaws. Consultant shall,at itsown cost and expense, comply with allstatutes,ordinances, regulationsand requirements of allgovernmental entities,includingfederal,state,county or municipal,whether now in force or hereinafter enacted. In addition,allWork prepared by Consultant shallconform to applicable City, county, stateand federallaws, rules,regulationsand permit requirements and be subject to approval of the ProjectAdministratorand City.

29.3 Waiver. A waiver by eitherparty of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character.

No verbal agreement or implied covenant shallbe held to vary the provisions herein.

The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or against eitherparty by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply.

29.6 Interpretation.

DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page 10
179

29.7 Amendments. This Agreement may be modified or amended only by a writtendocument executed by both Consultantand Cityand approved as to form by the CityAttorney.

29.8 Severability.Ifany term or portionof thisAgreement is held to be invalid, illegal,or otherwise unenforceable by a court of competent jurisdiction,the remaining provisions of thisAgreement shallcontinue infullforce and effect.

29.9 Controlling Law and Venue. The laws of the State of Californiashallgovern thisAgreement and allmatters relatingto itand any action brought relatingto this Agreement shallbe adjudicatedin a courtof competent jurisdictionin the County of Orange, State of California.

29.10 Equal Opportunity Employment. Consultant represents that itis an equal opportunity employer and itshall not discriminate against any subcontractor,employee or applicant for employment because race, religiouscreed, color, national origin, ancestry, physical handicap, medical condition,marital status, sex, sexual orientation, age or any other impermissible basis under law.

29.11 No Attorneys’Fees. Inthe event of any disputeor legalactionarisingunder thisAgreement, the prevailingpartyshallnot be entitledto attorneys’fees.

29.12 Counterparts. This Agreement may be executed in two (2) or more counterparts,each of which shallbe deemed an originaland allof which together shall constituteone (1) and the same instrument.
[SIGNATURES ON NEXT PAGE]
DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page 11
180
IN WITNESS WHEREOF, the partieshave caused thisAgreement to be executed on the dates written below.

APPROVED AS TO FORM:

CITY ATTORNEY’S OFFICE
Date:

CITY OF NEWPORT BEACH,
a Californiamunicipal corporation
Date:

By: By:

AaronC.Harp i^-(g.2.^iCjCity Attorney
Lauren Kleiman
Mayor
ATTEST;
Date:

CONSULTANT: DEREK J. MCGREGOR,
INC. doing business as (“DBA”) DMC
ENGINEERING, a Californiacorporation
Date:

By: By:

Lena Shumway
City Clerk
Derek J. McGregor
Chief Executive Officer,Chief Financial
Officer,and Secretary
[END OF SIGNATURES]
ExhibitA - Scope of Services
ExhibitB - Schedule of BillingRates
ExhibitC - Insurance Requirements
Attachments:

Page 12 ends

181

EXHIBIT A

SCOPE OF SERVICES
DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page A-1 182

SCOPE OF SERVICES

ON-CALL CIVIL-SCOPE OF SERVICES
Consultant shallprovide CivilEngineeringservicesforthe conceptual and finaldesign of a wide varietyofCitycapitalimprovement and maintenance projects.Consultant shallprovide in-house services,or capacityto subconsultant,forthe followingareas:

Provide fullplans, specifications,and estimates for a broad range of civilengineering disciplines;
Providecostestimatingand valueengineeringservices;
Providebidsupportand preparationof recorddrawings;
Provideconstructionsupport,administration,and management services; Provideconstructiontrafficcontrolconceptsand plans;
Provideproject-specificprofessionalsurveyingservices;
Review public/privatedevelopment plansand maps;
Provide regulatorypermittingsupport;
Prepare various studies and supporting documentation for,but not limitedto, hydrology and hydraulicanalysis,water and sewer studiesand network analysis; Prepare/reviewNPDES reports.Water QualityManagement Plan (WQMP), and Storm Water PollutionPrevention Plans (SWPPP);
Prepare maps and legaldescriptionsforright-of-wayacquisitionand easements; and Other engineering-relatedtasks,as necessary.
183

EXHIBIT B

SCHEDULE OF BILLING RATES
DEREK J, MCGREGOR, INC. DBA DMC ENGINEERING Page B-1 184 DMc Engineering
Civil • Surveying ■ Planning ■ Construction
Hourly Rate Schedule
(As of January 1,2025)
OFFICE PERSONNEL Cost/Hour
Principal(PR) $ 260.00
Project Manager (PM) $ 220.00
Construction Manager (CM) $ 220.00
Project Engineer (PE) $ 200.00
Project Surveyor (PS)
Senior Engineer (SE)
Associate Engineer (AE)
$ 200.00
$ 180.00
$ 160.00
$ 100.00Administration (ADMIN)
FIELD SURVEY Cost/Hour
$ 230.00Field Survey (FS)
GPS Survey (GPS) $ 250.00
Reproductions, computer plotting,copying, messenger services and other direct expenses willbe billedper our reimbursement fee schedule. No additionalcharges formileage, suppliesor telephone expenses willbe included.

NOTE:
i8 Technology Drive, Suite lOO
Telephone; (949) 753-9393
Irvine, CA 92618
185

TJW ENGINEERING, INC

STANDARD COMPENSATION SCHEDULE
(EffectiveJanuary 2025}
Classification Hourly Rate
$260.00
$235.00
$175.00-$200.00
$125.00-$175.00
$100.00-$150.00
$100.00-$125.00
$85.00-$125.00
$65.00 ■ $85.00
Principal
PrincipalTrafficEngineer/Planner
SeniorEngineer/Planner
Project Engineer/Planner
Asst.ProjectEngineer/Planner
Technician
Administration
Aide
9841 IrvineCenter Drive,Suite 200 | Irvine,California92618 |t:(949)878-3509 www.tjwengineering.com
186
Cho Design Associates, Inc.3601 W. MacArthur Blvd.,#903, Santa Ana, CA 92704 Fee Schedule
EffectiveJanuary 1,2025
PrincipalEngineer/ProjectManager $ 235.00/Hr
Project/SeniorEngineer $ 215.00/Hr
CADD Technician/Draftsperson $ 175.00/Hr
Word Processing/Clerical $ 90.00/Hr
CDA fileNo. fecsched.doc
187
Engineering Inc.

ElectricalEngineering & Consulting
8048 Palm Ave.

Highland, CA
92346
909.864.0223
Fax 909.864.0280
[email protected]
BillingRates EffectiveJanuary 2025
For the purposes of hourlyservicesand/or revisionsfor the basic services, the Consultant shall invoice the Clientat the followingrates:

Project Engineer/Manager
Designer
Drafting/CADD
Clerical/Delivery/Accounting
$ 240.00
$200.00
$176.00
$ 160.00
188

EXHIBIT C

INSURANCE REQUIREMENTS - PROFESSIONAL SERVICES

1. Provision of Insurance. Without limitingConsultant’s indemnificationof City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form satisfactory to City. Consultant agrees to provide insurance in accordance with requirements set forthhere. IfConsultant uses existingcoverage to comply and thatcoverage does not meet these requirements, Consultant agrees to amend, supplement or endorse the existingcoverage.

2. Acceptable Insurers. All insurance policiesshall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance inthe State of California,with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger)in accordance with the latesteditionof Best’s Key Rating Guide, unless otherwise approved by the City’sRisk Manager.

3. Coverage Requirements.

Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance providing statutorybenefits and Employer’s LiabilityInsurance with limitsof at leastone milliondollars($1,000,000) each employee for bodily injuryby accident and each employee for bodily injuryby disease in accordance with the laws of the State of California.

B. General Liability Insurance. Consultant shall maintain commercial general liabilityinsurance, and ifnecessary excess/umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than two million dollars($2,000,000) per occurrence, four milliondollars ($4,000,000) general aggregate. The policy shallcover liabilityarisingfrom bodily injury,property damage, personal and advertising injury,and liability assumed under an insured contract(includingthe tortliabilityof another assumed in a business contract).

Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodilyinjuryand propertydamage forallactivities of Consultant C.

DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page C-1 189 arisingout of or in connection with Work to be performed under this Contract,includingcoverage forany owned, hired,non-owned or rented vehicles, in an amount not less than one milliondollars($1,000,000) combined single limitfor each accident.

Professional (Errors & Omissions) Insurance. Consultant shall maintain professionalliabilityinsurance thatcovers the Services to be performed inconnection with thisAgreement, inthe minimum amount of two million dollars($2,000,000) per claim and four milliondollars($4,000,000) in the aggregate. Any policyinception date, continuitydate, or retroactive date must be before the EffectiveDate ofthisAgreement and Consultant agrees to maintain continuous coverage through a period no less than three years aftercompletion of the Services required by thisAgreement.

Excess/Umbrella LiabilityInsurance. Ifany Excess or Umbrella Liability policiesare used to meet the limitsof liabilityrequired by thiscontract, then said policiesshall be “followingform” of the underlying policy coverage, terms, conditions, and provisions and shall meet all of the insurance requirements stated inthiscontract,including,but not limited to, the additionalinsured and primary & non-contributoryinsurance requirements stated herein. No insurance policies maintained by the City,whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess/umbrella liabilitypolicies are exhausted.

Other Insurance Requirements. The policiesare to contain, or be endorsed to contain,the followingprovisions;

4. A. Waiver of Subrogation. Allinsurance coverage maintained or procured pursuant to thisContract shallbe endorsed to waive subrogation against City, its City Council, boards and commissions, officers,agents, volunteers and employees, or shall specificallyallow Consultant or others providing insurance evidence in compliance with these requirements to waive theirrightof recovery priorto a loss. Consultant hereby waives itsown rightof recovery against City,and shallrequire similarwrittenexpress waivers and insurance clauses from each of its subcontractors.

Additional Insured Status. All liabilitypoliciesincludinggeneral liability, excess/umbrella liability,and automobile liability,if required, but not includingprofessionalliability,shallprovide or be endorsed to provide that City, itsCity Council, boards and commissions, officers,agents, volunteers and employees shall be included as additionalinsureds under such policies.

DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page C-2 190 c. Primary and Non-Contributory. Consultant’s insurance coyerage shall be primary insurance and/or the primary source of recoyery with respect to the City,itsCity Council, boards and commissions, officers,agents, yolunteersand employees. Allliabilitycoyerage shallapply on a primary basis and shall not require contributionfrom any insurance or self- insurance maintained by City.

D. Notice of Cancellation. All policiesshall proyide City with thirty(30) calendar days’ notice of cancellationor nonrenewal of coyerage (except for nonpayment forwhich ten (10) calendar days’ noticeis required)for each required coyerage.

5. Additional Agreements Between the Parties. The parties hereby agree to the following;
A. Eyidence of Insurance. Consultant shallproyide certificatesof insurance to City as eyidence of the insurance coyerage required herein, along with a waiyer of subrogation endorsement for workers’ compensation and other endorsements as specifiedherein for each coyerage. All of the executed documents referenced in this Contract must be returned to Citywithinten
(10) regularCity business days afterthe date on the “Notification of Award”. Insurance certificates and endorsements must be approyed by City’sRisk Manager priorto commencement of performance. Current certificationof insurance shallbe kept on filewith City at alltimes during the term of this Contract. The certificates and endorsements for each insurance policyshallbe signed by a person authorized by that insurer to bind coyerage on itsbehalf. At least fifteen(15) days priorto the expirationof any such policy,eyidence of insurance showing that such insurance coyerage has been renewed or extended shallbe filed with the City. Ifsuch coyerage is cancelled or reduced, Consultant shall, withinten (10) days afterreceiptof writtennoticeof such cancellation or reduction of coyerage, filewith the City eyidence of insurance showing that the required insurance has been reinstated or has been proyided through another insurance company or companies. City reseryes the right to require complete, certifiedcopies of all required insurance policies,at anytime.

B. City’sRight to Reyise Requirements. The City reserves the rightat any time during the term of the Contract to change the amounts and types of insurance required by giving Consultant ninety (90) calendar days’ advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant’s compensation.

DEREK J. MCGREGOR. INC. DBA DMC ENGINEERING Page C-3 191 c. Right to Review Subcontracts. Consultant agrees thatupon request, all agreements with subcontractors or others with whom Consultant enters intocontractswith on behalf of Citywillbe submitted to City for review.

Failureof Cityto request copies of such agreements willnot impose any liabilityon City,or itsemployees. Consultant shallrequire and verifythat all subcontractors maintain insurance meeting allthe requirements stated herein,and Consultant shallensure that City is an additional insured on insurance required from subcontractors. ForCGL coverage, subcontractors shallprovide coverage with a format at least as broad as CG 20 38 04 13.

D. Enforcement of Agreement Provisions.Consultant acknowledges and agrees that any actual or alleged failureon the part of City to inform Consultant of non-compliance with any requirement imposes no additionalobligationson City nor does itwaive any rightshereunder.

E. Requirements not Limiting.Requirements of specificcoverage features or limits contained in this Section are not intended as a limitation on coverage, limitsor other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature isforpurposes of clarificationonly as itpertains to a given issue and isnot intended by any partyor insured to be allinclusive, or to the exclusion of other coverage, or a waiver of any type. Ifthe Consultant maintains higher limitsthan the minimums shown above, the City requires and shall be entitledto coverage for higher limits maintained by the Consultant. Any available proceeds in excess of specifiedminimum limitsof insurance and coverage shall be available to the City.

F. Self-Insured Retentions. Any self-insuredretentionsmust be declared to and approved by City.City reserves the rightto require that self- insured retentions be eliminated, lowered, or replaced by a deductible.

Self-insurancewillnot be considered to comply with these requirements unless approved by City.

G. City Remedies for Non-Compliance. IfConsultant or any subconsultant failsto provide and maintain insurance as required herein, then City shallhave the rightbut not the obligation,to purchase such insurance, to terminate thisAgreement, or to suspend Consultant’s rightto proceed untilproper evidence of insurance is provided. Any amounts paid by City shall,at City’ssole option,be deducted from amounts payable to Consultant or reimbursed by Consultant upon demand.

DEREK J. MCGREGOR. INC. DBA DMC ENGINEERING Page C-4 192 H. Timely Notice of Claims. Consultant shallgive City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under thisContract, and that involve or may involve coverage under any of the required liabilitypolicies.City assumes no obligationor liabilityby such notice,but has the right(but not the duty)to monitor the handling of any such claim or claims ifthey are likelyto involveCity.

Consultant’s Insurance. Consultant shallalso procure and maintain, at itsown cost and expense, any additionalkinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

DEREK J. MCGREGOR, INC. DBA DMC ENGINEERING Page C-5 193

ON-CALL PROFESSIONAL SERVICES AGREEMENT
WITH PROACTIVE ENGINEERING CONSULTANTS, INC. DBA Q3 CONSULTING

FOR ON-CALL CIVIL ENGINEERING CONSULTING SERVICES
THIS ON-CALL PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered intoas of this 13th day of January, 2026 (“EffectiveDate”), by and between the CITY OF NEWPORT BEACH, a Californiamunicipal corporation and charter city (“City”),and PROACTIVE ENGINEERING CONSULTANTS, INC. DBA 03 CONSULTING, a Californiacorporation (“Consultant”),whose address is 200 S. Main Street, Suite 300, Corona CA 92882, and ismade with referenceto the following:

RECITALS
City isa municipal corporation duly organized and validlyexistingunder the laws of the State of Californiawith the power to carry on itsbusiness as itisnow being conducted under the statutes of the State of California and the Charter of City.

City desires to engage Consultant to provide on-callcivilengineering consulting services (“Project”).

Consultant possesses the skill,experience, ability,background, certificationand knowledge to provide the professional servicesdescribed in thisAgreement.

City has solicitedand received a proposal from Consultant,has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retainConsultant to render professional services under the terms and conditions set forthinthisAgreement.

NOW, THEREFORE, itismutually agreed by and between the undersigned parties as follows:

1. TERM
The term of this Agreement shallcommence on the EffectiveDate, and shall terminate on January 12, 2031, unless terminated earlieras set forth herein.

Consultantshallprovidea letterproposalforServices requested by the City (hereinafter referredto as the “LetterProposal”).The LetterProposal shallincludethe following:

2.1.1 A detaileddescriptionof the Services to be provided;

2.1 Attachment C
194

2.1.2 The positionof each person to be assigned to perform the Services, and the name and contact number of the individuals to be assigned, ifavailable;

2.1.3 The estimated number of hours and any anticipatedconsumable, material,or ancillarycosts to complete the Services; and

2.1.4 The time needed to finishthe specificproject.

No Services shallbe provided untilthe Project Administrator has provided written acceptance of the Letter Proposal. Once authorized to proceed, Consultant shall diligentlyperform the duties inthe approved LetterProposal.

2.2 3. TIME OF PERFORMANCE
Time isof the essence inthe performance of Services under thisAgreement and Consultant shallperform the Services in accordance with the schedule included in ExhibitA and the LetterProposal. In the absence of a specificschedule, the Services shall be performed to completion in a diligentand timely manner. The failure by Consultant to strictlyadhere to the schedule set forthin ExhibitA and the LetterProposal, ifany, or perform the Services in a diligentand timely manner may resultin termination of thisAgreement by City.

3.1 Notwithstanding the foregoing. Consultant shall not be responsible for delays due to causes beyond Consultant’s reasonable control. However, in the case of any such delay in the Services to be provided forthe Project,each party hereby agrees to provide notice withintwo (2) calendar days of the occurrence causing the delay to the other party so that alldelays can be addressed.

3.2 Consultant shallsubmit allrequests for extensions of time forperformance in writingto the ProjectAdministrator as defined herein not laterthan ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review allsuch requests and may grant reasonable time extensions for unforeseeable delays thatare beyond Consultant’scontrol.

3.3 For all time periods not specificallyset forth herein. Consultant shall respond in the most expedient and appropriate manner under the circumstances, by hand-delivery or mail.

3.4 4. COMPENSATION TO CONSULTANT
City shallpay Consultant forthe Services on a time and expense not-to- exceed basis in accordance with the provisionsof thisSection and the Letter Proposal and the Schedule of BillingRates attached hereto as Exhibit B and incorporated herein by reference. Consultant’scompensation forallWork performed in accordance with this Agreement, includingallreimbursable items and subconsultant fees, shall not exceed Five Hundred Thousand Dollars and 00/100 ($500,000.00), without prior written authorizationfrom City. No billingrate changes shallbe made during the term of this Agreement withoutthe priorwrittenapproval of City.

4.1

Page 2 ends

195

4.2 Upon the firstanniversary of the EffectiveDate and upon each anniversary of the EffectiveDate thereafter,the billingrates set for in ExhibitB (“BillingRates”) shall be adjusted by a fixed amount of three percent (3%) of the BillingRates in effect immediately preceding such adjustment.

4.3 Consultant shall submit monthly invoices to City describing the Work performed the preceding month. Consultant's billsshallinclude the name of the person who performed the Work, a briefdescriptionof the Services performed and/or the specific task in the Scope of Services to which itrelates,the date the Services were performed, the number of hours spent on allWork billedon an hourly basis,and a descriptionof any reimbursable expenditures. City shallpay Consultant no laterthan thirty(30) calendar days afterapproval of the monthly invoiceby Citystaff.

4.4 Cityshallreimburse Consultant only forthose costs or expenses specifically identifiedin ExhibitB to thisAgreement and the LetterProposal or specificallyapproved inwritingInadvance by City.

Consultant shall not receive any compensation for Extra Work performed without the priorwrittenauthorizationof City. As used herein, “Extra Work” means any Work that isdetermined by City to be necessary forthe proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of BillingRates as set forthin ExhibitB and the LetterProposal.

4.5 5. PROJECT MANAGER
Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shallbe availableto City at allreasonable times during the Agreement term. Consultant has designated Remi Candaele to be its Project Manager. Consultant shallnot remove or reassign the Project Manager or any personnel listedin ExhibitA or assign any new or replacement personnel to the Project without the priorwritten consent of City. City’sapproval shall not be unreasonably withheld with respect to the removal or assignment of non-key personnel.

5.1 Consultant, at the sole discretionof City,shallremove from the Project any of itspersonnel assigned to the performance of Services upon writtenrequest of City.

Consultant warrants that itwillcontinuously furnishthe necessary personnel to complete the Projecton a timelybasis as contemplated by thisAgreement.

IfConsultant isperforming inspection services forCity,the Project Manager and any other assigned staffshallbe equipped with a cellularphone to communicate with City staff.The ProjectManager’s cellularphone number shallbe provided to City.

5.2 5.3

6. ADMINISTRATION
This Agreement willbe administered by the Public Works Department. City’s Directorof PublicWorks or designee shallbe the ProjectAdministrator and shall have the ProactiveEngineering Consultants,Inc.dba Q3 Consulting Page 3 196
authorityto act forCity under thisAgreement. The ProjectAdministratorshallrepresent City in allmatters pertainingto the Services to be rendered pursuant to thisAgreement.

7. CITY'S RESPONSIBILITIES
To assistConsultant inthe execution of itsresponsibilitiesunder thisAgreement, Cityagrees to provideaccess to and upon requestof Consultant,one copy of allexisting relevantinformationon fileat City. Citywillprovideallsuch materialsina timely manner so as not to cause delays in Consultant’s Work schedule.

8. STANDARD OF CARE
Allof the Services shallbe performed by Consultantor under Consultant’s supervision.Consultant represents that itpossesses the professional and technical personnel required to perform the Services required by thisAgreement, and that itwill perform allServices in a manner commensurate with community professional standards and with the ordinary degree of skilland care that would be used by other reasonably competent practitionersof the same disciplineunder similar circumstances. All Services shallbe performed by qualifiedand experienced personnel who are not employed by City.

Consultant representsand warrants to Citythatithas, shallobtain, and shall keep in fullforce and effectduring the term hereof, at itssole cost and expense, all licenses,permits, qualifications,insurance and approvals of whatsoever nature that is legallyrequired of Consultant to practiceitsprofession. Consultant shallmaintain a City of Newport Beach business licenseduringthe term of thisAgreement.

Consultant shall not be responsible for delay, nor shall Consultant be responsible fordamages or be indefaultor deemed to be in defaultby reason of strikes, lockouts, accidents, acts of God, or the failureof City to furnishtimelyinformationor to approve or disapprove Consultant’s Work promptly, or delay or faultyperformance by City,contractors,or governmental agencies.

8.1 8.2

8.3 9. HOLD HARMLESS
To the fullestextent permitted by law. Consultant shall indemnify, defend and hold harmless City, itsCity Council, boards and commissions, officers,agents, volunteers and employees (collectively,the “Indemnified Parties”),from and against any and allclaims (including,without limitation,claims for bodily injury,death or damage to property),demands, obligations,damages, actions, causes of action, suits, losses, judgments, fines,penalties,liabilities,costs and expenses (including,without limitation, attorneys'fees, disbursements and court costs) of every kind and nature whatsoever (individually,a Claim; collectively,“Claims”),and which relate(directlyor indirectly)to the negligence, recklessness, or willfulmisconduct of the Consultant or itsprincipals,officers, agents, employees, vendors, suppliers, subconsultants, subcontractors, anyone

9.1 ProactiveEngineering Consultants,Inc.dba Q3 Consulting Page 4 197
employed directlyor indirectlyby any ofthem or forwhose acts they may be liable,or any or all of them.

Notwithstandingthe foregoing,nothing herein shallbe construed to require Consultant to indemnify the Indemnified Parties from any Claim arisingfrom the sole negligence, activenegligence or willfulmisconduct of the Indemnified Parties.Nothing in thisindemnityshallbe construed as authorizingany award of attorneys’fees inany action on or to enforce the terms of thisAgreement. This indemnity shallapply to allclaims and liabilityregardless of whether any insurance policiesare applicable. The policy limitsdo not act as a limitationupon the amount of indemnification to be provided by the Consultant.

Nothing inthisAgreement shallbe deemed to constituteapproval forConsultant or any of Consultant’semployees or agents,to be the agents or employees of City. Consultant shall have the responsibilityfor and control over the means of performing the Work, provided that Consultant isin compliance with the terms of thisAgreement. Anything in thisAgreement thatmay appear to give Citythe rightto direct Consultant as to the details of the performance of the Work or to exercise a measure of control over Consultant shall mean only that Consultant shallfollow the desires of City with respect to the resultsof the Services.

11. COOPERATION
Consultant agrees to work closelyand cooperate fullywith City’s designated ProjectAdministratorand any other agencies thatmay have jurisdictionor interestinthe Work to be performed. City agrees to cooperate with the Consultant on the Project.

12. CITY POLICY
Consultant shalldiscuss and review allmatters relatingto policy and Project directionwith City’sProjectAdministratorinadvance of allcriticaldecision points inorder to ensure the Project proceeds in a manner consistent with Citygoals and policies.

13. PROGRESS
Consultant is responsible for keeping the Project Administrator informed on a regular basis regarding the status and progress of the Project,activitiesperformed and planned, and any meetings that have been scheduled or are desired.

Proactive Engineering Consultants, Inc.dba Q3 Consulting Page 5 198

14. INSURANCE
Without limitingConsultant’sindemnificationof City,and priorto commencement of Work, Consultant shallobtain,provideand maintain at itsown expense during the term of thisAgreement or forother periods as specifiedinthisAgreement, policiesof insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as ExhibitC, and incorporatedherein by reference.

15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specificallyauthorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out withoutthe priorwrittenapproval of City.Any of the followingshallbe construed as an assignment: The sale,assignment, transferor other dispositionof any of the issued and outstandingcapitalstock of Consultant,or of the interestof any general partneror jointventureror syndicate member or cotenant ifConsultant isa partnershipor joint-ventureor syndicate or co-tenancy, which shall resultin changing the control of Consultant. Controlmeans fiftypercent(50%) or more of the votingpower or twenty-five percent (25%) or more of the assets of the corporation,partnership or joint-venture.

16. SUBCONTRACTING
The subcontractorsauthorized by City,ifany, to perform Work on thisProjectare identifiedin ExhibitA and the LetterProposal. Consultant shall be fullyresponsible to City for allacts and omissions of any subcontractor. Nothing in this Agreement shall create any contractualrelationshipbetween Cityand any subcontractor nor shallitcreate any obligationon the partof Cityto pay or to see to the payment of any monies due to any such subcontractorother than as otherwise required by law. City is an intended beneficiaryof any Work performed by the subcontractorfor purposes of establishinga duty of care between the subcontractorand City.Except as specificallyauthorized herein, the Services to be provided under this Agreement shallnot be otherwise assigned, transferred, contracted or subcontracted out without the priorwrittenapproval of City.

17. OWNERSHIP OF DOCUMENTS

17.1 Each and every report,draft,map, record, plan,document and other writing produced, including but not limited to, websites, blogs, social media accounts and applications(hereinafter“Documents"), prepared or caused to be prepared by Consultant, itsofficers,employees, agents and subcontractors, in the course of implementing this Agreement, shallbecome the exclusivepropertyof City,and Cityshallhave the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Additionally,allmaterialposted in cyberspace by Consultant, itsofficers, employees, agents and subcontractors, in the course of implementing thisAgreement, shallbecome the exclusiveproperty of City,and Cityshallhave the sole rightto use such materials in itsdiscretionwithout furthercompensation to Consultant or any other party.

Consultant shall,at Consultant’s expense, provide such Documents, includingalllogins and password informationto City upon priorwrittenrequest.

ProactiveEngineering Consultants,Inc.dba Q3 Consulting Page 6 199

17.2 Documents, includingdrawings and specifications,prepared by Consultant pursuant to thisAgreement are not intended or represented to be suitablefor reuse by City or others on any other project.Any use of completed Documents forother projects and any use of incomplete Documents without specificwritten authorization from Consultant willbe at City’ssole riskand without liabilityto Consultant. Further,any and allliabilityarisingout of changes made to Consultant’sdeliverablesunder thisAgreement by Cityor persons other than Consultant iswaived against Consultant,and Cityassumes fullresponsibilityforsuch changes unless Cityhas given Consultant priornotice and has received from Consultant writtenconsent forsuch changes.

17.3 Computer Aided Design and Drafting(“CADD”) data deliveredto City shall include the professionalstamp of the engineer or architectin charge of or responsible for the Work. City agrees that Consultant shallnot be liablefor claims, liabilitiesor losses arising out of, or connected with (a) the modificationor misuse by City, or anyone authorized by City,of CADD data; or (b) any use by City,or anyone authorized by City, of CADD data foradditionsto thisProject,forthe completion of thisProjectby others,or forany other Project,excepting only such use as isauthorized, inwriting,by Consultant.

18. OPINION OF COST
Any opinion of the construction cost prepared by Consultant represents the Consultant’sjudgment as a design professionaland issupplied forthe general guidance of City. Since Consultant has no controlover the cost of labor and material, or over competitive bidding or market conditions,Consultant does not guarantee the accuracy of such opinions as compared to Consultant or contractor bids or actual cost to City.

19. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shallbe kept confidential unless Cityexpressly authorizes inwritingthe release of information.

20. INTELLECTUAL PROPERTY INDEMNITY
Consultant shall defend and indemnify City,itsagents, officers,representatives and employees against any and ailliability,includingcosts, for infringement or alleged infringementof any United States’letterspatent,trademark, or copyright,includingcosts, contained inConsultant’s Documents provided under thisAgreement.

Proactive Engineering Consultants, Inc.dba Q3 Consulting Page 7 200

Consultant shallallow a representativeof Cityto examine, audit and make transcriptsor copies of such records and invoicesduring regularbusiness hours. Consultant shall allow inspectionof allWork, data. Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of finalpayment to Consultant under thisAgreement.

22. WITHHOLDINGS
Citymay withholdpayment to Consultantofany disputedsums until satisfaction of the disputewith respectto such payment. Such withholdingshall not be deemed to constitutea failureto pay according to the terms of thisAgreement. Consultant shallnot discontinueWork as a resultof such withholding.Consultantshall have an immediate rightto appeal to the City Manager or designee with respect to such disputed sums.

Consultant shall be entitled to receive interest on any withheld sums at the rate of return thatCity earned on itsinvestments during the time period,from the date of withholdingof any amounts found to have been improperly withheld.

23. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which resultinexpense to City greater than what would have resulted ifthere were not errors or omissions in the Work accomplished by Consultant, the additional design, construction and/or restoration expense shall be borne by Consultant. Nothing inthisSection isintended to limitCity’srightsunder the law or any other sections of thisAgreement.

CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS24.

City reserves the rightto employ other Consultants in connection with the Project.

25. CONFLICTS OF INTEREST

25.1 Consultant or its employees may be subject to the provisions of the CaliforniaPoliticalReform Act of 1974 (the “Act")and/or Government Code §§ 1090 ^ seq., which (1) require such persons to disclose any financial interestthat may foreseeably be materiallyaffectedby the Work performed under thisAgreement, and (2) prohibit such persons from making, or participatingin making, decisions that will foreseeably financiallyaffectsuch interest.

Proactive Engineering Consultants, Inc.dba Q3 Consulting Page 8 201

25.2 Ifsubjectto the Act and/or Government Code §§ 1090 et seq., Consultant shallconform to allrequirements therein. Failureto do so constitutes a material breach and isgrounds forimmediate terminationof thisAgreement by City. Consultant shall indemnify and hold harmless Cityfor any and allclaims for damages resultingfrom Consultant’s violation of this Section.

26. NOTICES

26.1 All notices, demands, requests or approvals, including any change in mailingaddress,to be given under the terms ofthisAgreement shallbe given inwriting, and conclusivelyshallbe deemed served when deliveredpersonally,or on the third business day afterthe depositthereofinthe UnitedStates mail, postage prepaid, first- class mail,addressed as hereinafterprovided.

26.2 Allnotices,demands, requests or approvals from Consultant to City shall be addressed to City at:

Attn: Director of Public Works
Public Works Department
Cityof Newport Beach
100 Civic Center Drive
Newport Beach, CA 92658

26.3 Allnotices,demands, requests or approvals from City to Consultant shall be addressed to Consultant at:

Attn:John McCarthy
ProactiveEngineeringConsultants,Inc.
200 S. Main Street, Suite 300
Corona, CA 92882

27. CLAIMS
Unless a shortertime isspecifiedelsewhere inthisAgreement, before making its finalrequestforpayment underthisAgreement,Consultantshallsubmit to City,inwriting, allclaims for compensation under or arisingout of this Agreement. Consultant’s acceptance ofthe finalpayment shallconstitutea waiver of allclaims for compensation under or arisingout of thisAgreement except those previously made in writingand identifiedby Consultantinwritingas unsettledatthe time of itsfinalrequest forpayment.

Consultantand Cityexpresslyagree thatinadditionto any claims filingrequirements set forthintheAgreement, Consultantshallbe requiredto fileany claim Consultant may have againstCityinstrictconformancewiththeGovernment Claims Act (Government Code sections 900 et seq.).

28. TERMINATION

28.1 Inthe event thateitherpartyfailsor refusesto perform any ofthe provisions ofthisAgreement atthetimeand inthe manner required,that party shallbe deemed in

Page 9 ends

defaultinthe performance of thisAgreement. Ifsuch default isnot cured within a period of two (2) calendar days, or ifmore than two (2) calendar days are reasonably required to cure the default and the defaulting party failsto give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default,and thereafterdiligentlytake steps to cure the default,the non-defaulting party may terminate the Agreement forthwithby givingto the defaultingparty writtennoticethereof.

28.2 Notwithstanding the above provisions, City shall have the right,at itssole and absolute discretion and without cause, of terminating thisAgreement at any time by giving no less than seven (7) calendar days’ priorwritten notice to Consultant. In the event of termination under this Section, City shall pay Consultant for Services satisfactorilyperformed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effectivedate of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated inthe performance of thisAgreement, whether in draft or final form.

29. STANDARD PROVISIONS

29.1 Recitals.Cityand Consultant acknowledge thatthe above Recitals are true and correctand are hereby incorporated by reference intothisAgreement.

29.2 Compliance with all Laws. Consultant shall, at itsown cost and expense, comply with allstatutes,ordinances, regulations and requirements of allgovernmental entities,includingfederal,state,county or municipal,whether now in force or hereinafter enacted. In addition,allWork prepared by Consultant shallconform to applicable City, county, stateand federallaws, rules,regulationsand permit requirements and be subject to approval of the ProjectAdministrator and City.

29.3 Waiver. A waiver by eitherparty of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character.

No verbal agreement or implied covenant shallbe held to vary the provisionsherein.

29.5 Conflicts or Inconsistencies. In the event there are any conflictsor inconsistenciesbetween this Agreement and the Scope of Services or any other attachments attached hereto, the terms of thisAgreement shallgovern.

Page 10 ends

203

29.7 Amendments. This Agreement may be modified or amended only by a writtendocument executed by both Consultant and City and approved as to form by the City Attorney.

29.10 Equal Opportunity Employment. Consultant represents that itis an equal opportunity employer and itshall not discriminate against any subcontractor, employee or applicant for employment because race, religiouscreed, color, national origin, ancestry, physical handicap, medical condition,marital status, sex, sexual orientation, age or any other impermissible basis under law.

29.11 No Attorneys’ Fees. Inthe event of any dispute or legalaction arisingunder thisAgreement, the prevailingparty shallnot be entitledto attorneys’fees.

This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an originaland allof which together shall constituteone (1) and the same instrument.

29.12 Counterparts.
[SIGNATURES ON NEXT PAGE]
Proactive Engineering Consultants, Inc.dba Q3 Consulting Page 11 204
IN WITNESS WHEREOF, the partieshave caused thisAgreement to be executed on the dates written below.

APPROVED AS TO FORM:

CITY ATTORNEY’S OFFICE
Date;

CITY OF NEWPORT BEACH,
a Californiamunicipal corporation
Date:

By: By:

AaronC.Harp ix- t5 OJ^City Attorney
Lauren Kleiman
Mayor
ATTEST:

Date:

CONSULTANT: PROACTIVE
ENGINEERING CONSULTANTS, INC.

DBA Q3 CONSULTING, a California
corporation
Date:

By: By:

Lena Shumway
City Clerk
John McCarthy
Secretary
Date:

By:

Thomas Ryan
Principal
[END OF SIGNATURES]
Attachments: ExhibitA - Scope of Services
ExhibitB - Schedule of BillingRates
ExhibitC - Insurance Requirements
Proactive Engineering Consuitants,Inc.dba Q3 Consulting Page 12 205

EXHIBIT A

SCOPE OF SERVICES
Proactive Engineering Consultants, Inc.dba Q3 Consulting Page A-1 206

SCOPE OF SERVICES

ON-CALL CIVIL - SCOPE OF SERVICES
Consultant shallprovide CivilEngineeringservicesforthe conceptual and finaldesign of a wide varietyof Citycapitalimprovement and maintenance projects.Consultant shallprovide in-house services,or capacityto subconsultant,forthe followingareas:

Provide fullplans,specifications,and estimates for a broad range of civilengineering disciplines;
Provide cost estimating and value engineering services; Providebid support and preparationof record drawings;
Provideconstructionsupport,administration,and management services; Provide constructiontrafficcontrolconcepts and plans;
Provideproject-specificprofessionalsurveyingservices;
Review public/privatedevelopment plansand maps;
Provide regulatorypermitting support;
Prepare variousstudiesand supportingdocumentationfor,but not limited to, hydrology and hydraulicanalysis,water and sewer studiesand network analysis; Prepare/reviewNPDES reports.Water QualityManagement Plan (WQMP), and Storm Water PollutionPrevention Plans (SWPPP);
Preparemaps and legaldescriptionsforright-of-wayacquisitionand easements; and Other engineering-relatedtasksas necessary.
207

EXHIBIT B

SCHEDULE OF BILLING RATES
ProactiveEngineeringConsultants,Inc.dba Q3 Consulting Page B-1 208 Fee Schedule
RFQ No. 26-13
Professional CivilEngineering Services
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October 23, 2025
Submitted to Submitted by

PROACTIVEENGINEERING CONSULTANTS
209
Consulting

FEE SCHEDULE
January 1,2025 through December 31, 2025
Compensation for work performed on a time and materialsbasiswillbe computed as follows:

MANAGEMENT HOURLY RATE
CONSTRUaiON SUPPORT
Principal
Director
Associate
Sr.ProjectManager, Sr.Technical Manager
ProjectManager
$280.00
..255.00
..253.00
..253.00
..231.00
Principal
Sr.ProjectManager, Sr.Technical Manager
Project Manager
FieldEngineer
Administration
$267.00
.212.00
,.195.00
,.190.00
...89.00

CIVIL ENGINEERING SERVICES
Senior ProjectEngineer
Project Engineer
Senior Designer
Designer
Engineer
Design Engineer, Design Technician
CAD Technician,Design Engineer Technician
ProjectTechnician/ProjectCoordinator
Engineering Technician
Administration
Engineering Intern
$230.00
..210.00
..205.00
..193.00
..188.00
..165.00
..139.00
..127.00
..121.00
..107.00
....92.00

ESCALATION
Rates shown are applicableonlyforservicesprovided
during the 2025 calendar year. Rates forservices
provided insubsequent years are subjectto an annual
increaseof 3% effectiveeach January 1'^
Allexpert fees and overtime fees shallbe approved in
writingby the Citypriorto being incurred.

SURVEY AND MAPPING SERVICES
FieldSupervisor
Project Surveyor....

GIS Specialist
Survey Analyst
Three Person Crew
Two Person Crew..

One Person Crew...
$212.00
..186.00
..171.00
..132.00
..335.00
-.285.00
..205.00
NOTE; FOR SURVEY WORK REQUIRING PREVAILING
WAGE
Three Person Crew
Two Person Crew..

One Person Crew...
$395.00
..336.00
..215.00

SPECIAL SERVICES
$520.00ConsultationRe: Litigation

DRY UTILITY SERVICES
$245.00
..200.00
..188.00
..165.00
..115.00
..103.00
....92.00
....89.00
Principal
Sr.Project Manager, Sr.Technical Manager
Project Manager
Senior Designer
Project Coordinator
CAD Technician
Assistant Project Coordinator
Administration
1 |Page
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211
N2W Engineering,Inc.

Time and Materials Rate Schedule
January 2025
Technical Experts and Practice Leaders Unit Rate
TechnicalAdvisor and Technical Expert $305Per Hour
PrincipalEngineer and Executive Director $295Per Hour
Vice Presidentand Managing Director $290Per Hour
Engineering and Project Management Unit Rate
Senior Project Manager $285Per Hour
Project Manager and Senior Engineer $260Per Hour
Deputy Project Manager and Project Engineer III $235Per Hour Project Engineer II $220Per Hour
Project Engineer I $210Per Hour
StaffEngineer III $205Per Hour
StaffEngineer II $200Per Hour
StaffEngineer I $190Per Hour
Engineering Associate $175Per Hour
Operations and Maintenance Unit Rate
Operation Manager $185Per Hour
$150Senior Operator Per Hour
$140Operator II Per Hour
$130Operator I Per Hour
$90Operator inTraining Per Hour
Maintenance and Repair Manager $185Per Hour
$150Maintenance and RepaIrTechnician li Per Hour
Maintenance and RepaIrTechnician I $130Per Hour
Installation and Construction Unit Rate
Installation& ConstructionManager $215Per Hour
Installation& ConstructionSuperintendent $195Per Hour
Installation & Construction Foreman $140Per Hour
Technical Support and Administrative Unit Rate
Sr.CAD Designer $175Per Hour
$140CAD Designer Per Hour
Project Coordinator $125Per Hour
ProjectAdministrator $105Per Hour
Other Expenses Unit Rate
$0.75VehicleMileage Per Mile
$155N2W Truck Use {minimum YzDay) Per Day
$310Travel Per Diem Per Day
Subcontractor and Material Markup 15
Notes;
Per diem includes meals, lodging and incidentals;but does not include transportation related expenses. Rates for other equipment not noted to be negotiated and provided upon request.

Allexpert fees and overtime fees shallbe approved in writing by the Citypriorto being incurred.

Competition Sensitiveand Corporate ConfidentialMaterial 212
Rende Consulting Group
Hourly Rate Schedule
City of Newport Beach, CA
On-Call Professional CivilEngineering Services
RFP No. 26-13
Professional Personnel Hourly Rate
$ 200.00
$ 180.00
$ 160.00
PrincipalEngineer
Senior Engineer..

Project Engineer..

Support Hourly Rate
$ 150.00CADD Technician
Notes:

Rates shown are applicableonly forservicesprovided during the 2025 calendar year.

Allexpert fees and overtime fees shallbe approved in writingby the City priorto being incurred. 2243 1 Antonio Parkway ' Suite B1&a-47a • Rancho Santa (vIargarita • CA • 92688 • 949-713-67SC •
213
PRcmrivEENGINEERING CONSULTANTS
27051 Towne Centre Drive, Suite 270
FoothillRanch, CA 92610
(949) 259.64411 ProactiveEnglneering.net
214

EXHIBIT C

INSURANCE REQUIREMENTS - PROFESSIONAL SERVICES

1. Provision of Insurance. Without limitingConsultant’s indemnificationof City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at itsown expense during the term of this Contract, policiesof insurance of the type and amounts described below and in a form satisfactory to City. Consultant agrees to provide insurance in accordance with requirements setforthhere. IfConsultant uses existingcoverage to comply and thatcoverage does not meet these requirements,Consultant agrees to amend, supplement or endorse the existingcoverage.

2. Acceptable Insurers. All insurance policiesshall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance inthe State of California,with an assigned policyholders’ Rating of A- (or higher)and FinancialSize Category Class VII (or larger)in accordance withthe latesteditionof Best’sKey Rating Guide, unless otherwise approved by the City’sRisk Manager.

3. Coverage Requirements.

B. General Liability Insurance. Consultant shall maintain commercial general liabilityinsurance, and ifnecessary excess/umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than two million dollars($2,000,000) per occurrence, four milliondollars($4,000,000) general aggregate. The policy shall cover liabilityarising from bodily injury,property damage, personal and advertising injury,and liability assumed under an insured contract (includingthe tortliabilityof another assumed in a business contract).

C. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodilyinjuryand propertydamage forallactivities of Consultant ProactiveEngineering Consultants,Inc.dba Q3 Consulting Page C-1 215 arisingout of or in connection with Work to be performed under this Contract,includingcoverage forany owned, hired,non-owned or rented vehicles,in an amount not less than one milliondollars($1,000,000) combined singlelimitforeach accident.

D. Professional (Errors & Omissions) Insurance. Consultant shall maintain professionalliabilityinsurance thatcovers the Services to be performed inconnection with thisAgreement, inthe minimum amount of two million dollars($2,000,000) per claim and four milliondollars($4,000,000) in the aggregate. Any policyinceptiondate, continuitydate, or retroactive date must be beforethe EffectiveDate ofthisAgreement and Consultant agrees to maintain continuous coverage through a period no less than three years aftercompletion of the Services required by thisAgreement.

Excess/Umbrella LiabilityInsurance. Ifany Excess or Umbrella Liability policiesare used to meet the limitsof liabilityrequired by thiscontract, then said policiesshall be “followingform” of the underlying policy coverage, terms, conditions,and provisions and shall meet all of the insurance requirements stated inthiscontract,including,but not limited to, the additionalinsured and primary & non-contributory insurance requirements stated herein. No insurance policies maintained by the City,whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess/umbrella liabilitypolicies are exhausted.

E.
other Insurance Requirements. The policiesare to contain,or be endorsed to contain,the followingprovisions:

B. Additional Insured Status. Ailliabilitypoliciesincludinggeneral liability, excess/umbrella liability,and automobile liability,if required, but not includingprofessionalliability,shallprovide or be endorsed to provide that City,itsCity Council, boards and commissions, officers,agents, volunteers and employees shall be included as additional insureds under such policies.

ProactiveEngineering Consultants,Inc.dba Q3 Consulting Page C-2 216 c. Primary and Non-Contributory. Consultant’s insurance coyerage shall be primaryinsuranceand/orthe primarysource ofrecoyerywith respect to the City,itsCity Council, boards and commissions, officers,agents, yolunteersand employees. Allliabilitycoyerage shallapply on a primary basis and shallnot requirecontributionfrom any insurance or self- insurance maintained by City.

D. Notice of Cancellation.All policiesshallproyide City with thirty(30) calendar days’ notice of cancellation or nonrenewal of coyerage (except fornonpayment forwhich ten (10)calendar days’ noticeis required)for each required coyerage.

5. AdditionalAgreements Between the Parties. The partieshereby agree to the following:

A. Eyidence of Insurance.Consultantshallproyidecertificatesof insurance to Cityas eyidence of the insurance coyerage requiredherein, along with a waiyer of subrogation endorsement forworkers’ compensation and other endorsements as specifiedherein for each coyerage. Allof the executed documents referenced in this Contract must be returned to City withinten
(10) regularCitybusiness days afterthe date on the “Notification of Award”. Insurance certificates and endorsements must be approyed by City’sRisk Manager priorto commencement of performance. Current certificationof insurance shallbe kept on filewith Cityat alltimes during the term of this Contract. The certificates and endorsements for each insurance policyshallbe signed by a person authorized by that insurer to bind coyerage on itsbehalf. At leastfifteen(15) days priorto the expirationof any such policy,eyidence of insurance showing that such insurance coyerage has been renewed or extended shallbe filed with the City. Ifsuch coyerage is cancelled or reduced. Consultant shall, withinten (10) days afterreceiptof writtennoticeof such cancellation or reduction of coyerage, filewith the City eyidence of insurance showing that the required insurance has been reinstated or has been proyided through another insurance company or companies. City reseryes the right to require complete, certifiedcopies of all required insurance policies,at any time.

City’sRightto Reyise Requirements. The Cityreseryes the rightat any time during the term of the Contract to change the amounts and types of insurance required by giying Consultant ninety(90) calendar days’ adyance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiateConsultant'scompensation.

Proactiye Engineering Consultants,Inc.dba Q3 Consulting Page C-3 217 c. Right to Review Subcontracts. Consultant agrees thatupon request, all agreements with subcontractors or others with whom Consultant enters intocontractswith on behalf of Citywillbe submitted to Cityforreview.

Failureof Cityto requestcopies ofsuch agreements willnot impose any liabilityon City,or itsemployees. Consultant shallrequire and verifythat all subcontractors maintain insurance meeting allthe requirements stated herein,and Consultant shallensure that Cityis an additional insured on insurance requiredfrom subcontractors.For CGL coverage, subcontractors shallprovide coverage with a format at least as broad as CG 20 38 04 13.

D. Enforcement of Agreement Provisions.Consultantacknowledges and agrees that any actual or alleged failureon the part of City to inform Consultant of non-compliance with any requirement imposes no additionalobligationson Citynor does itwaive any rightshereunder.

E. Requirements not Limiting.Requirements ofspecificcoverage features or limits contained in this Section are not intended as a limitation on coverage, limitsor other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature isfor purposes of clarificationonly as itpertains to a given issue and isnot intended by any partyor insuredto be allinclusive, or to the exclusion of other coverage, or a waiver of any type. Ifthe Consultant maintains higher limitsthan the minimums shown above, the City requires and shall be entitledto coverage for higher limits maintained by the Consultant, Any available proceeds in excess of specifiedminimum limitsof insurance and coverage shall be available to the City.

Self-insurancewillnot be considered to comply withthese requirements unless approved by City.

G. City Remedies for Non-Compliance. IfConsultant or any subconsultant failsto provide and maintain insurance as required herein, then City shallhave the rightbut not the obligation,to purchase such insurance, to terminate thisAgreement, or to suspend Consultant’s rightto proceed untilproper evidence of insurance is provided. Any amounts paid by City shall,at City’ssole option, be deducted from amounts payable to Consultant or reimbursed by Consultant upon demand.

ProactiveEngineering Consultants,Inc.dba Q3 Consulting Page C-4 218 H. Timely Notice of Claims. Consultant shallgive Cityprompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under thisContract, and that involve or may involve coverage under any of the required liabilitypolicies.City assumes no obligationor liabilityby such notice,but has the right(but not the duty)to monitor the handling of any such claim or claims ifthey are likelyto involveCity.

I. Consultant’sInsurance. Consultant shallalso procure and maintain, at itsown cost and expense, any additionalkinds of insurance,which in its own judgment may be necessary for its proper protection and prosecution of the Work.

ProactiveEngineering Consultants,Inc.dba Q3 Consulting Page C-5 219

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 9
ABSTRACT:

The City of Newport Beach (City) utilizes contract services to perform landscape maintenance of City medians and roadsides . As part of the agreement, Brightview Landscape Services, Inc. ( Brightview) performs an extensive number of on-call services, such as emergency storm response, irrigation part replacement, plant replacement, landscape enhancements and City street-tree planting. If approved, t he amendment will allow up to $2 million in additional on-call services throughout the agreement term which expires November 30, 2027.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. Two to the Maintenance and Repair Services Agreement with Brightview Landscape Services, Inc . for Landscape Maintenance of Medians and Roadsides to increase the on-call portion of the contract by $2 million for a new on-call not-to-exceed amount of $6,380,068 and a total not-to-exceed amount of $21,249,760 and authorize the Mayor and City Clerk to sign the amendment.

DISCUSSION:

This agreement encompasses landscape maintenance for over 265 acres of medians and roadside landscape throughout the City. The landscape on medians and roadsides along major arterials, such as Coast Highway, is constantly in public view, as tens of thousands of residents, visitors and commuters travel these streets per day. Other examples of the sites maintained include landscape d slopes in Newport Coast, the landscape and hardscape areas in the Newport Pier and Balboa Pier parking lots, street end landscaping along the beach and bay , the landscape areas arou nd the Newport Coast Community Center and the Oasis Senior Center , the Balboa Village area, and several Utilit ies Department sites, including Big Canyon Reservoir . Landscape maintenance activities TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Kevin Pekar, Parks & Trees Superintendent - 949-644-3069 [email protected]
TITLE: Amendment to Landscape Services Agreement for Medians and Roadsides with Brightview Landscape Services, Inc. (Contract No. 8651-1)
220
Approval of Amendment Two to Maintenance and Repair Services Agreement for Landscape Maintenance of Medians and Roadsides with Brightview Landscape Services, Inc. (Contract No. 8651-1)
January 13, 2026

Page 2 ends

include lawn mowing and care, trimming of groundcover and shrubs; irrigation monitoring, repairs and adjustments; small tree maintenance; refuse policing; weed control; and other related duties.

The current seven-year agreement with Brightview was entered into on December 1, 2020, at a total not-to-exceed (NTE) amount of $16,350,000. The on-call portion of the contract was initially set at an NTE of $2,100,068, or approximately $300,000 per year. Typical on- call services include emergency storm response, traffic accident repairs, irrigation part replacements, unforeseen plant replacements, seasonal color chang e-outs, landscape enhancements, City street -tree planting s, clean-ups, and repairs and planting s due to vandalism. Brightview’s on-call services have been utilized throughout the years of the agreement more than anticipated. For example, unprecedented rainfall over several years created rapid weed growth over non-contract streets and sidewalks necessitating extra on- call weed abatement services . Replacement of plant materials and the cost of irrigation parts for repairs have increased due to inflation and supply chain issues . Brightview has also assisted immensely with the City’s street tree planting initiative. Staff has relied on the contractor to install up to 20 trees a month, which at times includes restoring parkway irrigation and landscaping.

Several landscap e projects on the horizon will require Brightview’s assistance (e.g. irrigation and landscape enhancements along East Coast Highway, f rom Seaward to Evening Canyon ). These improvement and rehabilitation needs are expected to stay consistent throughout the remainder of the contract term.

The table below shows some of the typical on-call expenditures Brightview has made to date and the approximate annual cost associated with each. The table is not inclusive of all types of on-call work performed.

Typical Expenditures Average
Annual Cost
Irrigation Repair Parts $200,000
Traffic Accident Repairs $50,000
Plant Replacements, Seasonal Color, Debris & Weed Abatement $270,000 Tree Replacements (Street Trees) $130,000
Landscape Enhancements (smaller non-CIP type work) $190,000

To maintain high quality and attractive median and roadside areas , staff request s an increase to the on-call portion of the agreement by $2 million for a new on-call NTE amount of $6,380,068 and total overall NTE of $21,249,760 for the seven-year term of the contract.

221
Approval of Amendment Two to Maintenance and Repair Services Agreement for Landscape Maintenance of Medians and Roadsides with Brightview Landscape Services, Inc. (Contract No. 8651-1)
January 13, 2026

Page 3 ends

FISCAL IMPACT:

The adopted budget include s sufficient funding for the remaining fiscal year . It will be expensed to the following Public Works Department accounts.

Account Name Org Number Account Number
Contract Services -Parks 0108031 811017
Public Landscape Enhancements 0108031 911008
Contract Services - Trees 0108032 811017
Maintenance and Repair Damage 0108031 851014
Maintenance Irrigation Repair 0108031 851038
Additional funding for future years will be programmed during the annual budget process.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activi ty is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Amendment No. Two to the Maintenance and Repair Services Agreement

222
AMENDMENT NO. TWO TO

MAINTENANCE/REPAIR SERVICES AGREEMENT
WITH BRIGHTVIEW LANDSCAPE SERVICES, INC. FOR

LANDSCAPE MAINTENANCE OF MEDIANS AND ROADSIDES
THIS AMENDMENT NO. TWO TO MAINTENANCE/REPAIR SERVICES
AGREEMENT (“Amendment No. Two”) ismade and entered intoas of this13th day of January, 2026 (“EffectiveDate”), by and between the CITY OF NEWPORT BEACH, a Californiamunicipal corporationand chartercity(“City”),and BRIGHTVIEW LANDSCAPE SERVICES, INC., a Californiacorporation(“Contractor”),whose address is California corporation,and ismade with referenceto the following:

RECITALS
A. On December 1, 2020, City and Contractor entered intoa Maintenance/Repair Services Agreement (Contract No. C-8651-1) (“Agreement”) to perform annual landscape maintenance services of City medians and roadsides (“Project”).

On June 27, 2023, City and Contractor entered intoAmendment No. One to the Agreement (“Amendment No. One”) to increase the totalcompensation available for fixed services to reflect the addition of an Enhanced Landscape Maintenance Lead Worker including corresponding fuel sub-charges for a pick-up truck and work equipment, and to increase the total compensation available for on-call services due to an increase in work volume that was not anticipated at the time the partiesentered intothe Agreement.

The parties desire to enter into thisAmendment No. Two to increase the total compensation availablefor on-callservices to satisfypayment for services to be performed, update the Contractor’sprojectmanager, update the Notices section, and update the insurance requirements.

NOW, THEREFORE, itismutually agreed by and between the undersigned parties as follows:

1. COMPENSATION TO CONTRACTOR
Section 4.1.2 of the Agreement is amended in itsentiretyand replaced with the following:
“4.1.2 Contractor’s compensation for all On-Call Services performed in accordance with thisAgreement, includingallreimbursable items, shall not exceed Six Million Three Hundred Eighty Thousand Sixty Eight Doliars and 00/100 ($6,380,068.00),withoutpriorwrittenamendment tothe Agreement.” Attachment A
223
Section4.1.3of the Agreement isamended initsentiretyand replaced with the following:
“4.1.3Contractor’scompensation for allServices performed in accordance with thisAgreement, includingallfixedand on-callServices and allreimbursable items, shall not exceed a grand totalamount of Twenty One Million Two Hundred Forty Nine Thousand Seven Hundred Sixty Dollarsand 00/100 ($21,249,760.00), without prior writtenamendment to the Agreement.”
The totalamended compensation reflectsContractor’scompensation for Services to be performed in accordance with thisAmendment No. Two, includingallreimbursable items and subconsultant fees, in an amount not to exceed Two Million Dollars and 00/100 ($2,000,000.00).

2. PROJECT MANAGER
Section 5.1 of the Agreement is amended in itsentiretyand replaced with the following:
“5.1 Contractor shalldesignate a ProjectManager, who shall coordinate all phases of the Project.This ProjectManager shallbe available to City at allreasonable times during the Agreement term. Contractorhas designated Adrian Bolanos to be its ProjectManager. Contractorshallnot remove or reassign the Project Manager or any personnel listedin ExhibitA or assign any new or replacement personnel to the Project without the priorwrittenconsent of City.City’sapproval shall not be unreasonably withheld with respect to the removal or assignment of non-key personnel.”

3. NOTICES
Section 26.3 of the Agreement is amended in itsentiretyand replaced with the following:
“26.3 Allnotices,demands, requests or approvals from Cityto Contractor shallbe addressed to Contractor at:

Attn: Adrian Bolanos
BrightView Landscape Services, Inc.
1960 South Yale Street
Santa Ana, CA 92704”

4. INSURANCE
As of this Effective Date of this Amendment No. Two, Exhibit H of the Agreement shall be deleted in its entirety and replaced with Exhibit H, attached hereto and incorporated herein by reference.Any reference to Exhibit H in the Agreement shall hereafter refer to Exhibit H attached hereto.

Page 2 ends

224

5. INTEGRATED CONTRACT
Except as expressly modified herein, allother provisions,terms, and covenants set forthinthe Agreement shallremain unchanged and shall be in fullforce and effect. [SIGNATURES ON NEXT PAGE]

Page 3 ends

225
IN WITNESS WHEREOF, the partieshave caused thisAmendment No. Two to be executed on the dates written below.

APPROVED AS TO FORM;
CITY ATTORNEY’S OFFICE
Date:f2^<ye.^
ronC. Harp
y Attorney

CITY OF NEWPORT BEACH,
a Californiamunicipal corporation
Date:

By:_ By:

Lauren Kleiman
Mayor
ATTEST:

Date:

CONTRACTOR: BRIGHTVIEW
LANDSCAPE SERVICES, INC., a
Californiacorporation
Date:

By: By:

Lena Shumway
City Clerk
Rene Rivera
Vice President and General Manager
[END OF SIGNATURES]
Attachments: Exhibit H - Insurance Requirements

Page 4 ends

226

EXHIBIT H

INSURANCE REQUIREMENTS - MAINTENANCE/REPAIR/JANITORIAL SERVICES Provision of Insurance. Without limitingContractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at itsown expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Contractor agrees to provide insurance in accordance with requirements set forth here. IfContractor uses existing coverage to comply and that coverage does not meet these requirements, Contractor agrees to amend, supplement or endorse the existingcoverage.

1. 2. Acceptable Insurers. All insurance policiesshall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California,with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latesteditionof Best's Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

Coverage Requirements.3.

A. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance, statutory limits, and Employer’s Liability Insurance with limitsof at least one milliondollars ($1,000,000) each accident for bodily injuryby accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code.

Contractor shall submit to City,along with the certificateof insurance, a Waiver of Subrogation endorsement in favor of City, its City Council, boards and commissions, officers,agents, volunteers, employees, and any person or entityowning or otherwise in legalcontrolof the property upon which Contractor performs the Project and/or Services contemplated by thisAgreement.

General Liability Insurance. Contractor shall maintain commercial general liabilityinsurance and, ifnecessary, umbrella liabilityinsurance, with coverage at leastas broad as provided by Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence, four milliondollars($4,000,000) general aggregate. The policy shall cover liabilityarising from premises, operations, products-completed operations, personal and advertising injury,and liabilityassumed under an insuredcontract(including the tort liabilityof another assumed in a business contract).

Contractor shall maintain automobileAutomobile Liability Insurance, insurance at least as broad as Insurance Services Office form CA 00 01 covering bodilyinjuryand propertydamage forallactivities of Contractor C.

Page H-1BRIGHTVIEW LANDSCAPE SERVICES, INC. 227
arisingout of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined singlelimiteach accident.

Umbrella or Excess Liability Insurance. Contractor shall obtain and maintain an umbrella or excess liabilityinsurance policy with limitsof not less than one milliondollars($1,000,000) thatwillprovide bodily injury, personal injuryand property damage liabilitycoverage at least as broad as the primary coverages set forthabove. Such policyor policies shall include the following terms and conditions:

A drop down featurerequiringthe policyto respond in the event that any primary insurance limitsare exhausted by paid claims; Pay on behalf of wording as opposed to reimbursement;
Concurrency of effectivedates with primary policies;
Policiesshall“followform” to the underlyingprimary policies;and Insureds under primary policiesshall also be insureds under the umbrella or excess policies.

4. Other Insurance Requirements. The policiesare to contain, or be endorsed to contain, the following provisions;
A. Waiver of Subrogation. Allinsurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City,itsCity Council, boards and commissions, officers,agents, volunteers, employees, and any person or entityowning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Agreement or shall specifically allow Contractor or others providing insurance evidence in compliance with these requirements to waive their rightof recovery prior to a loss.

Contractor hereby waives itsown rightof recovery against City,and shall require similarwritten express waivers from each of its subcontractors.

Additional Insured Status. All liabilitypolicies including general liability, products and completed operations, excess liability,pollution liability, and automobile liability,if required, shall provide or be endorsed to provide that City, itsCity Council, boards and commissions, officers, agents, volunteers, employees, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Agreement shall be included as insureds under such policies.

Page H-2BRIGHTVIEW LANDSCAPE SERVICES, INC. 228
c. Primary and Non Contributory. All liabilitycoyerage shall apply on a primary basis and shall not require contribution from any insurance or self-insurance maintained by City.

D. Notice of Cancellation. All policies shall provide City with thirty(30) calendar days notice of cancellation (except for nonpayment for which ten (10) calendar days notice isrequired)or nonrenewal of coverage for each required coverage.

5. Additional Agreements Between the Parties. The parties hereby agree to the following:

A. Evidence of Insurance. Contractor shall provide certificatesof insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation and other endorsements as specified herein for each coverage.

Insurance certificatesand endorsement must be approved by City’sRisk Manager priorto commencement of performance. Current certification of insurance shallbe kept on filewith City at alltimes during the term of this Agreement. The certificatesand endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on itsbehalf. At least fifteen(15) days priorto the expiration of any such policy,evidence of insurance showing that such insurance coverage has been renewed or extended shall be filedwith the City. If such coverage is cancelled or reduced, Contractor shall,within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, filewith the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the right to require complete, certifiedcopies of allrequired insurance policies,at any time.

City’s Right to Revise Requirements. City reserves the rightat any time during the term of the Agreement to change the amounts and types of insurance required by giving Contractor sixty (60) calendar days advance written notice of such change. If such change results in substantial additional cost to Contractor, City and Contractor may renegotiate Contractor’s compensation.

Right to Review Subcontracts. Contractor agrees that upon request, all agreements with subcontractors or others with whom Contractor enters into contracts with on behalf of City willbe submitted to City for review.

Failureof Cityto request copies of such agreements willnot impose any liabilityon City,or itsemployees. Contractor shallrequire and verifythat all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shallprovide coverage with a format at least as broad as CG 20 38 04 13.

Page H-3BRIGHTVIEW LANDSCAPE SERVICES. INC. 229
D. Enforcement of Agreement Provisions. Contractor acknowledges and agrees that any actual or alleged failureon the part of City to inform Contractor of non-compliance with any requirement imposes no additionalobligationson City nor does itwaive any rights hereunder.

Requirements not Limiting. Requirements of specificcoverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature Is for purposes of clarificationonly as itpertains to a given issue and isnot intended by any party or insured to be allinclusive, or to the exclusion of other coverage, or a waiver of any type. Ifthe Contractor maintains higher limitsthan the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limitsof insurance and coverage shall be available to the City.

F. Self-insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the rightto require that self- insured retentions be eliminated, lowered, or replaced by a deductible.

Self-insurance willnot be considered to comply with these requirements unless approved by City.

City Remedies for Non-Compliance. If Contractor or any subcontractor failsto provide and maintain insurance as required herein, then City shall have the right but not the obligation,to purchase such insurance, to terminate this Agreement, or to suspend Contractor’s right to proceed untilproper evidence of insurance is provided. Any amounts paid by City shall,at City’s sole option, be deducted from amounts payable to Contractor or reimbursed by Contractor upon demand.

Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under thisAgreement, and that involve or may involve coverage under any of the required liabilitypolicies. City assumes no obligation or liabilityby such notice, but has the right(but not the duty) to monitor the handling of any such claim or claims ifthey are likelyto involve City.

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

Page H-4BRIGHTVIEW LANDSCAPE SERVICES, INC. 230

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 10

ABSTRACT:

On April 15, 2025, the City Council awarded contract No. 9749-1 for the Corporation Yard, Utility Yard, and Oilfield Gate Rehabilitation project to Gold Coast Fence Inc. The project replaced aging gates and gate components at the Corporation Yard (592 Superior Ave .), Utilities Yard (949 W . 16th St .), Oilfield s (5904 West Coast H ighway) and Big Canyon Reservoir (3300 Pacific View Dr.). The work is now complete and staff requests City Council acceptance and closeout of the contract.

b) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project.

DISCUSSION:

Overall Contract Cost/Time Summary

Awarded Contract
Amount
Final Total Contract
Amount
Total Contract
Change Amount
Percent Contract
Cost Change
$304,768 $335,268 $30,500 10.0%
Allowed Contract Time + Approved
Extensions/Suspensions (Days) = 40 Actual Time Used (Days) 40

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Tom Sandefur, Assistant City Engineer - 949-644-3321, [email protected]
TITLE: Corporation Yard, Utility Yard and Oilfield Gate Rehabilitation – Notice of Completion for Contract No. 9749-1
231
Corporation Yard, Utility Yard and Oilfield Gate Rehabilitation – Notice of Completion for Contract No. 9749-1
January 13, 2026

Page 2 ends

This project is part of the Facilities Maintenance Master Plan (FMMP) and included the replacement of aging gates and gate components at the Corporation Yard, Utilit ies Yard, Oilfields and Big Canyon Reservoir, providing improved aesthetic appeal, functionality and reducing maintenance needs.

The contracted work has been completed to the satisfaction of the Public Works Department.

A summary of the construction cost is as follows:

Original Bid Amount: $ 304,768
Actual Cost of Bid Items Constructed: $ 304,768
Total Change Orders: $ 30,500
Final Contract Cost: $ 335,268

The total contract amount was $335,268, approximately 10% higher than the original bid amount. The additional cost resulted from added scope items not covered by the initial contract including catch poles, an embedded gate track, security wing panels, photo eyes, a pedestal, knox switches , and a button to enable gate opening functionality from the Corporation Yard offices. The security wing panels were needed to prevent unauthorized access into the Utilities Yard. All other items were implemented to increase functionality and durability of the gates.

A summary of the project schedule milestones is as follows:

FISCAL IMPACT:

The Corporation Yard, Utilities Yard and Oilfield Gate Rehabilitation project was included within the F iscal Year 2024-25 Capital Improvement Program Budget. Funds for the construction contract were expended from the following account(s):

Account Description Account Number Amount
FMMP 57101-980000-25F02 $ 335,268
Total: $ 335,268

The FMMP includes a comprehensive condition assessment of all City of Newport Beach facilities and prioritizes capital repairs and/or major maintenance based on a variety of factors including current condition and age of facilities. This program funds a variety of capital repair and maintenance projects and is funded by the General Fund.

Estimated Start of Construction per Annual Baseline Schedule August 18, 2025 Actual Start of Construction Per Notice to Proceed October 16, 2025 Estimated Completion Per Annual Baseline Schedule October 17, 2025 Substantial Completion Date Inclusive of Extra Work December 16, 2025 232
Corporation Yard, Utility Yard and Oilfield Gate Rehabilitation – Notice of Completion for Contract No. 9749-1
January 13, 2026

Page 3 ends

ENVIRONMENTAL REVIEW:

On April 15, 2025, City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Location Map

233

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CITY OF
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VICINITY MAP

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CITY YARD RE-ROOFING PROJECT

LOCATION MAP

CITY OF NEWPORT BEACH

PUBLIC WORKS DEPARTMENT
C-7719-1 08/25/20
Attachment A
234

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 11
ABSTRACT:

The Newport Beach Police Department (NBPD) requests City Council approval to accept a donation from the Newport Beach Police Foundation in the amount of $190,000 , to allocate the funds to the expenditure budget, and to complete a sole source procurement of 120 patrol rifles and related equipment. The purchase will allow for an upgraded, more reliable rifle equipped with better quality optical sights and related gear to be assigned to every patrol officer and sergeant. A sole source procurement with the requested vendor will allow purchase of a top -quality rifle directly from the manufacturer at a discounted cost.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Accept a restricted donation in the amount of $190,000 from the Newport Beach Police Foundation for the purchase of new patrol rifles and related equipment; c) Approve Budget Amendment No. 26 -046 increasing revenue in account 01035352 - 561005 and appropriating $190,000 to expenditure account 01035252-841023; and d) Approve a sole source procurement o f 120 patrol rifles and related equipment from SIONICS Weapons Systems of Tucson, Arizona and authorize the City Manager to execute a purchase order in an amount not to exceed $190,000.

DISCUSSION:

The existing inventory of patrol rifles have begun to show issues with reliability under field operating conditions, including a malfunction during a recent critical incident. The NBPD currently owns 95 AR15 rifles which are assigned to individual patrol officers, but not to sergeants. The department would like to replace the current inventory of patrol rifles with more reliable, better-quality rifles and increase the inventory by 25 rifles to assign each patrol sergeant a personal rifle. The Newport Beach Police Foundation has provided a TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Miner, Chief of Police - 949-644-3701, [email protected] PREPARED BY: Jonathan Stafford, Deputy Director - 949-644-3650, [email protected]
TITLE: Accept a Restricted Donation from the Newport Beach Police Foundation and Approve Purchase of Patrol Rifles
235
Accept a Restricted Donation from the Newport Beach Police Foundation and Approve Purchase of Patrol Rifles
January 13, 2026

Page 2 ends

donation in the amount of $190,000 to cover all costs of the new patrol rifles and related equipment such as optical sights, suppressors, rifle mounted flashlights, and slings.

Sole Source Justification
The NBPD’s Firearms Training Unit (FTU), which includes certified instructors and armorers, evaluated the patrol rifle marketplace seeking AR-15 type rifles that are widely used by law enforcement agencies and have a good reputation for quality, reliability and customer service. The FTU requested test rifles from several potential vendors that met those criteria and then put the rifles through rigorous testing that simulated a variety of field use conditions. After a thorough evaluation, the FTU unanimously chose the Patrol Three SBR rifle from SIONICS Weapon Systems (SWS). SWS won the evaluation process and has the lowest cost . SWS provides several important characteristics that justify a sole source procurement:
 Direct-to-manufacturer purchasing allows for shorter production time, quicker access to parts and repairs , and a direct relationship with the armorers that build and test each rifle. SWS only sells directly to law enforcement agencies and does not use resellers.
 The SWS Patrol Three rifle is the lowest cost of the rifles considered by the FTU.  SWS will receive all the accessories, fully assemble the rifle , including important factory tuning to ensure quality and reliability of the rifle and attached accessories, and ship the rifles ready to be sighted in and issued. This will save at least 250 hours of FTU police officer time.
 SWS has a demonstrated history of providing reliable rifles to several large law enforcement agencies, including the New Mexico State Police, Colorado Department of Public Safety, Atlanta Police, Albuquerque Police, and the Ventura County Sheriff’s Department.
 The SWS Patrol Three rifle is built with several features that are not available from other manufacturers that contribute to a rifle that is reliable in all conditions. These components include a chrome -lined barrel x -ray inspected for flaws, a specially coated bolt carrier group, enhanced springs and full tuning and testing of the fully assembled rifles. The agencies listed above have had SWS rifles in service for several years and they have been completely reliable.

FISCAL IMPACT:

The budget amendment records $190,000 in additional revenue from a donation by the Newport Beach Police Foundation and $190,000 in increased expenditure appropriations.

The revenue will be posted to the Private Donations/Contributions account in the Police Department, 01035352-561005, and the purchase will be expensed to the Shooting Range Supplies account in the Police Department, 01035352-841023. The current 236
Accept a Restricted Donation from the Newport Beach Police Foundation and Approve Purchase of Patrol Rifles
January 13, 2026

Page 3 ends

budget is sufficient to cover ongoing maintenance and other expenses for the patrol rifles and accessories.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activit y will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, be cause it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Donation Letter from the Newport Beach Police Foundation Attachment B – Budget Amendment No. 26-046
237

Attachment A
Donation Letter from the Newport Beach Police Foundation

238

December 2, 2025
Jonathan Staﬀord
Newport Beach Police Department
870 Santa Barbara Dr.

Newport Beach, CA 92660
VIA email
Re: Donation to Newport Beach Police Department

Dear Mr. Staﬀord,
We are pleased to present a donation to the Newport Beach Police Department in the amount of $190,000. This substantial donation is for the sole purpose of facilitating the Department’s purchase of the following equipment:
• AR 15 Patrol Riﬂes, in a quantity and from a manufacturer to be determined within the reasonable discretion of the Newport Beach Police Department. • Ancillary equipment for the Riﬂes including but not limited to suppressors, riﬂe bags, accessories (optics, sighting systems, mounted lights), spare parts, maintenance equipment and armorer tools.

It is a privilege for the Newport Beach Police Foundation to fund this essential equipment through the generosity of our donors.

Sincerely,
Newport Beach Police Foundation
_________________________
Karen Yelsey
President
_________________________
Brandon Kordower
Treasurer
Newport Beach Police Foundation 501(3)(c) EIN 46-3322480 2549 Eastbluﬀ Dr. #358 Newport Beach, CA 92660
239

Attachment B
Budget Amendment No. 26-046

240
241

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 12
ABSTRACT:

On June 24, 2025, the City Council awarded contract No. 9438-1 for the Via Lido Sewer Main Lining project to Insituform, LLC. The project installed a cured-in-place liner inside the existing 15-inch sewer pipeline along Via Lido, between Newport Boulevard and Via Oporto. The work is now complete and staff requests City Council acceptance and closeout of the contract.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15 302(c), Class 2 of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project.

DISCUSSION:

Overall Contract Cost/Time Summary

Awarded Contract
Amount
Final Total Contract
Amount
Total Contract
Change Amount
Percent Contract
Cost Change
$333,439 $267,440 -$65,999 -19.79%
Allowed Contract Time + Approved
Extensions (Days) = 45 Actual Time Used (Days) 22

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Michael J. Sinacori, Assistant City Engineer - 949-644-3342, [email protected]
TITLE: Via Lido Sewer Main Lining – Notice of Completion for Contract No. 9438-1
242
Via Lido Sewer Main Lining – Notice of Completion for Contract No. 9438-1 January 13, 2026

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This project installed 520 lineal feet of water cured -in-place liner within the existing 15 - inch sewer pipeline along Via Lido, between Newport Boulevard and Via Oporto. This stretch of sewer line ha d been experiencing significant ground water intrusion and was identified by the Utilities Department for replacement or rehabilitation . The most cost - effective solution was to install a liner in the sewer to significantly redu ce the intrusion.

The work included setting up traffic control, providing and running a sewer bypass system, performing pre- and post-project Closed-Circuit Television ( CCTV) inspection, cleaning and inspecting the host pipe, installing sleeve point repair s at two locations, and re - establishing sewer laterals and manhole openings.

The contracted work has been completed to the satisfaction of the Public Works Department. A summary of the construction cost is as follows:

Original Bid Amount: $ 333,439
Actual Cost of Bid Items Constructed: $ 267,440
Total Change Orders: $ 0
Final Contract Cost: $ 267,440

The total contract amount was $267,440, which was approximately 20% lower than the original bid amount. This cost decrease was due to savings in the allowance bid items.

The allowance bid items included sewer bypasses and trenchless point repairs, which were less than anticipated to complete the planned work.

A summary of the project schedule milestones is as follows:

Distributing notices and setting up traffic control took most of the working days. The sewer bypass system and installation of the liner only took one week.

FISCAL IMPACT:

The Via Lido Sewer Main Lining was included within the Fiscal Year 2024-25 Capital Improvement Program Budget. Funds for the construction contract were expended from the following account(s):

Account Description Account Number Amount
Wastewater Enterprise Fund 71101-980000-25S03 $ 96,834.77 Wastewater Enterprise Fund 71201-980000-25S03 $ 170,605.23 Total: $ 267,440.00
Estimated Start of Construction per Annual Baseline Schedule September 15, 2025 Actual Start of Construction Per Notice to Proceed September 15, 2025 Estimated Completion per Annual Baseline Schedule December 5, 2025 Substantial Completion Date Inclusive of Extra Work November 17, 2025 243
Via Lido Sewer Main Lining – Notice of Completion for Contract No. 9438-1 January 13, 2026

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The Wastewater Enterprise Fund generates revenue primarily through sewer rates collected from service users.

ENVIRONMENTAL REVIEW:

On June 24, 2025 the City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c), Class 2 (reconstruction of existing facility involving negligible or no expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Location Map

244
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LIMITS OF WORK

VIA LIDO SEWER MAIN LINING CITY OF NEWPORT BEACH

PUBLIC WORKS DEPARTMENT
C-9438-1 1/13/26LOCATION MAP 24S03

ATTACHMENT A
WEST
32ND ST

NEWPORT BLVD

VIA LIDO
VIA
OPORTO

HIGHWAYCOAST
245

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 13
ABSTRACT:

The Newport Beach Public Library’s (NBPL) Project Adult Literacy program is funded by the City of Newport Beach General Fund, grants, donations and the fundraising efforts of the Newport Beach Public Library Foundation . One of the major funding sources is through the California Library Literacy Services’ annual grant program. Staff requests approval of a budget amendment to accept a check from California Library Literacy Services to support the NBPL’s Project Adult Literacy program.

DISCUSSION:

The Project Adult Literacy (PAL) program has offer ed one-on-one tutoring and small group classes to patrons with low literacy skills for nearly 40 years. These services currently support over 70 learners and mak e a significant difference in the lives of the participants, both learners and volunteers. One of the goals of the program is to assist the participants in becoming more engaged citizens and active members of the community.

The grant funds will be used towards staffing to ensure that the high-quality program that the community has come to expect continues.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Melissa Hartson, Library Services Director - 949-717-3801, [email protected]
PREPARED BY: Rebecca Lightfoot, Library Services Manager - 949-717-3819, [email protected]
TITLE: Budget Amendment to Accept a Check from the California Library Literacy Services and Appropriate the Funds to the Library’s Fiscal Year 2025-26 Budget
246
Budget Amendment to Accept a Check from the California Library Literacy Services and Appropriate the Funds to the Library’s Fiscal Year 2025-26 Budget January 13, 2026

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The Fiscal Year 2025-26 City contribution for PAL is $120,930. Program expenses are augmented by the California Library Literacy Services (CLLS) grant program and through private donations and other grants. The CLLS grant funds to literacy programs annually based on an application submitted in August.

There are three parts to the program’s funding formula:
 Each approved California literacy program receives a base grant amount of $25,000;
 A per capita amount per adult learner served; and
 Additional funding based on local funds raised and expended for adult literacy services.

As a result, PAL received a total award of $41,935. Ninety percent of the award, $37,742, is given upfront in November. The remaining 10 percent is eligible for distribution after PAL has completed mid-year reporting to CLLS and spent 75 percent of the total award.

FISCAL IMPACT:

The budget amendment appropriates $ 41,935 in additional revenue from CLLS and $41,935 in increased expenditure appropriations with no impact on fund balance. The revenue will be posted to the California Literacy Campaign account in the Library Services Department, 01060005 -431070 and the purchases will be expensed to the following Library PAL accounts:

Salaries P/T 01060604-711003 $37,036.99
Retirement Part-Time/Temp 01060604-723004 $4,289.95
Medicare 01060604-727016 $608.06
TOTAL $41,935.00
ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a proj ect as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been notice d according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Budget Amendment
247
Attachment A
248

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 14
ABSTRACT:

For the City Council’s consideration is authorization to participate in the Regional Early Action Planning (REAP) 2.0 Program in partnership with the Orange County Council of Governments (OCCOG). If authorized, OCCOG would provide grant-funded technical consultant assistance to support the City of Newport Beach ’s Housing Element Policy Action 4H (Review Mixed-Use Zones) and City Council Policy K-4 (Reducing Barriers to the Creation of Housing). The project will evaluate existing mi xed-use zoning standards to identify regulatory, physical and economic impediments and develop best practices to better facilitate infill mixed-use development. OCCOG selected Houseal Lavigne through a competitive process to complete the approximately $200 ,000 project, which will be managed by OCCOG in coordination with the City . While no local fund matching is required, the City must provide staff support for outreach and public presentations and conclude the effort by June 30, 2026 . Importantly, the City is not obligated to amend its Zoning Code or General Plan based on the project’s findings.

DISCUSSION:

The Southern California Association of Governments (SCAG) previously issued grant funds to the OCCOG to establish a technical consultant bench that would support OCCOG member agencies in completing Housing Element Implementation Programs.

The partnership is referred to as the “Subregional Partnership Program 2.0. ” In March 2025, the City applied to OCCOG for technical assistance to complete Housing Element Policy Action 4H: Review Mixed -Use Zones (Project), which is intended to review and TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jaime Murillo, Acting Community Development Director - 949-644- 3209, [email protected]
PREPARED BY: Liz Westmoreland, AICP, Principal Planner - 949-644-3234, [email protected]
TITLE: Authorizing Receipt of Services Under the Regional Early Action Planning (REAP) 2.0 Program for Housing Element Implementation 249
Authorizing Receipt of Services Under the Regional Early Action Planning (REAP) 2.0 Program for Housing Element Implementation
January 13, 2026

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identify opportunities to improve existing zoning regulations related to Mixed-Use zoning districts. The Project would also implement the “Planning Commission Review and Recommendations for Mixed -Use Designations” component of Council Policy K -4 (Reducing Barriers to the Creation of Housing) . This component was intended to determine constraints to the redevelopment of mixed -use properties and recommend code changes or policy ideas to reduce regulatory barriers.

In May 2025, OCCOG selected the City to receive technical assistance to complete the Project and issued a request for proposals to its consultant bench. In October 2025, two proposals were received and OCCOG identified Houseal Lavigne as the best suited consultant to provide services to the City.

To complete the Project, H ouseal Lavigne will evaluate existing mixed -use zoning standards to develop best practices for mixed -use zoning that will allow underutiliz ed properties to redevelop with a mix of housing and resident -serving nonresidential uses.

The Project would explore existing impediments to the production of housing in proximity to services including physical, regulatory and economic constraints. These best practices for mixed -use zoning would also be implementable on a region al basis to better encourage the development of mixed -use housing in proximity to services. Relevant areas of focus may include minimum lot sizes, lot consolidation incentives, park ing minimums, and height limits, among other possibilities. The consultant’s proposed scope of work is included as Attachment B. The value of the contract is approximately $200,000.

Although the City is not a direct recipient of the grant funds and will not be responsible for managing the grant nor the consultant , the attached Letter Agreement (Attachment A) must be executed to accept the services. The services exceed $10,000, and pursuant to Council Policy F -25 (Grant Administration ), City Council authoriz ation is required to execute the support agreement.

To accept the consultant services, the City would be obligated to co nclude the effort by June 30, 2026. Additionally, the City would be required to allocate sufficient staff time to support the consultant in comp leting the scope of work , which includes an outreach component and prep aration of a staff report and presentation s to the Planning Commission and City Council , with a recommendation “to consider the information and conclusions identified in the deliverables.” Importantly, the City is not obligated to amend its Zoning Code or General Plan based on the findings of the Project.

FISCAL IMPACT:

There is no fiscal impact related to this item.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA 250
Authorizing Receipt of Services Under the Regional Early Action Planning (REAP) 2.0 Program for Housing Element Implementation
January 13, 2026

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Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Regional Early Action Planning (REAP) 2.0 Project Funding Letter Agreement
Attachment B – Houseal Lavigne Proposed Project Approach

251

Attachment A
Regional Early Action Planning (REAP) 2.0 Project Funding Letter Agreement 252
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Regional Early Action Planning (REAP) 2.0 Project Funding Letter Agreement

November 13, 2025

Seimone Jurjis, Assistant City Manager
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660

RE: Regional Early Action Planning (REAP) 2.0 Housing Element Program Implementation Support Agreement

Dear Mr . Jurjis,

This letter is in response to the City of Newport Beach’s (City) request for technical assistance in furtherance of the City’s Hous ing Element Policy Action 4H: Review of Mixed Use Zones project.

For this project, OCCOG, with the assistance of Consultant Houseal Lavigne , will provide technical assistance to the City through its available REAP 2.0 program funding being administered in partnership with the Southern California Association of Governments (SCAG) to implement Housing Element programs and streamline housing development in the region.

Key details and responsibilites of each agency are outlined below.

• Anticipated Start Date: November 17, 2025
• Expected Completion Date: June 30, 2026
• City Responsibilites:
o Engage in public outreach to notify community members and stakeholders of the potential changes with the aid of the work performed under this Task Order.
o Complete outreach with stakeholders and community members, including any disadvantaged communities and historically underserved communities within its boundaries, as applicable.
o Promote awareness and encourage local support by inviting local elected officials in the project area to outreach activities.
o Upon completion of the work, the City will prepare a report and provide a presentation to the Planning Commission and City Council as an action item Docusign Envelope ID: 06F93607-7BDD-4D52-870A-E215906C47E3 253
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with a recommendation to consider the information and conclusions identified in the proposed deliverables.
• OCCOG Responsibilities:
o Provide consultant and contract oversight to ensure the below deliverables are completed by the consultant . Houseal Lavigne’s scope of work includes an Administrative Draft, Screencheck Draft, and a Final Draft for all proposed deliverables.
▪ Mixed-Use Zoning Evaluation Report: Houseal Lavigne will evaluate the City’s existing mixed-use zoning standards and prepare a study that provides an in -depth analysis of the potential impediments and constraints that discourage or prevent mixed -use development in designated zones citywide. The study will include a succinct executive summary with a list of recommendations and best practices for the City to consider implementing, and potential development outcomes resulting from the updated mixed-use zoning standards.
▪ Conceptual Plan Test Studies: Houseal Lavigne will prepare high -level conceptual plans for at least three of the City’s mixed -use zoning districts, using a typical property in each zoning district as an example.

These conceptual plan test studies should serve as a tool to understand the feasibility of redevelopment within the City’s mixed-use zones, and to determine the existing impediments to redevelopment. These test studies are intended to reveal appropriate zoning code changes that could make the most significant impact. The results of this task should be included in the report and inform the various recommendations. ▪ Economic Feasibility Analysis: Using the Conceptual Plan Test Studies as a basis, Houseal Lavigne will prepare a high-level economic analysis to determine if the existing or proposed zoning regulations can produce a financially viable project.
▪ Recommendations Report & Presentation: Houseal Lavigne will work with the City to produce a recommendations report with the conceptual plan test studies (including economic feasibility analysis) to be presented to the Planning Commission and City Council, with key takeaways from the mixed -use zoning standards study. The presentation to the City Council will be an action item with a recommendation to adopt or pursue all or a portion of the recommendations provided in the final deliverables.
o Houseal Lavigne should schedule a project kick -off meeting with the City by December 5, 2025. In addition, twice-monthly check-in meetings are expected

Docusign Envelope ID: 06F93607-7BDD-4D52-870A-E215906C47E3 254
11/13/25 (C:\Users\docusign\AppData\Local\Temp\ABCpdf\76b53efd-c379-45cc-8191-c98c6eb1eadc.docx) 3 to be held throughout the duration of this project. Designated staff from Houseal Lavigne will also be expected to attend one Planning Commission meeting and one City Council meeting.

This letter agreement affirms the City’s participation in the REAP 2.0-funded Housing Element program implementation and its commitment to developing the above listed deliverables for the City. The goal will be to develop an implementable recommendations report with the conceptual plan test studies (including economic feasibility analysis) to be presented to Planning Commission and City Council, with key takeaways from the mixed -use zoning standards study. The presentation to the City Counc il will be an action item with a recommendation to adopt or pursue all or a portion of the recommendations provided in the final deliverables.

The City acknowledges that its participation in the REAP 2.0-funded Housing Element program shall abide by the terms of the Memorandum of Understa nding No. M -002-25 between OCCOG and SCAG, as amended, a copy of which was provided by OCCOG to the City. Should you have any questions regarding this program, please contact Wendy Strack at [email protected].

Sincerely,

Brian Probolsky, OCCOG
Executive Director

ACKNOWLEDGED AND ACCEPTED:

CITY OF NEWPORT BEACH

_______________________________ ____________________ Seimone Jurjis Date
Assistant City Manager

Docusign Envelope ID: 06F93607-7BDD-4D52-870A-E215906C47E3 255

Attachment B
Houseal Lavigne Proposed Project Approach
256

PROPOSED

PROJECT

APPROACH
SECTION 02
257

PROJECT

UNDERSTANDING
The City of Newport Beach has identified implementation of Housing Element Policy Action 4H: Review of Mixed-Use Zones as a priority action to expand housing opportunities and encourage reinvestment in underutilized areas. As part of the 2006 Comprehensive General Plan Update and 2010 Zoning Code Update, new mixed-use housing opportunity zones were created throughout the City as a strategy to enhance and revitalize underperforming and underutilized properties. These areas included the Airport Area, Dover/Westcliff, Newport Center, Mariners Mile, and portions of the Balboa Peninsula.

While some areas such as the Airport Area and Newport Center have seen successful mixed-use redevelopment, other areas like Dover/Westcliff, Mariners’ Mile, and portions of the Balboa Peninsula remain largely underutilized, often limited to single-use retail or office. While the City has established mixed-use zoning districts, existing regulations may not fully support the level or type of redevelopment necessary to address current and future housing needs. Barriers such as minimum lot size requirements, limited incentives for lot consolidation, restrictive parking ratios, and height limitations may be constraining the feasibility of new housing within these areas. This indicates that current development standards such as setbacks, height, density, parking, and dedication requirements may be limiting redevelopment potential. To fully realize the City’s housing opportunities, a review of mixed-use land use categories and zoning regulations is needed to identify policy and code changes that reduce barriers and incentivize vibrant, mixed-use residential development.

Through this REAP 2.0 Technical Assistance project, the City seeks to evaluate these barriers, test redevelopment feasibility, and develop actionable strategies to promote mixed-use, infill housing development in areas already well-served by infra- structure and city services. Importantly, the City is not seeking a theoretical analysis, but rather a practical roadmap that can inform zoning refinements, guide redevelopment strategies, and support decision-making by the Planning Commission and City Council.

Our understanding is that this project must balance multiple priorities:
• Housing Production: Identifying changes that meaningfully increase the capacity and feasibility of housing in mixed-use areas.
• Vibrant Communities: Ensuring that redevelopment integrates resident-serving commercial and reinforces Newport Beach’s high quality of life.
• Economic Realism: Testing whether regulatory adjustments and incentives produce financially viable development scenarios.
• Equity and Outcomes: Demonstrating measurable results in housing choice, fair housing, and VMT reduction consistent with REAP 2.0 guidelines.

We also recognize that the City will lead public and stakeholder engagement, including outreach to disadvantaged and histor- ically underserved communities. Our role will be to provide clear, accessible, and visually compelling deliverables that help staff communicate complex zoning, market, and design considerations in a way that fosters community understanding and informed decision-making.

Ultimately, this project represents an opportunity for the City to align zoning with housing needs by promoting sustainable infill development, and advancing the goals set forth in the 6th Cycle Housing Element while delivering measurable outcomes under REAP 2.0. Houseal Lavigne and our team bring the planning, design, economic, and geospatial expertise necessary to support the City in realizing this vision.
7 CITY OF NEWPORT BEACH | REAP 2.0 TECHNICAL ASSISTANCE PROJECT Prepared by Houseal Lavigne
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Our team will deliver a comprehensive, outcomes-driven approach that directly supports the City of Newport Beach’s Housing Element Policy Action 4H: Review of Mixed-Use Zones. Building on the City’s existing mixed-use zoning framework, we will evaluate current regulations, test redevelopment feasibility, and identify strategies to remove barriers to housing production. This effort is designed to promote infill development in areas well-served by City services, encourage redevelop- ment of underutilized parcels, and support the creation of thriving communities that integrate housing with resident-serving commercial uses.

The project approach is structured around four primary tasks, with REAP 2.0 outcomes reporting embedded throughout.

TASK A: MIXED-USE ZONING EVALUATION REPORT
We will begin with a comprehensive audit of the City’s mixed-use zoning regulations. Areas of focus will include minimum lot sizes, incentives for lot consolidation, parking requirements, and height limits. This evaluation will identify barriers that may be constraining infill housing development and will compare Newport Beach’s standards with best practices from other peer jurisdictions. The resulting analysis will form the basis for actionable recommendations.

Deliverable
• Draft Mixed-Use Zoning Evaluation Report (December 2025).

TASK B: CONCEPTUAL PLAN TEST STUDIES
To ground the zoning evaluation in real-world conditions, we will prepare high-level conceptual plans for selected sites. Using ArcGIS Urban, we will test multiple preliminary scenarios that illustrate redevelopment potential under existing and modified standards. These scenarios will provide clear visualizations of expected outcomes, including the number of dwelling units, required parking, and 3D building massing. This approach will demonstrate how adjustments to lot size, parking, or height could enable more viable mixed-use projects while offering stakeholders an intuitive way to understand trade-offs and oppor- tunities. Once preferred scenarios are identified, we will prepare high-fidelity 3D representations in Esri City Engine, creating compelling, detailed visualizations suitable for use by staff, elected officials, and the community during the City’s outreach process.

Deliverable:
• Draft Conceptual Plans for selected sites (February 2026).

PROJECT

APPROACH
8 REAP 2.0 TECHNICAL ASSISTANCE PROJECT | CITY OF NEWPORT BEACH Prepared by Houseal Lavigne
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TASK C: ECONOMIC
FEASIBILITY ANAL YSIS
Our team will pair each conceptual plan with a financial feasibility analysis to determine whether existing or proposed zoning regulations can support viable redevelopment. Project-specific pro forma models will test development outcomes under varying assumptions, including density, parking ratios, and incen- tive structures. Sensitivity testing will provide the City with insight into which zoning adjustments or incentives would have the greatest impact in unlocking housing potential.

Deliverables:
• Final Conceptual Plans (March 2026)
• Economic Feasibility Analysis for selected Sites (March 2026).

TASK D: RECOMMENDATIONS
REPORT AND PRESENTATION
Drawing from the zoning evaluation, conceptual plans, and feasibility analysis, we will prepare clear and actionable strategies to support the City’s Housing Element goals. Recommendations will focus on adjustments to zoning standards, incentive programs, and implementation measures that reduce barriers and promote rede- velopment of underutilized parcels. We will prepare all materials in alignment with SCAG brand guidelines and present findings to the Planning Commission (April 2026) and City Council (May 2026).

Deliverables:
• Final Recommendations Report (April 2026)
• Planning Commission presentation (April 2026)
• REAP 2.0 Measurable Outcomes Report (April/May 2026)
• City Council presentation (May 2026).
9 CITY OF NEWPORT BEACH | REAP 2.0 TECHNICAL ASSISTANCE PROJECT Prepared by Houseal Lavigne
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REAP 2.0 MEASURABLE OUTCOMES COLLECTION APPROACH
In accordance with SCAG and State REAP 2.0 Program Guidelines, our team will collect, analyze, and report measurable base- line and outcome data to demonstrate project impact. This process will integrate geospatial analysis, scenario modeling, and advanced visualization to ensure that outcomes are both quantifiable and clearly communicated to staff, decision makers, and the community. Baseline data will be established at project initiation, scenario testing will be conducted throughout using ArcGIS Urban, and final outcome data will be documented with high-fidelity 3D models in City Engine.

The results will be compiled into a comprehensive outcomes report to demonstrate progress toward accelerating housing supply, affirmatively furthering fair housing (AFFH), and reducing VMT. For each metric, our team will establish a baseline at project initiation, measure projected outcomes through scenario analysis and code evaluation, and document final results in the required reporting framework.

The following are summaries of the tasks and approaches for the six measurable baselines and outcomes to be reported for this project, with two metrics selected from each category: Accelerating Supply, Choice, and Affordability; Affirmatively Furthering Fair Housing (AFFH); and Reducing VMT.

ACCELERATING SUPPL Y, CHOICE, AFFORDABILITY
We will measure how the project increases housing capacity and reduces regulatory barriers to multifamily development.

Baseline data will establish the current development rate, permitting timelines, and multifamily housing trends from the 5th cycle. Outcomes will quantify added residential capacity, policy or process changes, and new multifamily development poten- tial. This ensures the project demonstrates measurable progress in expanding supply, choice, and affordability.

1. Increase in housing development potential, process improvements, and streamlining ○ Baseline: Current development rate (units/year) from the 5th RHNA cycle for both the City and targeted mixed-use sites. ○ Collection Approach: Use Housing Element APR data, building permit records, and GIS parcel-level data. ArcGIS Urban scenarios will be used to estimate additional unit capacity under revised standards. ○ Outcome Tracking: Report increase in construction rate (projected additional number of units) and expected affordable units.

2. Changes in local policy and processes making it easier/quicker to build multi-family infill ○ Baseline: Number of MFR buildings and development rate during the 5th cycle; affordable unit counts (if available). ○ Collection Approach: Document existing permitting timelines, policy requirements (lot size, parking, height, density), and barriers.
○ Outcome Tracking: Report policy/process changes, projected increase in multi-family development rate, and affordable housing potential.
10 REAP 2.0 TECHNICAL ASSISTANCE PROJECT | CITY OF NEWPORT BEACH Prepared by Houseal Lavigne
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AFFIRMATIVEL Y FURTHERING FAIR HOUSING (AFFH)
The project will track affordable housing opportunities in high-opportunity areas and monitor planning or investment activity in areas of concentrated poverty. Baseline conditions will document affordable unit production and local investment levels during the 5th cycle. Outcomes will measure increased affordable capacity, the number of new projects in opportunity-rich areas, and infrastructure investments supporting housing stability. This will demonstrate how the project advances equity and fair housing goals.

1. Increased capacity to achieve affordable housing in High or Higher Opportunity Areas ○ Baseline: Number of affordable buildings and units completed during the 5th cycle, organized by APR categories, and their locations relative to High/Highest Opportunity census tracts. ○ Collection Approach: Overlay RHNA data, AFFH maps, and project area zoning with SCAG Opportunity Maps. ○ Outcome Tracking: Report increase in affordable unit development potential in High/Highest Opportunity zones.

2. Direct dollars invested in areas of concentrated poverty ○ Baseline: Current local annual investment in housing-supportive infrastructure in areas of concentrated poverty. ○ Collection Approach: Track planning projects, capital improvements, and supportive infrastructure (utilities, mobility, public realm).
○ Outcome Tracking: Report estimated dollars directed toward housing-supportive infrastructure and neighborhood stabilization in areas vulnerable to displacement.

REDUCING VMT
We will evaluate how housing and land use changes reduce VMT by concentrating growth near transit and mobility connec- tions. Baseline data will capture existing residential units, land uses, and mobility options within ¼ and ½ mile of the project area. Outcomes will track new housing near transit, adoption of supportive land uses, and reductions in parking require- ments. Together, these metrics demonstrate the project’s contribution to lowering per capita VMT and supporting sustainable mobility.

1. Residential units within ¼ and ½ mile of transit/mobility connections ○ Baseline: Existing number of units within ¼ and ½ mile of transit stops and mobility connections. ○ Collection Approach: Use GIS analysis of SCAG transit/mobility datasets overlaid with existing housing inventory. ○ Outcome Tracking: Report expected number of new/preserved housing units within ¼ and ½ mile of transit, biking, and walking routes.

2. Number of land uses and mobility options in and around project areas ○ Baseline: Existing land use mix and mobility connections within ¼ mile of project areas. ○ Collection Approach: Use General Plan land use data, zoning, and SCAG mobility datasets. ○ Outcome Tracking: Report policy or zoning changes that expand land use mix and mobility options, as well as projected housing units enabled within proximity to mobility connections.

SUMMARY:

The project will track the six REAP 2.0 metrics to demonstrate measurable impacts on accelerating housing supply, affir- matively furthering fair housing (AFFH), and reducing VMT in Newport Beach. Using ArcGIS Urban to model redevelopment scenarios and City Engine for high-fidelity 3D visualizations, we will quantify increases in residential capacity, reductions in regulatory barriers, affordable housing opportunities in high-opportunity areas, investments in underserved neighborhoods, and proximity of new housing to transit and mobility connections. Baseline conditions will be established at project initiation, and all scenario results, projections, and outcomes will be compiled in the Final Outcomes Report, providing a comprehensive, actionable record for decision-makers and stakeholders. 11 CITY OF NEWPORT BEACH | REAP 2.0 TECHNICAL ASSISTANCE PROJECT Prepared by Houseal Lavigne
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PROPOSED

SCHEDULE
SECTION 03
263

PROPOSED

SCHEDULE
Our team has structured the project schedule to align with the City of Newport Beach’s objectives, the deliverable mile- stones outlined in the solicitation, and the updated requirements from Addendum 1. The timeline ensures that each task builds on the previous phase, integrates staff and stakeholder input, and produces deliverables on schedule for Planning Commission and City Council review.

MILESTONE TASK / DELIVERABLE TARGET COMPLETION
Project Initiation Kickoff meeting with City staff, confirmation of project goals, data collection plan established (baseline metrics collected) October 2025 Task A Draft Mixed-Use Zoning Evaluation Report December 2025 Task B / Task C Draft Conceptual Plan Test Studies
(including Economic Feasibility Analysis) February 2026 Task B / Task C Final Conceptual Plan Test Studies
(including Economic Feasibility Analysis) March 2026
Task D Findings Presentation – Planning Commission April 2026 Task D + REAP 2.0 Final Recommendations Report and REAP 2.0 Measurable Outcomes Report May 2026
Task D Final Presentation – City Council May 2026
Notes:
• All deliverables will adhere to SCAG branding and REAP 2.0 reporting requirements. • Drafts will be submitted for City and OCCOG review, with feedback incorporated into final versions. • The schedule ensures adequate time for review, outreach, and City Council presentation in alignment with the RFP timeline (Oct 2025 – Jun 2026).
15 CITY OF NEWPORT BEACH | REAP 2.0 TECHNICAL ASSISTANCE PROJECT Prepared by Houseal Lavigne
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SCHEDULE NARRATIVE
• October 2025: Project initiation, baseline data collection, and kickoff meeting to confirm study areas, metrics, and deliver- able expectations.
• October–December 2025: Zoning evaluation, regulatory audit, and best practices review, culminating in the Draft Mixed-Use Zoning Evaluation Report.
• January–February 2026: Preparation of three high-level conceptual plans for mixed-use districts and integration of economic feasibility analysis through pro forma modeling. Draft conceptual plan package delivered by February 2026. • March 2026: Refinement of conceptual plans and feasibility results into a final package of redevelopment test studies. • April 2026: Presentation of findings to the Planning Commission, providing a clear basis for discussion and refinement of recommendations.
• May 2026: Final recommendations delivered, paired with the REAP 2.0 Measurable Outcomes Report, followed by presen- tation to the City Council as an action item.

This schedule reflects the City’s requested deliverable dates and provides sufficient time for coordination with staff, stake- holder engagement, and internal quality control. Our team is committed to maintaining this schedule and will work closely with the City to ensure all deliverables are completed on time and in compliance with SCAG brand guidelines. 265

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 15
ABSTRACT:

City Council Policy F-3, Budget Adoption and Administration, requires quarterly reporting to the City Council of any grants or donations accepted by the city manager.

DISCUSSION:

Per City Council Policy F-3, the city manager accepted $12,901 during the quarter ending December 31, 2025:

Source Date Amount Use
Federal Emergency
Management Agency
(FEMA)
10/22/25 $12,901 Emergency Management
Performance Grant

FISCAL IMPACT:

There is no fiscal impact related to this item. Grants or donations accepted by the city manager were included in the Fiscal Year 2025 -26 budget via city manager approved budget amendments.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason Al-Imam, Adminstrative Services Director/Treasurer - 949- 644-3126, [email protected]
PREPARED BY: Anthony Alannouf, Budget Analyst -
949-644-3122, [email protected]
TITLE: Grants and Donations Report for the Quarter Ending December 31, 2025
266
Grants and Donations Report for the Quarter Ending
December 31, 2025
January 13, 2026

Page 2 ends

ENVIRONMENTAL REVIEW:

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

267

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 16
ABSTRACT:

In 2019, Assembly Bill No. 1705 (AB 1705) authorized the replacement of two existing Medi-Cal reimbursement programs with a single program under a new Public Provider Ground Emergency Medical Transport Intergovernmental Transfer (PP -GEMT-IGT) process. The City of Newport Beach (City) has been a participant since the inaugural Calendar Year (CY) 2023 progra m. While add-on amount payments are delayed due to medical bill processing times, total reimbursements (including pending amounts) continue to exceed original estimates. This program is voluntary and depend ent on the participation of all transporting agencies for it to remain successful. For the City Council’s consideration is the continued participation in the PP-GEMT-IGT.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Approve the City of Newport Beach’s voluntary participa tion in the PP -GEMT-IGT program per AB 1705 for Calendar Year 2026 and authorize the city manager to execute the Public Provider Intergovernmental Transfer Program for Ground Emergency Medical Transportation Services Certification Forms and pay all necessary invoices.

DISCUSSION:

The Medi-Cal program is the State of California’s Medicaid program and is administered through the California Department of Health Care Services (DHCS.) Medi -Cal provides qualified California residents with healthcare coverage, which can extend to Emergency Medical Services (EMS), including those provided by the City’s Fire Department. Unlike patients with private insurance (or in most cases, Medicare), Medi -Cal patients do not have copayments and medical providers like the City must accept Medi-Cal payments as payment in full.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jeff Boyles, Fire Chief - 949-644-3101, [email protected] PREPARED BY: Raymund Reyes, Administrative Manager – 949-644-3352, [email protected]
TITLE: Ground Emergency Medical Transport Intergovernmental Transfer Voluntary Participation for Calendar Year 2026
268
Ground Emergency Medical Transport Intergovernmental Transfer Voluntary Participation for Calendar Year 2026
January 13, 2026

Page 2 ends

Medi-Cal is partially governed and funded by federal Medicaid provisions. Medi-Cal patients typically average 10 - 15 percent of all City medical transports and the City is reimbursed for EMS services direc tly from the Medi -Cal program. Medi -Cal has historically paid a capitated base rate of $118.20 per transport since 1999, which is significantly lower than the actual costs for the City to provide transport service. The DHCS Quality Assurance Fee (QAF), Gro und Emergency Medical Transport (GEMT), and Intergovernmental Transfer (IGT) programs were State attempts to provide additional revenue to help offset the cost of service. The IGT remains viable, and the City continues to participate in this program.

AB 1705 was passed in 2019 and implemented in 2023, establishing a new Medi -Cal Public Provider Intergovernmental Transfer Program (PP -GEMT-IGT) for public ground emergency medical transportation providers. This program replaced the QAF and GEMT programs and provides additional payments to public providers who transport Medi -Cal patients.

PP-GEMT-IGT is funded by a combination of voluntary funds contributed by participating public ambulance providers (like the City) and matching federal funds. Since the State cannot use its own general funds to provide a match, the voluntary funds are transferred to DHCS. DHCS then uses the funding to obtain matching federal funds . This combined sum of voluntary and federal funds are then used to pay the add -on amount per eligible Medi-Cal transport to all participating agencies. DHCS manages this reimbursement process and can charge each agency a 10 percent administrative fee against the voluntary fund amount.

While approval is still pending at the State level, the prospective a dd-on amount for CY 2026 will be $1,518.61 per eligible transport. This is higher than the original, CY 2023 add-on amount of $946.92, and the revised CY 2025 add-on amount of $1,049.98. Once this amount is approved by the State, the total Medi -Cal payment per eligible transport will be $1,636.81.

PP-GEMT-IGT is funded by a combination of ambulance transport agency funds and a federal Centers for Medicare and Medicaid Services (CMS) match, called a Federal Financial Participation (FFP) . The State’s general fund cannot be utilized for this reimbursement program, so public ambulance providers voluntarily provide the State with the amount needed ( now over $110 million) through an Inter -Governmental Transfer.

DHCS uses these non-federal funds to draw down available matching federal funds, then uses the combined sum to pay the add -on amount per eligible Medi -Cal transport to all participating agencies. DHCS manages the reimbursement processes and charges an administrative fee of 10 percent of the non-federal share amount.

The CY 2026 add-on amount is currently $1,518.61 per pending State Plan Amendment (SPA) 25 -0030. This is higher than the CY 2023 $946.92 add -on amount and the amended CY 2025 add-on amount of $1,049.98. Once approved, this will result in a total Medi-Cal payment amount of $1,636.81 (including the normal $118.20 base rate.)

269
Ground Emergency Medical Transport Intergovernmental Transfer Voluntary Participation for Calendar Year 2026
January 13, 2026

Page 3 ends

The City Council previously approved participation for CY 2023, CY 2024 and CY 2025 .

Based on amounts received to date and pending amounts forthcoming, the program remains successful.

FISCAL IMPACT:

The City receives PP -GEMT-IGT add -on payments as part of the $118.20 base rate through the normal billing and collection process. This can result in a delay between the month that the transport occurred and the receipt of the State’s payment. As a result, pending amounts not yet collected cumulatively roll forward, and revenues received by the City may be add-on amounts from any program year to date.

PP-GEMT-IGT ADD ON FEES FOR CY 2023, CY 2024, CY 2025
Calendar
Year
Program
Payments to
DHCS
(excluding
10% admin
fee)
Original
Estimated
Revenue
Add-On Fees
Collected
through Oct
2025
Total Add-on
Fees Pending
Receipt (Jan.
2023 through
Oct. 2025)

PP-GEMT-IGT
Prospective
Total Revenue
for CY2023,
CY2024, CY
2025
2023 $399,377 $1,181,208 $565,514*
$3,015,134

$4,933,897 2024 $390,461 $1,155,655 $739,198
2025 $387,136 $1,154,120 $614,051
TOTALS: $1,176,974 $3,490,983 $1,918,763
*This amount includes approximately $3,520.80 in leftover QAF reimbursements received from DHCS during the PP-GEMT-IGT implementation process.

Even so, the program continues to surpass original estimates. Add-on fees collected have exceeded the City’s total contribution amounts to date. Based on another $3,015,134 in pending amounts due, revenue estimates may be upwards of $1,442,914 higher than originally anticipated for CY 2023, CY 2024 and CY 2025 combined.

DHCS
Payments to
Date

PP-GEMT-IGT
Prospective Total
Revenue to Date
Projected Net Revenue
(including pending amounts)
$1,176,974 $4,933,897 $3,756,923

To participate as a funding entity for CY 2026, the City must transfer local funds up to an estimated total contribution amount of $558,180, which includes the 10 percent administrative fee estimate. Based on current DHCS figures, the number of possible transports and the current program reimbursements , the City may expect to receive a total of $1,898,263 from the CY 2026 program at the new add-on rate, resulting in an approximate net revenue of $1,340,083.

It is important to note that depending on total agency participation and any reconciliation payments, the actual payments due during the year may be higher or lower. According to DHCS, the increase in the current non-federal share paid by agencies is due to the add- 270
Ground Emergency Medical Transport Intergovernmental Transfer Voluntary Participation for Calendar Year 2026
January 13, 2026

Page 4 ends

on amount increase, as well as various shifts in statewide utilization trends and trip increases in the proportion of GEMT trips by public providers.

It is also important to note that DHCS has not yet invoiced agencies any of the 10 percent administrative fee amounts and does not have a timeframe of when administrative fee collection will begin. Collections will likely be on a go -forward basis (i.e. no retro - collection).

The adopted budget includes sufficient funding for the first quarterly payment du e in January 2026. Payment will be expensed from the PP -GEMT-IGT account in the Fire Department’s EMS Division, 01040404 -821010. Finance Department staff will review payment estimates for the April 2026 payment and include any necessary budget amendments as part of the Quarter 2 budget report.

The two remaining payments in July and October 2026 will be incorporated into the Fiscal Year 2026-27 adopted budget. Anticipated revenues from the CY 202 6 program have been incorporated into the current year budget (for amounts previously estimated to be received prior to June 30, 2025) and will also be addressed during the Fiscal Year 2026- 27 budget process.

ENVIRONMENTAL REVIEW:

NOTICING:

The agenda item has been noticed according to the Brown Act (72 h ours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Certification for CY 2026 PP-GEMT-IGT Program for Invoice No. 1 Attachment B – CY 2026 PP-GEMT-IGT Invoice No. 1
Attachment C – Public Notice re. State Plan Amendment 25-0030 271
II^HCS

CALIFORNIA DEPARTMENT OF

HEALTH CARE SERVICES
MichelleBaass |Director

PUBLIC PROVIDER GROUND EMERGENCY MEDICAL TRANSPORTATION PROGRAM

INTERGOVERNMENTAL TRANSFER CERTIFICATION FORM
STATE CALENDAR YEAR 2026
I,the undersigned,hereby declareand certifyon behalfof
CITY OF NEWPORT BEACH (the"PublicEntity")as follows:

1. As a publicadministrator,a publicofficer,or other publicindividual,Iam duly authorized to make this certification.

2. The PublicEntity elects tomake thisintergovernmentaltransfer(IGT)to the Department of HealthCare Service(DHCS) as a voluntarycontribution to the non-federalshare(NFS)of Medi-Calexpendituresforpurposes of Assembly Bill 1705 (2019) pursuant to Sections 14105.94, 14105.945, 14129, 14129.3, and 14164 of the Welfare and Institutions(W&l) Code. Allfunds transferredpursuant to thiscertificationqualifyforfederalfinancialparticipation(FFP)pursuant to Section 1903(w) of the SocialSecurityAct and Title42 of the Code of Federal Regulations,Section433 Subpart B,and are not derivedfrom impermissible sources such as recycledMedicaid payments, federalmoney excluded from use as the NFS, impermissiblehealthcare-relatedtaxes,or non-bona fideprovider- related donations.

3. Voluntary contributionsattributableto the period of January 1,2024,through December 31,2026, willbe made viarecurringtransfersas indicated on the invoicesprovided to the PublicEntityby DHCS. The voluntarycontributionsmade by the PublicEntitymay alsoincludeadjustmentsrelatedto the calendaryear (CY) 2024 and CY 2025 ratingperiod'sNFS reconciliationas described in paragraph 7 below. Please note,the totalIGT amount at the bottom of this IGT certificationwillcontinueto be itemizedon your invoicewhich issent to you along with thisIGT certificationform 45-days inadvance of the IGT contribution due date.The PublicEntityacknowledges thatany transfersmade pursuant to thiscertificationduring thistime periodare consideredan elective IGT made pursuant to W&l Code sections14105.945 and 14164, to be used by DHCS, subjectto paragraph four herein,exclusivelyas the source forthe NFS of ground emergency medical transportpublicprovidersupplemental payments in both CaliforniaDepartment of Health Care Services
Capitated Rates Development Division
1501 CapitolAvenue, P.O.Box 997413
Sacramento,CA |95899-7413
MS 4413 Iwww.dhcs.ca.gov
State of California ,4
Gavin Newsom, Governor ^
CaliforniaHealthand Human ServicesAgency
Attachment A
272

PUBLIC PROVIDER GROUND EMERGENCY MEDICAL TRANSPORTATION PROGRAM

INTERGOVERNMENTAL TRANSFER CERTIFICATION FORM
STATE CALENDAR YEAR 2026
Medi-Cal fee forservice(FFS)payments and the portionof the risk-based capitationrateto Medi-Cal managed care healthplansassociated with reimbursement made in accordance with Section 14105.945, subdivision (h)(1) (hereafter,the AB 1705 PublicProvider(PP)Ground Emergency Medical Transportation(GEMT) Program, or the (PP-GEMT Program),and DHCS costs associatedwith administeringthe PP-GEMT Program.

4. DHCS may accept thisvoluntarycontributionto the extent it is able to obtain FFP forthe PP-GEMT Program as permittedby federallaw.In the event DHCS is unable to obtainFFP forthe PP-GEMT Program, or the fullpayments cannot otherwisebe made to and retainedby eligiblepublicproviders,and, therefore,all or a portionof the transferredamount cannot be used as the NFS of payments, DHCS willnotifythe PublicEntityviae-mailand returnthe applicableportionof the unused IGT amount.

5. The PublicEntityacknowledges thatstatelaw inW&l Code section 14105.945, subdivision(h)(2)authorizesDHCS, upon obtainingany necessary approvals,to assessa ten percent (10%) fee on each transferof publicfunds to the stateto pay forhealthcarecoverage and to reimburse DHCS itscosts associated with administeringthe PP-GEMT Program.The PublicEntityacknowledges thatwhile DHCS isnot assessingthisfee currentlypending federalapproval,DHCS has not waived itsrightto assessthe administrativefee under statelaw upon obtaining any necessaryfederalapprovals.

6. The PublicEntityacknowledges thatthe IGT isto be used by DHCS forthe filing of a claim with the federalgovernment forfederalfunds and understands that any misrepresentationregardingthe IGT may violatefederal and state law.

7. The amount voluntarilytransferredto DHCS isbased on the estimated Medi-Cal FFS and Medi-Cal managed care NFS of ground emergency medical transport payments, as referencedinparagraph threeherein.Since the amount to be voluntarilytransferredto DHCS willbe based on an estimate,the PublicEntity acknowledges thata reconciliationof the voluntaryNFS contributions to the actualNFS expenditureswilloccur.To the degree necessaryto fund the NFS for the PP-GEMT Program, amounts due to or owed by PublicEntityas a resultof the reconciliationmay be offsetagainst,or added to,futuretransfersas applicable CaliforniaDepartment of Health Care Services
CapitatedRates Development Division
1501 CapitolAvenue, P.O. Box 997413
Sacramento,CA) 95899-7413
MS 4413 Iwvvw.dhcs.ca.gov
State of California j
Gavin Newsom, Governor
CaliforniaHealthand Human ServicesAgency
273

PUBLIC PROVIDER GROUND EMERGENCY MEDICAL TRANSPORTATION PROGRAM

INTERGOVERNMENTAL TRANSFER CERTIFICATION FORM
STATE CALENDAR YEAR 2026
and as determined by DHCS. DHCS may accept a voluntarycontribution to the extent itisable to obtain FFP forPP-GEMT payments as permitted by federallaw.

The PublicEntityacknowledges thatallrecordsof funds transferredare subjectto review and auditupon DHCS' request.The PublicEntitywill maintain documentation supporting the allowablefunding source of the IGTs.

Upon noticefrom the federalgovernment of a disallowanceor deferral related to thisIGT,the PublicEntityresponsibleforthisIGT shallbe the entityresponsible forthe federalportion of that expenditure.

I hereby declare under penalty of perjuryunder the law of the United States that the foregoing istrue and correctto the best of my knowledge. 1 further understand that the known filingof a falseor fraudulentclaim,or making falsestatements in support of a claim,may violatethe FederalFalseClaims Act or other applicablestatuteand federallaw and may be punishablethereunder.

8. 9.

Executed on this day of ,20_at California.

SignatureofAuthorizedPerson:

Seimone JurjisName of Authorized Person:

CityManagerTitle of Authorized Person:

CITY OF NEWPORT BEACH
Name of PublicEntity:
1679579296
NPi of PublicEntity:
126,858.98Amount of IGT:$.

APPROVED AS TO FORM:

CITY ATTORNEY'S OFFICE
Dats;
State of California j
Gavin Newsom. Governor *
CaliforniaDepartment of Health Care Services
CapitatedRates Development Division
1501 CapitolAvenue, P.O.Box 997413
Sacramento,CA |95899-7413
MS 4413 Iwww.dhcs.ca.gov CaliforniaHealth and Human ServicesAgency 274
fe^HCSCALIFORNIA DEPARTMENT OF

HEALTH CARE SERVICES
Michelle Baass |Director

PUBLIC PROVIDER GROUND EMERGENCY MEDICAL TRANSPORTATION (PP-GEMT) PROGRAM

MANAGED CARE AND FEE FOR SERVICE - INVOICE
1/16/2026|EntityInformation: Due Date:

Entity Name:

CityOf Newport Beach Payment Details
Year: 2026 Contribution #: 1
NPI:
1679579296 Total Amount Due: $126,858.98
Program/Payee Information: Banking Information:

Vendor Name:

CaliforniaDepartment of Health Care Services
Bank Name:

US Bank
Please await Wire Request Memo for payment instructions PP-GEMT Program Email:

[email protected]
Payment Me^ods Accepted:
jACH or Wire Transfer J
Payment Instructions:

Attention: Please review,sign,and submit the Intergovernmental Transfer (IGT)Certificationform by January 2, 2026, to [email protected]. IGT Certificationforms are requiredto be submitted priorto each collectiondue date.Once the IGT Certification form is received,DHCS willsend a Wire Request Memo providingpayment detailsand instructions.Please do not send your IGT payment untilyou have received the Wire Request Memo as payment detailsare subject to change.

IGT Non-Federal Share (NFS) Breakdown By DHCS DeliverySystem Managed Care (MC)
MCNFS#1 $ 113,403.72
Fee For Service (FFSi
FFSNFS#! $ 13,455.26
Total* IGT Transfer Amount: $ 126,858.98
*Any differencesare due to rounding.

CY 2026 Invoicing Schedule
12/2^025
1/2/2026
Invoice Packets Sent
CY 2026 Invoice #1 IGT Certifications Due
Payment Due 1/16/2026
3/3/2026Invoice Packets Sent
CY 2026 Invoice #2 4/3/2026IGT Certifications Due
4/17/2026Payment Due
CY 2024 FFS Recon #1 Date of Service Jan-100 2024
CY 2025 MC Recon #1 Date of Service TBD
6/2/2026Invoice Packets Sent
7/3/2026CY 2026 Invoice #3 IGT Certifications Due
7/17/2026Payment Due
9/1/2026Invoice Packets Sent
CY 2026 Invoice U4 10/2/2026IGT Certifications Due
10/16/2026Payment Due
Date of Service Jul-Dec 2024CY 2024 FFS Recon «2
CY 2025 MC Recon « Date of Service TBD
275
Entity Information: Due Date: 1/16/2026
Payment Details:

Year: 2026 Contribution #: 1
1679579296
Program/Payee Information: Banking Information:

PP-GEMT Program Email: Payment Methods Accepted:

[email protected] ACH or Wire Transfer
Payment Instructions:

IGT Non-Federal Share (NFS) Breakdown By DHCS Delivery System Managed Care (MC)
MC NFS #1 113,403.72$
Fee For Service (FFS)
FFS NFS #1 13,455.26$
126,858.98$ Total* IGT Transfer Amount:
*Any differences are due to rounding.

California Department of Health Care Services US Bank
Please await Wire Request Memo for payment instructions Attention: Please review, sign, and submit the Intergovernmental Transfer (IGT) Certification form by January 2, 2026, to [email protected]. IGT Certification forms are required to be submitted prior to each collection due date. Once the IGT Certification form is received, DHCS will send a Wire Request Memo providing payment details and instructions. Please do not send your IGT payment until you have received the Wire Request Memo as payment details are subject to change.

NPI:

Total Amount Due: $126,858.98
Vendor Name: Bank Name:

PUBLIC PROVIDER GROUND EMERGENCY MEDICAL TRANSPORTATION (PP-GEMT) PROGRAM MANAGED CARE AND FEE FOR SERVICE — INVOICE
Entity Name:

City Of Newport Beach
CY 2026 Invoicing Schedule CY 2026 Dates of Service
Invoice Packets Sent 12/2/2025
IGT Certifications Due 1/2/2026
Payment Due 1/16/2026
Invoice Packets Sent 3/3/2026
IGT Certifications Due 4/3/2026
Payment Due 4/17/2026
CY 2024 FFS Recon #1 Date of Service Jan - Jun 2024
CY 2025 MC Recon #1 Date of Service TBD
Invoice Packets Sent 6/2/2026
IGT Certifications Due 7/3/2026
Payment Due 7/17/2026
Invoice Packets Sent 9/1/2026
IGT Certifications Due 10/2/2026
Payment Due 10/16/2026
CY 2024 FFS Recon #2 Date of Service Jul - Dec 2024
CY 2025 MC Recon #2 Date of Service TBD
CY 2026 Invoice #4
CY 2026 Invoice #1
CY 2026 Invoice #2
CY 2026 Invoice #3
Attachment B
276
Michelle Baass | Director
Director’s Office
P.O. Box No. 997413 | MS 0000
Sacramento, CA 95899-7413
Phone (916) 440-7400 | www.dhcs.ca.gov
State of California
Gavin Newsom, Governor
California Health and Human Services Agency
September 30, 2025

THIS LETTER SENT VIA EMAIL
Ms. Courtney Miller, Director
Division of Program Operations
Medicaid and CHIP Operations Group
Centers for Medicare & Medicaid Services
601 East 12th Street, Suite 0300
Kansas City, MO 64106-2898
STATE PLAN AMENDMENT 25-0030: PUBLIC PROVIDER GROUND EMERGENCY

MEDICAL TRANSPORT INTERGOVERNMENTAL TRANSFER PROGRAM
Dear Ms. Miller:

The Department of Health Care Services (DHCS) is submitting State Plan Amendment (SPA) 25-0030 for your review and approval. This SPA proposes to continue the Public Provider Ground Emergency Medical Transport Intergovernmental Transfer (PP-GEMT IGT) Program in calendar year (CY) 2026 to continue providing an add-on increase for eligible Ground Emergency Medical Transport (GEMT) services for dates of service January 1, 2026, to December 31, 2026.

SPA 22-0015 established the PP-GEMT IGT program to provide an add-on increase for eligible GEMT services when provided by qualified public providers in accordance with Assembly Bill (AB) 1705 (Chapter 544, Statutes of 2019).

Eligible public providers of GEMT services will be qualified to receive an add-on increase to the Medi-Cal Fee-For-Service fee schedule base rates for each eligible transport provided to Medi-Cal beneficiaries. The following service codes are eligible for the add-on increase:
• A0429 - Basic Life Support
• A0427 - Advanced Life Support, Level 1
• A0433 - Advanced Life Support, Level 2
• A0434 - Specialty Care Transport
• A0225 - Neonatal Emergency Transport
Attachment C
277
Ms. Miller

Page 2 ends

September 30, 2025
A
Notice of Public Interest for SPA 25-0030 was published on August 25, 2025, on the DHCS webpage. The Tribal Notice for this SPA was sent on August 22, 2025, and the Tribal Webinar was held on August 27, 2025. No comments have been received.

The following
SPA documents are enclosed for your review and ap proval:
• CMS 179 – Transmittal and Notice of Approval of State Plan Material • Supplement 29 to Attachment 4.19-B, Pages 3-4 – clean and redline versions • CMS Standard Funding Questions
• Public Notice
• Tribal Notice
If you have any questions or need additional information, please contact Aditya Voleti, Chief, Fee-For-Service Rates Development Division, at (916) 345-8717 or by email at [email protected].

Sincerely,
Tyler Sadwith
State Medicaid Director
Chief Deputy Director, Health Care Programs
California Department of Health Care Services
Enclosures
cc: Lindy Harrington
Assistant State Medicaid Director
Director’s Office
Department of Health Care Services
[email protected]
Rafael Davtian
Deputy Director
Health Care Financing
Department of Health Care Services
[email protected]
Alek Klimek
Assistant Deputy Director
Health Care Financing
Department of Health Care Services
[email protected]
Saralyn M. Ang-Olson, JD, MPP
Chief Compliance Officer
Office of Compliance
Department of Health Care Services
[email protected]
Aditya Voleti, Chief
Fee-For-Service Rates Development
Division
Department of Health Care Services
[email protected]
278

DEPARTMENT OF HEALTH AND HUMAN SERVICES FORM APPROVED
CENTERS FOR MEDICARE & MEDICAID SERVICES OMB No. 0938-0193

TRANSMITTAL AND NOTICE OF APPROVAL OF

STATE PLAN MATERIAL
FOR: CENTERS FOR MEDICARE & MEDICAID SERVICES

1. TRANSMITTAL NUMBER 2. STATE

3. PROGRAM IDENTIFICATION: TITLE OF THE SOCIAL

SECURITY ACT
TO: CENTER DIRECTOR

CENTERS FOR MEDICAID & CHIP SERVICES

DEPARTMENT OF HEALTH AND HUMAN SERVICES

4. PROPOSED EFFECTIVE DATE

5. FEDERAL STATUTE/REGULATION CITATION 6. FEDERAL BUDGET IMPACT (Amounts in WHOLE dollars) a. FFY $
b. FFY $

7. PAGE NUMBER OF THE PLAN SECTION OR ATTACHMENT 8. PAGE NUMBER OF THE SUPERSEDED PLAN SECTION OR ATTACHMENT (If Applicable)

9. SUBJECT OF AMENDMENT

10. GOVERNOR’S REVIEW (Check One)
GOVERNOR’S OFFICE REPORTED NO COMMENT OTHER, AS SPECIFIED:

COMMENTS OF GOVERNOR’S OFFICE ENCLOSED
NO REPLY RECEIVED WITHIN 45 DAYS OF SUBMITTAL

11. SIGNATURE OF STATE AGENCY OFFICIAL 15. RETURN TO

12. TYPED NAME

13. TITLE

14. DATE SUBMITTED

FOR CMS USE ONLY

16. DATE RECEIVED 17. DATE APPROVED

PLAN APPROVED - ONE COPY ATTACHED

18. EFFECTIVE DATE OF APPROVED MATERIAL 19. SIGNATURE OF APPROVING OFFICIAL

20. TYPED NAME OF APPROVING OFFICIAL 21. TITLE OF APPROVING OFFICIAL

22. REMARKS
FORM CMS-179 (09/24) Instructions on Back

XIX XXI
Please note: The Governor’s Office does not wish to review the State Plan Amendment.

1. TRANSMITTAL NUMBER 25-0030 2. STATE

3. PROGRAM IDENTIFICATION: TITLE OF THE SOCIAL

SECURITY ACT XIX

4. PROPOSED EFFECTIVE DATE January 1, 2026

5. FEDERAL STATUTE/REGULATION CITATION Title 42 C.F.R.
440.170 and 1905(a)(32) of the Act

6. FEDERAL BUDGET IMPACT (Amounts in WHOLE dollars) a.

FFY 2026 $24,159,000 b. FFY 2027 $8,917,000

7. PAGE NUMBER OF THE PLAN SECTION OR ATTACHMENT Supplement 29, Attachment 4.19-B pages 3-4

8. PAGE NUMBER OF THE SUPERSEDED PLAN SECTION OR ATTACHMENT (If Applicable) Supplement 29, Attachment 4.19-B pages 3-4

9. SUBJECT OF AMENDMENT One-year Public Provider Ground Emergency Medical Transport Intergovernmental Transfer Program for dates of service January 1, 2026 through December 31, 2026.

10. GOVERNORS REVIEW (Check One) OTHER, AS SPECIFIED: Please note: The Governor's Office does not wish to review the State Plan Amendment.

11. SIGNATURE OF STATE AGENCY OFFICIAL Redacted Signature

12. TYPED NAME Tyler
Sadwith

13. TITLE State Medicaid Director and Chief Deputy Director

14. DATE SUBMITTED September
30, 2025

15. RETURN TO
Department of Health Care
Services
Attn: Director's Office
P.O.

Box 997413, MS 0000
Sacramento,
CA 95899-7413
279
Supplement 29 To Attachment 4.19-B

Page 3 ends

STATE PLAN UNDER TITLE XIX OF THE SOCIAL SECURITY ACT
STATE: California

TN No. 25-0030
Supersedes
TN No. 25-0002 Approval Date: _______ Effective Date: January 1, 2026

ONE-YEAR PUBLIC PROVIDER GROUND EMERGENCY MEDICAL TRANSPORT

INTERGOVERNMENTAL TRANSFER PROGRAM

Introduction

The Public Provider Ground Emergency Medical Transport Intergovernmental Transfer (PP-GEMT IGT) program provides increased reimbursement to eligible public providers of ground emergency medical transport (GEMT) services by application of an add-on to the Medi-Cal fee-for-service (FFS) fee schedule rates for eligible GEMT services. The add-on will apply to the Healthcare Common Procedure Coding System (HCPCS) Codes described below, effective for services provided during the rate period of January 1, 2026, through December 31, 2026. The base fee schedule rates for GEMT services will remain unchanged through this amendment.

Definitions

“Emergency medical transport” or “GEMT” means the act of transporting an individual from any point of origin to the nearest medical facility capable of meeting the emergency medical needs of the patient by an ambulance licensed, operated, and equipped in accordance with applicable state or local statutes, ordinances, or regulations, excluding transportation by an air ambulance provider, that are billed with HCPCS Codes A0429 Basic Life Support Emergency; A0427 Advanced Life Support, Level 1, Emergency; A0433 Advanced Life Support, Level 2; A0434 Specialty Care Transport; and A0225 Neonatal Emergency Transport. An “emergency medical transport” does not occur when, following evaluation of a patient, a transport is not provided.

“Eligible provider” means a provider who is eligible for reimbursement of Medi-Cal emergency medical transports, and who continually meets all of the following requirements during the entirety of the rate period: (a) provides emergency Medi-Cal transports to beneficiaries, (b) is enrolled as a Medi-Cal provider for the period being claimed, and (c) is defined as a public provider, as described below.

“Public provider” means a provider that is owned or operated by the state, a city, county, city and county, fire protection district organized pursuant to Part 2.7 (commencing with Section 13800) of Division 12 of the Health and Safety Code, special district organized pursuant to Chapter 1 (commencing with Section 58000) of Division 1 of Title 6 of the Government Code, community services district organized pursuant to Part 1 (commencing with Section 61000) of Division 3 of Title 6 of the Government Code, health care district organized pursuant to Chapter 1 (commencing with Section 32000) of Division 23 of the Health and Safety Code, or a federally recognized Indian tribe.

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STATE PLAN UNDER TITLE XIX OF THE SOCIAL SECURITY ACT
STATE: California

TN No. 25-0030
Supersedes
TN No. 25-0002 Approval Date: _______ Effective Date: January 1, 2026 Effective January 1, 2023, public providers of GEMT services are not eligible to participate in the GEMT QAF program and will not receive the reimbursement rate add-on described on pages 1-2 of this Supplement.

Methodology

For services provided during the rate period of January 1, 2026, through December 31, 2026, the reimbursement rate add-on is a fixed amount. The resulting payment amounts are equal to the sum of the FFS fee schedule base rate and the add-on amount for each eligible ground emergency medical transport as listed by HCPCS Code in the table below. The reimbursement rate add-on will be paid for each eligible ground emergency medical transport on a per-claim basis as a supplemental payment to the base rate.

HCPCS
Code Description
Current Fee
Schedule
Rate*
Add On
Amount
Resulting
Payment
Amount
A0429 Basic Life Support, Emergency $118.20 $1,518.61 $1,636.81 A0427 Advanced Life Support, Level 1,
Emergency $118.20 $1,518.61 $1,636.81
A0433 Advanced Life Support, Level 2 $118.20 $1,518.61 $1,636.81 A0434 Specialty Care Transport $118.20 $1,518.61 $1,636.81 A0225 Neonatal Emergency Transport $179.92 $1,518.61 $1,698.53 *These are the base rates associated with these codes, but are subject to further adjustments pursuant to the State Plan.

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NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 17
ABSTRACT:

Peter Belden resigned from the Water Quality/Coastal Tidelands Committee (Committee) on November 28, 2025, prior to the expiration of his term on June 30, 2029. George Robertson also resigned from the Committee on November 28, 2025, prior to the expiration of his term on June 30, 2027. These resignations created two unscheduled vacancies on the Committee.

The City Clerk’s Office received nine applications to fill the vacancies. In accordance with City Council Policy A -2 (Boards, Commissions and Committees), City Charter Sections 702 and 705, and the Maddy Act, Mayor Lauren Kleiman is recommending candidates for nomination to fill the unscheduled vacancies. Following confirmation of the nominations, the City Council will have the opportunity to appoint two individuals to serve on the Water Quality/Coastal Tidelands Committee—one appointment for a term ending June 30, 2029, and one appointment for a term ending June 30, 2027.

RECOMMENDATIONS:

a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and

b) Confirm nominations for two vacancies on the Water Quality/Coastal Tidelands Committee.

DISCUSSION:

The resignations of Peter B elden and George Robertson created two unscheduled vacancies on the Water Quality / Coastal Tidelands Committee.

In accordance with City Charter Sections 702 and 705, City Council Policy A -2 (Boards, Commissions and Committees), and the Maddy Act, the Cit y Clerk’s Office initiated the recruitment process to fill the vacancies. A Notice of Unscheduled Vacancies was posted TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Lena Shumway, City Clerk - 949-644-3005,
[email protected]
PREPARED BY: Lena Shumway, City Clerk
TITLE: Confirmation of Nominations to Fill Two Unscheduled Vacancies on the Water Quality/Coastal Tidelands Committee
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on December 1, 2025, in the City Clerk’s Office, at the Central Library, and on the City Hall bulletin board. The notice was also posted on the City’s website and published in the Daily Pilot on December 4, 2025.

The application period closed on December 18, 2025, and nine applications were received.

Pursuant to City Council Policy A -2, Mayor Kleiman and Councilmember Michelle Barto reviewed all applications and Mayor Kleiman recommends the nomination of the following candidates to the Committee:
 Bilyen Eros
 Andy Boyum
 Timothy Burnham
 Daniel Gorczyca
The Committee serves in an advisory capacity to the City Council on matters related to protecting and improving water quality and habitat in Newport Bay and the ocean. The Committee advises and makes recommendations on policies, programs and projects that support and strengthen existing regulations, improve water quality and habitat, and educate the watershed population on the value of Newport Bay and the ocean. The Committee also advises the City Council on the implementation of the Tidelands Infrastructure Capital Plan, including sea level rise impacts on ocean beaches, ocean beach sand replenishment, and other capital projects affecting the ocean beaches and tidelands not assigned to other committees, and on any other matter referred by the City Council or city manager.

Copies of the nominated applicants’ applications are attached as Attachment A.

FISCAL IMPACT:

There is no fiscal impact related to this item.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the C alifornia Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Sectio n 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

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ATTACHMENT:

Attachment A – Water Quality/Coastal tidelands Committee Applications

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Attachment A
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292

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

January 13, 2026
Agenda Item No. 18
ABSTRACT:

For the City Council’s consideration is the approval and authorization of a new professional services agreement (PSA) with Kimley-Horn and Associates, Inc. (KHA) for consulting services to support the preparation of a specific plan for the Airport Area. As proposed, KHA will evaluate existing conditions, conduct outreach, develop and draft a regulatory specific plan for the Airport Area, and prepare the requisite environmental analysis pursuant to the California Environmental Quality Act (CEQA). The proposed PSA will carry an initial two-year term with a not-to-exceed cost of $612,398.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) an d 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve and authorize the Mayor and City Clerk to execute the Professional Services Agreement with Kimley Horn and Associates, Inc. for the Airport Area Specific Plan in an amount not -to-exceed $612,398 in a form substantially similar to the agreement attached to the staff report; and
c) Approve Budget Amendment No. 26-047 to record a budget transfer of $102, 159.01 from the General Fund to the General Fund CIP Fund where it will be expensed from 01201928-980000-20M11
DISCUSSION:

The planning area known as the “Airport Area” of Newport Beach is generally located southeast of the John Wayne Airport and bound by Campus Drive to the north east and northwest, Jamboree Road to the southeast, and Bristol Street to the south west, as depicted in Figure 1, below.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jaime Murillo, Acting Community Development Director - 949-644- 3209, [email protected]
PREPARED BY: Liz Westmoreland, AICP, Principal Planner - 949-644-3234, [email protected]
TITLE: Professional Services Agreement with Kimley-Horn and Associates, Inc. for Preparation of the Airport Area Specific Plan (PA2025-0035) 293
Professional Services Agreement with Kimley-Horn and Associates, Inc. for Preparation of the Airport Area Specific Plan (PA2025-0035)
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Figure 1, Airport Area identified in yellow shading.
2006 General Plan, Housing Element, and General Plan Update The 2006 Newport Beach General Plan Land Use Element identified this area for the maintenance and limited expansion of the currently developed mix of research and development, office, high technology, industrial , and commercial uses. However, it also identified the area as one of the greatest opportunities in the city to evolve from a business park to a mixed-use district with integrated and cohesive residential villages.

The 2006 General Plan’s vision was to develop up to 2,200 dwelling units of which approximately 1,877 total units have either been entitled or are under construction.

Although goals and policies were included for the orderly evolution of the Airport Area to a mixed-use district, including parks and paseos, the implementation has not occurred as envisioned. This is largely due to the onset of the 4th Cycle Housing Element and State Density Bonus law requirements , which collectively reduced regulatory barriers and mandated incentives or concessions that bypassed certain policies.

The City’s 6th Cycle Housing Element, adopted in 2022, continued to identify the Airport Area as a key focus area to accommodate redevelopment of housing projects that help the City meet its Regional housing Needs Assessment (RHNA) allocation. Policy Action 1A of the Housing Element and the associated Housing Opportunity (HO) Overlay Zoning Districts that implement the Housing Element , identify opportunities for up to 2,577 new dwelling units within this area. Notably, these are in addition to the 2,200 units contemplated as part of the 2006 General Plan.
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With the 6th Cycle Housing Element in place, the City is currently working with community members to complete the first comprehensive update of the 2006 General Plan. Through community outreach and engagement, it is evident that there is a desire to ensure planning for the Airport Area is done thoughtfully and comprehensively. While not yet adopted, the draft Land Use Element memorializes this feedback through providing direct policy support for preparing a comprehensive planning document to govern development in the Airport Area.

Specific Plan for the Airport Area
A “specific plan” is a zoning document that implements the goals and policies of the General Plan. It contains detailed development standards and implementation measures for the comprehensive and cohesive buildout of an area, including primary and supporting land uses, infrastructure, traffic, mobility, public amenities, parks, and long-term economic sustainability.

Given the original intention of the Airport Area identified in the 2006 General Plan and additional emphasis on it being appropriate to accommodate more density in the 6th Cycle Housing Element, thoughtful and intentional planning is important to the success of this area. Establishing a comprehensive specific plan allows the City to plan its future and usher in meaningful and thoughtful change for an area of the city that has traditionally supported business, industry and airport-related uses.

The Specific Plan would also provide an oppo rtunity to update and consolidate existing zoning districts in the Airport Area, including several planned communities that are outdated and no longer reflect the City’s vision of the future . Namely these are the Koll Center Planned Community (PC-15), adopted in 1972 and amended 34 times since, and the Newport Place Planned Community (PC-11), adopted in 1971 and amended 43 times since. Together, these govern most of the Airport Area and provide little flexibility to property owners.

Although housing opportunity sites have already been identified, and some projects have received entitlements or are beginning construction, a specific plan will still provide value to the community and the future of the Airport Area, especially its residents, business owners, and visitors. As housing is built, the Airport Area will need to evolve . It will be critical to comprehensively and proactively identify infrastructure, mobility, connectivity, public parks and amenit y needs, as well as opportunities to incentivize the commercial services that are necessary to support newer residential communities like grocers and personal service providers.

Request for Proposals (RFP) Process
City staff released a Request for Proposals (RFP) seeking proposals from qualified firms interested in assisting with the study and preparation of a specific plan for the Airport Area. The RFP was posted on the City’s public procurement system (PlanetBids.com) on May 15, 2025 , and distributed directly to a short list of planning firms. The response deadline was June 16, 2025. Responses were received from four firms: Kimley-Horn and 295
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January 13, 2026

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Associates, Inc. (KHA); SWA Group; Place works, Inc. (Placeworks); and Gruen Associates, Inc. (Gruen).

The City employed a three -step process to evaluate the proposals and select a consultant. The steps included technical review, cost ratio analysis, and interviews.

For the technical review, the proposals were evaluated by a three-person staff panel and given an initial technical score. The initial technical score did not consider cost, rather proposals were evaluated based on the relevant experience of the firm, qualifications of key personnel, and approach to the study.

The best practice of excluding cost fro m the initial review allowed the panel to independently review the qualifications of the firms before considering the overall cost to provide the service. This practice also requires proposers to earn a certain percentage of points in the technical review (70%) to advance to the cost review. In this case, all proposals scored sufficiently to advance to the second step, which is the cost ratio analysis.

During the cost ratio analysis, it was found that proposals varied substantially.

Additionally, the RFP i ncluded “optional tasks” for more Infrastructure Evaluation and CEQA documentation. Because some firms did not provide a response to the optional tasks, a clarification email was submitted to all proposers, asking firms to provide proposals for these two a dditional tasks should the City choose to include them in the contract. All four firms provided a response with clarifications and/or updates to the proposals and cost scores as they deemed appropriate. Excluding optional tasks, such as the Infrastructure Evaluation and CEQA documentation , the revised cost proposals ranged from $439,484 (KHA) to $799,061 (Gruen).

Based on the updated proposals, the two highest scoring proposals from the technical review and cost ratio analysis were KHA and Placeworks . Both firms were invited to interview with the staff panel on October 9, 2025. Staff had the opportunity to adjust scores based on the firms’ performance in the interview.

At the conclusion of the RFP evaluation process, KHA emerged as the consultant with the highest overall score and most likely to achieve the City’s objectives . Table 1 summarizes the overall scores for all four firms.

Table 1: Proposal Evaluation Summary
Proposer Total Score Overall Rank
KHA 2840.00 1
Placeworks 2517.70 2
SWA Group 2376.70 3
Gruen Associates 2250.00 4
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KHA’s proposal not only scored the highest during the technical evaluation but also scored the highest in terms of cost ratio. Thus, the City issued a Notice of Intent to Award to KHA on October 16, 2025. The Professional Services Agreement with KHA is included as Attachment A of the staff report.

KHA Work Plan
The work plan submitted by K HA is robust and includes the support of only one subconsultant for the economic analysis component of the project, Kosmont Companies.

The work plan is generally divided into seven tasks and is summarized in Attachment B.

The full work plan is provided as Exhibit A to Attachment A of this report. There are two optional tasks , which staff recommends including i n the contrac t to ensure the best outcome, as follows:

1. An Infrastructure Evaluation to analyze impacts to utility systems in the Airport Area; and

2. CEQA compliance in the form of an Addendum to the General Plan Housing Element Implementation Program Environmental Impact Report (EIR).

The project costs also include a contingency of $20,000, should the City determine that additional meetings, printed materials, or other items are necessary. The contingency will not be used without prior written authorization by the City.

Project Schedule
The proposal assumes the project will be completed approximately two years from project kick-off. As such, the initial contract term would be for two years with an option to extend one additional year.

FISCAL IMPACT:

The Capital Improvemen t Program (CIP) budget for Fiscal Year 2025 -2026 (FY25-26) includes $510,239.99 in funding for this PSA as part of the General Plan Update and Airport Area Specific Plan (Project No. 20M11) . The other funds in the account are allocated to professional services and a printing purchase order to support completion of General Plan Update in early 2026 . Because the total contract amount for this PSA is $612,398, an additional $102,159 is required to support the contract. Therefore, a budget amendment is requested.

The budget amendment (Attachment C) appropriates $ 102,159.01 in increased expenditure appropriations from the General Fund unappropriated fund balance.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the enviro nment) 297
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and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Professional Services Agreement with Kimley-Horn and Associates, Inc.

Attachment B – Work Plan Summary
Attachment C – Budget Amendment
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Attachment A
Professional Services Agreement with Kimley-Horn and Associates, Inc. 299

PROFESSIONAL SERVICES AGREEMENT
WITH KIMLEY-HORN AND ASSOCIATES, INC. FOR

AIRPORT AREA SPECIFIC PLAN
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement'’)is made and entered intoas of thisJanuary 13, 2026 day of Click here to enter a date. (“Effective Date”), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city(“City”),and KIMLEY-HORN AND ASSOCIATES, INC., a North Carolina Corporation (“Consultant”),whose address is421 FayettevilleStreet,Suite 600, Raleigh, NC 27601, and ismade with reference to the following:

RECITALS
A, City isa municipal corporationduly organized and validlyexistingunder the laws of the State of Californiawiththe power to carryon itsbusiness as itisnow being conducted under the statutes of the State of California and the Charter of City.

City desires to engage Consultant to provide an AirportArea Specific Plan as detailedinthe Scope of Services attached hereto as Exhibit“A” (“Project”).

Consultant possesses the skill,experience, ability,background, certificationand knowledge to provide the professionalservices described in thisAgreement.

City has solicitedand received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retainConsultant to render professionalservices under the terms and conditions set forthinthisAgreement.

NOW, THEREFORE, itismutually agreed by and between the undersigned parties as follows:

1. TERM
The term of this Agreement shall commence on the EffectiveDate, and shall terminate on January 12, 2028, unless terminated earlieras set forth herein.

2. SERVICES TO BE PERFORMED
Consultant shall diligentlyperform allthe services described in the Scope of Services attached hereto as ExhibitA and incorporated herein by reference (“Services” or “Work”). City may electto delete certainServices within the Scope of Services at its sole discretion.

3.1 300
completion ina diligentand timelymanner. The failureby Consultant to strictlyadhere to the schedule set forthin ExhibitA, ifany, or perform the Services in a diligentand timely manner may resultinterminationof thisAgreement by City.

Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant’s reasonable control. However, in the case of any such delay inthe Services to be provided forthe Project,each party hereby agrees to provide noticewithintwo (2)calendar days of the occurrence causing the delay to the other party so that alldelays can be addressed.

Consultant shallsubmit allrequests forextensions of time for performance in writingto the Project Administrator as defined herein not laterthan ten (10) calendar days after the startof the condition that purportedly causes a delay. The Project Administratorshallreview allsuch requests and may grant reasonable time extensions for unforeseeable delays thatare beyond Consultant’scontrol.

For alltime periods not specificallyset forth herein. Consultant shall respond in the most expedient and appropriate manner under the circumstances, by hand-delivery or mail.

3.2 3.3

3.4 4. COMPENSATION TO CONSULTANT
City shallpay Consultant for the Services on a time and expense not-to- exceed basis in accordance with the provisionsof thisSection and the Schedule of Billing Rates attached hereto as ExhibitB and incorporated herein by reference. Consultant’s compensation for allWork performed in accordance with thisAgreement, includingall reimbursable items and subconsultant fees, shall not exceed Six Hundred Twelve Thousand Three Hundred Ninety Eight Dollars and 00/100 ($612,398.00),without priorwritten authorizationfrom City. No billingrate changes shall be made during the term of thisAgreement without the priorwrittenapproval of City.

Consultant shall submit monthly invoices to City describing the Work performed the preceding month. Consultant’s billsshallinclude the name of the person who performed the Work, a briefdescriptionof the Services performed and/or the specific task in the Scope of Services to which itrelates,the date the Services were performed, the number of hours spent on allWork billedon an hourly basis,and a descriptionof any reimbursable expenditures. City shall pay Consultant no laterthan thirty(30) calendar days afterapproval of the monthly invoiceby Citystaff.

4.1 4.2
Cityshallreimburse Consultant only forthose costs or expenses specifically identifiedin ExhibitB to thisAgreement or specificallyapproved in writingin advance by City.

4.3 Consultant shallnot receive any compensation for Extra Work performed without the priorwrittenauthorizationof City. As used herein, “Extra Work” means any Work that isdetermined by Cityto be necessary forthe proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

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301
Compensation for any authorizedExtra Work shallbe paid in accordance with the Schedule of BillingRates as set forthin ExhibitB.

5. PROJECT MANAGER
Consultant shalldesignate a ProjectManager, who shallcoordinate all phases of the Project.This ProjectManager shallbe availableto City at allreasonable times duringthe Agreement term. Consultanthas designated Xiaofan Li,AlCP to be its ProjectManager. Consultant shallnot remove or reassign the Project Manager or any personnel listedin ExhibitA or assign any new or replacement personnel to the Project without the priorwrittenconsent of City. City’sapproval shall not be unreasonably withheldwithrespectto the removal or assignment of non-key personnel.

Consultant,atthe sole discretionof City,shallremove from the Projectany of itspersonnel assigned to the performance of Services upon writtenrequest of City.

Consultantwarrantsthatitwillcontinuouslyfurnishthe necessary personnel to complete the Projecton a timelybasisas contemplated by thisAgreement.

5.1 5.2

5.3 6. ADMINISTRATION
This Agreement willbe administered by the Community Development Department.

City’sPrincipalPlanneror designee shallbe the ProjectAdministrator and shall have the authorityto act forCityunder thisAgreement. The ProjectAdministratorshallrepresent City inallmatters pertainingto the Services to be rendered pursuant to thisAgreement.

7. CITY'S RESPONSIBILITIES
To assistConsultant inthe execution of itsresponsibilitiesunder thisAgreement, Cityagrees to provideaccess to and upon request of Consultant,one copy of allexisting relevantinformationon fileat City. Citywillprovide allsuch materialsin a timely manner so as not to cause delays in Consultant’s Work schedule.

8. STANDARD OF CARE
Allof the Services shallbe performed by Consultant or under Consultant’s supervision. Consultant represents that itpossesses the professional and technical personnel required to perform the Services required by thisAgreement, and that itwill perform allServices in a manner commensurate with community professional standards and with the ordinary degree of skilland care that would be used by other reasonably competent practitionersof the same disciplineunder similar circumstances. All Services shallbe performed by qualifiedand experienced personnel who are not employed by City.

By delivery of completed Work, Consultant certifiesthat the Work conforms to the requirements of thisAgreement, allapplicable federal,state and locallaws, and legally recognized professionalstandards.

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Consultant represents and warrants to Citythatithas, shallobtain, and shall keep in fullforce and effectduring the term hereof, at itssole cost and expense, all licenses,permits, qualifications,insurance and approvals of whatsoever nature that is legallyrequired of Consultant to practiceitsprofession. Consultant shallmaintain a City of Newport Beach business licenseduring the term of thisAgreement.

Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in defaultby reason of strikes, lockouts, accidents, acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant’s Work promptly, or delay or faultyperformance by City,contractors,or governmental agencies.

8.2 8.3

9. HOLD HARMLESS
To the fullestextent permitted by law, Consultant shallindemnify, defend and hold harmless City, itsCity Council, boards and commissions, officers,agents, volunteers, employees and any person or entityowning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by thisAgreement (collectively,the “Indemnified Parties”)from and against any and all claims (including,without limitation,claims forbodilyinjury,death or damage to property), demands, obligations,damages, actions, causes of action, suits,losses, judgments, fines, penalties,liabilities,costs and expenses (including,without limitation,attorneys’ fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively,“Claims"),which may arisefrom or inany manner relate(directlyor indirectly)to any breach of the terms and conditions of this Agreement, any Work performed or Services provided under this Agreement including, without limitation, defects inworkmanship or materials or Consultant’s presence or activitiesconducted on the Project (thatto the extent are caused by the negligent,reckless, and/or willfulacts, errors and/or omissions of Consultant, its principals, officers,agents, employees, vendors, suppliers,consultants,subcontractors, anyone employed directlyor indirectlyby any of them or forwhose acts they may be liable,or any or allof them).

9.1 Notwithstanding the foregoing,nothing herein shallbe construed to require Consultant to indemnify the Indemnified Parties from any Claim arisingfrom the sole negligence or willfulmisconduct ofthe IndemnifiedParties.Nothing inthisindemnity shall be construed as authorizingany award of attorneys’fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policiesare applicable.The policylimitsdo not act as a limitationupon the amount of indemnificationto be provided by Consultant.

9.2 10. INDEPENDENT CONTRACTOR
Itis understood that City retains Consultant on an Independent contractor basis and Consultant is not an agent or employee of City. The manner and means of conducting the Work are under the controlof Consultant, except to the extent they are limitedby statute,ruleor regulationand the expressed terms of thisAgreement. No civil service status or other rightof employment shallaccrue to Consultant or itsemployees.

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Nothing in thisAgreement shallbe deemed to constituteapproval for Consultant or any of Consultant’s employees or agents, to be the agents or employees of City. Consultant shall have the responsibilityfor and control over the means of performing the Work, provided that Consultant is in compliance with the terms of thisAgreement. Anything in thisAgreement that may appear to give Citythe rightto direct Consultant as to the details of the performance of the Work or to exercise a measure of control over Consultant shall mean only thatConsultant shallfollowthe desires of Citywith respect to the resultsof the Services.

11. COOPERATION
Consultant agrees to work closely and cooperate fullywith City’s designated Project Administrator and any other agencies that may have jurisdictionor interestinthe Work to be performed. City agrees to cooperate with the Consultant on the Project.

12. CITY POLICY
Consultant shall discuss and review all matters relatingto policy and Project directionwith City’sProjectAdministratorinadvance of ailcriticaldecision points inorder to ensure the Project proceeds in a manner consistent with City goals and policies.

13. PROGRESS
Consultant is responsible for keeping the Project Administrator informed on a regular basis regarding the status and progress of the Project,activitiesperformed and planned, and any meetings that have been scheduled or are desired.

14. INSURANCE
Without limitingConsultant's indemnificationof City,and priorto commencement of Work, Consultant shallobtain, provide and maintain at itsown expense during the term of thisAgreement or forother periods as specifiedinthisAgreement, policiesof insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as ExhibitC, and incorporated herein by reference.

PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS15.

Except as specificallyauthorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the priorwrittenapproval of City. Any of the followingshallbe construed as an assignment: The sale,assignment, transferor other dispositionof any of the issued and outstanding capitalstock of Consultant,or of the interestof any general partner or jointventurer or syndicate member or cotenant ifConsultant isa partnership or joint-ventureor syndicate or co-tenancy, which shall resultin changing the control of Consultant. Control means fiftypercent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation,partnership or joint-venture.

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16. SUBCONTRACTING
The subcontractorsauthorizedby City,ifany, to perform Work on thisProjectare identifiedin ExhibitA. Consultant shallbe fullyresponsible to City for allacts and omissions of any subcontractor. Nothing inthisAgreement shallcreate any contractual relationshipbetween Cityand any subcontractornor shallitcreate any obligationon the partof Cityto pay or to see tothe payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiaryof any Work performed by the subcontractorforpurposes of establishinga duty of care between the subcontractor and City. Except as specificallyauthorized herein, the Services to be provided under thisAgreement shallnot be otherwise assigned, transferred,contracted or subcontracted out withoutthe priorwrittenapproval of City.

17. OWNERSHIP OF DOCUMENTS

17.1 Each and every report,draft,map, record,plan,document and otherwriting produced, including but not limitedto, websites, blogs, social media accounts and applications(hereinafter“Documents”), prepared or caused to be prepared by Consultant, itsofficers,employees, agents and subcontractors, in the course of implementing this Agreement, shallbecome the exclusivepropertyofCity,and Cityshallhave the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Additionally,allmaterialposted in cyberspace by Consultant, itsofficers, employees, agents and subcontractors,in the course of implementing thisAgreement, shallbecome the exclusivepropertyof City,and Cityshallhave the sole rightto use such materialsin itsdiscretionwithoutfurthercompensation to Consultant or any other party.

Consultant shall,at Consultant’s expense, provide such Documents, includingalllogins and password informationto Cityupon priorwrittenrequest.

17.2 Documents, includingdrawings and specifications,prepared by Consultant pursuant to thisAgreement are not intended or represented to be suitablefor reuse by Cityor others on any otherproject.Any use of completed Documents forother projects and any use of incomplete Documents without specificwritten authorization from Consultant willbe at City’ssole riskand without liabilityto Consultant. Further,any and allliabilityarisingout of changes made to Consultant’sdeliverablesunder thisAgreement by Cityor persons other than Consultant iswaived against Consultant,and Cityassumes fullresponsibilityforsuch changes unless Cityhas given Consultant priornoticeand has received from Consultant writtenconsent forsuch changes.

17.3 All written documents shall be transmitted to City informats compatible with Microsoft Office and/or viewable with Adobe Acrobat.

18. CONFIDENTIALITY
All Documents, including drafts,preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shallbe kept confidential unless Cityexpressly authorizesinwritingthe releaseof information.

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19. INTELLECTUAL PROPERTY INDEMNITY
Consultant shalldefend and indemnify City,itsagents, officers,representatives and employees against any and allliability,includingcosts, for infringement or alleged infringementof any United States’letterspatent,trademark, or copyright,includingcosts, contained in Consultant’s Documents provided under thisAgreement.

20. RECORDS
Consultant shall keep records and invoices in connection with the Services to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City,fora minimum period of three (3)years, or for any longer period required by law, from the date of finalpayment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable.

Consultant shallallow a representativeof Cityto examine, audit and make transcriptsor copies of such records and invoicesduring regularbusiness hours. Consultant shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of finalpayment to Consultant under thisAgreement.

21. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholdingshall not be deemed to constitutea failureto pay according to the terms of thisAgreement. Consultant shallnot discontinue Work as a resultof such withholding. Consultant shall have an immediate rightto appeal to the City Manager or designee with respect to such disputed sums.

Consultant shall be entitled to receive interest on any withheld sums at the rate of return thatCityearned on itsinvestments during the time period,from the date of withholdingof any amounts found to have been improperly withheld.

22. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which resultinexpense to City greater than what would have resulted ifthere were not errors or omissions in the Work accomplished by Consultant, the additional design, construction and/or restoration expense shall be borne by Consultant. Nothing inthisSection isintended to limitCity’srightsunder the law or any other sections of thisAgreement.

23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the rightto employ other Consultants in connection with the Project.

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24. CONFLICTS OF INTEREST

24.1 Consultant or its employees may be subject to the provisions of the CaliforniaPoliticalReform Act of 1974 (the “Act”)and/or Government Code §§ 1090 et sea., which (1) require such persons to disclose any financial interest that may foreseeably be materiallyaffectedby the Work performed under thisAgreement, and (2) prohibitsuch persons from making, or participatingin making, decisions that will foreseeably financiallyaffectsuch interest.

24.2 Ifsubject to the Act and/or Government Code §§ 1090 et seq.. Consultant shallconform to allrequirements therein. Failureto do so constitutes a material breach and is grounds for immediate terminationof thisAgreement by City. Consultant shall indemnify and hold harmless City for any and allclaims for damages resultingfrom Consultant’s violation of this Section.

25. NOTICES

25.1 All notices, demands, requests or approvals, including any change in mailing address, to be given under the terms of thisAgreement shallbe given inwriting, and conclusively shall be deemed served when delivered personally, or on the third business day afterthe deposit thereof in the United States mail, postage prepaid, first- class mail,addressed as hereinafterprovided.

25.2 All notices,demands, requests or approvals from Consultant to City shall be addressed to City at:

Attn: PrincipalPlanner
Community Development Department
City of Newport Beach
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658

25.3 All notices,demands, requests or approvals from City to Consultant shall be addressed to Consultant at:

Attn: Xiaofan Li.AlCP
Kimley-Horn and Associates, Inc.
1100 Town and Country Rd, Suite 700
Orange, CA 92868

26. CLAIMS
Unless a shorter time is specifiedelsewhere in thisAgreement, before making its finalrequestforpayment under thisAgreement, Consultant shallsubmit to City,inwriting, all claims for compensation under or arising out of this Agreement. Consultant’s acceptance of the finalpayment shallconstitutea waiver of allclaims for compensation under or arising out of this Agreement except those previously made in writing and

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Newport Beach City CouncilJanuary 13, 2026

Newport Beach City Council
January 13, 2026